Company: SNPS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0000883241-25-000014
Chunk: 173

Company: SYNOPSYS INC
Filing Date: 2025-02-26
Form: 10-Q
Item: Item 8
Chunk 173
---
141.8)(187.2)45.4 

Cash Used in Operating Activities

We expect cash from our operating activities to fluctuate as a result of a number of factors, including the timing of our billings and collections, our operating results, and the timing and amount of tax and other liability payments. Cash provided by our operations is dependent primarily upon the payment terms of our license agreements. We generally receive cash from upfront arrangements much sooner than from time-based products revenue, in which the license fee is typically paid either quarterly or annually over the term of the license.

The decrease in cash used in operating activities for the three months ended January 31, 2025 compared to the same period in fiscal 2024 was primarily due to the impact of $187.0 million of fiscal 2023 federal tax payments that were paid in the first quarter of fiscal 2024 as a result of payment deadline extensions due to IRS tax relief for the California winter storms, partially offset by lower accounts receivable collections and lower net income of $148.8 million.

Cash Used in Investing Activities

39

The decrease in cash used in investing activities for the three months ended January 31, 2025 compared to the same period in fiscal 2024 was primarily driven by lower cash paid for acquisitions of $67.8 million and net cash proceeds of $23.8 million mainly from deferred consideration received in connection with the Software Integrity Divestiture in the first quarter of fiscal 2025, partially offset by higher proceeds from the sales and maturities of investments of $44.2 million and higher purchases of investments of $14.1 million.

Cash Used in Financing Activities

The decrease in cash used in financing activities for the three months ended January 31, 2025 compared to the same period in fiscal 2024 was primarily due to the payment of bridge financing costs of $48.0 million in connection with the Ansys Merger in the first quarter of fiscal 2024 and taxes paid for net share settlements which were $22.4 million lower than the first quarter of fiscal 2024, partially offset by the redemption of redeemable non-controlling interest of $30.0 million in the first quarter of fiscal 2025. 

Bridge Commitment Letter, Term Loan and Revolving Credit Facilities

On January 15, 2024, we entered into the Bridge Commitment Letter with certain financial institutions that committed to provide, subject to the satisfaction of customary closing conditions, the Bridge Commitment. The Bridge