10-K 0000883241-25-000028 (2025-12-22) vs 10-K 0000883241-24-000024 (2024-12-19)
| Section | Compared text | Words now | Changed |
| Risk Factors | Item 1A | 9,976 |
26.7% |
| MD&A | Item 7 | 9,887 |
38.3% |
| Legal Proceedings | Item 3, via Note 12 – Contingencies | 297 |
29.6% |
| Accounting Policies | Item 8, Note 2 – Summary of Significant Accounting Policies and Basis of Presentation | 5,413 |
23.6% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 233 words changed in this paragraph; it is 51% similar to last year's version.
The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce published (BIS) has continued to publish changes to U.S. export control regulations (U.S. (the U.S. Export Regulations), including, among other things, the inclusion of certain Chinese technology companies on the Entity List, restrictions on the export of electronic computer-aided design (ECAD) software specially designed for the development of ICs with Gate-All-Around Field-Effect Transistor structures, certain ICs, as well as controls on ECAD software for advanced semiconductor packaging involving multiple chips or chiplets, and certain other restrictions to on China’s access to certain semiconductor and advanced computing technology. We currently believe U.S.-China relations remain fluid, in particular with respect to trade policy and export restrictions relating to dual-use technologies. For example, on May 29, 2025, Synopsys received a so-called “is-informed” letter from the BIS imposing a license requirement for the export, reexport, or in-country transfer of EDA software and technology classified under export control classification numbers (ECCNs) 3D991 and 3E991 when a party to the transaction is located in China or is a Chinese “military end user,” wherever located (such restrictions, the Q3 2025 BIS Restrictions). The Q3 2025 BIS Restrictions were subsequently rescinded on July 2, 2025. China export control restrictions, including the Q3 2025 BIS Restrictions, have negatively impacted our business in China, including in our Design IP segment, and may continue to impact design starts or other aspects of our business in China in the future. The evolving nature of U.S. Export Regulations will not have a material impact Regulations, including the potential for new and expanded license requirements of this or similar nature, creates uncertainty regarding the current and future impacts on our business. We anticipate additional changes to the U.S. Export Regulations or other U.S. or non-U.S. export, sanctions, or similar trade requirements (collectively, the Trade Restrictions) in the future, but we cannot forecast the scope or timing of such changes, nor the impact on our business. We will continue to monitor such developments, including potential additional trade restrictions, Trade Restrictions, new or expanded license requirements, and other regulatory or policy changes by the U.S. and foreign governments.
Source: Item 7, 10-K 0000883241-25-000028 vs Item 7, 10-K 0000883241-24-000024
Risk Factors 145 words changed in this paragraph; it is 61% similar to last year's version.
The growth of the EDA industry as a whole and our sales in our Design Automation and Design IP segments are primarily dependent on the semiconductor and electronics industries. A substantial portion of our business and revenue depends upon the commencement of new design projects by semiconductor manufacturers, systems companies and their customers. The increasing complexity of designs of SoCs, ICs, electronic systems and customers’ concerns about managing costs have previously led to, and in the future could lead to, a decrease in design starts and design activity in general. For example, in response to this increasing complexity, some customers have chosen to focus on one discrete phase of the design process or opt for less advanced, but less risky, manufacturing processes that may not require the most advanced EDA products. If growth in the semiconductor and electronics industries or certain sectors within these industries slows or stalls, including, among other things, due to sustained global inflationary pressures and elevated interest rates, a continued or worsening global supply chain disruption, geopolitical pressures or economic slowdowns or recessions the factors creating an uncertain macroeconomic environment as discussed above, then demand for our products and services could decrease and our business, operating results and financial condition could be adversely affected. Additionally, as the EDA industry has matured, stronger competition has emerged from companies better able to compete as sole source vendors. This increased competition could cause our revenue growth rate to decline and exert downward pressure on our operating margins, which would have an adverse effect on our business and financial condition.
