Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jan. 31, 2015 | Feb. 20, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Jan-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SNPS | |
Entity Registrant Name | SYNOPSYS INC | |
Entity Central Index Key | 883241 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 153,686,533 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Current assets: | |||
Cash and cash equivalents | $796,824 | $985,762 | [1] |
Short-term investments | 120,238 | 0 | [1] |
Total cash, cash equivalents and short-term investments | 917,062 | 985,762 | [1] |
Accounts receivable, net | 283,007 | 326,727 | [1] |
Deferred income taxes | 95,800 | 111,449 | [1] |
Income taxes receivable and prepaid taxes | 28,089 | 26,496 | [1] |
Prepaid and other current assets | 92,315 | 54,301 | [1] |
Total current assets | 1,416,273 | 1,504,735 | [1] |
Property and equipment, net | 256,092 | 249,098 | [1] |
Goodwill | 2,245,920 | 2,255,708 | [1] |
Intangible assets, net | 332,385 | 365,030 | [1] |
Long-term prepaid taxes | 4,501 | 17,645 | [1] |
Long-term deferred income taxes | 227,715 | 208,156 | [1] |
Other long-term assets | 179,463 | 175,127 | [1] |
Total assets | 4,662,349 | 4,775,499 | [1] |
Current liabilities: | |||
Accounts payable and accrued liabilities | 242,335 | 397,113 | [1] |
Accrued income taxes | 12,024 | 31,404 | [1] |
Deferred revenue | 823,745 | 928,242 | [1] |
Short-term debt | 265,000 | 30,000 | [1] |
Total current liabilities | 1,343,104 | 1,386,759 | [1] |
Long-term accrued income taxes | 42,154 | 50,952 | [1] |
Long-term deferred revenue | 98,413 | 77,646 | [1] |
Long-term debt | 37,500 | 45,000 | [1] |
Other long-term liabilities | 204,157 | 158,972 | [1] |
Total liabilities | 1,725,328 | 1,719,329 | [1] |
Stockholders’ equity: | |||
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding | 0 | 0 | [1] |
Common stock, $0.01 par value: 400,000 shares authorized; 153,457 and 155,965 shares outstanding, respectively | 1,535 | 1,560 | [1] |
Capital in excess of par value | 1,586,965 | 1,614,603 | [1] |
Retained earnings | 1,608,758 | 1,551,592 | [1] |
Treasury stock, at cost: 3,807 and 1,299 shares, respectively | -162,992 | -49,496 | [1] |
Accumulated other comprehensive income (loss) | -97,245 | -62,089 | [1] |
Total stockholders’ equity | 2,937,021 | 3,056,170 | [1] |
Total liabilities and stockholders’ equity | $4,662,349 | $4,775,499 | [1] |
[1] | Derived from audited financial statements. |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | |
Statement of Financial Position [Abstract] | |||
Preferred Stock, par value | $0.01 | $0.01 | [1] |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 | [1] |
Preferred Stock, shares outstanding | 0 | 0 | [1] |
Common Stock, par value | $0.01 | $0.01 | [1] |
Common Stock, shares authorized | 400,000,000 | 400,000,000 | [1] |
Common Stock, shares outstanding | 153,457,000 | 155,965,000 | [1] |
Treasury stock, shares | 3,807,000 | 1,299,000 | [1] |
[1] | Derived from audited financial statements. |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Revenue: | ||
Time-based license | $431,026 | $400,146 |
Upfront license | 46,480 | 33,972 |
Maintenance and service | 64,537 | 44,833 |
Total revenue | 542,043 | 478,951 |
Cost of revenue: | ||
License | 70,784 | 62,825 |
Maintenance and service | 27,983 | 20,271 |
Amortization of intangible assets | 25,866 | 22,753 |
Total cost of revenue | 124,633 | 105,849 |
Gross margin | 417,410 | 373,102 |
Operating expenses: | ||
Research and development | 181,610 | 167,543 |
Sales and marketing | 106,169 | 105,792 |
General and administrative | 36,354 | 34,233 |
Amortization of intangible assets | 6,442 | 5,378 |
Restructuring charges | 15,336 | 0 |
Total operating expenses | 345,911 | 312,946 |
Operating income | 71,499 | 60,156 |
Other income (expense), net | 5,116 | 11,028 |
Income before provision for income taxes | 76,615 | 71,184 |
Provision (benefit) for income taxes | 11,426 | 3,488 |
Net income | $65,189 | $67,696 |
Net income per share: | ||
Basic (in USD per share) | $0.42 | $0.44 |
Diluted (in USD per share) | $0.41 | $0.43 |
Shares used in computing per share amounts: | ||
Basic (shares) | 154,458 | 154,066 |
Diluted (shares) | 157,206 | 156,756 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $65,189 | $67,696 |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | -23,453 | -13,849 |
Changes in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented | 17 | 0 |
Cash flow hedges: | ||
Deferred gains (losses), net of tax of $4,845 and $1,329, respectively | -12,775 | -575 |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(390) and $294, respectively | 1,055 | -3,306 |
Other comprehensive income (loss), net of tax effects | -35,156 | -17,730 |
Comprehensive income | $30,033 | $49,966 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Deferred gains (losses), tax | $4,845 | $1,329 |
Reclassification adjustment on deferred (gains) losses included in net income, tax | -390 | 294 |
Changes in unrealized gains (losses) on available-for-sale securities, tax | $0 | $0 |
Unaudited_Condensed_Consolidat5
Unaudited Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | |
Cash flow from operating activities: | |||
Net income | $65,189 | $67,696 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Amortization and depreciation | 50,529 | 43,714 | |
Stock compensation | 20,581 | 18,118 | |
Allowance for doubtful accounts | 300 | -400 | |
Deferred income taxes | -158 | 5,891 | |
(Gain) loss on sale of investments | -12 | -6,529 | |
Net changes in operating assets and liabilities, net of acquired assets and liabilities: | |||
Accounts receivable | 40,857 | 7,910 | |
Prepaid and other current assets | -42,860 | -13,635 | |
Other long-term assets | -7,597 | -6,695 | |
Accounts payable and other liabilities | -125,320 | -134,902 | |
Income taxes | -14,024 | -10,068 | |
Deferred revenue | -74,828 | -44,992 | |
Net cash used in operating activities | -87,343 | -73,892 | |
Cash flows from investing activities: | |||
Proceeds from sales of long-term investments | 0 | 6,791 | |
Proceeds from sales and maturities of short-term investments | 8,012 | 0 | |
Purchases of short-term investments | -128,427 | 0 | |
Purchases of property and equipment | -19,607 | -14,353 | |
Cash paid for intangible assets | 0 | -900 | |
Capitalization of software development costs | -909 | -902 | |
Net cash used in investing activities | -140,931 | -9,364 | |
Cash flows from financing activities: | |||
Proceeds from credit facility | 250,000 | 0 | |
Repayment of debt | -22,723 | -7,748 | |
Issuances of common stock | 10,542 | 21,581 | |
Purchase of equity forward contract | -36,000 | 0 | |
Purchases of treasury stock | -144,000 | [1] | -54,747 |
Other | -14 | -111 | |
Net cash provided by (used in) financing activities | 57,805 | -41,025 | |
Effect of exchange rate changes on cash and cash equivalents | -18,469 | -5,107 | |
Net change in cash and cash equivalents | -188,938 | -129,388 | |
Cash and cash equivalents, beginning of year | 985,762 | [2] | 1,022,441 |
Cash and cash equivalents, end of period | $796,824 | $893,053 | |
[1] | Does not include $36.0 million equity forward contract related to the above-referenced 2015 ASR. | ||
[2] | Derived from audited financial statements. |
Description_of_Business
Description of Business | 3 Months Ended |
Jan. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business |
Synopsys, Inc. (Synopsys or the Company) is a global leader in providing software, intellectual property and services used to design integrated circuits and electronic systems. The Company supplies the electronic design automation (EDA) software that engineers use to design, create prototypes for and test integrated circuits, also known as chips. The Company also offers intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. The Company provides software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. To complement these product offerings, the Company provides technical services to support these solutions and help its customers develop chips and electronic systems. The Company is also a leading provider of software tools that developers use to improve the quality, security and time-to-market of software code in a wide variety of industries, including electronics, financial services, energy, and industrials. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
The Company has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnote disclosures it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its unaudited condensed consolidated balance sheets, results of operations, comprehensive income and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in Synopsys’ Annual Report on Form 10-K for the fiscal year ended October 31, 2014 as filed with the SEC on December 15, 2014. | |
Use of Estimates. To prepare financial statements in conformity with GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position. | |
Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Fiscal Year End. The Company’s fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. When a 53-week year occurs, the Company includes the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2015 and 2014 are both 52-week years. The first fiscal quarters of fiscal 2015 and 2014 ended on January 31, 2015 and February 1, 2014, respectively, and the prior year ended on November 1, 2014. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. | |
Subsequent Events. The Company has evaluated subsequent events through the date that these unaudited condensed consolidated financial statements were issued. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||
Goodwill as of January 31, 2015 and October 31, 2014 consisted of the following: | ||||||||||||
(in thousands) | ||||||||||||
As of October 31, 2014 | $ | 2,255,708 | ||||||||||
Additions | — | |||||||||||
Effect of foreign currency translation | (9,788 | ) | ||||||||||
As of January 31, 2015 | $ | 2,245,920 | ||||||||||
Intangible assets as of January 31, 2015 consisted of the following: | ||||||||||||
Gross | Accumulated | Net Assets | ||||||||||
Assets | Amortization | |||||||||||
(in thousands) | ||||||||||||
Core/developed technology | $ | 490,929 | $ | 316,714 | $ | 174,215 | ||||||
Customer relationships | 209,984 | 97,829 | 112,155 | |||||||||
Contract rights intangible | 145,616 | 116,389 | 29,227 | |||||||||
Covenants not to compete | 2,530 | 2,530 | — | |||||||||
Trademarks and trade names | 18,779 | 8,464 | 10,315 | |||||||||
In-process research and development (IPR&D)(1) | 2,400 | — | 2,400 | |||||||||
Capitalized software development costs | 22,738 | 18,665 | 4,073 | |||||||||
Total | $ | 892,976 | $ | 560,591 | $ | 332,385 | ||||||
Intangible assets as of October 31, 2014 consisted of the following: | ||||||||||||
Gross | Accumulated | Net Assets | ||||||||||
