Net Income per Share

9 Months Ended

Jul. 31, 2021

Earnings Per Share [Abstract]

Net Income per Share

Net Income Per ShareThe Company computes basic net income per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding such as stock options and unvested restricted stock units and awards during the period using the treasury stock method.

The table below reconciles the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2021		2020		2021		2020
	(in thousands, except per share amounts)
Numerator:
Net income attributed to Synopsys	$	198,646	$	252,911	$	556,069	$	466,892
Denominator:
Weighted average common shares for basic net income per share	152,635		151,352		152,619		150,731
Dilutive effect of common share equivalents from equity-based compensation	4,272		4,621		4,539		4,343
Weighted average common shares for diluted net income per share	156,907		155,973		157,158		155,074
Net income per share attributed to Synopsys:
Basic	$	1.30	$	1.67	$	3.64	$	3.10
Diluted	$	1.27	$	1.62	$	3.54	$	3.01
Anti-dilutive employee stock-based awards excluded(1)	355		3		405		610

(1)These stock options and unvested restricted stock units were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future.