(1) Synopsys' fiscal year 2020 and 2019 ended on October 31, 2020 and November 2, 2019, respectively. For presentation purposes, we refer to the closest calendar month end.

SYNOPSYS, INC.

Business Segment Reporting ⁽¹⁾

(in millions)

Q4'20

Q4'19

FY'20

FY'19

Revenue by segment

- Semiconductor & System Design

$                    934.6

$                    765.8

$                 3,327.2

$                 3,026.1

% of Total

91.1%

90.0%

90.3%

90.0%

- Software Integrity

$                      90.8

$                      85.3

$                    358.1

$                    334.6

% of Total

8.9%

10.0%

9.7%

10.0%

Total segment revenue

$                 1,025.4

$                    851.1

$                 3,685.3

$                 3,360.7

Adjusted operating income by segment

- Semiconductor & System Design

$                    293.5

$                    202.1

$                    990.8

$                    806.6

- Software Integrity

$                        6.2

$                        9.4

$                      40.8

$                      32.2

Total adjusted segment operating income

$                    299.7

$                    211.5

$                 1,031.6

$                    838.8

Adjusted operating margin by segment

- Semiconductor & System Design

31.4%

26.4%

29.8%

26.7%

- Software Integrity

6.8%

11.0%

11.4%

9.6%

Total adjusted segment operating margin

29.2%

24.8%

28.0%

25.0%

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

(in millions)

Three Months

Three Months 

Twelve Months 

Twelve Months 

 Ended

Ended

Ended

Ended

October 31, 2020 ⁽³⁾

October 31, 2019 ⁽³⁾

October 31, 2020 ⁽³⁾

October 31, 2019 ⁽³⁾

GAAP total operating income – as reported

$                    196.1

$                    129.7

$                    620.1

$                    520.2

Other expenses managed at consolidated level

-Amortization of intangible assets

21.0

23.8

91.3

100.9

-Stock compensation

78.4

40.2

248.6

155.0

-Fair value changes in executive deferred compensation plan

1.3

2.6

21.5

27.8

-Acquisition-related costs

3.3

1.8

14.1

5.7

-Restructuring

(0.4)

13.4

36.1

47.2

-Legal matters

-

-

-

(18.0)

Total adjusted segment operating income

$                    299.7

$                    211.5

$             1,031.6

$                    838.8