Assets | Amortization | |||||||||||
(in thousands) | ||||||||||||
Core/developed technology | $ | 490,242 | $ | 298,705 | $ | 191,537 | ||||||
Customer relationships | 210,172 | 92,146 | 118,026 | |||||||||
Contract rights intangible | 146,364 | 109,067 | 37,297 | |||||||||
Covenants not to compete | 2,530 | 2,530 | — | |||||||||
Trademarks and trade names | 18,779 | 7,765 | 11,014 | |||||||||
In-process research and development (IPR&D)(1) | 3,086 | — | 3,086 | |||||||||
Capitalized software development costs | 21,829 | 17,759 | 4,070 | |||||||||
Total | $ | 893,002 | $ | 527,972 | $ | 365,030 | ||||||
-1 | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. | |||||||||||
Amortization expense related to intangible assets consisted of the following: | ||||||||||||
Three Months Ended | ||||||||||||
January 31, | ||||||||||||
2015 | 2014 | |||||||||||
(in thousands) | ||||||||||||
Core/developed technology | $ | 18,009 | $ | 15,621 | ||||||||
Customer relationships | 5,748 | 5,053 | ||||||||||
Contract rights intangible | 7,852 | 7,126 | ||||||||||
Covenants not to compete | — | 17 | ||||||||||
Trademarks and trade names | 699 | 314 | ||||||||||
Capitalized software development costs(1) | 906 | 864 | ||||||||||
Total | $ | 33,214 | $ | 28,995 | ||||||||
-1 | Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed consolidated statements of operations. | |||||||||||
The following table presents the estimated future amortization of intangible assets: | ||||||||||||
Fiscal Year | (in thousands) | |||||||||||
Remainder of fiscal 2015 | $ | 95,690 | ||||||||||
2016 | 92,056 | |||||||||||
2017 | 55,627 | |||||||||||
2018 | 40,298 | |||||||||||
2019 | 20,645 | |||||||||||
2020 and thereafter | 25,669 | |||||||||||
IPR&D(1) | 2,400 | |||||||||||
Total | $ | 332,385 | ||||||||||
-1 | IPR&D projects are estimated to be completed within one year as of January 31, 2015. Assets are amortized over their useful life upon completion of the project or are written off upon abandonment. |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities | 3 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Financial Assets And Liabilities [Abstract] | ||||||||||||||||||||
Financial Assets and Liabilities | Financial Assets and Liabilities | |||||||||||||||||||
Cash equivalents and short-term investments. The Company classifies time deposits and other investments with maturities less than three months as cash equivalents. Debt securities and other investments with maturities longer than three months are classified as short-term investments. The Company’s investments generally have a term of less than three years and are classified as available-for-sale carried at fair value, with unrealized gains and losses included in the unaudited condensed consolidated balance sheet as a component of accumulated other comprehensive income (loss), net of tax. Those unrealized gains or losses deemed other than temporary are reflected in other income (expense), net. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net. | ||||||||||||||||||||
During the first fiscal quarter of 2015, the Company made investments in available-for-sale securities, as follows: | ||||||||||||||||||||
As of January 31, 2015 | Cost | Gross | Gross | Gross | Estimated | |||||||||||||||
Unrealized | Unrealized | Unrealized | Fair Value(1) | |||||||||||||||||
Gains | Losses Less Than 12 Months | Losses 12 Months or Longer | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Certificates of deposit | $ | 2,400 | $ | — | $ | — | $ | — | $ | 2,400 | ||||||||||
Money market funds | 377,370 | — | — | — | 377,370 | |||||||||||||||
Commercial paper | 8,697 | — | — | — | 8,697 | |||||||||||||||
Total: | 388,467 | — | — | — | 388,467 | |||||||||||||||
Short-term investments: | ||||||||||||||||||||
U.S. government agency securities | 17,928 | 8 | — | — | 17,936 | |||||||||||||||
Municipal bonds | 1,405 | — | (2 | ) | — | 1,403 | ||||||||||||||
Certificates of deposit | 3,400 | — | — | — | 3,400 | |||||||||||||||
Commercial paper | 7,090 | — | — | — | 7,090 | |||||||||||||||
Corporate debt securities | 67,160 | 26 | (18 | ) | — | 67,168 | ||||||||||||||
Asset-backed securities | 23,238 | 5 | (2 | ) | — | 23,241 | ||||||||||||||
Total: | 120,221 | 39 | (22 | ) | — | 120,238 | ||||||||||||||
-1 | See Note 5. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. | |||||||||||||||||||
As of January 31, 2015 the stated maturities of the Company's short-term investments are: | ||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Due in 1 year or less | $ | 64,421 | $ | 64,414 | ||||||||||||||||
Due in 1-5 years | 55,800 | 55,824 | ||||||||||||||||||
Total | $ | 120,221 | $ | 120,238 | ||||||||||||||||
Non-marketable equity securities. The Company’s strategic investment portfolio consists of non-marketable equity securities in privately-held companies. The securities accounted for under cost method investments are reported at cost net of impairment losses. Securities accounted for under equity method investments are recorded at cost plus the proportional share of the issuers’ income or loss, which is recorded in the Company’s other income (expense), net. The cost basis of securities sold is based on the specific identification method. Refer to Note 5. Fair Value Measures. | ||||||||||||||||||||
Derivatives. The Company recognizes derivative instruments as either assets or liabilities in the unaudited condensed consolidated financial statements at fair value and provides qualitative and quantitative disclosures about such derivatives. The Company operates internationally and is exposed to potentially adverse movements in foreign currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately one month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. | ||||||||||||||||||||
The duration of forward contracts ranges from approximately one month to 22 months, the majority of which are short-term. The Company does not use foreign currency forward contracts for speculative or trading purposes. The Company enters into foreign exchange forward contracts with high credit quality financial institutions that are rated ‘A’ or above and to date has not experienced nonperformance by counterparties. Further, the Company anticipates continued performance by all counterparties to such agreements. | ||||||||||||||||||||
The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the unaudited condensed consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. | ||||||||||||||||||||
Cash Flow Hedging Activities | ||||||||||||||||||||
Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 22 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to the Company’s foreign currency risk, which can be up to three years. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on the hedged transactions. The effective portion of gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (OCI), in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. The Company expects a majority of the hedge balance in OCI to be reclassified to the statements of operations within the next twelve months. | ||||||||||||||||||||
Hedging effectiveness is evaluated monthly using spot rates, with any gain or loss caused by hedging ineffectiveness recorded in other income (expense), net. The premium/discount component of the forward contracts is recorded to other income (expense), net, and is not included in evaluating hedging effectiveness. | ||||||||||||||||||||
Non-designated Hedging Activities | ||||||||||||||||||||
The Company’s foreign exchange forward contracts that are used to hedge non-functional currency denominated balance sheet assets and liabilities are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the underlying assets and liabilities, which are also recorded in other income (expense), net. The duration of the forward contracts for hedging the Company’s balance sheet exposure is approximately one month. | ||||||||||||||||||||
The Company also has certain foreign exchange forward contracts for hedging certain international revenues and expenses that are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the foreign currency in operating income. The duration of these forward contracts is usually less than one year. The overall goal of the Company’s hedging program is to minimize the impact of currency fluctuations on its net income over its fiscal year. | ||||||||||||||||||||
The effects of the changes in the fair values of non-designated forward contracts are summarized as follows: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
January 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Gain (loss) recorded in other income (expense), net | $ | (2,758 | ) | $ | (943 | ) | ||||||||||||||
The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: | ||||||||||||||||||||
As of January 31, 2015 | As of October 31, 2014 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Total gross notional amount | $ | 732,766 | $ | 793,937 | ||||||||||||||||
Net fair value | $ | (6,894 | ) | $ | (2,455 | ) | ||||||||||||||
The notional amounts for derivative instruments do not represent the amount of the Company’s exposure to market gain or loss. The Company’s exposure to market gain or loss will vary over time as a function of currency exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. | ||||||||||||||||||||
The following represents the unaudited condensed consolidated balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: | ||||||||||||||||||||
Fair values of | Fair values of | |||||||||||||||||||
derivative instruments | derivative instruments | |||||||||||||||||||
designated as hedging | not designated as | |||||||||||||||||||
instruments | hedging instruments | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
As of January 31, 2015 | ||||||||||||||||||||
Other current assets | $ | 16,781 | $ | 1,549 | ||||||||||||||||
Accrued liabilities | $ | 25,210 | $ | 14 | ||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||
Other current assets | $ | 9,299 | $ | 1 | ||||||||||||||||
Accrued liabilities | $ | 11,656 | $ | 99 | ||||||||||||||||
The following table represents the unaudited condensed consolidated statement of operations location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax: | ||||||||||||||||||||
Location of gain (loss) | Amount of gain (loss) | Location of | Amount of | |||||||||||||||||
recognized in OCI on | recognized in OCI on | gain (loss) | gain (loss) | |||||||||||||||||
derivatives | derivatives | reclassified from OCI | reclassified from | |||||||||||||||||
(effective portion) | OCI | |||||||||||||||||||
(effective portion) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three months ended January 31, 2015 | ||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | 2,966 | Revenue | $ | 2,381 | ||||||||||||||
Foreign exchange contracts | Operating expenses | (15,795 | ) | Operating expenses | (3,436 | ) | ||||||||||||||
