Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2016 | Feb. 19, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SNPS | |
Entity Registrant Name | SYNOPSYS INC | |
Entity Central Index Key | 883,241 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 151,527,833 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 582,986 | $ 836,188 | |
Short-term investments | 122,948 | 128,747 | |
Total cash, cash equivalents and short-term investments | 705,934 | 964,935 | |
Accounts receivable, net | 354,766 | 385,694 | |
Income taxes receivable and prepaid taxes | 48,550 | 46,732 | |
Prepaid and other current assets | 91,278 | 71,446 | |
Total current assets | 1,200,528 | 1,468,807 | |
Property and equipment, net | 261,235 | 263,077 | |
Goodwill | 2,472,844 | 2,471,241 | |
Intangible assets, net | 337,380 | 363,659 | |
Long-term prepaid taxes | 19,207 | 18,736 | |
Long-term deferred income taxes | 280,009 | 273,909 | |
Other long-term assets | 176,320 | 186,310 | |
Total assets | 4,747,523 | 5,045,739 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 254,872 | 385,542 | |
Accrued income taxes | 16,386 | 19,565 | |
Deferred revenue | 934,524 | 968,246 | |
Short-term debt | 227,500 | 205,000 | |
Total current liabilities | 1,433,282 | 1,578,353 | |
Long-term accrued income taxes | 34,509 | 37,763 | |
Long-term deferred revenue | 96,643 | 93,613 | |
Other long-term liabilities | 192,706 | 202,021 | |
Total liabilities | 1,757,140 | 1,911,750 | |
Stockholders’ equity: | |||
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding | 0 | 0 | |
Common stock, $0.01 par value: 400,000 shares authorized; 151,509 and 155,157 shares outstanding, respectively | 1,515 | 1,552 | |
Capital in excess of par value | 1,602,206 | 1,610,460 | |
Retained earnings | 1,784,317 | 1,725,727 | |
Treasury stock, at cost: 5,755 and 2,107 shares, respectively | (268,860) | (98,375) | |
Accumulated other comprehensive income (loss) | (128,795) | (105,375) | |
Total stockholders’ equity | 2,990,383 | 3,133,989 | |
Total liabilities and stockholders’ equity | $ 4,747,523 | $ 5,045,739 | |
[1] | Derived from audited financial statements. |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2016 | Oct. 31, 2015 | [1] |
Statement of Financial Position [Abstract] | |||
Preferred Stock, par value | $ 0.01 | $ 0.01 | |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 | |
Preferred Stock, shares outstanding | 0 | 0 | |
Common Stock, par value | $ 0.01 | $ 0.01 | |
Common Stock, shares authorized | 400,000,000 | 400,000,000 | |
Common Stock, shares outstanding | 151,509,000 | 155,157,000 | |
Treasury stock, shares | 5,755,000 | 2,107,000 | |
[1] | Derived from audited financial statements. |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Revenue: | ||
Time-based license | $ 464,280 | $ 431,026 |
Upfront license | 43,437 | 46,480 |
Maintenance and service | 60,887 | 64,537 |
Total revenue | 568,604 | 542,043 |
Cost of revenue: | ||
License | 76,393 | 70,784 |
Maintenance and service | 22,525 | 27,983 |
Amortization of intangible assets | 30,526 | 25,866 |
Total cost of revenue | 129,444 | 124,633 |
Gross margin | 439,160 | 417,410 |
Operating expenses: | ||
Research and development | 196,705 | 181,610 |
Sales and marketing | 122,620 | 106,169 |
General and administrative | 39,697 | 36,354 |
Amortization of intangible assets | 6,935 | 6,442 |
Restructuring charges | 2,093 | 15,336 |
Total operating expenses | 368,050 | 345,911 |
Operating income | 71,110 | 71,499 |
Other income (expense), net | (6,768) | 5,116 |
Income before income taxes | 64,342 | 76,615 |
Provision (benefit) for income taxes | 4,307 | 11,426 |
Net income | $ 60,035 | $ 65,189 |
Net income per share: | ||
Basic (in USD per share) | $ 0.39 | $ 0.42 |
Diluted (in USD per share) | $ 0.39 | $ 0.41 |
Shares used in computing per share amounts: | ||
Basic (shares) | 152,968 | 154,458 |
Diluted (shares) | 155,283 | 157,206 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 60,035 | $ 65,189 |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | (14,455) | (23,453) |
Changes in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented | (47) | 17 |
Cash flow hedges: | ||
Deferred gains (losses), net of tax of $3,652 and $4,845, respectively | (12,634) | (12,775) |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(1,381) and $(390), respectively | 3,716 | 1,055 |
Other comprehensive income (loss), net of tax effects | (23,420) | (35,156) |
Comprehensive income | $ 36,615 | $ 30,033 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Deferred gains (losses), tax | $ 3,652 | $ 4,845 |
Reclassification adjustment on deferred (gains) losses included in net income, tax | (1,381) | (390) |
Changes in unrealized gains (losses) on available-for-sale securities, tax | $ 0 | $ 0 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | ||
Cash flow from operating activities: | |||
Net income | $ 60,035 | $ 65,189 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Amortization and depreciation | 56,436 | 50,529 | |
Stock compensation | 23,013 | 20,581 | |
Allowance for doubtful accounts | 250 | 300 | |
(Gain) loss on sale of investments | 3 | (12) | |
Excess tax benefits from stock-based compensation | (440) | 0 | |
Deferred income taxes | (3,955) | (158) | |
Net changes in operating assets and liabilities, net of acquired assets and liabilities: | |||
Accounts receivable | 30,365 | 40,857 | |
Prepaid and other current assets | (27,825) | (42,860) | |
Other long-term assets | 9,008 | (7,597) | |
Accounts payable and accrued liabilities | (145,229) | (125,320) | |
Income taxes | (4,734) | (14,024) | |
Deferred revenue | (32,097) | (74,828) | |
Net cash used in operating activities | (35,170) | (87,343) | |
Cash flows from investing activities: | |||
Proceeds from sales and maturities of short-term investments | 40,489 | 8,012 | |
Purchases of short-term investments | (34,933) | (128,427) | |
Proceeds from sales of long-term investments | 161 | 0 | |
Purchases of property and equipment | (15,337) | (19,607) | |
Cash paid for acquisitions and intangible assets, net of cash acquired | (18,941) | 0 | |
Capitalization of software development costs | (920) | (909) | |
Net cash used in investing activities | (29,481) | (140,931) | |
Cash flows from financing activities: | |||
Proceeds from credit facility | 30,000 | 250,000 | |
Repayment of debt | (7,500) | (22,723) | |
Issuances of common stock | (3,725) | 10,542 | |
Purchase of equity forward contract | (40,000) | (36,000) | |
Purchases of treasury stock | (160,000) | (144,000) | |
Excess tax benefits from stock-based compensation | 440 | 0 | |
Other | (1,470) | (14) | |
Net cash provided by (used in) financing activities | (182,255) | 57,805 | |
Effect of exchange rate changes on cash and cash equivalents | (6,296) | (18,469) | |
Net change in cash and cash equivalents | (253,202) | (188,938) | |
Cash and cash equivalents, beginning of year | 836,188 | [1] | 985,762 |
Cash and cash equivalents, end of period | $ 582,986 | $ 796,824 | |
[1] | Derived from audited financial statements. |
Description of Business
Description of Business | 3 Months Ended |
Jan. 31, 2016 | |
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 by designers along the entire silicon to software spectrum, from engineers creating advanced semiconductors to software developers seeking to ensure the quality and security of their products. The Company is a global leader in supplying the electronic design automation (EDA) software that engineers use to design 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 offerings, which are sold primarily to semiconductor and electronics companies, 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 and security of software code in a wide variety of industries, including electronics, financial services, energy, and industrials. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2016 | |