Source: Item 1A, 10-K 0000883241-25-000028 vs Item 1A, 10-K 0000883241-24-000024
Accounting Policies 134 words changed in this paragraph; it is 42% similar to last year's version.
The timing of revenue recognition may differ from the timing of invoicing customers, and these timing differences result resulting in receivables (billed or unbilled), receivables, contract assets, or contract liabilities (deferred revenue) in our consolidated balance sheets. We For specific software, hardware, and IP agreements with payment plans, we record a an unbilled receivable associated with revenue recognized upon transfer of control, as it holds an unconditional right to invoice and receive payment in the future for those transferred products or services. A contract asset is recorded when revenue is recognized prior to before we have the unconditional right to invoice, invoice or retain performance risk concerning that performance obligation. These contract assets transition to receivables when the rights become unconditional, generally upon the completion of a milestone. A deferred revenue is recorded when revenue is recognized subsequent to invoicing. For time-based software agreements, customers are generally invoiced in equal, quarterly amounts, although some customers prefer to be invoiced in single or annual amounts. We record an unbilled receivable when revenue is recognized and we have an unconditional right to invoice and receive payment.
Source: Item 8, Note 2 – Summary of Significant Accounting Policies and Basis of Presentation, 10-K 0000883241-25-000028 vs Item 8, Note 2 – Summary of Significant Accounting Policies and Basis of Presentation, 10-K 0000883241-24-000024
Legal Proceedings 7 words changed in this paragraph; it is 94% similar to last year's version.
We have determined that, except as set forth below, that no disclosure of estimated loss is required for a claim against us because: (1) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (2) a reasonably possible loss or range of loss cannot be estimated; or (3) such estimate is immaterial.
Source: Item 3, via Note 12 – Contingencies, 10-K 0000883241-25-000028 vs Item 3, via Note 13 – Contingencies, 10-K 0000883241-24-000024
Every change, by type
Sentences and paragraphs of SNPS's Risk Factors and MD&A, 10-K 2025-12-22 against 10-K 2024-12-19.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
decrease and our business, operating results and financial condition could be adversely affected. For example, while we have seen continued strength in the artificial intelligence and high-performance computing sectors, certain industries such as industrial, automotive and consumer electronics have recovered more slowly from recent macroeconomic uncertainty, which have affected our business and operating results.
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AddedRisk Factors
things, investigations, fines, enforcement actions, disgorgement of profits, damages, civil or criminal penalties or injunctions, and result in our inability to conduct business in one or more countries. Furthermore, any violation individually or in the aggregate could have a material adverse effect on our operations and financial condition.
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AddedRisk Factors
Our Ansys business distributes its products through a global network of independent channel partners. Difficulties in ongoing relationships with channel partners, such as failure to meet performance criteria, differences in handling customer relationships or the loss of a major channel partner, could adversely affect the performance of our Ansys business. Channel partners may also result in additional compliance burdens for us and any failure by them to comply with various U.S. and foreign laws could subject us to, among other things, investigations, fines, enforcement actions, civil or criminal penalties or injunctions.
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AddedRisk Factors
•Our ability to implement effective cost control measures and business transformation initiatives, including those related to our workforce;
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AddedRisk Factors
•Failure of acquired products to achieve projected sales or problems in integrating the acquired products with our products or in creating new joint solutions;
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AddedRisk Factors
•Failure to realize expected synergies or cost savings, including within the anticipated time frames;
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AddedRisk Factors
•Potential impacts on our supply chain, including the factors creating an uncertain macroeconomic environment as discussed above.
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AddedRisk Factors
If we do not manage these risks related to our hardware products for any reason, our business and operating results would be harmed.
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AddedRisk Factors
We have incurred a substantial amount of debt in connection with the Ansys Merger, including the Senior Notes and the $4.3 billion term loan. Accordingly, as of October 31, 2025, we had approximately $13.5 billion of total debt.
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AddedRisk Factors
We or our directors or officers are subject to litigation proceedings, which are expensive, could divert management attention and harm our business.