Total | $ | (12,829 | ) | $ | (1,055 | ) | ||||||||||||||
Three months ended January 31, 2014 | ||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | 3,188 | Revenue | $ | 2,756 | ||||||||||||||
Foreign exchange contracts | Operating expenses | (3,782 | ) | Operating expenses | 550 | |||||||||||||||
Total | $ | (594 | ) | $ | 3,306 | |||||||||||||||
The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense), net: | ||||||||||||||||||||
Foreign exchange contracts | Amount of | Amount of gain (loss) | ||||||||||||||||||
gain (loss) recognized | recognized in income | |||||||||||||||||||
in income statement | statement on | |||||||||||||||||||
on derivatives | derivatives | |||||||||||||||||||
(ineffective | (excluded from | |||||||||||||||||||
portion)(1) | effectiveness testing)(2) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
For the three months ended January 31, 2015 | $ | 740 | $ | 1,072 | ||||||||||||||||
For the three months ended January 31, 2014 | $ | 119 | $ | 1,594 | ||||||||||||||||
-1 | The ineffective portion includes forecast inaccuracies. | |||||||||||||||||||
-2 | The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. |
Fair_Value_Measures
Fair Value Measures | 3 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measures | Fair Value Measures | |||||||||||||||
ASC 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes guidelines and enhances disclosure requirements for fair value measurements. The accounting guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance also establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement: | ||||||||||||||||
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical instruments in active markets; | ||||||||||||||||
Level 2—Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and | ||||||||||||||||
Level 3—Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | ||||||||||||||||
On a recurring basis, the Company measures the fair value of certain of its assets and liabilities, which include cash equivalents, short-term investments, non-qualified deferred compensation plan assets, and foreign currency derivative contracts. | ||||||||||||||||
The Company’s cash equivalents and short-term investments are classified within Level 1 or Level 2 because they are valued using quoted market prices in an active market or alternative independent pricing sources and models utilizing market observable inputs. | ||||||||||||||||
The Company’s non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets and are therefore classified within Level 1. | ||||||||||||||||
The Company’s foreign currency derivative contracts are classified within Level 2 because these contracts are not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments. | ||||||||||||||||
The Company’s borrowings under its credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Refer to Note 7. Credit Facility. | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below as of January 31, 2015: | ||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Description | Total | Quoted Prices in Active | Significant Other | Significant | ||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Certificates of deposit | $ | 2,400 | $ | — | $ | 2,400 | $ | — | ||||||||
Money market funds | 377,370 | 377,370 | — | — | ||||||||||||
Commercial paper | 8,697 | — | 8,697 | — | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. government agency securities | 17,936 | — | 17,936 | — | ||||||||||||
Municipal bonds | 1,403 | — | 1,403 | — | ||||||||||||
Certificates of deposit | 3,400 | — | 3,400 | — | ||||||||||||
Commercial paper | 7,090 | — | 7,090 | — | ||||||||||||
Corporate debt securities | 67,168 | — | 67,168 | — | ||||||||||||
Asset-backed securities | 23,241 | — | 23,241 | — | ||||||||||||
Prepaid and other current assets: | ||||||||||||||||
Foreign currency derivative contracts | 18,330 | — | 18,330 | — | ||||||||||||
Other long-term assets: | ||||||||||||||||
Deferred compensation plan assets | 151,061 | 151,061 | — | — | ||||||||||||
Total assets | $ | 678,096 | $ | 528,431 | $ | 149,665 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities: | ||||||||||||||||
Foreign currency derivative contracts | $ | 25,224 | $ | — | $ | 25,224 | $ | — | ||||||||
Total liabilities | $ | 25,224 | $ | — | $ | 25,224 | $ | — | ||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2014: | ||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Description | Total | Quoted Prices in Active | Significant Other | Significant | ||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 409,064 | $ | 409,064 | $ | — | $ | — | ||||||||
Prepaid and other current assets: | ||||||||||||||||
Foreign currency derivative contracts | 9,300 | — | 9,300 | — | ||||||||||||
Other long-term assets: | ||||||||||||||||
Deferred compensation plan assets | 145,508 | 145,508 | — | — | ||||||||||||
Total assets | $ | 563,872 | $ | 554,572 | $ | 9,300 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities: | ||||||||||||||||
Foreign currency derivative contracts | $ | 11,755 | $ | — | $ | 11,755 | $ | — | ||||||||
Total liabilities | $ | 11,755 | $ | — | $ | 11,755 | $ | — | ||||||||
Assets/Liabilities Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||
Non-Marketable Equity Securities | ||||||||||||||||
Equity investments in privately-held companies, also called non-marketable equity securities are accounted for using either the cost or equity method of accounting. | ||||||||||||||||
The non-marketable equity securities are measured and recorded at fair value when an event or circumstance which impacts the fair value of these securities indicates an other-than-temporary decline in value has occurred. In such events, these equity investments would be classified within Level 3 as they are valued using significant unobservable inputs or data in an inactive market, and the valuation requires management judgment due to the absence of market price and inherent lack of liquidity. The non-marketable equity securities are measured and recorded at fair value when an event or circumstance which impacts the fair value of these securities indicates an other-than-temporary decline in value has occurred. The Company monitors these investments and generally uses the income approach to assess impairments based primarily on the financial conditions of these companies. | ||||||||||||||||
The Company did not recognize any impairment during the three months ended January 31, 2015 and 2014, respectively. | ||||||||||||||||
As of January 31, 2015, the fair value of the Company’s non-marketable securities was $10.6 million, of which $6.7 million and $3.9 million were accounted for under the cost method and equity method, respectively. As of October 31, 2014, the fair value of non-marketable securities was $10.9 million, of which $6.7 million and $4.2 million were accounted for under the cost method and equity method, respectively. |
Liabilities_and_Restructuring_
Liabilities and Restructuring Charges | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Liabilities and Restructuring Charges [Abstract] | ||||||||
Liabilities and Restructuring Charges | Liabilities and Restructuring Charges | |||||||
In November 2014, the Company initiated a restructuring program that included a voluntary retirement program (VRP) and a minimal headcount reduction program. The VRP was offered to certain eligible employees in the United States and enrollment for those employees was completed on November 21, 2014. The total cost of the restructuring program was $15.3 million, of which $12.6 million was paid during the first quarter of fiscal 2015 and the remaining balance of $2.7 million is recorded in accounts payable and accrued liabilities as payroll and related benefits in the unaudited condensed balance sheets as of January 31, 2015. The remaining payments relate to severance and benefits and will be paid during fiscal 2015. | ||||||||
Accounts payable and accrued liabilities consist of: | ||||||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Payroll and related benefits | $ | 158,778 | $ | 302,295 | ||||
Other accrued liabilities | 55,317 | 66,666 | ||||||
Accounts payable | 28,240 | 28,152 | ||||||
Total | $ | 242,335 | $ | 397,113 | ||||
Other long-term liabilities consist of: | ||||||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Deferred compensation liability | $ | 151,061 | $ | 145,508 | ||||
Other long-term liabilities | 53,096 | 13,464 | ||||||
Total | $ | 204,157 | $ | 158,972 | ||||
Credit_Facility
Credit Facility | 3 Months Ended |
Jan. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility |
On February 17, 2012, the Company entered into an agreement with several lenders (the Credit Agreement) providing for (i) a $350.0 million senior unsecured revolving credit facility (the Revolver) and (ii) a $150.0 million senior unsecured term loan facility (the Term Loan). Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due when the Credit Agreement expires in October 2016. The Company can elect to make prepayments on the Term Loan, in whole or in part, without premium or penalty. Subject to obtaining additional commitments from lenders, the principal amount of the loans provided under the Credit Agreement may be increased by the Company by up to an additional $150.0 million through October 13, 2015. The Credit Agreement contains financial covenants requiring the Company to operate within a maximum leverage ratio and maintain specified levels of cash, as well as other non-financial covenants. | |
In December 2014, the Company drew down $250.0 million under the Revolver, primarily to finance an accelerated share repurchase agreement (See Note 9. Stock Repurchase Program). During the three months ended January 31, 2015, the Company made a principal payment of $7.5 million under the Term Loan and $15.0 million under the Revolver. As of January 31, 2015, the Company had a $67.5 million outstanding balance under the Term Loan, of which $37.5 million is classified as long term, and a $235.0 million outstanding balance under the Revolver, which is all considered short term. As of October 31, 2014, the Company had a $75.0 million outstanding balance under the Term Loan, of which $45.0 million was classified as long term, and no outstanding balance under the Revolver. Borrowings bear interest at a floating rate based on a margin over the Company’s choice of market observable base rates as defined in the Credit Agreement. As of January 31, 2015, borrowings under the Term Loan bore interest at LIBOR +1.125% and the applicable interest rate for the Revolver was LIBOR +0.975%. In addition, commitment fees are payable on the Revolver at rates between 0.150% and 0.300% per year based on the Company’s leverage ratio on the daily amount of the revolving commitment. | |
