GAAP to Non-GAAP Reconciliation of First Quarter Fiscal Year 2017 Targets

(in thousands, except per share amounts)

 Range for Three Months 

Ending January 31, 2017 (1)

Low

High

Target GAAP expenses

$             540,000

$             558,000

Adjustments:

      Estimated impact of amortization of intangible assets

(30,000)

(34,000)

      Estimated impact of stock compensation

(25,000)

(29,000)

Target non-GAAP expenses

$             485,000

$             495,000

Range for Three Months

Ending January 31, 2017 (1)

Low

High

Target GAAP earnings per share

$                   0.43

$                   0.50

Adjustments:

Estimated impact of amortization of intangible assets

0.22

0.20

Estimated impact of stock compensation

0.19

0.16

Estimated impact of tax adjustments ⁽²⁾

(0.07)

(0.06)

Target non-GAAP earnings per share

$                   0.77

$                   0.80

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

153,500

153,500

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2017 Targets

Range for Fiscal Year

Ending October 31, 2017 (1)

Low

High

Target GAAP earnings per share

$                   1.92

$                   2.06

Adjustments:

Estimated impact of amortization of intangible assets

0.77

0.74

Estimated impact of stock compensation

0.76

0.70

Estimated impact of tax adjustments ⁽²⁾

(0.29)

(0.27)

Target non-GAAP earnings per share

$                   3.16

$                   3.23

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

153,500

153,500

(1) Synopsys' first quarter and fiscal year end on January 28, 2017 and October 28, 2017, respectively. For presentation purposes, we refer to the closest calendar month end.

(2) Fiscal 2017 tax adjustments reflect the application of our normalized annual non-GAAP tax rate to non-GAAP pre-tax income.