Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 57

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 57
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 There were no debt covenants applicable to the deferred payment agreement.Non-designated Hedging ActivitiesOur foreign exchange forward contracts that are used to hedge non-functional currency denominated balance sheet assets and liabilities are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the underlying assets and liabilities, which are also recorded in other income (expense), net. The duration of the forward contracts for hedging our balance sheet exposure is approximately one month.We also have certain foreign exchange forward contracts for hedging certain international revenues and expenses that are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of these forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the foreign currency in operating income. The duration of these forward contracts is usually less than one year. The overall goal of our hedging program is to minimize the impact of currency fluctuations on the net income over the fiscal year.The effects of the non-designated foreign currency derivative instruments in the condensed consolidated statements of income are summarized as follows: Three Months Ended  July 31,Nine Months Ended  July 31, 2025202420252024 (in thousands)Gains (losses) recorded in other income (expense), net$(5,298)$955 $1,467 $(110)The notional amounts in the table below for foreign currency derivative instruments provide one measure of the transaction volume outstanding:As ofJuly 31, 2025October 31, 2024 (in thousands)Total gross notional amounts$1,223,925 $1,686,341 Net fair value$4,371 $1,819 

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Our exposure to the market gains or losses will vary over time as a function of currency exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments.The following table represents the condensed consolidated balance sheets location and amount of foreign currency derivative instrument fair values segregated between designated and non-designated hedge instruments:Fair values ofderivative instrumentsdesignated as hedginginstrumentsFair values ofderivative instrumentsnot designated ashedging