Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2017 | Aug. 15, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | 150,247,663 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,154,986 | $ 976,620 |
Short-term investments | 147,508 | 140,695 |
Total cash, cash equivalents and short-term investments | 1,302,494 | 1,117,315 |
Accounts receivable, net | 411,262 | 438,873 |
Income taxes receivable and prepaid taxes | 55,750 | 56,091 |
Prepaid and other current assets | 125,126 | 104,659 |
Total current assets | 1,894,632 | 1,716,938 |
Property and equipment, net | 262,025 | 257,035 |
Goodwill | 2,660,680 | 2,518,245 |
Intangible assets, net | 248,335 | 266,661 |
Long-term prepaid taxes | 15,706 | 13,991 |
Deferred income taxes | 382,495 | 281,926 |
Other long-term assets | 215,066 | 185,569 |
Total assets | 5,678,939 | 5,240,365 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 403,302 | 401,451 |
Accrued income taxes | 16,270 | 22,693 |
Deferred revenue | 1,046,801 | 1,085,802 |
Short-term debt | 298,025 | 205,000 |
Total current liabilities | 1,764,398 | 1,714,946 |
Long-term accrued income taxes | 23,545 | 39,562 |
Long-term deferred revenue | 83,001 | 79,856 |
Long-term debt | 137,813 | 0 |
Other long-term liabilities | 247,014 | 210,855 |
Total liabilities | 2,255,771 | 2,045,219 |
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; 150,238 and 151,454 shares outstanding, respectively | 1,503 | 1,515 |
Capital in excess of par value | 1,631,200 | 1,644,675 |
Retained earnings | 2,277,499 | 1,947,585 |
Treasury stock, at cost: 7,024 and 5,811 shares, respectively | (419,370) | (294,052) |
Accumulated other comprehensive income (loss) | (67,664) | (104,577) |
Total stockholders’ equity | 3,423,168 | 3,195,146 |
Total liabilities and stockholders’ equity | $ 5,678,939 | $ 5,240,365 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2017 | Oct. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common Stock, shares outstanding (in shares) | 150,238,000 | 151,454,000 |
Treasury stock, shares (in shares) | 7,024,000 | 5,811,000 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenue: | ||||
Time-based products | $ 503,530 | $ 479,285 | $ 1,493,991 | $ 1,427,740 |
Upfront products | 100,251 | 66,885 | 263,310 | 168,485 |
Maintenance and service | 91,600 | 69,034 | 270,935 | 192,588 |
Total revenue | 695,381 | 615,204 | 2,028,236 | 1,788,813 |
Cost of revenue: | ||||
Products | 107,104 | 92,042 | 304,982 | 253,879 |
Maintenance and service | 43,828 | 23,172 | 122,618 | 67,328 |
Amortization of intangible assets | 18,614 | 24,463 | 59,720 | 79,544 |
Total cost of revenue | 169,546 | 139,677 | 487,320 | 400,751 |
Gross margin | 525,835 | 475,527 | 1,540,916 | 1,388,062 |
Operating expenses: | ||||
Research and development | 228,663 | 221,874 | 664,326 | 634,751 |
Sales and marketing | 131,520 | 127,328 | 395,242 | 370,874 |
General and administrative | 46,350 | 42,548 | 170,654 | 123,798 |
Amortization of intangible assets | 7,906 | 7,055 | 23,806 | 21,014 |
Restructuring charges | 6,026 | 0 | 31,038 | 2,987 |
Total operating expenses | 420,465 | 398,805 | 1,285,066 | 1,153,424 |
Operating income | 105,370 | 76,722 | 255,850 | 234,638 |
Other income (expense), net | 7,421 | 8,509 | 27,322 | 12,158 |
Income before income taxes | 112,791 | 85,231 | 283,172 | 246,796 |
Provision (benefit) for income taxes | (3,960) | 20,513 | 26,527 | 52,667 |
Net income | $ 116,751 | $ 64,718 | $ 256,645 | $ 194,129 |
Net income per share: | ||||
Basic (in USD per share) | $ 0.78 | $ 0.43 | $ 1.71 | $ 1.28 |
Diluted (in USD per share) | $ 0.75 | $ 0.42 | $ 1.66 | $ 1.26 |
Shares used in computing per share amounts: | ||||
Basic (shares) | 150,214 | 151,169 | 150,460 | 152,129 |
Diluted (shares) | 154,683 | 153,890 | 154,787 | 154,629 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 116,751 | $ 64,718 | $ 256,645 | $ 194,129 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | 3,026 | (6) | 12,327 | 2,927 |
Changes in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented | 20 | 33 | (34) | 92 |
Cash flow hedges: | ||||
