Company: SNPS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0000883241-25-000014
Chunk: 44

Company: SYNOPSYS INC
Filing Date: 2025-02-26
Form: 10-Q
Item: Item 1
Chunk 44
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 invoice and receive payment become unconditional. Unbilled receivables are presented as accounts receivable, net, in the condensed consolidated balance sheets.Contract balances are as follows:As ofJanuary 31, 2025October 31, 2024 (in thousands)Contract assets, net$830,450 $757,075 Unbilled receivables$102,575 $44,166 Deferred revenue$1,636,783 $1,732,568 During the three months ended January 31, 2025, we recognized revenue of $739.4 million that was included in the deferred revenue balance as of October 31, 2024, including previously unfulfilled contracts that have expired and are no longer subject to an implied promise to provide future services.Contracted but unsatisfied or partially unsatisfied performance obligations (backlog) were approximately $7.7 billion as of January 31, 2025, which includes $1.1 billion in non-cancellable Flexible Spending Account (FSA) commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date. We have elected to exclude future sales-based royalty payments from the remaining performance obligations. Approximately 42% of the backlog as of January 31, 2025, excluding non-

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cancellable FSA, is expected to be recognized as revenue over the next 12 months, with the remainder to be recognized thereafter. The majority of the remaining backlog is expected to be recognized in the following three years.During the three months ended January 31, 2025 and 2024, we recognized $25.0 million and $25.4 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods. Costs of Obtaining a Contract with CustomerCapitalized commission costs, net of accumulated amortization, as of January 31, 2025 were $65.3 million and are included in other long-term assets in our condensed consolidated balance sheets. Amortization of these assets was $12.5 million and $11.2 million during the three months ended January 31, 2025 and 2024, respectively, and are included in sales and marketing expense in our condensed consolidated statements of income.

Note 6. Goodwill and Intangible Assets

GoodwillThe changes in the carrying amount of goodwill during the three months ended January 31, 2025 are as follows: (in thousands)Balance at