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SYNOPSYS, INC. |
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Business Segment Reporting (1) |
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(in millions) |
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FY18 |
Q1'19 |
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ASC 605 |
ASC 606 |
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Revenue by segment (3) |
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- Semiconductor & System Design |
$2,840.6 |
$737.9 |
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% of Total |
91% |
90% |
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- Software Integrity |
$280.5 |
$82.5 |
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% of Total |
9% |
10% |
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Total segment revenue |
$3,121.1 |
$820.4 |
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Total |
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Adjusted operating income by segment (3) |
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- Semiconductor & System Design |
$701.3 |
$195.3 |
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- Software Integrity |
$(10.6) |
$5.6 |
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Total adjusted segment operating income |
$690.7 |
$200.9 |
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Adjusted operating margin by segment (3) |
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- Semiconductor & System Design |
24.7% |
26.5% |
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- Software Integrity |
(3.8)% |
6.8% |
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Total adjusted segment operating margin |
22.1% |
24.5% |
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Total Adjusted Segment Operating Income Reconciliation (1)(2) |
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(in millions) |
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Twelve Months Ended |
Three Months Ended |
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October 31, 2018 (3) |
January 31, 2019 (3) |
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ASC 605 |
ASC 606 |
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GAAP total operating income – as reported |
$360.2 |
$147.4 |
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Other expenses managed at consolidated level |
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-Amortization of intangible assets |
$125.7 |
$28.2 |
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-Stock compensation |
$140.0 |
$38.5 |
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-Fair value changes in executive deferred compensation plan |
$4.6 |
$4.3 |
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-Acquisition-related costs |
$21.2 |
$0.6 |
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-Restructuring |
$12.9 |
$0.0 |
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-Legal matters |
$26.0 |
($18.0) |
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Total adjusted segment operating income |
$690.7 |
$200.9 |
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(1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of our business. Quarterly variability, which increases as a result of ASC 606, should be expected. |
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(2) These segment results are consistent with the information required by ASC 280, Segment Reporting . They are presented to reflect the information that is considered by Synopsys' chief operating decision maker (CODM) to evaluate the operating performance of its segments. The CODM does not allocate certain operating expenses managed at a consolidated level to our reportable segments, and as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table above. Amounts may not foot due to rounding. |
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(3) Synopsys' first quarter of fiscal year 2019 ended on February 2, 2019, and its fiscal year 2018 ended on November 3, 2018. For presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal 2018 included an extra week. |