Deferred gains (losses), net of tax of $(1,971) and $(4,917), for the three and nine months ended July 31, 2017, respectively, and of $1,828 and $3,112 for each of the same periods in fiscal 2016, respectively | 8,517 | (11,693) | 19,005 | (21,286) |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $232 and $(933), for the three and nine months ended July 31, 2017, respectively, and of $(1,469) and $(4,640), for each of the same periods in fiscal 2016, respectively | 22 | 5,174 | 5,615 | 14,087 |
Other comprehensive income (loss), net of tax effects | 11,585 | (6,492) | 36,913 | (4,180) |
Comprehensive income | $ 128,336 | $ 58,226 | $ 293,558 | $ 189,949 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Deferred gains (losses), tax | $ (1,971) | $ 1,828 | $ (4,917) | $ 3,112 |
Reclassification adjustment on deferred (gains) losses included in net income, tax | 232 | (1,469) | (933) | (4,640) |
Changes in unrealized gains (losses) on available-for-sale securities, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Cash flow from operating activities: | ||
Net income | $ 256,645 | $ 194,129 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and depreciation | 144,112 | 157,814 |
Stock compensation | 79,697 | 72,043 |
Allowance for doubtful accounts | 1,289 | 650 |
(Gain) loss on sale of investments | (1) | (15) |
Write-down of long-term investments | 1,300 | 0 |
Deferred income taxes | (10,960) | 2,747 |
Net changes in operating assets and liabilities, net of acquired assets and liabilities: | ||
Accounts receivable | 42,413 | 77,532 |
Prepaid and other current assets | (13,636) | (22,941) |
Other long-term assets | (33,416) | (8,118) |
Accounts payable and accrued liabilities | 36,129 | (41,749) |
Income taxes | (19,169) | (3,314) |
Deferred revenue | (34,692) | 10,195 |
Net cash provided by operating activities | 449,711 | 438,973 |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of short-term investments | 130,529 | 111,078 |
Purchases of short-term investments | (137,486) | (126,216) |
Proceeds from sales of long-term investments | 839 | 1,785 |
Purchases of long-term investments | 0 | (1,002) |
Purchases of property and equipment | (50,227) | (48,249) |
Cash paid for acquisitions and intangible assets, net of cash acquired | (187,624) | (60,056) |
Capitalization of software development costs | (3,130) | (2,959) |
Other | 2,100 | 0 |
Net cash used in investing activities | (244,999) | (125,619) |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 270,000 | 185,000 |
Repayment of debt | (38,750) | (112,500) |
Issuances of common stock | 78,718 | 69,884 |
Payments for taxes related to net share settlement of equity awards | (35,376) | (25,718) |
Purchase of equity forward contract | 0 | (25,000) |
Purchases of treasury stock | (300,000) | (300,000) |
Other | (482) | 2,713 |
Net cash provided used in financing activities | (25,890) | (205,621) |
Effect of exchange rate changes on cash and cash equivalents | (456) | 2,396 |
Net change in cash and cash equivalents | 178,366 | 110,129 |
Cash and cash equivalents, beginning of year | 976,620 | 836,188 |
Cash and cash equivalents, end of period | $ 1,154,986 | $ 946,317 |
Description of Business
Description of Business | 9 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Synopsys, Inc. (Synopsys or the Company) provides software, intellectual property and services used by designers across the entire silicon to software spectrum, from engineers creating advanced semiconductors to software developers ensuring the quality and security of their applications. The Company is a global leader in supplying the electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs), 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 design 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, the Company provides technical services and support to help its customers develop advanced chips and electronic systems. The Company is also a leading provider of software tools and services that improve the quality and security of software code in a wide variety of industries, including electronics, financial services, energy, industrials, and automotive. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 31, 2017 | |
