Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Oct. 31, 2013 | Dec. 02, 2013 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Oct-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'MENT | ' |
Entity Registrant Name | 'MENTOR GRAPHICS CORP | ' |
Entity Central Index Key | '0000701811 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Common Stock, Shares, Outstanding | ' | 114,609,737 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Revenues: | ' | ' | ' | ' |
System and software | $170,835 | $166,301 | $444,322 | $455,614 |
Service and support | 104,807 | 102,459 | 311,051 | 301,875 |
Total revenues | 275,642 | 268,760 | 755,373 | 757,489 |
Cost of revenues: | ' | ' | ' | ' |
System and software | 15,947 | 19,214 | 40,082 | 49,296 |
Service and support | 29,396 | 29,290 | 88,380 | 86,834 |
Amortization of purchased technology | 729 | 1,759 | 2,648 | 6,092 |
Total cost of revenues | 46,072 | 50,263 | 131,110 | 142,222 |
Gross profit | 229,570 | 218,497 | 624,263 | 615,267 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 86,799 | 76,214 | 246,823 | 220,211 |
Marketing and selling | 85,746 | 84,673 | 244,664 | 243,493 |
General and administration | 18,917 | 16,965 | 52,452 | 51,702 |
Equity in earnings of Frontline | -1,392 | -381 | -2,739 | -1,630 |
Amortization of intangible assets | 1,440 | 1,242 | 4,650 | 4,547 |
Special charges | 4,688 | 1,975 | 12,570 | 6,406 |
Total operating expenses | 196,198 | 180,688 | 558,420 | 524,729 |
Operating income | 33,372 | 37,809 | 65,843 | 90,538 |
Other income (expense), net | 352 | 57 | -879 | -239 |
Interest expense | -4,967 | -4,652 | -14,649 | -13,983 |
Income before income tax | 28,757 | 33,214 | 50,315 | 76,316 |
Income tax expense (benefit) | 3,634 | 1,148 | 1,864 | -835 |
Net income | 25,123 | 32,066 | 48,451 | 77,151 |
Net income (loss) attributable to noncontrolling interest | -412 | 1,425 | -1,271 | 161 |
Net income attributable to Mentor Graphics shareholders | $25,535 | $30,641 | $49,722 | $76,990 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.21 | $0.27 | $0.40 | $0.70 |
Diluted | $0.20 | $0.27 | $0.39 | $0.68 |
Weighted average number of shares outstanding: | ' | ' | ' | ' |
Basic | 113,986 | 111,575 | 113,232 | 110,454 |
Diluted | 117,078 | 114,721 | 116,395 | 113,584 |
Cash dividends declared per common share | $0.05 | $0 | $0.14 | $0 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Net income | $25,123 | $32,066 | $48,451 | $77,151 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Change in unrealized gain (loss) on derivative instruments | 211 | 251 | -59 | 349 |
Cash flow hedge reclassification adjustment for net loss included in net income | 209 | 234 | -58 | 157 |
Cash flow hedges change net of reclassifications | 2 | 17 | -1 | 192 |
Change in accumulated translation adjustment | 3,947 | 4,439 | -3,489 | -2,490 |
Change in pension liability | -2 | -4 | -6 | -11 |
Other comprehensive income (loss) | 3,947 | 4,452 | -3,496 | -2,309 |
Comprehensive income | 29,070 | 36,518 | 44,955 | 74,842 |
Net income (loss) attributable to noncontrolling interest | -412 | 1,425 | -1,271 | 161 |
Change in accumulated translation adjustment attributable to the noncontrolling interest | -46 | -24 | 2 | -58 |
Comprehensive loss attributable to the noncontrolling interest | -458 | 1,401 | -1,269 | 103 |
Comprehensive income attributable to Mentor Graphics shareholders | $29,528 | $35,117 | $46,224 | $74,739 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $219,907 | $223,783 |
Short-term investments | 4,078 | 0 |
Trade accounts receivable, net of allowance for doubtful accounts of $4,907 as of October 31, 2013 and $5,331 as of January 31, 2013 | 369,003 | 412,245 |
Other receivables | 17,001 | 10,974 |
Inventory | 19,542 | 18,036 |
Prepaid expenses and other | 22,883 | 24,941 |
Deferred income taxes | 9,286 | 14,973 |
Total current assets | 661,700 | 704,952 |
Property, plant, and equipment, net of accumulated depreciation of $315,837 as of October 31, 2013 and $300,914 as of January 31, 2013 | 157,195 | 162,402 |
Term receivables | 241,122 | 250,497 |
Goodwill | 540,224 | 535,932 |
Intangible assets, net of accumulated amortization of $193,305 as of October 31, 2013 and $186,060 as of January 31, 2013 | 18,698 | 21,838 |
Other assets | 71,870 | 69,663 |
Total assets | 1,690,809 | 1,745,284 |
Current liabilities: | ' | ' |
Short-term borrowings | 1,896 | 5,964 |
Accounts payable | 14,104 | 20,906 |
Income taxes payable | 5,615 | 9,180 |
Accrued payroll and related liabilities | 70,732 | 101,354 |
Accrued and other liabilities | 39,318 | 40,662 |
Deferred revenue | 194,748 | 233,759 |
Total current liabilities | 326,413 | 411,825 |
Notes payable | 222,794 | 218,546 |
Deferred revenue | 16,102 | 17,755 |
Income tax liability | 20,335 | 22,663 |
Other long-term liabilities | 24,335 | 28,318 |
Total liabilities | 609,979 | 699,107 |
Commitments and contingencies | ' | ' |
Noncontrolling interest with redemption feature | 15,343 | 12,698 |
Stockholders' equity: | ' | ' |
Common stock, no par value, 300,000 shares authorized as of October 31, 2013 and January 31, 2013; 114,585 shares issued and outstanding as of October 31, 2013 and 112,902 shares issued and outstanding as of January 31, 2013 | 815,839 | 810,902 |
Retained earnings | 227,747 | 197,178 |
Accumulated other comprehensive income | 21,901 | 25,399 |
Total stockholders' equity | 1,065,487 | 1,033,479 |
Total liabilities and stockholders' equity | $1,690,809 | $1,745,284 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Allowance for doubtful accounts receivable, current | $4,907 | $5,331 |
Property, plant, and equipment, accumulated depreciation | 315,837 | 300,914 |
Intangible assets, accumulated amortization | $193,305 | $186,060 |
Common stock, no par value | $0 | $0 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 114,585 | 112,902 |
Common stock, shares outstanding | 114,585 | 112,902 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Operating Cash Flows: | ' | ' |
Net income | $48,451 | $77,151 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of property, plant, and equipment | 26,104 | 24,701 |
Amortization of intangible assets and debt costs | 13,303 | 15,500 |
Stock-based compensation | 21,269 | 17,162 |
Deferred income taxes | 4,121 | -1,965 |
Changes in other long-term liabilities | -3,405 | -3,164 |
Dividends received from unconsolidated entities, net of equity in income | 1,136 | 2,210 |
Other | -15 | 67 |
Changes in operating assets and liabilities, net of effect of acquired businesses: | ' | ' |
Trade accounts receivable, net | 42,210 | -51,202 |
Prepaid expenses and other | -11,087 | -6,270 |
Term receivables, long-term | 8,621 | 12,249 |
Accounts payable and accrued liabilities | -39,787 | -43,601 |
Income taxes receivable and payable | -6,190 | -4,933 |
Deferred revenue | -40,705 | 14,967 |
Net cash provided by operating activities | 64,026 | 52,872 |
Investing Cash Flows: | ' | ' |
Proceeds from sale of short-term investments | 3,112 | 0 |
Purchases of short-term investments | -7,820 | 0 |
Purchases of property, plant, and equipment | -21,366 | -35,575 |
Acquisitions of businesses and equity interests, net of cash acquired | -6,408 | -1,945 |
Net cash used in investing activities | -32,482 | -37,520 |
Financing Cash Flows: | ' | ' |
Proceeds from issuance of common stock | 37,801 | 33,028 |
Repurchase of common stock | -49,995 | -20,000 |
Tax benefit from share options exercised | 0 | 139 |
Dividends paid | -15,239 | 0 |
Net decrease in short-term borrowings | -3,990 | -11,432 |
Repayments of other borrowings | -2,712 | -1,871 |
Net cash used in financing activities | -34,135 | -136 |
Effect of exchange rate changes on cash and cash equivalents | -1,285 | -1,985 |
Net change in cash and cash equivalents | -3,876 | 13,231 |
Cash and cash equivalents at the beginning of the period | 223,783 | 146,499 |
Cash and cash equivalents at the end of the period | $219,907 | $159,730 |
General
General | 9 Months Ended |
Oct. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
General—The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with United States (U.S.) generally accepted accounting principles (GAAP) and reflect all material normal recurring adjustments. However, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, the condensed consolidated financial statements include adjustments necessary for a fair presentation of the results of the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2013. | |
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and contingencies as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Any changes in estimates will be reflected in the financial statements in future periods. | |
The condensed consolidated financial statements include our financial statements and those of our wholly-owned and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Oct. 31, 2013 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements—In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11, "Income Taxes (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" which provides specific guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance is effective for annual periods, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of this standard will have no effect on our financial position, results of operations or cash flows. However, once adopted, the standard may change the presentation of unrecognized tax benefits and deferred tax assets in the balance sheet and the income taxes section of the notes to the financial statements. | |
In July 2013, the FASB issued ASU 2013-10, "Derivatives and Hedging (Topic 815) Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes" which permits the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes and removes the restriction on using different benchmark rates for similar hedges. This guidance is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows. |
Reclassification
Reclassification | 9 Months Ended | |||||||||||||||
Oct. 31, 2012 | ||||||||||||||||
Reclassifications [Abstract] | ' | |||||||||||||||
Reclassification | ' | |||||||||||||||
Reclassifications—Certain items have been reclassified within operating expenses for the three and nine months ended October 31, 2012. We have reclassified certain litigation costs out of general and administration into special charges, related to patent litigation involving Emulation and Verification Engineering S.A. and EVE-USA, Inc (together, EVE), Synopsys, Inc. (Synopsys), and us regarding emulation technology. These litigation costs are included in special charges because of their unique nature due to the significance in variability of timing and amount. These reclassifications had no impact on total operating expenses, operating income, or net income. See further discussion of these lawsuits in Note 8. "Commitments and Contingencies." | ||||||||||||||||
The reclassification of our previously issued condensed consolidated statement of operations was made to conform to the current period presentation. | ||||||||||||||||
The amounts have been reclassified in our condensed consolidated statements of operations for the time periods noted below as follows: | ||||||||||||||||
Three months ended October 31, 2012 | Nine months ended October 31, 2012 | |||||||||||||||
As Originally Reported | As Reclassified | As Originally Reported | As Reclassified | |||||||||||||
General and administration | $ | 17,794 | $ | 16,965 | $ | 54,308 | $ | 51,702 | ||||||||
Special charges | $ | 1,146 | $ | 1,975 | $ | 3,800 | $ | 6,406 | ||||||||
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurement | ' | |||||||||||||||
