Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 202

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 8
Chunk 202
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)(44)%Foreign currency exchange gains (losses)1.1 3.4 (2.3)(68)%Gain (loss) on sale of strategic investments(3.6)55.1 (58.7)(107)%Gain on sale of building51.4 — 51.4 100 %Other, net(13.7)(8.7)(5.0)57 %Total$335.1 $166.6 $168.5 101 %

The increase in other income (expense) for the three months ended July 31, 2025 as compared to the same period in fiscal 2024 was primarily due to higher interest income as a result of higher average cash balances and an increase in the change in fair value of our executive deferred compensation plan assets.

The increase in other income (expense) for the nine months ended July 31, 2025 as compared to the same period in fiscal 2024 was primarily due to higher interest income as a result of higher average cash balances and the gain recognized from the sale of an office building, partially offset by the impact of gain recognized from the sale of strategic 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

 July 31,   20252024Change% Change (dollars in millions)Three months endedAdjusted operating income$583.8 $440.9 $142.9 32 %Adjusted operating margin44 %41 %3 %7 %Nine months endedAdjusted operating income$1,447.2 $1,218.6 $228.6 19 %Adjusted operating margin42 %39 %3 %8 %

The increase in adjusted operating income for the three and nine months ended July 31, 2025 compared to the same periods in fiscal 2024 was primarily due to an increase in revenue from our hardware business and arrangements booked in prior periods.