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 (U.S. 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, 2016 as filed with the SEC on December 12, 2016. Use of Estimates. To prepare financial statements in conformity with U.S. 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 2017 and 2016 are both 52-week years. The third fiscal quarters of fiscal 2017 and 2016 ended on July 29, 2017 and July 30, 2016, respectively, and the prior fiscal year ended on October 29, 2016. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. |
Business Combinations
Business Combinations | 9 Months Ended |
Jul. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations During the nine months ended July 31, 2017 , the Company completed acquisitions with an aggregate total purchase consideration of $188.1 million , net of cash acquired. The Company assumed unvested stock options with a fair value of $4.4 million using the Black-Scholes option-pricing model and will expense the options over their remaining service periods on a straight-line basis. The Company does not consider these acquisitions to be material, individually or in the aggregate, to the Company’s consolidated financial statements. The preliminary purchase price allocations resulted in $132.7 million of goodwill, of which $11.9 million is deductible for tax purposes, and $64.9 million of acquired identifiable intangible assets valued using the income or cost methods. The intangible assets are being amortized over their respective useful lives ranging from one to seven years. The acquisition-related costs for these acquisitions totaling $4.1 million were expensed as incurred in the unaudited condensed consolidated statement of operations. The Company funded the acquisitions with existing cash and debt. The preliminary fair value estimates for the assets acquired and liabilities assumed for all fiscal 2017 acquisitions are not yet finalized and may change as additional information becomes available during the respective measurement periods. The primary areas of those preliminary estimates relate to certain tangible assets and liabilities, identifiable intangible assets, and income taxes. Additional information, which existed as of the acquisition date but is yet unknown to the Company, may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Changes to the provisional amounts recorded as assets or liabilities during the measurement period may result in an adjustment to goodwill. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jul. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill as of July 31, 2017 and October 31, 2016 consisted of the following: (in thousands) As of October 31, 2016 $ 2,518,245 Additions 132,694 Effect of foreign currency translation 9,741 As of July 31, 2017 $ 2,660,680 Intangible assets as of July 31, 2017 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 622,979 $ 511,064 $ 111,915 Customer relationships 276,704 160,188 116,516 Contract rights intangible 173,455 171,420 2,035 Trademarks and trade names 25,129 16,556 8,573 In-process research and development (IPR&D)(1) 4,600 — 4,600 Capitalized software development costs 32,772 28,076 4,696 Total $ 1,135,639 $ 887,304 $ 248,335 (1) IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. Intangible assets as of October 31, 2016 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 610,812 $ 460,722 $ 150,090 Customer relationships 235,997 139,932 96,065 Contract rights intangible 171,248 162,183 9,065 Trademarks and trade names 20,729 13,821 6,908 Capitalized software development costs 29,642 25,109 4,533 Total $ 1,068,428 $ 801,767 $ 266,661 Amortization expense related to intangible assets consisted of the following: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Core/developed technology $ 15,575 $ 21,673 $ 50,330 $ 65,536 Customer relationships 6,834 6,333 20,569 18,820 Contract rights intangible 3,215 2,720 9,893 13,827 Trademarks and trade names 896 792 2,734 2,374 Capitalized software development costs(2) 1,002 927 2,968 2,764 Total $ 27,522 $ 32,445 $ 86,494 $ 103,321 (2) Amortization of capitalized software development costs is included in cost of products revenue in the unaudited condensed consolidated statements of operations. The following table presents the estimated future amortization of the existing intangible assets: Fiscal Year (in thousands) Remainder of fiscal 2017 $ 24,465 2018 82,650 2019 57,337 2020 39,478 2021 21,338 2022 and thereafter 18,467 IPR&D(3) 4,600 Total $ 248,335 (3) IPR&D assets are amortized over their useful lives upon completion or written off upon abandonment. |