Fair Value Measurement— The following table presents information about financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2013: | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Bank certificates of deposit | $ | 4,078 | $ | — | $ | 4,078 | $ | — | ||||||||
Contingent consideration | (4,901 | ) | — | — | (4,901 | ) | ||||||||||
Total | $ | (823 | ) | $ | — | $ | 4,078 | $ | (4,901 | ) | ||||||
The following table presents information about financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2013: | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Contingent consideration | $ | (6,016 | ) | $ | — | $ | — | $ | (6,016 | ) | ||||||
The FASB's authoritative guidance for the hierarchy of valuation techniques is based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our market assumptions. The fair value hierarchy consists of the following three levels: | ||||||||||||||||
•Level 1—Quoted prices for identical instruments in active markets; | ||||||||||||||||
▪ | Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose significant inputs are observable; and | |||||||||||||||
•Level 3—One or more significant inputs to the valuation model are unobservable. | ||||||||||||||||
We based the fair value of bank certificates of deposit included in short-term investments on quoted market prices for similar instruments in markets that are not active (Level 2). | ||||||||||||||||
In connection with certain acquisitions, payment of a portion of the purchase price is contingent typically upon the acquired business’ achievement of certain revenue goals. As of October 31, 2013, of the total recorded balance, $1,580 was included in accrued and other liabilities and $3,321 was included in other long-term liabilities on our condensed consolidated balance sheet. As of January 31, 2013, of the total recorded balance, $1,197 was included in accrued and other liabilities and $4,819 was included in other long-term liabilities on our condensed consolidated balance sheet. | ||||||||||||||||
We have estimated the fair value of our contingent consideration as the present value of the expected payments over the term of the arrangements. The fair value measurement of our contingent consideration as of October 31, 2013 encompasses the following significant unobservable inputs: | ||||||||||||||||
Unobservable Inputs | Range | |||||||||||||||
Total estimated contingent consideration | $0 | - | $6,183 | |||||||||||||
Discount rate | 9.50% | - | 16% | |||||||||||||
Timing of cash flows (in years) | 0 | - | 4 | |||||||||||||
Changes in the fair value of our contingent consideration are primarily driven by changes in the estimated amount and timing of payments, resulting from changes in the forecasted revenues of the acquired businesses. Significant changes in any of the inputs in isolation could result in a fluctuation in the fair value measurement of contingent consideration. Changes in fair value are recognized in special charges in our condensed consolidated statement of income in the period in which the change is identified. | ||||||||||||||||
The following table summarizes contingent consideration activity: | ||||||||||||||||
Balance as of January 31, 2013 | $ | 6,016 | ||||||||||||||
New contingent consideration | 540 | |||||||||||||||
Payments | (1,191 | ) | ||||||||||||||
Adjustments | (603 | ) | ||||||||||||||
Interest accretion | 139 | |||||||||||||||
Balance as of October 31, 2013 | $ | 4,901 | ||||||||||||||
The following table summarizes the fair value and carrying value of notes payable: | ||||||||||||||||
As of | October 31, 2013 | January 31, 2013 | ||||||||||||||
Fair value of notes payable | $ | 321,075 | $ | 293,867 | ||||||||||||
Carrying value of notes payable | $ | 222,794 | $ | 218,546 | ||||||||||||
We based the fair value of notes payable on the quoted market price or rates available to us for instruments with similar terms and maturities (Level 2). Of the total carrying value of notes payable, none was classified as current on our condensed consolidated balance sheet as of October 31, 2013 and January 31, 2013. | ||||||||||||||||
The carrying amounts of cash equivalents, trade accounts receivable, net, term receivables, short-term borrowings, accounts payable, and accrued liabilities approximate fair value because of the short-term nature of these instruments or because amounts have been appropriately discounted. |
Term_Receivables_and_Trade_Acc
Term Receivables and Trade Accounts Receivable | 9 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Term Receivables and Trade Accounts Receivable [Abstract] | ' | ||||||||||||||||
Term Receivables and Trade Accounts Receivable | ' | ||||||||||||||||
Term Receivables and Trade Accounts Receivable—We have long-term installment receivables that are attributable to multi-year, multi-element term license sales agreements. We include balances under term agreements that are due within one year in trade accounts receivable, net and balances that are due more than one year from the balance sheet date in term receivables, long-term. We discount the total product portion of the agreements to reflect the interest component of the transaction. We amortize the interest component of the transaction, using the effective interest method, to system and software revenues over the period in which payments are made and balances are outstanding. We determine the discount rate at the outset of the arrangement based upon the current credit rating of the customer. We reset the discount rate periodically considering changes in prevailing interest rates but do not adjust previously discounted balances. | |||||||||||||||||
Term receivable and trade accounts receivable balances were as follows: | |||||||||||||||||
As of | October 31, 2013 | January 31, 2013 | |||||||||||||||
Trade accounts receivable | $ | 124,240 | $ | 178,351 | |||||||||||||
Term receivables, short-term | $ | 244,763 | $ | 233,894 | |||||||||||||
Term receivables, long-term | $ | 241,122 | $ | 250,497 | |||||||||||||
Trade accounts receivable include billed amounts whereas term receivables, short-term are comprised of unbilled amounts. Term receivables, short-term represent the portion of long-term installment agreements that are due within one year. Billings for term agreements typically occur 30 days prior to the contractual due date, in accordance with individual contract installment terms. Term receivables, long-term represent unbilled amounts which are scheduled to be collected beyond one year. | |||||||||||||||||
We perform a credit risk assessment of all customers using the Standard & Poor’s (S&P) credit rating as our primary credit-quality indicator. The S&P credit ratings are based on the most recent S&P score available. For customers that do not have an S&P credit rating, we base our credit risk assessment on an internal credit assessment which is based on selected short-term financial ratios. Our internal credit assessment is based upon results provided in the customers’ most recent financial statements. We determine whether or not to extend credit to these customers based on the results of our internal credit assessment, thus, mitigating our risk of loss. | |||||||||||||||||
The credit risk assessment for our long-term receivables was as follows: | |||||||||||||||||
As of | October 31, 2013 | January 31, 2013 | |||||||||||||||
S&P credit rating: | |||||||||||||||||
AAA+ through BBB- | $ | 145,516 | $ | 133,773 | |||||||||||||
BB+ and lower | 34,716 | 45,298 | |||||||||||||||
180,232 | 179,071 | ||||||||||||||||
Internal credit assessment | 60,890 | 71,426 | |||||||||||||||
Total long-term term receivables | $ | 241,122 | $ | 250,497 | |||||||||||||
We maintain allowances for doubtful accounts on trade accounts receivable and term receivables for estimated losses resulting from the inability of our customers to make required payments. We regularly evaluate the collectibility of our trade accounts receivable based on a combination of factors. When we become aware of a specific customer’s inability to meet its financial obligations, such as in the case of bankruptcy or deterioration in the customer’s operating results, financial position, or credit rating, we record a specific reserve for bad debt to reduce the related receivable to the amount believed to be collectible. We also record unspecified reserves for bad debt for all other customers based on a variety of factors including length of time the receivables are past due, the financial health of the customers, the current business environment, and historical experience. Current economic conditions we consider include forecasted spending in the semiconductor industry, consumer spending for electronics, integrated circuit research and development spending, and volatility in gross domestic product. If these factors change or circumstances related to specific customers change, we adjust the estimates of the recoverability of receivables resulting in either additional selling expense or a reduction in selling expense in the period such determination is made. | |||||||||||||||||
The following shows the change in allowance for doubtful accounts: | |||||||||||||||||
Allowance for doubtful accounts | Beginning balance | Expense adjustment | Other deductions(1) | Ending balance | |||||||||||||
Nine months ended October 31, 2013 | $ | 5,331 | $ | (331 | ) | $ | (93 | ) | $ | 4,907 | |||||||
Nine months ended October 31, 2012 | $ | 4,432 | $ | 285 | $ | (146 | ) | $ | 4,571 | ||||||||
(1)Specific account write-offs and foreign exchange. | |||||||||||||||||
We enter into agreements to sell qualifying accounts receivable from time to time to certain financing institutions on a non-recourse basis. We received net proceeds from the sale of receivables of $22,267 for the nine months ended October 31, 2013 compared to $19,379 for the nine months ended October 31, 2012. Amounts collected from customers on accounts receivable previously sold on a non-recourse basis to financial institutions are included in short-term borrowings on the balance sheet. These amounts are remitted to the financial institutions in the month following quarter-end. |
ShortTerm_Borrowings
Short-Term Borrowings | 9 Months Ended | |
Oct. 31, 2013 | ||
Short-term Debt [Abstract] | ' | |
Short-Term Borrowings | ' | |
Short-Term Borrowings—In May 2013, we amended our syndicated, senior, unsecured, revolving credit facility, extending the termination date to May 24, 2017. | ||
The revolving credit facility has a maximum borrowing capacity of $125,000. As stated in the revolving credit facility, we have the option to pay interest based on: | ||
(i) | London Interbank Offered Rate (LIBOR) with varying maturities commensurate with the borrowing period we select, plus a spread of between 2.00% and 2.50% based on a pricing grid tied to a financial covenant; or | |
(ii) | A base rate plus a spread of between 1.00% and 1.50%, based on a pricing grid tied to a financial covenant. | |
As a result of these interest rate options, our interest expense associated with borrowings under this revolving credit facility will vary with market interest rates. In addition, commitment fees are payable on the unused portion of the revolving credit facility at rates between 0.30% and 0.40% based on a pricing grid tied to a financial covenant. We had no borrowings against the revolving credit facility during the nine months ended October 31, 2013 and 2012. | ||
This revolving credit facility contains certain financial and other covenants, including a limit on the aggregate amount we can pay for dividends and repurchases of our stock over the term of the facility of $50,000 plus 70% of our cumulative net income for the periods after January 31, 2011. | ||