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AddedRisk Factors
For example, we are currently named as a defendant in recently filed securities class action complaints. The stock market in general, and Nasdaq and technological companies in particular, have experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of companies. The market price of our common stock is or may be volatile. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation.
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AddedRisk Factors
In addition, certain of our directors and officers may be involved in ongoing securities or other lawsuits, including in the context of their roles with other public companies, and our directors or officers may in the future become
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RemovedRisk Factors
Our business is subject to numerous risks and uncertainties. These risks include, but are not limited to, the following:
Read it in 10-K 2024-12-19 at sec.gov ↗
RemovedRisk Factors
•Liquidity requirements in our U.S. operations may require us to raise cash in uncertain capital markets, which could negatively affect our financial condition.
Read it in 10-K 2024-12-19 at sec.gov ↗
RemovedRisk Factors
•We may fail to complete the Ansys Merger or may not complete it on the terms described herein or in our other filings with the SEC.
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RemovedRisk Factors
•The Ansys Merger is subject to the receipt of governmental approvals that may impose conditions that could have an adverse effect on us or, if not obtained, could prevent completion of the Ansys Merger.
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RemovedRisk Factors
•Failure to realize the benefits expected from the Ansys Merger could adversely affect our business, operating results and financial condition.
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RemovedRisk Factors
•As a result of the Ansys Merger, we anticipate that the scope and size of our operations and business will substantially change and will result in certain incremental risks to us, including increased competition. We may not realize the full expected benefits of the Ansys Merger.
Read it in 10-K 2024-12-19 at sec.gov ↗
RemovedRisk Factors
•Our significant debt may limit our financial flexibility following the Ansys Merger.
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RemovedRisk Factors
•Economic slowdowns, recessions or uncertainty in financial markets, including, among other things, the impact of sustained global inflationary pressures and elevated interest rates;
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RemovedRisk Factors
•Changes in demand for our products due to customers reducing their expenditures, which may be a result of customer cost-cutting measures or insolvency or bankruptcy, sustained global inflationary pressures and elevated interest rates or other reasons;
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RemovedRisk Factors
•Product competition in the EDA, IP or semiconductor industries, which can change rapidly due to industry or customer consolidation and technological innovation;
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RemovedRisk Factors
•Changes in tax rules, as well as changes to our effective tax rate, including the tax effects of infrequent or unusual transactions and tax audit settlements;
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RemovedRisk Factors
•Delays, increased costs or quality issues resulting from our reliance on third parties to manufacture our hardware products, which includes a sole supplier for certain hardware components;
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RewordedRisk Factors
Uncertainty in the The current macroeconomic environment, including environment demonstrates the effects of, among other things, changes in U.S. and global trade policy, including the tariffs enacted in 2025 by the U.S. and other governments, sustained global inflationary pressures and elevated interest rates, potential economic slowdowns or recessions, supply chain disruptions, geopolitical pressures, pressures and fluctuations in foreign exchange rates and associated global economic conditions, have resulted in volatility in credit, equity and foreign currency markets. rates.
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RewordedRisk Factors
We also In our Design Automation segment, we compete with against a variety of different EDA vendors, including publicly traded companies that offer a variety of products and services as well as other EDA vendors, including new entrants to the marketplace, market, that offer products focused on one or more discrete phases of the IC design process.
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RewordedRisk Factors
If these macroeconomic uncertainties persist and or if economic conditions continue to deteriorate, then the global economy, including the semiconductor and electronics industries that are the core customers for our Design Automation and Design IP segments, could see their growth slow or fail to grow. grow at all.
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RewordedRisk Factors
If we fail to develop and timely offer products with AI features, if such products fail to meet our customers’ demands, if these products fail to operate as expected, or if our competitors incorporate AI into their products more quickly or more successfully than we do, we may experience brand or reputational harm and lose our competitive position, our products may become obsolete, and our business, operating results or financial condition could be adversely affected.