Financial Assets and Liabilitie
Financial Assets and Liabilities | 9 Months Ended |
Jul. 31, 2017 | |
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 July 31, 2017 , the balances of our available-for-sale securities are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 510,086 $ — $ — $ — $ 510,086 Commercial paper 2,274 — — — 2,274 Certificates of deposit 1,600 — — — 1,600 Total: $ 513,960 $ — $ — $ — $ 513,960 Short-term investments: U.S. government agency securities $ 17,982 $ 2 $ (27 ) $ (4 ) $ 17,953 Certificates of deposit 22,017 — — — 22,017 Commercial paper 23,507 — — — 23,507 Corporate debt securities 61,337 47 (23 ) — 61,361 Asset-backed securities 21,180 4 (15 ) — 21,169 Other 1,499 2 — — 1,501 Total: $ 147,522 $ 55 $ (65 ) $ (4 ) $ 147,508 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. As of October 31, 2016 , the balances of our available-for-sale securities are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 499,274 $ — $ — $ — $ 499,274 Commercial paper 1,498 — — — 1,498 Certificates of deposit 4,200 — — — 4,200 Total: $ 504,972 $ — $ — $ — $ 504,972 Short-term investments: U.S. government agency securities $ 13,607 $ 4 $ (8 ) $ — $ 13,603 Certificates of deposit 12,849 — — — 12,849 Commercial paper 25,430 1 — — 25,431 Corporate debt securities 58,753 43 (18 ) — 58,778 Asset-backed securities 22,146 12 (12 ) — 22,146 Non-U.S. government agency securities 3,403 — (3 ) — 3,400 Other 4,488 — — — 4,488 Total: $ 140,676 $ 60 $ (41 ) $ — $ 140,695 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. As of July 31, 2017 , the stated maturities of the Company's available-for-sale securities are: Amortized Cost Fair Value (in thousands) Due in 1 year or less $ 107,164 $ 107,133 Due in 2-5 years 40,358 40,375 Total $ 147,522 $ 147,508 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 6. Fair Value Measures. Derivatives. The Company recognizes derivative instruments as either assets or liabilities in the unaudited condensed consolidated financial statements at fair value and provides qualitative and quantitative disclosures about such derivatives. The Company operates internationally and is exposed to potentially adverse movements in foreign currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately one month , (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. The duration of forward contracts ranges from approximately one month to 22 months , the majority of which are short-term. The Company does not use foreign currency forward contracts for speculative or trading purposes. The Company enters into foreign exchange forward contracts with high credit quality financial institutions that are rated ‘A’ or above and to date has not experienced nonperformance by counterparties. Further, the Company anticipates continued performance by all counterparties to such agreements. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the unaudited condensed consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. Cash Flow Hedging Activities Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 22 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to the Company’s foreign currency risk, which can be up to three years . To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on the hedged transactions. The effective portion of gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (OCI) in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. The Company expects a majority of the hedge balance in OCI to be reclassified to the statements of operations within the next 12 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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Gain (loss) recorded in other income (expense), net $ 515 $ (2,193 ) $ 1,838 $ (4,042 ) The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: As of July 31, 2017 As of October 31, 2016 (in thousands) Total gross notional amount $ 803,986 $ 758,246 Net fair value $ 15,464 $ (15,358 ) 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 July 31, 2017 Other current assets $ 17,017 $ 306 Accrued liabilities $ 1,741 $ 118 As of October 