We were in compliance with all financial covenants as of October 31, 2013. If we fail to comply with the financial covenants and do not obtain a waiver from our lenders, we would be in default under the revolving credit facility and our lenders could terminate the facility and demand immediate repayment of all outstanding loans under the revolving credit facility. |
Notes_Payable
Notes Payable | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Notes Payable [Abstract] | ' | |||||||||||||||
Notes Payable | ' | |||||||||||||||
Notes Payable—In April 2011, we issued $253,000 of 4.00% Convertible Subordinated Debentures (4.00% Debentures) due 2031 in a private placement pursuant to the SEC Rule 144A under the Securities Act of 1933. Interest on the 4.00% Debentures is payable semi-annually in April and October. | ||||||||||||||||
The 4.00% Debentures are convertible, under certain circumstances, into our common stock at a conversion rate, as of October 31, 2013, of 49.033 shares of our common stock for each one thousand dollars in principal amount of the 4.00% Debentures (equivalent to a conversion price of $20.39 per share) for a total of 12,405 shares. These circumstances include: | ||||||||||||||||
• | The market price of our common stock exceeding 120% of the conversion price, or $24.46 per share as of October 31, 2013, for at least 20 of the last 30 trading days in the previous fiscal quarter; | |||||||||||||||
• | A call for redemption of the 4.00% Debentures; | |||||||||||||||
• | Specified distributions to holders of our common stock; | |||||||||||||||
• | If a fundamental change, such as a change of control, occurs; | |||||||||||||||
• | During the two months prior to, but not on, the maturity date; or | |||||||||||||||
• | The market price of the 4.00% Debentures declining to less than 98% of the value of the common stock into which the 4.00% Debentures are convertible. | |||||||||||||||
Upon conversion of any 4.00% Debentures, a holder will receive: | ||||||||||||||||
(i) | Cash for the lesser of the principal amount of the 4.00% Debentures that are converted or the value of the converted shares; and | |||||||||||||||
(ii) | Cash or shares of common stock, at our election, for the excess, if any, of the value of the converted shares over the principal amount. | |||||||||||||||
If a holder elects to convert their 4.00% Debentures in connection with a fundamental change in the company that occurs prior to April 5, 2016, the holder will also be entitled to receive a make whole premium upon conversion in some circumstances. | ||||||||||||||||
As a result of declaring cash dividends during the nine months ended October 31, 2013, the initial conversion rate for the 4.00% Debentures of 48.6902 shares of our common stock for each one thousand dollars in principal amount of the 4.00% Debentures (equivalent to a conversion price of $20.54 per share of our common stock) has been adjusted to 49.033 shares of our common stock for each one thousand dollars in principal amount of the 4.00% Debentures (equivalent to a conversion price of $20.39 per share of our common stock). | ||||||||||||||||
We may redeem some or all of the 4.00% Debentures for cash on or after April 5, 2016 at the following redemption prices expressed as a percentage of principal, plus any accrued and unpaid interest: | ||||||||||||||||
Period | Redemption Price | |||||||||||||||
Beginning on April 5, 2016 and ending on March 31, 2017 | 101.143 | % | ||||||||||||||
Beginning on April 1, 2017 and ending on March 31, 2018 | 100.571 | % | ||||||||||||||
On April 1, 2018 and thereafter | 100 | % | ||||||||||||||
The holders, at their option, may redeem the 4.00% Debentures in whole or in part for cash on April 1, 2018, April 1, 2021, and April 1, 2026, and in the event of a fundamental change in the company. In each case, our repurchase price will be 100% of the principal amount of the 4.00% Debentures plus any accrued and unpaid interest. | ||||||||||||||||
The 4.00% Debentures contain a conversion feature that the debt may be settled in cash upon conversion, therefore we separately account for the implied liability and equity components of the 4.00% Debentures. The principal amount, unamortized debt discount, net carrying amount of the liability component, and carrying amount of the equity component of the 4.00% Debentures are as follows: | ||||||||||||||||
As of | October 31, 2013 | January 31, 2013 | ||||||||||||||
Principal amount | $ | 253,000 | $ | 253,000 | ||||||||||||
Unamortized debt discount | (30,206 | ) | (34,454 | ) | ||||||||||||
Net carrying amount of the liability component | $ | 222,794 | $ | 218,546 | ||||||||||||
Equity component | $ | 43,930 | $ | 43,930 | ||||||||||||
The unamortized debt discount amortizes to interest expense using the effective interest method through March 2018. | ||||||||||||||||
We recognized the following amounts in interest expense in the condensed consolidated statement of income related to the 4.00% Debentures: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest expense at the contractual interest rate | $ | 2,530 | $ | 2,530 | $ | 7,590 | $ | 7,590 | ||||||||
Amortization of debt discount | $ | 1,441 | $ | 1,342 | $ | 4,248 | $ | 3,955 | ||||||||
The effective interest rate on the 4.00% Debentures was 7.25% for the nine months ended October 31, 2013 and 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Indemnifications | |
Our license and services agreements generally include a limited indemnification provision for claims from third parties relating to our intellectual property. The indemnification is generally limited to the amount paid by the customer, a multiple of the amount paid by the customer, or a set cap. As of October 31, 2013, we were not aware of any material liabilities arising from these indemnification obligations. | |
Legal Proceedings | |
From time to time, we are involved in various disputes and litigation matters that arise in the ordinary course of business. These include disputes and lawsuits relating to intellectual property rights, contracts, distributorships, and employee relations matters. Periodically, we review the status of various disputes and litigation matters and assess our potential exposure. When we consider the potential loss from any dispute or legal matter probable and the amount or the range of loss can be estimated, we will accrue a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, we base accruals on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation matters and may revise estimates. We believe that the outcome of current litigation, individually and in the aggregate, will not have a material effect on our results of operations. | |
In some instances, we are unable to reasonably estimate any potential loss or range of loss. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit will have. There are many reasons that we cannot make these assessments, including, among others, one or more of the following: the early stages of a proceeding; damages sought that are unspecific, unsupportable, unexplained or uncertain; discovery not having been started or incomplete; the complexity of the facts that are in dispute; the difficulty of assessing novel claims; the parties not having engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and/or the often slow pace of litigation. | |
In December 2012, Synopsys filed a lawsuit claiming patent infringement against us in federal district court in the Northern District of California, alleging that our Veloce family of products infringes on four Synopsys United States Patents. This case seeks compensatory damages and a permanent injunction against the licensing of several of our software and hardware products, including our emulation products. We believe this lawsuit was filed in response to patent lawsuits we filed in 2010 and 2012 against EVE, which Synopsys acquired in October 2012. Our lawsuits, which allege that EVE's Zebu emulation products infringe several of our patents, were filed against EVE in federal district court in Oregon. We also filed a patent lawsuit against EVE in Tokyo district court. Our litigation in Oregon and Japan seeks compensatory damages and an injunction against the sale of EVE emulation products. We do not have sufficient information upon which to determine that a loss in connection with this matter is probable, reasonably possible or estimable, and thus no reserve has been established nor has a range of loss been disclosed. |
Employee_Stock_and_Savings_Pla
Employee Stock and Savings Plans | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Employee Stock and Savings Plans | ' | |||||||||||||||
Stock-Based Compensation and Stockholders' Equity | ||||||||||||||||
Stock Option and Stock Plans | ||||||||||||||||
Our 2010 Omnibus Incentive Plan (Incentive Plan) is administered by the Compensation Committee of our Board of Directors and permits accelerated vesting of outstanding options, restricted stock units, restricted stock awards, and other equity incentives upon the occurrence of certain changes in control of our company. Stock options and restricted stock units under the Incentive Plan are generally expected to vest over four years. Stock options have an expiration date of ten years from the date of grant and an exercise price no less than the fair market value of the shares on the date of grant. | ||||||||||||||||
Employee Stock Purchase Plans | ||||||||||||||||
We have an employee stock purchase plan (ESPP) for U.S. employees and an ESPP for certain foreign subsidiary employees. The ESPPs provide for six-month offerings commencing on January 1 and July 1 of each year with purchases on June 30 and December 31 of each year. Each eligible employee may purchase up to six thousand shares of stock on each purchase date (subject to a plan limit on the total fair market value) at prices no less than 85% of the lesser of the fair market value of the shares on the offering date or on the purchase date. | ||||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||||
The following table summarizes stock-based compensation expense recognized: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues | $ | 520 | $ | 393 | $ | 1,438 | $ | 1,080 | ||||||||
Operating expenses: | ||||||||||||||||
Research and development | 2,865 | 2,272 | 8,018 | 6,604 | ||||||||||||
Marketing and selling | 1,998 | 1,644 | 5,651 | 4,818 | ||||||||||||
General and administration | 2,043 | 1,400 | 6,162 | 4,660 | ||||||||||||
Equity plan-related compensation expense | $ | 7,426 | $ | 5,709 | $ | 21,269 | $ | 17,162 | ||||||||
Dividends | ||||||||||||||||
On March 7, 2013, our Board of Directors announced the adoption of a dividend policy under which we intend to pay an annual cash dividend of $0.18 per share of common stock. The following table summarizes the dividends declared: | ||||||||||||||||
Declaration Date | Record Date | Payment Date | Per Share Amount | Total Amount | ||||||||||||
3/7/13 | 3/22/13 | 4/10/13 | $ | 0.045 | $ | 5,064 | ||||||||||
5/23/13 | 6/10/13 | 7/1/13 | $ | 0.045 | $ | 5,079 | ||||||||||
8/22/13 | 9/10/13 | 9/30/13 | $ | 0.045 | $ | 5,096 | ||||||||||
11/21/13 | 12/10/13 | 1/2/14 | $ | 0.045 | ||||||||||||
Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to the quarterly determination of our Board of Directors. |
Incentive_Stock_Rights
Incentive Stock Rights | 9 Months Ended |
Oct. 31, 2013 | |
Incentive Stock Rights [Abstract] | ' |
Incentive Stock Rights | ' |
