Company: SNPS
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000883241-25-000028
Chunk: 107

Company: SYNOPSYS INC
Filing Date: 2025-12-22
Form: 10-K
Item: Item 7A
Chunk 107
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.3 $16.6 $— $— $72.9 $72.9 Approx. average coupon rate2.76 %3.82 %3.66 %Debt (variable rate):Credit Facility in China$2.6 $2.6 $2.6 $2.6 $2.6 $13.1 $13.1 Average interest rateLPR +.74% of such rateSenior Notes$— $1,000.0 $1,000.0 $— $8,000.0 $10,000.0 $10,143.0 Average interest rate4.84 %4.85 %5.31 %5.22 %Term Loan$— $600.0 $2,850.0 $— $— $3,450.0 $3,450.0 Average interest rate5.39 %5.48 %5.46 %Deferred payment on settlement of interest rate treasury lock$22.1 $22.1 $22.1 $22.1 $22.1 $110.6 $110.6 Interest rate3.45 %

Foreign Currency Risk. We operate internationally and are exposed to potentially adverse movements in currency exchange rates. The functional currency of the majority of our active foreign subsidiaries is the foreign subsidiary’s local currency. A weakening U.S. dollar relative to other currencies increases expenses of our foreign subsidiaries when they are translated into U.S. dollars in our consolidated statements of income. Likewise, a strengthening of the U.S. dollar relative to other currencies, including the renminbi or Yen, reduces revenue of our foreign subsidiaries upon translation and consolidation. Increased international sales in the future may result in greater foreign currency denominated sales, increasing our foreign currency risk. Our operating expenses incurred outside the United States and denominated in foreign currencies are increasing and are subject to fluctuations due to changes in foreign currency exchange rates. If we are not able to successfully hedge against the risks associated with foreign currency fluctuations, our financial condition and operating results could be adversely affected. 

We enter into hedges in the form of foreign currency forward contracts to reduce our exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments