EX-99.1

EX-99.1 2 d123849dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

PRESS RELEASE

INVESTOR CONTACT:

Lisa L. Ewbank

Synopsys, Inc.

650-584-1901

Synopsys-ir@synopsys.com

EDITORIAL CONTACT:

Simone Souza

Synopsys, Inc.

650-584-6454

simone@synopsys.com

Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2021

Q4 FY 2021 Financial Highlights

•

Revenue: $1.152 billion

•

GAAP earnings per share: $1.28

•

Non-GAAP earnings per share: $1.82

FY 2021 Financial Highlights

•

Revenue: $4.204 billion

•

GAAP earnings per share: $4.81

•

Non-GAAP earnings per share: $6.84

•

Cash flow from operations: $1.493 billion

•

Cash, cash equivalents and short-term investments: $1.581 billion

MOUNTAIN VIEW, Calif. – Dec. 1, 2021 – Synopsys, Inc. (Nasdaq: SNPS) today reported results for its fourth quarter and fiscal year 2021. Revenue for the fourth quarter of fiscal year 2021 was $1.152 billion, compared to $1.025 billion for the fourth quarter of fiscal year 2020. Revenue for fiscal year 2021 was $4.204 billion, an increase of 14.1 percent from $3.685 billion in fiscal year 2020.

“Synopsys delivered another record fiscal year in 2021, substantially exceeding our original targets, with strength in all product groups and geographies. We are entering fiscal year 2022 with significant financial, technology and customer momentum,” said Aart de Geus, chairman and co-CEO of Synopsys. “Over the past several years, we have delivered disruptive innovations that are enabling the new era of ‘smart everything,’ an era that brings with it many new market entrants and increased investments. As a result, we are seeing a growing number of substantially expanded customer commitments and collaborations. In addition to fiscal year 2022 expectations of strong double-digit revenue growth, continued operating margin expansion, EPS growth in the mid-teens range, and nearly $1.5 billion in operating cash flow, we are also raising our long-term financial objectives, with increased EDA and IP revenue growth expectations.”

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2021 was $201.4 million, or $1.28 per share, compared to $197.5 million, or $1.26 per share, for the fourth quarter of fiscal year 2020. GAAP net income for fiscal year 2021 was $757.5 million, or $4.81 per share, compared to $664.3 million, or $4.27 per share, for fiscal year 2020.

Non-GAAP Results

On a non-GAAP basis, net income for the fourth quarter of fiscal year 2021 was $285.8 million, or $1.82 per share, compared to non-GAAP net income of $247.7 million, or $1.58 per share, for the fourth quarter of fiscal year 2020. Non-GAAP net income for fiscal year 2021 was $1.077 billion, or $6.84 per share, compared to non-GAAP net income of $864.6 million, or $5.55 per share, for fiscal year 2020.

For a reconciliation between GAAP and non-GAAP results, see “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

Business Segments

Synopsys reports revenue and operating income in two segments: (1) Semiconductor & System Design, which includes EDA and IP products, system integration solutions and associated services, and (2) Software Integrity, which includes security and quality solutions for software development. Further information regarding these segments is provided at the end of this press release.

Financial Targets

Synopsys also provided its consolidated financial targets for the first quarter and full fiscal year 2022. These financial targets assume that there are no further changes to the current U.S. government “Entity List” restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see “Forward-Looking Statements” below.

First Quarter and Fiscal Year 2022 Financial Targets

(in millions except per share amounts)


	Range for Three Months						Range for Fiscal Year
	January 31, 2022						October 31, 2022
	Low			High			Low			High
Revenue	$	1,250		$	1,280		$	4,725		$	4,775
GAAP Expenses	$	934		$	964		$	3,778		$	3,835
Non-GAAP Expenses	$	802		$	812		$	3,225		$	3,255
Other Income (Expense)	$	(5	)	$	(3	)	$	(11	)	$	(7	)
Annual non-GAAP Tax Rate		18	%		18	%		18	%		18	%
Outstanding Shares (fully diluted)		156			159			157			160
GAAP EPS	$	1.75		$	1.92		$	5.39		$	5.65
Non-GAAP EPS	$	2.35		$	2.40		$	7.73		$	7.80
Operating Cash Flow							$	1,400		$	1,500

Earnings Call Open to Investors

Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys’ corporate website at www.synopsys.com. A recording of the call will be available by calling +1-866-207-1041 (+1-402-970-0847 for international callers), access code 6504511, beginning at 5:45 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on December 8, 2021. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter of fiscal year 2022 in February 2022. Synopsys will post copies of the prepared remarks of Aart de Geus, chairman and co-chief executive officer, and Trac Pham, chief financial officer, on its website following today’s call. In addition, Synopsys makes additional information available in a financial supplement and corporate overview presentation, also posted on the corporate website.

Effectiveness of Information

The targets included in this press release, the statements made during the earnings conference call and the information contained in the financial supplement and corporate overview presentation (available in the Investor Relations section of Synopsys’ corporate website at www.synopsys.com) represent Synopsys’ expectations and beliefs as of the date of this release only. Although this press release, copies of the prepared remarks of the co-chief executive

officer and chief financial officer made during the call, the financial supplement, and the corporate overview presentation will remain available on Synopsys’ website through the date of the first quarter of fiscal year 2022 earnings call in February 2022, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys does not currently intend to report on its progress during the first quarter of fiscal year 2022 or comment to analysts or investors on, or otherwise update, the targets given in this release.

Availability of Final Financial Statements

Synopsys will include final financial statements for fiscal year 2021 in its annual report on Form 10-K to be filed by December 29, 2021.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software^™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry’s broadest portfolio of application security testing tools and services. Whether you’re a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products. Learn more at www.synopsys.com.

GAAP to Non-GAAP Reconciliation

Synopsys continues to provide all information required in accordance with GAAP but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys’ operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal planning and forecasting purposes. Synopsys’ management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Synopsys’ management believes it is useful for itself and investors to review, as applicable, both GAAP information that

includes: (i) the amortization of acquired intangible assets, (ii) the impact of stock compensation, (iii) acquisition-related costs, (iv) restructuring charges, (v) the effects of certain settlements, final judgments and loss contingencies related to legal proceedings, and (vi) the income tax effect of non-GAAP pre-tax adjustments; and the non-GAAP measures that exclude such information in order to assess the performance of Synopsys’ business and for planning and forecasting in subsequent periods.

Synopsys adopted a three-year normalized non-GAAP tax rate of 16% for fiscal year 2019 through 2021 in the calculation of its non-GAAP financial measures to provide better consistency across interim reporting periods by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency and not necessarily reflect our normal operations, and to align our tax rate more clearly with our expected geographic earnings mix. Synopsys re-evaluated this rate on an annual basis for any significant events that could have materially affected its projections, such as significant changes in its geographic earnings mix or significant tax law changes in major jurisdictions where it operates.

Given the uncertainty surrounding corporate tax reform, Synopsys has elected to provide a projected annual non-GAAP tax rate for fiscal year 2022 rather than a three-year normalized non-GAAP tax rate in calculating its non-GAAP financial measures. Based on an evaluation of Synopsys’ historical and projected mix of U.S. and international profit before tax, taking into account the impact of non-GAAP adjustments described above, as well as other factors such as its current tax structure, existing tax positions, and expected recurring tax incentives, its projected annual non-GAAP tax rate is 18% for fiscal 2022. Synopsys intends to re-evaluate the projected fiscal 2022 annual non-GAAP tax rate on an interim basis to determine the appropriateness of adopting a multi-year normalized non-GAAP tax rate.

Whenever Synopsys uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed below, as well as Item 2.02 of the Current Report on Form 8-K filed on December 1, 2021 for additional information about the measures Synopsys uses to evaluate its core business operations.

Reconciliation of Fourth Quarter and Fiscal Year 2021 Results

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per share for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2021 Results ⁽¹⁾

(unaudited and in thousands, except per share amounts)


	Three Months Ended						Twelve Months Ended
	October 31,						October 31,
	2021			2020			2021			2020
GAAP net income	$	201,447		$	197,455		$	757,516		$	664,347
Adjustments:
Amortization of intangible assets		21,943			21,004			82,380			91,281
Stock compensation		96,742			78,429			345,272			248,584
Acquisition-related costs		3,800			3,259			15,394			14,096
Restructuring charges		18,254			(387	)		33,405			36,059
Legal matters		—			—			(1,455	)		—
Tax adjustments		(56,430	)		(52,084	)		(155,727	)		(189,798	)

Non-GAAP net income	$	285,756		$	247,676		$	1,076,785		$	864,569


	Three Months Ended						Twelve Months Ended
	October 31,						October 31,
	2021			2020			2021			2020
GAAP diluted net income per share	$	1.28		$	1.26		$	4.81		$	4.27
Adjustments:
Amortization of intangible assets		0.14			0.13			0.52			0.59
Stock compensation		0.62			0.50			2.19			1.60
Acquisition-related costs		0.02			0.02			0.10			0.08
Restructuring charges		0.12			—			0.21			0.23
Legal matters		—			—			(0.01	)		—
Tax adjustments		(0.36	)		(0.33	)		(0.98	)		(1.22	)

Non-GAAP diluted net income per share	$	1.82		$	1.58		$	6.84		$	5.55

Shares used in computing diluted net income per share amounts		157,243			156,825			157,340			155,706

(1)	Synopsys’ fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes, we refer to the closest calendar month end.

