Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Mar. 16, 2016 | Jul. 31, 2015 | |
Entity Information | |||
Entity Registrant Name | MENTOR GRAPHICS CORP | ||
Entity Central Index Key | 701,811 | ||
Trading Symbol | MENT | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 106,930,507 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,041,069,523 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Revenues: | |||
System and software | $ 700,621 | $ 799,151 | $ 737,790 |
Service and support | 480,367 | 444,982 | 418,583 |
Total revenues | 1,180,988 | 1,244,133 | 1,156,373 |
Cost of revenues: | |||
System and software | 48,330 | 69,811 | 65,288 |
Service and support | 134,025 | 127,403 | 118,221 |
Amortization of purchased technology | 7,303 | 7,099 | 3,598 |
Total cost of revenues | 189,658 | 204,313 | 187,107 |
Gross profit | 991,330 | 1,039,820 | 969,266 |
Operating expenses: | |||
Research and development | 381,440 | 381,125 | 348,817 |
Marketing and selling | 351,344 | 365,688 | 342,799 |
General and administration | 73,853 | 79,193 | 75,543 |
Equity in earnings of Frontline | (5,849) | (5,653) | (4,092) |
Amortization of intangible assets | 8,716 | 8,166 | 6,230 |
Special charges | 45,081 | 23,490 | 16,929 |
Total operating expenses | 854,585 | 852,009 | 786,226 |
Operating income: | 136,745 | 187,811 | 183,040 |
Other income (expense), net | 1,612 | (777) | (520) |
Interest expense | (19,428) | (19,276) | (19,452) |
Income before income tax | 118,929 | 167,758 | 163,068 |
Income tax expense | 24,753 | 22,581 | 9,510 |
Net income | 94,176 | 145,177 | 153,558 |
Less: Loss attributable to noncontrolling interest | (2,101) | (1,962) | (1,700) |
Net income attributable to Mentor Graphics shareholders | $ 96,277 | $ 147,139 | $ 155,258 |
Net income per share: | |||
Basic | $ 0.83 | $ 1.28 | $ 1.33 |
Diluted | $ 0.81 | $ 1.26 | $ 1.29 |
Weighted average number of shares outstanding: | |||
Basic | 116,701 | 114,635 | 113,671 |
Diluted | 119,263 | 117,078 | 116,702 |
Cash dividends declared per common share | $ 0.22 | $ 0.20 | $ 0.18 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Net income | $ 94,176 | $ 145,177 | $ 153,558 |
Other comprehensive loss, net of tax: | |||
Change in unrealized gain (loss) on derivative instruments | 234 | (283) | 1,653 |
Less: reclassification adjustment for net gain (loss) included in net income | 312 | (283) | 1,599 |
Net change | (78) | 0 | 54 |
Change in accumulated translation adjustment | (8,947) | (30,360) | (6,790) |
Change in pension liability, net of tax expense (benefit) of $25, $(161), $72 | (166) | (285) | 135 |
Other comprehensive loss | (9,191) | (30,645) | (6,601) |
Comprehensive income | 84,985 | 114,532 | 146,957 |
Net loss | (2,101) | (1,962) | (1,700) |
Change in accumulated translation adjustment | 22 | 45 | (5) |
Comprehensive loss attributable to the noncontrolling interest | (2,079) | (1,917) | (1,705) |
Comprehensive income attributable to Mentor Graphics shareholders | $ 87,064 | $ 116,449 | $ 148,662 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $ 25 | $ (161) | $ 72 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 334,826 | $ 230,281 |
Trade accounts receivable, net of allowance for doubtful accounts of $3,826 as of January 31, 2016 and $4,217 as of January 31, 2015 | 493,209 | 546,622 |
Other receivables | 23,120 | 20,984 |
Inventory | 24,762 | 22,512 |
Prepaid expenses and other | 22,550 | 21,405 |
Deferred income taxes | 0 | 23,490 |
Total current assets | 898,467 | 865,294 |
Property, plant, and equipment, net | 182,092 | 170,737 |
Term receivables | 268,657 | 301,862 |
Goodwill | 606,842 | 599,929 |
Intangible assets, net | 37,446 | 45,577 |
Other assets | 70,860 | 62,609 |
Total assets | 2,064,364 | 2,046,008 |
Current liabilities: | ||
Short-term borrowings | 33,449 | 7,228 |
Accounts payable | 16,740 | 12,687 |
Income taxes payable | 3,966 | 5,994 |
Accrued payroll and related liabilities | 73,371 | 108,553 |
Accrued and other liabilities | 37,059 | 47,728 |
Deferred revenue | 258,725 | 259,340 |
Total current liabilities | 423,310 | 441,530 |
Notes Payable, Noncurrent | 240,076 | 227,386 |
Deferred revenue | 18,303 | 21,251 |
Income tax liability | 25,116 | 19,279 |
Other long-term liabilities | 37,130 | 50,336 |
Total liabilities | $ 743,935 | $ 759,782 |
Commitments and contingencies (Note 9) | ||
Noncontrolling interest with redemption feature | $ 0 | $ 13,372 |
Stockholders' equity: | ||
Common stock, no par value, 300,000 shares authorized as of January 31, 2016 and January 31, 2015; 114,934 shares issued and outstanding as of January 31, 2016 and 115,790 shares issued and outstanding as of January 31, 2015 | 818,683 | 832,612 |
Retained earnings | 522,846 | 451,901 |
Accumulated other comprehensive loss | (21,100) | (11,887) |
Noncontrolling interest | 0 | 228 |
Total stockholders’ equity | 1,320,429 | 1,272,854 |
Total liabilities and stockholders' equity | $ 2,064,364 | $ 2,046,008 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Allowance for doubtful accounts receivable, current | $ 3,826 | $ 4,217 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 114,934 | 115,790 |
Common stock, shares outstanding | 114,934 | 115,790 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Operating Cash Flows: | |||
Net income | $ 94,176 | $ 145,177 | $ 153,558 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant, and equipment | 36,449 | 34,336 | 34,563 |
Amortization of intangible assets, debt costs and other | 24,973 | 23,710 | 17,891 |
Stock-based compensation | 40,497 | 35,807 | 29,350 |
Deferred income taxes | 5,055 | 9,265 | 8,550 |
Changes in other long-term liabilities | (804) | 876 | (3,708) |
Equity in income of unconsolidated entities, net of dividends received | (455) | 507 | 1,290 |
Other | (696) | 85 | (11) |
Changes in operating assets and liabilities, net of effect of acquired businesses: | |||
Trade accounts receivable, net | 49,751 | (90,404) | (43,811) |
Prepaid expenses and other | (13,558) | (16,348) | (17,774) |
Term receivables, long-term | 31,672 | (34,808) | (21,285) |
Accounts payable and accrued liabilities | (39,956) | 2,481 | 4,473 |
Income taxes receivable and payable | 3,767 | 1,442 | (10,487) |
Deferred revenue | (2,275) | 26,082 | (2,896) |
Net cash provided by operating activities | 228,596 | 138,208 | 149,703 |
Investing Cash Flows: | |||
Proceeds from the sales and maturities of short-term investments | 0 | 4,124 | 3,112 |
Purchases of short-term investments | 0 | 0 | (7,820) |
Proceeds from sale of building | 2,068 | 0 | 0 |
Purchases of property, plant, and equipment | (43,336) | (48,366) | (30,761) |
Acquisitions of businesses and other intangible assets, net of cash acquired | (11,700) | (84,596) | (20,906) |
Net cash used in investing activities | (52,968) | (128,838) | (56,375) |
Financing Cash Flows: | |||
Proceeds from issuance of common stock | 32,807 | 29,990 | 53,013 |
Repurchase of common stock | (85,000) | (70,053) | (49,995) |
Tax benefit from share options exercised | 217 | 280 | 386 |
Dividends paid | (25,590) | (22,911) | (20,398) |
Net increase (decrease) in short-term borrowing | 1,190 | (2,660) | 3,748 |
Proceeds from line of credit | 25,000 | 0 | 0 |
Repayments of other borrowings | (7,268) | (3,659) | (7,762) |
Purchase of remaining noncontrolling interest in majority owned subsidiaries | (11,270) | 0 | 0 |
Proceeds (payments) for the sale of subsidiary shares from (to) noncontrolling interest | 7 | (41) | 0 |
Net cash used in financing activities | (69,907) | (69,054) | (21,008) |
Effect of exchange rate changes on cash and cash equivalents | (1,176) | (3,357) | (2,781) |
Net change in cash and cash equivalents | 104,545 | (63,041) | 69,539 |
Cash and cash equivalents at the beginning of the period | 230,281 | 293,322 | 223,783 |
Cash and cash equivalents at the end of the period | $ 334,826 | $ 230,281 | $ 293,322 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Stockholders' Equity, Total | Non Controlling Interest With Redemption Feature |
Stockholders' equity at Jan. 31, 2013 | $ 810,902 | $ 197,178 | $ 25,399 | $ 0 | $ 1,033,479 | |||
Common stock, shares outstanding at Jan. 31, 2013 | 112,902 | |||||||
Noncontrolling interest with redemption feature at Jan. 31, 2013 | $ 12,698 | |||||||
Net income (loss), including portion attributable to nonredeemable noncontrolling interest | 155,258 | 155,258 | ||||||
Less: Loss attributable to noncontrolling interest | $ (1,700) | (1,700) | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (6,596) | (6,596) | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (1,705) | |||||||
Other comprehensive income (loss) attributable to noncontrolling Interest | (5) | |||||||
Adjustment of noncontrolling interest to redemption value | (4,486) | (4,486) | (4,486) | 4,486 | ||||
Purchase of remaining noncontrolling interest in majority owned subsidiaries | 0 | |||||||
Dividends | (20,398) | (20,398) | ||||||
Stock issued under stock awards and stock purchase plans, amount | 53,013 | 53,013 | ||||||
Stock issued under stock awards and stock purchase plans, shares | 5,618 | |||||||
Stock repurchased, amount | (49,995) | (49,995) | ||||||
Stock repurchased, shares | (2,593) | |||||||
Stock compensation expense | 29,350 | 29,350 | ||||||
Stock withheld for taxes, amount | (4,717) | (4,717) | ||||||
Stock withheld for taxes, shares | (205) | |||||||
Tax benefit associated with the exercise of stock options | 386 | 386 | ||||||
Stockholders' equity at Jan. 31, 2014 | 838,939 | 327,552 | 18,803 | 0 | 1,185,294 | |||
Common stock, shares outstanding at Jan. 31, 2014 | 115,722 | |||||||
Noncontrolling interest with redemption feature at Jan. 31, 2014 | 15,479 | |||||||
Net income (loss), including portion attributable to nonredeemable noncontrolling interest | 147,139 | 29 | 147,168 | |||||
Less: Loss attributable to noncontrolling interest | (1,962) | (1,991) | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (30,690) | (30,691) | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (1,917) | (1) | ||||||
Other comprehensive income (loss) attributable to noncontrolling Interest | 46 | |||||||
Recognition of noncontrolling interest | 200 | 200 | ||||||
Adjustment of noncontrolling interest to redemption value | 121 | 121 | 121 | (121) | ||||
Purchase of remaining noncontrolling interest in majority owned subsidiaries | 0 | |||||||
Dividends | (22,911) | (22,911) | ||||||
Stock issued under stock awards and stock purchase plans, amount | 29,990 | 29,990 | 331 | |||||
Stock issued under stock awards and stock purchase plans, shares | 3,349 | |||||||
Stock repurchased, amount | (70,053) | (70,053) | (372) | |||||
Stock repurchased, shares | (3,174) | |||||||
Stock compensation expense | 35,807 | 35,807 | ||||||
Stock withheld for taxes, amount | (2,351) | (2,351) | ||||||
Stock withheld for taxes, shares | (107) | |||||||
Tax benefit associated with the exercise of stock options | 280 | 280 | ||||||
Stockholders' equity at Jan. 31, 2015 | $ 1,272,854 | 832,612 | 451,901 | (11,887) | 228 | 1,272,854 | ||
Common stock, shares outstanding at Jan. 31, 2015 | 115,790 | 115,790 | ||||||
Noncontrolling interest with redemption feature at Jan. 31, 2015 | $ 13,372 | 13,372 | ||||||
Net income (loss), including portion attributable to nonredeemable noncontrolling interest | 96,277 | (42) | 96,235 | |||||
Less: Loss attributable to noncontrolling interest | (2,101) | (2,059) | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (9,213) | (9,217) | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (2,079) | (4) | ||||||
Other comprehensive income (loss) attributable to noncontrolling Interest | 26 | |||||||
Adjustment of noncontrolling interest to redemption value | 258 | 258 | 258 | (258) | ||||
Purchase of remaining noncontrolling interest in majority owned subsidiaries | (11,270) | (182) | (182) | (11,088) | ||||
Convertible debt instrument net equity component | (13) | (13) | ||||||
Dividends | (25,590) | (25,590) | ||||||
Stock issued under stock awards and stock purchase plans, amount | 32,807 | 32,807 | 7 | |||||
Stock issued under stock awards and stock purchase plans, shares | 3,767 | |||||||
Stock repurchased, amount | (85,000) | (85,000) | ||||||
Stock repurchased, shares | (4,526) | |||||||
Stock compensation expense | 40,497 | 40,497 | ||||||
Stock withheld for taxes, amount | (2,437) | (2,437) | ||||||
Stock withheld for taxes, shares | (97) | |||||||
Tax benefit associated with the exercise of stock options | 217 | 217 | ||||||
Stockholders' equity at Jan. 31, 2016 | $ 1,320,429 | $ 818,683 | $ 522,846 | $ (21,100) | $ 0 | $ 1,320,429 | ||
Common stock, shares outstanding at Jan. 31, 2016 | 114,934 | 114,934 | ||||||
Noncontrolling interest with redemption feature at Jan. 31, 2016 | $ 0 | $ 0 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Jan. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations We are a supplier of electronic design automation systems — advanced computer software and emulation hardware systems used to automate the design, analysis, and testing of complex electro-mechanical systems, electronic hardware, and embedded systems software in electronic systems and components. We market our products and services worldwide, primarily to large companies in the communications, computer, consumer electronics, semiconductor, networking, multimedia, military and aerospace, and transportation industries. We sell and license our products through our direct sales force and a channel of distributors and sales representatives. We were incorporated in Oregon in 1981 and our common stock is traded on The NASDAQ Global Select Market under the symbol “MENT.” In addition to our corporate offices in Wilsonville, Oregon, we have sales, support, software development, and professional service offices worldwide. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The 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. We do not have off-balance sheet arrangements, financings, or other similar relationships with unconsolidated entities or other persons, also known as special purpose entities. In the ordinary course of business, we lease certain real properties, primarily field sales offices, research and development facilities, and equipment, as described in Note 9. “Commitments and Contingencies.” Foreign Currency Translation Local currencies are the functional currencies for our foreign subsidiaries except for certain subsidiaries in Ireland, Singapore, Egypt, and the Netherlands Antilles where the United States (U.S.) dollar is used as the functional currency. We translate assets and liabilities of foreign operations, excluding certain subsidiaries in Ireland, Singapore, Egypt, and the Netherlands Antilles to U.S. dollars at current rates of exchange and revenues and expenses using weighted average rates. We include foreign currency translation adjustments in stockholders’ equity as a component of accumulated other comprehensive income. We maintain the accounting records for certain subsidiaries in Ireland, Singapore, Egypt, and the Netherlands Antilles in the U.S. dollar and accordingly no translation is necessary. We include foreign currency transaction gains and losses as a component of other income (expense), net. Use of Estimates U.S. generally accepted accounting principles require management to make estimates and assumptions that affect the reported amount of assets, liabilities, and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include revenue recognition, valuation of trade accounts receivable, income taxes, business combinations, goodwill, intangible assets, long-lived assets, special charges, and stock-based compensation. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances. We adjust estimates and assumptions as facts and circumstances dictate. Actual results could differ from these estimates. Any changes in estimates will be reflected in the financial statements in future periods. Investments We classify investments with original maturities of 90 days or less as cash equivalents. Short-term investments include certificates of deposit with original maturities in excess of 90 days and less than one year at the time of purchase. Long-term investments, included in other assets on the accompanying consolidated balance sheets, include investments with maturities in excess of one year from the balance sheet date and equity securities. We determine the appropriate classification of our investments at the time of purchase. For investments in equity securities, we use the equity method of accounting when our investment gives us the ability to exercise significant influence over the operating and financial policies of the investee. Under the equity method, we currently record our share of earnings or losses as a component of other income (expense), net, equal to our proportionate share of the earnings or losses of the investee. Investments in equity securities of private companies without a readily determinable fair value, where we do not exercise significant influence over the investee, are recorded using the cost method of accounting, carrying the investment at historical cost. We periodically evaluate the fair value of all investments to determine if an other-than-temporary decline in value has occurred. Investment in Frontline We have a 50% interest in a joint venture, Frontline P.C.B. Solutions Limited Partnership (Frontline), a provider of engineering software solutions for the printed circuit board industry. We use the equity method of accounting for Frontline, which results in reporting our investment as one line within other assets in the consolidated balance sheet and our share of earnings as one line in the consolidated statement of income. Frontline reports on a calendar year basis, therefore, we record our interest in the earnings of Frontline on a one-month lag. Although we do not exert control, we actively participate in regular and periodic activities with respect to Frontline such as budgeting, business planning, marketing, and direction of research and development projects. Accordingly, we have included our interest in the earnings of Frontline as a component of operating income. Property, Plant, and Equipment, Net We state property, plant, and equipment at cost and capitalize expenditures for additions to property, plant, and equipment. We expense maintenance and repairs, which do not improve or extend the life of the respective asset, as incurred. We compute depreciation on a straight-line basis as follows: Estimated Useful Lives (in years) Buildings 40 Land improvements 20 Computer equipment and furniture 3 - 5 Leasehold improvements (1) 3 - 10 (1) Amortized over the shorter of the lease term or estimated life. A summary of property, plant, and equipment, net is as follows: As of January 31, 2016 2015 Computer equipment and furniture $ 351,982 $ 334,817 Buildings and building equipment 115,312 110,854 Land and improvements 21,489 21,650 Leasehold improvements 41,906 38,035 Property, plant, and equipment, gross 530,689 505,356 Less: accumulated depreciation and amortization (348,597 ) (334,619 ) Property, plant, and equipment, net $ 182,092 $ 170,737 Goodwill and Intangible Assets Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible assets and other intangible assets acquired in our business combinations. Goodwill is not amortized, but is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the fair value of our reporting unit may be less than the carrying amount. We operate as a single reporting unit for purposes of goodwill evaluation. We completed our annual goodwill impairment test as of January 31, 2016 , 2015 , and 2014 . For purposes of assessing the impairment of goodwill, we estimated the fair value of our reporting unit using its market capitalization as the best evidence of fair value and compared that fair value to the carrying value of our reporting unit. Our reporting unit passed this step of the goodwill analysis. There were no indicators of impairment to goodwill during fiscal years 2016 , 2015 , and 2014 and accordingly, no impairment charges were recognized during these fiscal periods. Intangible assets, net primarily includes purchased technology, in-process research and development, backlog, tradenames, and customer relationships acquired in our business combinations. We review long-lived assets, including intangible assets with definite lives, for impairment whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. We assess the recoverability of our long-lived assets by determining whether the carrying values of the asset groups are greater than the forecasted undiscounted net cash flows of the related asset group. If we determine the assets are impaired, we write down the assets to their estimated fair value. We determine fair value based on forecasted discounted net cash flows or appraised values, depending upon the nature of the assets. In the event we determine our long-lived assets are impaired, we would make an adjustment resulting in a charge for the write-down in the period that the determination was made. There were no indicators of impairment to long-lived assets during fiscal years 2016 , 2015 , and 2014 and accordingly, no impairment charges were recognized during these fiscal periods. We amortize purchased technology over three to five years to system and software cost of revenues and other intangible asset costs generally over two to five years to operating expenses. We amortize capitalized in-process research and development (resulting from acquisitions) upon completion of projects to cost of revenues over the estimated useful life of the technology. Alternatively, if we abandon a project, in-process research and development costs are expensed to operating expense when that determination is made. Total purchased technology and other intangible asset amortization expense was as follows: Year ended January 31, 2016 2015 2014 Purchased technology and other intangible asset amortization expense $ 16,019 $ 15,265 $ 9,828 As of January 31, 2016 , the carrying value of goodwill and intangible assets was as follows: As of January 31, 2016 2015 Goodwill $ 606,842 $ 599,929 Purchased technology and in-process research and development, gross $ 158,102 $ 155,124 Less: accumulated amortization (138,375 ) (131,143 ) Purchased technology and in-process research and development, net $ 19,727 $ 23,981 Other intangible assets, gross $ 105,162 $ 100,384 Less: accumulated amortization (87,443 ) (78,788 ) Other intangible assets, net $ 17,719 $ 21,596 The following table summarizes goodwill activity: Balance as of January 31, 2014 $ 549,044 Acquisitions 57,476 Earnouts 13 Foreign exchange (6,604 ) Balance as of January 31, 2015 $ 599,929 Acquisitions 8,500 Foreign exchange (1,587 ) Balance as of January 31, 2016 $ 606,842 We estimate the aggregate amortization expense related to purchased technology and other intangible assets will be as follows: Fiscal years ending January 31, 2017 $ 12,889 2018 11,316 2019 9,559 2020 3,077 2021 548 Thereafter 57 Aggregate amortization expense $ 37,446 Noncontrolling Interest with Redemption Feature In September 2015 we exercised our call option to purchase the remaining noncontrolling interest of Calypto Design Systems, Inc. for $11,088 . After this transaction, we own 100% of Calypto Design Systems, Inc. We had been party to an agreement that provided us a call option to acquire the noncontrolling interest, and provided the noncontrolling interest holders a put option to sell their interests to us, at prices based on formulas defined in the agreement. Prior to our purchase, the noncontrolling interest was adjusted for the redemption feature based on the put option price formula and presented on the consolidated balance sheet under the caption “Noncontrolling interest with redemption feature.” Because the exercise of the put option was outside of our control, we presented this interest outside of stockholders’ equity. The noncontrolling interest with redemption feature was recognized at the greater of: i. The calculated redemption feature put value as of the balance sheet date; or ii. The initial noncontrolling interest value adjusted for the noncontrolling interest holders' share of: a. cumulative impact of net income (loss); and b. other changes in accumulated other comprehensive income. Increases (or decreases to the extent they offset previous increases) in the calculated redemption feature put value were recorded directly to retained earnings as if the balance sheet date were also the redemption date. Changes in the redemption feature put value also resulted in an adjustment to net income attributable to shareholders in the calculation of basic and diluted net income per share. The results of the majority-owned subsidiary were presented in our consolidated results with an adjustment reflected on the face of our statement of income and the face of our statement of comprehensive income for the noncontrolling investors' interest in the results of the subsidiary. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, we recognize deferred income taxes for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and tax balances of existing assets and liabilities. We calculate deferred tax assets and liabilities using enacted laws and tax rates that will be in effect when we expect the differences to reverse and be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized for deductible temporary differences, net operating loss carryforwards, and credit carryforwards if it is more likely than not that the tax benefits will be realized. Deferred tax assets are not recorded, however, in the following circumstances: • A deferred tax asset is not recorded for net operating loss carryforwards created by excess tax benefits from the exercise of stock options. To the extent we achieve a reduction in the amount of tax that would be payable due to the utilization of such net operating loss carryforwards or otherwise, we may increase stockholders’ equity. The historical and current deferred tax assets related to excess tax benefits from stock option exercises are excluded in the presentation of our financial results. • Deferred tax assets are not recorded to the extent they are attributed to uncertain tax positions. For deferred tax assets that cannot be recognized under the more-likely-than-not-standard, we have established a valuation allowance. In the event we determine that we are able to realize our deferred tax assets in the future in excess of our net recorded amount, we would reverse the valuation allowance associated with the deferred tax assets in the period the determination was made. Also, if we determine that we are not able to realize all or part of our net deferred tax assets in the future, we would record a valuation allowance on the net deferred tax assets with a corresponding increase in expense in the period the determination was made. We are subject to income taxes in the U.S. and in numerous foreign jurisdictions, and in the ordinary course of business, there are many transactions and calculations where the ultimate tax determination is uncertain. While we believe the positions we have taken are appropriate, we have reserves for taxes to address potential exposures involving tax positions that are being challenged or that could be challenged by the tax authorities. We record a benefit on a tax position when we determine that it is more likely than not that the position is sustainable upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions that are more likely than not to be sustained, we measure the tax position at the largest amount of benefit that has a greater than 50 percent likelihood of being realized when it is effectively settled. We review the tax reserves as circumstances warrant and adjust the reserves as events occur that affect our potential liability for additional taxes. Business Combinations For each business we acquire, the excess of the fair value of the consideration transferred over the fair value of the net tangible assets acquired and net tangible liabilities assumed is allocated to various identifiable intangible assets and goodwill. Identifiable intangible assets typically consist of purchased technology and customer-related intangibles, which amortize to expense over their useful lives. Goodwill, representing the excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets, is not amortized. See additional discussion in Note 4 . " Business Combinations ." Derivative Financial Instruments We are exposed to fluctuations in foreign currency exchange rates and have established a foreign currency hedging program to hedge certain foreign currency forecasted transactions and exposures from existing assets and liabilities. Our derivative instruments consist of foreign currency exchange contracts. By using derivative instruments, we subject ourselves to credit risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, our credit risk will equal the fair value of the derivative instrument. Generally, when the fair value of our derivative contracts is a net asset, the counterparty owes us, thus creating a receivable risk. We minimize counterparty credit risk by entering into derivative transactions with major financial institutions and, as such, we do not expect material losses as a result of default by our counterparties. We execute foreign currency transactions in exchange-traded or over-the-counter markets for which quoted prices exist. We do not hold or issue derivative financial instruments for speculative or trading purposes. To manage the foreign currency volatility, we aggregate exposures on a consolidated basis to take advantage of natural offsets. The primary exposures are the Japanese yen, where we are in a long position, and the euro, where we are in a short position. Most large European revenue contracts are denominated and paid to us in U.S. dollars while our European expenses, including substantial research and development operations, are paid in local currency causing a short position in the euro. In addition, we experience greater inflows than outflows of Japanese yen as almost all Japanese-based customers contract and pay us in Japanese yen. While these exposures are aggregated on a consolidated basis to take advantage of natural offsets, substantial exposures remain. To partially offset the net exposures in the euro and the Japanese yen, we enter into foreign currency exchange contracts of less than one year which are designated as cash flow hedges. Any gain or loss on Japanese yen contracts is classified as product revenue when the hedged transaction occurs while any gain or loss on euro contracts is classified as operating expense when the hedged transaction occurs. We use an income approach to determine the fair value of our foreign currency contracts and record them at fair value utilizing observable market inputs at the measurement date. We report the fair value of derivatives in other receivables, if the balance is an asset, or accrued liabilities, if the balance is a liability, in the consolidated balance sheet. The accounting for changes in the fair value of a derivative depends upon whether it has been designated in a hedging relationship and on the type of hedging relationship. To qualify for designation in a hedging relationship, specific criteria must be met and the appropriate documentation maintained. Hedging relationships, if designated, are established pursuant to our risk management policy and are initially and regularly evaluated to determine whether they are expected to be, and have been, highly effective hedges. We formally document all relationships between foreign currency exchange contracts and hedged items as well as our risk management objectives and strategies for undertaking various hedge transactions. All hedges designated as cash flow hedges are linked to forecasted transactions and we assess, both at inception of the hedge and on an ongoing basis, the effectiveness of the foreign currency exchange contracts in offsetting changes in the cash flows of the hedged items. We report the effective portions of the net gains or losses on these foreign currency exchange contracts as a component of accumulated other comprehensive income in stockholders’ equity. Accumulated other comprehensive income associated with hedges of forecasted transactions is reclassified to the consolidated statement of income in the same period the forecasted transaction occurs or the hedge is no longer effective. We expect substantially all of the hedge balance in accumulated other comprehensive income to be reclassified to the consolidated statement of income within the next twelve months. We enter into foreign currency exchange contracts to offset the earnings impact relating to the variability in exchange rates on certain short-term monetary assets and liabilities denominated in non-functional currencies. We do not designate these foreign currency contracts as hedges. The change in fair value of these derivative instruments is reported each period in other income (expense), net, in our consolidated statement of income. Revenue Recognition We report revenue in two categories based on how revenue is generated: (i) system and software and (ii) service and support. System and software revenues – We derive system and software revenues from the sale of licenses of software products and emulation and other hardware systems, including finance fee revenues from our long-term installment receivables resulting from product sales. We primarily license our products using two different license types: 1. Term licenses – We use this license type primarily for software sales. This license type provides the customer with the right to use a fixed list of software products for a specified time period, typically three to four years, with payments spread over the license term, and does not provide the customer with the right to use the products after the end of the term. Term license arrangements may allow the customer to share products between multiple locations and remix product usage from the fixed list of products at regular intervals during the license term. We generally recognize product revenue from term license arrangements upon product delivery and start of the license term. In a term license agreement where we provide the customer with rights to unspecified or unreleased future products, we recognize revenue ratably over the license term. 2. Perpetual licenses – We use this license type for software and emulation hardware system sales. This license type provides the customer with the right to use the product in perpetuity and typically does not provide for extended payment terms. We generally recognize product revenue from perpetual license arrangements upon product delivery assuming all other criteria for revenue recognition have been met. We include finance fee revenues from the accretion of the discount on long-term installment receivables in system and software revenues. Finance fees were approximately 2.0% of total revenues for fiscal years 2016, 2015, and 2014. Service and support revenues – We derive service and support revenues from software and hardware post-contract maintenance or support services and professional services, which include consulting, training, and other services. We recognize support services revenue ratably over the service term. We record professional services revenue as the services are provided to the customer. We determine whether product revenue recognition is appropriate based upon the evaluation of whether the following four criteria have been met: 1. Persuasive evidence of an arrangement exists – Generally, we use either a customer signed contract or qualified customer purchase order as evidence of an arrangement for both term and perpetual licenses. For professional service engagements, we generally use a signed professional services agreement and a statement of work to evidence an arrangement. Sales through our distributors are evidenced by an agreement governing the relationship, together with binding purchase orders from the distributor on a transaction-by-transaction basis. 2. Delivery has occurred – We generally deliver software and the corresponding access keys to customers electronically. Electronic delivery occurs when we provide the customer access to the software. We may also deliver the software on a digital versatile disc (DVD). With respect to emulation hardware systems, we transfer title to the customer upon shipment. Our software license and emulation hardware system agreements generally do not contain conditions for acceptance. 3. Fee is fixed or determinable – We assess whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. We have established a history of collecting under an original contract with installment terms without providing concessions on payments, products, or services. Additionally, for installment contracts, we determine that the fee is fixed or determinable if the arrangement has a payment schedule that is within the term of the license and the payments are collected in equal or nearly equal installments, when evaluated on a cumulative basis. If the fee is not deemed to be fixed or determinable, we recognize revenue as payments become due and payable. 4. Collectibility is probable – To recognize revenue, we must judge collectibility of the arrangement fees on a customer-by-customer basis pursuant to our credit review process. We typically sell to customers with whom there is a history of successful collection. We evaluate the financial position and a customer’s ability to pay whenever an existing customer purchases new products, renews an existing arrangement, or requests an increase in credit terms. For certain industries for which our products are not considered core to the industry or the industry is generally considered troubled, we impose higher credit standards. If we determine that collectibility is not probable based upon our credit review process or the customer’s payment history, we recognize revenue as payments are received. Multiple element arrangements involving software licenses – For multiple element arrangements involving software and other software-related deliverables, vendor-specific objective evidence of fair value (VSOE) must exist to allocate the total fee among all delivered and non-essential undelivered elements of the arrangement. If undelivered elements of the arrangement are essential to the functionality of the product, we defer revenue until the essential elements are delivered. If VSOE does not exist for one or more non-essential undelivered elements, we defer revenue until such evidence exists for the undelivered elements, or until all elements are delivered, whichever is earlier. If VSOE of all non-essential undelivered elements exists but VSOE does not exist for one or more delivered elements, we recognize revenue using the residual method. Under the residual method, we defer revenue related to the undelivered elements based upon VSOE and we recognize the remaining portion of the arrangement fee as revenue for the delivered elements, assuming all other criteria for revenue recognition are met. We base our VSOE for certain elements of an arrangement upon the pricing in comparable transactions when the element is sold separately. We primarily base our VSOE for term and perpetual support services upon customer renewal history where the services are sold separately. We also base VSOE for professional services and installation services for emulation hardware systems upon the price charged when the services are sold separately. Multiple element arrangements involving hardware – For multiple element arrangements involving our emulation hardware systems, we allocate revenue to each element based on the relative selling price of each deliverable. In order to meet the separation criteria to allocate revenue to each element we must determine the standalone selling price of each element using a hierarchy of evidence. The authoritative guidance requires that, in the absence of VSOE or third-party evidence, a company must develop an estimated selling price (ESP). ESP is defined as the price at which the vendor would transact if the deliverable was sold by the vendor regularly on a standalone basis. A company should consider market conditions as well as entity-specific factors when estimating a selling price. We base our ESP for certain elements in arrangements on either costs incurred to manufacture a product plus a reasonable profit margin or standalone sales to similar customers. In determining profit margins, we consider current market conditions, pricing strategies related to the class of customer, and the level of penetration we have with the customer. In other cases, we may have limited sales on a standalone basis to the same or similar customers and/or guaranteed pricing on future purchases of the same item. Software Development Costs We capitalize software development costs beginning when a product’s technological feasibility has been established by either completion of a detail program design or completion of a working model of the product and ending when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of our products has historically been of short duration. As a result, those capitalizable software development costs are insignificant and have been charged to research and development expense in all periods in the accompanying consolidated statements of income. We did not capitalize any acquired developed technology during fiscal years 2016 and 2015 . We capitalized $3,698 of acquired developed technology during fiscal year 2014. Advertising Costs We expense all advertising costs as incurred. Advertising expense is included in marketing and selling expense in the accompanying consolidated statement of income as follows: Year ended January 31, 2016 2015 2014 Advertising expense $ 3,683 $ 2,985 $ 2,654 Special Charges We record restructuring charges in connection with our plans to better align our cost structure with projected operations in the future. We record restructuring charges in connection with employee rebalances based on estimates of the expected costs associated with severance benefits. If the actual cost incurred exceeds the estimated cost, additional expense is recognized. If the actual cost is less than the estimated cost, a benefit is recognized. We also record within special charges, expenses incurred related to certain litigation costs that are unusual in nature due to the significance in variability of timing and amount. Special Charges may also include costs associated with acquisitions, excess facility costs and asset related charges. See additional discussion in Note 15 . " Special Charges ." 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 restricted stock units, common shares issuable upon exercise of employee stock options, purchase rights from employee stock purchase plans (ESPPs), and common shares issuable upon conversion of the convertible subordinated debentures using the treasury stock method, if dilutive. Net income used to compute basic and diluted net income per share is increased or reduced for the adjustment of the noncontrolling interest with redemption feature to its calculated redemption value. See additional discussion in Note 13 . “ Net Income Per Share .” Accounting for Stock-Based Compensation We measure stock-based compensation cost at the grant date, based on the fair value of the award, and recognize the expense on a straight-line basis over the employee’s requisite service period. For options and stock awards that vest fully on any termination of service, there is no requisite service period and consequently we recognize the expense fully in the period in which the award is granted. We present the excess tax benefit from the exercise of stock options as a financing activity in the statement of cash flows when the benefit is utilized. We have elected to compute the timing of excess tax benefits from the exercise of stock options on the “with-and-without” approach. Under this approach, we do not record an excess tax benefit until such time as a cash tax benefit is recognized. Further, we include the impact of these excess tax benefits in the calculation of indirect tax attributes, such as the research and development credit and the domestic manufacturing deduction. We compute the pool of excess tax benefits available to offset any future shortfalls in the tax benefits actually realized on exercises of stock options as a single pool for employees and non-employees. See a further description of how we estimate the fair value of stock options and purchase rights under our ESPPs in Note 11 . “ Employee Stock and Savings Plans .” Transfer of Financial Assets We finance certain software li |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The following table presents information about financial liabilities measured at fair value on a recurring basis as of January 31, 2016 : Fair Value Level 1 Level 2 Level 3 Contingent consideration $ 3,749 $ — $ — $ 3,749 The following table presents information about financial liabilities measured at fair value on a recurring basis as of January 31, 2015 : Fair Value Level 1 Level 2 Level 3 Contingent consideration $ 4,563 $ — $ — $ 4,563 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. 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. The short-term portion of the total recorded contingent consideration is included in accrued and other liabilities and the long-term portion of the total recorded contingent consideration is included in other long-term liabilities on our consolidated balance sheet. The following table summarizes the total recorded contingent consideration: As of January 31, 2016 2015 Contingent consideration, short-term $ 1,460 $ 1,515 Contingent consideration, long-term 2,289 3,048 Total contingent consideration $ 3,749 $ 4,563 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 January 31, 2016 encompasses the following significant unobservable inputs: Unobservable Inputs Range Total estimated contingent consideration $1,464 - $4,422 Discount rate 9.5% - 16.0% Timing of cash flows (in years) 0 - 3 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 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, 2014 $ 4,571 New contingent consideration 1,450 Payments (1,589 ) Changes in fair value (11 ) Interest accretion 142 Balance as of January 31, 2015 $ 4,563 New contingent consideration — Payments (1,525 ) Changes in fair value 586 Interest accretion 125 Balance as of January 31, 2016 $ 3,749 The following table summarizes the fair value and carrying value of our 4.00% Debentures: As of January 31, 2016 2015 Fair value of 4.00% Debentures $ 255,487 $ 310,173 Carrying value of 4.00% Debentures $ 234,888 $ 227,386 We based the fair value of our 4.00% Debentures on the quoted market price at the balance sheet date. Our notes are not actively traded and the quoted market price is derived from observable inputs including our stock price, stock volatility, and interest rate (Level 2). We believe the carrying value of Other Notes Payable of $5,188 at January 31, 2016 approximated fair value. Of the total carrying value of notes payable, none was classified as current on our consolidated balance sheet as of January 31, 2016 and January 31, 2015 . See additional discussion of notes payable in Note 7 . " Notes Payable ." 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. |
Business Combinations (Notes)
Business Combinations (Notes) | 12 Months Ended |
Jan. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Business Combinations Acquisitions during the twelve months ended January 31, 2016 Acquisitions for the year ended January 31, 2016 consisted of two privately-held companies, both of which were accounted for as business combinations. These acquisitions were not material individually or in the aggregate. Acquisitions during the twelve months ended January 31, 2015 Total Consideration Net Tangible Assets Acquired Identifiable Intangible Assets Acquired Goodwill Berkeley Design Automation, Inc. $ 51,303 $ 2,335 $ 24,770 $ 24,198 Other 49,315 876 15,160 33,279 Total $ 100,618 $ 3,211 $ 39,930 $ 57,477 On March 20, 2014 , we acquired for cash all of the outstanding common shares of Berkeley Design Automation, Inc. (BDA), a leader in nanometer analog/mixed-signal and radio frequency circuit verification. The acquisition of BDA aligns with our goal to deliver technologies with superior performance and automation for the growing challenges of analog/mixed-signal verification. The total cash consideration consisted of $46,832 paid during the twelve months ended January 31, 2015 and a deferred payment valued at $4,471 . The identified intangible assets acquired consisted of purchased technology with a fair value of $11,200 and other intangibles with a fair value of $13,570 . The fair values of the identified intangible assets were valued using an income approach with significant unobservable inputs (Level 3). The significant unobservable inputs include annual revenue derived from each identified intangible asset and a selected discount rate of 15% . We are amortizing purchased technology to cost of revenues over five years and other intangibles to operating expenses over two to five years. The goodwill created by the transaction is not deductible for tax purposes. Key factors that make up the goodwill created by the transaction include expected synergies from the combination of operations and products and the knowledge and experience of the acquired workforce. Other acquisitions for the twelve months ended January 31, 2015 consisted of four privately-held companies which were accounted for as business combinations. These acquisitions were not material individually or in the aggregate. The separate results of operations for the acquisitions during the twelve months ended January 31, 2015 were not material, individually or in the aggregate, compared to our overall results of operations and accordingly pro forma financial statements of the combined entities have been omitted. |
Term Receivable and Trade Accou
Term Receivable and Trade Accounts Receivable Balances | 12 Months Ended |
Jan. 31, 2016 | |
