(1) Synopsys' third quarter of fiscal year 2020 and 2019 ended on August 1, 2020 and August 3, 2019, respectively. For presentation purposes, we refer to the closest calendar month end.

SYNOPSYS, INC.

Business Segment Reporting ⁽¹⁾

(in millions)

Q3'20

Q3'19

YTD Q3'20

YTD Q3'19

Revenue by segment

- Semiconductor & System Design

$                   870.7

$                   769.4

$                2,392.5

$                2,260.3

% of Total

90.3%

90.2%

90.0%

90.1%

- Software Integrity

$                     93.4

$                     83.6

$                   267.3

$                   249.3

% of Total

9.7%

9.8%

10.0%

9.9%

Total segment revenue

$                   964.1

$                   853.0

$                2,659.8

$                2,509.6

Adjusted operating income by segment

- Semiconductor & System Design

$                   308.7

$                   207.8

$                   697.3

$                   604.5

- Software Integrity

$                     14.8

$                       8.8

$                     34.6

$                     22.9

Total adjusted segment operating income

$                   323.6

$                   216.6

$                   731.9

$                   627.4

Adjusted operating margin by segment

- Semiconductor & System Design

35.4%

27.0%

29.1%

26.7%

- Software Integrity

15.8%

10.5%

12.9%

9.2%

Total adjusted segment operating margin

33.6%

25.4%

27.5%

25.0%

Total Adjusted Segment Operating Income Reconciliation ⁽¹⁾⁽²⁾

(in millions)

Three Months

Three Months 

Nine Months 

Nine Months 

 Ended

Ended

Ended

Ended

July 31, 2020 ⁽³⁾

July 31, 2019 ⁽³⁾

July 31, 2020 ⁽³⁾

July 31, 2019 ⁽³⁾

GAAP total operating income – as reported

$                   210.6

$                   127.6

$                   424.0

$                   390.5

Other expenses managed at consolidated level

-Amortization of intangible assets

23.6

23.7

70.3

77.1

-Stock compensation

61.8

39.5

170.2

114.8

-Fair value changes in executive deferred compensation plan

26.2

4.7

20.2

25.2

-Acquisition-related costs

3.3

1.8

10.8

3.9

-Restructuring

(2.0)

19.3

36.4

33.7

-Legal matters

-

-

-

(18.0)

Total adjusted segment operating income

$                   323.6

$                   216.6

$                   731.9

$                   627.4