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, 2015 as filed with the SEC on December 14, 2015. 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 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. Fiscal 2016 and 2015 are both 52-week years. The first fiscal quarters of fiscal 2016 and 2015 ended on January 30, 2016 and January 31, 2015, respectively, and the prior fiscal year ended on October 31, 2015. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill as of January 31, 2016 and October 31, 2015 consisted of the following: (in thousands) As of October 31, 2015 $ 2,471,241 Additions 8,904 Adjustments(1) 134 Effect of foreign currency translation (7,435 ) As of January 31, 2016 $ 2,472,844 (1) Adjustments relate to changes in estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was finalized during the reporting period. Intangible assets as of January 31, 2016 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 595,256 $ 397,645 $ 197,611 Customer relationships 232,001 121,388 110,613 Contract rights intangible 165,952 150,172 15,780 Covenants not to compete 2,530 2,530 — Trademarks and trade names 20,729 11,457 9,272 Capitalized software development costs 26,431 22,327 4,104 Total $ 1,042,899 $ 705,519 $ 337,380 Intangible assets as of October 31, 2015 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 584,293 $ 375,395 $ 208,898 Customer relationships 231,908 115,170 116,738 Contract rights intangible 165,623 141,763 23,860 Covenants not to compete 2,530 2,530 — Trademarks and trade names 20,729 10,665 10,064 Capitalized software development costs 25,511 21,412 4,099 Total $ 1,030,594 $ 666,935 $ 363,659 Amortization expense related to intangible assets consisted of the following: Three Months Ended 2016 2015 (in thousands) Core/developed technology $ 22,256 $ 18,009 Customer relationships 6,193 5,748 Contract rights intangible 8,221 7,852 Trademarks and trade names 791 699 Capitalized software development costs(2) 915 906 Total $ 38,376 $ 33,214 (2) 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 2016 $ 91,536 2017 90,821 2018 65,607 2019 42,487 2020 28,506 2021 and thereafter 18,423 Total $ 337,380 |
Financial Assets and Liabilitie
Financial Assets and Liabilities | 3 Months Ended |
Jan. 31, 2016 | |
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 sheets 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. As of January 31, 2016 , the balances of our available-for-sale securities are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 199,561 $ — $ — $ — $ 199,561 Commercial paper 1,199 — — — 1,199 Certificates of deposit 2,400 — — — 2,400 U.S. government agency securities 4,337 — — — 4,337 Total: $ 207,497 $ — $ — $ — $ 207,497 Short-term investments: U.S. government agency securities $ 13,718 $ 6 $ (6 ) $ — $ 13,718 Municipal bonds 1,402 1 — — 1,403 Certificates of deposit 8,297 — — — 8,297 Commercial paper 11,430 — — — 11,430 Corporate debt securities 65,160 8 (61 ) — 65,107 Asset-backed securities 22,009 5 (25 ) — 21,989 Non-U.S. government agency securities 1,006 — (2 ) — 1,004 Total: $ 123,022 $ 20 $ (94 ) $ — $ 122,948 (1) See Note 5. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. As of October 31, 2015 , the balances of our available-for-sale securities are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 233,839 $ — $ — $ — $ 233,839 Commercial paper 1,834 — — — 1,834 Certificates of deposit 3,500 — — — 3,500 Asset-backed securities 300 — (1 ) — 299 Total: $ 239,473 $ — $ (1 ) $ — $ 239,472 Short-term investments: U.S. government agency securities $ 12,615 $ 3 $ (4 ) $ — $ 12,614 Municipal bonds 1,403 1 (1 ) — 1,403 Certificates of deposit 9,800 — — — 9,800 Commercial paper 12,129 — — — 12,129 Corporate debt securities 67,201 27 (40 ) — 67,188 Asset-backed securities 24,619 2 (13 ) — 24,608 Non-U.S. government agency securities 1,007 — (2 ) — 1,005 Total: $ 128,774 $ 33 $ (60 ) $ — $ 128,747 (1) See Note 5. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. As of January 31, 2016 , the stated maturities of the Company's available-for-sale securities are: Amortized Cost Fair Value (in thousands) Due in 1 year or less $ 78,384 $ 78,349 Due in 2-5 years 42,914 42,871 Due in 6-10 years 1,724 1,728 Total $ 123,022 $ 122,948 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 1 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 2016 2015 (in thousands) Gain (loss) recorded in other income (expense), net $ (3,763 ) $ (2,758 ) The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: As of January 31, 2016 As of October 31, 2015 (in thousands) Total gross notional amount $ 736,676 $ 781,752 Net fair value $ (16,412 ) $ (3,819 ) 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 derivative instruments designated as hedging instruments Fair values of derivative instruments not designated as hedging instruments (in thousands) As of January 31, 2016 Other current assets $ 2,042 $ 1 Accrued liabilities $ 18,031 $ 424 As of October 31, 2015 Other current assets $ 6,461 $ 1 Accrued liabilities $ 10,141 $ 140 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) recognized in OCI on derivatives Amount of gain (loss) recognized in OCI on derivatives (effective portion) Location of gain (loss) reclassified from OCI Amount of gain (loss) reclassified from OCI (effective portion) (in thousands) Three months ended Foreign exchange contracts Revenue $ (1,491 ) Revenue $ 212 Foreign exchange contracts Operating expenses (11,268 ) Operating expenses (3,928 ) Total $ (12,759 ) $ (3,716 ) Three months ended 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 ) 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 gain (loss) recognized in income statement on derivatives (ineffective portion)(1) Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2) (in thousands) For the three months ended January 31, 2016 $ 254 $ 1,402 For the three months ended January 31, 2015 $ 740 $ 1,072 (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, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | Fair Value Measures Accounting Standards Codification (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, 2016 : Fair Value Measurement Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Assets Cash equivalents: Money market funds $ 199,561 $ 199,561 $ — $ — Commercial paper 1,199 — 1,199 — Certificates of deposit 2,400 — 2,400 — U.S. government agency securities 4,337 — 4,337 — Short-term investments: U.S. government agency securities 13,718 — 13,718 — Municipal bonds 1,403 — 1,403 — Certificates of deposit 8,297 — 8,297 — Commercial paper 11,430 — 11,430 — Corporate debt securities 65,107 — 65,107 — Asset-backed securities 21,989 — 21,989 — Non-U.S. government agency securities 1,004 — 1,004 — Prepaid and other current assets: Foreign currency derivative contracts 2,043 — 2,043 — Other long-term assets: Deferred compensation plan assets 149,401 149,401 — — Total assets $ 481,889 $ 348,962 $ 132,927 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 18,455 $ — $ 18,455 $ — Other long-term assets: Deferred compensation plan liabilities 149,401 149,401 — — Total liabilities $ 167,856 $ 149,401 $ 18,455 $ — Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2015 : Fair Value Measurement Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Assets Cash equivalents: Money market funds $ 233,839 $ 233,839 $ — $ — Commercial paper $ 1,834 $ — $ 1,834 $ — Certificates of deposit $ 3,500 $ — $ 3,500 $ — Asset-backed securities $ 299 $ — $ 299 $ — Short-term investments: U.S. government agency securities $ 12,614 $ — $ 12,614 $ — Municipal bonds $ 1,403 $ — $ 1,403 $ — Certificates of deposit $ 9,800 $ — $ 9,800 $ — Commercial paper $ 12,129 $ — $ 12,129 $ — Corporate debt securities $ 67,188 $ — $ 67,188 $ — Asset-backed securities $ 24,608 $ — $ 24,608 $ — Non-U.S. government agency securities $ 1,005 $ — $ 1,005 $ — Prepaid and other current assets: Foreign currency derivative contracts 6,462 — 6,462 — Other long-term assets: Deferred compensation plan assets 158,462 158,462 — — Total assets $ 533,143 $ 392,301 $ 140,842 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 10,281 $ — $ 10,281 $ — Other long-term liabilities: Deferred compensation plan liabilities $ 158,462 $ 158,462 $ — $ — Total liabilities $ 168,743 $ 158,462 $ 10,281 $ — 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, 2016 and 2015 , respectively. As of January 31, 2016 , the fair value of the Company’s non-marketable securities was $10.2 million , of which $6.6 million and $3.6 million were accounted for under the cost method and equity method, respectively. As of October 31, 2015 , the fair value of non-marketable securities was $10.3 million , of which $6.6 million and $3.7 million were accounted for under the cost method and equity method, respectively. |
Liabilities and Restructuring C
Liabilities and Restructuring Charges | 3 Months Ended |
Jan. 31, 2016 | |
Liabilities and Restructuring Charges [Abstract] | |
