Purchase of long term investments

[Table of Contents](#ie2ffba3ee5384c86becdb38ff117ca9a_7)INCYTE CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited, in thousands)

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Nine Months EndedSeptember 30, |
|  | 2022 |  | 2021 |
| Cash flows from operating activities: |  |  |  |
| Net income | $ | 312,199  |  |  | $ | 384,730  |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| Depreciation and amortization | 49,637  |  |  | 42,986  |  |
| Stock-based compensation | 135,741  |  |  | 134,784  |  |
| Deferred income taxes | 40,432  |  |  | (178) |  |
| Other, net | 15,097  |  |  | 5,268  |  |
| Unrealized loss on long term investments | 72,142  |  |  | 28,394  |  |
| (Gain) loss on change in fair value of acquisition-related contingent consideration | (12,198) |  |  | 13,068  |  |
| Changes in operating assets and liabilities: |  |  |  |
| Accounts receivable | (1,888) |  |  | (34,695) |  |
| Prepaid expenses and other assets | (40,016) |  |  | (24,784) |  |
| Inventory | (48,316) |  |  | (16,215) |  |
| Accounts payable | (8,935) |  |  | 15,742  |  |
| Accrued and other liabilities | 172,384  |  |  | 85,037  |  |
| Net cash provided by operating activities | 686,279  |  |  | 634,137  |  |
| Cash flows from investing activities: |  |  |  |
| Purchase of long term investments | —  |  |  | (8,662) |  |
| Sale of long term investments | —  |  |  | 10,473  |  |
| Capital expenditures | (56,560) |  |  | (146,543) |  |
| Purchases of marketable securities | (59,058) |  |  | (228,170) |  |
| Sale and maturities of marketable securities | 57,988  |  |  | 231,250  |  |
| Net cash used in investing activities | (57,630) |  |  | (141,652) |  |
| Cash flows from financing activities: |  |  |  |
| Proceeds from issuance of common stock under stock plans | 42,989  |  |  | 48,432  |  |
| Tax withholdings related to restricted and performance share vesting | (25,724) |  |  | (29,380) |  |
| Payment of finance lease liabilities | (2,106) |  |  | (1,788) |  |
| Payment of contingent consideration | (13,473) |  |  | (20,093) |  |
| Net cash provided by (used in) financing activities | 1,686  |  |  | (2,829) |  |
| Effect of exchange rates on cash, cash equivalents, restricted cash and investments | 2,728  |  |  | (3,718) |  |
| Net increase in cash, cash equivalents, restricted cash and investments | 633,063  |  |  | 485,938  |  |
| Cash, cash equivalents, restricted cash and investments at beginning of period | 2,059,160  |  |  | 1,514,765  |  |
| Cash, cash equivalents, restricted cash and investments at end of period | $ | 2,692,223  |  |  | $ | 2,000,703  |  |
| Supplemental Schedule of Cash Flow Information |  |  |  |
| Income taxes paid | $ | 116,537  |  |  | $ | 45,872  |  |
| Unpaid purchases of property and equipment | $ | 8,836  |  |  | $ | 23,892  |  |
| Leased assets obtained in exchange for new operating lease liabilities | $ | 3,650  |  |  | $ | 9,068  |  |
| Leased assets obtained in exchange for new finance lease liabilities | $ | 1,448  |  |  | $ | 455  |  |

See accompanying notes.8
