Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 71

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 71
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 as of the Acquisition Date was based on the actual level of performance. The Assumed Equity Awards generally retain all of the rights, terms and conditions of the respective plans under which they were originally granted, including the same service-based vesting schedule, applicable thereto.As of the Acquisition Date, the estimated fair value of the Assumed Equity Awards was $639.7 million, of which $131.0 million was recognized as goodwill and the balance of $508.7 million will be recognized as stock-based compensation expense over the remainder term of the Assumed Equity Awards. The fair value of the Assumed Equity Awards for services rendered through the Acquisition Date was recognized as a component of the purchase consideration, with the remaining fair value related to the post-combination services 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