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RewordedRisk Factors
In response to the U.S. adopting imposing tariffs and trade barriers or taking other actions, other countries countries, such as China, have in the past and may also adopt in the future impose tariffs and trade barriers that could limit our ability to offer our products and services. services in such jurisdictions.
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RewordedRisk Factors
This uncertain macroeconomic environment could lead has resulted in volatility in credit, equity and foreign currency markets and has led some of our customers to postpone their decision-making, delay their drawdowns under non-cancellable commitments, decrease their spending and/or delay their payments to us.
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RewordedRisk Factors
We have completed a significant number of acquisitions in recent years and are currently anticipating the closing of years, including the Ansys Merger Merger, which was completed in the first half of calendar year July 2025.
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RewordedRisk Factors
The In particular, the United States has published significant changes to the Export Regulations with respect to China and Russia, Trade Restrictions and we anticipate additional changes to the Export Regulations Trade Restrictions in the future.
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RewordedRisk Factors
In addition, any allegations of manufacturability issues resulting from use of our IP products could, even if untrue, adversely affect our reputation and our customers’ willingness to license IP products from us.
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RewordedRisk Factors
Despite these measures, there is no guarantee that a compromise of our third-party vendors will not occur and in turn result in a compromise of our own IT systems or data.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedRisk Factors
Bureau of Industry and Security (the BIS) For example, we have received administrative subpoenas from BIS requesting production of information and documentation relating to transactions with certain Chinese entities.
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RewordedRisk Factors
Such covenants may, covenants, subject to certain significant exceptions, restrict our ability and the ability of certain of our subsidiaries after the Ansys Merger to, among other things, engage in mergers, consolidations and acquisitions, grant liens liens, enter into certain sale and leaseback transactions and incur debt at subsidiaries.
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Quiet changesRisk Factors
Such caution by customers could, has, among other things, limit limited our ability to maintain or increase our sales or recognize revenue from committed contracts.
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Quiet changesRisk Factors
We may be are subject to legal claims or regulatory matters involving stockholder, consumer, employment, customer, supplier, competition and other issues on a global basis.
Read it in 10-K 2025-12-22 at sec.gov ↗
AddedMD&A
For fiscal 2025, our results reflect continued, strong execution and the resiliency of our business, including 15% revenue growth compared to fiscal 2024, primarily due to revenue growth across a majority of product groups and geographies and the closing of the Ansys Merger, which contributed $756.6 million in revenue, which was offset by weakness in our business in China, which saw revenue decrease 22% compared to fiscal 2024, excluding Ansys. We saw strength in our Design Automation segment, including strong demand for our hardware products. This was offset by weakness in our Design IP segment, due to several headwinds, including China export control restrictions, such as the Q3 2025 BIS Restrictions (as defined below), which disrupted customer design starts in China, weaker than expected demand from a major foundry customer, and certain roadmap and resource decisions that did not yield their intended results. We have begun taking actions to sharpen our execution and reallocate resources to the highest growth opportunities in our Design IP segment, but expect to see muted growth in fiscal 2026.
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AddedMD&A
•Revenues were $7.1 billion, an increase of $926.8 million or 15%, which includes revenues from Ansys of $756.6 million. The remaining growth came organically across a majority of products and geographies and was partially offset by the impact of the extra week in the first quarter of fiscal 2024 of approximately $63.2 million, and by weakness in our business in China, which saw revenue decrease 22% compared to fiscal 2024, excluding Ansys, and in our Design IP segment due to several headwinds, including China export control restrictions, such as the Q3 2025 BIS Restrictions, weaker than expected demand from a major foundry customer, and certain roadmap and resource decisions that did not yield their intended results.
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AddedMD&A
Our growth strategy is focused on expanding our total addressable market by maximizing the capabilities of R&D teams across industries spanning semiconductor, high-tech, industrial, aerospace, and more with engineering solutions from silicon to systems. Our priorities are to maintain and expand our technology leadership, drive sustainable growth and efficiently scale to accelerate our strategy. Our revenue growth from period to period is expected to vary based on the mix of our time-based and upfront products. Our upfront products have grown at a faster rate than our time-based products in recent periods, which has resulted in, and may in the future result in, increased fluctuation in our business, operating results and overall financial position on a quarterly basis. Such fluctuation may be more pronounced depending on demand from our larger customers. See Part I, Item 1A, Risk Factors, "Our operating results may fluctuate in the future, which may adversely affect our stock price" of this Annual Report for further discussion on potential fluctuations in our operating results. Based on our leading technologies, customer relationships, business model, diligent expense management and acquisition strategy, we believe that we will continue to execute our strategies successfully.
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AddedMD&A
On July 17, 2025 (the Acquisition Date), we completed our acquisition of ANSYS, Inc. (Ansys) pursuant to the terms of the previously announced Agreement and Plan of Merger, dated as of January 15, 2024 (the Merger Agreement) by and among Synopsys, Ansys and ALTA Acquisition Corp. (Merger Sub), a Delaware corporation and a wholly owned subsidiary of Synopsys (the Ansys Merger). See Note 4. Business Combinations of the Notes to Consolidated Financial Statements for more information on the Ansys Merger.
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AddedMD&A
customers to postpone their decision-making, delay their drawdowns under non-cancellable commitments, decrease their spending and/or delay their payments to us.
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AddedMD&A
We are actively monitoring changes to global trade policy, such as changes to U.S. Export Regulations (as defined below) and developments related to the tariffs enacted by the U.S. government. In fiscal 2025, the U.S. government imposed a number of new and higher U.S. tariffs on imports from countries around the world. Certain countries have responded to the U.S. tariffs by imposing or threatening retaliatory tariffs. There may be additional changes to tariffs or new tariffs and other aspects of global trade policy in fiscal 2026 in the U.S. and other countries due to global trade negotiations and other factors. These changes in global trade policy have not had a material impact on our business, operating results or financial condition to date.
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AddedMD&A
Software subscription arrangements for S&A solutions include bundles of time-based software licenses with support services, which includes rights to technical support and software updates that are provided over the support term and are transferred to the customer over time. We have concluded that the updates to time-based software licenses are not considered integral to maintaining the utility of the software and hence consider the license and support services as separate performance obligations. We also license S&A software on a perpetual basis with support services, which includes a stand-ready obligation to provide technical support and software updates over the support term. We allocate the total consideration received for the bundled perpetual and support service arrangements based on the standalone selling prices of the perpetual license and support service.
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AddedMD&A
•projected expenses, which include cost of revenue, research and development and selling, general and administrative expenses (including estimated expenses required to generate the revenues attributable to different intangible assets);
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AddedMD&A
•royalty rates applied to acquired developed technology platforms and other intangible assets;
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AddedMD&A
•expected obsolescence rates and estimated useful lives of technology-related intangible assets;
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AddedMD&A
Contract rights intangible (i.e. order backlog) represents contracted but unsatisfied or partially unsatisfied performance obligations, primarily related to the dollar value of purchase arrangements with customers, effective as of a given point in time, that are based on mutually agreed terms. The fair value was determined by using the multi-period excess earnings method under the income approach. The economic useful life is based on the time to achieve 90.0% of cumulative undiscounted cash flows. The present value of operating cash flows from order backlog was determined using a discount rate of approximately 5.9%.
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AddedMD&A
•EDA solutions include digital, custom and FPGA IC design software, verification software and hardware products, Ansys semiconductor products, system integration products and services, and obligations to
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RemovedMD&A
For fiscal 2024, our results reflect continued, strong execution and the resiliency of our business, including 15% revenue growth compared to fiscal 2023, primarily due to revenue growth across all products and geographies. We have seen our customer set continue to expand as more companies in more industries define and optimize system performance at the silicon level. We also continue to see our total cost of revenue and operating expenses increase as we invest in our workforce and grow our research and development capabilities.