Incentive Stock Rights—Our Board of Directors has the authority to issue incentive stock in one or more series and to determine the relative rights and preferences of the incentive stock. On June 24, 2010, we adopted an Incentive Stock Purchase Rights Plan and declared a dividend distribution of one right for each outstanding share of common stock, payable to holders of record on July 6, 2010. On December 23, 2011, our Board of Directors amended the Stock Purchase Rights Plan to, among other things, extend the expiration date of the rights and increase the exercise price of each right. On June 28, 2013, our Board of Directors amended the Stock Purchase Rights Plan to extend the expiration date of the rights, change the ownership threshold for certain types of investors, increase the exercise price of each right, and add a qualifying offer provision. As long as the rights are attached to our common stock, we will issue one right with each new share of common stock so that all such shares will have attached rights. Under certain conditions, each right may be exercised to purchase 1/10,000 of a share of Series B Junior Participating Incentive Stock at a purchase price of ninety dollars, subject to adjustment. The rights are not presently exercisable and will only become exercisable if a person or group acquires or commences a tender offer to acquire 15% (20% for certain types of "passive institutional investors") or more of our common stock. | |
If a person or group acquires 15% (20% for certain types of "passive institutional investors") or more of our common stock, each right will be adjusted to entitle its holder to receive, upon exercise, common stock (or, in certain circumstances, other assets of ours) having a value equal to two times the exercise price of the right, or each right will be adjusted to entitle its holder to receive, upon exercise, common stock of the acquiring company having a value equal to two times the exercise price of the right, depending on the circumstances. The rights expire on June 30, 2015 and may be redeemed by us for $0.001 per right. The rights do not have voting or dividend rights and have no dilutive effect on our earnings. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income Per Share | ' | |||||||||||||||
Net Income Per Share—We compute basic net income per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of common shares issuable upon vesting of restricted stock units, common shares issuable upon exercise of stock options, purchase rights from ESPPs, and common shares issuable upon conversion of the convertible subordinated debentures using the treasury stock method, if dilutive. | ||||||||||||||||
The following provides the computation of basic and diluted net income per share: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income attributable to Mentor Graphics shareholders | $ | 25,535 | $ | 30,641 | $ | 49,722 | $ | 76,990 | ||||||||
Noncontrolling interest adjustment to redemption value | (2,032 | ) | — | (3,913 | ) | — | ||||||||||
Adjusted net income attributable to Mentor Graphics shareholders | $ | 23,503 | $ | 30,641 | $ | 45,809 | $ | 76,990 | ||||||||
Weighted average common shares used to calculate basic net income per share | 113,986 | 111,575 | 113,232 | 110,454 | ||||||||||||
Employee stock options, restricted stock units, and employee stock purchase plan | 3,092 | 3,146 | 3,163 | 3,130 | ||||||||||||
Weighted average common and potential common shares used to calculate diluted net income per share | 117,078 | 114,721 | 116,395 | 113,584 | ||||||||||||
Net income per share attributable to Mentor Graphics shareholders: | ||||||||||||||||
Basic | $ | 0.21 | $ | 0.27 | $ | 0.4 | $ | 0.7 | ||||||||
Diluted | $ | 0.2 | $ | 0.27 | $ | 0.39 | $ | 0.68 | ||||||||
We excluded from the computation of diluted net income per share stock options, restricted stock units, and ESPP purchase rights for 73 shares of common stock for the three months ended October 31, 2013 and 1,238 shares of common stock for the nine months ended October 31, 2013 compared to 1,205 for the three months ended October 31, 2012 and 2,626 for the nine months ended October 31, 2012. These stock options, restricted stock units, and ESPP purchase rights were determined to be anti-dilutive as a result of applying the treasury stock method. | ||||||||||||||||
We have decreased the numerator of our basic and diluted earnings per share calculation by $2,032 for the three months ended October 31, 2013 and $3,913 for the nine months ended October 31, 2013 for the adjustment to increase the noncontrolling interest with redemption feature to its calculated redemption value at October 31, 2013, recorded directly to retained earnings. For the three and nine months ended October 31, 2012, we excluded a similar adjustment from the calculation of basic and diluted earnings per share, as the amount was not significant. | ||||||||||||||||
We assume that the 4.00% Debentures will be settled in common stock for purposes of calculating the dilutive effect of the 4.00% Debentures. The effect of the assumed conversion of the 4.00% Debentures was anti-dilutive and therefore excluded from the computation of diluted net income per share. | ||||||||||||||||
The conversion features of the 4.00% Debentures, which allow for settlement in cash or a combination of cash and common stock, are further described in Note 7. “Notes Payable.” |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||
Accumulated Other Comprehensive Income | ' | |||||||
Accumulated Other Comprehensive Income—The following table summarizes the components of accumulated other comprehensive income, net of tax: | ||||||||
As of | 31-Oct-13 | 31-Jan-13 | ||||||
Foreign currency translation adjustment | $ | 21,655 | $ | 25,146 | ||||
Unrealized loss on derivatives | (13 | ) | (12 | ) | ||||
Pension liability | 259 | 265 | ||||||
Total accumulated other comprehensive income | $ | 21,901 | $ | 25,399 | ||||
Special_Charges
Special Charges | 9 Months Ended | |||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||
Special Charges | ' | |||||||||||||||||
Special Charges—The following is a summary of the components of special charges: | ||||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Employee severance and related costs | $ | 1,133 | $ | 612 | $ | 3,843 | $ | 2,629 | ||||||||||
Litigation costs | 3,046 | 829 | 8,217 | 2,606 | ||||||||||||||
Other costs, net | 509 | 534 | 510 | 1,171 | ||||||||||||||
Total special charges | $ | 4,688 | $ | 1,975 | $ | 12,570 | $ | 6,406 | ||||||||||
Special charges may include expenses incurred related to employee severance, acquisitions, excess facility costs, certain litigation costs, and asset related charges. | ||||||||||||||||||
Employee severance and related costs include costs incurred for employee terminations due to a reduction of personnel resources driven by modifications of business strategy or business emphasis. Employee severance and related costs include severance benefits, notice pay, and outplacement services. These rebalance charges generally represent the aggregate of numerous unrelated rebalance plans which impact several employee groups, none of which is individually material to our financial position or results of operations. We determine termination benefits based on employee status, years of service, and local statutory requirements. We communicate termination benefits to the affected employees prior to the end of the quarter in which we record the charge. | ||||||||||||||||||
Approximately 75% of the employee severance and related costs for the nine months ended October 31, 2013 were paid during the period. We expect to pay the remainder during the fiscal year ending January 31, 2014. Substantially all of the employee severance and related costs for the nine months ended October 31, 2012 were paid during the fiscal year ending January 31, 2013. There have been no significant modifications to the amount of these charges. | ||||||||||||||||||
Litigation costs consist of professional service fees for services rendered, related to patent litigation involving us, EVE, and Synopsys regarding emulation technology. For the three and nine months ended October 31, 2012, these costs have been reclassified from general and administration to special charges as further described in Note 3. "Reclassifications." | ||||||||||||||||||
Accrued special charges are included in accrued and other liabilities and other long-term liabilities in the condensed consolidated balance sheets. The following table shows changes in accrued special charges during the nine months ended October 31, 2013: | ||||||||||||||||||
Accrued special | Charges during the nine months ended | Adjustments (payments) during the nine months ended | Accrued special | |||||||||||||||
charges as of | charges as of | |||||||||||||||||
January 31, 2013 | October 31, 2013 | October 31, 2013 | October 31, 2013 | (1 | ) | |||||||||||||
Employee severance and related costs | $ | 2,028 | $ | 3,843 | $ | (4,641 | ) | $ | 1,230 | |||||||||
Litigation costs | 624 | 8,217 | (4,485 | ) | 4,356 | |||||||||||||
Other costs, net | 2,889 | 510 | (620 | ) | 2,779 | |||||||||||||
Total accrued special charges | $ | 5,541 | $ | 12,570 | $ | (9,746 | ) | $ | 8,365 | |||||||||
(1) | Of the $8,365 total accrued special charges as of October 31, 2013, $660 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income and other long-term costs. The remaining balance of $7,705 represents the short-term portion of accrued special charges. |
Other_Income_Expense_Net
Other Income (Expense), Net | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Income (Expense), Net | ' | |||||||||||||||
Other Income (Expense), Net—Other income (expense), net was comprised of the following: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest income | $ | 681 | $ | 458 | $ | 1,836 | $ | 1,407 | ||||||||
Foreign currency exchange loss | (198 | ) | (243 | ) | (2,067 | ) | (1,059 | ) | ||||||||
Other, net | (131 | ) | (158 | ) | (648 | ) | (587 | ) | ||||||||
Other income (expense), net | $ | 352 | $ | 57 | $ | (879 | ) | $ | (239 | ) | ||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Related Party Transactions | ' | |||||||||||||||
Related Party Transactions—Certain members of our Board of Directors also serve on the board of directors for some of our customers. Management believes the transactions between these customers and us were carried out on an arm’s-length basis. As of October 31, 2013, we had amounts receivable from these customers of $61,640. As of January 31, 2013, amounts receivable from these customers were not significant. The following table shows revenue recognized from these customers: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues from customers | $ | 13,945 | $ | 7,377 | $ | 50,282 | $ | 38,651 | ||||||||
Percentage of total revenues | 5.1 | % | 2.7 | % | 6.7 | % | 5.1 | % |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes—The provision for income taxes was comprised of the following: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income tax expense (benefit) | $ | 3,634 | $ | 1,148 | $ | 1,864 | $ | (835 | ) | |||||||
Effective tax rate | 13 | % | 3 | % | 4 | % | (1 | )% | ||||||||
Generally, the provision for income taxes is the result of the mix of profits and losses earned in various tax jurisdictions with a broad range of income tax rates, withholding taxes, changes in tax reserves, and the application of valuation allowances on deferred tax assets. Accounting guidance requires for interim reporting that we evaluate our provision for income tax expense (benefit) based on our projected results of operations for the full year, and record adjustments in each quarter. Such adjustments consider period specific items and a separate determination of tax expense for entities in our consolidated group that are projected to have losses for which no tax benefit will be recognized. | ||||||||||||||||
