GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2014 Targets

(in thousands, except per share amounts)

 Range for Three Months 

Ending July 31, 2014 (1)

Low

High

Target GAAP expenses

$   450,500

$   471,000

Adjustments:

       Estimated impact of amortization of intangible assets

(32,000)

(39,000)

       Estimated impact of stock compensation

(18,500)

(22,000)

Target non-GAAP expenses

$   400,000

$   410,000

Range for Three Months

Ending July 31, 2014 (1)

Low

High

Target GAAP earnings per share

$         0.30

$         0.38

Adjustments:

Estimated impact of amortization of intangible assets

0.25

0.20

Estimated impact of stock compensation

0.14

0.12

Net non-GAAP tax adjustments 

(0.09)

(0.08)

Target non-GAAP earnings per share

$         0.60

$         0.62

Shares used in non-GAAP calculation (midpoint of target range)

157,000

157,000

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2014 Targets

Range for Fiscal Year

Ending October 31, 2014 (1)

Low

High

Target GAAP earnings per share

$         1.55

$         1.68

Adjustments:

Estimated impact of amortization of intangible assets

0.83

0.78

Estimated impact of stock compensation

0.54

0.50

Acquisition-related costs

0.04

0.04

    Tax and other settlements

(0.08)

(0.08)

Net non-GAAP tax adjustments

(0.43)

(0.42)

Target non-GAAP earnings per share

$         2.45

$         2.50

Shares used in non-GAAP calculation (midpoint of target range)

157,000

157,000

(1) Synopsys' third quarter and fiscal year end on August 2, and November 1, 2014, respectively.  For presentation purposes, the periods refer to the closest calendar month end.