Reconciliation of 2022 Targets

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.

GAAP to Non-GAAP Reconciliation of First Quarter Fiscal Year 2022 Targets ⁽¹⁾

(in thousands, except per share amounts)


	Range for Three Months
	January 31, 2022
	Low			High
Target GAAP expenses	$	934,000		$	964,000
Adjustments:
Amortization of intangible assets		(22,000	)		(25,000	)
Stock compensation		(102,000	)		(107,000	)
Restructuring charges		(8,000	)		(20,000	)

Target non-GAAP expenses	$	802,000		$	812,000


	Range for Three Months
	January 31, 2022
	Low			High
Target GAAP earnings per share	$	1.75		$	1.92
Adjustments:
Amortization of intangible assets		0.16			0.14
Stock compensation		0.68			0.65
Restructuring charges		0.13			0.05
Tax adjustments		(0.37	)		(0.36	)

Target non-GAAP earnings per share	$	2.35		$	2.40

Shares used in non-GAAP calculation (midpoint of target range)		157,500			157,500

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2022 Targets ⁽¹⁾

(in thousands, except per share amounts)


	Range for Fiscal Year
	October 31, 2022
	Low			High
Target GAAP expenses	$	3,778,000		$	3,835,000
Adjustments:
Amortization of intangible assets		(80,000	)		(85,000	)
Stock compensation		(465,000	)		(475,000	)
Restructuring charges		(8,000	)		(20,000	)

Target non-GAAP expenses	$	3,225,000		$	3,255,000


	Range for Fiscal Year
	October 31, 2022
	Low			High
Target GAAP earnings per share	$	5.39		$	5.65
Adjustments:
Amortization of intangible assets		0.54			0.50
Stock compensation		3.00			2.93
Restructuring charges		0.13			0.05
Tax adjustments		(1.33	)		(1.33	)

Target non-GAAP earnings per share	$	7.73		$	7.80

Shares used in non-GAAP calculation (midpoint of target range)		158,500			158,500

(1)	Synopsys’ first fiscal quarter and fiscal year will end on January 29, 2022 and October 29, 2022, respectively. For presentation purposes, we refer to the closest calendar month end.

Forward-Looking Statements

This press release contains forward-looking statements including, but not limited to, statements regarding Synopsys’ short-term and long-term financial targets, expectations and objectives; business outlook, opportunities and strategies; customer demand and market expansion; strategies related to our products and technology; our planned product releases and capabilities; industry growth rates; software trends; planned acquisitions and buybacks; our expected tax rate; the expected impact of U.S. and foreign government action on our financial results; and the continued impact and duration of the COVID-19 pandemic. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in our forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks from the continued impact of the COVID-19 pandemic on the global economy and on our business, operations and financial condition; uncertainty in the growth of the semiconductor and electronics industries; macroeconomic conditions and uncertainty in the global economy; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations as well as actions by the

U.S. or foreign governments, such as measures in response to the COVID-19 pandemic or the imposition of additional tariffs or export restrictions; fluctuation of our operating results; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys’ results is included in filings it makes with the Securities and Exchange Commission from time to time, including in the sections entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended October 31, 2020 and in its latest Quarterly Report on Form 10-Q. The information provided herein is as of December 1, 2021. Synopsys undertakes no duty, and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.

###

SYNOPSYS, INC.

