SYNOPSYS, INC.

Business Segment Reporting ⁽¹⁾⁽³⁾

(in millions)

Three Months

Three Months

Six Months

Six Months

Ended

Ended

Ended

Ended

April 30, 2022

April 30, 2021

April 30, 2022

April 30, 2021

Revenue by segment

- Semiconductor & System Design

$             1,166.4

$              930.4

$           2,329.1

$           1,808.8

% of Total

91.2%

90.8%

91.4%

90.7%

- Software Integrity

$                112.9

$                93.9

$              220.4

$              185.8

% of Total

8.8%

9.2%

8.6%

9.3%

Total segment revenue

$             1,279.2

$           1,024.3

$           2,549.5

$           1,994.6

Adjusted operating income by segment

- Semiconductor & System Design

$                457.2

$              308.8

$              904.5

$              587.7

- Software Integrity

$                  13.0

$                  8.4

$                25.0

$                16.4

Total adjusted segment operating income

$                470.2

$              317.2

$              929.5

$              604.1

Adjusted operating margin by segment

- Semiconductor & System Design

39.2%

33.2%

38.8%

32.5%

- Software Integrity

11.5%

9.0%

11.4%

8.8%

Total adjusted segment operating margin

36.8%

31.0%

36.5%

30.3%

Total Adjusted Segment Operating Income Reconciliation ^{( 1)(2)(3)}

(in millions)

Three Months

Three Months

Six Months

Six Months

Ended

Ended

Ended

Ended

April 30, 2022

April 30, 2021

April 30, 2022

April 30, 2021

GAAP total operating income – as reported

$                363.7

$             194.2

$             710.7

$              342.6

Other expenses managed at consolidated level

-Amortization of intangible assets

21.4

19.7

43.7

40.0

-Stock compensation

110.1

79.6

205.8

163.4

-Non-qualified deferred compensation plan

(29.3)

21.4

(48.9)

52.2

-Acquisition-related costs

4.0

2.3

6.1

5.9

-Restructuring charges

0.3

-

12.1

-

Total adjusted segment operating income

$                470.2

$             317.2

$             929.5

$              604.1

(1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of our business. Amounts may not foot due to rounding.

(2) These segment results are consistent with the information required by ASC 280, Segment Reporting . They are presented to reflect the information that is considered by Synopsys' chief operating decision makers (CODMs) to evaluate the operating performance of its segments. The CODMs were Synopsys' two Co-Chief Executive Officers. One of Synopsys' Co-Chief Executive Officers transitioned out of this role effective May 1, 2022. Starting with the third quarter of fiscal 2022, Synopsys' CODM will be our Chief Executive Officer. The CODMs do not allocate certain operating expenses managed at a consolidated level to our reportable segments, and as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table above. Amounts may not foot due to rounding.

(3) Synopsys' second quarter of fiscal year 2022 and 2021 ended on April 30, 2022 and May 1, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.