SYNOPSYS, INC.

Unaudited Reconciliation of Consolidated Statements of Operations
Under ASC 606 & ASC 605 ⁽¹⁾

(in thousands, except per share amounts)

Twelve Months Ended 

October 31, 2019

As reported under
ASC 606

Adjustments

Balances under
ASC 605

Revenue:

  Time-based products

$            2,197,965

$     206,904

$       2,404,869

  Upfront products

619,791

(235,398)

384,393

  Maintenance and service

542,938

(74,037)

468,901

      Total revenue

3,360,694

(102,531)

3,258,163

Cost of revenue:

  Products

459,127

459,127

  Maintenance and service

234,196

234,196

  Amortization of intangible assets

59,623

59,623

     Total cost of revenue

752,946

-

752,946

Gross margin

2,607,748

(102,531)

2,505,217

Operating expenses:

  Research and development

1,136,932

1,136,932

  Sales and marketing

632,890

4,121

637,011

  General and administrative

229,218

229,218

  Amortization of intangible assets 

41,291

41,291

  Restructuring charges

47,186

47,186

     Total operating expenses

2,087,517

4,121

2,091,638

Operating income

520,231

(106,652)

413,579

Other income (expense), net

25,275

-

25,275

Income before income taxes

545,506

(106,652)

438,854

Provision (benefit) for income taxes

13,139

(18,499)

(5,360)

Net income (loss)

$               532,367

$      (88,153)

$          444,214

Net income (loss) per share:

  Basic

$                     3.55

$          (0.59)

$                2.96

  Diluted

$                     3.45

$          (0.57)

$                2.88

Shares used in computing per share amounts:

  Basic

149,872

149,872

  Diluted

154,190

154,190

(1)  Synopsys' fiscal year 2019 ended on November 2, 2019. For presentation purposes, we refer to the closest calendar month end.