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RemovedMD&A
Our growth strategy is based on maintaining and building on our leadership in our Design Automation products, expanding and proliferating our Design IP offerings and continuing to expand our product portfolio and our total addressable market. Our revenue growth from period to period is expected to vary based on the mix of our time based and upfront products. Based on our leading technologies, customer relationships, business model, diligent expense management, and acquisition strategy, we believe that we will continue to execute our strategies successfully.
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RemovedMD&A
On January 15, 2024, we entered into an Agreement and Plan of Merger (the Merger Agreement) to acquire all of the outstanding shares of Ansys, a provider of broad engineering simulation and analysis software and services, in a cash-and-stock transaction (the Ansys Merger) that values Ansys at approximately $35.0 billion, based on the closing price of Synopsys common stock on December 21, 2023.
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RemovedMD&A
Under the terms of the Merger Agreement, at the effective time of the Ansys Merger (the Effective Time), each share of Ansys common stock issued and outstanding immediately prior to the Effective Time (with certain exceptions set forth in the Merger Agreement) will be converted into the right to receive 0.3450 (the Exchange Ratio) of a share of Synopsys common stock and $197.00 in cash, without interest. The Exchange Ratio is expected to result in Ansys equityholders and Synopsys equityholders owning approximately 16.5% and 83.5%, respectively, of the combined company on a pro forma basis following the Effective Time. The Merger Agreement also provides for Synopsys’ assumption of certain outstanding Ansys options and other unvested Ansys equity awards held by continuing Ansys employees. If the stock consideration to be issued by Synopsys in connection with the Ansys Merger exceeds 19.9999% of the shares of Synopsys common stock issued and outstanding immediately prior to the Effective Time, the Exchange Ratio will be reduced to the minimum extent necessary to ensure that the aggregate number of shares of Synopsys common stock to be issued in connection with the Ansys Merger does not exceed such threshold, and the cash consideration will be correspondingly increased to offset such adjustment.
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RemovedMD&A
Pursuant to the Merger Agreement, at the Effective Time, two members of the board of directors of Ansys selected by mutual agreement of Synopsys and Ansys will become members of the Board of Directors of Synopsys. If the closing occurs less than six months prior to the next annual meeting of Synopsys’ stockholders, Synopsys will nominate such directors for election at such meeting. On March 19, 2024, Synopsys and Ansys mutually agreed to designate Dr. Ajei Gopal, the current President and Chief Executive Officer of Ansys, to become a member of the Synopsys Board of Directors at the Effective Time, subject to the completion of Synopsys’ director nomination process and satisfaction of all applicable eligibility requirements established by Synopsys’ Corporate Governance and Nominating Committee. Ansys and Synopsys have not yet determined or agreed on the remaining member of the Ansys board of directors to be appointed to the Synopsys Board of Directors.
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RemovedMD&A
The Ansys Merger was approved by the holders of a majority of the outstanding shares of Ansys common stock on May 22, 2024 and is anticipated to close in the first half of calendar year 2025. The Ansys Merger is subject to the satisfaction or waiver of customary closing conditions, including, among other things, the clearance of the Ansys Merger under certain antitrust and foreign investment regimes, and the continued effectiveness of the registration statement on Form S-4 (File No. 333-277912) filed by us on March 14, 2024 and declared effective by the SEC on April 17, 2024. Following the determination that it was a necessary step towards obtaining governmental approval of and successfully closing the Ansys Merger, on September 3, 2024, we signed a definitive agreement for the sale of
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RemovedMD&A
our Optical Solutions Group to Keysight Technologies, Inc. (the Optical Solutions Divestiture). The Optical Solutions Divestiture is subject to customary closing conditions, including review by regulatory authorities, and the successful closing of the Ansys Merger.
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RemovedMD&A
We and Ansys each have termination rights under the Merger Agreement. A fee of $1.5 billion may be payable by us to Ansys, or a fee of $950.0 million may be payable by Ansys to us, upon termination of the Merger Agreement under specified circumstances, each as more fully described in the Merger Agreement. The receipt of financing by us is not a condition to complete the Ansys Merger.
