Company: SNPS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0000883241-25-000014
Chunk: 85

Company: SYNOPSYS INC
Filing Date: 2025-02-26
Form: 10-Q
Item: Item 1
Chunk 85
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 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 Commitment currently provides for an aggregate principal amount of up to $10.6 billion. The proceeds of any borrowing under the Bridge Commitment will be used for the purpose of financing a portion of the cash consideration to be paid in the Ansys Merger and paying related fees and expenses in connection with the Ansys Merger and the other transactions contemplated by the Merger Agreement.

The commitments to provide the Bridge Commitment may be terminated in whole or reduced in part, at our discretion. In addition, the Bridge Commitment Letter provides that