Our effective tax rate is 4% for the nine months ended October 31, 2013, after the inclusion of $(4,591) in net favorable period specific items. The period specific items primarily relate to a reduction in liabilities for uncertain tax positions and the release of a valuation allowance against deferred tax assets in the United Kingdom due to tax law changes in that jurisdiction. For our full year forecast, we have projected a 9% effective tax rate. This rate is inclusive of period specific items recognized through October 31, 2013. Our projected rate for the full year differs from tax computed at the U.S. federal statutory rate of 35% primarily due to: | ||||||||||||||||
•The benefit of lower tax rates on earnings of foreign subsidiaries; | ||||||||||||||||
•Reduction in reserves for uncertain tax positions; | ||||||||||||||||
•Forecasted utilization of net operating loss carryforwards for which no previous benefit was recognized; and | ||||||||||||||||
•The application of tax incentives for research and development. | ||||||||||||||||
These differences are partially offset by: | ||||||||||||||||
•Repatriation of foreign subsidiary earnings to the U.S.; | ||||||||||||||||
•Non-deductible equity compensation expense; and | ||||||||||||||||
•Withholding taxes. | ||||||||||||||||
Actual results may differ significantly from our current projections. Further, our effective tax rate could fluctuate considerably on a quarterly basis, and could be significantly affected to the extent our actual mix of earnings among individual jurisdictions is different than our expectations. | ||||||||||||||||
We determine deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities. In addition, we record deferred tax assets for net operating loss carryforwards and tax credit carryforwards. We calculate the deferred tax assets and liabilities using the enacted tax rates and laws that will be in effect when we expect the differences to reverse. A valuation allowance is recorded when it is more likely than not that all or some portion of the | ||||||||||||||||
deferred tax asset will not be realized. Since 2004, we have determined it is uncertain whether our U.S. entity will generate sufficient taxable income and foreign source income to fully utilize net operating loss carryforwards, research and experimentation credit carryforwards, and foreign tax credit carryforwards before expiration. Accordingly, we recorded a valuation allowance against those deferred tax assets for which realization does not meet the more likely than not standard. We have established valuation allowances related to certain foreign deferred tax assets based on historical losses as well as future expectations in certain jurisdictions. We will continue to evaluate the realizability of the deferred tax assets on a periodic basis. | ||||||||||||||||
As of October 31, 2013, we had a liability of $24,611 for income taxes associated with uncertain income tax positions. Of this liability, $4,276 was classified as short-term liabilities in income taxes payable in our condensed consolidated balance sheet as we generally anticipate the settlement of such liabilities will require payment of cash within the next twelve months. The remaining $20,335 of income tax associated with uncertain tax positions was classified as long-term liabilities. Certain liabilities may result in the reduction of deferred tax assets rather than settlement in cash. We are not able to reasonably estimate the timing of any cash payments required to settle the long-term liabilities and do not believe that the ultimate settlement of these liabilities will materially affect our liquidity. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
Supplemental Cash Flow Information—The following provides information concerning supplemental disclosures of cash flow activities: | ||||||||
Nine months ended October 31, | 2013 | 2012 | ||||||
Cash paid, net for: | ||||||||
Interest | $ | 11,803 | $ | 11,376 | ||||
Income taxes | $ | 7,911 | $ | 8,651 | ||||
We have an investment in Frontline PCB Solutions Limited Partnership (Frontline). We received returns on investment from Frontline of $4,000 during the nine months ended October 31, 2013 and $3,950 during the nine months ended October 31, 2012, which is included in net cash provided by operating activities in our condensed consolidated statement of cash flows. |
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Reporting | ' | |||||||||||||||
Segment Reporting—Our Chief Operating Decision Makers (CODMs), which consist of the Chief Executive Officer and the President, review our consolidated results within one operating segment. When making operating decisions, our CODMs primarily consider consolidated financial information accompanied by disaggregated revenue information by geographic region. | ||||||||||||||||
We eliminate all intercompany revenues in computing revenues by geographic regions. Revenues related to operations in the geographic regions were: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: | ||||||||||||||||
North America | $ | 138,819 | $ | 125,809 | $ | 334,546 | $ | 356,472 | ||||||||
Europe | 57,571 | 58,937 | 151,979 | 165,532 | ||||||||||||
Japan | 18,911 | 23,602 | 62,065 | 86,766 | ||||||||||||
Pacific Rim | 60,341 | 60,412 | 206,783 | 148,719 | ||||||||||||
Total revenues | $ | 275,642 | $ | 268,760 | $ | 755,373 | $ | 757,489 | ||||||||
For the three months ended October 31, 2013, one customer accounted for 11% of our total revenues. For the nine months ended October 31, 2013 and for the three and nine months ended October 31, 2012, no customer accounted for 10% or more of our total revenues. |
Fair_Value_Measurement_Policie
Fair Value Measurement (Policies) | 9 Months Ended | |
Oct. 31, 2013 | ||
Fair Value Disclosures [Abstract] | ' | |
Fair value of financial instruments | ' | |
The FASB's authoritative guidance for the hierarchy of valuation techniques is based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our market assumptions. The fair value hierarchy consists of the following three levels: | ||
•Level 1—Quoted prices for identical instruments in active markets; | ||
▪ | Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose significant inputs are observable; and | |
•Level 3—One or more significant inputs to the valuation model are unobservable. | ||
Short-term investments fair value determination | ' | |
We based the fair value of bank certificates of deposit included in short-term investments on quoted market prices for similar instruments in markets that are not active (Level 2). | ||
Business combination contingent consideration | ' | |
We have estimated the fair value of our contingent consideration as the present value of the expected payments over the term of the arrangements. | ||
Notes payable fair value determination | ' | |
We based the fair value of notes payable on the quoted market price or rates available to us for instruments with similar terms and maturities (Level 2). |
Term_Receivables_and_Trade_Acc1
Term Receivables and Trade Accounts Receivable (Policies) | 9 Months Ended |
Oct. 31, 2013 | |
Term Receivables and Trade Accounts Receivable [Abstract] | ' |
Receivables policy | ' |
We include balances under term agreements that are due within one year in trade accounts receivable, net and balances that are due more than one year from the balance sheet date in term receivables, long-term. We discount the total product portion of the agreements to reflect the interest component of the transaction. We amortize the interest component of the transaction, using the effective interest method, to system and software revenues over the period in which payments are made and balances are outstanding. We determine the discount rate at the outset of the arrangement based upon the current credit rating of the customer. We reset the discount rate periodically considering changes in prevailing interest rates but do not adjust previously discounted balances. | |
Trade and unbilled receivables | ' |
Trade accounts receivable include billed amounts whereas term receivables, short-term are comprised of unbilled amounts. Term receivables, short-term represent the portion of long-term installment agreements that are due within one year. Billings for term agreements typically occur 30 days prior to the contractual due date, in accordance with individual contract installment terms. Term receivables, long-term represent unbilled amounts which are scheduled to be collected beyond one year. | |
Financing receivable credit quality determination | ' |
We perform a credit risk assessment of all customers using the Standard & Poor’s (S&P) credit rating as our primary credit-quality indicator. The S&P credit ratings are based on the most recent S&P score available. For customers that do not have an S&P credit rating, we base our credit risk assessment on an internal credit assessment which is based on selected short-term financial ratios. Our internal credit assessment is based upon results provided in the customers’ most recent financial statements. | |
Allowance for doubtful accounts | ' |
We maintain allowances for doubtful accounts on trade accounts receivable and term receivables for estimated losses resulting from the inability of our customers to make required payments. We regularly evaluate the collectibility of our trade accounts receivable based on a combination of factors. When we become aware of a specific customer’s inability to meet its financial obligations, such as in the case of bankruptcy or deterioration in the customer’s operating results, financial position, or credit rating, we record a specific reserve for bad debt to reduce the related receivable to the amount believed to be collectible. We also record unspecified reserves for bad debt for all other customers based on a variety of factors including length of time the receivables are past due, the financial health of the customers, the current business environment, and historical experience. Current economic conditions we consider include forecasted spending in the semiconductor industry, consumer spending for electronics, integrated circuit research and development spending, and volatility in gross domestic product. If these factors change or circumstances related to specific customers change, we adjust the estimates of the recoverability of receivables resulting in either additional selling expense or a reduction in selling expense in the period such determination is made. |
Commitments_and_Contingencies_
Commitments and Contingencies (Policies) | 9 Months Ended |
Oct. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and contingencies policy | ' |
When we consider the potential loss from any dispute or legal matter probable and the amount or the range of loss can be estimated, we will accrue a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, we base accruals on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation matters and may revise estimates. |
Special_Charges_Restructuring_
Special Charges Restructuring and related activities (Policies) | 9 Months Ended |
Oct. 31, 2013 | |
Restructuring and Related Activities [Abstract] | ' |
Costs associated with employee severance and related costs | ' |
