GAAP to Non-GAAP Reconciliation of Second Quarter Fiscal Year 2014 Targets

(in thousands, except per share data)

 Range for Three Months 

Ending April 30, 2014 (1)

Low

High

Target GAAP expenses

$      422,000

$     444,000

Adjustment:

      Estimated impact of amortization of intangible assets

(27,000)

(35,000)

      Estimated impact of stock compensation expense 

(18,000)

(22,000)

Target non-GAAP expenses

$      377,000

$     387,000

Range for Three Months

Ending April 30, 2014 (1)

Low

High

Target GAAP earnings (loss) per share

$            0.33

$           0.41

Adjustment:

Estimated impact of amortization of intangible assets

0.22

0.17

Estimated impact of stock-based compensation 

0.14

0.11

Net non-GAAP tax effect 

(0.09)

(0.07)

Target non-GAAP earnings per share

$            0.60

$           0.62

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

157,000

157,000

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2014 Targets

Range for Fiscal Year

Ending October 31, 2014 (1)

Low

High

Target GAAP earnings per share

$            1.72

$           1.83

Adjustment:

Estimated impact of amortization of intangible assets

0.74

0.69

Estimated impact of stock-based compensation 

0.52

0.48

Estimated Impact of tax settlement

(0.07)

(0.07)

Tax effect

(0.36)

(0.33)

Target non-GAAP earnings per share

$            2.55

$           2.60

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

157,000

157,000

(1) Synopsys' second quarter and fiscal year end on May 3, and November 1, 2014, respectively.  For presentation purposes, the periods refer to the closest calendar month end.