Company: SNPS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0000883241-25-000014
Chunk: 152

Company: SYNOPSYS INC
Filing Date: 2025-02-26
Form: 10-Q
Item: Item 8
Chunk 152
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1,510,989 

24

Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.

Note 18. Interest and Other Income (Expense), Net

The following table presents the components of interest and other income (expense), net: Three Months Ended  January 31, 20252024 (in thousands)Interest income$35,721 $13,150 Interest expense(10,683)(1,324)Gains (losses) on assets related to deferred compensation plan19,638 39,445 Foreign currency exchange gains (losses)63 3,365 Gain on sale of strategic investments— 55,077 Other, net(5,461)(4,885)Total$39,278 $104,828 

Note 19. Income Taxes

Effective Tax RateWe estimate our annual effective tax rate at the end of each fiscal quarter. The effective tax rate takes into account our estimations of annual pre-tax income, the geographic mix of pre-tax income and interpretations of tax laws and possible outcomes of audits.The following table presents the provision for income taxes and the effective tax rates: Three Months Ended  January 31, 20252024 (in thousands)Income before income taxes$291,117 $457,454 Provision (benefit) for income taxes$(6,294)$22,909 Effective tax rate(2.2)%5.0 %Our effective tax rate for the three months ended January 31, 2025, is lower than the statutory federal corporate tax rate of 21% primarily due to the capital loss on the sale of our ownership in OpenLight in the first quarter of 2025, U.S. federal research tax credits, foreign-derived intangible income deduction, excess tax benefits from stock-based compensation and U.S. foreign tax credits, partially offset by state taxes and the effect of non-deductible stock-based compensation.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 the capital loss on the sale of our ownership in OpenLight in the first quarter of 2025.The timing of the resolution of income tax examinations, and the amounts and timing of various tax payments that are part of the settlement process, are highly uncertain. Variations in such amounts and/or timing could cause