31, 2016 Other current assets $ 4,625 $ 27 Accrued liabilities $ 19,910 $ 101 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 $ (176 ) Revenue $ (198 ) Foreign exchange contracts Operating expenses 8,747 Operating expenses 176 Total $ 8,571 $ (22 ) Three months ended Foreign exchange contracts Revenue $ (5,443 ) Revenue $ (2,900 ) Foreign exchange contracts Operating expenses (6,317 ) Operating expenses (2,274 ) Total $ (11,760 ) $ (5,174 ) Nine months ended Foreign exchange contracts Revenue $ 6,824 Revenue $ (2,379 ) Foreign exchange contracts Operating expenses 12,357 Operating expenses (3,236 ) Total $ 19,181 $ (5,615 ) Nine months ended Foreign exchange contracts Revenue $ (13,117 ) Revenue $ (4,117 ) Foreign exchange contracts Operating expenses (8,262 ) Operating expenses (9,970 ) Total $ (21,379 ) $ (14,087 ) 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 statement of operations on derivatives (ineffective portion)(1) Amount of gain (loss) recognized in statement of operations on derivatives (excluded from effectiveness testing)(2) (in thousands) For the three months ended July 31, 2017 $ 11 $ 776 For the three months ended July 31, 2016 $ 890 $ 1,827 For the nine months ended July 31, 2017 $ 175 $ 3,393 For the nine months ended July 31, 2016 $ 1,345 $ 5,368 (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 | 9 Months Ended |
Jul. 31, 2017 | |
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 8. 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 July 31, 2017 : 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 $ 510,086 $ 510,086 $ — $ — Commercial paper 2,274 — 2,274 — Certificates of deposit 1,600 — 1,600 — Short-term investments: U.S. government agency securities 17,953 — 17,953 — Certificates of deposit 22,017 — 22,017 — Commercial paper 23,507 — 23,507 — Corporate debt securities 61,361 — 61,361 — Asset-backed securities 21,169 — 21,169 — Other 1,501 — 1,501 — Prepaid and other current assets: Foreign currency derivative contracts 17,323 — 17,323 — Other long-term assets: Deferred compensation plan assets 191,013 191,013 — — Total assets $ 869,804 $ 701,099 $ 168,705 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 1,859 $ — $ 1,859 $ — Other long-term liabilities: Deferred compensation plan liabilities 191,013 191,013 — — Total liabilities $ 192,872 $ 191,013 $ 1,859 $ — Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 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 $ 499,274 $ 499,274 $ — $ — Commercial paper 1,498 — 1,498 — Certificates of deposit 4,200 — 4,200 — Short-term investments: U.S. government agency securities 13,603 — 13,603 — Certificates of deposit 12,849 — 12,849 — Commercial paper 25,431 — 25,431 — Corporate debt securities 58,778 — 58,778 — Asset-backed securities 22,146 — 22,146 — Non-U.S. government agency securities 3,400 — 3,400 — Other 4,488 4,488 — — Prepaid and other current assets: Foreign currency derivative contracts 4,652 — 4,652 — Other long-term assets: Deferred compensation plan assets 163,185 163,185 — — Total assets $ 813,504 $ 666,947 $ 146,557 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 20,010 $ — $ 20,010 $ — Other long-term liabilities: Deferred compensation plan liabilities 163,185 163,185 — — Total liabilities $ 183,195 $ 163,185 $ 20,010 $ — 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 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 July 31, 2017 and recorded an $1.3 million of other-than-temporary impairment during the nine months ended July 31, 2017 . The Company did not recognize any impairment during the three and nine months ended July 31, 2016 . The following table presents the non-marketable equity securities that were measured and recorded at fair value within other long-term assets on a non-recurring basis and the loss recorded in other income (expense), net. Balance as of July 31, 2017 Significant Unobservable Inputs (Level 3) Total (losses) during three months ended July 31, 2017 Total (in thousands) Non-marketable equity securities $ — $ — $ — $ (1,300 ) |
Liabilities and Restructuring C
Liabilities and Restructuring Charges | 9 Months Ended |
Jul. 31, 2017 | |
Liabilities and Restructuring Charges [Abstract] | |
