GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2015 Targets

(in thousands, except per share amounts)

 Range for Three Months 

Ending July 31, 2015 (1)

Low

High

Target GAAP expenses

$   481,000

$   501,000

Adjustments:

      Estimated impact of amortization of intangible assets

(31,000)

(36,000)

      Estimated impact of stock compensation

(20,000)

(25,000)

Target non-GAAP expenses

$   430,000

$   440,000

Range for Three Months

Ending July 31, 2015 (1)

Low

High

Target GAAP earnings per share

$         0.23

$         0.30

Adjustments:

Estimated impact of amortization of intangible assets

0.23

0.20

Estimated impact of stock compensation

0.16

0.13

Estimated impact of tax adjustments

(0.04)

(0.03)

Target non-GAAP earnings per share

$         0.58

$         0.60

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

157,000

157,000

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2015 Targets

Range for Fiscal Year

Ending October 31, 2015 (1)

Low

High

Target GAAP earnings per share

$         1.39

$         1.49

Adjustments:

Estimated impact of amortization of intangible assets

0.85

0.80

Estimated impact of stock compensation

0.59

0.54

Acquisition-related costs

0.03

0.03

Restructuring charges

0.10

0.10

Legal and tax matters

(0.01)

(0.01)

Estimated net non-GAAP tax adjustments

(0.19)

(0.14)

Target non-GAAP earnings per share

$         2.76

$         2.81

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

157,000

157,000

(1) Synopsys' third quarter and fiscal year end on August 1, 2015 and October 31, 2015, respectively.