GAAP to Non-GAAP Tax Rate Reconciliation ⁽¹⁾⁽²⁾

(unaudited)

Three Months Ended

Six Months Ended

April 30, 2024

April 30, 2024

GAAP effective tax rate

13.3 %

8.6 %

Income tax effect of above non-GAAP adjustments

1.7 %

6.4 %

Non-GAAP effective tax rate

15.0 %

15.0 %

(1) Synopsys' second quarter of fiscal year 2024 ended on May 4, 2024. For presentation purposes, we refer to the closest
calendar month end. The first quarter of fiscal year 2024 included one extra week.

(2) Presented on a continuing operations basis.

GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2024 Targets ⁽¹⁾⁽²⁾

(in thousands, except per share amounts)

 Range for Three Months Ending

July 31, 2024

Low

High

Target GAAP expenses

$        1,099,000

$        1,119,000

Adjustments:

      Amortization of acquired intangible assets

(17,000)

(20,000)

      Stock-based compensation

(162,000)

(169,000)

Target non-GAAP expenses

$           920,000

$           930,000

Range for Three Months Ending

July 31, 2024

Low

High

Target GAAP earnings per diluted share attributed to Synopsys

$                 2.22

$                 2.35

Adjustments:

      Amortization of acquired intangible assets

0.13

0.11

      Stock-based compensation

1.08

1.04

      Acquisition/divestiture related items ⁽³⁾

0.10

0.07

      Tax adjustments

(0.28)

(0.27)

Target non-GAAP earnings per diluted share attributed to Synopsys

$                 3.25

$                 3.30

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⁾⁽²⁾

(in thousands, except per share amounts)

Range for Fiscal Year Ending

October 31, 2024

Low

High

Target GAAP expenses

$        4,559,099

$        4,614,099

Adjustments:

      Amortization of acquired intangible assets

(67,000)

(72,000)

      Stock-based compensation

(672,000)

(682,000)

      Acquisition/divestiture related items ⁽³⁾

(50,099)

(50,099)

Target non-GAAP expenses

$        3,770,000

$        3,810,000

Range for Fiscal Year Ending

October 31, 2024

Low

High

Target GAAP earnings per diluted share attributed to Synopsys

$                 9.14

$                 9.36

Adjustments:

      Amortization of acquired intangible assets

0.46

0.43

      Stock-based compensation

4.37

4.31

      Acquisition/divestiture related items ⁽³⁾

0.55

0.49

      Gain on sale of strategic investments

(0.35)

(0.35)

      Tax adjustments

(1.27)

(1.26)

Target non-GAAP earnings per diluted share attributed to Synopsys

$               12.90

$               12.98

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

156,000

156,000

(1) Synopsys' third quarter of fiscal year 2024 and its fiscal year 2024 will end on August 3, 2024 and November 2, 2024,
respectively. For presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024
included one extra week.

(2) Presented on a continuing operations basis.

(3) Adjustments reflect actual expenses incurred by Synopsys as of May 4, 2024 as well as certain contractually obligated
financing fees and related amortization expenses, and do not fully reflect all potential adjustments for future periods for the
reasons set forth in "GAAP to Non-GAAP Reconciliation" below.