Liabilities and Restructuring Charges | Liabilities and Restructuring Charges During fiscal 2015, the Company recorded restructuring costs of $15.1 million which included a voluntary retirement program (VRP) and a minimal headcount reduction program. As of October 31, 2015, there was no outstanding balance in restructuring charges. During the first quarter of fiscal 2016, the Company recorded $2.1 million of restructuring charges. Payments of these restructuring charges are anticipated to be completed before the end of fiscal 2016. Accounts payable and accrued liabilities consist of: January 31, October 31, (in thousands) Payroll and related benefits $ 171,906 $ 315,078 Other accrued liabilities 62,806 60,545 Accounts payable 20,160 9,919 Total $ 254,872 $ 385,542 Other long-term liabilities consist of: January 31, October 31, (in thousands) Deferred compensation liability $ 149,401 $ 158,462 Other long-term liabilities 43,305 43,559 Total $ 192,706 $ 202,021 |
Credit Facility
Credit Facility | 3 Months Ended |
Jan. 31, 2016 | |
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 in October 2016. The Company can elect to make prepayments on the Term Loan, in whole or in part, without premium or penalty. On May 19, 2015, the Credit Agreement was amended and restated in order to increase the size of the Revolver from $350.0 million to $500.0 million and to extend the termination date of the Revolver from October 14, 2016 to May 19, 2020 . The amended and restated Credit Agreement also replaced a financial covenant requiring the Company to maintain a minimum specified level of cash with a covenant requiring a minimum interest coverage ratio. Subject to obtaining additional commitments from lenders, the principal amount of the loans provided under the amended and restated Credit Agreement may be increased by the Company by up to an additional $150.0 million through May 2019. The amended and restated Credit Agreement contains financial covenants requiring the Company to operate within a maximum leverage ratio and a minimum interest coverage ratio, as well as other non-financial covenants. As of January 31, 2016 , the Company is in compliance with all financial covenants. As of January 31, 2016 , the Company had a $37.5 million outstanding balance under the Term Loan and a $190.0 million outstanding balance under the Revolver, all of which are considered short term liabilities. As of October 31, 2015 , the Company had a $45.0 million outstanding balance under the Term Loan and a $160.0 million outstanding balance under the Revolver, all of which are considered short term liabilities. 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 amended and restated Credit Agreement. As of January 31, 2016 , borrowings under the Term Loan bore interest at LIBOR +1.125% and the applicable interest rate for the Revolver was LIBOR +1.000% . In addition, commitment fees are payable on the Revolver at rates between 0.125% and 0.200% 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 amended and restated Credit Agreement have a variable interest rate structure and are classified within Level 2 of the fair value hierarchy. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Jan. 31, 2016 | |
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, (in thousands) Cumulative currency translation adjustments $ (104,963 ) $ (90,508 ) Unrealized gain (loss) on derivative instruments, net of taxes (23,757 ) (14,839 ) Unrealized gain (loss) on available-for-sale securities, net of taxes (75 ) (28 ) Total accumulated other comprehensive income (loss) $ (128,795 ) $ (105,375 ) The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: Three Months Ended 2016 2015 (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 $ 212 $ 2,381 Operating expenses (3,928 ) (3,436 ) Gain (loss) on available-for-sale securities Other income (expense) $ (3 ) 12 Total reclassifications into net income $ (3,719 ) $ (1,043 ) |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Jan. 31, 2016 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program The Company’s Board of Directors (the 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 September 1, 2015. 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, as amended (the 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, 2016 , $300.0 million remained available for further repurchases under the program. In August 2015, the Company entered into an accelerated share repurchase agreement (the August 2015 ASR) to repurchase an aggregate of $100.0 million of the Company’s common stock. Pursuant to the August 2015 ASR, the Company made a prepayment of $100.0 million and received an initial share delivery of shares valued at $80.0 million . The remaining balance of $20.0 million was included within stockholders' equity during fiscal 2015 and was settled in the first quarter of fiscal 2016. Total shares purchased under the August 2015 ASR were approximately 2.1 million shares, at an average purchase price of $48.06 per share. In December 2015, the Company entered into two simultaneous accelerated share repurchase agreements (December 2015 ASRs) to repurchase an aggregate of $200.0 million of the Company’s common stock. Pursuant to the December 2015 ASRs, the Company made a prepayment of $200.0 million and received initial share deliveries of shares valued at $160.0 million with an average purchase price of $46.08 per share. The remaining balance of $40.0 million is anticipated to be settled on or before April 29, 2016, upon completion of the repurchase. Under the terms of the December 2015 ASRs, 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 2016 2015 (in thousands) Total shares repurchased 3,849 3,290 Total cost of the repurchased shares(1) $ 180,000 $ 144,000 Reissuance of treasury stock 200 782 (1) The first quarter of fiscal 2016 includes the settlement of the $20.0 million equity forward contract related to the above-referenced August 2015 ASR and does not include the $40.0 million equity forward contract related to the above-referenced December 2015 ASRs. |
Stock Compensation
Stock Compensation | 3 Months Ended |
Jan. 31, 2016 | |
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 2016 2015 (in thousands) Cost of license $ 2,596 $ 2,118 Cost of maintenance and service 579 542 Research and development expense 11,585 10,200 Sales and marketing expense 4,701 4,247 General and administrative expense 3,552 3,474 Stock compensation expense before taxes 23,013 20,581 Income tax benefit (5,153 ) (4,699 ) Stock compensation expense after taxes $ 17,860 $ 15,882 As of January 31, 2016 , there was $157.3 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 2016 2015 (in thousands) Intrinsic value of awards exercised $ 1,274 $ 11,517 |
Net Income per Share
Net Income per Share | 3 Months Ended |
Jan. 31, 2016 | |
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 2016 2015 (in thousands, except per share amounts) Numerator: Net income $ 60,035 $ 65,189 Denominator: Weighted-average common shares for basic net income per share 152,968 154,458 Dilutive effect of potential common shares from equity-based compensation 2,315 2,748 Weighted-average common shares for diluted net income per share 155,283 157,206 Net income per share: Basic $ 0.39 $ 0.42 Diluted $ 0.39 $ 0.41 Anti-dilutive employee stock-based awards excluded(1) 2,441 2,440 (1) These employee stock-based awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future. |
Segment Disclosure
Segment Disclosure | 3 Months Ended |
Jan. 31, 2016 | |
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 2016 2015 (in thousands) Revenue: United States $ 274,930 $ 277,587 Europe 71,935 71,883 Japan 53,246 60,852 Asia-Pacific and Other 168,493 131,721 Consolidated $ 568,604 $ 542,043 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 12.2% and 11.3% of the Company’s unaudited condensed consolidated revenue in the three months ended January 31, 2016 and 2015 , respectively. |
Other Income (Expense), net
Other Income (Expense), net | 3 Months Ended |
Jan. 31, 2016 | |
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 2016 2015 (in thousands) Interest income $ 580 $ 1,148 Interest expense (673 ) (653 ) Gain (loss) on assets related to executive deferred compensation plan (9,394 ) (697 ) Foreign currency exchange gain (loss) 580 3,694 Other, net 2,139 1,624 Total $ (6,768 ) $ 5,116 |
Taxes
Taxes | 3 Months Ended |
Jan. 31, 2016 | |
