SYNOPSYS, INC.

Business Segment Reporting ⁽¹⁾⁽³⁾

(in millions)

Three Months

Three Months

Ended

Ended

January 31, 2023

January 31, 2022

Revenue by segment

- Design Automation

$              889.8

$              803.9

% of Total

65.4 %

63.3 %

- Design IP

$              343.7

$              358.8

% of Total

25.2 %

28.2 %

- Software Integrity

$              127.8

$              107.6

% of Total

9.4 %

8.5 %

Total segment revenue

$           1,361.3

$           1,270.3

Adjusted operating income by segment

- Design Automation

$              346.0

$              293.3

- Design IP

$              117.6

$              154.1

- Software Integrity

$                15.5

$                12.0

Total adjusted segment operating income

$              479.2

$              459.4

Adjusted operating margin by segment

- Design Automation

38.9 %

36.5 %

- Design IP

34.2 %

43.0 %

- Software Integrity

12.1 %

11.2 %

Total adjusted segment operating margin

35.2 %

36.2 %

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

(in millions)

Three Months

Three Months

Ended

Ended

January 31, 2023

January 31, 2022

GAAP total operating income – as reported

$              255.9

$              347.0

Other expenses managed at consolidated level

-Amortization of intangible assets ⁽⁴⁾

25.4

22.4

-Stock compensation ⁽⁴⁾

134.2

95.8

-Non-qualified deferred compensation plan

20.2

(19.6)

-Acquisition-related items

2.6

2.1

-Restructuring charges

40.9

11.7

Total adjusted segment operating income

$              479.2

$              459.4

(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 segments results are consistent with the information required by ASC 280, Segment Reporting. Synopsys' chief
operating decision maker (CODM) is our Chief Executive Officer (CEO). The CODM does 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.

(3) Synopsys' first quarter of fiscal year 2023 and 2022 ended on January 28, 2023 and January 29, 2022, respectively. For
presentation purposes, we refer to the closest calendar month end.

(4) This includes non-GAAP expenses attributable to redeemable non-controlling interest.