The carrying amount of the short-term and long-term debt approximates the estimated fair value. These borrowings under the Credit Agreement have a variable interest rate structure and are classified within Level 2 of the fair value hierarchy. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||
Components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows: | ||||||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Cumulative currency translation adjustments | $ | (74,394 | ) | $ | (50,941 | ) | ||
Unrealized gain (loss) on derivative instruments, net of taxes | (22,868 | ) | (11,148 | ) | ||||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 17 | — | ||||||
Total accumulated other comprehensive income (loss) | $ | (97,245 | ) | $ | (62,089 | ) | ||
The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statement of operations: | ||||||||
Gain (loss) on cash flow hedges, net of taxes | ||||||||
Revenues | $ | 2,381 | $ | 2,756 | ||||
Operating expenses | (3,436 | ) | 550 | |||||
Gain (loss) on available-for-sale securities | ||||||||
Other income (expense) | $ | 12 | $ | — | ||||
Total reclassifications into net income | $ | (1,043 | ) | $ | 3,306 | |||
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Stock Repurchase Program [Abstract] | ||||||||
Stock Repurchase Program | Stock Repurchase Program | |||||||
The Company’s Board of Directors (Board) previously approved a stock repurchase program pursuant to which the Company was authorized to purchase up to $500.0 million of its common stock, and has periodically replenished the stock repurchase program to such amount. The Board replenished the stock repurchase program up to $500.0 million on December 3, 2013, as announced on December 4, 2013. The program does not obligate Synopsys to acquire any particular amount of common stock, and the program may be suspended or terminated at any time by Synopsys’ Chief Financial Officer or the Board. The Company repurchases shares to offset dilution caused by ongoing stock issuances from existing equity plans for equity compensation awards and issuances related to acquisitions, and when management believes it is a good use of cash. Repurchases are transacted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934 (Exchange Act) and may be made through any means including, but not limited to, open market purchases, plans executed under Rule 10b5-1(c) of the Exchange Act and structured transactions. As of January 31, 2015, $200.3 million remained available for further repurchases under the program. | ||||||||
In December 2014, the Company entered into an accelerated share repurchase agreement (2015 ASR) to repurchase an aggregate of $180.0 million of the Company’s common stock. Pursuant to the 2015 ASR, the Company made a prepayment of $180.0 million and received an initial share delivery of shares valued at $144.0 million with an average purchase price of $43.77 per share. The remaining balance of $36.0 million will be settled within 6 months or earlier upon completion of the repurchase and is included within stockholders' equity as the forward instrument meets the criteria in the FASB authoritative guidance for equity treatment. Under the terms of the 2015 ASR, the specific number of shares that the Company ultimately repurchases will be based on the volume weighted average share price of the Company’s common stock during the repurchase period, less a discount. | ||||||||
Stock repurchase activities are as follow: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands, except per share price) | ||||||||
Shares repurchased | 3,290 | 1,422 | ||||||
Average purchase price per share | $ | 43.77 | $ | 38.5 | ||||
Aggregate purchase price (1) | $ | 144,000 | $ | 54,747 | ||||
Reissuance of treasury stock | 782 | 1,309 | ||||||
(1) Does not include $36.0 million equity forward contract related to the above-referenced 2015 ASR. |
Stock_Compensation
Stock Compensation | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Stock Compensation | Stock Compensation | |||||||
The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Cost of license | $ | 2,118 | $ | 1,861 | ||||
Cost of maintenance and service | 542 | 428 | ||||||
Research and development expense | 10,200 | 8,916 | ||||||
Sales and marketing expense | 4,247 | 3,732 | ||||||
General and administrative expense | 3,474 | 3,181 | ||||||
Stock compensation expense before taxes | 20,581 | 18,118 | ||||||
Income tax benefit | (4,699 | ) | (4,220 | ) | ||||
Stock compensation expense after taxes | $ | 15,882 | $ | 13,898 | ||||
As of January 31, 2015, there was $137.8 million of unamortized share-based compensation expense, which is expected to be amortized over a weighted-average period of approximately 2.6 years. | ||||||||
The intrinsic values of equity awards exercised during the periods are as follows: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Intrinsic value of awards exercised | $ | 11,517 | $ | 16,199 | ||||
Net_Income_per_Share
Net Income per Share | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Income per Share | Net Income per Share | |||||||
The Company computes basic net income per share by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding, such as stock options and unvested restricted stock units and awards, during the period using the treasury stock method. | ||||||||
The table below reconciles the weighted-average common shares used to calculate basic net income per share with the weighted-average common shares used to calculate diluted net income per share: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Numerator: | ||||||||
Net income | $ | 65,189 | $ | 67,696 | ||||
Denominator: | ||||||||
Weighted-average common shares for basic net income per share | 154,458 | 154,066 | ||||||
Dilutive effect of potential common shares from equity-based compensation | 2,748 | 2,690 | ||||||
Weighted-average common shares for diluted net income per share | 157,206 | 156,756 | ||||||
Net income per share: | ||||||||
Basic | $ | 0.42 | $ | 0.44 | ||||
Diluted | $ | 0.41 | $ | 0.43 | ||||
Anti-dilutive employee stock-based awards excluded(1) | 2,440 | 1,378 | ||||||
-1 | These stock options and unvested restricted stock units and restricted stock awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were antidilutive for the respective periods, they could be dilutive in the future. |
Segment_Disclosure
Segment Disclosure | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Disclosure | Segment Disclosure | |||||||
Certain disclosures are required for operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers. | ||||||||
The Company operates in a single segment to provide software products and consulting services in the EDA software industry. In making operating decisions, the CODMs primarily consider consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Specifically, the CODMs consider where individual “seats” or licenses to the Company’s products are located in allocating revenue to particular geographic areas. Revenue is defined as revenues from external customers. Goodwill is not allocated since the Company operates in one reportable operating segment. Revenues related to operations in the United States and other geographic areas were: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Revenue: | ||||||||
United States | $ | 277,587 | $ | 233,627 | ||||
Europe | 71,883 | 66,654 | ||||||
Japan | 60,852 | 64,320 | ||||||
Asia-Pacific and Other | 131,721 | 114,350 | ||||||
Consolidated | $ | 542,043 | $ | 478,951 | ||||
Geographic revenue data for multi-region, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and the Company’s methodology. | ||||||||
One customer accounted for 11.3% and 11.6% of the Company’s unaudited condensed consolidated revenue in the three months ended January 31, 2015 and 2014, respectively. |
Other_Income_Expense_net
Other Income (Expense), net | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Other Income (Expense), net | Other Income (Expense), net | |||||||
The following table presents the components of other income (expense), net: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Interest income | $ | 1,148 | $ | 367 | ||||
Interest expense | (653 | ) | (357 | ) | ||||
Gain (loss) on assets related to executive deferred compensation plan | (697 | ) | 1,042 | |||||
Foreign currency exchange gain (loss) | 3,694 | 893 | ||||||
Other, net | 1,624 | 9,083 | ||||||
Total | $ | 5,116 | $ | 11,028 | ||||
Taxes
Taxes | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Taxes | Taxes | |||||||
Effective Tax Rate | ||||||||
The Company estimates its annual effective tax rate at the end of each fiscal quarter. The Company’s estimate takes into account estimations of annual pre-tax income, the geographic mix of pre-tax income and the Company’s interpretations of tax laws and possible outcomes of audits. | ||||||||
The following table presents the provision for income taxes and the effective tax rates: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Income before income taxes | $ | 76,615 | $ | 71,184 | ||||
Provision (benefit) for income tax | $ | 11,426 | $ | 3,488 | ||||
Effective tax rate | 14.9 | % | 4.9 | % | ||||
The Company’s effective tax rate for the three months ended January 31, 2015 is lower than the statutory federal income tax rate of 35% primarily due to the lower tax rates applicable to its non-U.S. operations and U.S. federal and California research tax credits, partially offset by state taxes and non-deductible stock compensation. | ||||||||
The Company's effective tax rate increased in the three months ended January 31, 2015, as compared to the same period in fiscal 2014, primarily due to the integration of acquired technologies, partially offset by the reinstatement of the U.S. federal research tax credit in the first quarter of fiscal 2015. The tax rate for the three months ended January 31, 2014 was lower due to the tax benefits of an IRS settlement for fiscal 2012, as described below. | ||||||||
On December 19, 2014, the president signed into law the Tax Increase Prevention Act of 2014 which reinstated the research tax credit retroactive to January 1, 2014 and extended the credit through December 31, 2014. As a result of the new legislation, the Company recognized a benefit in the first quarter of fiscal 2015 related to ten months of fiscal 2014 as well as a benefit to the annual effective tax rate for two months of fiscal 2015. During fiscal 2015 the Company estimates the benefit of the reinstatement of the research tax credit to be approximately $12.4 million. | ||||||||
The Company’s total gross unrecognized tax benefits at January 31, 2015 are $126.1 million exclusive of interest and penalties. If the total gross unrecognized tax benefits at January 31, 2015 were recognized in the future, approximately $122.5 million would decrease the effective tax rate. | ||||||||