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 (benefit) for income taxes and the effective tax rates: Three Months Ended 2016 2015 (in thousands) Income before income taxes $ 64,342 $ 76,615 Provision (benefit) for income taxes $ 4,307 $ 11,426 Effective tax rate 6.7 % 14.9 % The Company’s effective tax rate for the three months ended January 31, 2016 is lower than the statutory federal income tax rate of 35% primarily due to lower taxes on certain earnings considered as indefinitely reinvested in foreign operations and U.S. federal and California research tax credits, partially offset by state taxes and the tax effect of non-deductible stock compensation and the integration of acquired technologies. The Company's effective tax rate decreased in the three months ended January 31, 2016 , as compared to the same period in fiscal 2015 , primarily due to the permanent reinstatement of the U.S. federal research tax credit, partially offset by an increase in the valuation allowance on deferred tax assets. On December 18, 2015, the president signed into law the Protecting Americans from Tax Hikes Act of 2015 which permanently reinstated the research tax credit retroactive to January 1, 2015. As a result of the new legislation, the Company recognized a benefit in the first quarter of 2016 related to ten months of fiscal 2015 and two months of fiscal 2016 as well as a benefit to the annual effective tax rate for ten months of fiscal 2016. 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. On July 27, 2015, the Tax Court issued an opinion ( Altera Corp. et al. v. Commissioner ) regarding the treatment of stock-based compensation expense in intercompany cost-sharing arrangements. However, U.S. Treasury has not withdrawn the requirement to include stock-based compensation from its regulations. Also, there is uncertainty related to the IRS response to the Tax Court opinion, the final resolution of this issue, and the potential favorable benefits to the Company. As such, no impact will be recorded at this time. The Company will continue to monitor developments related to this opinion and the potential impact of those developments on the Company’s current and prior fiscal years. The Company’s total gross unrecognized tax benefits at January 31, 2016 are $116.7 million exclusive of interest and penalties. If the total gross unrecognized tax benefits at January 31, 2016 were recognized in the future, approximately $113.9 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 $24 million . During the first quarter of fiscal 2016, the Company early adopted Accounting Standards Update (ASU) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17) on a retrospective basis. As required by ASU 2015-17, all deferred tax assets and liabilities are classified as non-current in the Company's unaudited condensed consolidated balance sheets, which is a change from the Company's prior period presentations whereby certain of its deferred tax assets were classified as current and the remainder were classified as non-current. Upon adoption of ASU 2015-17, current deferred tax assets of $95.0 million in the Company's October 31, 2015 consolidated balance sheet were reclassified as non-current. State Examinations In the first quarter of fiscal 2016, the Company reached final settlement with the California Franchise Tax Board for fiscal 2011, 2010 and 2009. As a result of the settlement, the Company reduced its deferred tax assets by $4.9 million , recognized $10.3 million in unrecognized tax benefits, and increased its valuation allowance by $5.4 million . 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 Pronou
Effect of New Accounting Pronouncements | 3 Months Ended |
Jan. 31, 2016 | |
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. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date.” With the issuance of ASU 2015-14, the new revenue guidance ASU 2014-09 will be effective for fiscal 2019, including interim periods within that reporting period, using one of two prescribed retrospective methods. The Company is currently in the process of evaluating the impact of adoption 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 Accoun23
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2016 | |
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 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. Fiscal 2016 and 2015 are both 52-week years. The first fiscal quarters of fiscal 2016 and 2015 ended on January 30, 2016 and January 31, 2015, respectively, and the prior fiscal year ended on October 31, 2015. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. |
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. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date.” With the issuance of ASU 2015-14, the new revenue guidance ASU 2014-09 will be effective for fiscal 2019, including interim periods within that reporting period, using one of two prescribed retrospective methods. The Company is currently in the process of evaluating the impact of adoption 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | Goodwill as of January 31, 2016 and October 31, 2015 consisted of the following: (in thousands) As of October 31, 2015 $ 2,471,241 Additions 8,904 Adjustments(1) 134 Effect of foreign currency translation (7,435 ) As of January 31, 2016 $ 2,472,844 (1) Adjustments relate to changes in estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was finalized during the reporting period. |
Summary of Intangible Assets | Intangible assets as of January 31, 2016 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 595,256 $ 397,645 $ 197,611 Customer relationships 232,001 121,388 110,613 Contract rights intangible 165,952 150,172 15,780 Covenants not to compete 2,530 2,530 — Trademarks and trade names 20,729 11,457 9,272 Capitalized software development costs 26,431 22,327 4,104 Total $ 1,042,899 $ 705,519 $ 337,380 Intangible assets as of October 31, 2015 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 584,293 $ 375,395 $ 208,898 Customer relationships 231,908 115,170 116,738 Contract rights intangible 165,623 141,763 23,860 Covenants not to compete 2,530 2,530 — Trademarks and trade names 20,729 10,665 10,064 Capitalized software development costs 25,511 21,412 4,099 Total $ 1,030,594 $ 666,935 $ 363,659 |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets consisted of the following: Three Months Ended 2016 2015 (in thousands) Core/developed technology $ 22,256 $ 18,009 Customer relationships 6,193 5,748 Contract rights intangible 8,221 7,852 Trademarks and trade names 791 699 Capitalized software development costs(2) 915 906 Total $ 38,376 $ 33,214 (2) 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 2016 $ 91,536 2017 90,821 2018 65,607 2019 42,487 2020 28,506 2021 and thereafter 18,423 Total $ 337,380 |
Financial Assets and Liabilit25
Financial Assets and Liabilities (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Financial Assets And Liabilities [Abstract] | |
Summary of Available-for-Sale Securities | As of January 31, 2016 , the balances of our available-for-sale securities are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 199,561 $ — $ — $ — $ 199,561 Commercial paper 1,199 — — — 1,199 Certificates of deposit 2,400 — — — 2,400 U.S. government agency securities 4,337 — — — 4,337 Total: $ 207,497 $ — $ — $ — $ 207,497 Short-term investments: U.S. government agency securities $ 13,718 $ 6 $ (6 ) $ — $ 13,718 Municipal bonds 1,402 1 — — 1,403 Certificates of deposit 8,297 — — — 8,297 Commercial paper 11,430 — — — 11,430 Corporate debt securities 65,160 8 (61 ) — 65,107 Asset-backed securities 22,009 5 (25 ) — 21,989 Non-U.S. government agency securities 1,006 — (2 ) — 1,004 Total: $ 123,022 $ 20 $ (94 ) $ — $ 122,948 (1) See Note 5. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. As of October 31, 2015 , the balances of our available-for-sale securities are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 233,839 $ — $ — $ — $ 233,839 Commercial paper 1,834 — — — 1,834 Certificates of deposit 3,500 — — — 3,500 Asset-backed securities 300 — (1 ) — 299 Total: $ 239,473 $ — $ (1 ) $ — $ 239,472 Short-term investments: U.S. government agency securities $ 12,615 $ 3 $ (4 ) $ — $ 12,614 Municipal bonds 1,403 1 (1 ) — 1,403 Certificates of deposit 9,800 — — — 9,800 Commercial paper 12,129 — — — 12,129 Corporate debt securities 67,201 27 (40 ) — 67,188 Asset-backed securities 24,619 2 (13 ) — 24,608 Non-U.S. government agency securities 1,007 — (2 ) — 1,005 Total: $ 128,774 $ 33 $ (60 ) $ — $ 128,747 (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, 2016 , the stated maturities of the Company's available-for-sale securities are: Amortized Cost Fair Value (in thousands) Due in 1 year or less $ 78,384 $ 78,349 Due in 2-5 years 42,914 42,871 Due in 6-10 years 1,724 1,728 Total $ 123,022 $ 122,948 |