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. Balances for term agreements that are due within one year of the balance sheet date are included in trade accounts receivable, net and balances that are due more than one year from the balance sheet date are included 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 to system and software revenues over the period in which payments are made and balances are outstanding, using the effective interest method. 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 accounts receivable and term receivable balances were as follows: As of January 31, 2016 2015 Trade accounts receivable $ 176,021 $ 208,996 Term receivables, short-term $ 317,188 $ 337,626 Term receivables, long-term $ 268,657 $ 301,862 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 of the balance sheet date. Billings for term agreements typically occur thirty 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 billed beyond one year from the balance sheet date. 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 at the time of assessment. For customers that do not have an S&P credit rating, we base our credit risk assessment on results provided in the customer's most recent financial statements at the time of assessment. 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 January 31, 2016 2015 S&P credit rating: AAA+ through BBB- $ 195,764 $ 192,430 BB+ and lower 22,520 31,939 218,284 224,369 Internal credit assessment 50,373 77,493 Total long-term term receivables $ 268,657 $ 301,862 We maintain allowances for doubtful accounts on trade accounts receivable and term receivables, long-term 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 customers, the current business environment, and historical experience. If these factors change or circumstances related to specific customers change, we adjust the recoverability estimates of the receivables, resulting in either additional selling expense or a reduction in selling expense in the period the determination is made. We reduced our allowance for doubtful accounts during the year ended January 31, 2015 by $1,691 , to reflect a change in estimate of our unspecified reserves resulting from sustained low write-off experience and strong collections. The adjustment was recorded in marketing and selling expense in our statement of income. The following shows the change in allowance for doubtful accounts for the years ended January 31, 2016 , 2015 , and 2014 : Allowance for doubtful accounts Beginning balance Expense adjustment Other deductions ( 1) Ending balance Year ended January 31, 2016 $ 4,217 $ (349 ) $ (42 ) $ 3,826 Year ended January 31, 2015 $ 5,469 $ (988 ) $ (264 ) $ 4,217 Year ended January 31, 2014 $ 5,331 $ 517 $ (379 ) $ 5,469 (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. 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. We sold the following receivables to financing institutions on a non-recourse basis and recognized the following gain on the sale of those receivables: Year ended January 31, 2016 2015 2014 Net proceeds $ 42,661 $ 22,572 $ 22,943 Trade receivables, short-term 16,344 12,715 11,705 Term receivables, long-term 27,770 10,461 11,912 Total receivables sold 44,114 23,176 23,617 Discount on sold receivables (1,453 ) (604 ) (674 ) Unaccreted interest on sold receivables 2,723 922 890 Gain on sale of receivables $ 1,270 $ 318 $ 216 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Jan. 31, 2016 | |
Short-term Debt [Abstract] | |
Short-term Borrowings | Short-Term Borrowings Short-term borrowings consisted of the following: As of January 31, 2016 2015 Senior revolving credit facility $ 25,000 $ — Collections of previously sold accounts receivable 7,568 5,917 Other borrowings 881 1,311 Short-term borrowings $ 33,449 $ 7,228 We have a syndicated, senior, unsecured, revolving credit facility, which expires on January 9, 2020 . 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. 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. The revolving credit facility contains certain financial and other covenants, including the following: • Our adjusted quick ratio (ratio of the sum of cash and cash equivalents, short-term investments, and net current receivables to total current liabilities) shall not be less than 1.00 ; • Our tangible net worth (stockholders' equity less goodwill and other intangible assets) must exceed the calculated required tangible net worth as defined in the credit agreement; • Our leverage ratio (ratio of total liabilities less subordinated debt to the sum of subordinated debt and tangible net worth) shall be less than 2.00 ; • Our senior leverage ratio (ratio of total debt less subordinated debt to the sum of subordinated debt and tangible net worth) shall not be greater than 0.90 ; and • Our minimum cash and accounts receivable ratio (ratio of the sum of cash and cash equivalents, short-term investments, and 42.0% of net current accounts receivable, to outstanding credit agreement borrowings) shall not be less than 1.25 . The revolving credit facility limited the aggregate amount we could pay for dividends and repurchases of our stock over the term of the facility to $50,000 plus 70% of our cumulative net income for periods after January 31, 2011. As of January 31, 2016 , $112,038 was available for common stock repurchases or dividend payments under this limit. As described in Note 21 , " Subsequent Events ", on February 24, 2016 the revolving credit facility was amended to increase the limit on the aggregate amount we can pay for dividends and repurchases of our common stock to $200,000 plus 70% of our cumulative net income for periods ending after February 1, 2016. We were in compliance with all financial covenants as of January 31, 2016 . 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 | 12 Months Ended |
Jan. 31, 2016 | |
Notes Payable [Abstract] | |
Notes Payable | Notes Payable Notes payable consist of the following: As of January 31, 2016 2015 4.00% Debentures $ 234,888 $ 227,386 Other 5,188 — Notes payable $ 240,076 $ 227,386 Our 4.00% Debentures are due in 2031 , but we may be required to repay them earlier under the conversion and redemption provisions described below. Annual maturities of our notes payable are scheduled as follows: Fiscal years ending January 31, 2019 $ 2,000 2020 3,188 Thereafter 252,957 Total $ 258,145 4.00% Debentures In April 2011 , we issued $253,000 of 4.00% Debentures in a private placement pursuant to the Securities and Exchange Commission 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 unsecured obligations. Each one thousand dollars in principal amount of the 4.00% Debentures is currently convertible, under certain circumstances, into 49.8058 shares of our common stock (equivalent to a conversion price of $20.08 per share). The initial conversion rate for the 4.00% Debentures was 48.6902 shares of our common stock for each one thousand dollars in principal amount (equivalent to a conversion price of $20.54 per share). The conversion rate is adjusted because we declare and pay quarterly cash dividends, beginning in the first quarter of fiscal year 2014 . The 4.00% Debentures are convertible, under certain circumstances, into shares of our common stock at the conversion rate noted above. The circumstances for conversion include: • The market price of our common stock exceeding 120% of the conversion price, or $24.09 per share as of January 31, 2016 , 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. During the fiscal quarter ended October 31, 2015 , the 4.00% Debentures were convertible at the option of the holder as the market price of our common stock exceeded 120% of the conversion price for at least 20 of the last 30 trading days of the previous quarter. Holders of $43 principal amount of 4.00% Debentures requested conversion during the fiscal quarter ended October 31, 2015 , and were paid the conversion value fully in cash during the following quarter. As of January 31, 2016 , none of the conditions allowing the holders of the 4.00% Debentures to convert the 4.00% Debentures into shares of our common stock were met. The determination of whether or not the 4.00% Debentures are convertible is performed at each balance sheet date and may change from quarter to quarter. 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. 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 100.000 % The holders, at their option, may redeem the 4.00% Debentures 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 allowing for settlement of the debt 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, unamortized debt issuance costs, net carrying amount of the liability component, and carrying amount of the equity component of the 4.00% Debentures are as follows: As of January 31, 2016 2015 Principal amount $ 252,957 $ 253,000 Unamortized debt discount (16,007 ) (22,600 ) Unamortized debt issuance costs (2,062 ) (3,014 ) Net carrying amount of the liability component $ 234,888 $ 227,386 Equity component, net of debt issuance costs $ 42,518 $ 42,531 The unamortized debt discount and debt issuance costs amortize to interest expense using the effective interest method through March 2018. We recognized the following amounts in interest expense in the consolidated statement of operations related to the 4.00% Debentures: Year ended January 31, 2016 2015 2014 Interest expense at the contractual interest rate $ 10,117 $ 10,120 $ 10,120 Amortization of debt discount $ 6,593 $ 6,139 $ 5,715 Amortization of debt issuance costs $ 952 $ 952 $ 952 The effective interest rate on the 4.00% Debentures was 7.25% for fiscal years 2016 , 2015 , and 2014 . Other Notes Payable In February 2015 , we issued a subordinated note payable as part of a business combination. The principal amount of $3,188 was outstanding as of January 31, 2016 . The note bears interest at a rate of 4.0% and is due in full on February 25, 2019 . In September 2015 , we issued a subordinated note payable as part of a business combination. The principal amount of $2,000 was outstanding as of January 31, 2016 . The note bears interest at a rate of 4.0% and is due in full on September 8, 2018 . |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Domestic and foreign pre-tax income was as follows: Year ended January 31, 2016 2015 2014 Domestic $ (25,971 ) $ (2,991 ) $ (754 ) Foreign 144,900 170,749 163,822 Total pre-tax income $ 118,929 $ 167,758 $ 163,068 The provision for income taxes was as follows: Year ended January 31, 2016 2015 2014 Current: Federal $ 734 $ (223 ) $ (366 ) State 199 444 355 Foreign 17,994 13,677 6,585 Total current 18,927 13,898 6,574 Deferred: Federal and state 4,402 7,687 1,333 Foreign 1,424 996 1,603 Total deferred 5,826 8,683 2,936 Total provision for income taxes $ 24,753 $ 22,581 $ 9,510 Actual income tax expense is different from that which would have been computed by applying the statutory U.S. federal income tax rate to our income before income tax. A reconciliation of income tax expense as computed at the U.S. federal statutory income tax rate to the provision for income taxes is as follows: Year ended January 31, 2016 2015 2014 Federal tax, at statutory rate $ 41,626 $ 58,725 $ 57,074 State tax, net of federal benefit (60 ) 900 355 Impact of international operations including withholding taxes and other reserves 7,143 (27,042 ) (46,632 ) Repatriation of foreign subsidiary earnings 354 21,969 20,367 Foreign tax credits (2,382 ) (5,143 ) (5,489 ) Tax credits (excluding foreign tax credits) (11,539 ) (8,089 ) (12,571 ) Amortization of deferred charge (167 ) 1,168 (2,311 ) Change in valuation allowance (21,055 ) (26,443 ) (5,929 ) Stock-based compensation expense 3,402 2,929 2,593 Non-deductible meals and entertainment 1,177 1,238 1,087 Other, net 6,254 2,369 966 Provision for income taxes $ 24,753 $ 22,581 $ 9,510 The tax effects of temporary differences and carryforwards, which gave rise to significant portions of deferred tax assets and liabilities, were as follows: As of January 31, 2016 2015 Deferred tax assets: Reserves and allowances $ 12,954 $ 11,188 Accrued expenses not currently deductible 12,446 21,475 Stock-based compensation expense 8,259 6,988 Net operating loss carryforwards 24,138 34,618 Tax credit carryforwards 87,443 74,235 Purchased technology and other intangible assets 4,219 3,047 Deferred revenue 4,541 2,002 Other, net 8,394 6,762 Total gross deferred tax assets 162,394 160,315 Less valuation allowance (63,554 ) (91,956 ) Deferred tax assets 98,840 68,359 Deferred tax liabilities: Intangible assets (13,163 ) (12,976 ) Undistributed foreign earnings (87,390 ) (50,163 ) Convertible debt (6,322 ) (8,918 ) Depreciation of property, plant, and equipment (1,715 ) (997 ) Deferred tax liabilities (108,590 ) (73,054 ) Net deferred tax liabilities $ (9,750 ) $ (4,695 ) For fiscal year 2016, all deferred tax assets and liabilities are presented in our balance sheet in other assets and other long-term liabilities respectively. For fiscal year 2015, only long-term deferred tax assets and liabilities are presented in our balance sheet in other assets and other long-term liabilities, respectively. We early adopted ASU 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes, effective January 31, 2016 on a prospective basis. This ASU requires that deferred tax assets and liabilities be classified as noncurrent in a statement of financial position. No prior periods were retrospectively adjusted. As of January 31, 2016 , we had the following foreign and U.S. Federal and state carryforwards for income tax return purposes: Credit or carryforward As of January 31, 2016 Expiration Federal credits and carryforwards: Research and experimentation credit carryforward $ 88,987 Fiscal years 2019 - 2036 Net operating loss carryforward $ 120,030 Fiscal years 2020 - 2036 Foreign tax credits $ 19,433 Fiscal years 2017 - 2026 Alternative minimum tax credits $ 2,682 No expiration Childcare credits $ 1,843 Fiscal years 2023 - 2036 State income tax credits and carryforwards: Net operating loss carryforward $ 202,389 Fiscal years 2017 - 2036 Research and experimentation $ 21,842 Fiscal years 2017 - 2031 Miscellaneous $ 1,038 Various Foreign net operating loss carryforwards $ 20,093 Generally indefinite Tax attributes created by, and associated with, excess tax benefits from the exercise of stock options are not recorded as deferred tax assets. To the extent such attributes are utilized, we may increase stockholders’ equity. Our deferred tax assets related to net operating loss carryforwards created by excess tax benefits from stock options have been reduced by $48,591 as of January 31, 2016 and $43,206 as of January 31, 2015 . The decrease in the valuation allowance largely resulted from accrual of a U.S. deferred tax liability on fiscal year 2016 foreign earnings that are not permanently reinvested and may be repatriated in the future. We have determined the amounts of our valuation allowances based on our estimates of taxable income by jurisdiction in which we operate over the periods in which the related deferred tax assets will be recoverable. We determined it is not more-likely-than-not that our U.S. entities will generate sufficient taxable income to offset reversing deductible timing differences and to fully utilize carryforward tax attributes. Accordingly, we recorded a valuation allowance against those deferred tax assets for which realization does not meet the more-likely-than-not standard. Similarly, there is a valuation allowance on our state deferred tax assets due to the same uncertainties regarding future taxable U.S. income. We determine valuation allowances related to certain foreign deferred tax assets based on historical losses as well as future expectations in certain jurisdictions. We have not provided for U.S. income taxes on the undistributed earnings of our foreign subsidiaries to the extent they are considered permanently re-invested outside the U.S. As of January 31, 2016 , the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $461,438 . Determination of the amount of unrecognized deferred U.S. income tax liability on permanently re-invested earnings is not practicable. Where the earnings of our foreign subsidiaries are not treated as permanently reinvested, we have accrued for U.S. income taxes on those earnings in our tax provision. On December 18, 2015, the President of the U.S. signed into law The Protecting Americans from Tax Hikes (PATH) Act of 2015 which permanently reinstated the research tax credit retroactive to January 1, 2015. As a result of the new legislation, the Company recognized a benefit in the fourth quarter of fiscal year 2016 related to one month of fiscal year 2015 and twelve months of fiscal year 2016. We are subject to income taxes in the U.S. and in numerous foreign jurisdictions. In the ordinary course of business, there are many transactions and calculations where the ultimate tax determination is uncertain. The statute of limitations for adjustments to our historic tax obligations will vary from jurisdiction to jurisdiction. In some cases it may be extended or be unlimited. Furthermore, net operating loss and tax credit carryforwards may be subject to adjustment after the expiration of the statute of limitations of the year such net operating losses and tax credits originated. Our larger jurisdictions generally provide for a statute of limitation from three to five years. For U.S. federal income tax purposes, the tax years which remain open for examination are fiscal years 2013 and forward, although net operating loss and credit carryforwards from all years are subject to examination and adjustment for three years following the year in which utilized. We are currently under examination in various jurisdictions. The examinations are in different stages and timing of their resolution is difficult to predict. The statute of limitations remains open for years on and after fiscal year 2012 in Ireland, fiscal year 2011 in Japan, fiscal year 2009 in India and fiscal year 2012 in Israel. We have reserves for taxes to address potential exposures involving tax positions that are being challenged or that could be challenged by the tax authorities even though we believe the positions we have taken are appropriate. We believe our tax reserves are adequate to cover potential liabilities. We review the tax reserves as circumstances warrant and adjust the reserves as events occur that affect our potential liability for additional taxes. It is often difficult to predict the final outcome or timing of resolution of any particular tax matter. Various events, some of which cannot be predicted, such as clarification of tax law by administrative or judicial means, may occur and would require us to increase or decrease our reserves and effective tax rate. It is reasonably possible that existing unrecognized tax benefits may decrease from $0 to $3,000 due to settlements or expiration of the statute of limitations within the next twelve months. To the extent that uncertain tax positions resolve in our favor, it could have a positive impact on our effective tax rate. A portion of our reserves, which could settle or expire within the next twelve months, may result in deferred tax assets subject to a valuation allowance for which no benefit would be recognized. Income tax-related interest and penalties were an expense of $1,717 for the year ended January 31, 2016 , an expense of $884 for the year ended January 31, 2015 and a benefit of $1,710 for the year ended January 31, 2014 . The below schedule shows the gross changes in unrecognized tax benefits associated with uncertain tax positions for the years ending January 31, 2016 and 2015 : Unrecognized tax benefits as of January 31, 2014 $ 31,321 Gross increases—tax positions in prior period 7,022 Gross decreases—tax positions in prior period (279 ) Gross increases—tax positions in current period 4,904 Settlements (126 ) Lapse of statute of limitations (2,709 ) Cumulative translation adjustment (362 ) Unrecognized tax benefits as of January 31, 2015 $ 39,771 Gross increases—tax positions in prior period 6,548 Gross decreases—tax positions in prior period (1,702 ) Gross increases—tax positions in current period 6,509 Settlements — Lapse of statute of limitations (1,125 ) Cumulative translation adjustment (1,327 ) Unrecognized tax benefits as of January 31, 2016 $ 48,674 The ending balances of unrecognized tax benefits represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were not sustained, such as the federal deduction that could be realized if an unrecognized state deduction was not sustained. The ending gross balances exclude accrued interest and penalties related to such positions of $9,817 as of January 31, 2016 and $8,366 as of January 31, 2015 . We expect that $25,162 of our unrecognized tax benefits, if recognized, would favorably affect our effective tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases We lease a majority of our field sales offices and research and development facilities under non-cancelable operating leases. In addition, we lease certain equipment used in our research and development and marketing and selling activities. Rent expense under operating leases was as follows: Year ended January 31, 2016 2015 2014 Rent expense $ 27,040 $ 28,114 $ 27,240 Future minimum lease payments under all non-cancelable operating leases are approximately as follows: Fiscal years ending January 31, Lease Payments 2017 $ 20,204 2018 15,600 2019 12,086 2020 9,761 2021 7,680 Thereafter 8,724 Total $ 74,055 Indemnifications Our license and services agreements generally include a limited indemnification provision for claims from third parties relating to our intellectual property (IP). 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 January 31, 2016 , 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 IP 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 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 why we cannot make these assessments, including, among others, one or more of the following: a proceeding being in its early stages; damages sought that are unspecific, unsupportable, unexplained or uncertain; discovery not having been started or being 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, Inc. (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 infringed four Synopsys U.S. patents. In January 2015, the court issued a summary judgment order in our favor invalidating all asserted claims of three of the Synopsys patents. In June 2015, the U.S. Patent and Trademark Office ruled that the claims of the remaining patent asserted against us by Synopsys are unpatentable. This case is no longer in the court's docket for trial. Synopsys has appealed the decision by the district court. In June 2013, Synopsys also filed a claim against us in federal district court in Oregon, similarly alleging that our Veloce family of products infringed two additional Synopsys U.S. patents. These claims have been dismissed. We believe these lawsuits were filed in response to patent lawsuits we filed in 2010 and 2012 against Emulation and Verification Engineering S.A. and EVE-USA, Inc. (together EVE), which Synopsys acquired in October 2012. On October 10, 2014, the jury in our patent lawsuit filed in the federal district court in Oregon found that one of our patents - U.S. Patent No. 6,240,376 - was infringed by EVE and Synopsys. As part of the verdict, the jury awarded us damages of approximately $36 million as well as certain royalties. As of January 31, 2016 , nothing has been included in our financial results for this award. Synopsys has filed an appeal. On March 12, 2015, the Oregon court granted our request for a permanent injunction against future sales of Synopsys emulators containing infringing technology. In December 2010, we filed a patent lawsuit against EVE in Tokyo district court, which seeks compensatory damages and an injunction against the sale of EVE emulation products. The technical trial for the Japanese litigation was held in October 2014. In May 2015, the court issued a preliminary verdict of non-infringement. We have appealed that verdict. We do not have sufficient information upon which to determine that a loss in connection with these matters is probable, reasonably possible, or estimable, and thus no liability has been established nor has a range of loss been disclosed. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 12 Months Ended |
Jan. 31, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure | Dividends The following table summarizes dividends declared since the beginning of fiscal year 2015: Declaration Date Record Date Payment Date Per Share Amount Total Amount Fiscal Year 2017 3/3/2016 3/10/2016 3/31/2016 $ 0.055 Fiscal Year 2016 11/19/2015 12/15/2015 1/4/2016 $ 0.055 $ 6,326 8/20/2015 9/10/2015 9/30/2015 $ 0.055 $ 6,491 5/22/2015 6/10/2015 6/30/2015 $ 0.055 $ 6,389 2/26/2015 3/10/2015 3/31/2015 $ 0.055 $ 6,383 Fiscal Year 2015 11/20/2014 12/10/2014 1/2/2015 $ 0.05 $ 5,743 8/21/2014 9/10/2014 9/30/2014 $ 0.05 $ 5,697 5/22/2014 6/10/2014 6/30/2014 $ 0.05 $ 5,693 2/27/2014 3/10/2014 3/31/2014 $ 0.05 $ 5,778 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. |
Employee Stock and Savings Plan
Employee Stock and Savings Plans | 12 Months Ended |