The timing of the resolution of income tax examinations is highly uncertain as well as the amounts and timing of various tax payments that are part of the settlement process. This could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. The Company believes that in the coming twelve months, it is reasonably possible that either certain audits will conclude or the statute of limitations on certain state and foreign income and withholding taxes will expire, or both. Given the uncertainty as to ultimate settlement terms, the timing of payment and the impact of such settlements on other uncertain tax positions, the range of the estimated potential decrease in underlying unrecognized tax benefits is between $0 and $31 million. | ||||||||
IRS Examinations | ||||||||
In the first quarter of fiscal 2014, the Company reached final settlement with the Examination Division of the IRS on the remaining fiscal 2012 issues and recognized approximately $10.0 million in unrecognized tax benefits. | ||||||||
Non-U.S. Examinations | ||||||||
In the first quarter of fiscal 2015, the Company reached final settlement with the Taiwan tax authorities for fiscal 2012, with regard to certain transfer pricing issues. As a result of the settlement the Company recognized approximately $1.1 million in unrecognized tax benefits. |
Effect_of_New_Accounting_Prono
Effect of New Accounting Pronouncements | 3 Months Ended |
Jan. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Effect of New Accounting Pronouncements | Effect of New Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).” This ASU requires an entity to recognize revenue when goods are transferred or services are provided to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This ASU also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance will be effective for fiscal 2018, including interim periods within that reporting period, using one of two prescribed retrospective methods, and no early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. To prepare financial statements in conformity with GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position. |
Principles of Consolidation | Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Fiscal Year End | Fiscal Year End. The Company’s fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. When a 53-week year occurs, the Company includes the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2015 and 2014 are both 52-week years. The first fiscal quarters of fiscal 2015 and 2014 ended on January 31, 2015 and February 1, 2014, respectively, and the prior year ended on November 1, 2014. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. |
Subsequent Events | Subsequent Events. The Company has evaluated subsequent events through the date that these unaudited condensed consolidated financial statements were issued. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Summary of Goodwill | Goodwill as of January 31, 2015 and October 31, 2014 consisted of the following: | |||||||||||
(in thousands) | ||||||||||||
As of October 31, 2014 | $ | 2,255,708 | ||||||||||
Additions | — | |||||||||||
Effect of foreign currency translation | (9,788 | ) | ||||||||||
As of January 31, 2015 | $ | 2,245,920 | ||||||||||
Summary of Intangible Assets | Intangible assets as of January 31, 2015 consisted of the following: | |||||||||||
Gross | Accumulated | Net Assets | ||||||||||
Assets | Amortization | |||||||||||
(in thousands) | ||||||||||||
Core/developed technology | $ | 490,929 | $ | 316,714 | $ | 174,215 | ||||||
Customer relationships | 209,984 | 97,829 | 112,155 | |||||||||
Contract rights intangible | 145,616 | 116,389 | 29,227 | |||||||||
Covenants not to compete | 2,530 | 2,530 | — | |||||||||
Trademarks and trade names | 18,779 | 8,464 | 10,315 | |||||||||
In-process research and development (IPR&D)(1) | 2,400 | — | 2,400 | |||||||||
Capitalized software development costs | 22,738 | 18,665 | 4,073 | |||||||||
Total | $ | 892,976 | $ | 560,591 | $ | 332,385 | ||||||
Intangible assets as of October 31, 2014 consisted of the following: | ||||||||||||
Gross | Accumulated | Net Assets | ||||||||||
Assets | Amortization | |||||||||||
(in thousands) | ||||||||||||
Core/developed technology | $ | 490,242 | $ | 298,705 | $ | 191,537 | ||||||
Customer relationships | 210,172 | 92,146 | 118,026 | |||||||||
Contract rights intangible | 146,364 | 109,067 | 37,297 | |||||||||
Covenants not to compete | 2,530 | 2,530 | — | |||||||||
Trademarks and trade names | 18,779 | 7,765 | 11,014 | |||||||||
In-process research and development (IPR&D)(1) | 3,086 | — | 3,086 | |||||||||
Capitalized software development costs | 21,829 | 17,759 | 4,070 | |||||||||
Total | $ | 893,002 | $ | 527,972 | $ | 365,030 | ||||||
-1 | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. | |||||||||||
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets consisted of the following: | |||||||||||
Three Months Ended | ||||||||||||
January 31, | ||||||||||||
2015 | 2014 | |||||||||||
(in thousands) | ||||||||||||
Core/developed technology | $ | 18,009 | $ | 15,621 | ||||||||
Customer relationships | 5,748 | 5,053 | ||||||||||
Contract rights intangible | 7,852 | 7,126 | ||||||||||
Covenants not to compete | — | 17 | ||||||||||
Trademarks and trade names | 699 | 314 | ||||||||||
Capitalized software development costs(1) | 906 | 864 | ||||||||||
Total | $ | 33,214 | $ | 28,995 | ||||||||
-1 | Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed consolidated statements of operations. | |||||||||||
Estimated Future Amortization of Intangible Assets | The following table presents the estimated future amortization of intangible assets: | |||||||||||
Fiscal Year | (in thousands) | |||||||||||
Remainder of fiscal 2015 | $ | 95,690 | ||||||||||
2016 | 92,056 | |||||||||||
2017 | 55,627 | |||||||||||
2018 | 40,298 | |||||||||||
2019 | 20,645 | |||||||||||
2020 and thereafter | 25,669 | |||||||||||
IPR&D(1) | 2,400 | |||||||||||
Total | $ | 332,385 | ||||||||||
-1 | IPR&D projects are estimated to be completed within one year as of January 31, 2015. Assets are amortized over their useful life upon completion of the project or are written off upon abandonment. |
Financial_Assets_and_Liabiliti1
Financial Assets and Liabilities (Tables) | 3 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Financial Assets And Liabilities [Abstract] | ||||||||||||||||||||
Summary of Available-for-Sale Securities | During the first fiscal quarter of 2015, the Company made investments in available-for-sale securities, as follows: | |||||||||||||||||||
As of January 31, 2015 | Cost | Gross | Gross | Gross | Estimated | |||||||||||||||
Unrealized | Unrealized | Unrealized | Fair Value(1) | |||||||||||||||||
Gains | Losses Less Than 12 Months | Losses 12 Months or Longer | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Certificates of deposit | $ | 2,400 | $ | — | $ | — | $ | — | $ | 2,400 | ||||||||||
Money market funds | 377,370 | — | — | — | 377,370 | |||||||||||||||
Commercial paper | 8,697 | — | — | — | 8,697 | |||||||||||||||
Total: | 388,467 | — | — | — | 388,467 | |||||||||||||||
Short-term investments: | ||||||||||||||||||||
U.S. government agency securities | 17,928 | 8 | — | — | 17,936 | |||||||||||||||
Municipal bonds | 1,405 | — | (2 | ) | — | 1,403 | ||||||||||||||
Certificates of deposit | 3,400 | — | — | — | 3,400 | |||||||||||||||
Commercial paper | 7,090 | — | — | — | 7,090 | |||||||||||||||
Corporate debt securities | 67,160 | 26 | (18 | ) | — | 67,168 | ||||||||||||||
Asset-backed securities | 23,238 | 5 | (2 | ) | — | 23,241 | ||||||||||||||
Total: | 120,221 | 39 | (22 | ) | — | 120,238 | ||||||||||||||
-1 | See Note 5. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. | |||||||||||||||||||
Maturities of Available-for-Sale securities | As of January 31, 2015 the stated maturities of the Company's short-term investments are: | |||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Due in 1 year or less | $ | 64,421 | $ | 64,414 | ||||||||||||||||
Due in 1-5 years | 55,800 | 55,824 | ||||||||||||||||||
Total | $ | 120,221 | $ | 120,238 | ||||||||||||||||
Effects on Changes in Fair Values of Non-Designated Forward Contracts | The effects of the changes in the fair values of non-designated forward contracts are summarized as follows: | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
January 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Gain (loss) recorded in other income (expense), net | $ | (2,758 | ) | $ | (943 | ) | ||||||||||||||
Notional Amounts of Derivative Instruments | The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: | |||||||||||||||||||
As of January 31, 2015 | As of October 31, 2014 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Total gross notional amount | $ | 732,766 | $ | 793,937 | ||||||||||||||||
Net fair value | $ | (6,894 | ) | $ | (2,455 | ) | ||||||||||||||
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet | The following represents the unaudited condensed consolidated balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: | |||||||||||||||||||
Fair values of | Fair values of | |||||||||||||||||||
derivative instruments | derivative instruments | |||||||||||||||||||
designated as hedging | not designated as | |||||||||||||||||||
instruments | hedging instruments | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
As of January 31, 2015 | ||||||||||||||||||||
Other current assets | $ | 16,781 | $ | 1,549 | ||||||||||||||||
Accrued liabilities | $ | 25,210 | $ | 14 | ||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||
Other current assets | $ | 9,299 | $ | 1 | ||||||||||||||||
Accrued liabilities | $ | 11,656 | $ | 99 | ||||||||||||||||
Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax | The following table represents the unaudited condensed consolidated statement of operations location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax: | |||||||||||||||||||
Location of gain (loss) | Amount of gain (loss) | Location of | Amount of | |||||||||||||||||
recognized in OCI on | recognized in OCI on | gain (loss) | gain (loss) | |||||||||||||||||
derivatives | derivatives | reclassified from OCI | reclassified from | |||||||||||||||||
(effective portion) | OCI | |||||||||||||||||||
(effective portion) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three months ended January 31, 2015 | ||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | 2,966 | Revenue | $ | 2,381 | ||||||||||||||
Foreign exchange contracts | Operating expenses | (15,795 | ) | Operating expenses | (3,436 | ) | ||||||||||||||
Total | $ | (12,829 | ) | $ | (1,055 | ) | ||||||||||||||
Three months ended January 31, 2014 | ||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | 3,188 | Revenue | $ | 2,756 | ||||||||||||||
Foreign exchange contracts | Operating expenses | (3,782 | ) | Operating expenses | 550 | |||||||||||||||