Employee severance and related costs include costs incurred for employee terminations due to a reduction of personnel resources driven by modifications of business strategy or business emphasis. Employee severance and related costs include severance benefits, notice pay, and outplacement services. These rebalance charges generally represent the aggregate of numerous unrelated rebalance plans which impact several employee groups, none of which is individually material to our financial position or results of operations. We determine termination benefits based on employee status, years of service, and local statutory requirements. We communicate termination benefits to the affected employees prior to the end of the quarter in which we record the charge. |
Reclassification_Tables
Reclassification (Tables) | 9 Months Ended | |||||||||||||||
Oct. 31, 2012 | ||||||||||||||||
Reclassifications [Abstract] | ' | |||||||||||||||
Reclassifications | ' | |||||||||||||||
The amounts have been reclassified in our condensed consolidated statements of operations for the time periods noted below as follows: | ||||||||||||||||
Three months ended October 31, 2012 | Nine months ended October 31, 2012 | |||||||||||||||
As Originally Reported | As Reclassified | As Originally Reported | As Reclassified | |||||||||||||
General and administration | $ | 17,794 | $ | 16,965 | $ | 54,308 | $ | 51,702 | ||||||||
Special charges | $ | 1,146 | $ | 1,975 | $ | 3,800 | $ | 6,406 | ||||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||
The following table presents information about financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2013: | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Bank certificates of deposit | $ | 4,078 | $ | — | $ | 4,078 | $ | — | ||||||||
Contingent consideration | (4,901 | ) | — | — | (4,901 | ) | ||||||||||
Total | $ | (823 | ) | $ | — | $ | 4,078 | $ | (4,901 | ) | ||||||
The following table presents information about financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2013: | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Contingent consideration | $ | (6,016 | ) | $ | — | $ | — | $ | (6,016 | ) | ||||||
Significant unobservable inputs | ' | |||||||||||||||
The fair value measurement of our contingent consideration as of October 31, 2013 encompasses the following significant unobservable inputs: | ||||||||||||||||
Unobservable Inputs | Range | |||||||||||||||
Total estimated contingent consideration | $0 | - | $6,183 | |||||||||||||
Discount rate | 9.50% | - | 16% | |||||||||||||
Timing of cash flows (in years) | 0 | - | 4 | |||||||||||||
Summary of level 3 activity | ' | |||||||||||||||
The following table summarizes contingent consideration activity: | ||||||||||||||||
Balance as of January 31, 2013 | $ | 6,016 | ||||||||||||||
New contingent consideration | 540 | |||||||||||||||
Payments | (1,191 | ) | ||||||||||||||
Adjustments | (603 | ) | ||||||||||||||
Interest accretion | 139 | |||||||||||||||
Balance as of October 31, 2013 | $ | 4,901 | ||||||||||||||
Schedule of notes payable | ' | |||||||||||||||
The following table summarizes the fair value and carrying value of notes payable: | ||||||||||||||||
As of | October 31, 2013 | January 31, 2013 | ||||||||||||||
Fair value of notes payable | $ | 321,075 | $ | 293,867 | ||||||||||||
Carrying value of notes payable | $ | 222,794 | $ | 218,546 | ||||||||||||
Term_Receivables_and_Trade_Acc2
Term Receivables and Trade Accounts Receivable (Tables) | 9 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Term Receivables and Trade Accounts Receivable [Abstract] | ' | ||||||||||||||||
Term receivable and trade accounts receivable balances | ' | ||||||||||||||||
Term receivable and trade accounts receivable balances were as follows: | |||||||||||||||||
As of | October 31, 2013 | January 31, 2013 | |||||||||||||||
Trade accounts receivable | $ | 124,240 | $ | 178,351 | |||||||||||||
Term receivables, short-term | $ | 244,763 | $ | 233,894 | |||||||||||||
Term receivables, long-term | $ | 241,122 | $ | 250,497 | |||||||||||||
Credit risk assessment for long-term receivables | ' | ||||||||||||||||
The credit risk assessment for our long-term receivables was as follows: | |||||||||||||||||
As of | October 31, 2013 | January 31, 2013 | |||||||||||||||
S&P credit rating: | |||||||||||||||||
AAA+ through BBB- | $ | 145,516 | $ | 133,773 | |||||||||||||
BB+ and lower | 34,716 | 45,298 | |||||||||||||||
180,232 | 179,071 | ||||||||||||||||
Internal credit assessment | 60,890 | 71,426 | |||||||||||||||
Total long-term term receivables | $ | 241,122 | $ | 250,497 | |||||||||||||
Change in allowance for doubtful accounts | ' | ||||||||||||||||
The following shows the change in allowance for doubtful accounts: | |||||||||||||||||
Allowance for doubtful accounts | Beginning balance | Expense adjustment | Other deductions(1) | Ending balance | |||||||||||||
Nine months ended October 31, 2013 | $ | 5,331 | $ | (331 | ) | $ | (93 | ) | $ | 4,907 | |||||||
Nine months ended October 31, 2012 | $ | 4,432 | $ | 285 | $ | (146 | ) | $ | 4,571 | ||||||||
(1)Specific account write-offs and foreign exchange. |
Notes_Payable_Tables
Notes Payable (Tables) | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Redemption prices | ' | |||||||||||||||
We may redeem some or all of the 4.00% Debentures for cash on or after April 5, 2016 at the following redemption prices expressed as a percentage of principal, plus any accrued and unpaid interest: | ||||||||||||||||
Period | Redemption Price | |||||||||||||||
Beginning on April 5, 2016 and ending on March 31, 2017 | 101.143 | % | ||||||||||||||
Beginning on April 1, 2017 and ending on March 31, 2018 | 100.571 | % | ||||||||||||||
On April 1, 2018 and thereafter | 100 | % | ||||||||||||||
4.00% Debentures due 2031 | ' | |||||||||||||||
Principal amount, unamortized debt premium (discount), net carrying amount of the liability component, and carrying amount of the equity component | ' | |||||||||||||||
The principal amount, unamortized debt discount, net carrying amount of the liability component, and carrying amount of the equity component of the 4.00% Debentures are as follows: | ||||||||||||||||
As of | October 31, 2013 | January 31, 2013 | ||||||||||||||
Principal amount | $ | 253,000 | $ | 253,000 | ||||||||||||
Unamortized debt discount | (30,206 | ) | (34,454 | ) | ||||||||||||
Net carrying amount of the liability component | $ | 222,794 | $ | 218,546 | ||||||||||||
Equity component | $ | 43,930 | $ | 43,930 | ||||||||||||
Recognized amounts in interest expense in the condensed consolidated statement of operations related to debentures | ' | |||||||||||||||
We recognized the following amounts in interest expense in the condensed consolidated statement of income related to the 4.00% Debentures: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest expense at the contractual interest rate | $ | 2,530 | $ | 2,530 | $ | 7,590 | $ | 7,590 | ||||||||
Amortization of debt discount | $ | 1,441 | $ | 1,342 | $ | 4,248 | $ | 3,955 | ||||||||
Employee_Stock_and_Savings_Pla1
Employee Stock and Savings Plans (Tables) | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock compensation expense recognized | ' | |||||||||||||||
The following table summarizes stock-based compensation expense recognized: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues | $ | 520 | $ | 393 | $ | 1,438 | $ | 1,080 | ||||||||
Operating expenses: | ||||||||||||||||
Research and development | 2,865 | 2,272 | 8,018 | 6,604 | ||||||||||||
Marketing and selling | 1,998 | 1,644 | 5,651 | 4,818 | ||||||||||||
General and administration | 2,043 | 1,400 | 6,162 | 4,660 | ||||||||||||
Equity plan-related compensation expense | $ | 7,426 | $ | 5,709 | $ | 21,269 | $ | 17,162 | ||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of basic and diluted net income per share | ' | |||||||||||||||
The following provides the computation of basic and diluted net income per share: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income attributable to Mentor Graphics shareholders | $ | 25,535 | $ | 30,641 | $ | 49,722 | $ | 76,990 | ||||||||
Noncontrolling interest adjustment to redemption value | (2,032 | ) | — | (3,913 | ) | — | ||||||||||
Adjusted net income attributable to Mentor Graphics shareholders | $ | 23,503 | $ | 30,641 | $ | 45,809 | $ | 76,990 | ||||||||
Weighted average common shares used to calculate basic net income per share | 113,986 | 111,575 | 113,232 | 110,454 | ||||||||||||
Employee stock options, restricted stock units, and employee stock purchase plan | 3,092 | 3,146 | 3,163 | 3,130 | ||||||||||||
Weighted average common and potential common shares used to calculate diluted net income per share | 117,078 | 114,721 | 116,395 | 113,584 | ||||||||||||
Net income per share attributable to Mentor Graphics shareholders: | ||||||||||||||||
Basic | $ | 0.21 | $ | 0.27 | $ | 0.4 | $ | 0.7 | ||||||||
Diluted | $ | 0.2 | $ | 0.27 | $ | 0.39 | $ | 0.68 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||
Schedule of components of accumulated other comprehensive income | ' | |||||||
The following table summarizes the components of accumulated other comprehensive income, net of tax: | ||||||||
As of | 31-Oct-13 | 31-Jan-13 | ||||||
Foreign currency translation adjustment | $ | 21,655 | $ | 25,146 | ||||
Unrealized loss on derivatives | (13 | ) | (12 | ) | ||||
Pension liability | 259 | 265 | ||||||
Total accumulated other comprehensive income | $ | 21,901 | $ | 25,399 | ||||
Special_Charges_Tables
Special Charges (Tables) | 9 Months Ended | |||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||
Summary of the components of the special charges | ' | |||||||||||||||||
The following is a summary of the components of special charges: | ||||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Employee severance and related costs | $ | 1,133 | $ | 612 | $ | 3,843 | $ | 2,629 | ||||||||||
Litigation costs | 3,046 | 829 | 8,217 | 2,606 | ||||||||||||||
Other costs, net | 509 | 534 | 510 | 1,171 | ||||||||||||||
Total special charges | $ | 4,688 | $ | 1,975 | $ | 12,570 | $ | 6,406 | ||||||||||
Changes in accrued special charges | ' | |||||||||||||||||
The following table shows changes in accrued special charges during the nine months ended October 31, 2013: | ||||||||||||||||||
Accrued special | Charges during the nine months ended | Adjustments (payments) during the nine months ended | Accrued special | |||||||||||||||
charges as of | charges as of | |||||||||||||||||
January 31, 2013 | October 31, 2013 | October 31, 2013 | October 31, 2013 | (1 | ) | |||||||||||||
Employee severance and related costs | $ | 2,028 | $ | 3,843 | $ | (4,641 | ) | $ | 1,230 | |||||||||
Litigation costs | 624 | 8,217 | (4,485 | ) | 4,356 | |||||||||||||
Other costs, net | 2,889 | 510 | (620 | ) | 2,779 | |||||||||||||
Total accrued special charges | $ | 5,541 | $ | 12,570 | $ | (9,746 | ) | $ | 8,365 | |||||||||
(1) | Of the $8,365 total accrued special charges as of October 31, 2013, $660 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income and other long-term costs. The remaining balance of $7,705 represents the short-term portion of accrued special charges. |
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other income (expense), net | ' | |||||||||||||||
Other income (expense), net was comprised of the following: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest income | $ | 681 | $ | 458 | $ | 1,836 | $ | 1,407 | ||||||||
Foreign currency exchange loss | (198 | ) | (243 | ) | (2,067 | ) | (1,059 | ) | ||||||||
Other, net | (131 | ) | (158 | ) | (648 | ) | (587 | ) | ||||||||
Other income (expense), net | $ | 352 | $ | 57 | $ | (879 | ) | $ | (239 | ) | ||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Revenue recognized from related party | ' | |||||||||||||||