Liabilities and Restructuring Charges | Liabilities and Restructuring Charges During the three and nine months ended July 31, 2017 , the Company incurred restructuring charges of approximately $6.0 million and $31.0 million , respectively, for involuntary and voluntary employee termination actions. The restructuring actions were undertaken to structure the Company for future growth, reallocate resources to priority areas, and to a lesser extent, eliminate operational redundancy. During the three and nine months ended July 31, 2017 , the Company made payments of $2.7 million and $21.5 million , respectively. Payments under the 2017 restructuring plans are expected to be completed by the end of the second quarter of fiscal 2018. In fiscal 2016, the Company incurred $9.6 million of restructuring charges for severance and benefits due to involuntary employee termination activities. As of July 31, 2017 , there was no outstanding balance for the 2016 restructuring activities. The following is a summary of restructuring activities during the nine months ended July 31, 2017 : (in thousands) Liability as of October 31, 2016 $ 5,679 Restructuring costs incurred 31,038 Cash payments $ (21,523 ) As of July 31, 2017(1) $ 15,194 (1) Outstanding balance recorded in accounts payable and accrued liabilities as payroll and related benefits. Accounts payable and accrued liabilities consist of: July 31, October 31, (in thousands) Payroll and related benefits $ 297,755 $ 321,430 Other accrued liabilities 85,674 66,276 Accounts payable 19,873 13,745 Total $ 403,302 $ 401,451 Other long-term liabilities consist of: July 31, October 31, (in thousands) Deferred compensation liability $ 191,013 $ 163,185 Other long-term liabilities 56,001 47,670 Total $ 247,014 $ 210,855 |
Credit Facility
Credit Facility | 9 Months Ended |
Jul. 31, 2017 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility On November 28, 2016, the Company entered into an amended and restated credit agreement with several lenders (the Credit Agreement) providing for (i) a $650.0 million senior unsecured revolving credit facility (the Revolver) and (ii) a $150.0 million senior unsecured term loan facility (the Term Loan). The Credit Agreement amended and restated the Company’s previous credit agreement dated May 19, 2015 (the 2015 Agreement), in order to increase the size of the revolving credit facility from $500.0 million to $650.0 million , provide a new $150.0 million senior unsecured term loan facility, and to extend the termination date of the revolving credit facility from May 19, 2020 to November 28, 2021. Subject to obtaining additional commitments from lenders, the principal amount of the loans provided under the Credit Agreement may be increased by the Company by up to an additional $150.0 million . The 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 July 31, 2017 , the Company was in compliance with all financial covenants. During the first quarter of fiscal 2017, the Company received funding of $150.0 million under the Term Loan. Outstanding principal payments under the Term Loan are due as follows: Fiscal year (in thousands) Remainder of fiscal 2017 $ 1,875 2018 10,313 2019 14,062 2020 17,813 2021 27,187 2022 75,000 Total $ 146,250 As of July 31, 2017 , the Company had a $145.8 million outstanding balance, net of debt issuance costs, under the Term Loan, of which $137.8 million is classified as long-term liabilities, and a $290.0 million outstanding balance under the Revolver, all of which are considered short-term liabilities. As of October 31, 2016 , the Company had no outstanding balance under the previous term loan from the 2015 Agreement and a $205.0 million outstanding balance under the previous revolver from the 2015 Agreement, which are considered short-term liabilities. The Company expects its borrowings under the Revolver will fluctuate from quarter to quarter. Borrowings bear interest at a floating rate based on a margin over the Company’s choice of market observable base rates as defined in the Credit Agreement. As of July 31, 2017 , 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 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) | 9 Months Ended |
Jul. 31, 2017 | |