Total | $ | (594 | ) | $ | 3,306 | |||||||||||||||
Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) | The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense), net: | |||||||||||||||||||
Foreign exchange contracts | Amount of | Amount of gain (loss) | ||||||||||||||||||
gain (loss) recognized | recognized in income | |||||||||||||||||||
in income statement | statement on | |||||||||||||||||||
on derivatives | derivatives | |||||||||||||||||||
(ineffective | (excluded from | |||||||||||||||||||
portion)(1) | effectiveness testing)(2) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
For the three months ended January 31, 2015 | $ | 740 | $ | 1,072 | ||||||||||||||||
For the three months ended January 31, 2014 | $ | 119 | $ | 1,594 | ||||||||||||||||
-1 | The ineffective portion includes forecast inaccuracies. | |||||||||||||||||||
-2 | The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. |
Fair_Value_Measures_Tables
Fair Value Measures (Tables) | 3 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below as of January 31, 2015: | |||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Description | Total | Quoted Prices in Active | Significant Other | Significant | ||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Certificates of deposit | $ | 2,400 | $ | — | $ | 2,400 | $ | — | ||||||||
Money market funds | 377,370 | 377,370 | — | — | ||||||||||||
Commercial paper | 8,697 | — | 8,697 | — | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. government agency securities | 17,936 | — | 17,936 | — | ||||||||||||
Municipal bonds | 1,403 | — | 1,403 | — | ||||||||||||
Certificates of deposit | 3,400 | — | 3,400 | — | ||||||||||||
Commercial paper | 7,090 | — | 7,090 | — | ||||||||||||
Corporate debt securities | 67,168 | — | 67,168 | — | ||||||||||||
Asset-backed securities | 23,241 | — | 23,241 | — | ||||||||||||
Prepaid and other current assets: | ||||||||||||||||
Foreign currency derivative contracts | 18,330 | — | 18,330 | — | ||||||||||||
Other long-term assets: | ||||||||||||||||
Deferred compensation plan assets | 151,061 | 151,061 | — | — | ||||||||||||
Total assets | $ | 678,096 | $ | 528,431 | $ | 149,665 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities: | ||||||||||||||||
Foreign currency derivative contracts | $ | 25,224 | $ | — | $ | 25,224 | $ | — | ||||||||
Total liabilities | $ | 25,224 | $ | — | $ | 25,224 | $ | — | ||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2014: | ||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Description | Total | Quoted Prices in Active | Significant Other | Significant | ||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 409,064 | $ | 409,064 | $ | — | $ | — | ||||||||
Prepaid and other current assets: | ||||||||||||||||
Foreign currency derivative contracts | 9,300 | — | 9,300 | — | ||||||||||||
Other long-term assets: | ||||||||||||||||
Deferred compensation plan assets | 145,508 | 145,508 | — | — | ||||||||||||
Total assets | $ | 563,872 | $ | 554,572 | $ | 9,300 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities: | ||||||||||||||||
Foreign currency derivative contracts | $ | 11,755 | $ | — | $ | 11,755 | $ | — | ||||||||
Total liabilities | $ | 11,755 | $ | — | $ | 11,755 | $ | — | ||||||||
Liabilities_and_Restructuring_1
Liabilities and Restructuring Charges (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Liabilities and Restructuring Charges [Abstract] | ||||||||
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of: | |||||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Payroll and related benefits | $ | 158,778 | $ | 302,295 | ||||
Other accrued liabilities | 55,317 | 66,666 | ||||||
Accounts payable | 28,240 | 28,152 | ||||||
Total | $ | 242,335 | $ | 397,113 | ||||
Other Long-Term Liabilities | Other long-term liabilities consist of: | |||||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Deferred compensation liability | $ | 151,061 | $ | 145,508 | ||||
Other long-term liabilities | 53,096 | 13,464 | ||||||
Total | $ | 204,157 | $ | 158,972 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Components of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows: | |||||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Cumulative currency translation adjustments | $ | (74,394 | ) | $ | (50,941 | ) | ||
Unrealized gain (loss) on derivative instruments, net of taxes | (22,868 | ) | (11,148 | ) | ||||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 17 | — | ||||||
Total accumulated other comprehensive income (loss) | $ | (97,245 | ) | $ | (62,089 | ) | ||
Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income | The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statement of operations: | ||||||||
Gain (loss) on cash flow hedges, net of taxes | ||||||||
Revenues | $ | 2,381 | $ | 2,756 | ||||
Operating expenses | (3,436 | ) | 550 | |||||
Gain (loss) on available-for-sale securities | ||||||||
Other income (expense) | $ | 12 | $ | — | ||||
Total reclassifications into net income | $ | (1,043 | ) | $ | 3,306 | |||
Stock_Repurchase_Program_Table
Stock Repurchase Program (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Stock Repurchase Program [Abstract] | ||||||||
Stock Repurchase And Reissuance Activities | Stock repurchase activities are as follow: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands, except per share price) | ||||||||
Shares repurchased | 3,290 | 1,422 | ||||||
Average purchase price per share | $ | 43.77 | $ | 38.5 | ||||
Aggregate purchase price (1) | $ | 144,000 | $ | 54,747 | ||||
Reissuance of treasury stock | 782 | 1,309 | ||||||
(1) Does not include $36.0 million equity forward contract related to the above-referenced 2015 ASR. |
Stock_Compensation_Tables
Stock Compensation (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Stock Compensation Arrangements | The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Cost of license | $ | 2,118 | $ | 1,861 | ||||
Cost of maintenance and service | 542 | 428 | ||||||
Research and development expense | 10,200 | 8,916 | ||||||
Sales and marketing expense | 4,247 | 3,732 | ||||||
General and administrative expense | 3,474 | 3,181 | ||||||
Stock compensation expense before taxes | 20,581 | 18,118 | ||||||
Income tax benefit | (4,699 | ) | (4,220 | ) | ||||
Stock compensation expense after taxes | $ | 15,882 | $ | 13,898 | ||||
Schedule of Intrinsic Value of Equity Awards Exercised | The intrinsic values of equity awards exercised during the periods are as follows: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Intrinsic value of awards exercised | $ | 11,517 | $ | 16,199 | ||||
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Reconciliation of Weighted-Average Common Shares Used to Calculate Net Income Per Share | The table below reconciles the weighted-average common shares used to calculate basic net income per share with the weighted-average common shares used to calculate diluted net income per share: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Numerator: | ||||||||
Net income | $ | 65,189 | $ | 67,696 | ||||
Denominator: | ||||||||
Weighted-average common shares for basic net income per share | 154,458 | 154,066 | ||||||
Dilutive effect of potential common shares from equity-based compensation | 2,748 | 2,690 | ||||||
Weighted-average common shares for diluted net income per share | 157,206 | 156,756 | ||||||
Net income per share: | ||||||||
Basic | $ | 0.42 | $ | 0.44 | ||||
Diluted | $ | 0.41 | $ | 0.43 | ||||
Anti-dilutive employee stock-based awards excluded(1) | 2,440 | 1,378 | ||||||
-1 | These stock options and unvested restricted stock units and restricted stock awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were antidilutive for the respective periods, they could be dilutive in the future. |
Segment_Disclosure_Tables
Segment Disclosure (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Revenues Related to Operations by Geographic Areas | Revenues related to operations in the United States and other geographic areas were: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Revenue: | ||||||||
United States | $ | 277,587 | $ | 233,627 | ||||
Europe | 71,883 | 66,654 | ||||||
Japan | 60,852 | 64,320 | ||||||
Asia-Pacific and Other | 131,721 | 114,350 | ||||||
Consolidated | $ | 542,043 | $ | 478,951 | ||||
Other_Income_Expense_net_Table
Other Income (Expense), net (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Components of Other Income (Expense), Net | The following table presents the components of other income (expense), net: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Interest income | $ | 1,148 | $ | 367 | ||||
Interest expense | (653 | ) | (357 | ) | ||||
Gain (loss) on assets related to executive deferred compensation plan | (697 | ) | 1,042 | |||||
Foreign currency exchange gain (loss) | 3,694 | 893 | ||||||
Other, net | 1,624 | 9,083 | ||||||
Total | $ | 5,116 | $ | 11,028 | ||||
Taxes_Tables
Taxes (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Provision for Income Taxes and Effective Tax Rates | The following table presents the provision for income taxes and the effective tax rates: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Income before income taxes | $ | 76,615 | $ | 71,184 | ||||
Provision (benefit) for income tax | $ | 11,426 | $ | 3,488 | ||||
Effective tax rate | 14.9 | % | 4.9 | % |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Summary of Goodwill (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | |
Goodwill [Roll Forward] | ||
As of October 31, 2014 | $2,255,708 | [1] |
Additions | 0 | |
Effect of foreign currency translation | -9,788 | |
As of January 31, 2015 | $2,245,920 | |
[1] | Derived from audited financial statements. |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Assets | $892,976 | $893,002 | ||
Accumulated Amortization | 560,591 | 527,972 | ||
Net Assets | 332,385 | 365,030 | [1] | |
Core/developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Assets | 490,929 | 490,242 | ||
Accumulated Amortization | 316,714 | 298,705 | ||
Net Assets | 174,215 | 191,537 | ||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Assets | 209,984 | 210,172 | ||
Accumulated Amortization | 97,829 | 92,146 | ||
Net Assets | 112,155 | 118,026 | ||
Contract rights intangible | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Assets | 145,616 | 146,364 | ||
Accumulated Amortization | 116,389 | 109,067 | ||
Net Assets | 29,227 | 37,297 | ||
Covenants not to compete | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Assets | 2,530 | 2,530 | ||
Accumulated Amortization | 2,530 | 2,530 | ||
Net Assets | 0 | 0 | ||
Trademarks and trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Assets | 18,779 | 18,779 | ||
Accumulated Amortization | 8,464 | 7,765 | ||
Net Assets | 10,315 | 11,014 | ||
