GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2018 Targets

(in thousands, except per share amounts)

 Range for Three Months 

Ending July 31, 2018 (1)

Low

High

Target GAAP expenses

$   669,000

$   685,000

Adjustments:

      Estimated impact of amortization of intangible assets

(30,000)

(33,000)

      Estimated impact of stock compensation

(34,000)

(37,000)

Target non-GAAP expenses

$   605,000

$   615,000

Range for Three Months

Ending July 31, 2018 (1)

Low

High

Target GAAP earnings per share

$         0.65

$         0.75

Adjustments:

Estimated impact of amortization of intangible assets

0.21

0.19

Estimated impact of stock compensation

0.24

0.22

Estimated impact of tax adjustments

(0.21)

(0.23)

Target non-GAAP earnings per share

$         0.89

$         0.93

Shares used in non-GAAP calculation (midpoint of target range)

154,500

154,500

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2018 Targets

Range for Fiscal Year

Ending October 31, 2018 (1)

Low

High

Target GAAP earnings per share

$         1.66

$         1.76

Adjustments:

Estimated impact of amortization of intangible assets

0.79

0.76

Estimated impact of stock compensation

0.91

0.88

Acquisition-related costs

0.12

0.12

Restructuring charges

0.01

0.01

Income tax related to transition tax

0.47

0.47

Income tax related to tax rate change

0.29

0.29

Estimated impact of tax adjustments

(0.49)

(0.46)

Target non-GAAP earnings per share

$         3.76

$         3.83

Shares used in non-GAAP calculation (midpoint of target range)

154,500

154,500

(1) Synopsys' third quarter and fiscal year end on August 4, 2018 and November 3, 2018, respectively. For presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal 2018 included an extra week.