Jan. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock and Savings Plans | Employee Stock and Savings Plans Stock Options Plans 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 time-based 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. Performance-based restricted stock units vest after three years and include goals for operating income margin. The source of shares issued under the Incentive Plan is new shares. We have not issued any options since fiscal year 2013. Our current equity strategy is to grant restricted stock units rather than options to ensure that we deliver value to our employees when there is volatility in the market. As of January 31, 2016 , a total of 4,181 shares of common stock were available for future grant under the Incentive Plan. The following table summarizes restricted stock unit activity (including the target number of shares awarded for performance-based restricted stock units): Restricted Stock Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Nonvested as of January 31, 2015 4,246 $ 19.63 Granted 1,711 $ 24.10 Vested (1,586 ) $ 17.35 Forfeited (254 ) $ 19.95 Nonvested as of January 31, 2016 4,117 $ 22.35 1.62 $ 71,561 The following table summarizes the fair value of restricted stock units vested: Year ended January 31, 2016 2015 2014 Total fair value of restricted stock units vested $ 27,527 $ 22,874 $ 17,736 Stock options outstanding, the weighted average exercise price, and transactions involving stock options are summarized as follows: Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value Balance as of January 31, 2015 3,152 $ 9.73 Granted — $ — Exercised (639 ) $ 9.79 Forfeited (26 ) $ 16.20 Expired (16 ) $ 8.26 Balance as of January 31, 2016 2,471 $ 9.66 3.98 $ 19,085 Options exercisable as of January 31, 2016 2,395 $ 9.42 3.90 $ 19,058 Options vested as of January 31, 2016 and options expected to vest after January 31, 2016 2,471 $ 9.66 3.98 $ 19,085 The total intrinsic value of options exercised and cash received from options exercised was as follows: Year ended January 31, 2016 2015 2014 Intrinsic value $ 9,440 $ 4,601 $ 26,769 Cash received $ 6,260 $ 4,636 $ 38,830 Employee Stock Purchase Plans We have an 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 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. As of January 31, 2016 , 3,620 shares remain available for future purchase under the ESPPs. The following table summarizes shares issued under the ESPPs and other associated information: Year ended January 31, 2016 2015 2014 Shares issued under the ESPPs 1,538 1,389 1,554 Cash received for the purchase of shares under the ESPPs $ 26,511 $ 25,642 $ 23,895 Weighted average purchase price per share $ 17.24 $ 18.47 $ 15.38 Stock-Based Compensation Expense The fair value of restricted stock units is the market value as of the grant date reduced by the value of expected dividends payable on our common stock prior to vesting. The fair value of the purchase rights under our ESPPs is determined using a Black-Scholes option-pricing model. The Black-Scholes option-pricing model incorporates several highly subjective assumptions including expected volatility, expected term, and interest rates. The expected volatility for the purchase rights for our ESPPs is based on the historical volatility of our shares of common stock. The expected term for the purchase rights for our ESPPs is the 6 month offering period. The risk-free interest rate for periods within the contractual life of the purchase rights under our ESPPs is based on the U.S. Treasury yield curve in effect at the time of the grant. The weighted average grant date fair values are summarized as follows: Year ended January 31, 2016 2015 2014 Restricted stock units granted $ 24.10 $ 21.52 $ 22.42 ESPP purchase rights $ 5.08 $ 4.81 $ 4.30 The fair value calculations for ESPPs used the following assumptions: Year ended January 31, 2016 2015 2014 Risk-free interest rate 0.08% - 0.31% 0.05% - 0.09% 0.09% - 0.14% Dividend yield (range) 0.8% - 1.2% 0.8% - 0.9% 0.0% - 1.0% Dividend yield (weighted average) 0.9 % 0.8 % 0.5 % Expected life (in years) 0.5 0.5 0.5 Volatility (range) 23% - 36% 22% - 23% 22% - 33% Volatility (weighted average) 25 % 22 % 29 % The following table summarizes stock-based compensation expense included in the results of operations and the tax benefit associated with the exercise of stock options: Year ended January 31, 2016 2015 2014 Cost of revenues: Service and support $ 2,607 $ 2,304 $ 1,992 Operating expense: Research and development 16,207 14,027 11,182 Marketing and selling 9,623 9,103 7,777 General and administration 12,060 10,373 8,399 Equity plan-related compensation expense $ 40,497 $ 35,807 $ 29,350 Tax effect of the exercise of stock options $ 217 $ 280 $ 386 As of January 31, 2016 , we had $73,099 in unrecognized compensation cost related to nonvested restricted stock units which is expected to be recognized over a weighted average period of 1.4 years and $386 in unrecognized compensation cost related to nonvested options which is expected to be recognized over a weighted average period of 0.4 years. Employee Savings Plan We have an employee savings plan (the Savings Plan) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the Savings Plan, participating U.S. employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. We currently match 50% of eligible employee’s contributions, up to a maximum of 6% of the employee’s earnings. Employer matching contributions vest over five years , 20% for each year of service completed. Our matching contributions to the Savings Plan were as follows: Year ended January 31, 2016 2015 2014 Employer matching contribution $ 8,930 $ 8,190 $ 7,708 |
Incentive Stock Rights
Incentive Stock Rights | 12 Months Ended |
Jan. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Incentive Stock Rights | Incentive Stock Rights On June 24, 2010 , our Board of Directors 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 . The rights would become exercisable if a person or group acquired or commenced a tender offer to acquire a set threshold of our outstanding common stock. The plan was subsequently amended in 2011 and 2013 to extend its termination date and make certain other changes. On June 30, 2015 , the Plan expired in accordance with its terms. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Jan. 31, 2016 | |
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, exercise of stock options and ESPP purchase rights, and conversion of the 4.00% Debentures using the treasury stock method. The following provides the computation of basic and diluted net income per share: Year ended January 31, 2016 2015 2014 Net income attributable to Mentor Graphics shareholders $ 96,277 $ 147,139 $ 155,258 Adjustment to redemption value of noncontrolling interest with redemption feature 258 121 (4,486 ) Adjusted net income attributable to Mentor Graphics shareholders $ 96,535 $ 147,260 $ 150,772 Weighted average common shares used to calculate basic net income per share 116,701 114,635 113,671 Employee stock options, restricted stock units and employee stock purchase plan 2,562 2,443 3,031 Weighted average common and potential common shares used to calculate diluted net income per share 119,263 117,078 116,702 Net income per share attributable to Mentor Graphics shareholders: Basic net income per share $ 0.83 $ 1.28 $ 1.33 Diluted net income per share $ 0.81 $ 1.26 $ 1.29 We have adjusted the numerator of our basic and diluted earnings per share calculation for the adjustment of the noncontrolling interest with redemption feature to its calculated redemption value, recorded directly to retained earnings. The effect of the conversion of the 4.00% Debentures was anti-dilutive for the twelve months ended January 31, 2016 , 2015 and 2014 and therefore excluded from the computation of diluted net income per share. The conversion feature of the 4.00% Debentures, which allows for settlement in cash or a combination of cash and common stock, is further described in Note 7 . “ Notes Payable .” The following details adjustments to net income excluded from the computation of diluted net income : Year ended January 31, 2016 2015 2014 Adjustment for convertible debt interest, net of tax to be forfeited upon conversion of 4.00% Debentures $ 2,074 $ 2,075 $ 2,075 The following details shares excluded from the computation of diluted net income : Year ended January 31, 2016 2015 2014 Shares of common stock for restricted stock units — 18 566 Shares of common stock for stock options — 14 518 Shares of common stock for ESPP purchase rights — 887 111 Shares of common stock for convertible debt 2,046 612 — Total anti-dilutive shares excluded 2,046 1,531 1,195 These restricted stock units, stock options, ESPPs, and convertible debt were determined to be anti-dilutive as a result of applying the treasury stock method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 31, 2016 | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the components of accumulated other comprehensive loss, net of tax: As of January 31, 2016 2015 Foreign currency translation adjustment $ (21,013 ) $ (12,044 ) Unrealized gain (loss) on derivatives (36 ) 42 Pension liability (51 ) 115 Total accumulated other comprehensive loss $ (21,100 ) $ (11,887 ) For fiscal years 2016, 2015, and 2014, amounts reclassified to net income from accumulated other comprehensive loss related to cash flow hedges are included in the Consolidated Statements of Comprehensive Income. There were no significant amounts reclassified to net income from accumulated other comprehensive loss related to foreign currency translation adjustment or pension plans. |
Special Charges
Special Charges | 12 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Special Charges Disclosure | Special Charges The following is a summary of the components of the special charges: Year ended January 31, 2016 2015 2014 Voluntary early retirement program $ 25,232 $ — $ — Employee severance and related costs 13,496 3,535 4,392 Litigation costs 4,118 18,408 11,597 Other costs, net 2,235 1,547 940 Total special charges $ 45,081 $ 23,490 $ 16,929 Special charges generally include expenses incurred related to employee severance, certain litigation costs, acquisitions, excess facility costs, and asset related charges. We offered the voluntary early retirement program in North America during the three months ended April 30, 2015 and 110 employees elected to participate. The costs presented here are for severance benefits. All of these costs were paid during the fiscal year ending January 31, 2016. Employee severance and related costs include severance benefits and notice pay. 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 benefit amounts based on employee status, years of service, and local statutory requirements. We record the charge for estimated severance benefits in the quarter that the rebalance plan is approved. Approximately 86% of the employee severance and related costs for fiscal year 2016 were paid during fiscal year 2016 . We expect to pay the remainder during fiscal year 2017 . Approximately 90% of the employee severance and related costs for fiscal year 2015 were paid during fiscal year 2015 . Costs remaining as of January 31, 2015 were paid in fiscal year 2016 . Approximately 80% of the employee severance and related costs for fiscal year 2014 were paid during fiscal year 2014 . Costs remaining as of January 31, 2014 were paid in fiscal year 2015 . 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. Accrued special charges are included in accrued and other liabilities and other long-term liabilities in the consolidated balance sheet. The following table shows changes in accrued special charges during the year ended January 31, 2016 : Accrued special charges as of Charges during the year ended Payments during the year ended Accrued special charges as of January 31, 2015 January 31, 2016 January 31, 2016 January 31, 2016 (1) Voluntary early retirement program $ — $ 25,232 $ (25,232 ) $ — Employee severance and related costs 370 13,496 (11,931 ) 1,935 Litigation costs 3,406 4,118 (7,213 ) 311 Other costs 741 2,235 (2,216 ) 760 Accrued special charges $ 4,517 $ 45,081 $ (46,592 ) $ 3,006 (1) The balance of $3,006 represents short-term accrued special charges. The following table shows changes in accrued special charges during the year ended January 31, 2015 : Accrued special charges as of Charges during the year ended Payments during the year ended Accrued special charges as of January 31, 2014 January 31, 2015 January 31, 2015 January 31, 2015 (1) Employee severance and related costs $ 1,004 $ 3,535 $ (4,169 ) $ 370 Litigation costs 4,855 18,408 (19,857 ) 3,406 Other costs 1,987 1,547 (2,793 ) 741 Accrued special charges $ 7,846 $ 23,490 $ (26,819 ) $ 4,517 (1) Of the $4,517 total accrued special charges as of January 31, 2015 , $252 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 $4,265 represents the short-term portion of accrued special charges. The following table shows changes in accrued special charges during the year ended January 31, 2014 : Accrued special charges as of Charges during the year ended Payments during the year ended Accrued special charges as of January 31, 2013 January 31, 2014 January 31, 2014 January 31, 2014 (1) Employee severance and related costs $ 2,028 $ 4,392 $ (5,416 ) $ 1,004 Litigation costs 624 11,597 (7,366 ) 4,855 Other costs 2,889 940 (1,842 ) 1,987 Accrued special charges $ 5,541 $ 16,929 $ (14,624 ) $ 7,846 (1) Of the $7,846 total accrued special charges as of January 31, 2014 , $587 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income. The remaining balance of $7,259 represents the short-term portion of accrued special charges. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Jan. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net was comprised of the following: Year ended January 31, 2016 2015 2014 Interest income $ 1,870 $ 1,723 $ 2,360 Foreign currency exchange gain (loss) 199 (1,152 ) (1,872 ) Other, net (457 ) (1,348 ) (1,008 ) Other income (expense), net $ 1,612 $ (777 ) $ (520 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Transactions with Customers with Common Board Members Certain members of our Board of Directors also serve as officers or directors for some of our customers. We had amounts receivable from these customers of $23,498 as of January 31, 2016 and $46,661 as of January 31, 2015 . The following table shows revenue recognized from these customers: Year ended January 31, 2016 2015 2014 Revenue from customers $ 25,059 $ 32,594 $ 85,037 Percentage of total revenues 2.1 % 2.6 % 7.4 % |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jan. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following provides information concerning supplemental disclosures of cash flow activities: Year ended January 31, 2016 2015 2014 Cash paid for: Interest $ 12,094 $ 11,937 $ 12,225 Income taxes $ 15,103 $ 11,427 $ 11,871 During fiscal year 2016 we purchased the remaining noncontrolling interest of Calypto Design Systems, Inc. for $11,088 which is included in net cash used in financing activities in our consolidated statement of cash flows. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 31, 2016 | |
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. In 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 areas were: Year ended January 31, 2016 2015 2014 Revenues: United States $ 488,148 $ 542,229 $ 497,954 Europe 254,827 255,943 241,417 Japan 87,119 87,725 113,796 Pacific Rim 335,833 341,474 287,956 Other 15,061 16,762 15,250 Total revenues $ 1,180,988 $ 1,244,133 $ 1,156,373 For the year ended January 31, 2015, revenue from Korea was $135,696 , or 10.9% of total revenue. This revenue is included in the Pacific Rim region in the table above. For the years ended January 31, 2016 , 2015 and 2014 , no single customer accounted for 10% of our total revenues. Property, plant and equipment, net, related to operations in the geographic areas were: As of January 31, 2016 2015 Property, plant, and equipment, net: United States $ 133,432 $ 127,631 Europe 33,070 31,751 Japan 2,220 882 Pacific Rim 13,191 10,295 Other 179 178 Total property, plant and equipment, net $ 182,092 $ 170,737 |
Quarterly Financial Information
Quarterly Financial Information - Unaudited | 12 Months Ended |
Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information – Unaudited A summary of quarterly financial information follows: Quarter ended April 30 July 31 October 31 January 31 Fiscal Year 2016 Total revenues $ 272,143 $ 281,062 $ 290,516 $ 337,267 Gross profit $ 223,092 $ 234,799 $ 243,627 $ 289,812 Operating income (loss) $ (7,663 ) $ 39,266 $ 25,688 $ 79,454 Net income (loss) attributable to Mentor Graphics shareholders $ (9,885 ) $ 31,212 $ 14,679 $ 60,271 Net income (loss) per share, basic (1) $ (0.08 ) $ 0.27 $ 0.13 $ 0.52 Net income (loss) per share, diluted (1) $ (0.08 ) $ 0.26 $ 0.12 $ 0.51 Fiscal Year 2015 Total revenues $ 252,151 $ 260,233 $ 292,683 $ 439,066 Gross profit $ 194,708 $ 211,304 $ 245,142 $ 388,666 Operating income $ 1,644 $ 16,912 $ 29,723 $ 139,532 Net income (loss) attributable to Mentor Graphics shareholders $ (2,551 ) $ 14,172 $ 21,030 $ 114,488 Net income (loss) per share, basic (1) $ (0.02 ) $ 0.13 $ 0.18 $ 0.98 Net income (loss) per share, diluted (1) $ (0.02 ) $ 0.13 $ 0.18 $ 0.96 (1) We have adjusted the numerator of our basic and diluted earnings per share calculation for the adjustment of the noncontrolling interest with redemption feature to its calculated redemption value, recorded directly to retained earnings, as follows: Quarter ended April 30 July 31 October 31 January 31 Fiscal Year 2016 $ 269 $ (144 ) $ 133 $ — Fiscal Year 2015 $ 667 $ 895 $ (267 ) $ (1,174 ) |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Jan. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 18, 2016 we entered into an agreement to repurchase 8,060 shares of Mentor Graphics common stock beneficially owned by Carl C. Icahn and certain of his affiliates, at a purchase price of $18.12 per share, the NASDAQ closing price of Mentor Graphics common stock on February 18, 2016. The total purchase price for the shares was $146,050 and was funded from Mentor Graphics cash and cash equivalents on hand. This share repurchase was made outside of the existing share repurchase program. The transaction was completed on February 25, 2016. In order to facilitate the share repurchase we paid an intercompany dividend on February 23, 2016 from foreign subsidiaries of $150,000 . As the earnings associated with these funds were not treated as permanently reinvested, any U.S. tax consequences had already been included in our tax provision in prior periods. Also to facilitate this repurchase effective February 24, 2016 our revolving credit facility was amended to increase the limit on the amount of common stock we can repurchase and dividends we can pay from $50,000 plus 70% of our cumulative net income for periods after January 31, 2011 (a total of $112,038 as of January 31, 2016 ) to $200,000 plus 70% of our cumulative net income for periods ending after February 1, 2016. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The 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. We do not have off-balance sheet arrangements, financings, or other similar relationships with unconsolidated entities or other persons, also known as special purpose entities. In the ordinary course of business, we lease certain real properties, primarily field sales offices, research and development facilities, and equipment, as described in Note 9. “Commitments and Contingencies.” |
Foreign Currency Translation | Foreign Currency Translation Local currencies are the functional currencies for our foreign subsidiaries except for certain subsidiaries in Ireland, Singapore, Egypt, and the Netherlands Antilles where the United States (U.S.) dollar is used as the functional currency. We translate assets and liabilities of foreign operations, excluding certain subsidiaries in Ireland, Singapore, Egypt, and the Netherlands Antilles to U.S. dollars at current rates of exchange and revenues and expenses using weighted average rates. We include foreign currency translation adjustments in stockholders’ equity as a component of accumulated other comprehensive income. We maintain the accounting records for certain subsidiaries in Ireland, Singapore, Egypt, and the Netherlands Antilles in the U.S. dollar and accordingly no translation is necessary. We include foreign currency transaction gains and losses as a component of other income (expense), net. |
Use of Estimates | Use of Estimates U.S. generally accepted accounting principles require management to make estimates and assumptions that affect the reported amount of assets, liabilities, and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include revenue recognition, valuation of trade accounts receivable, income taxes, business combinations, goodwill, intangible assets, long-lived assets, special charges, and stock-based compensation. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances. We adjust estimates and assumptions as facts and circumstances dictate. Actual results could differ from these estimates. Any changes in estimates will be reflected in the financial statements in future periods. |
Investments | Investments We classify investments with original maturities of 90 days or less as cash equivalents. Short-term investments include certificates of deposit with original maturities in excess of 90 days and less than one year at the time of purchase. Long-term investments, included in other assets on the accompanying consolidated balance sheets, include investments with maturities in excess of one year from the balance sheet date and equity securities. We determine the appropriate classification of our investments at the time of purchase. For investments in equity securities, we use the equity method of accounting when our investment gives us the ability to exercise significant influence over the operating and financial policies of the investee. Under the equity method, we currently record our share of earnings or losses as a component of other income (expense), net, equal to our proportionate share of the earnings or losses of the investee. Investments in equity securities of private companies without a readily determinable fair value, where we do not exercise significant influence over the investee, are recorded using the cost method of accounting, carrying the investment at historical cost. We periodically evaluate the fair value of all investments to determine if an other-than-temporary decline in value has occurred. |
Investment in Frontline | Investment in Frontline We have a 50% interest in a joint venture, Frontline P.C.B. Solutions Limited Partnership (Frontline), a provider of engineering software solutions for the printed circuit board industry. We use the equity method of accounting for Frontline, which results in reporting our investment as one line within other assets in the consolidated balance sheet and our share of earnings as one line in the consolidated statement of income. Frontline reports on a calendar year basis, therefore, we record our interest in the earnings of Frontline on a one-month lag. Although we do not exert control, we actively participate in regular and periodic activities with respect to Frontline such as budgeting, business planning, marketing, and direction of research and development projects. Accordingly, we have included our interest in the earnings of Frontline as a component of operating income. |
Property, Plant, and Equipment, Net | Property, Plant, and Equipment, Net We state property, plant, and equipment at cost and capitalize expenditures for additions to property, plant, and equipment. We expense maintenance and repairs, which do not improve or extend the life of the respective asset, as incurred. We compute depreciation on a straight-line basis |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible assets and other intangible assets acquired in our business combinations. Goodwill is not amortized, but is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the fair value of our reporting unit may be less than the carrying amount. We operate as a single reporting unit for purposes of goodwill evaluation. We completed our annual goodwill impairment test as of January 31, 2016 , 2015 , and 2014 . For purposes of assessing the impairment of goodwill, we estimated the fair value of our reporting unit using its market capitalization as the best evidence of fair value and compared that fair value to the carrying value of our reporting unit. Our reporting unit passed this step of the goodwill analysis. There were no indicators of impairment to goodwill during fiscal years 2016 , 2015 , and 2014 and accordingly, no impairment charges were recognized during these fiscal periods. Intangible assets, net primarily includes purchased technology, in-process research and development, backlog, tradenames, and customer relationships acquired in our business combinations. We review long-lived assets, including intangible assets with definite lives, for impairment whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. We assess the recoverability of our long-lived assets by determining whether the carrying values of the asset groups are greater than the forecasted undiscounted net cash flows of the related asset group. If we determine the assets are impaired, we write down the assets to their estimated fair value. We determine fair value based on forecasted discounted net cash flows or appraised values, depending upon the nature of the assets. In the event we determine our long-lived assets are impaired, we would make an adjustment resulting in a charge for the write-down in the period that the determination was made. There were no indicators of impairment to long-lived assets during fiscal years 2016 , 2015 , and 2014 and accordingly, no impairment charges were recognized during these fiscal periods. We amortize purchased technology over three to five years to system and software cost of revenues and other intangible asset costs generally over two to five years to operating expenses. We amortize capitalized in-process research and development (resulting from acquisitions) upon completion of projects to cost of revenues over the estimated useful life of the technology. Alternatively, if we abandon a project, in-process research and development costs are expensed to operating expense when that determination is made. |