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RemovedMD&A
On May 5, 2024, we entered into an Equity Purchase Agreement (the Purchase Agreement), by and between Synopsys and Sapphire Software Buyer, Inc. (Buyer), an entity controlled by funds affiliated with Clearlake Capital Group, L.P. and Francisco Partners (together, the Sponsors). On September 30, 2024, we completed the previously announced sale of our Software Integrity business to entities controlled by funds affiliated with the Sponsors (the Software Integrity Divestiture). We previously determined that the Software Integrity business met the criteria to be disclosed as discontinued operations in the second quarter of fiscal 2024. See Note 3. Discontinued Operations of the Notes to Consolidated Financial Statements in this Annual Report for additional information on discontinued operations.
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RemovedMD&A
The accounting policies that most frequently require us to make assumptions, judgments and estimates, and therefore are critical to understanding our results of operations, are:
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RemovedMD&A
•estimated obsolescence rates used in valuing technology related intangible assets;
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RemovedMD&A
Effective fiscal 2023, our research and development expenditures were required to be capitalized and amortized under the Tax Cuts and Jobs Act instead of being deducted when incurred for US tax purposes, which significantly increases our federal cash tax liability. Additionally, as a result of the IRS tax relief for the California winter storms, the due date for our fiscal 2023 federal tax payment was November 16, 2023 and as such, we deferred our fiscal 2023 federal cash tax payments until the first quarter of fiscal 2024. This resulted in a significant increase to our cash outflows beginning in fiscal 2024. See Note 18. Income Taxes of the Notes to Consolidated Financial Statements in this Annual Report for further discussion.
Read it in 10-K 2024-12-19 at sec.gov ↗
RewordedMD&A
The increase in sales and marketing expenses for fiscal 2023 2025 compared to fiscal 2022 2024 was primarily due to increases of $41.0 $183.5 million in employee-related costs due to headcount increases from the Ansys Merger, which contributed $156.3 million, and higher sales commissions, $13.2 organic growth, which contributed $27.2 million; $22.8 million in the change in the fair value of our executive deferred compensation plan assets, $10.4 IT and facility costs, $13.1 million in travel and marketing costs due to an increased number of in-person meetings and events, and $8.4 $3.3 million in facility costs. depreciation and maintenance expense, partially offset by a decrease of $10.6 million in the change in the fair value of our executive deferred compensation plan assets.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
The increase in research and development expenses for fiscal 2023 2025 compared to fiscal 2022 2024 was primarily due to higher increases of $319.7 million in employee-related costs of $135.1 million as a result of headcount increases from organic growth of $172.9 million as we continue to expand and enhance our product portfolio, increases portfolio and $146.8 million from the Ansys Merger, $57.1 million in IT and facility costs, and $39.1 million in consultant and contractor costs, partially offset by a decrease of $57.2 $6.6 million in the change in the fair value of our executive deferred compensation plan assets, $31.0 million in facility costs, and $21.2 million in consultant and contractor costs. assets.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
The increase in cost amortization of revenue acquired intangible assets for fiscal 2024 2025 compared to fiscal 2023 2024 was primarily due to increases an increase of $62.7 $257.3 million in amortization of acquired technology-related and contract rights intangible assets, which included assets mainly in connection with the Ansys Merger, partially offset by an impairment charge of $53.5 million due to a decline in estimated fair value resulting from the reductions in the expected future cash flows associated with of certain core/developed core / developed technology intangible assets as further discussed in Note 7. fiscal 2024.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
