Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 174

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 8
Chunk 174
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 to be recorded as stock-based compensation over the remaining vesting period. A total of 1.1 million shares of our common stock underlying the Assumed Equity Awards that will be recognized as stock-based compensation expense have an estimated weighted average fair value at the Acquisition Date of $453.83 per share.During the three months ended July 31, 2025, stock-based compensation expense included $67.2 million related to the Assumed Equity Awards in connection with the Ansys Merger. As of July 31, 2025, we had $432.5 million of total unrecognized stock-based compensation expense relating to RSUs underlying the outstanding Assumed Equity Awards, which is expected to be recognized over a weighted-average period of 1.74 years.The compensation cost recognized in the condensed consolidated statements of income for our stock compensation arrangements is as follows: Three Months Ended  July 31,Nine Months Ended  July 31, 2025202420252024 (in thousands)Cost of products$22,943 $14,645 $66,470 $44,824 Cost of maintenance and service10,222 9,677 28,715 28,126 Research and development expense113,861 89,279 326,274 269,087 Sales and marketing expense45,564 30,251 117,214 91,811 General and administrative expense75,133 20,502 117,236 58,702 Stock-based compensation expense from continuing operations before taxes267,723 164,354 655,909 492,550 Stock-based compensation expense from discontinued operations before taxes— 17,185 — 47,476 Total stock-based compensation expense before taxes267,723 181,539 655,909 540,026 Income tax benefit(38,686)(29,972)(94,779)(89,158)Stock-based compensation expense after taxes$229,037 $151,567 $561,130 $450,868 During the three and nine months ended July 31, 2025 and 2024, we recognized stock-based compensation expense relating to RSUs granted to senior executives with certain market, performance and service conditions (market-based RSUs). The grant date fair value of the market-based RSUs and the assumptions used in the Monte Carlo simulation model to determine the grant date fair value during the periods are as follows: Nine Months Ended