Noncontrolling Interest with Redemption Feature | Noncontrolling Interest with Redemption Feature In September 2015 we exercised our call option to purchase the remaining noncontrolling interest of Calypto Design Systems, Inc. for $11,088 . After this transaction, we own 100% of Calypto Design Systems, Inc. We had been party to an agreement that provided us a call option to acquire the noncontrolling interest, and provided the noncontrolling interest holders a put option to sell their interests to us, at prices based on formulas defined in the agreement. Prior to our purchase, the noncontrolling interest was adjusted for the redemption feature based on the put option price formula and presented on the consolidated balance sheet under the caption “Noncontrolling interest with redemption feature.” Because the exercise of the put option was outside of our control, we presented this interest outside of stockholders’ equity. The noncontrolling interest with redemption feature was recognized at the greater of: i. The calculated redemption feature put value as of the balance sheet date; or ii. The initial noncontrolling interest value adjusted for the noncontrolling interest holders' share of: a. cumulative impact of net income (loss); and b. other changes in accumulated other comprehensive income. Increases (or decreases to the extent they offset previous increases) in the calculated redemption feature put value were recorded directly to retained earnings as if the balance sheet date were also the redemption date. Changes in the redemption feature put value also resulted in an adjustment to net income attributable to shareholders in the calculation of basic and diluted net income per share. The results of the majority-owned subsidiary were presented in our consolidated results with an adjustment reflected on the face of our statement of income and the face of our statement of comprehensive income for the noncontrolling investors' interest in the results of the subsidiary. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, we recognize deferred income taxes for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and tax balances of existing assets and liabilities. We calculate deferred tax assets and liabilities using enacted laws and tax rates that will be in effect when we expect the differences to reverse and be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized for deductible temporary differences, net operating loss carryforwards, and credit carryforwards if it is more likely than not that the tax benefits will be realized. Deferred tax assets are not recorded, however, in the following circumstances: • A deferred tax asset is not recorded for net operating loss carryforwards created by excess tax benefits from the exercise of stock options. To the extent we achieve a reduction in the amount of tax that would be payable due to the utilization of such net operating loss carryforwards or otherwise, we may increase stockholders’ equity. The historical and current deferred tax assets related to excess tax benefits from stock option exercises are excluded in the presentation of our financial results. • Deferred tax assets are not recorded to the extent they are attributed to uncertain tax positions. For deferred tax assets that cannot be recognized under the more-likely-than-not-standard, we have established a valuation allowance. In the event we determine that we are able to realize our deferred tax assets in the future in excess of our net recorded amount, we would reverse the valuation allowance associated with the deferred tax assets in the period the determination was made. Also, if we determine that we are not able to realize all or part of our net deferred tax assets in the future, we would record a valuation allowance on the net deferred tax assets with a corresponding increase in expense in the period the determination was made. We are subject to income taxes in the U.S. and in numerous foreign jurisdictions, and in the ordinary course of business, there are many transactions and calculations where the ultimate tax determination is uncertain. While we believe the positions we have taken are appropriate, we have reserves for taxes to address potential exposures involving tax positions that are being challenged or that could be challenged by the tax authorities. We record a benefit on a tax position when we determine that it is more likely than not that the position is sustainable upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions that are more likely than not to be sustained, we measure the tax position at the largest amount of benefit that has a greater than 50 percent likelihood of being realized when it is effectively settled. We review the tax reserves as circumstances warrant and adjust the reserves as events occur that affect our potential liability for additional taxes. |
Business Combinations | Business Combinations For each business we acquire, the excess of the fair value of the consideration transferred over the fair value of the net tangible assets acquired and net tangible liabilities assumed is allocated to various identifiable intangible assets and goodwill. Identifiable intangible assets typically consist of purchased technology and customer-related intangibles, which amortize to expense over their useful lives. Goodwill, representing the excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets, is not amortized. See additional discussion in Note 4 . " Business Combinations ." |
Derivative Financial Instruments | Derivative Financial Instruments We are exposed to fluctuations in foreign currency exchange rates and have established a foreign currency hedging program to hedge certain foreign currency forecasted transactions and exposures from existing assets and liabilities. Our derivative instruments consist of foreign currency exchange contracts. By using derivative instruments, we subject ourselves to credit risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, our credit risk will equal the fair value of the derivative instrument. Generally, when the fair value of our derivative contracts is a net asset, the counterparty owes us, thus creating a receivable risk. We minimize counterparty credit risk by entering into derivative transactions with major financial institutions and, as such, we do not expect material losses as a result of default by our counterparties. We execute foreign currency transactions in exchange-traded or over-the-counter markets for which quoted prices exist. We do not hold or issue derivative financial instruments for speculative or trading purposes. To manage the foreign currency volatility, we aggregate exposures on a consolidated basis to take advantage of natural offsets. The primary exposures are the Japanese yen, where we are in a long position, and the euro, where we are in a short position. Most large European revenue contracts are denominated and paid to us in U.S. dollars while our European expenses, including substantial research and development operations, are paid in local currency causing a short position in the euro. In addition, we experience greater inflows than outflows of Japanese yen as almost all Japanese-based customers contract and pay us in Japanese yen. While these exposures are aggregated on a consolidated basis to take advantage of natural offsets, substantial exposures remain. To partially offset the net exposures in the euro and the Japanese yen, we enter into foreign currency exchange contracts of less than one year which are designated as cash flow hedges. Any gain or loss on Japanese yen contracts is classified as product revenue when the hedged transaction occurs while any gain or loss on euro contracts is classified as operating expense when the hedged transaction occurs. We use an income approach to determine the fair value of our foreign currency contracts and record them at fair value utilizing observable market inputs at the measurement date. We report the fair value of derivatives in other receivables, if the balance is an asset, or accrued liabilities, if the balance is a liability, in the consolidated balance sheet. The accounting for changes in the fair value of a derivative depends upon whether it has been designated in a hedging relationship and on the type of hedging relationship. To qualify for designation in a hedging relationship, specific criteria must be met and the appropriate documentation maintained. Hedging relationships, if designated, are established pursuant to our risk management policy and are initially and regularly evaluated to determine whether they are expected to be, and have been, highly effective hedges. We formally document all relationships between foreign currency exchange contracts and hedged items as well as our risk management objectives and strategies for undertaking various hedge transactions. All hedges designated as cash flow hedges are linked to forecasted transactions and we assess, both at inception of the hedge and on an ongoing basis, the effectiveness of the foreign currency exchange contracts in offsetting changes in the cash flows of the hedged items. We report the effective portions of the net gains or losses on these foreign currency exchange contracts as a component of accumulated other comprehensive income in stockholders’ equity. Accumulated other comprehensive income associated with hedges of forecasted transactions is reclassified to the consolidated statement of income in the same period the forecasted transaction occurs or the hedge is no longer effective. We expect substantially all of the hedge balance in accumulated other comprehensive income to be reclassified to the consolidated statement of income within the next twelve months. We enter into foreign currency exchange contracts to offset the earnings impact relating to the variability in exchange rates on certain short-term monetary assets and liabilities denominated in non-functional currencies. We do not designate these foreign currency contracts as hedges. The change in fair value of these derivative instruments is reported each period in other income (expense), net, in our consolidated statement of income. |
Revenue Recognition | Revenue Recognition We report revenue in two categories based on how revenue is generated: (i) system and software and (ii) service and support. System and software revenues – We derive system and software revenues from the sale of licenses of software products and emulation and other hardware systems, including finance fee revenues from our long-term installment receivables resulting from product sales. We primarily license our products using two different license types: 1. Term licenses – We use this license type primarily for software sales. This license type provides the customer with the right to use a fixed list of software products for a specified time period, typically three to four years, with payments spread over the license term, and does not provide the customer with the right to use the products after the end of the term. Term license arrangements may allow the customer to share products between multiple locations and remix product usage from the fixed list of products at regular intervals during the license term. We generally recognize product revenue from term license arrangements upon product delivery and start of the license term. In a term license agreement where we provide the customer with rights to unspecified or unreleased future products, we recognize revenue ratably over the license term. 2. Perpetual licenses – We use this license type for software and emulation hardware system sales. This license type provides the customer with the right to use the product in perpetuity and typically does not provide for extended payment terms. We generally recognize product revenue from perpetual license arrangements upon product delivery assuming all other criteria for revenue recognition have been met. We include finance fee revenues from the accretion of the discount on long-term installment receivables in system and software revenues. Finance fees were approximately 2.0% of total revenues for fiscal years 2016, 2015, and 2014. Service and support revenues – We derive service and support revenues from software and hardware post-contract maintenance or support services and professional services, which include consulting, training, and other services. We recognize support services revenue ratably over the service term. We record professional services revenue as the services are provided to the customer. We determine whether product revenue recognition is appropriate based upon the evaluation of whether the following four criteria have been met: 1. Persuasive evidence of an arrangement exists – Generally, we use either a customer signed contract or qualified customer purchase order as evidence of an arrangement for both term and perpetual licenses. For professional service engagements, we generally use a signed professional services agreement and a statement of work to evidence an arrangement. Sales through our distributors are evidenced by an agreement governing the relationship, together with binding purchase orders from the distributor on a transaction-by-transaction basis. 2. Delivery has occurred – We generally deliver software and the corresponding access keys to customers electronically. Electronic delivery occurs when we provide the customer access to the software. We may also deliver the software on a digital versatile disc (DVD). With respect to emulation hardware systems, we transfer title to the customer upon shipment. Our software license and emulation hardware system agreements generally do not contain conditions for acceptance. 3. Fee is fixed or determinable – We assess whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. We have established a history of collecting under an original contract with installment terms without providing concessions on payments, products, or services. Additionally, for installment contracts, we determine that the fee is fixed or determinable if the arrangement has a payment schedule that is within the term of the license and the payments are collected in equal or nearly equal installments, when evaluated on a cumulative basis. If the fee is not deemed to be fixed or determinable, we recognize revenue as payments become due and payable. 4. Collectibility is probable – To recognize revenue, we must judge collectibility of the arrangement fees on a customer-by-customer basis pursuant to our credit review process. We typically sell to customers with whom there is a history of successful collection. We evaluate the financial position and a customer’s ability to pay whenever an existing customer purchases new products, renews an existing arrangement, or requests an increase in credit terms. For certain industries for which our products are not considered core to the industry or the industry is generally considered troubled, we impose higher credit standards. If we determine that collectibility is not probable based upon our credit review process or the customer’s payment history, we recognize revenue as payments are received. Multiple element arrangements involving software licenses – For multiple element arrangements involving software and other software-related deliverables, vendor-specific objective evidence of fair value (VSOE) must exist to allocate the total fee among all delivered and non-essential undelivered elements of the arrangement. If undelivered elements of the arrangement are essential to the functionality of the product, we defer revenue until the essential elements are delivered. If VSOE does not exist for one or more non-essential undelivered elements, we defer revenue until such evidence exists for the undelivered elements, or until all elements are delivered, whichever is earlier. If VSOE of all non-essential undelivered elements exists but VSOE does not exist for one or more delivered elements, we recognize revenue using the residual method. Under the residual method, we defer revenue related to the undelivered elements based upon VSOE and we recognize the remaining portion of the arrangement fee as revenue for the delivered elements, assuming all other criteria for revenue recognition are met. We base our VSOE for certain elements of an arrangement upon the pricing in comparable transactions when the element is sold separately. We primarily base our VSOE for term and perpetual support services upon customer renewal history where the services are sold separately. We also base VSOE for professional services and installation services for emulation hardware systems upon the price charged when the services are sold separately. Multiple element arrangements involving hardware – For multiple element arrangements involving our emulation hardware systems, we allocate revenue to each element based on the relative selling price of each deliverable. In order to meet the separation criteria to allocate revenue to each element we must determine the standalone selling price of each element using a hierarchy of evidence. The authoritative guidance requires that, in the absence of VSOE or third-party evidence, a company must develop an estimated selling price (ESP). ESP is defined as the price at which the vendor would transact if the deliverable was sold by the vendor regularly on a standalone basis. A company should consider market conditions as well as entity-specific factors when estimating a selling price. We base our ESP for certain elements in arrangements on either costs incurred to manufacture a product plus a reasonable profit margin or standalone sales to similar customers. In determining profit margins, we consider current market conditions, pricing strategies related to the class of customer, and the level of penetration we have with the customer. In other cases, we may have limited sales on a standalone basis to the same or similar customers and/or guaranteed pricing on future purchases of the same item. |
Software Development Costs | Software Development Costs We capitalize software development costs beginning when a product’s technological feasibility has been established by either completion of a detail program design or completion of a working model of the product and ending when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of our products has historically been of short duration. As a result, those capitalizable software development costs are insignificant and have been charged to research and development expense in all periods in the accompanying consolidated statements of income. |
Advertising Costs | Advertising Costs We expense all advertising costs as incurred. Advertising expense is included in marketing and selling expense in the accompanying consolidated statement of income |
Special Charges | Special Charges We record restructuring charges in connection with our plans to better align our cost structure with projected operations in the future. We record restructuring charges in connection with employee rebalances based on estimates of the expected costs associated with severance benefits. If the actual cost incurred exceeds the estimated cost, additional expense is recognized. If the actual cost is less than the estimated cost, a benefit is recognized. We also record within special charges, expenses incurred related to certain litigation costs that are unusual in nature due to the significance in variability of timing and amount. Special Charges may also include costs associated with acquisitions, excess facility costs and asset related charges. See additional discussion in Note 15 . " Special Charges ." Special charges generally include expenses incurred related to employee severance, certain litigation costs, acquisitions, excess facility costs, and asset related charges. We offered the voluntary early retirement program in North America during the three months ended April 30, 2015 and 110 employees elected to participate. The costs presented here are for severance benefits. All of these costs were paid during the fiscal year ending January 31, 2016. Employee severance and related costs include severance benefits and notice pay. 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 benefit amounts based on employee status, years of service, and local statutory requirements. We record the charge for estimated severance benefits in the quarter that the rebalance plan is approved. |
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 restricted stock units, common shares issuable upon exercise of employee stock options, purchase rights from employee stock purchase plans (ESPPs), and common shares issuable upon conversion of the convertible subordinated debentures using the treasury stock method, if dilutive. Net income used to compute basic and diluted net income per share is increased or reduced for the adjustment of the noncontrolling interest with redemption feature to its calculated redemption value. See additional discussion in Note 13 . “ Net Income Per Share .” |
Accounting for Stock-based Compensation | Accounting for Stock-Based Compensation We measure stock-based compensation cost at the grant date, based on the fair value of the award, and recognize the expense on a straight-line basis over the employee’s requisite service period. For options and stock awards that vest fully on any termination of service, there is no requisite service period and consequently we recognize the expense fully in the period in which the award is granted. We present the excess tax benefit from the exercise of stock options as a financing activity in the statement of cash flows when the benefit is utilized. We have elected to compute the timing of excess tax benefits from the exercise of stock options on the “with-and-without” approach. Under this approach, we do not record an excess tax benefit until such time as a cash tax benefit is recognized. Further, we include the impact of these excess tax benefits in the calculation of indirect tax attributes, such as the research and development credit and the domestic manufacturing deduction. We compute the pool of excess tax benefits available to offset any future shortfalls in the tax benefits actually realized on exercises of stock options as a single pool for employees and non-employees. See a further description of how we estimate the fair value of stock options and purchase rights under our ESPPs in Note 11 . “ Employee Stock and Savings Plans .” |
Transfers of Financial Assets | Transfer of Financial Assets We finance certain software license agreements with customers through the sale, assignment, and transfer of the future payments under those agreements to financing institutions on a non-recourse basis. We retain no interest in the transferred receivable. We record the transfers as sales of the related accounts receivable when we are considered to have surrendered control of the receivables. The gain or loss on the sale of receivables is included in general and administration in operating expenses in our consolidated statement of income. The gain or loss on the sale of receivables consists of two components: (i) the discount on sold receivables, which is the difference between the undiscounted balance of the receivables, and the net proceeds received from the financing institution and (ii) the unaccreted interest on the sold receivables. We impute interest on the receivables based on prevailing market rates and record this as a discount against the receivable. |
Reclassification, Policy | In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs . ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015, and is to be applied retrospectively, with early adoption permitted. We early adopted ASU 2015-03 in the fourth quarter of fiscal year 2016 , resulting in the reclassification of unamortized debt issuance costs related to our 4.00% Convertible Subordinated Debentures (4.00% Debentures) from an asset position to a liability position, as a reductions of our long-term debt. The amount reclassified in total was $3,014 as of January 31, 2015 . Adoption of this guidance did not have a material impact on our financial statements. The reclassification of our previously issued fiscal year 2015 consolidated balance sheet was made to conform to the current period presentation. |
Fair Value Measurement (Policie
Fair Value Measurement (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
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. |
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 our 4.00% Debentures on the quoted market price at the balance sheet date. Our notes are not actively traded and the quoted market price is derived from observable inputs including our stock price, stock volatility, and interest rate (Level 2). We believe the carrying value of Other Notes Payable of $5,188 at January 31, 2016 approximated fair value. |
Term Receivable and Trade Acc32
Term Receivable and Trade Accounts Receivable Balances Term Receivable and Trade Accounts Receivable (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
Receivables [Abstract] | |
Receivables policy | Balances for term agreements that are due within one year of the balance sheet date are included in trade accounts receivable, net and balances that are due more than one year from the balance sheet date are included 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 to system and software revenues over the period in which payments are made and balances are outstanding, using the effective interest method. 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 of the balance sheet date. Billings for term agreements typically occur thirty 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 billed beyond one year from the balance sheet date. |