In-process research and development (IPR&D) | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Assets | 2,400 | [2] | 3,086 | [2] |
Accumulated Amortization | 0 | [2] | 0 | [2] |
Net Assets | 2,400 | [2] | 3,086 | [2] |
Capitalized software development costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Assets | 22,738 | 21,829 | ||
Accumulated Amortization | 18,665 | 17,759 | ||
Net Assets | $4,073 | $4,070 | ||
[1] | Derived from audited financial statements. | |||
[2] | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | $33,214 | $28,995 | ||
Core/developed technology | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 18,009 | 15,621 | ||
Customer relationships | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 5,748 | 5,053 | ||
Contract rights intangible | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 7,852 | 7,126 | ||
Covenants not to compete | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 0 | 17 | ||
Trademarks and trade names | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 699 | 314 | ||
Capitalized software development costs | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | $906 | [1] | $864 | [1] |
[1] | Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed consolidated statements of operations. |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) (USD $) | Jan. 31, 2015 | |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of fiscal 2015 | $95,690 | |
2016 | 92,056 | |
2017 | 55,627 | |
2018 | 40,298 | |
2019 | 20,645 | |
2020 and thereafter | 25,669 | |
IPR&D | 2,400 | [1] |
Total | $332,385 | |
[1] | IPR&D projects are estimated to be completed within one year as of January 31, 2015. Assets are amortized over their useful life upon completion of the project or are written off upon abandonment. |
Goodwill_and_Intangible_Assets6
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets, Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Projects estimated to be completed (years) | 1 year |
Financial_Assets_and_Liabiliti2
Financial Assets and Liabilities - Additional Information (Details) | 3 Months Ended |
Jan. 31, 2015 | |
Financial Assets and Liabilities [Line Items] | |
Shipments period using hedges (in months) | one |
Period for hedge balance in OCI to be reclassified to statement of operations (in months) | 12 months |
Foreign Exchange Contracts | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Duration of foreign exchange forward contracts | 1 year |
Cash Flow Hedging | Foreign Exchange Forward contracts | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Derivative maturity period | 22 months |
Foreign currency derivative contracts | Minimum | |
Financial Assets and Liabilities [Line Items] | |
Derivative maturity period | 1 month |
Foreign currency derivative contracts | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Derivative maturity period | 22 months |
Foreign currency derivative contracts | Cash Flow Hedging | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Derivative maturity period | 3 years |
Non-Designated Hedging Instrument | |
Financial Assets and Liabilities [Line Items] | |
Forward contracts terms (in months) | 1 month |
Financial_Assets_and_Liabiliti3
Financial Assets and Liabilities - Short-term investments (Details) (USD $) | Jan. 31, 2015 | |
In Thousands, unless otherwise specified | ||
Cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | $388,467 | |
Gross unrealized gains | 0 | |
Gross unrealized losses less than 12 months | 0 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 388,467 | [1] |
Cash equivalents | Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 2,400 | |
Gross unrealized gains | 0 | |
Gross unrealized losses less than 12 months | 0 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 2,400 | [1] |
Cash equivalents | Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 377,370 | |
Gross unrealized gains | 0 | |
Gross unrealized losses less than 12 months | 0 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 377,370 | [1] |
Cash equivalents | Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 8,697 | |
Gross unrealized gains | 0 | |
Gross unrealized losses less than 12 months | 0 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 8,697 | [1] |
Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 120,221 | |
Gross unrealized gains | 39 | |
Gross unrealized losses less than 12 months | -22 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 120,238 | [1] |
Short-term investments | Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 3,400 | |
Gross unrealized gains | 0 | |
Gross unrealized losses less than 12 months | 0 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 3,400 | [1] |
Short-term investments | Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 7,090 | |
Gross unrealized gains | 0 | |
Gross unrealized losses less than 12 months | 0 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 7,090 | [1] |
Short-term investments | U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 17,928 | |
Gross unrealized gains | 8 | |
Gross unrealized losses less than 12 months | 0 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 17,936 | [1] |
Short-term investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 1,405 | |
Gross unrealized gains | 0 | |
Gross unrealized losses less than 12 months | -2 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 1,403 | [1] |
Short-term investments | Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 67,160 | |
Gross unrealized gains | 26 | |
Gross unrealized losses less than 12 months | -18 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 67,168 | [1] |
Short-term investments | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 23,238 | |
Gross unrealized gains | 5 | |
Gross unrealized losses less than 12 months | -2 | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | $23,241 | [1] |
[1] | See Note 5. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. |
Financial_Assets_and_Liabiliti4
Financial Assets and Liabilities - Investments Maturity Table (Details) (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Amortized Cost | |
Due in 1 year or less | $64,421 |
Due in 1-5 years | 55,800 |
Total | 120,221 |
Fair Value | |
Due in 1 year or less | 64,414 |
Due in 1-5 years | 55,824 |
Total | $120,238 |
Financial_Assets_and_Liabiliti5
Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Financial Assets And Liabilities [Abstract] | ||
Gain (loss) recorded in other income (expense), net | ($2,758) | ($943) |
Financial_Assets_and_Liabiliti6
Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial Assets And Liabilities [Abstract] | ||
Total gross notional amount | $732,766 | $793,937 |
Net fair value | ($6,894) | ($2,455) |
Financial_Assets_and_Liabiliti7
Financial Assets and Liabilities - Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Unaudited Condensed Consolidated Balance Sheet (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Designated As Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | $16,781 | $9,299 |
Designated As Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | 25,210 | 11,656 |
Non-Designated Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | 1,549 | 1 |
Non-Designated Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | $14 | $99 |
Financial_Assets_and_Liabiliti8
Financial Assets and Liabilities - Unaudited Condensed Consolidated Statement of Operations Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Financial Assets and Liabilities [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | ($12,829) | ($594) |
Amount of gain (loss) reclassified from OCI (effective portion) | -1,055 | 3,306 |
Foreign Exchange Contracts | Revenue | ||
Financial Assets and Liabilities [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 2,966 | 3,188 |
Amount of gain (loss) reclassified from OCI (effective portion) | 2,381 | 2,756 |
Foreign Exchange Contracts | Operating Expenses | ||
Financial Assets and Liabilities [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | -15,795 | -3,782 |
Amount of gain (loss) reclassified from OCI (effective portion) | ($3,436) | $550 |
Financial_Assets_and_Liabiliti9
Financial Assets and Liabilities - Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) (Detail) (Foreign Exchange Contracts, USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | ||
Foreign Exchange Contracts | ||||
Financial Assets and Liabilities [Line Items] | ||||
Amount of gain (loss) recognized in income statement on derivatives (ineffective portion) | $740 | [1] | $119 | [1] |
Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing) | $1,072 | [2] | $1,594 | [2] |
[1] | The ineffective portion includes forecast inaccuracies. | |||
[2] | The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. |
Fair_Value_Measures_Assets_and
Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $678,096 | $563,872 |
Total liabilities | 25,224 | 11,755 |
Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 18,330 | 9,300 |
Accounts payable and accrued liabilities | 25,224 | 11,755 |
Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 151,061 | 145,508 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 528,431 | 554,572 |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 151,061 | 145,508 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 149,665 | 9,300 |
Total liabilities | 25,224 | 11,755 |
Significant Other Observable Inputs (Level 2) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 18,330 | 9,300 |
Accounts payable and accrued liabilities | 25,224 | 11,755 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 0 | 0 |
Cash equivalents | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,400 | |
Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 377,370 | 409,064 |
Cash equivalents | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 8,697 | |
Cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 377,370 | 409,064 |
Cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Cash equivalents | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,400 | |
Cash equivalents | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Cash equivalents | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 8,697 | |
Cash equivalents | Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Cash equivalents | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Cash equivalents | Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Short-term investments | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 3,400 | |
Short-term investments | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 7,090 | |
Short-term investments | U.S. government agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 17,936 | |
Short-term investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,403 | |
Short-term investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 67,168 | |
