SYNOPSYS INCSNPS

SYNOPSYS INC Leases Disclosure

10-KFiled Dec 22, 20252 min read
Leases
We have operating lease arrangements for office space, data center, equipment and other corporate assets. These leases have various expiration dates through December 31, 2042, some of which include options to extend the leases for up to 15 years. We consider the lease renewal options in determining the lease term and include associated potential option payments in lease payments when it is reasonably certain that the renewal options will be exercised.
The components of our lease expense during the period presented are as follows:
Year Ended October 31,
202520242023
(in thousands)
Operating lease expense (1)
$117,722 $92,222 $90,680 
Variable lease expense (2)
32,389 23,835 20,395 
Total lease expense$150,111 $116,057 $111,075 
(1)Operating lease expense includes immaterial amounts of short-term leases, net of sublease income.
(2)Variable lease expense includes payments to lessors that are not fixed or determinable at lease commencement date. These payments primarily consist of maintenance, property taxes, insurance and variable indexed based payments.
Supplemental cash flow information during the period presented is as follows:
Year Ended October 31,
202520242023
(in thousands)
Cash paid for amounts included in the measurement of operating lease liabilities(1)
$115,481 $99,905 $88,983 
ROU assets obtained in exchange for operating lease liabilities(2)
$153,178 $100,480 $101,390 
(1) Cash paid for amounts included in the measurement of operating lease liabilities included cash from discontinued operations of $5.2 million and $5.7 million in fiscal 2024 and 2023.
(2) ROU assets obtained in exchange for operating lease liabilities included ROU assets from discontinued operations of $2.2 million and $1.2 million in fiscal 2024 and 2023.
Lease term and discount rate information related to our operating leases as of the end of the period presented are as follows:
As of October 31,
20252024
Weighted-average remaining lease term (in years)6.887.59
Weighted-average discount rate3.40 %2.86 %
The following table represents the maturities of our future lease payments due under operating leases as of October 31, 2025:
Lease Payments
Fiscal year(in thousands)
2026$151,583 
2027154,521 
2028140,001 
2029130,259 
2030101,406 
2031 and thereafter232,094 
Total future minimum lease payments
909,864 
Less: Imputed interest100,961 
Total lease liabilities
$808,903 
In addition, the sublease income from facilities leased by us, due to us as of October 31, 2025, are as follows:
Lease Receipts
 (in thousands)
Fiscal year
2026$18,767 
202719,689 
202820,280 
202920,888 
203017,867 
Total$97,491 

Historical Timeline

Fiscal YearFiled
2025Dec 22, 2025Showing above
2024Dec 19, 2024
2023Dec 12, 2023
2022Dec 12, 2022
2021Dec 13, 2021
2020Dec 15, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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