GAAP to Non-GAAP Tax Rate Reconciliation ⁽¹⁾

(unaudited)

Twelve Months Ended

October 31, 2023

GAAP effective tax rate

6.4 %

Stock compensation

3.3 %

Tax settlement

1.8 %

Tax adjustments ⁽²⁾

4.5 %

Non-GAAP effective tax rate

16.0 %

(1) Synopsys' fiscal year 2023 ended on October 28, 2023. For presentation purposes, we refer to the closest
calendar month end.

(2) The adjustments are primarily related to the differences in the tax rate effect of certain deductions, such as the
deduction for foreign-derived intangible income and credits.

GAAP to Non-GAAP Reconciliation of First Quarter Fiscal Year 2024 Targets ⁽¹⁾

(in thousands, except per share amounts)

 Range for Three Months Ending

January 31, 2024

Low

High

Target GAAP expenses

$           1,217,000

$           1,237,000

Adjustments:

      Amortization of intangible assets

(26,000)

(29,000)

      Stock compensation

(174,000)

(181,000)

Target non-GAAP expenses

$           1,017,000

$           1,027,000

Range for Three Months Ending

January 31, 2024

Low

High

Target GAAP earnings per diluted share attributed to Synopsys

$                    2.40

$                    2.50

Adjustments:

      Amortization of intangible assets

0.19

0.17

      Stock compensation

1.16

1.12

      Tax adjustments

(0.35)

(0.34)

Target non-GAAP earnings per diluted share attributed to Synopsys     

$                    3.40

$                    3.45

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

156,000

156,000

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2024 Targets ⁽¹⁾

(in thousands, except per share amounts)

Range for Fiscal Year Ending

October 31, 2024

Low

High

Target GAAP expenses

$           4,995,000

$           5,052,000

Adjustments:

      Amortization of intangible assets

(103,000)

(108,000)

      Stock compensation

(752,000)

(764,000)

Target non-GAAP expenses

$           4,140,000

$           4,180,000

Range for Fiscal Year Ending

October 31, 2024

Low

High

Target GAAP earnings per diluted share attributed to
Synopsys

$                    9.07

$                    9.25

Adjustments:

      Amortization of intangible assets

0.69

0.66

      Stock compensation

4.90

4.82

      Tax adjustments

(1.33)

(1.32)

Target non-GAAP earnings per diluted share attributed
to Synopsys

$                  13.33

$                  13.41

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

156,000

156,000

(1) Synopsys' first quarter of fiscal year 2024 has one extra week and will end on February 3, 2024. Fiscal year 2024 will end
on November 2, 2024. For presentation purposes, we refer to the closest calendar month end.