Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 179

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 8
Chunk 179
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 of strategic investments(1,200)— (3,635)55,077 Gain on sale of building— — 51,385 — Other, net(4,312)1,700 (13,771)(8,682)Total$170,543 $43,526 $335,061 $166,617 Assets Held for SaleDuring the second quarter of fiscal 2025, we completed the sale of an office building for cash consideration of $74.3 million, net of selling costs. We recognized a pre-tax gain on sale of $51.4 million, which was included in other income (expense), net in the condensed consolidated statements of income.

Note 19. Income Taxes

Effective Tax RateWe estimate our annual effective tax rate at the end of each fiscal quarter. The effective tax rate reflects our estimations of annual pre-tax income, the geographic mix of pre-tax income, interpretations of applicable tax laws and the potential outcomes of audits.The following table presents the provision for income taxes and the effective tax rates: Three Months Ended  July 31,Nine Months Ended  July 31, 2025202420252024 (in thousands)Income before income taxes$189,310 $391,995 $876,618 $1,190,979 Provision (benefit) for income taxes$(52,967)$(30,712)$(12,080)$37,634 Effective tax rate(28.0)%(7.8)%(1.4)%3.2 %Our effective tax rate decreased in the three months ended July 31, 2025, as compared to the same period in fiscal 2024, primarily due to the tax benefits from a full valuation allowance release against California research credits.Our effective tax rate for the nine months ended July 31, 2025, is lower than the statutory federal corporate tax rate of 21% primarily due to the capital loss on the sale of our ownership in OpenLight in the first quarter of 2025, tax benefits from the release of a full valuation allowance against California research credits, U.S. federal research tax credits, foreign-derived intangible income deduction, excess tax benefits from stock-based compensation and U.S. foreign tax credits, partially offset by state taxes, capitalized transaction costs and the effect of non-deductible stock-based compensation.The timing of the resolution of income tax examinations, and the amounts and timing of various tax