The following table shows revenue recognized from these customers: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues from customers | $ | 13,945 | $ | 7,377 | $ | 50,282 | $ | 38,651 | ||||||||
Percentage of total revenues | 5.1 | % | 2.7 | % | 6.7 | % | 5.1 | % |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Provision for Income Taxes | ' | |||||||||||||||
The provision for income taxes was comprised of the following: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income tax expense (benefit) | $ | 3,634 | $ | 1,148 | $ | 1,864 | $ | (835 | ) | |||||||
Effective tax rate | 13 | % | 3 | % | 4 | % | (1 | )% |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Information concerning supplemental disclosures of cash flow activities | ' | |||||||
The following provides information concerning supplemental disclosures of cash flow activities: | ||||||||
Nine months ended October 31, | 2013 | 2012 | ||||||
Cash paid, net for: | ||||||||
Interest | $ | 11,803 | $ | 11,376 | ||||
Income taxes | $ | 7,911 | $ | 8,651 | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Revenues related to operations in geographic regions | ' | |||||||||||||||
Revenues related to operations in the geographic regions were: | ||||||||||||||||
Three months ended October 31, | Nine months ended October 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: | ||||||||||||||||
North America | $ | 138,819 | $ | 125,809 | $ | 334,546 | $ | 356,472 | ||||||||
Europe | 57,571 | 58,937 | 151,979 | 165,532 | ||||||||||||
Japan | 18,911 | 23,602 | 62,065 | 86,766 | ||||||||||||
Pacific Rim | 60,341 | 60,412 | 206,783 | 148,719 | ||||||||||||
Total revenues | $ | 275,642 | $ | 268,760 | $ | 755,373 | $ | 757,489 | ||||||||
Reclassifications_Details
Reclassifications (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Reclassifications [Line Items] | ' | ' | ' | ' |
General and administration | $18,917 | $16,965 | $52,452 | $51,702 |
Special charges | 4,688 | 1,975 | 12,570 | 6,406 |
Previously Reported | ' | ' | ' | ' |
Reclassifications [Line Items] | ' | ' | ' | ' |
General and administration | ' | 17,794 | ' | 54,308 |
Special charges | ' | $1,146 | ' | $3,800 |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | $4,078 | $0 |
Fair Value, Measurements, Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 4,078 | ' |
Contingent consideration | -4,901 | -6,016 |
Total | -823 | ' |
Level 1 | Fair Value, Measurements, Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | ' |
Contingent consideration | 0 | 0 |
Total | 0 | ' |
Level 2 | Fair Value, Measurements, Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 4,078 | ' |
Contingent consideration | 0 | 0 |
Total | 4,078 | ' |
Level 3 | Fair Value, Measurements, Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | ' |
Contingent consideration | -4,901 | -6,016 |
Total | ($4,901) | ' |
Fair_Value_Measurement_Level_3
Fair Value Measurement Level 3 Unobservable Inputs (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2013 |
Unobservable Inputs [Abstract] | ' |
Total estimated contingent consideration, low | $0 |
Total estimated contingent consideration, high | $6,183 |
Discount rate, low | 9.50% |
Discount rate, high | 16.00% |
Timing of cash flows (in years), low | 0 |
Timing of cash flows (in years), high | 4 |
Summary_of_Level_3_Activity_De
Summary of Level 3 Activity (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Balance at beginning of period | $6,016 |
New contingent consideration | 540 |
Payments | -1,191 |
Adjustments | -603 |
Interest accretion | 139 |
Balance at ending of period | $4,901 |
Summary_of_Fair_Value_and_Carr
Summary of Fair Value and Carrying Value of Notes Payable (Detail) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Disclosure Summary Of Fair Value And Carrying Value Of Notes Payable [Abstract] | ' | ' |
Fair value of notes payable | $321,075 | $293,867 |
Notes payable | $222,794 | $218,546 |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Disclosure Fair Value Measurement Additional Information [Abstract] | ' | ' |
Fair value of contingent consideration included in accrued liabilities | $1,580 | $1,197 |
Fair value of contingent consideration included in other long term liabilities | 3,321 | 4,819 |
Current portion of notes payable | $0 | $0 |
Term_Receivable_and_Trade_Acco
Term Receivable and Trade Accounts Receivable Balances (Detail) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts and Financing Receivable [Line Items] | ' | ' |
Trade accounts receivable, net | $369,003 | $412,245 |
Term receivables, long-term | 241,122 | 250,497 |
Trade accounts receivable | ' | ' |
Accounts and Financing Receivable [Line Items] | ' | ' |
Trade accounts receivable, net | 124,240 | 178,351 |
Term receivables, short-term | ' | ' |
Accounts and Financing Receivable [Line Items] | ' | ' |
Trade accounts receivable, net | $244,763 | $233,894 |
Credit_Risk_Assessment_for_Lon
Credit Risk Assessment for Long-term Receivables (Detail) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts and Financing Receivable [Line Items] | ' | ' |
Term receivables, long-term | $241,122 | $250,497 |
S&P credit rating, AAA+ through BBB- | ' | ' |
Accounts and Financing Receivable [Line Items] | ' | ' |
Term receivables, long-term | 145,516 | 133,773 |
S&P credit rating, BB+ and lower | ' | ' |
Accounts and Financing Receivable [Line Items] | ' | ' |
Term receivables, long-term | 34,716 | 45,298 |
S&P credit rating | ' | ' |
Accounts and Financing Receivable [Line Items] | ' | ' |
Term receivables, long-term | 180,232 | 179,071 |
Internal Credit Rating | ' | ' |
Accounts and Financing Receivable [Line Items] | ' | ' |
Term receivables, long-term | $60,890 | $71,426 |
Change_in_Allowance_for_Doubtf
Change in Allowance for Doubtful Accounts (Detail) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ||
Beginning balance | $5,331 | $4,432 | ||
Charged to expense | -331 | 285 | ||
Deductions | -93 | [1] | -146 | [1] |
Ending balance | $4,907 | $4,571 | ||
[1] | Specific account write-offs and foreign exchange. |
Term_Receivables_and_Trade_Acc3
Term Receivables and Trade Accounts Receivable - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Disclosure Term Receivables And Trade Accounts Receivable Additional Information [Abstract] | ' | ' |
Billing period | '30 days | ' |
Net proceeds from sale of receivables | $22,267 | $19,379 |
ShortTerm_Borrowings_Additiona
Short-Term Borrowings - Additional Information (Detail) (Revolving credit facility, USD $) | 6 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2013 |
Line of Credit Facility [Line Items] | ' | ' |
Termination date for senior, unsecured revolving credit facility | 24-May-17 | ' |
Revolving credit facility, maximum borrowing capacity | $125,000 | $125,000 |
Credit facility limits, aggregate amount available for dividend and repurchase of stock | ' | $50,000 |
Credit facility limits, aggregate amount available for dividend and repurchase of stock, percentage of cumulative net income | ' | 70.00% |
Minimum | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Commitment fee percentage on unused line of credit | 0.30% | ' |
Minimum | LIBOR | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Basis spread | 2.00% | ' |
Minimum | Base rate | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Basis spread | 1.00% | ' |
Maximum | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Commitment fee percentage on unused line of credit | 0.40% | ' |
Maximum | LIBOR | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Basis spread | 2.50% | ' |
Maximum | Base rate | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Basis spread | 1.50% | ' |
Notes_Payable_Redemption_Price
Notes Payable - Redemption Prices Expressed as a Percentage of Principal, Plus any Accrued and Unpaid Interest (Detail) (4.00% Debentures due 2031, Convertible Subordinated Debt) | 9 Months Ended |
Oct. 31, 2013 | |
Redemption period beginning on April 5, 2016 and ending on March 31, 2017 | ' |
Debt Instrument [Line Items] | ' |
Debentures redemption price | 101.14% |
Redemption period beginning on April 1, 2017 and ending on March 31, 2018 | ' |
Debt Instrument [Line Items] | ' |
Debentures redemption price | 100.57% |
Redemption period On April 1, 2018 and thereafter | ' |
Debt Instrument [Line Items] | ' |
Debentures redemption price | 100.00% |
Notes_Payable_Principal_Amount
Notes Payable - Principal Amount, Unamortized Debt Discount, Net Carrying Amount of the Liability Component, and Carrying Amount of the Equity Component of the 4.00% Debentures (Detail) (4.00% Debentures due 2031, USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
4.00% Debentures due 2031 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount | $253,000 | $253,000 |
Unamortized debt discount | -30,206 | -34,454 |
Net carrying amount of the liability component | 222,794 | 218,546 |
Equity component | $43,930 | $43,930 |
Notes_Payable_Recognized_Amoun
Notes Payable - Recognized Amounts in Interest Expense in the Condensed Consolidated Statement of Operations Related to the 4.00% Debentures (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Interest expense at the contractual interest rate | $4,967 | $4,652 | $14,649 | $13,983 |
4.00% Debentures due 2031 | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Interest expense at the contractual interest rate | 2,530 | 2,530 | 7,590 | 7,590 |
Amortization of debt discount | $1,441 | $1,342 | $4,248 | $3,955 |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (4.00% Debentures due 2031, Convertible Subordinated Debt, USD $) | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2011 |
Debt Instrument [Line Items] | ' | ' | ' |
Issued debt | ' | ' | $253,000 |
Interest rate | ' | ' | 4.00% |
Conversion rate | 49.033 | ' | ' |
Conversion price | $20.39 | ' | ' |
Total number of shares | 12,405,000 | ' | ' |
Market price of common stock exceeding percent of the conversion price | 120.00% | ' | ' |
Debt instrument conversion circumstance stock price | $24.46 | ' | ' |
Debt instrument threshold trading days | 20 | ' | ' |
Debt instrument threshold consecutive trading days | '30 days | ' | ' |
Market price of debentures declining to maximum percent of the value of the common stock | 98.00% | ' | ' |
Initial conversion rate | ' | ' | 48.6902 |
Principal amount multiple | $1 | ' | $1 |
Initial conversion price | ' | ' | $20.54 |
Amortization end date | '2018-03 | ' | ' |
Interest rate during period | 7.25% | 7.25% | ' |
Holder optional redemption period 1 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debentures redemption price | 100.00% | ' | ' |
Holder optional redemption period 2 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debentures redemption price | 100.00% | ' | ' |
Holder optional redemption period 3 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debentures redemption price | 100.00% | ' | ' |
StockBased_Compensation_and_St
Stock-Based Compensation and Stockholders equity Dividends (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2012 | Jul. 31, 2010 | Oct. 31, 2013 | Oct. 31, 2012 | Nov. 21, 2013 |
Subsequent Event | ||||||||
Dividends Declared [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock dividend per share annual amount | ' | ' | $0.18 | ' | ' | ' | ' | ' |
Dividends payable, date declared | 22-Aug-13 | 23-May-13 | 7-Mar-13 | ' | ' | ' | ' | 21-Nov-13 |
Dividends payable, date of record | 10-Sep-13 | 10-Jun-13 | 22-Mar-13 | ' | 6-Jul-10 | ' | ' | 10-Dec-13 |
Dividends payable, date to be paid | 30-Sep-13 | 1-Jul-13 | 10-Apr-13 | ' | ' | ' | ' | 2-Jan-14 |
