Company: SNPS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0000883241-25-000014
Chunk: 225

Company: SYNOPSYS INC
Filing Date: 2025-02-26
Form: 10-Q
Item: Item 2
Chunk 225
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 other income (expense) for the three months ended January 31, 2025 as compared to the same period in fiscal 2024 was primarily due to the impact of gain recognized from the sale of strategic 

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investments in the first quarter of fiscal 2024 and a decrease in the change in fair value of our executive deferred compensation plan assets.

Segment Operating Results

We do not allocate certain operating expenses managed at a consolidated level to our reportable segments. These unallocated expenses consist primarily of amortization of acquired intangible assets, stock-based compensation expense, changes in the fair value of deferred compensation plan, and acquisition/divestiture related items. See Note 17. Segment Disclosure of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for more information.

Design Automation Segment

 January 31,   20252024Change% Change (dollars in millions)Three months endedAdjusted operating income$404.7 $359.5 $45.2 13 %Adjusted operating margin40 %36 %4 %11 %

The increase in adjusted operating income for the three months ended January 31, 2025 compared to the same period in fiscal 2024 was primarily due to an increase in revenue from arrangements booked in prior periods.

Design IP Segment

 January 31,   20252024Change% Change (dollars in millions)Three months endedAdjusted operating income$126.5 $245.7 $(119.2)(49)%Adjusted operating margin29 %47 %(18)%(38)%

The decrease in adjusted operating income for the three months ended January 31, 2025 compared to the same period in fiscal 2024 was primarily due to a decrease in the revenue of IP products driven by timing of customer spending.

Income Taxes

Our effective tax rate decreased in the three months ended January 31, 2025, as compared to the same period in fiscal 2024, primarily due to capital loss on the sale of our ownership in OpenLight in the first quarter of 2025.

See Note 19. Income Taxes of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further discussion. 

Liquidity and Capital Resources

Our principal sources of liquidity are funds generated from our business operations and funds that may be drawn down under our revolving credit and term loan facilities. 

As of January 31, 2025, we held $