Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 76

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 76
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, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.

Note 18. Other Income (Expense), Net

The following table presents the components of other income (expense), net: Three Months Ended  July 31,Nine Months Ended  July 31, 2025202420252024 (in thousands)Interest income$131,417 $15,717 $257,027 $40,508 Gains (losses) on assets related to deferred compensation plan43,417 25,780 42,949 76,276 Foreign currency exchange gains (losses)1,221 329 1,106 3,438 Gain (loss) on sale 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