Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 44

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 44
---
5 million and incurred transaction costs of $61.7 million, resulting in a pre-tax gain of $868.8 million in fiscal 2024.In the second quarter of fiscal 2025, we finalized the working capital adjustments and received $20.0 million from the Sponsors. The remainder receivable balance of $7.1 million was recorded as a reduction to the previously recorded gain from the Software Integrity Divestiture. We recorded a total pre-tax gain, net of transaction costs, of $860.5 million from the Software Integrity Divestiture.We have received the entire deferred consideration installment payments of $125.0 million as of July 31, 2025. There was no material change to the fair value of the contingent consideration receivable at the quarter end.The financial results of the Software Integrity business were presented as income from discontinued operations, net of income taxes in our condensed consolidated statements of income. The following table presents the major components of financial results of our Software Integrity business for the periods presented:

11

Three Months Ended  July 31,Nine Months Ended  July 31,2025202420252024(in thousands)Revenue$— $127,917 $— $392,579 Cost of revenue— 40,279 — 136,010 Operating expenses— 91,854 — 262,745 Other income (expense), net— 605 — 1,601 Income (loss) from discontinued operations— (3,611)— (4,575)Loss on Software Integrity Divestiture— — (8,299)— Income (loss) from discontinued operations before income taxes— (3,611)(8,299)(4,575)Income tax provision (benefit)— 14,202 (4,399)8,580 Income (loss) from discontinued operations, net of income taxes$— $(17,813)$(3,900)$(13,155)The following table presents significant non-cash items and capital expenditures of discontinued operations for the period presented:Nine Months Ended  July 31,20252024(in thousands)Amortization and depreciation$— $16,317 Reduction of operating lease right-of-use assets$— $2,162 Amortization of capitalized costs to obtain revenue contracts $— $20,808 Stock-based compensation$— $47,476 Deferred income