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 at the time of assessment. For customers that do not have an S&P credit rating, we base our credit risk assessment on results provided in the customer's most recent financial statements at the time of assessment. 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. |
Allowance for doubtful accounts | We maintain allowances for doubtful accounts on trade accounts receivable and term receivables, long-term 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 customers, the current business environment, and historical experience. If these factors change or circumstances related to specific customers change, we adjust the recoverability estimates of the receivables, resulting in either additional selling expense or a reduction in selling expense in the period the determination is made. |
Special Charges Costs associate
Special Charges Costs associated with exit or disposal activities or restructuring (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Exit or Disposal Activities or Restructurings | Special Charges We record restructuring charges in connection with our plans to better align our cost structure with projected operations in the future. We record restructuring charges in connection with employee rebalances based on estimates of the expected costs associated with severance benefits. If the actual cost incurred exceeds the estimated cost, additional expense is recognized. If the actual cost is less than the estimated cost, a benefit is recognized. We also record within special charges, expenses incurred related to certain litigation costs that are unusual in nature due to the significance in variability of timing and amount. Special Charges may also include costs associated with acquisitions, excess facility costs and asset related charges. See additional discussion in Note 15 . " Special Charges ." Special charges generally include expenses incurred related to employee severance, certain litigation costs, acquisitions, excess facility costs, and asset related charges. We offered the voluntary early retirement program in North America during the three months ended April 30, 2015 and 110 employees elected to participate. The costs presented here are for severance benefits. All of these costs were paid during the fiscal year ending January 31, 2016. Employee severance and related costs include severance benefits and notice pay. 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 benefit amounts based on employee status, years of service, and local statutory requirements. We record the charge for estimated severance benefits in the quarter that the rebalance plan is approved. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Property Plant and Equipment Useful Lives | Estimated Useful Lives (in years) Buildings 40 Land improvements 20 Computer equipment and furniture 3 - 5 Leasehold improvements (1) 3 - 10 (1) Amortized over the shorter of the lease term or estimated life. |
Property, Plant, and Equipment | A summary of property, plant, and equipment, net is as follows: As of January 31, 2016 2015 Computer equipment and furniture $ 351,982 $ 334,817 Buildings and building equipment 115,312 110,854 Land and improvements 21,489 21,650 Leasehold improvements 41,906 38,035 Property, plant, and equipment, gross 530,689 505,356 Less: accumulated depreciation and amortization (348,597 ) (334,619 ) Property, plant, and equipment, net $ 182,092 $ 170,737 |
Schedule Of Purchased Technology and Other Intangible Asset Amortization Expense | Total purchased technology and other intangible asset amortization expense was as follows: Year ended January 31, 2016 2015 2014 Purchased technology and other intangible asset amortization expense $ 16,019 $ 15,265 $ 9,828 |
Schedule of Goodwill and Intangible Assets | As of January 31, 2016 , the carrying value of goodwill and intangible assets was as follows: As of January 31, 2016 2015 Goodwill $ 606,842 $ 599,929 Purchased technology and in-process research and development, gross $ 158,102 $ 155,124 Less: accumulated amortization (138,375 ) (131,143 ) Purchased technology and in-process research and development, net $ 19,727 $ 23,981 Other intangible assets, gross $ 105,162 $ 100,384 Less: accumulated amortization (87,443 ) (78,788 ) Other intangible assets, net $ 17,719 $ 21,596 |
Schedule of Goodwill Activity | The following table summarizes goodwill activity: Balance as of January 31, 2014 $ 549,044 Acquisitions 57,476 Earnouts 13 Foreign exchange (6,604 ) Balance as of January 31, 2015 $ 599,929 Acquisitions 8,500 Foreign exchange (1,587 ) Balance as of January 31, 2016 $ 606,842 |
Schedule of Expected Amortization Expense | We estimate the aggregate amortization expense related to purchased technology and other intangible assets will be as follows: Fiscal years ending January 31, 2017 $ 12,889 2018 11,316 2019 9,559 2020 3,077 2021 548 Thereafter 57 Aggregate amortization expense $ 37,446 |
Advertising Expense | Advertising expense is included in marketing and selling expense in the accompanying consolidated statement of income as follows: Year ended January 31, 2016 2015 2014 Advertising expense $ 3,683 $ 2,985 $ 2,654 |
Reclassifications | The amounts in our fiscal year 2015 consolidated balance sheet have been reclassified as follows: As of January 31, 2015 As Originally Reported As Reclassified Prepaid expenses and other $ 22,357 $ 21,405 Other assets $ 64,671 $ 62,609 Notes payable $ 230,400 $ 227,386 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | |
Financial liabilities measured at fair value on a recurring basis | The following table presents information about financial liabilities measured at fair value on a recurring basis as of January 31, 2016 : Fair Value Level 1 Level 2 Level 3 Contingent consideration $ 3,749 $ — $ — $ 3,749 The following table presents information about financial liabilities measured at fair value on a recurring basis as of January 31, 2015 : Fair Value Level 1 Level 2 Level 3 Contingent consideration $ 4,563 $ — $ — $ 4,563 |
Schedule of contingent consideration | The following table summarizes the total recorded contingent consideration: As of January 31, 2016 2015 Contingent consideration, short-term $ 1,460 $ 1,515 Contingent consideration, long-term 2,289 3,048 Total contingent consideration $ 3,749 $ 4,563 |
Significant unobservable inputs | The fair value measurement of our contingent consideration as of January 31, 2016 encompasses the following significant unobservable inputs: Unobservable Inputs Range Total estimated contingent consideration $1,464 - $4,422 Discount rate 9.5% - 16.0% Timing of cash flows (in years) 0 - 3 |
Summary of level 3 activity | The following table summarizes contingent consideration activity: Balance as of January 31, 2014 $ 4,571 New contingent consideration 1,450 Payments (1,589 ) Changes in fair value (11 ) Interest accretion 142 Balance as of January 31, 2015 $ 4,563 New contingent consideration — Payments (1,525 ) Changes in fair value 586 Interest accretion 125 Balance as of January 31, 2016 $ 3,749 |
Schedule of notes payable | The following table summarizes the fair value and carrying value of our 4.00% Debentures: As of January 31, 2016 2015 Fair value of 4.00% Debentures $ 255,487 $ 310,173 Carrying value of 4.00% Debentures $ 234,888 $ 227,386 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | Acquisitions during the twelve months ended January 31, 2015 Total Consideration Net Tangible Assets Acquired Identifiable Intangible Assets Acquired Goodwill Berkeley Design Automation, Inc. $ 51,303 $ 2,335 $ 24,770 $ 24,198 Other 49,315 876 15,160 33,279 Total $ 100,618 $ 3,211 $ 39,930 $ 57,477 |
Term Receivable and Trade Acc37
Term Receivable and Trade Accounts Receivable Balances Term Receivables and Trade Accounts Receivable (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Term Receivables and Trade Accounts Receivable [Abstract] | |
Term receivable and trade accounts receivable balances | Trade accounts receivable and term receivable balances were as follows: As of January 31, 2016 2015 Trade accounts receivable $ 176,021 $ 208,996 Term receivables, short-term $ 317,188 $ 337,626 Term receivables, long-term $ 268,657 $ 301,862 |
Credit risk assessment for long-term receivables | The credit risk assessment for our long-term receivables was as follows: As of January 31, 2016 2015 S&P credit rating: AAA+ through BBB- $ 195,764 $ 192,430 BB+ and lower 22,520 31,939 218,284 224,369 Internal credit assessment 50,373 77,493 Total long-term term receivables $ 268,657 $ 301,862 |
Change in allowance for doubtful accounts | The following shows the change in allowance for doubtful accounts for the years ended January 31, 2016 , 2015 , and 2014 : Allowance for doubtful accounts Beginning balance Expense adjustment Other deductions ( 1) Ending balance Year ended January 31, 2016 $ 4,217 $ (349 ) $ (42 ) $ 3,826 Year ended January 31, 2015 $ 5,469 $ (988 ) $ (264 ) $ 4,217 Year ended January 31, 2014 $ 5,331 $ 517 $ (379 ) $ 5,469 |
Sale Of Receivables | We sold the following receivables to financing institutions on a non-recourse basis and recognized the following gain on the sale of those receivables: Year ended January 31, 2016 2015 2014 Net proceeds $ 42,661 $ 22,572 $ 22,943 Trade receivables, short-term 16,344 12,715 11,705 Term receivables, long-term 27,770 10,461 11,912 Total receivables sold 44,114 23,176 23,617 Discount on sold receivables (1,453 ) (604 ) (674 ) Unaccreted interest on sold receivables 2,723 922 890 Gain on sale of receivables $ 1,270 $ 318 $ 216 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Short-term Debt [Line Items] | |
Schedule of Short-term Borrowings | Short-term borrowings consisted of the following: As of January 31, 2016 2015 Senior revolving credit facility $ 25,000 $ — Collections of previously sold accounts receivable 7,568 5,917 Other borrowings 881 1,311 Short-term borrowings $ 33,449 $ 7,228 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Debt Instrument | |
Schedule of Long-term Debt Instruments | Notes payable consist of the following: As of January 31, 2016 2015 4.00% Debentures $ 234,888 $ 227,386 Other 5,188 — Notes payable $ 240,076 $ 227,386 |
Schedule of Maturities of Long-term Debt | Annual maturities of our notes payable are scheduled as follows: Fiscal years ending January 31, 2019 $ 2,000 2020 3,188 Thereafter 252,957 Total $ 258,145 |
4.00% Debentures due 2031 | |
Debt Instrument | |
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 100.000 % |
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, unamortized debt issuance costs, net carrying amount of the liability component, and carrying amount of the equity component of the 4.00% Debentures are as follows: As of January 31, 2016 2015 Principal amount $ 252,957 $ 253,000 Unamortized debt discount (16,007 ) (22,600 ) Unamortized debt issuance costs (2,062 ) (3,014 ) Net carrying amount of the liability component $ 234,888 $ 227,386 Equity component, net of debt issuance costs $ 42,518 $ 42,531 |
Recognized Amounts in Interest Expense in the Consolidated Statement of Operations | We recognized the following amounts in interest expense in the consolidated statement of operations related to the 4.00% Debentures: Year ended January 31, 2016 2015 2014 Interest expense at the contractual interest rate $ 10,117 $ 10,120 $ 10,120 Amortization of debt discount $ 6,593 $ 6,139 $ 5,715 Amortization of debt issuance costs $ 952 $ 952 $ 952 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | Domestic and foreign pre-tax income was as follows: Year ended January 31, 2016 2015 2014 Domestic $ (25,971 ) $ (2,991 ) $ (754 ) Foreign 144,900 170,749 163,822 Total pre-tax income $ 118,929 $ 167,758 $ 163,068 |
Schedule of components of income tax expense (benefit) | The provision for income taxes was as follows: Year ended January 31, 2016 2015 2014 Current: Federal $ 734 $ (223 ) $ (366 ) State 199 444 355 Foreign 17,994 13,677 6,585 Total current 18,927 13,898 6,574 Deferred: Federal and state 4,402 7,687 1,333 Foreign 1,424 996 1,603 Total deferred 5,826 8,683 2,936 Total provision for income taxes $ 24,753 $ 22,581 $ 9,510 |
Provision for income taxes | Actual income tax expense is different from that which would have been computed by applying the statutory U.S. federal income tax rate to our income before income tax. A reconciliation of income tax expense as computed at the U.S. federal statutory income tax rate to the provision for income taxes is as follows: Year ended January 31, 2016 2015 2014 Federal tax, at statutory rate $ 41,626 $ 58,725 $ 57,074 State tax, net of federal benefit (60 ) 900 355 Impact of international operations including withholding taxes and other reserves 7,143 (27,042 ) (46,632 ) Repatriation of foreign subsidiary earnings 354 21,969 20,367 Foreign tax credits (2,382 ) (5,143 ) (5,489 ) Tax credits (excluding foreign tax credits) (11,539 ) (8,089 ) (12,571 ) Amortization of deferred charge (167 ) 1,168 (2,311 ) Change in valuation allowance (21,055 ) (26,443 ) (5,929 ) Stock-based compensation expense 3,402 2,929 2,593 Non-deductible meals and entertainment 1,177 1,238 1,087 Other, net 6,254 2,369 966 Provision for income taxes $ 24,753 $ 22,581 $ 9,510 |
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences and carryforwards, which gave rise to significant portions of deferred tax assets and liabilities, were as follows: As of January 31, 2016 2015 Deferred tax assets: Reserves and allowances $ 12,954 $ 11,188 Accrued expenses not currently deductible 12,446 21,475 Stock-based compensation expense 8,259 6,988 Net operating loss carryforwards 24,138 34,618 Tax credit carryforwards 87,443 74,235 Purchased technology and other intangible assets 4,219 3,047 Deferred revenue 4,541 2,002 Other, net 8,394 6,762 Total gross deferred tax assets 162,394 160,315 Less valuation allowance (63,554 ) (91,956 ) Deferred tax assets 98,840 68,359 Deferred tax liabilities: Intangible assets (13,163 ) (12,976 ) Undistributed foreign earnings (87,390 ) (50,163 ) Convertible debt (6,322 ) (8,918 ) Depreciation of property, plant, and equipment (1,715 ) (997 ) Deferred tax liabilities (108,590 ) (73,054 ) Net deferred tax liabilities $ (9,750 ) $ (4,695 ) |
Summary of tax credit carryforwards | As of January 31, 2016 , we had the following foreign and U.S. Federal and state carryforwards for income tax return purposes: Credit or carryforward As of January 31, 2016 Expiration Federal credits and carryforwards: Research and experimentation credit carryforward $ 88,987 Fiscal years 2019 - 2036 Net operating loss carryforward $ 120,030 Fiscal years 2020 - 2036 Foreign tax credits $ 19,433 Fiscal years 2017 - 2026 Alternative minimum tax credits $ 2,682 No expiration Childcare credits $ 1,843 Fiscal years 2023 - 2036 State income tax credits and carryforwards: Net operating loss carryforward $ 202,389 Fiscal years 2017 - 2036 Research and experimentation $ 21,842 Fiscal years 2017 - 2031 Miscellaneous $ 1,038 Various Foreign net operating loss carryforwards $ 20,093 Generally indefinite |
Unrecognized tax position reconciliation | The below schedule shows the gross changes in unrecognized tax benefits associated with uncertain tax positions for the years ending January 31, 2016 and 2015 : Unrecognized tax benefits as of January 31, 2014 $ 31,321 Gross increases—tax positions in prior period 7,022 Gross decreases—tax positions in prior period (279 ) Gross increases—tax positions in current period 4,904 Settlements (126 ) Lapse of statute of limitations (2,709 ) Cumulative translation adjustment (362 ) Unrecognized tax benefits as of January 31, 2015 $ 39,771 Gross increases—tax positions in prior period 6,548 Gross decreases—tax positions in prior period (1,702 ) Gross increases—tax positions in current period 6,509 Settlements — Lapse of statute of limitations (1,125 ) Cumulative translation adjustment (1,327 ) Unrecognized tax benefits as of January 31, 2016 $ 48,674 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Rent Expense | Rent expense under operating leases was as follows: Year ended January 31, 2016 2015 2014 Rent expense $ 27,040 $ 28,114 $ 27,240 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under all non-cancelable operating leases are approximately as follows: Fiscal years ending January 31, Lease Payments 2017 $ 20,204 2018 15,600 2019 12,086 2020 9,761 2021 7,680 Thereafter 8,724 Total $ 74,055 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends Declared (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Dividends Declared | The following table summarizes dividends declared since the beginning of fiscal year 2015: Declaration Date Record Date Payment Date Per Share Amount Total Amount Fiscal Year 2017 3/3/2016 3/10/2016 3/31/2016 $ 0.055 Fiscal Year 2016 11/19/2015 12/15/2015 1/4/2016 $ 0.055 $ 6,326 8/20/2015 9/10/2015 9/30/2015 $ 0.055 $ 6,491 5/22/2015 6/10/2015 6/30/2015 $ 0.055 $ 6,389 2/26/2015 3/10/2015 3/31/2015 $ 0.055 $ 6,383 Fiscal Year 2015 11/20/2014 12/10/2014 1/2/2015 $ 0.05 $ 5,743 8/21/2014 9/10/2014 9/30/2014 $ 0.05 $ 5,697 5/22/2014 6/10/2014 6/30/2014 $ 0.05 $ 5,693 2/27/2014 3/10/2014 3/31/2014 $ 0.05 $ 5,778 |
Employee Stock and Savings Pl43
Employee Stock and Savings Plans (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of restricted stock units award activity | The following table summarizes restricted stock unit activity (including the target number of shares awarded for performance-based restricted stock units): Restricted Stock Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Nonvested as of January 31, 2015 4,246 $ 19.63 Granted 1,711 $ 24.10 Vested (1,586 ) $ 17.35 Forfeited (254 ) $ 19.95 Nonvested as of January 31, 2016 4,117 $ 22.35 1.62 $ 71,561 |
Schedule of fair value of stock awards vested | The following table summarizes the fair value of restricted stock units vested: Year ended January 31, 2016 2015 2014 Total fair value of restricted stock units vested $ 27,527 $ 22,874 $ 17,736 |
Schedule of stock options activity | Stock options outstanding, the weighted average exercise price, and transactions involving stock options are summarized as follows: Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value Balance as of January 31, 2015 3,152 $ 9.73 Granted — $ — Exercised (639 ) $ 9.79 Forfeited (26 ) $ 16.20 Expired (16 ) $ 8.26 Balance as of January 31, 2016 2,471 $ 9.66 3.98 $ 19,085 Options exercisable as of January 31, 2016 2,395 $ 9.42 3.90 $ 19,058 Options vested as of January 31, 2016 and options expected to vest after January 31, 2016 2,471 $ 9.66 3.98 $ 19,085 |
Proceeds from and intrinsic value of options exercised | The total intrinsic value of options exercised and cash received from options exercised was as follows: Year ended January 31, 2016 2015 2014 Intrinsic value $ 9,440 $ 4,601 $ 26,769 Cash received $ 6,260 $ 4,636 $ 38,830 |
Schedule of shares issued under employee stock purchase plan and other associated information | The following table summarizes shares issued under the ESPPs and other associated information: Year ended January 31, 2016 2015 2014 Shares issued under the ESPPs 1,538 1,389 1,554 Cash received for the purchase of shares under the ESPPs $ 26,511 $ 25,642 $ 23,895 Weighted average purchase price per share $ 17.24 $ 18.47 $ 15.38 |
Summary of the weighted average grant date fair value | The weighted average grant date fair values are summarized as follows: Year ended January 31, 2016 2015 2014 Restricted stock units granted $ 24.10 $ 21.52 $ 22.42 ESPP purchase rights $ 5.08 $ 4.81 $ 4.30 |
Schedule of employee stock purchase plan valuation assumptions | The fair value calculations for ESPPs used the following assumptions: Year ended January 31, 2016 2015 2014 Risk-free interest rate 0.08% - 0.31% 0.05% - 0.09% 0.09% - 0.14% Dividend yield (range) 0.8% - 1.2% 0.8% - 0.9% 0.0% - 1.0% Dividend yield (weighted average) 0.9 % 0.8 % 0.5 % Expected life (in years) 0.5 0.5 0.5 Volatility (range) 23% - 36% 22% - 23% 22% - 33% Volatility (weighted average) 25 % 22 % 29 % |
Schedule of employee service share-based compensation, allocation of recognized period costs | The following table summarizes stock-based compensation expense included in the results of operations and the tax benefit associated with the exercise of stock options: Year ended January 31, 2016 2015 2014 Cost of revenues: Service and support $ 2,607 $ 2,304 $ 1,992 Operating expense: Research and development 16,207 14,027 11,182 Marketing and selling 9,623 9,103 7,777 General and administration 12,060 10,373 8,399 Equity plan-related compensation expense $ 40,497 $ 35,807 $ 29,350 Tax effect of the exercise of stock options $ 217 $ 280 $ 386 |
Matching contribution to savings plan | Our matching contributions to the Savings Plan were as follows: Year ended January 31, 2016 2015 2014 Employer matching contribution $ 8,930 $ 8,190 $ 7,708 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net income (loss) per share | The following provides the computation of basic and diluted net income per share: Year ended January 31, 2016 2015 2014 Net income attributable to Mentor Graphics shareholders $ 96,277 $ 147,139 $ 155,258 Adjustment to redemption value of noncontrolling interest with redemption feature 258 121 (4,486 ) Adjusted net income attributable to Mentor Graphics shareholders $ 96,535 $ 147,260 $ 150,772 Weighted average common shares used to calculate basic net income per share 116,701 114,635 113,671 Employee stock options, restricted stock units and employee stock purchase plan 2,562 2,443 3,031 Weighted average common and potential common shares used to calculate diluted net income per share 119,263 117,078 116,702 Net income per share attributable to Mentor Graphics shareholders: Basic net income per share $ 0.83 $ 1.28 $ 1.33 Diluted net income per share $ 0.81 $ 1.26 $ 1.29 |
Adjustments to Net Income excluded from the computation of diluted EPS | The following details adjustments to net income excluded from the computation of diluted net income : Year ended January 31, 2016 2015 2014 Adjustment for convertible debt interest, net of tax to be forfeited upon conversion of 4.00% Debentures $ 2,074 $ 2,075 $ 2,075 |
Schedule of antidilutive securities excluded from computation of EPS | The following details shares excluded from the computation of diluted net income : Year ended January 31, 2016 2015 2014 Shares of common stock for restricted stock units — 18 566 Shares of common stock for stock options — 14 518 Shares of common stock for ESPP purchase rights — 887 111 Shares of common stock for convertible debt 2,046 612 — Total anti-dilutive shares excluded 2,046 1,531 1,195 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the components of accumulated other comprehensive loss, net of tax: As of January 31, 2016 2015 Foreign currency translation adjustment $ (21,013 ) $ (12,044 ) Unrealized gain (loss) on derivatives (36 ) 42 Pension liability (51 ) 115 Total accumulated other comprehensive loss $ (21,100 ) $ (11,887 ) |
Special Charges (Tables)
Special Charges (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Components Of Special Charges | The following is a summary of the components of the special charges: Year ended January 31, 2016 2015 2014 Voluntary early retirement program $ 25,232 $ — $ — Employee severance and related costs 13,496 3,535 4,392 Litigation costs 4,118 18,408 11,597 Other costs, net 2,235 1,547 940 Total special charges $ 45,081 $ 23,490 $ 16,929 |
Schedule of Restructuring Reserve by Type of Cost | The following table shows changes in accrued special charges during the year ended January 31, 2016 : Accrued special charges as of Charges during the year ended Payments during the year ended Accrued special charges as of January 31, 2015 January 31, 2016 January 31, 2016 January 31, 2016 (1) Voluntary early retirement program $ — $ 25,232 $ (25,232 ) $ — Employee severance and related costs 370 13,496 (11,931 ) 1,935 Litigation costs 3,406 4,118 (7,213 ) 311 Other costs 741 2,235 (2,216 ) 760 Accrued special charges $ 4,517 $ 45,081 $ (46,592 ) $ 3,006 (1) The balance of $3,006 represents short-term accrued special charges. The following table shows changes in accrued special charges during the year ended January 31, 2015 : Accrued special charges as of Charges during the year ended Payments during the year ended Accrued special charges as of January 31, 2014 January 31, 2015 January 31, 2015 January 31, 2015 (1) Employee severance and related costs $ 1,004 $ 3,535 $ (4,169 ) $ 370 Litigation costs 4,855 18,408 (19,857 ) 3,406 Other costs 1,987 1,547 (2,793 ) 741 Accrued special charges $ 7,846 $ 23,490 $ (26,819 ) $ 4,517 (1) Of the $4,517 total accrued special charges as of January 31, 2015 , $252 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 $4,265 represents the short-term portion of accrued special charges. The following table shows changes in accrued special charges during the year ended January 31, 2014 : Accrued special charges as of Charges during the year ended Payments during the year ended Accrued special charges as of January 31, 2013 January 31, 2014 January 31, 2014 January 31, 2014 (1) Employee severance and related costs $ 2,028 $ 4,392 $ (5,416 ) $ 1,004 Litigation costs 624 11,597 (7,366 ) 4,855 Other costs 2,889 940 (1,842 ) 1,987 Accrued special charges $ 5,541 $ 16,929 $ (14,624 ) $ 7,846 (1) Of the $7,846 total accrued special charges as of January 31, 2014 , $587 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income. The remaining balance of $7,259 represents the short-term portion of accrued special charges. |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net was comprised of the following: Year ended January 31, 2016 2015 2014 Interest income $ 1,870 $ 1,723 $ 2,360 Foreign currency exchange gain (loss) 199 (1,152 ) (1,872 ) Other, net (457 ) (1,348 ) (1,008 ) Other income (expense), net $ 1,612 $ (777 ) $ (520 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Related Party Transactions [Abstract] | |