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 2016 2015 (in thousands) Gain (loss) recorded in other income (expense), net $ (3,763 ) $ (2,758 ) |
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, 2016 As of October 31, 2015 (in thousands) Total gross notional amount $ 736,676 $ 781,752 Net fair value $ (16,412 ) $ (3,819 ) |
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 derivative instruments designated as hedging instruments Fair values of derivative instruments not designated as hedging instruments (in thousands) As of January 31, 2016 Other current assets $ 2,042 $ 1 Accrued liabilities $ 18,031 $ 424 As of October 31, 2015 Other current assets $ 6,461 $ 1 Accrued liabilities $ 10,141 $ 140 |
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) recognized in OCI on derivatives Amount of gain (loss) recognized in OCI on derivatives (effective portion) Location of gain (loss) reclassified from OCI Amount of gain (loss) reclassified from OCI (effective portion) (in thousands) Three months ended Foreign exchange contracts Revenue $ (1,491 ) Revenue $ 212 Foreign exchange contracts Operating expenses (11,268 ) Operating expenses (3,928 ) Total $ (12,759 ) $ (3,716 ) Three months ended 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 ) |
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 gain (loss) recognized in income statement on derivatives (ineffective portion)(1) Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2) (in thousands) For the three months ended January 31, 2016 $ 254 $ 1,402 For the three months ended January 31, 2015 $ 740 $ 1,072 (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, 2016 | |
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, 2016 : Fair Value Measurement Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Assets Cash equivalents: Money market funds $ 199,561 $ 199,561 $ — $ — Commercial paper 1,199 — 1,199 — Certificates of deposit 2,400 — 2,400 — U.S. government agency securities 4,337 — 4,337 — Short-term investments: U.S. government agency securities 13,718 — 13,718 — Municipal bonds 1,403 — 1,403 — Certificates of deposit 8,297 — 8,297 — Commercial paper 11,430 — 11,430 — Corporate debt securities 65,107 — 65,107 — Asset-backed securities 21,989 — 21,989 — Non-U.S. government agency securities 1,004 — 1,004 — Prepaid and other current assets: Foreign currency derivative contracts 2,043 — 2,043 — Other long-term assets: Deferred compensation plan assets 149,401 149,401 — — Total assets $ 481,889 $ 348,962 $ 132,927 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 18,455 $ — $ 18,455 $ — Other long-term assets: Deferred compensation plan liabilities 149,401 149,401 — — Total liabilities $ 167,856 $ 149,401 $ 18,455 $ — Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2015 : Fair Value Measurement Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Assets Cash equivalents: Money market funds $ 233,839 $ 233,839 $ — $ — Commercial paper $ 1,834 $ — $ 1,834 $ — Certificates of deposit $ 3,500 $ — $ 3,500 $ — Asset-backed securities $ 299 $ — $ 299 $ — Short-term investments: U.S. government agency securities $ 12,614 $ — $ 12,614 $ — Municipal bonds $ 1,403 $ — $ 1,403 $ — Certificates of deposit $ 9,800 $ — $ 9,800 $ — Commercial paper $ 12,129 $ — $ 12,129 $ — Corporate debt securities $ 67,188 $ — $ 67,188 $ — Asset-backed securities $ 24,608 $ — $ 24,608 $ — Non-U.S. government agency securities $ 1,005 $ — $ 1,005 $ — Prepaid and other current assets: Foreign currency derivative contracts 6,462 — 6,462 — Other long-term assets: Deferred compensation plan assets 158,462 158,462 — — Total assets $ 533,143 $ 392,301 $ 140,842 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 10,281 $ — $ 10,281 $ — Other long-term liabilities: Deferred compensation plan liabilities $ 158,462 $ 158,462 $ — $ — Total liabilities $ 168,743 $ 158,462 $ 10,281 $ — |
Liabilities and Restructuring27
Liabilities and Restructuring Charges (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Liabilities and Restructuring Charges [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of: January 31, October 31, (in thousands) Payroll and related benefits $ 171,906 $ 315,078 Other accrued liabilities 62,806 60,545 Accounts payable 20,160 9,919 Total $ 254,872 $ 385,542 |
Other Long-Term Liabilities | Other long-term liabilities consist of: January 31, October 31, (in thousands) Deferred compensation liability $ 149,401 $ 158,462 Other long-term liabilities 43,305 43,559 Total $ 192,706 $ 202,021 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
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, (in thousands) Cumulative currency translation adjustments $ (104,963 ) $ (90,508 ) Unrealized gain (loss) on derivative instruments, net of taxes (23,757 ) (14,839 ) Unrealized gain (loss) on available-for-sale securities, net of taxes (75 ) (28 ) Total accumulated other comprehensive income (loss) $ (128,795 ) $ (105,375 ) |
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 2016 2015 (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 $ 212 $ 2,381 Operating expenses (3,928 ) (3,436 ) Gain (loss) on available-for-sale securities Other income (expense) $ (3 ) 12 Total reclassifications into net income $ (3,719 ) $ (1,043 ) |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase And Reissuance Activities | Stock repurchase activities are as follow: Three Months Ended 2016 2015 (in thousands) Total shares repurchased 3,849 3,290 Total cost of the repurchased shares(1) $ 180,000 $ 144,000 Reissuance of treasury stock 200 782 (1) The first quarter of fiscal 2016 includes the settlement of the $20.0 million equity forward contract related to the above-referenced August 2015 ASR and does not include the $40.0 million equity forward contract related to the above-referenced December 2015 ASRs. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
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 2016 2015 (in thousands) Cost of license $ 2,596 $ 2,118 Cost of maintenance and service 579 542 Research and development expense 11,585 10,200 Sales and marketing expense 4,701 4,247 General and administrative expense 3,552 3,474 Stock compensation expense before taxes 23,013 20,581 Income tax benefit (5,153 ) (4,699 ) Stock compensation expense after taxes $ 17,860 $ 15,882 |
Schedule of Intrinsic Value of Equity Awards Exercised | The intrinsic values of equity awards exercised during the periods are as follows: Three Months Ended 2016 2015 (in thousands) Intrinsic value of awards exercised $ 1,274 $ 11,517 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
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 2016 2015 (in thousands, except per share amounts) Numerator: Net income $ 60,035 $ 65,189 Denominator: Weighted-average common shares for basic net income per share 152,968 154,458 Dilutive effect of potential common shares from equity-based compensation 2,315 2,748 Weighted-average common shares for diluted net income per share 155,283 157,206 Net income per share: Basic $ 0.39 $ 0.42 Diluted $ 0.39 $ 0.41 Anti-dilutive employee stock-based awards excluded(1) 2,441 2,440 (1) These employee stock-based awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future. |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
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 2016 2015 (in thousands) Revenue: United States $ 274,930 $ 277,587 Europe 71,935 71,883 Japan 53,246 60,852 Asia-Pacific and Other 168,493 131,721 Consolidated $ 568,604 $ 542,043 |
Other Income (Expense), net (Ta
Other Income (Expense), net (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
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 2016 2015 (in thousands) Interest income $ 580 $ 1,148 Interest expense (673 ) (653 ) Gain (loss) on assets related to executive deferred compensation plan (9,394 ) (697 ) Foreign currency exchange gain (loss) 580 3,694 Other, net 2,139 1,624 Total $ (6,768 ) $ 5,116 |
Taxes (Tables)
Taxes (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes and Effective Tax Rates | The following table presents the provision (benefit) for income taxes and the effective tax rates: Three Months Ended 2016 2015 (in thousands) Income before income taxes $ 64,342 $ 76,615 Provision (benefit) for income taxes $ 4,307 $ 11,426 Effective tax rate 6.7 % 14.9 % |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets - Summary of Goodwill (Detail) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016USD ($) | ||