Cash dividends declared per common share | $0.05 | $0.05 | $0.05 | $0 | ' | $0.14 | $0 | $0.05 |
Dividends paid | ($5,096) | ($5,079) | ($5,064) | ' | ' | ($15,239) | $0 | ' |
Employee_Stock_and_Savings_Pla2
Employee Stock and Savings Plans - Stock Compensation Expense Recognized (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | $7,426 | $5,709 | $21,269 | $17,162 |
Cost of goods sold | ' | ' | ' | ' |
Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 520 | 393 | 1,438 | 1,080 |
Research and development | ' | ' | ' | ' |
Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 2,865 | 2,272 | 8,018 | 6,604 |
Selling and marketing | ' | ' | ' | ' |
Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 1,998 | 1,644 | 5,651 | 4,818 |
General and administration | ' | ' | ' | ' |
Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | $2,043 | $1,400 | $6,162 | $4,660 |
Omnibus Incentive Plan | ' | ' | ' | ' |
Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Award requisite service period | ' | ' | '4 years | ' |
Award expiry period from date of grant | ' | ' | '10 years | ' |
Employee stock purchase plans | ' | ' | ' | ' |
Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Maximum number of shares that may be purchased by eligible participants (in shares) | ' | ' | 6,000 | ' |
Eligible employee stock purchase price | ' | ' | 85.00% | ' |
Employee stock purchase plan offering term | ' | ' | '6 months | ' |
Incentive_Stock_Rights_Additio
Incentive Stock Rights - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2012 | Jul. 31, 2010 | Oct. 31, 2013 | Jun. 24, 2010 | |
Disclosure Incentive Stock Rights Additional Information [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Incentive stock purchase right adoption date | ' | ' | ' | ' | 24-Jun-10 | ' | ' |
Dividend distribution of rights declared for each outstanding share of common stock | ' | ' | ' | ' | ' | ' | 1 |
Dividends payable, date of record | 10-Sep-13 | 10-Jun-13 | 22-Mar-13 | ' | 6-Jul-10 | ' | ' |
Incentive stock purchase right amendment date | ' | 28-Jun-13 | ' | 23-Dec-11 | ' | ' | ' |
Class of warrant or right issuable with each new share of common stock | 1 | ' | ' | ' | ' | 1 | ' |
Number of shares called by rights | 0.0001 | ' | ' | ' | ' | 0.0001 | ' |
Incentive stock purchase price | $90 | ' | ' | ' | ' | $90 | ' |
Percentage of common stock acquired to initiate exercise of incentive stock rights, minimum | ' | ' | ' | ' | ' | 15.00% | ' |
Percentage of common stock acquired to initiate exercise of incentive stock rights, certain investors | ' | ' | ' | ' | ' | 20.00% | ' |
Percent of incentive stock right exercise price for value of the entity's common stock received upon exercise of incentive stock right | ' | ' | ' | ' | ' | 200.00% | ' |
Percent of incentive stock right exercise price for value of acquiring company's common stock received upon exercise of incentive stock right | ' | ' | ' | ' | ' | 200.00% | ' |
Date on which rights expire | ' | ' | ' | ' | ' | 30-Jun-15 | ' |
Rights redemption price | ' | ' | ' | ' | ' | $0.00 | ' |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Disclosure Net Income Loss Per Share Additional Information [Abstract] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 73 | 1,205 | 1,238 | 2,626 |
Non-controlling interest adjustment to redemption value | ($2,032) | $0 | ($3,913) | $0 |
Net_Income_Per_Share_Computati
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 73 | 1,205 | 1,238 | 2,626 |
Net income attributable to Mentor Graphics shareholders | $25,535 | $30,641 | $49,722 | $76,990 |
Non-controlling interest adjustment to redemption value | -2,032 | 0 | -3,913 | 0 |
Net income (loss) attributable to parent, diluted | $23,503 | $30,641 | $45,809 | $76,990 |
Weighted average common shares used to calculate basic net income per share (in shares) | 113,986 | 111,575 | 113,232 | 110,454 |
Employee stock options, restricted stock units and employee stock purchase plan (in shares) | 3,092 | 3,146 | 3,163 | 3,130 |
Weighted average common and potential common shares used to calculate diluted net income per share (in shares) | 117,078 | 114,721 | 116,395 | 113,584 |
Basic net income per share attributable to Mentor Graphics shareholders (in dollars per share) | $0.21 | $0.27 | $0.40 | $0.70 |
Diluted net income per share attributable to Mentor Graphics shareholders (in dollars per share) | $0.20 | $0.27 | $0.39 | $0.68 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) (USD $) | Oct. 31, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Foreign currency translation adjustment | $21,655 | $25,146 |
Unrealized loss on derivatives | -13 | -12 |
Pension liability | 259 | 265 |
Accumulated other comprehensive income | $21,901 | $25,399 |
Summary_of_the_Components_of_t
Summary of the Components of the Special Charges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Disclosure Summary Of Components Of Special Charges [Abstract] | ' | ' | ' | ' |
Special charges | $4,688 | $1,975 | $12,570 | $6,406 |
Employee Severance [Member] | ' | ' | ' | ' |
Disclosure Summary Of Components Of Special Charges [Abstract] | ' | ' | ' | ' |
Employee severance and related costs | 1,133 | 612 | 3,843 | 2,629 |
Litigation Costs [Member] | ' | ' | ' | ' |
Disclosure Summary Of Components Of Special Charges [Abstract] | ' | ' | ' | ' |
Litigation costs | 3,046 | 829 | 8,217 | 2,606 |
Other Restructuring [Member] | ' | ' | ' | ' |
Disclosure Summary Of Components Of Special Charges [Abstract] | ' | ' | ' | ' |
Other costs | $509 | $534 | $510 | $1,171 |
Changes_in_Accrued_Special_Cha
Changes in Accrued Special Charges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | ||
Accrued special charges [Roll Forward] | ' | ' | ' | ' | ||
Accrued special charges beginning balance | ' | ' | $5,541 | ' | ||
Special charges | 4,688 | 1,975 | 12,570 | 6,406 | ||
Adjustments (payments) | ' | ' | -9,746 | ' | ||
Accrued special charges ending balance | 8,365 | [1] | ' | 8,365 | [1] | ' |
Employee severance and related costs | ' | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||
Employee severance and related costs | 1,133 | 612 | 3,843 | 2,629 | ||
Accrued special charges [Roll Forward] | ' | ' | ' | ' | ||
Accrued special charges beginning balance | ' | ' | 2,028 | ' | ||
Adjustments (payments) | ' | ' | -4,641 | ' | ||
Accrued special charges ending balance | 1,230 | [1] | ' | 1,230 | [1] | ' |
Litigation costs | ' | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||
Litigation costs | 3,046 | 829 | 8,217 | 2,606 | ||
Accrued special charges [Roll Forward] | ' | ' | ' | ' | ||
Accrued special charges beginning balance | ' | ' | 624 | ' | ||
Adjustments (payments) | ' | ' | -4,485 | ' | ||
Accrued special charges ending balance | 4,356 | [1] | ' | 4,356 | [1] | ' |
Other costs | ' | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||
Other costs | 509 | 534 | 510 | 1,171 | ||
Accrued special charges [Roll Forward] | ' | ' | ' | ' | ||
Accrued special charges beginning balance | ' | ' | 2,889 | ' | ||
Adjustments (payments) | ' | ' | -620 | ' | ||
Accrued special charges ending balance | $2,779 | [1] | ' | $2,779 | [1] | ' |
[1] | Of the $8,365 total accrued special charges as of OctoberB 31, 2013, $660 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income and other long-term costs. The remaining balance of $7,705 represents the short-term portion of accrued special charges. |
Special_Charges_Additional_Inf
Special Charges - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Jan. 31, 2013 | |
Disclosure Special Charges Additional Information [Abstract] | ' | ' | |
Percentage of termination benefit paid during the period | 75.00% | ' | |
Accrued special charges ending balance | $8,365 | [1] | $5,541 |
Long-term portion of accrued lease termination fees and other facility costs, net of sublease income | 660 | ' | |
Short-term portion of accrued special charges | $7,705 | ' | |
[1] | Of the $8,365 total accrued special charges as of OctoberB 31, 2013, $660 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income and other long-term costs. The remaining balance of $7,705 represents the short-term portion of accrued special charges. |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Component of Other Expense, Nonoperating [Line Items] | ' | ' | ' | ' |
Interest income | $681 | $458 | $1,836 | $1,407 |
Foreign currency exchange loss | -198 | -243 | -2,067 | -1,059 |
Other, net | -131 | -158 | -648 | -587 |
Other income (expense), net | $352 | $57 | ($879) | ($239) |
Revenue_Recognized_from_Relate
Revenue Recognized from Related Party (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue from related parties | $13,945 | $7,377 | $50,282 | $38,651 |
Percentage of related party revenue | 5.10% | 2.70% | 6.70% | 5.10% |
Related_Party_Transactions_Rel
Related Party Transactions Related Party Transactions - Additional Information (Details) (USD $) | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |
Related Party Transaction [Line Items] | ' |
Accounts receivable due from related party | $61,640 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Disclosure Provision For Income Taxes Abstract | ' | ' | ' | ' |
Income tax expense (benefit) | $3,634 | $1,148 | $1,864 | ($835) |
Effective tax rate | 13.00% | 3.00% | 4.00% | -1.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2013 |
Disclosure Income Taxes Additional Information [Abstract] | ' | ' | ' | ' | ' |
Effective tax rate | 13.00% | 3.00% | 4.00% | -1.00% | ' |
Period specific items benefit | ' | ' | ($4,591) | ' | ' |
Effective income tax rate forecast | ' | ' | 9.00% | ' | ' |
U.S. federal statutory rate | ' | ' | 35.00% | ' | ' |
Income taxes associated with uncertain income tax positions | 24,611 | ' | 24,611 | ' | ' |
Liability for uncertain tax positions, current | 4,276 | ' | 4,276 | ' | ' |
Income tax liability | $20,335 | ' | $20,335 | ' | $22,663 |
Information_Concerning_Supplem
Information Concerning Supplemental Disclosures of Cash Flow Activities (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Cash paid, net for: | ' | ' |
Interest | $11,803 | $11,376 |
Income taxes | $7,911 | $8,651 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information - Additional Information (Detail) (Frontline, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Frontline | ' | ' |
Schedule of Supplemental Cash Flow [Line Items] | ' | ' |
Returns received on investment | $4,000 | $3,950 |
Segment_Reporting_Operating_Se
Segment Reporting Operating Segment (Details) | 9 Months Ended |
Oct. 31, 2013 | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 1 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | |
Concentration Risk [Line Items] | ' | ' | ' |
Customers accounting for ten percent or more of net revenue | 1 | 0 | 0 |
Customer concentration risk | Sales revenue, goods and services, net | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Customer percent of total revenues | 11.00% | 10.00% | 10.00% |
Segment_Reporting_Revenues_Rel
Segment Reporting Revenues Related to Operations in Geographic Regions (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
Revenues: | ' | ' | ' | ' |
Total revenues | $275,642 | $268,760 | $755,373 | $757,489 |
North America | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Total revenues | 138,819 | 125,809 | 334,546 | 356,472 |
Europe | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Total revenues | 57,571 | 58,937 | 151,979 | 165,532 |
Japan | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Total revenues | 18,911 | 23,602 | 62,065 | 86,766 |
Asia | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Total revenues | $60,341 | $60,412 | $206,783 | $148,719 |