GAAP to Non-GAAP Reconciliation of First Quarter Fiscal Year 2023 Targets ⁽¹⁾

(in thousands, except per share amounts)

 Range for Three Months Ending

January 31, 2023

Low

High

Target GAAP expenses

$        1,033,000

$        1,053,000

Adjustments:

      Amortization of intangible assets

(25,000)

(28,000)

      Stock compensation

(133,000)

(140,000)

Target non-GAAP expenses

$           875,000

$           885,000

Range for Three Months Ending

January 31, 2023

Low

High

Target GAAP earnings per diluted share

$                 1.89

$                 2.00

Adjustments:

      Amortization of intangible assets

0.18

0.16

      Stock compensation

0.89

0.85

      Tax adjustments

(0.48)

(0.48)

Target non-GAAP earnings per diluted share

$                 2.48

$                 2.53

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

156,500

156,500

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2023 Targets ⁽¹⁾

(in thousands, except per share amounts)

Range for Fiscal Year Ending

October 31, 2023

Low

High

Target GAAP expenses

$        4,490,000

$        4,537,000

Adjustments:

      Amortization of intangible assets

(98,000)

(103,000)

      Stock compensation

(582,000)

(594,000)

Target non-GAAP expenses

$        3,810,000

$        3,840,000

Range for Fiscal Year Ending

October 31, 2023

Low

High

Target GAAP earnings per diluted share

$                 7.68

$                 7.86

Adjustments:

      Amortization of intangible assets

0.66

0.63

      Stock compensation

3.80

3.72

      Tax adjustments

(1.86)

(1.86)

Target non-GAAP earnings per diluted share

$               10.28

$               10.35

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

156,500

156,500

(1) Synopsys' first quarter of fiscal year 2023 and fiscal year 2023 will end on January 28, 2023 and October 28, 2023,
respectively. For presentation purposes, we refer to the closest calendar month end.