Goodwill [Roll Forward] | ||
As of October 31, 2015 | $ 2,471,241 | [1] |
Additions | 8,904 | |
Adjustments | 134 | [2] |
Effect of foreign currency translation | (7,435) | |
As of January 31, 2016 | $ 2,472,844 | |
[1] | Derived from audited financial statements. | |
[2] | Adjustments relate to changes in estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was finalized during the reporting period. |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Assets | $ 1,042,899 | $ 1,030,594 | |
Accumulated Amortization | 705,519 | 666,935 | |
Net Assets | 337,380 | 363,659 | [1] |
Core/developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Assets | 595,256 | 584,293 | |
Accumulated Amortization | 397,645 | 375,395 | |
Net Assets | 197,611 | 208,898 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Assets | 232,001 | 231,908 | |
Accumulated Amortization | 121,388 | 115,170 | |
Net Assets | 110,613 | 116,738 | |
Contract rights intangible | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Assets | 165,952 | 165,623 | |
Accumulated Amortization | 150,172 | 141,763 | |
Net Assets | 15,780 | 23,860 | |
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 | 20,729 | 20,729 | |
Accumulated Amortization | 11,457 | 10,665 | |
Net Assets | 9,272 | 10,064 | |
Capitalized software development costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Assets | 26,431 | 25,511 | |
Accumulated Amortization | 22,327 | 21,412 | |
Net Assets | $ 4,104 | $ 4,099 | |
[1] | Derived from audited financial statements. |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||
Amortization expense of intangible assets | $ 38,376 | $ 33,214 | |
Core/developed technology | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||
Amortization expense of intangible assets | 22,256 | 18,009 | |
Customer relationships | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||
Amortization expense of intangible assets | 6,193 | 5,748 | |
Contract rights intangible | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||
Amortization expense of intangible assets | 8,221 | 7,852 | |
Trademarks and trade names | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||
Amortization expense of intangible assets | 791 | 699 | |
Capitalized software development costs | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||
Amortization expense of intangible assets | [1] | $ 915 | $ 906 |
[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 Asset38
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) $ in Thousands | Jan. 31, 2016USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2016 | $ 91,536 |
2,017 | 90,821 |
2,018 | 65,607 |
2,019 | 42,487 |
2,020 | 28,506 |
2021 and thereafter | 18,423 |
Total | $ 337,380 |
Financial Assets and Liabilit39
Financial Assets and Liabilities - Additional Information (Details) | 3 Months Ended |
Jan. 31, 2016 | |
Financial Assets and Liabilities [Line Items] | |
Shipments period using hedges (in months) | 1 month |
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 |
Non-Designated Hedging Instrument | |
Financial Assets and Liabilities [Line Items] | |
Forward contracts terms (in months) | 1 month |
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 |
Financial Assets and Liabilit40
Financial Assets and Liabilities - Short-term investments (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 | |
Cash equivalents | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | $ 207,497 | $ 239,473 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses less than 12 months | 0 | (1) | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 207,497 | 239,472 |
Cash equivalents | Money market funds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 199,561 | 233,839 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses less than 12 months | 0 | 0 | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 199,561 | 233,839 |
Cash equivalents | Commercial paper | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 1,199 | 1,834 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses less than 12 months | 0 | 0 | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 1,199 | 1,834 |
Cash equivalents | U.S. government agency securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 4,337 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses less than 12 months | 0 | ||
Gross unrealized losses 12 months or longer | 0 | ||
Estimated fair value | [1] | 4,337 | |
Cash equivalents | Certificates of deposit | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 2,400 | 3,500 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses less than 12 months | 0 | 0 | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 2,400 | 3,500 |
Cash equivalents | Asset-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 300 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses less than 12 months | (1) | ||
Gross unrealized losses 12 months or longer | 0 | ||
Estimated fair value | [1] | 299 | |
Short-term investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 123,022 | 128,774 | |
Gross unrealized gains | 20 | 33 | |
Gross unrealized losses less than 12 months | (94) | (60) | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 122,948 | 128,747 |
Short-term investments | Commercial paper | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 11,430 | 12,129 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses less than 12 months | 0 | 0 | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 11,430 | 12,129 |
Short-term investments | U.S. government agency securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 13,718 | 12,615 | |
Gross unrealized gains | 6 | 3 | |
Gross unrealized losses less than 12 months | (6) | (4) | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 13,718 | 12,614 |
Short-term investments | Municipal bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 1,402 | 1,403 | |
Gross unrealized gains | 1 | 1 | |
Gross unrealized losses less than 12 months | 0 | (1) | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 1,403 | 1,403 |
Short-term investments | Certificates of deposit | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 8,297 | 9,800 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses less than 12 months | 0 | 0 | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 8,297 | 9,800 |
Short-term investments | Corporate debt securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 65,160 | 67,201 | |
Gross unrealized gains | 8 | 27 | |
Gross unrealized losses less than 12 months | (61) | (40) | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 65,107 | 67,188 |
Short-term investments | Asset-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 22,009 | 24,619 | |
Gross unrealized gains | 5 | 2 | |
Gross unrealized losses less than 12 months | (25) | (13) | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | 21,989 | 24,608 |
Short-term investments | Non-U.S. government agency securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, cost | 1,006 | 1,007 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses less than 12 months | (2) | (2) | |
Gross unrealized losses 12 months or longer | 0 | 0 | |
Estimated fair value | [1] | $ 1,004 | $ 1,005 |
[1] | See Note 5. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. |
Financial Assets and Liabilit41
Financial Assets and Liabilities - Investments Maturity Table (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Amortized Cost | |
Due in 1 year or less | $ 78,384 |
Due in 2-5 years | 42,914 |
Due in 6-10 years | 1,724 |
Total | 123,022 |
Fair Value | |
Due in 1 year or less | 78,349 |
Due in 2-5 years | 42,871 |
Due in 6-10 years | 1,728 |
Total | $ 122,948 |
Financial Assets and Liabilit42
Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Financial Assets And Liabilities [Abstract] | ||
Gain (loss) recorded in other income (expense), net | $ (3,763) | $ (2,758) |
Financial Assets and Liabilit43
Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 |
Financial Assets And Liabilities [Abstract] | ||
Total gross notional amount | $ 736,676 | $ 781,752 |
Net fair value | $ (16,412) | $ (3,819) |
Financial Assets and Liabilit44
Financial Assets and Liabilities - Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 |
Designated As Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | $ 2,042 | $ 6,461 |