Export Regulations, see See the discussion below under the heading "Impact of Global Trade Policy and the Current Geopolitical Environment" and in Part I, Item 1A, Risk Factors, “We "We are subject to governmental export and import requirements that could subject us to liability and restrict our ability to sell our products and services, which could impair our ability to compete in international markets.” markets" of this Annual Report for further discussion of the impact of Trade Restrictions, including export control regulations and geopolitical events on Synopsys.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
The proceeds of any borrowing under On January 15, 2024, we entered into the Bridge Commitment will be used Letter with certain financial institutions that committed to provide, subject to the satisfaction of customary closing conditions, the bridge commitment (the Bridge Commitment) for the purpose of financing a portion of the cash consideration to be paid aggregate Cash Consideration in the Ansys Merger and paying related fees and expenses in connection with the Ansys Merger and the other transactions contemplated by the Merger Agreement.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
The increase in general and administrative expenses for fiscal 2024 2025 compared to fiscal 2023 2024 was primarily due to increases of $135.2 $94.8 million in legal, consulting and other professional fees mainly in connection with the Ansys Merger, $39.3 million in personnel-related costs due to headcount increases from hiring, $24.2 million in maintenance and depreciation expenses, and $5.7 million in the change in the fair value of our executive deferred compensation plan assets.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
The increase in interest and other income (expense) expense for fiscal 2023 2025 as compared to fiscal 2022 2024 was primarily due to interest on the increase Senior Notes and the borrowings under the Term Loan Agreement in fiscal 2025 in connection with the fair value of our executive deferred compensation plan assets. Ansys Merger.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
Uncertainty in the The current macroeconomic environment, including the effects of, among other things, changes in U.S. and global trade policy, including the tariffs enacted in 2025 by the U.S. and other governments, sustained global inflationary pressures and elevated interest rates, potential economic slowdowns or recessions, supply chain disruptions, geopolitical pressures, and fluctuations in foreign exchange rates, and associated global economic conditions, have resulted in increased volatility in credit, equity and foreign currency global markets.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
Our effective tax rate for fiscal 2024 2025 is 6.6%, 4.0%, which included $70.1 $64.8 million of U.S. federal research tax credit benefit, $104.8 $106.9 million of foreign derived intangible income (FDII) deduction benefit, and $43.4 $148.0 million of net excess tax benefit from stock-based compensation. for the reduction in valuation allowance, of which $111.0 million relates to the full valuation allowance release against state research credits.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
The increase in upfront products revenue for fiscal 2024 2025 compared to fiscal 2023 and for fiscal 2023 compared to fiscal 2022 2024 was primarily due to an increase in the sale of IP and hardware products driven by higher demand from customers. customers and the closing of the Ansys Merger, which contributed $198.7 million in upfront products revenue in fiscal 2025.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
The increase in maintenance revenue for fiscal 2024 2025 compared to fiscal 2023 and for fiscal 2023 compared to fiscal 2022 2024 was primarily due to an increase in the volume of arrangements that include maintenance. maintenance largely due to the closing of the Ansys Merger, which contributed $449.0 million in maintenance revenue in fiscal 2025.
Read it in 10-K 2025-12-22 at sec.gov ↗
RewordedMD&A
Year Ended October 31, 2025 2024 2023 $ Change (dollars in millions) Cash provided by operating activities $ 1,407.0 $ 1,703.3 $(296.3) 1,518.6 $1,407.0 $111.6 Cash provided by (used in) investing activities $ 1,223.0 $ (482.1) $1,705.1 (15,881.3) $1,223.0 $(17,104.3) Cash used in provided by (used in) financing activities $ (181.3) $ (1,196.9) $1,015.6 13,355.8 $(181.3) $13,537.1
Read it in 10-K 2025-12-22 at sec.gov ↗
Quiet changesMD&A
Our fiscal quarters will end on January 31, April 30, July 31 and October 31 of each year.
Read it in 10-K 2025-12-22 at sec.gov ↗
Quiet changesMD&A
In addition to the interest on any outstanding loans, Synopsys will is also be required to pay a facility fee on the entire portion of the revolving credit facility ranging from 0.080% to 0.175% based on the credit ratings of Synopsys on the daily amount of the revolving commitment.
Read it in 10-K 2025-12-22 at sec.gov ↗