Revenue Recognized from Related Party | The following table shows revenue recognized from these customers: Year ended January 31, 2016 2015 2014 Revenue from customers $ 25,059 $ 32,594 $ 85,037 Percentage of total revenues 2.1 % 2.6 % 7.4 % |
Supplemental Cash Flow Inform49
Supplemental Cash Flow Information Supplemental Cash Flow Detail (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following provides information concerning supplemental disclosures of cash flow activities: Year ended January 31, 2016 2015 2014 Cash paid for: Interest $ 12,094 $ 11,937 $ 12,225 Income taxes $ 15,103 $ 11,427 $ 11,871 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenues related to operations in geographic regions | Revenues related to operations in the geographic areas were: Year ended January 31, 2016 2015 2014 Revenues: United States $ 488,148 $ 542,229 $ 497,954 Europe 254,827 255,943 241,417 Japan 87,119 87,725 113,796 Pacific Rim 335,833 341,474 287,956 Other 15,061 16,762 15,250 Total revenues $ 1,180,988 $ 1,244,133 $ 1,156,373 |
Total property, plant, and equipment, net in geographic regions | Property, plant and equipment, net, related to operations in the geographic areas were: As of January 31, 2016 2015 Property, plant, and equipment, net: United States $ 133,432 $ 127,631 Europe 33,070 31,751 Japan 2,220 882 Pacific Rim 13,191 10,295 Other 179 178 Total property, plant and equipment, net $ 182,092 $ 170,737 |
Quarterly Financial Informati51
Quarterly Financial Information - Unaudited (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | A summary of quarterly financial information follows: Quarter ended April 30 July 31 October 31 January 31 Fiscal Year 2016 Total revenues $ 272,143 $ 281,062 $ 290,516 $ 337,267 Gross profit $ 223,092 $ 234,799 $ 243,627 $ 289,812 Operating income (loss) $ (7,663 ) $ 39,266 $ 25,688 $ 79,454 Net income (loss) attributable to Mentor Graphics shareholders $ (9,885 ) $ 31,212 $ 14,679 $ 60,271 Net income (loss) per share, basic (1) $ (0.08 ) $ 0.27 $ 0.13 $ 0.52 Net income (loss) per share, diluted (1) $ (0.08 ) $ 0.26 $ 0.12 $ 0.51 Fiscal Year 2015 Total revenues $ 252,151 $ 260,233 $ 292,683 $ 439,066 Gross profit $ 194,708 $ 211,304 $ 245,142 $ 388,666 Operating income $ 1,644 $ 16,912 $ 29,723 $ 139,532 Net income (loss) attributable to Mentor Graphics shareholders $ (2,551 ) $ 14,172 $ 21,030 $ 114,488 Net income (loss) per share, basic (1) $ (0.02 ) $ 0.13 $ 0.18 $ 0.98 Net income (loss) per share, diluted (1) $ (0.02 ) $ 0.13 $ 0.18 $ 0.96 (1) We have adjusted the numerator of our basic and diluted earnings per share calculation for the adjustment of the noncontrolling interest with redemption feature to its calculated redemption value, recorded directly to retained earnings, as follows: Quarter ended April 30 July 31 October 31 January 31 Fiscal Year 2016 $ 269 $ (144 ) $ 133 $ — Fiscal Year 2015 $ 667 $ 895 $ (267 ) $ (1,174 ) |
Summary of Significant Accoun52
Summary of Significant Accounting Policies Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Significant Accounting Policies | |||
Capitalized Computer Software, Additions | $ 3,698 | ||
Finance fee percentage of revenue | 2.00% | 2.00% | 2.00% |
Prepaid expenses and other | $ 22,550 | $ 21,405 | |
Other assets | 70,860 | 62,609 | |
Notes Payable, Noncurrent | $ 240,076 | 227,386 | |
Building | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life | 40 years | ||
Land Improvements | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life | 20 years | ||
Office Equipment | Minimum | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life | 3 years | ||
Office Equipment | Maximum | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life | 5 years | ||
Leasehold Improvements | Minimum | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life | 3 years | ||
Leasehold Improvements | Maximum | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life | 10 years | ||
Purchased Technology | Minimum | |||
Significant Accounting Policies | |||
Finite-Lived intangible asset, useful life | 3 years | ||
Purchased Technology | Maximum | |||
Significant Accounting Policies | |||
Finite-Lived intangible asset, useful life | 5 years | ||
Other Intangible Assets | Minimum | |||
Significant Accounting Policies | |||
Finite-Lived intangible asset, useful life | 2 years | ||
Other Intangible Assets | Maximum | |||
Significant Accounting Policies | |||
Finite-Lived intangible asset, useful life | 5 years | ||
Frontline | |||
Significant Accounting Policies | |||
Equity method investment, ownership percentage | 50.00% | ||
Scenario, previously reported | |||
Significant Accounting Policies | |||
Prepaid expenses and other | 22,357 | ||
Other assets | 64,671 | ||
Notes Payable, Noncurrent | 230,400 | ||
4.00% Debentures due 2031 | |||
Significant Accounting Policies | |||
Deferred Finance Costs, Net | $ 2,062 | 3,014 | |
Notes Payable, Noncurrent | $ 234,888 | $ 227,386 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies Summary Of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | $ 530,689 | $ 505,356 |
Less accumulated depreciation and amortization | (348,597) | (334,619) |
Property, plant, and equipment, net | 182,092 | 170,737 |
Office Equipment | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 351,982 | 334,817 |
Building | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 115,312 | 110,854 |
Land Improvements | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 21,489 | 21,650 |
Leasehold Improvements | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | $ 41,906 | $ 38,035 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies Purchased Technology and Other Intangible Asset Amortization Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Schedule of Finite Lived Intangible Assets Amortization Expense | |||
Amortization of intangible assets | $ 8,716 | $ 8,166 | $ 6,230 |
Purchased Technology and Other Intangible Asset | |||
Schedule of Finite Lived Intangible Assets Amortization Expense | |||
Amortization of intangible assets | $ 16,019 | $ 15,265 | $ 9,828 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies Carrying Value of Goodwill, Intangible Assets, and Long-lived Assets (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Goodwill And Intangible Assets Disclosure | |||
Indicators of goodwill impairment | no | no | no |
Impairment charges for Goodwill | $ 0 | $ 0 | $ 0 |
Indicators of long-lived assets impairment | no | no | no |
Impairment charges for long-lived assets | $ 0 | $ 0 | $ 0 |
Goodwill | 606,842,000 | 599,929,000 | $ 549,044,000 |
Intangible assets, net | 37,446,000 | 45,577,000 | |
Purchased Technology and In-Process Research and Development | |||
Goodwill And Intangible Assets Disclosure | |||
Intangible Assets, Gross (Excluding Goodwill) | 158,102,000 | 155,124,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (138,375,000) | (131,143,000) | |
Intangible assets, net | 19,727,000 | 23,981,000 | |
Other Intangible Assets | |||
Goodwill And Intangible Assets Disclosure | |||
Intangible Assets, Gross (Excluding Goodwill) | 105,162,000 | 100,384,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (87,443,000) | (78,788,000) | |
Intangible assets, net | $ 17,719,000 | $ 21,596,000 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies Goodwill Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Goodwill | ||
Goodwill, beginning balance | $ 599,929 | $ 549,044 |
Acquisitions | 8,500 | 57,476 |
Goodwill, Other Changes | 13 | |
Foreign exchange | (1,587) | (6,604) |
Goodwill, ending balance | $ 606,842 | $ 599,929 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies Aggregate Amortization Expense Related to Purchased Technology and Other Intangible Assets (Details) - Purchased Technology and Other Intangible Asset $ in Thousands | Jan. 31, 2016USD ($) |
Goodwill And Intangible Assets Disclosure | |
Expected amortization expense, year 1 | $ 12,889 |
Expected amortization expense, year 2 | 11,316 |
Expected amortization expense, year 3 | 9,559 |
Expected amortization expense, year 4 | 3,077 |
Expected amortization expense, year 5 | 548 |
Expected amortization expense, thereafter | 57 |
Finite lived intangible assets future amortization | $ 37,446 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies Noncontrolling Interest with Redemption Feature (Details) - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended |
Jan. 31, 2016 | Jan. 31, 2016 | |
Redeemable Noncontrolling Interest, Equity, Redemption Value [Abstract] | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 11,088 | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Summary of Significant Accoun59
Summary of Significant Accounting Policies Advertising Expense Included in Marketing and Selling (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Advertising Costs | |||
Advertising expense | $ 3,683 | $ 2,985 | $ 2,654 |
Financial Liabilities Measured
Financial Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration | $ 3,749 | $ 4,563 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration | $ 3,749 | $ 4,563 |
Fair Value Measurement Level 3
Fair Value Measurement Level 3 Unobservable Inputs (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2016USD ($)year | |
Unobservable Inputs [Abstract] | |
Total estimated contingent consideration, low | $ | $ 1,464 |
Total estimated contingent consideration, high | $ | $ 4,422 |
Discount rate, low | 9.50% |
Discount rate, high | 16.00% |
Timing of cash flows (in years), low | year | 0 |
Timing of cash flows (in years), high | year | 3 |
Summary of Level 3 Activity (De
Summary of Level 3 Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 4,563 | $ 4,571 |
New contingent consideration | 0 | 1,450 |
Payments | (1,525) | (1,589) |
Adjustments | 586 | (11) |
Interest accretion | 125 | 142 |
Balance at ending of period | $ 3,749 | $ 4,563 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes Payable, Noncurrent | $ 240,076 | $ 227,386 |
Business Combination, Contingent Consideration, Liability, Current | 1,460 | 1,515 |
Business Combination, Contingent Consideration, Liability, Noncurrent | 2,289 | 3,048 |
Contingent consideration | 3,749 | 4,563 |
Current portion of notes payable | 0 | 0 |
4.00% Debentures due 2031 | ||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes Payable, Noncurrent | 234,888 | 227,386 |
Fair value of notes payable | 255,487 | 310,173 |
Notes Payable, Other Payables | ||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes Payable, Noncurrent | $ 5,188 | $ 0 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2014 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 599,929 | $ 606,842 | $ 549,044 |
Berkeley Design Automation, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Effective Date of Acquisition | Mar. 20, 2014 | ||
Payments to Acquire Businesses, Gross | $ 46,832 | ||
Acquisition Related Deferred Payment | 4,471 | ||
Business Combination, Consideration Transferred | 51,303 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 2,335 | ||
Business Combination, Recognized Identifiable Finite-Lived Intangibles | $ 24,770 | ||
Fair Value Inputs, Discount Rate | 15.00% | ||
Goodwill | $ 24,198 | ||
Other Acquired Entities [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred | 49,315 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 876 | ||
Business Combination, Recognized Identifiable Finite-Lived Intangibles | 15,160 | ||
Goodwill | 33,279 | ||
Total FY15 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred | 100,618 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 3,211 | ||
Business Combination, Recognized Identifiable Finite-Lived Intangibles | 39,930 | ||
Goodwill | 57,477 | ||
Other Intangible Assets | Berkeley Design Automation, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Finite-Lived Intangibles | $ 13,570 | ||
Other Intangible Assets | Minimum | Berkeley Design Automation, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Finite-Lived intangible asset, useful life | 2 years | ||
Other Intangible Assets | Maximum | Berkeley Design Automation, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Finite-Lived intangible asset, useful life | 5 years | ||
Developed Technology Rights [Member] | Berkeley Design Automation, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Finite-Lived Intangibles | $ 11,200 | ||
Finite-Lived intangible asset, useful life | 5 years |
Term Receivable and Trade Acc65
Term Receivable and Trade Accounts Receivable Balances (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Accounts and Financing Receivable [Line Items] | ||
Trade accounts receivable, net | $ 493,209 | $ 546,622 |
Term receivables, long-term | 268,657 | 301,862 |
Trade accounts receivable | ||
Accounts and Financing Receivable [Line Items] | ||
Trade accounts receivable, net | 176,021 | 208,996 |
Term receivables, short-term | ||
Accounts and Financing Receivable [Line Items] | ||
Trade accounts receivable, net | $ 317,188 | $ 337,626 |
Credit Risk Assessment for Long
Credit Risk Assessment for Long-term Receivables (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Accounts and Financing Receivable [Line Items] | ||
Term receivables, long-term | $ 268,657 | $ 301,862 |
S&P credit rating, AAA+ through BBB- | ||
Accounts and Financing Receivable [Line Items] | ||
Term receivables, long-term | 195,764 | 192,430 |
S&P credit rating, BB+ and lower | ||
Accounts and Financing Receivable [Line Items] | ||
Term receivables, long-term | 22,520 | 31,939 |
S&P credit rating | ||
Accounts and Financing Receivable [Line Items] | ||
Term receivables, long-term | 218,284 | 224,369 |
Internal Credit Rating | ||
Accounts and Financing Receivable [Line Items] | ||
Term receivables, long-term | $ 50,373 | $ 77,493 |
Change in Allowance for Doubtfu
Change in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Allowance for doubtful accounts receivable, beginning balance | $ 4,217 | ||
Allowance for doubtful accounts receivable, ending balance | 3,826 | $ 4,217 | |
ment:AllowanceForDoubtfulAccountsAdjustment [Member] | |||
Valuation Allowances and Reserves, Period Increase (Decrease) | (1,691) | ||
Allowance for Doubtful Accounts [Member] | |||
Allowance for doubtful accounts receivable, beginning balance | 4,217 | 5,469 | $ 5,331 |
Valuation Allowances and Reserves, Period Increase (Decrease) | (349) | (988) | 517 |
Valuation Allowances and Reserves, Adjustments | (42) | (264) | (379) |
Allowance for doubtful accounts receivable, ending balance | $ 3,826 | $ 4,217 | $ 5,469 |
Term Receivable and Trade Acc68
Term Receivable and Trade Accounts Receivable Balances Transfer of Financial Assets Accounted for as Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Transfer of Financial Assets Accounted for as Sales | |||
Proceeds from Sale of Finance Receivables | $ 42,661 | $ 22,572 | $ 22,943 |
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | 44,114 | 23,176 | 23,617 |
Discount on sold receivables | (1,453) | (604) | (674) |
Unaccreted Interest on Sold Receivables Net | 2,723 | 922 | 890 |
Gain (Loss) on Sale of Accounts Receivable | 1,270 | 318 | 216 |
Trade accounts receivable | |||
Transfer of Financial Assets Accounted for as Sales | |||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | 16,344 | 12,715 | 11,705 |
Term Receivables Long Term | |||
Transfer of Financial Assets Accounted for as Sales | |||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 27,770 | $ 10,461 | $ 11,912 |
Term Receivables and Trade Acco
Term Receivables and Trade Accounts Receivable - Additional Information (Details) | 12 Months Ended |
Jan. 31, 2016 | |
Disclosure Term Receivables And Trade Accounts Receivable Additional Information [Abstract] | |
Billing period | 30 days |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Short-term Debt [Line Items] | ||
Senior revolving credit facility | $ 25,000 | $ 0 |
Collections of previously sold accounts receivable | 7,568 | 5,917 |
Other short-term borrowings | 881 | 1,311 |
Short-term borrowings | $ 33,449 | $ 7,228 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Details) - Revolving Credit Facility $ in Thousands | Feb. 24, 2016USD ($) | Jan. 31, 2016USD ($) |
Line of Credit Facility | ||
Termination date for senior, unsecured revolving credit facility | Jan. 9, 2020 | |
Revolving credit facility, maximum borrowing capacity | $ 125,000 | |
Percentage of net current account receivable included in cash and account receivable ratio | 42.00% | |
Maximum amount available for dividends and stock repurchase dollar limit | $ 50,000 | |
Maximum amount available for dividend distribution and stock repurchase percent of cumulative net income | 70.00% | |
Balance Available For Dividend Payment And Stock Repurchase | $ 112,038 | |
Minimum | ||
Line of Credit Facility | ||
Commitment fee percentage on unused line of credit | 0.30% | |
Adjusted quick ratio | 1 | |
Cash and accounts receivable ratio | 1.25 | |
Minimum | L I B O R | ||
Line of Credit Facility | ||
Basis spread on variable rate | 2.00% | |
Minimum | Base Rate | ||
Line of Credit Facility | ||
Basis spread on variable rate | 1.00% | |
Maximum | ||
Line of Credit Facility | ||
Commitment fee percentage on unused line of credit | 0.40% | |
Leverage ratio | 2 | |
Senior leverage ratio | 0.90 | |
Maximum | L I B O R | ||
Line of Credit Facility | ||
Basis spread on variable rate | 2.50% | |
Maximum | Base Rate | ||
Line of Credit Facility | ||
Basis spread on variable rate | 1.50% | |
Subsequent Event | ||
Line of Credit Facility | ||
Maximum amount available for dividends and stock repurchase dollar limit | $ 200,000 | |
Maximum amount available for dividend distribution and stock repurchase percent of cumulative net income | 70.00% |
Notes Payable Notes Payable (De
Notes Payable Notes Payable (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Debt Instrument | ||
Notes Payable, Noncurrent | $ 240,076 | $ 227,386 |
4.00% Debentures due 2031 | ||
Debt Instrument | ||
Notes Payable, Noncurrent | 234,888 | 227,386 |
Notes Payable, Other Payables | ||
Debt Instrument | ||
Notes Payable, Noncurrent | 5,188 | 0 |
Notes Payable, Total | ||
Debt Instrument | ||
Notes Payable, Noncurrent | $ 240,076 | $ 227,386 |
Notes Payable Annual Maturities
Notes Payable Annual Maturities of Notes Payable, Long-Term (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Notes Payable, Other Payables | ||
Debt Instrument | ||
Long-term Debt, Maturities, Repayments of Principal in Year Three | $ 2,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 3,188 | |
4.00% Debentures due 2031 | ||
Debt Instrument | ||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 252,957 | |
Long-term Debt, Gross | 252,957 | $ 253,000 |
Notes Payable, Total | ||
Debt Instrument | ||
Long-term Debt, Gross | $ 258,145 |
Notes Payable - Redemption Pric
Notes Payable - Redemption Prices Expressed as a Percentage of Principal, Plus any Accrued and Unpaid Interest (Details) - 4.00% Debentures due 2031 - Convertible Subordinated Debt | 12 Months Ended |
Jan. 31, 2016 | |
Redemption Period Beginning on April 5, 2016 and ending on March 31, 2017 | |
Debt Instrument | |
Debentures redemption price | 101.143% |
Redemption Period Beginning on April 1, 2017 and ending on March 31, 2018 | |
Debt Instrument | |
Debentures redemption price | 100.571% |
Redepmption Period Beginning on April 1, 2018 and thereafter | |
Debt Instrument | |
Debentures redemption price | 100.00% |
Notes Payable - Principal Amoun
Notes Payable - Principal Amount, Unamortized Debt Discount, Unamortized Debt Issuance Costs, Net Carrying Amount of the Liability Component, and Carrying Amount of the Equity Component of the 4.00% Debentures (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Debt Instrument | ||
Net carrying amount of the liability component | $ 240,076 | $ 227,386 |
4.00% Debentures due 2031 | ||
Debt Instrument | ||
Principal amount | 252,957 | 253,000 |
Unamortized debt discount | (16,007) | (22,600) |
Unamortized debt issuance costs | (2,062) | (3,014) |
Net carrying amount of the liability component | 234,888 | 227,386 |
Equity component | $ 42,518 | $ 42,531 |
Notes Payable - Recognized Amou
Notes Payable - Recognized Amounts in Interest Expense in the Condensed Consolidated Statement of Operations Related to the 4.00% Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Debt Instrument | |||
Interest expense at the contractual interest rate | $ 19,428 | $ 19,276 | $ 19,452 |
4.00% Debentures due 2031 | |||
Debt Instrument | |||
Interest expense at the contractual interest rate | 10,117 | 10,120 | 10,120 |
Amortization of debt discount | 6,593 | 6,139 | 5,715 |
Amortization of Debt Issuance Costs | $ 952 | $ 952 | $ 952 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Details) $ / shares in Units, $ in Thousands | Sep. 09, 2015USD ($) | Feb. 25, 2015 | Apr. 30, 2011USD ($)$ / sharesshares | Jan. 31, 2016USD ($)day$ / sharesshares | Jan. 31, 2015USD ($) | Jan. 31, 2014 |
Debt Instrument | ||||||
Notes Payable, Noncurrent | $ 240,076 | $ 227,386 | ||||
4.00% Debentures due 2031 | ||||||
Debt Instrument | ||||||
Notes Payable, Noncurrent | 234,888 | $ 227,386 | ||||
4.00% Debentures due 2031 | Convertible Subordinated Debt | ||||||
Debt Instrument | ||||||
Debt Instrument, Maturity Date, Description | 2,031 | |||||
Issued debt | $ 253,000 | |||||
Interest rate | 4.00% | |||||
Principal amount multiple | $ 1 | $ 1 | ||||
Conversion rate | shares | 48.6902 | 49.8058 | ||||
Conversion price | $ / shares | $ 20.54 | $ 20.08 | ||||
Market price of common stock exceeding percent of the conversion price | 120.00% | |||||
Conversion circumstance stock price | $ / shares | $ 24.09 | |||||
Threshold trading days | day | 20 | |||||
Threshold consecutive trading days | 30 days | |||||
Market price of debentures declining to maximum percent of the value of the common stock | 98.00% | |||||
Principal Amount of 4.00% Debentures Converted | $ 43 | |||||
Amortization end date | 2018-03 | |||||
Interest rate during period | 7.25% | 7.25% | 7.25% | |||
Other Note Payable, due February 2019 | ||||||
Debt Instrument | ||||||
Notes Payable, Noncurrent | $ 3,188 | |||||
Interest rate | 4.00% | |||||
Debt Instrument, Maturity Date | Feb. 25, 2019 | |||||
Other Note Payable, due September 2018 | ||||||
Debt Instrument | ||||||
Issued debt | $ 2,000 | |||||
Interest rate | 4.00% | |||||
Debt Instrument, Maturity Date | Sep. 8, 2018 | |||||
Holder optional redemption on April 1, 2018 | 4.00% Debentures due 2031 | Convertible Subordinated Debt | ||||||
Debt Instrument | ||||||
Debentures redemption price | 100.00% | |||||
Holder optional redemption on April 1, 2021 | 4.00% Debentures due 2031 | Convertible Subordinated Debt | ||||||
Debt Instrument | ||||||
Debentures redemption price | 100.00% | |||||
Holder optional redemption on April 1, 2026 | 4.00% Debentures due 2031 | Convertible Subordinated Debt | ||||||
Debt Instrument | ||||||
Debentures redemption price | 100.00% |
Income Taxes Domestic and Forei
Income Taxes Domestic and Foreign Pre-tax Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Disclosure Domestic and Foreign Pretax Income Loss [Abstract] | |||
Domestic | $ (25,971) | $ (2,991) | $ (754) |
Foreign | 144,900 | 170,749 | 163,822 |
Total pre-tax income | $ 118,929 | $ 167,758 | $ 163,068 |
Income Taxes (Provision) Benefi
Income Taxes (Provision) Benefit for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Current Income Tax Expense (Benefit) [Abstract] | |||
Federal | $ 734 | $ (223) | $ (366) |
State | 199 | 444 | 355 |
Foreign | 17,994 | 13,677 | 6,585 |
Total current | 18,927 | 13,898 | 6,574 |
Deferred Income Tax Expense (Benefit) [Abstract] | |||
Deferred federal, state and local, tax expense (benefit) | 4,402 | 7,687 | 1,333 |
Foreign | 1,424 | 996 | 1,603 |
Total deferred | 5,826 | 8,683 | 2,936 |
Provision (benefit) for income taxes | $ 24,753 | $ 22,581 | $ 9,510 |
Income Taxes Difference of Effe
Income Taxes Difference of Effective Tax Rate from Federal Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Disclosure Difference of Effective Tax Rate From Federal Tax Rate [Abstract] | |||
Federal tax, at statutory rate | $ 41,626 | $ 58,725 | $ 57,074 |
State tax, net of federal benefit | (60) | 900 | 355 |
Impact of international operations including withholding taxes and other reserves | 7,143 | (27,042) | (46,632) |
Repatriation of foreign subsidiary earnings | 354 | 21,969 | 20,367 |
Foreign tax credits | (2,382) | (5,143) | (5,489) |
Tax credits (excluding foreign tax credits) | (11,539) | (8,089) | (12,571) |
Amortization of deferred charge | (167) | 1,168 | (2,311) |
Change in deferred tax assets valuation allowance | (21,055) | (26,443) | (5,929) |