Designated As Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | 18,031 | 10,141 |
Non-Designated Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | 1 | 1 |
Non-Designated Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | $ 424 | $ 140 |
Financial Assets and Liabilit45
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 ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Financial Assets and Liabilities [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | $ (12,759) | $ (12,829) |
Amount of gain (loss) reclassified from OCI (effective portion) | (3,716) | (1,055) |
Foreign Exchange Contracts | Revenues | ||
Financial Assets and Liabilities [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | (1,491) | 2,966 |
Amount of gain (loss) reclassified from OCI (effective portion) | 212 | 2,381 |
Foreign Exchange Contracts | Operating Expenses | ||
Financial Assets and Liabilities [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | (11,268) | (15,795) |
Amount of gain (loss) reclassified from OCI (effective portion) | $ (3,928) | $ (3,436) |
Financial Assets and Liabilit46
Financial Assets and Liabilities - Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) (Detail) - Foreign Exchange Contracts - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | ||
Financial Assets and Liabilities [Line Items] | |||
Amount of gain (loss) recognized in income statement on derivatives (ineffective portion) | [1] | $ 254 | $ 740 |
Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing) | [2] | $ 1,402 | $ 1,072 |
[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 an
Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 481,889 | $ 533,143 |
Total liabilities | 167,856 | 168,743 |
Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 2,043 | 6,462 |
Accounts payable and accrued liabilities | 18,455 | 10,281 |
Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 149,401 | 158,462 |
Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 149,401 | 158,462 |
Money market funds | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 199,561 | 233,839 |
Commercial paper | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,199 | 1,834 |
Commercial paper | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 11,430 | 12,129 |
Certificates of deposit | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,400 | 3,500 |
Certificates of deposit | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 8,297 | 9,800 |
U.S. government agency securities | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 4,337 | |
U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 13,718 | 12,614 |
Municipal bonds | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,403 | 1,403 |
Corporate debt securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 65,107 | 67,188 |
Asset-backed securities | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 299 | |
Asset-backed securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 21,989 | 24,608 |
Non-U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,004 | 1,005 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 348,962 | 392,301 |
Total liabilities | 149,401 | 158,462 |
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 liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 149,401 | 158,462 |
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 | 149,401 | 158,462 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 199,561 | 233,839 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agency securities | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 132,927 | 140,842 |
Total liabilities | 18,455 | 10,281 |
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 | 2,043 | 6,462 |
Accounts payable and accrued liabilities | 18,455 | 10,281 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 0 | 0 |
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 Other Observable Inputs (Level 2) | Money market funds | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial paper | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,199 | 1,834 |
Significant Other Observable Inputs (Level 2) | Commercial paper | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 11,430 | 12,129 |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,400 | 3,500 |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 8,297 | 9,800 |
Significant Other Observable Inputs (Level 2) | U.S. government agency securities | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 4,337 | |
Significant Other Observable Inputs (Level 2) | U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 13,718 | 12,614 |
Significant Other Observable Inputs (Level 2) | Municipal bonds | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,403 | 1,403 |
Significant Other Observable Inputs (Level 2) | Corporate debt securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 65,107 | 67,188 |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 299 | |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 21,989 | 24,608 |
Significant Other Observable Inputs (Level 2) | Non-U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,004 | 1,005 |
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 liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term 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 |
Significant Unobservable Inputs (Level 3) | Money market funds | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial paper | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial paper | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Certificates of deposit | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Certificates of deposit | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. government agency securities | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Significant Unobservable Inputs (Level 3) | U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal bonds | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate debt securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Asset-backed securities | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Significant Unobservable Inputs (Level 3) | Asset-backed securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Non-U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | $ 0 | $ 0 |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
Fair Value Measures [Line Items] | |||
Other-than-temporary impairment | $ 0 | $ 0 | |
Non-marketable equity securities | 10.2 | $ 10.3 | |
Cost Method Investments | |||
Fair Value Measures [Line Items] | |||
Non-marketable equity securities | 6.6 | 6.6 | |
Equity Method Investments | |||
Fair Value Measures [Line Items] | |||
Non-marketable equity securities | $ 3.6 | $ 3.7 |
Liabilities and Restructuring49
Liabilities and Restructuring Charges - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 | |
Payables and Accruals [Abstract] | |||
Payroll and related benefits | $ 171,906 | $ 315,078 | |
Other accrued liabilities | 62,806 | 60,545 | |
Accounts payable | 20,160 | 9,919 | |
Total | $ 254,872 | $ 385,542 | [1] |
[1] | Derived from audited financial statements. |
Liabilities and Restructuring50
Liabilities and Restructuring Charges - Components of Other Long Term Liabilities (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |||
Deferred compensation liability | $ 149,401 | $ 158,462 | |
Other long-term liabilities | 43,305 | 43,559 | |
Total | $ 192,706 | $ 202,021 | [1] |
[1] | Derived from audited financial statements. |
Liabilities and Restructuring51
Liabilities and Restructuring Charges - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
Liabilities and Restructuring Charges [Abstract] | |||
Restructuring charges | $ 2,093 | $ 15,336 | $ 15,100 |
Employee related restructuring liabilities | $ 0 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - Unsecured Debt - The Credit Agreement [Member] - USD ($) | May. 19, 2015 | Feb. 17, 2012 | Jan. 31, 2016 | Oct. 31, 2015 |
Debt Instrument [Line Items] | ||||
Senior unsecured revolving credit facility entered date | Feb. 17, 2012 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 500,000,000 | $ 350,000,000 | ||
Maturity date | May 19, 2020 | Oct. 14, 2016 | ||
Additional borrowings from credit facility | $ 150,000,000 | |||
Line of Credit, Current | $ 190,000,000 | $ 160,000,000 | ||
Revolving Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fees percentage | 0.125% | |||
Revolving Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fees percentage | 0.20% | |||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Borrowings, interest rate | 1.00% | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