Unaudited Consolidated Statements of Operations ⁽¹⁾

(in thousands, except per share amounts)


	Three Months Ended						Twelve Months Ended
	October 31,						October 31,
	2021			2020			2021			2020
Revenue:
Time-based products	$	688,116		$	606,598		$	2,633,763		$	2,365,199
Upfront products		274,265			244,155			861,063			735,572
Maintenance and service		190,038			174,686			709,367			584,510

Total revenue		1,152,419			1,025,439			4,204,193			3,685,281
Cost of revenue:
Products		152,437			142,838			542,114			487,307
Maintenance and service		68,992			69,991			271,202			254,931
Amortization of intangible assets		13,297			11,720			48,461			52,452

Total cost of revenue		234,726			224,549			861,777			794,690

Gross margin		917,693			800,890			3,342,416			2,890,591
Operating expenses:
Research and development		413,864			339,566			1,504,823			1,279,022
Sales and marketing		197,681			176,499			712,491			632,010
General and administrative		88,960			79,796			322,988			284,530
Amortization of intangible assets		8,646			9,284			33,919			38,829
Restructuring charges		18,254			(387	)		33,405			36,059

Total operating expenses		727,405			604,758			2,607,626			2,270,450

Operating income		190,288			196,132			734,790			620,141
Other income (expense), net		8,790			(4,095	)		70,724			18,018

Income before income taxes		199,078			192,037			805,514			638,159
Provision (benefit) for income taxes		(2,059	)		(4,989	)		49,155			(25,288	)

Net income		201,137			197,026			756,359			663,447
Net income (loss) attributed to non-controlling interest		(310	)		(429	)		(1,157	)		(900	)

Net income attributed to Synopsys	$	201,447		$	197,455		$	757,516		$	664,347

Net income per share:
Basic	$	1.32		$	1.30		$	4.96		$	4.40
Diluted	$	1.28		$	1.26		$	4.81		$	4.27
Shares used in computing per share amounts:
Basic		152,932			152,349			152,698			151,135

Diluted		157,243			156,825			157,340			155,706

(1)	Synopsys’ fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes, we refer to the closest calendar month end.

SYNOPSYS, INC.

Unaudited Consolidated Balance Sheets ⁽¹⁾

(in thousands, except par value amounts)


	October 31, 2021			October 31, 2020
ASSETS:
Current assets:
Cash and cash equivalents	$	1,432,840		$	1,235,653
Short-term investments		147,949			—

Total cash, cash equivalents & short-term investments	$	1,580,789		$	1,235,653
Accounts receivable, net		568,501			780,709
Inventories, net		229,023			192,333
Income taxes receivable and prepaid taxes		32,411			32,355
Prepaid and other current assets		397,617			308,167

Total current assets		2,808,341			2,549,217
Property and equipment, net		472,398			483,818
Operating lease right-of-use assets, net		493,251			465,818
Goodwill		3,575,785			3,365,114
Intangible assets, net		279,132			254,322
Deferred income taxes		612,655			497,546
Other long-term assets		510,698			414,227

Total assets	$	8,752,260		$	8,030,062

LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable and accrued liabilities	$	694,748		$	623,664
Operating lease liabilities, current		79,678			73,173
Accrued income taxes		46,443			27,738
Deferred revenue		1,517,623			1,388,263
Short-term debt		74,992			27,084

Total current liabilities		2,413,484			2,139,922
Operating lease liabilities, non-current		487,003			462,411
Long-term accrued income taxes		27,893			25,178
Long-term deferred revenue		136,303			104,850
Long-term debt		25,094			100,823
Other long-term liabilities		363,540			284,511

Total liabilities		3,453,317			3,117,695
Stockholders’ equity:
Preferred stock, $ 0.01 par value: 2,000 shares authorized; none outstanding		—			—
Common stock, $ 0.01 par value: 400,000 shares authorized; 153,062 and 152,618 shares outstanding, respectively		1,531			1,528
Capital in excess of par value		1,576,363			1,653,166
Retained earnings		4,549,713			3,795,397
Treasury stock, at cost: 4,198 and 4,643 shares, respectively		(782,866	)		(488,613	)
Accumulated other comprehensive income (loss)		(49,604	)		(54,074	)

Total Synopsys stockholders’ equity		5,295,137			4,907,404
Non-controlling interest		3,806			4,963

Total stockholders’ equity		5,298,943			4,912,367

Total liabilities and stockholders’ equity	$	8,752,260		$	8,030,062

(1)	Synopsys’ fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes, we refer to the closest calendar month end.

SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)


	Twelve Months Ended October 31,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income attributed to Synopsys	$	757,516		$	664,347
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation		203,676			209,986
Reduction of operating lease right-of-use assets		86,645			82,895
Amortization of capitalized costs to obtain revenue contracts		64,698			61,185
Stock-based compensation		345,272			248,584
Allowance for doubtful accounts		18,515			20,875
Deferred income taxes		(128,583	)		(111,526	)
Other non-cash		14,702			3,425
Net changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable		201,706			(236,806	)
Inventories		(48,046	)		(55,024	)
Prepaid and other current assets		(102,174	)		(11,298	)
Other long-term assets		(153,037	)		(83,367	)
Accounts payable and accrued liabilities		125,133			113,773
Operating lease liabilities		(82,581	)		(78,578	)
Income taxes		28,855			14,120
Deferred revenue		160,325			148,722

Net cash provided by operating activities		1,492,622			991,313
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales and maturities of short-term investments		12,850			—
Purchases of short-term investments		(161,732	)		—
Proceeds from sales of long-term investments		—			2,151
Purchases of long-term investments		(7,591	)		(2,762	)
Purchases of property and equipment		(93,764	)		(154,717	)
Cash paid for acquisitions, net of cash acquired		(296,017	)		(201,045	)
Capitalization of software development costs		(1,976	)		(4,045	)
Other		(800	)		—

Net cash used in investing activities		(549,030	)		(360,418	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facilities		—			276,489
Repayment of debt		(28,061	)		(288,879	)
Issuances of common stock		210,719			197,403
Payments for taxes related to net share settlement of equity awards		(138,950	)		(82,225	)
Purchase of equity forward contract		(35,000	)		—
Purchases of treasury stock		(753,081	)		(242,078	)
Other		(4,375	)		(1,316	)

Net cash used in financing activities		(748,748	)		(140,606	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		2,369			17,154

Net change in cash, cash equivalents and restricted cash		197,213			507,443
Cash, cash equivalents and restricted cash, beginning of year		1,237,970			730,527

Cash, cash equivalents and restricted cash, end of period	$	1,435,183		$	1,237,970

(1)	Synopsys’ fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes, we refer to the closest calendar month end.

SYNOPSYS, INC.

Business Segment Reporting⁽¹⁾

(in millions)


	Three Months			Three Months			Twelve Months			Twelve Months
	Ended			Ended			Ended			Ended
	October 31, 2021 ⁽³⁾			October 31, 2020 ⁽³⁾			October 31, 2021 ⁽³⁾			October 31, 2020 ⁽³⁾
Revenue by segment
- Semiconductor & System Design	$	1,042.4		$	934.6		$	3,810.4		$	3,327.2
% of Total		90.5	%		91.1	%		90.6	%		90.3	%
- Software Integrity	$	110.0		$	90.8		$	393.8		$	358.1
% of Total		9.5	%		8.9	%		9.4	%		9.7	%
Total segment revenue	$	1,152.4		$	1,025.4		$	4,204.2		$	3,685.3
Adjusted operating income by segment
- Semiconductor & System Design	$	326.6		$	293.5		$	1,243.1		$	990.8
- Software Integrity	$	13.3		$	6.2		$	38.3		$	40.8
Total adjusted segment operating income	$	339.9		$	299.7		$	1,281.4		$	1,031.6
Adjusted operating margin by segment
- Semiconductor & System Design		31.3	%		31.4	%		32.6	%		29.8	%
- Software Integrity		12.1	%		6.8	%		9.7	%		11.4	%
Total adjusted segment operating margin		29.5	%		29.2	%		30.5	%		28.0	%

Total Adjusted Segment Operating Income Reconciliation ⁽¹⁾⁽²⁾

(in millions)


	Three Months		Three Months			Twelve Months			Twelve Months
	Ended		Ended			Ended			Ended
	October 31, 2021 ⁽³⁾		October 31, 2020 ⁽³⁾			October 31, 2021 ⁽³⁾			October 31, 2020 ⁽³⁾
GAAP total operating income – as reported	$	190.3	$	196.1		$	734.8		$	620.1
Other expenses managed at consolidated level
-Amortization of intangible assets		21.9		21.0			82.4			91.3
-Stock compensation		96.7		78.4			345.3			248.6
-Non-qualified deferred compensation plan		8.9		1.3			71.6			21.5
-Acquisition-related costs		3.8		3.3			15.4			14.1
-Restructuring		18.3		(0.4	)		33.4			36.1
-Legal matters		—		—			(1.5	)		—

Total adjusted segment operating income	$	339.9	$	299.7		$	1,281.4		$	1,031.6

(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. Amounts may not foot due to rounding.

(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 makers (CODMs) to evaluate the operating performance of its segments. The CODMs do 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.

(3)	Synopsys’ fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes, we refer to the closest calendar month end.