Fair value of unpaid consideration in connection with acquisitions

[Table of Contents](#i3944da1428384b81954c2cd4a4fd88bf_7)  
ANSYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | Nine Months Ended |
| (in thousands) | September 30,2022 |  | September 30,2021 |
| Cash flows from operating activities: |  |  |  |
| Net income | $ | 265,763  |  |  | $ | 251,456  |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| Depreciation and intangible assets amortization | 86,239  |  |  | 80,500  |  |
| Operating lease right-of-use assets expense | 17,356  |  |  | 16,896  |  |
| Deferred income tax benefit | (63,560) |  |  | (22,459) |  |
| Provision for bad debts | 2,476  |  |  | 827  |  |
| Stock-based compensation expense | 122,119  |  |  | 122,148  |  |
| Gain on equity investment | —  |  |  | (15,139) |  |
| Other | 4,986  |  |  | 1,940  |  |
| Changes in operating assets and liabilities: |  |  |  |
| Accounts receivable | 66,369  |  |  | 86,098  |  |
| Other receivables and current assets | 96,641  |  |  | 57,992  |  |
| Other long-term assets | (3,121) |  |  | (2,548) |  |
| Accounts payable, accrued expenses and current liabilities | (111,039) |  |  | (58,520) |  |
| Accrued income taxes | 9,751  |  |  | (18,997) |  |
| Deferred revenue | (28,203) |  |  | (46,467) |  |
| Other long-term liabilities | (8,746) |  |  | (5,898) |  |
| Net cash provided by operating activities | 457,031  |  |  | 447,829  |  |
| Cash flows from investing activities: |  |  |  |
| Acquisitions, net of cash acquired | (242,613) |  |  | (105,141) |  |
| Capital expenditures | (15,227) |  |  | (18,133) |  |
| Other investing activities | (782) |  |  | (382) |  |
| Net cash used in investing activities | (258,622) |  |  | (123,656) |  |
| Cash flows from financing activities: |  |  |  |
| Principal payments on long-term debt | —  |  |  | (45,000) |  |
| Purchase of treasury stock | (155,571) |  |  | (35,993) |  |
| Restricted stock withholding taxes paid in lieu of issued shares | (62,035) |  |  | (92,143) |  |
| Proceeds from shares issued for stock-based compensation | 20,918  |  |  | 26,321  |  |
| Other financing activities | (1,290) |  |  | (50) |  |
| Net cash used in financing activities | (197,978) |  |  | (146,865) |  |
| Effect of exchange rate fluctuations on cash and cash equivalents | (35,589) |  |  | (9,142) |  |
| Net (decrease) increase in cash and cash equivalents | (35,158) |  |  | 168,166  |  |
| Cash and cash equivalents, beginning of period | 667,667  |  |  | 912,672  |  |
| Cash and cash equivalents, end of period | $ | 632,509  |  |  | $ | 1,080,838  |  |
| Supplemental disclosure of cash flow information: |  |  |  |
| Income taxes paid | $ | 42,055  |  |  | $ | 59,973  |  |
| Interest paid | $ | 12,192  |  |  | $ | 8,721  |  |
| Fair value of unpaid consideration in connection with acquisitions | $ | 3,391  |  |  | $ | —  |  |

  
The accompanying notes are an integral part of the condensed consolidated financial statements.  
  
6