Stock-based compensation expense | 3,402 | 2,929 | 2,593 |
Non-deductible meals and entertainment | 1,177 | 1,238 | 1,087 |
Other, net | 6,254 | 2,369 | 966 |
Provision (benefit) for income taxes | $ 24,753 | $ 22,581 | $ 9,510 |
Income Taxes Tax Effects of Tem
Income Taxes Tax Effects of Temporary Differences and Carryforwards on Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Deferred Tax Assets, Net [Abstract] | ||
Reserves and allowances | $ 12,954 | $ 11,188 |
Accrued expenses not currently deductible | 12,446 | 21,475 |
Stock-based compensation expense | 8,259 | 6,988 |
Net operating loss carryforwards | 24,138 | 34,618 |
Tax credit carryforwards | 87,443 | 74,235 |
Purchased technology and other intangible assets | 4,219 | 3,047 |
Deferred revenue | 4,541 | 2,002 |
Other, net | 8,394 | 6,762 |
Total gross deferred tax assets | 162,394 | 160,315 |
Less valuation allowance | (63,554) | (91,956) |
Deferred tax assets | 98,840 | 68,359 |
Deferred Tax Liabilities, Net [Abstract] | ||
Intangible assets | (13,163) | (12,976) |
Undistributed foreign earnings | (87,390) | (50,163) |
Convertible debt | (6,322) | (8,918) |
Deferred tax liabilities, property, plant and equipment | (1,715) | (997) |
Deferred tax liabilities, gross | (108,590) | (73,054) |
Deferred tax liabilities, net | $ (9,750) | $ (4,695) |
Income Taxes Foreign and U.S. F
Income Taxes Foreign and U.S. Federal and State Tax Carryforwards for Income Tax Purposes (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2016USD ($) | |
Operating Loss and Tax Credit Carry Forward | |
Foreign net operating loss carryforwards | $ 20,093 |
Internal Revenue Service (IRS) | |
Operating Loss and Tax Credit Carry Forward | |
Research and experimentation credit carryforward | 88,987 |
Net operating loss carryforward | 120,030 |
Foreign tax credits | 19,433 |
Alternative minimum tax credits | 2,682 |
Miscellaneous | $ 1,843 |
Internal Revenue Service (IRS) | Minimum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of operating loss carryforwards | Jan. 31, 2020 |
Internal Revenue Service (IRS) | Maximum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of operating loss carryforwards | Jan. 31, 2036 |
State and Local Jurisdiction | |
Operating Loss and Tax Credit Carry Forward | |
Research and experimentation credit carryforward | $ 21,842 |
Net operating loss carryforward | 202,389 |
Miscellaneous | $ 1,038 |
State and Local Jurisdiction | Minimum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of operating loss carryforwards | Jan. 31, 2017 |
State and Local Jurisdiction | Maximum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of operating loss carryforwards | Jan. 31, 2036 |
Research Tax Credit Carryforward | Internal Revenue Service (IRS) | Minimum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of tax credit carryforwards | Jan. 31, 2019 |
Research Tax Credit Carryforward | Internal Revenue Service (IRS) | Maximum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of tax credit carryforwards | Jan. 31, 2036 |
Research Tax Credit Carryforward | State and Local Jurisdiction | Minimum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of tax credit carryforwards | Jan. 31, 2017 |
Research Tax Credit Carryforward | State and Local Jurisdiction | Maximum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of tax credit carryforwards | Jan. 31, 2031 |
Foreign Tax Credits | Internal Revenue Service (IRS) | Minimum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of tax credit carryforwards | Jan. 31, 2017 |
Foreign Tax Credits | Internal Revenue Service (IRS) | Maximum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of tax credit carryforwards | Jan. 31, 2026 |
Childcare Tax Credit | Internal Revenue Service (IRS) | Minimum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of tax credit carryforwards | Jan. 31, 2023 |
Childcare Tax Credit | Internal Revenue Service (IRS) | Maximum | |
Operating Loss and Tax Credit Carry Forward | |
Expiration date of tax credit carryforwards | Jan. 31, 2036 |
Income Taxes Schedule of Change
Income Taxes Schedule of Changes in Unrecognized Tax Position (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Disclosure Schedule of Changes in Unrecognized Tax Position [Abstract] | |||
Unrecognized tax benefits | $ 48,674 | $ 39,771 | $ 31,321 |
Gross increases-tax positions in prior period | 6,548 | 7,022 | |
Gross decreases-tax positions in prior period | (1,702) | (279) | |
Gross increases-tax positions in current period | 6,509 | 4,904 | |
Settlements | 0 | (126) | |
Lapse of statute of limitations | (1,125) | (2,709) | |
Unrecognized tax benefits, decrease resulting from foreign currency translation | $ (1,327) | $ (362) |
Income Taxes Income Taxes - Add
Income Taxes Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Income Taxes | |||
Deferred tax assets, tax deferred expense, compensation and benefits, employee benefits | $ 48,591 | $ 43,206 | |
Undistributed earnings of foreign subsidiaries | 461,438 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 1,717 | 884 | |
Unrecognized tax benefits, income tax penalties And interest (benefit) | $ (1,710) | ||
Income tax penalties and interest accrued | 9,817 | $ 8,366 | |
Unrecognized tax benefits that would impact effective tax rate | $ 25,162 | ||
Earliest Tax Year | Domestic Tax Authority | |||
Income Taxes | |||
Open tax year | 2,013 | ||
Earliest Tax Year | Ireland | |||
Income Taxes | |||
Open tax year | 2,012 | ||
Earliest Tax Year | Japan | |||
Income Taxes | |||
Open tax year | 2,011 | ||
Earliest Tax Year | India | |||
Income Taxes | |||
Open tax year | 2,009 | ||
Earliest Tax Year | Israel | |||
Income Taxes | |||
Open tax year | 2,012 | ||
Latest Tax Year | Domestic Tax Authority | |||
Income Taxes | |||
Open tax year | 2,016 | ||
Latest Tax Year | Ireland | |||
Income Taxes | |||
Open tax year | 2,016 | ||
Latest Tax Year | Japan | |||
Income Taxes | |||
Open tax year | 2,016 | ||
Latest Tax Year | India | |||
Income Taxes | |||
Open tax year | 2,016 | ||
Latest Tax Year | Israel | |||
Income Taxes | |||
Open tax year | 2,016 | ||
Minimum | |||
Income Taxes | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 0 | ||
Maximum | |||
Income Taxes | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 3,000 |
Commitments and Contingencies R
Commitments and Contingencies Rent Expense Under Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent Expense | $ 27,040 | $ 28,114 | $ 27,240 |
Commitments and Contingencies F
Commitments and Contingencies Future Minimum Lease Payments Under all Non-cancelable Operating Leases (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future minimum payments due, next twelve months | $ 20,204 |
Future minimum payments, due in two years | 15,600 |
Future minimum payments, due in three years | 12,086 |
Future minimum payments, due in four years | 9,761 |
Future minimum payments, due in five years | 7,680 |
Future minimum payments, due thereafter | 8,724 |
Future minimum payments due | $ 74,055 |
Commitments and Contingencies G
Commitments and Contingencies Gain Contingencies, Unrecorded Amount (Details) $ in Millions | Jan. 31, 2016USD ($) |
Gain Contingencies [Line Items] | |
Gain Contingency, Unrecorded Amount | $ 36 |
Commitments and Contingencies L
Commitments and Contingencies Loss Contingency, Inestimable Loss (Details) | 12 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency, Inestimable Loss | We do not have sufficient information upon which to determine that a loss in connection with these matters is probable, reasonably possible, or estimable, and thus no liability has been established nor has a range of loss been disclosed. |
Stockholders' Equity Dividend (
Stockholders' Equity Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2016 | Mar. 10, 2016 | Mar. 03, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Dividends Payable [Line Items] | ||||||||||||||
Dividends Payable, Date Declared | Nov. 19, 2015 | Aug. 20, 2015 | May 22, 2015 | Feb. 26, 2015 | Nov. 20, 2014 | Aug. 21, 2014 | May 22, 2014 | Feb. 27, 2014 | ||||||
Dividends Payable, Date of Record | Dec. 15, 2015 | Sep. 10, 2015 | Jun. 10, 2015 | Mar. 10, 2015 | Dec. 10, 2014 | Sep. 10, 2014 | Jun. 10, 2014 | Mar. 10, 2014 | ||||||
Dividends Payable, Date to be Paid | Jan. 4, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jan. 2, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | ||||||
Cash dividends declared per common share | $ 0.055 | $ 0.055 | $ 0.055 | $ 0.055 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.22 | $ 0.20 | $ 0.18 | |||
Payments of Dividends | $ 6,326 | $ 6,491 | $ 6,389 | $ 6,383 | $ 5,743 | $ 5,697 | $ 5,693 | $ 5,778 | $ 25,590 | $ 22,911 | $ 20,398 | |||
Subsequent Event | ||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||
Dividends Payable, Date Declared | Mar. 3, 2016 | |||||||||||||
Dividends Payable, Date of Record | Mar. 10, 2016 | |||||||||||||
Dividends Payable, Date to be Paid | Mar. 31, 2016 | |||||||||||||
Cash dividends declared per common share | $ 0.055 |
Employee Stock and Savings Pl90
Employee Stock and Savings Plans Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Equity instruments other than options, nonvested, number | 4,117 | 4,246 | |
Equity instruments other than options, nonvested, weighted average grant date fair value | $ 22.35 | $ 19.63 | |
Equity instruments other than options, grants in period | 1,711 | ||
Weighted average grant date fair value | $ 24.10 | $ 21.52 | $ 22.42 |
Equity instruments other than options, vested in period | (1,586) | ||
Equity instruments other than options, vested in period, weighted average grant date fair value | $ 17.35 | ||
Equity instruments other than options, forfeited in period | (254) | ||
Equity instruments other than options, forfeitures, weighted average grant date fair value | $ 19.95 | ||
Equity instruments other than options, outstanding, weighted average remaining contractual terms | 1 year 7 months 13 days | ||
Equity instruments other than options, aggregate intrinsic value, nonvested | $ 71,561 | ||
Equity instruments other than options, vested in period, fair value | $ 27,527 | $ 22,874 | $ 17,736 |
Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Options, outstanding, number | 2,471 | 3,152 | |
Options, outstanding, weighted average exercise price | $ 9.66 | $ 9.73 | |
Options, grants in period, gross | 0 | ||
Options, grants in period, weighted average exercise price | $ 0 | ||
Options, exercises in period | (639) | ||
Options, exercises in period, weighted average exercise price | $ 9.79 | ||
Options, forfeitures in period | (26) | ||
Options, forfeitures in period, weighted average exercise price | $ 16.20 | ||
Options, expirations in period | (16) | ||
Options, expirations in period, weighted average exercise price | $ 8.26 | ||
Options, outstanding, weighted average remaining contractual term | 3 years 11 months 23 days | ||
Options, outstanding, intrinsic value | $ 19,085 | ||
Options, exercisable, number | 2,395 | ||
Options, exercisable, weighted average exercise price | $ 9.42 | ||
Options, exercisable, weighted average remaining contractual term | 3 years 10 months 24 days | ||
Options, exercisable, intrinsic value | $ 19,058 | ||
Options, vested and expected to vest, outstanding, number | 2,471 | ||
Options, vested and expected to vest, outstanding, weighted average exercise price | $ 9.66 | ||
Options, vested and expected to vest, outstanding, weighted average remaining contractual term | 3 years 11 months 23 days | ||
Options, vested and expected to vest, outstanding, aggregate intrinsic value | $ 19,085 | ||
Options, exercises in period, intrinsic value | 9,440 | $ 4,601 | 26,769 |
Proceeds from stock options exercised | $ 6,260 | $ 4,636 | $ 38,830 |
Expiry period from date of grant | 10 years | ||
Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Requisite service period | 4 years | ||
Number of shares available for grant | 4,181 | ||
Omnibus Incentive Plan | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Requisite service period | 3 years | ||
Employee Stock Purchase Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock issued during period, shares, employee stock purchase plans | 1,538 | 1,389 | 1,554 |
Proceeds from issuance of shares under incentive and share-based compensation plans, excluding stock options | $ 26,511 | $ 25,642 | $ 23,895 |
Employee stock purchase plan weighted average purchase price | $ 17.24 | $ 18.47 | $ 15.38 |
Employee stock purchase plan maximum number of shares per buy date that may be purchased by eligible participants | 6 | ||
Discounted price from market price offering | 85.00% | ||
Available for future purchase employee stock purchase plan shares | 3,620 |
Employee Stock and Savings Pl91
Employee Stock and Savings Plans Summary of Weighted Average Grant Date Fair Values (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted average grant date fair value | $ 24.10 | $ 21.52 | $ 22.42 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted average grant date fair value | $ 5.08 | $ 4.81 | $ 4.30 |
Employee Stock and Savings Pl92
Employee Stock and Savings Plans Fair Value Calculation Assumptions (Details) - Employee Stock Purchase Plan | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions | |||
Risk-free interest rate, minimum | 0.08% | 0.05% | 0.09% |
Risk-free interest rate, maximum | 0.31% | 0.09% | 0.14% |
Dividend yield | 0.90% | 0.80% | 0.50% |
Expected term | 6 months | 6 months | 6 months |
Volatility, minimum | 23.00% | 22.00% | 22.00% |
Volatility, maximum | 36.00% | 23.00% | 33.00% |
Weighted average volatility rate | 25.00% | 22.00% | 29.00% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions | |||
Dividend yield | 0.80% | 0.80% | 0.00% |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions | |||
Dividend yield | 1.20% | 0.90% | 1.00% |
Employee Stock and Savings Pl93
Employee Stock and Savings Plans Stock Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Equity plan-related compensation expense | $ 40,497 | $ 35,807 | $ 29,350 |
Tax effect of the exercise of stock options | 217 | 280 | 386 |
Cost of goods sold | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Equity plan-related compensation expense | 2,607 | 2,304 | 1,992 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Equity plan-related compensation expense | 16,207 | 14,027 | 11,182 |
Selling and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Equity plan-related compensation expense | 9,623 | 9,103 | 7,777 |
General and administration | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Equity plan-related compensation expense | 12,060 | $ 10,373 | $ 8,399 |
Restricted Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 73,099 | ||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 4 months 24 days | ||
Employee Stock Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 386 | ||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 4 months 24 days |
Employee Savings Plans 2 (Detai
Employee Savings Plans 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Disclosure Matching Contributions To Savings Plans | |||
Defined contribution plan employer matching contribution percent of eligible contributions | 50.00% | ||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 6.00% | ||
Defined contribution plan vesting term | 5 years | ||
Employers matching contribution, annual vesting percentage | 20.00% | ||
Employer matching contribution | $ 8,930 | $ 8,190 | $ 7,708 |
Incentive Stock Rights - Additi
Incentive Stock Rights - Additional Information (Details) - shares | 3 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2010 | Jun. 24, 2010 | |
Class of Stock | |||
Incentive stock purchase right adoption date | Jun. 24, 2010 | ||
Dividend distribution of rights declared for each outstanding share of common stock | 1 | ||
Incentive Stock Rights Dividend Date Of Record | Jul. 6, 2010 | ||
Date on which rights expire | Jun. 30, 2015 |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Disclosure Computation Of Basic And Diluted Net Income Per Share [Abstract] | |||||||||||
Net income attributable to Mentor Graphics shareholders | $ 60,271 | $ 14,679 | $ 31,212 | $ (9,885) | $ 114,488 | $ 21,030 | $ 14,172 | $ (2,551) | $ 96,277 | $ 147,139 | $ 155,258 |
Adjustment of noncontrolling interest to redemption value | $ 0 | $ 133 | $ (144) | $ 269 | $ (1,174) | $ (267) | $ 895 | $ 667 | 258 | 121 | (4,486) |
Adjusted net income attributable to Mentor Graphics shareholders | $ 96,535 | $ 147,260 | $ 150,772 | ||||||||
Weighted average common shares used to calculate basic net income per share | 116,701 | 114,635 | 113,671 | ||||||||
Employee stock options, restricted stock units and employee stock purchase plan | 2,562 | 2,443 | 3,031 | ||||||||
Weighted average common and potential common shares used to calculate diluted net income per share | 119,263 | 117,078 | 116,702 | ||||||||
Basic net income per share | $ 0.52 | $ 0.13 | $ 0.27 | $ (0.08) | $ 0.98 | $ 0.18 | $ 0.13 | $ (0.02) | $ 0.83 | $ 1.28 | $ 1.33 |
Diluted net income per share | $ 0.51 | $ 0.12 | $ 0.26 | $ (0.08) | $ 0.96 | $ 0.18 | $ 0.13 | $ (0.02) | $ 0.81 | $ 1.26 | $ 1.29 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Adjustment for convertible debt interest, net of tax to be forfeited upon conversion of 4.00% Debentures | $ 2,074 | $ 2,075 | $ 2,075 | ||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 2,046 | 1,531 | 1,195 | ||||||||
Restricted Stock Units (RSUs) | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 18 | 566 | ||||||||
Employee Stock Options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 14 | 518 | ||||||||
ESPP Purchase Right [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 887 | 111 | ||||||||
Convertible Debt [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 2,046 | 612 | 0 |
Accumulated Other Comprehensi97
Accumulated Other Comprehensive Loss Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Accumulated Other Comprehensive Loss | ||
Foreign currency translation adjustment | $ (21,013) | $ (12,044) |
Unrealized gain (loss) on derivatives, net of tax | (36) | 42 |
Pension liability | (51) | 115 |
Accumulated other comprehensive loss | $ (21,100) | $ (11,887) |
Special Charges - Additional In
Special Charges - Additional Information (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Disclosure Special Charges Additional Information [Abstract] | |||
Restructuring Reserve, Noncurrent | $ 252 | $ 587 | |
Restructuring Reserve, Current | $ 3,006 | $ 4,265 | $ 7,259 |
Special Charges Changes in Accr
Special Charges Changes in Accrued Special Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Restructuring Cost and Reserve | ||||
Restructuring Reserve | $ 3,006 | $ 4,517 | $ 7,846 | $ 5,541 |
Special charges | 45,081 | 23,490 | 16,929 | |
Payments for Restructuring | (46,592) | (26,819) | (14,624) | |
Early Retirement Benefits [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve | 0 | 0 | ||
Special charges | 25,232 | 0 | 0 | |
Payments for Restructuring | (25,232) | |||
Employee Severance | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve | 1,935 | 370 | 1,004 | 2,028 |
Special charges | 13,496 | 3,535 | 4,392 | |
Payments for Restructuring | $ (11,931) | $ (4,169) | $ (5,416) | |
Percentage of termination benefit paid | 86.00% | 90.00% | 80.00% | |
Litigation Costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve | $ 311 | $ 3,406 | $ 4,855 | 624 |
Special charges | 4,118 | 18,408 | 11,597 | |
Payments for Restructuring | (7,213) | (19,857) | (7,366) | |
Other Restructuring | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve | 760 | 741 | 1,987 | $ 2,889 |
Special charges | 2,235 | 1,547 | 940 | |
Payments for Restructuring | $ (2,216) | $ (2,793) | $ (1,842) |
Other Income (Expense), Net Oth
Other Income (Expense), Net Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 1,870 | $ 1,723 | $ 2,360 |
Foreign currency exchange gain (loss) | 199 | (1,152) | (1,872) |
Other, net | (457) | (1,348) | (1,008) |
Other income (expense), net | $ 1,612 | $ (777) | $ (520) |
Revenue Recognized From Related
Revenue Recognized From Related Party (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Related Party Transaction | |||
Revenue from related party | $ 25,059 | $ 32,594 | $ 85,037 |
Percentage of related party revenue | 2.10% | 2.60% | 7.40% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Related Party Transaction | ||
Accounts receivable due from related party | $ 23,498 | $ 46,661 |
Supplemental Cash Flow Infor103
Supplemental Cash Flow Information Supplemental cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Schedule Of Cash Flow Supplemental [Line Items] | |||
Interest Paid | $ 12,094 | $ 11,937 | $ 12,225 |
Income Taxes Paid, Net | 15,103 | 11,427 | 11,871 |
Payments to Noncontrolling Interests | 11,270 | $ 0 | $ 0 |
Calypto | |||
Schedule Of Cash Flow Supplemental [Line Items] | |||
Payments to Noncontrolling Interests | $ 11,088 |
Operating Segment (Details)
Operating Segment (Details) | 12 Months Ended |
Jan. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Jul. 31, 2014USD ($) | Apr. 30, 2014USD ($) | Jan. 31, 2016USD ($)customer | Jan. 31, 2015USD ($)customer | Jan. 31, 2014USD ($)customer | |
Concentration Risk [Line Items] | |||||||||||
Total revenues | $ 337,267 | $ 290,516 | $ 281,062 | $ 272,143 | $ 439,066 | $ 292,683 | $ 260,233 | $ 252,151 | $ 1,180,988 | $ 1,244,133 | $ 1,156,373 |
Customers accounting for ten percent or more of net revenue | customer | 0 | 0 | 0 | ||||||||
KOREA, REPUBLIC OF | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Total revenues | $ 135,696 | ||||||||||
Customer percent of total revenues | 10.90% | ||||||||||
Customer concentration risk | Sales Revenue, Net [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Customer percent of total revenues | 10.00% | 10.00% | 10.00% |
Segment Reporting Revenues Rela
Segment Reporting Revenues Related to Operations in Geographic Regions and Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Revenues: | |||||||||||
Total revenues | $ 337,267 | $ 290,516 | $ 281,062 | $ 272,143 | $ 439,066 | $ 292,683 | $ 260,233 | $ 252,151 | $ 1,180,988 | $ 1,244,133 | $ 1,156,373 |
United States | |||||||||||
Revenues: | |||||||||||
Total revenues | 488,148 | 542,229 | 497,954 | ||||||||
Europe | |||||||||||
Revenues: | |||||||||||
Total revenues | 254,827 | 255,943 | 241,417 | ||||||||
Japan | |||||||||||
Revenues: | |||||||||||
Total revenues | 87,119 | 87,725 | 113,796 | ||||||||
Asia | |||||||||||
Revenues: | |||||||||||
Total revenues | 335,833 | 341,474 | 287,956 | ||||||||
Americas | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 15,061 | $ 16,762 | $ 15,250 |
Segment Reporting Total Propert
Segment Reporting Total Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Property, plant, and equipment, net: | ||
Property, plant, and equipment, net | $ 182,092 | $ 170,737 |
United States | ||
Property, plant, and equipment, net: | ||
Property, plant, and equipment, net | 133,432 | 127,631 |
Europe | ||
Property, plant, and equipment, net: | ||
Property, plant, and equipment, net | 33,070 | 31,751 |
Japan | ||
Property, plant, and equipment, net: | ||
Property, plant, and equipment, net | 2,220 | 882 |
Asia | ||
Property, plant, and equipment, net: | ||
Property, plant, and equipment, net | 13,191 | 10,295 |
Americas | ||
Property, plant, and equipment, net: | ||
Property, plant, and equipment, net | $ 179 | $ 178 |
Quarterly Financial Informat108
Quarterly Financial Information - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 337,267 | $ 290,516 | $ 281,062 | $ 272,143 | $ 439,066 | $ 292,683 | $ 260,233 | $ 252,151 | $ 1,180,988 | $ 1,244,133 | $ 1,156,373 |
Gross profit | 289,812 | 243,627 | 234,799 | 223,092 | 388,666 | 245,142 | 211,304 | 194,708 | 991,330 | 1,039,820 | 969,266 |
Operating Income | 79,454 | 25,688 | 39,266 | (7,663) | 139,532 | 29,723 | 16,912 | 1,644 | 136,745 | 187,811 | 183,040 |
Net income attributable to Mentor Graphics shareholders | $ 60,271 | $ 14,679 | $ 31,212 | $ (9,885) | $ 114,488 | $ 21,030 | $ 14,172 | $ (2,551) | $ 96,277 | $ 147,139 | $ 155,258 |
Basic | $ 0.52 | $ 0.13 | $ 0.27 | $ (0.08) | $ 0.98 | $ 0.18 | $ 0.13 | $ (0.02) | $ 0.83 | $ 1.28 | $ 1.33 |
Diluted | $ 0.51 | $ 0.12 | $ 0.26 | $ (0.08) | $ 0.96 | $ 0.18 | $ 0.13 | $ (0.02) | $ 0.81 | $ 1.26 | $ 1.29 |
Adjustment of noncontrolling interest to redemption value | $ 0 | $ 133 | $ (144) | $ 269 | $ (1,174) | $ (267) | $ 895 | $ 667 | $ 258 | $ 121 | $ (4,486) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Feb. 24, 2016 | Feb. 23, 2016 | Feb. 18, 2016 | Jan. 31, 2016 |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Stock Repurchased and Retired During Period, Shares | 8,060 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 18.12 | |||
Stock Repurchased and Retired During Period, Value | $ 146,050 | |||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | $ 150,000 | |||
Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Maximum amount available for dividends and stock repurchase dollar limit | $ 50,000 | |||
Maximum amount available for dividend distribution and stock repurchase percent of cumulative net income | 70.00% | |||
Balance Available For Dividend Payment And Stock Repurchase | $ 112,038 | |||
Revolving Credit Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Maximum amount available for dividends and stock repurchase dollar limit | $ 200,000 | |||
Maximum amount available for dividend distribution and stock repurchase percent of cumulative net income | 70.00% |