Short-term investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 23,241 | |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 3,400 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 7,090 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | U.S. government agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 17,936 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,403 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 67,168 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 23,241 | |
Short-term investments | Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Significant Unobservable Inputs (Level 3) | U.S. government agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Significant Unobservable Inputs (Level 3) | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | |
Short-term investments | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | $0 |
Fair_Value_Measures_Additional
Fair Value Measures - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 |
Fair Value Measures [Line Items] | |||
Other-than-temporary impairment | $0 | $0 | |
Non-marketable equity securities | 10.6 | 10.9 | |
Cost Method Investments | |||
Fair Value Measures [Line Items] | |||
Non-marketable equity securities | 6.7 | 6.7 | |
Equity Method Investments | |||
Fair Value Measures [Line Items] | |||
Non-marketable equity securities | $3.90 | $4.20 |
Liabilities_and_Restructuring_2
Liabilities and Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Restructuring Charges [Abstract] | ||
Restructuring charges | $15,336,000 | $0 |
Voluntary Retirement Program and Headcount Reduction Program [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring charges | 15,300,000 | |
Restructuring charges paid during period | 12,600,000 | |
Payroll and related benefits | $2,700,000 |
Liabilities_and_Restructuring_3
Liabilities and Restructuring Charges - Components of Accounts Payable and Accrued Liabilities (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Payables and Accruals [Abstract] | |||
Payroll and related benefits | $158,778 | $302,295 | |
Other accrued liabilities | 55,317 | 66,666 | |
Accounts payable | 28,240 | 28,152 | |
Total | $242,335 | $397,113 | [1] |
[1] | Derived from audited financial statements. |
Liabilities_and_Restructuring_4
Liabilities and Restructuring Charges - Components of Other Long Term Liabilities (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |||
Deferred compensation liability | $151,061 | $145,508 | |
Other long-term liabilities | 53,096 | 13,464 | |
Total | $204,157 | $158,972 | [1] |
[1] | Derived from audited financial statements. |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | ||||
Jan. 31, 2015 | Jan. 31, 2014 | Dec. 31, 2014 | Oct. 31, 2014 | Feb. 17, 2012 | ||
Debt Instrument [Line Items] | ||||||
Senior unsecured revolving credit facility entered date | 17-Feb-12 | |||||
Credit facility maximum borrowing capacity | $350,000,000 | |||||
Senior unsecured term loan facility, face amount | 150,000,000 | |||||
Payment schedule for term loan | Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due when the Credit Agreement expires in October 2016. | |||||
Senior unsecured term loan facility additional borrowings | 150,000,000 | |||||
Debt instrument quarterly principal payment | 7,500,000 | |||||
Proceeds from credit facility | 250,000,000 | 0 | ||||
Principal payments made during period | 22,723,000 | 7,748,000 | ||||
Senior unsecured term loan facility | 67,500,000 | 75,000,000 | ||||
Senior unsecured term loan facility long term | 37,500,000 | 45,000,000 | [1] | |||
Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from credit facility | 250,000,000 | |||||
Principal payments made during period | 15,000,000 | |||||
Amount outstanding | 235,000,000 | 0 | ||||
Borrowings, interest rate | 0.98% | |||||
Revolver | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees percentage | 0.15% | |||||
Revolver | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees percentage | 0.30% | |||||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal payments made during period | $7,500,000 | |||||
Borrowings, interest rate | 1.13% | |||||
[1] | Derived from audited financial statements. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative currency translation adjustments | ($74,394) | ($50,941) | |
Unrealized gain (loss) on derivative instruments, net of taxes | -22,868 | -11,148 | |
Unrealized gain (loss) on available-for-sale securities, net of taxes | 17 | 0 | |
Total accumulated other comprehensive income (loss) | ($97,245) | ($62,089) | [1] |
[1] | Derived from audited financial statements. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenues | $542,043 | $478,951 |
Other income (expense), net | 5,116 | 11,028 |
Net income | 65,189 | 67,696 |
Reclassification out of accumulated other comprehensive income (loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | -1,043 | 3,306 |
Gain (loss) on cash flow hedges, net of taxes | Reclassification out of accumulated other comprehensive income (loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenues | 2,381 | 2,756 |
Operating expenses | -3,436 | 550 |
Gain (loss) on available-for-sale securities | Reclassification out of accumulated other comprehensive income (loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | $12 | $0 |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2014 | Dec. 03, 2013 | |
Stock Repurchase Program [Abstract] | |||
Stock repurchase program authorized amount | $500,000,000 | $500,000,000 | |
Remaining amount available for further repurchases | 200,300,000 | ||
Accelerated share repurchase amount | 180,000,000 | ||
Prepayment amount | 180,000,000 | ||
Value of initial share delivery | 144,000,000 | ||
Average price paid (in dollars per share) | $43.77 | ||
Remaining repurchase amount | $36,000,000 | ||
Settlement period for remaining balance | 6 months |
Stock_Repurchase_Program_Stock
Stock Repurchase Program - Stock Repurchase Activities (Detail) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | |
Stock Repurchase Program | |||
Shares repurchased | 3,290 | 1,422 | |
Average purchase price | $43.77 | $38.50 | |
Payments for Repurchase of Common Stock | $144,000 | [1] | $54,747 |
Reissuance of treasury stock | 782 | 1,309 | |
[1] | Does not include $36.0 million equity forward contract related to the above-referenced 2015 ASR. |
Stock_Compensation_Expense_Det
Stock Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | $20,581 | $18,118 |
Income tax benefit | -4,699 | -4,220 |
Stock compensation expense after taxes | 15,882 | 13,898 |
Cost of license | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | 2,118 | 1,861 |
Cost of maintenance and service | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | 542 | 428 |
Research and development expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | 10,200 | 8,916 |
Sales and marketing expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | 4,247 | 3,732 |
General and administrative expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | $3,474 | $3,181 |
Stock_Compensation_Additional_
Stock Compensation - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unamortized share-based compensation expense | $137.80 |
Weighted-average period of total compensation costs to be recognized in years | 2 years 7 months 6 days |
Stock_Compensation_Schedule_of
Stock Compensation - Schedule of Intrinsic Value of Equity Awards Exercised (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Stock Compensation [Abstract] | ||
Intrinsic value of awards exercised | $11,517 | $16,199 |
Net_Income_per_Share_Reconcili
Net Income per Share - Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share (Detail) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | ||
Earnings Per Share [Abstract] | ||||
Net income | $65,189 | $67,696 | ||
Weighted-average common shares for basic net income per share (shares) | 154,458 | 154,066 | ||
Dilutive effect of potential common shares from equity-based compensation (shares) | 2,748 | 2,690 | ||
Weighted-average common shares for diluted net income per share (shares) | 157,206 | 156,756 | ||
Basic (in USD per share) | $0.42 | $0.44 | ||
Diluted (in USD per share) | $0.41 | $0.43 | ||
Anti-dilutive employee stock-based awards excluded (shares) | 2,440 | [1] | 1,378 | [1] |
[1] | These stock options and unvested restricted stock units and restricted stock awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were antidilutive for the respective periods, they could be dilutive in the future. |
Segment_Disclosure_Additional_
Segment Disclosure - Additional information (Detail) | 3 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Segment | Customer | |
Customer | Segment | |
Segment Reporting Information [Line Items] | ||
Number of reportable operating segment | 1 | 1 |
Number of major customers | 1 | 1 |
Customer concentration risk | Revenue | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenues contributed by major customers | 11.30% | 11.60% |
Segment_Disclosure_Revenues_Re
Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $542,043 | $478,951 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 277,587 | 233,627 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 71,883 | 66,654 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 60,852 | 64,320 |
Asia-Pacific And Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $131,721 | $114,350 |
Other_Income_Expense_net_Compo
Other Income (Expense), net - Components of Other Income (Expense), Net (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Other Nonoperating Income (Expense) | ||
Interest income | $1,148 | $367 |
Interest expense | -653 | -357 |
Gain (loss) on assets related to executive deferred compensation plan | -697 | 1,042 |
Foreign currency exchange gain (loss) | 3,694 | 893 |
Other, net | 1,624 | 9,083 |
Total | $5,116 | $11,028 |
Taxes_Provision_for_Income_Tax
Taxes - Provision for Income Taxes and Effective Tax Rates (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $76,615 | $71,184 |
Provision (benefit) for income tax | $11,426 | $3,488 |
Effective tax rate | 14.90% | 4.90% |
Taxes_Additional_Information_D
Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2015 |
Taxes [Line Items] | |||
Statutory federal income tax rate | 35.00% | ||
Gross unrecognized tax benefits | $126.10 | ||
Unrecognized tax benefits that would affect effective tax rate | 122.5 | ||
Estimated potential decrease in underlying unrecognized tax benefits, minimum | 0 | ||
Estimated potential decrease in underlying unrecognized tax benefits, maximum | 31 | ||
IRS | Fiscal Year 2012 | |||
Taxes [Line Items] | |||
Unrecognized tax benefits decrease resulting from settlement | 10 | ||
Taiwan | Fiscal Year 2012 | |||
Taxes [Line Items] | |||
Unrecognized tax benefits decrease resulting from settlement | 1.1 | ||
Forecast | |||
Taxes [Line Items] | |||
Expected research tax credit benefit | $12.40 |