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 in October 2016. | |||
Debt instrument quarterly principal payment | $ 7,500,000 | |||
Total Outstanding senior unsecured term loan facility | $ 37,500,000 | $ 45,000,000 | ||
Term Loan | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Borrowings, interest rate | 1.125% |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative currency translation adjustments | $ (104,963) | $ (90,508) | |
Unrealized gain (loss) on derivative instruments, net of taxes | (23,757) | (14,839) | |
Unrealized gain (loss) on available-for-sale securities, net of taxes | (75) | (28) | |
Total accumulated other comprehensive income (loss) | $ (128,795) | $ (105,375) | [1] |
[1] | Derived from audited financial statements. |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Income (Loss) - Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) - Reclassification out of accumulated other comprehensive income (loss) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications into net income | $ (3,719) | $ (1,043) |
Revenues | Gain (loss) on cash flow hedges, net of taxes | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications into net income | 212 | 2,381 |
Operating Expenses | Gain (loss) on cash flow hedges, net of taxes | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications into net income | (3,928) | (3,436) |
Other Income (Expense) | Gain (loss) on available-for-sale securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications into net income | $ (3) | $ 12 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | Dec. 09, 2015 | Aug. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Apr. 30, 2016 | Jan. 31, 2016 | Sep. 01, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||
Remaining amount available for further repurchases | $ 300,000,000 | $ 300,000,000 | |||||
Shares repurchased (in shares) | 3,849 | 3,290 | |||||
Accelerated Share Repurchase Program August 2015 [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 100,000,000 | ||||||
Prepayment amount | 100,000,000 | ||||||
Accelerated Share Repurchase, Initial Share Delivery, Amount | $ 80,000,000 | ||||||
Stock Repurchase Program, Prepayment During Prior Period, Derivative Settlement | $ 20,000,000 | ||||||
Average purchase price of shares purchased under agreement | $ 48.06 | ||||||
Shares repurchased (in shares) | 2,100 | ||||||
Accelerated Share Repurchase Program December 2015 [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 200,000,000 | ||||||
Prepayment amount | 200,000,000 | ||||||
Accelerated Share Repurchase, Initial Share Delivery, Amount | $ 160,000,000 | ||||||
Average purchase price of shares purchased under agreement | $ 46.08 | ||||||
Scenario, Forecast [Member] | Accelerated Share Repurchase Program December 2015 [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Accelerated Share Repurchases, Remaining Agreement Amount | $ 40,000,000 |
Stock Repurchase Program - Stoc
Stock Repurchase Program - Stock Repurchase Activities (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | ||
Stock Repurchase Program | |||
Shares repurchased (in shares) | 3,849 | 3,290 | |
Total cost of the repurchased shares | $ 180,000 | [1] | $ 144,000 |
Reissuance of treasury stock (in shares) | 200 | 782 | |
[1] | The first quarter of fiscal 2016 includes the settlement of the $20.0 million equity forward contract related to the above-referenced August 2015 ASR and does not include the $40.0 million equity forward contract related to the above-referenced December 2015 ASRs. |
Stock Compensation Expense (Det
Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | $ 23,013 | $ 20,581 |
Income tax benefit | (5,153) | (4,699) |
Stock compensation expense after taxes | 17,860 | 15,882 |
Cost of license | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | 2,596 | 2,118 |
Cost of maintenance and service | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | 579 | 542 |
Research and development expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | 11,585 | 10,200 |
Sales and marketing expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | 4,701 | 4,247 |
General and administrative expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock compensation expense before taxes | $ 3,552 | $ 3,474 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) $ in Millions | 3 Months Ended |
Jan. 31, 2016USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unamortized share-based compensation expense | $ 157.3 |
Weighted-average period of total compensation costs to be recognized in years | 2 years 7 months 6 days |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Intrinsic Value of Equity Awards Exercised (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Stock Compensation [Abstract] | ||
Intrinsic value of awards exercised | $ 1,274 | $ 11,517 |
Net Income per Share - Reconcil
Net Income per Share - Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | ||
Earnings Per Share [Abstract] | |||
Net income | $ 60,035 | $ 65,189 | |
Weighted-average common shares for basic net income per share (shares) | 152,968 | 154,458 | |
Dilutive effect of potential common shares from equity-based compensation (shares) | 2,315 | 2,748 | |
Weighted-average common shares for diluted net income per share (shares) | 155,283 | 157,206 | |
Basic (in USD per share) | $ 0.39 | $ 0.42 | |
Diluted (in USD per share) | $ 0.39 | $ 0.41 | |
Anti-dilutive employee stock-based awards excluded (shares) | [1] | 2,441 | 2,440 |
[1] | These employee stock-based awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future. |
Segment Disclosure - Additional
Segment Disclosure - Additional information (Detail) | 3 Months Ended | |
Jan. 31, 2016SegmentCustomer | Jan. 31, 2015SegmentCustomer | |
Segment Reporting Information [Line Items] | ||
Number of reportable operating segment | Segment | 1 | 1 |
Number of major customers | Customer | 1 | 1 |
Customer concentration risk | Revenues | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenues contributed by major customers | 12.20% | 11.30% |
Segment Disclosure - Revenues R
Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 568,604 | $ 542,043 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 274,930 | 277,587 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 71,935 | 71,883 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 53,246 | 60,852 |
Asia-Pacific and Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 168,493 | $ 131,721 |
Other Income (Expense), net - C
Other Income (Expense), net - Components of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Other Income (Expense) | ||
Interest income | $ 580 | $ 1,148 |
Interest expense | (673) | (653) |
Gain (loss) on assets related to executive deferred compensation plan | (9,394) | (697) |
Foreign currency exchange gain (loss) | 580 | 3,694 |
Other, net | 2,139 | 1,624 |
Total | $ (6,768) | $ 5,116 |
Taxes - Provision for Income Ta
Taxes - Provision for Income Taxes and Effective Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 64,342 | $ 76,615 |
Provision (benefit) for income taxes | $ 4,307 | $ 11,426 |
Effective tax rate | 6.70% | 14.90% |
Taxes - Additional Information
Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | ||
Taxes [Line Items] | ||||
Statutory federal income tax rate | 35.00% | |||
Gross unrecognized tax benefits | $ 116,700 | |||
Unrecognized tax benefits that would affect effective tax rate | 113,900 | |||
Long-term deferred income taxes | 280,009 | $ 273,909 | [1] | |
Fiscal Year 2012 | Taiwan Taxing Authority | ||||
Taxes [Line Items] | ||||
Unrecognized tax benefits decrease resulting from settlement | $ 1,100 | |||
Fiscal year 2011, 2010, and 2009 | California Franchise Tax Board | ||||
Taxes [Line Items] | ||||
Reduction in deferred tax asset due to tax settlement | 4,900 | |||
Unrecognized tax benefits decrease resulting from settlement | 10,300 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 5,400 | |||
Minimum | ||||
Taxes [Line Items] | ||||
Estimated potential decrease in underlying unrecognized tax benefits | 0 | |||
Maximum | ||||
Taxes [Line Items] | ||||
Estimated potential decrease in underlying unrecognized tax benefits | $ 24,000 | |||
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||||
Taxes [Line Items] | ||||
Deferred income taxes, current | (95,000) | |||
Long-term deferred income taxes | $ 95,000 | |||
[1] | Derived from audited financial statements. |