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: July 31, October 31, (in thousands) Cumulative currency translation adjustments $ (72,373 ) $ (84,700 ) Unrealized gain (loss) on derivative instruments, net of taxes 4,724 (19,896 ) Unrealized gain (loss) on available-for-sale securities, net of taxes (15 ) 19 Total accumulated other comprehensive income (loss) $ (67,664 ) $ (104,577 ) The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (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 $ (198 ) $ (2,900 ) $ (2,379 ) $ (4,117 ) Operating expenses 176 (2,274 ) (3,236 ) (9,970 ) Gain (loss) on available-for-sale securities Other income (expense) $ — 5 1 $ 15 Total reclassifications into net income $ (22 ) $ (5,169 ) $ (5,614 ) $ (14,072 ) |
Stock Repurchase Program
Stock Repurchase Program | 9 Months Ended |
Jul. 31, 2017 | |
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 June 15, 2017. The program does not obligate the Company to acquire any particular amount of common stock, and the program may be suspended or terminated at any time by the Company's 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 July 31, 2017 , $500.0 million remained available for further repurchases under the program. In December 2016, the Company entered into an accelerated share repurchase agreement (the December 2016 ASR) to repurchase an aggregate of $100.0 million of the Company’s common stock. Pursuant to the December 2016 ASR, the Company made a prepayment of $100.0 million and received initial share deliveries valued at $80.0 million . The remaining balance of $20.0 million was settled in February 2017. Total shares purchased under the December 2016 ASR were approximately 1.7 million shares, at an average purchase price of $60.53 per share. In February 2017, the Company entered into an accelerated share repurchase agreement (the February 2017 ASR) to repurchase an aggregate of $100.0 million of the Company’s common stock. Pursuant to the February 2017 ASR, the Company made a prepayment of $100.0 million and received initial share deliveries valued at $80.0 million . The remaining balance of $20.0 million was settled in May 2017. Total shares purchased under the February 2017 ASR were approximately 1.4 million shares, at an average purchase price of $72.02 per share. In May 2017, the Company entered into an accelerated share repurchase agreement (the May 2017 ASR) to repurchase an aggregate of $100.0 million of the Company’s common stock. Pursuant to the May 2017 ASR, the Company made a prepayment of $100.0 million and received initial share deliveries valued at $80.0 million . The remaining balance of $20.0 million was settled in July 2017. Total shares purchased under the May 2017 ASR were approximately 1.4 million shares, at an average purchase price of $73.49 per share. Stock repurchase activities are as follow: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Total shares repurchased (1) 1,627 2,525 4,401 6,889 Total cost of the repurchased shares(1) $ 120,000 $ 120,000 $ 300,000 $ 320,000 Reissuance of treasury stock 1,316 1,708 3,188 3,169 (1) The number of shares purchased and average purchase price paid per share includes the 265,894 shares and $20.0 million equity forward contract, respectively, from the February 2017 ASR settled in May 2017. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Jul. 31, 2017 | |
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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Cost of products $ 3,358 $ 2,912 $ 9,170 $ 8,116 Cost of maintenance and service 1,073 650 2,881 1,792 Research and development expense 13,617 13,046 39,069 36,469 Sales and marketing expense 5,494 5,139 15,430 14,581 General and administrative expense 4,759 3,824 13,147 11,085 Stock compensation expense before taxes 28,301 25,571 79,697 72,043 Income tax benefit (8,086 ) (6,781 ) (22,769 ) (19,106 ) Stock compensation expense after taxes $ 20,215 $ 18,790 $ 56,928 $ 52,937 In addition to the tax benefit disclosed above, the Company recorded net excess tax benefits from stock-based compensation in the provision for income taxes of $18.4 million and $29.7 million , respectively, for the three and nine months ended July 31, 2017 . As of July 31, 2017 , there was $223.5 million of unamortized share-based compensation expense relating to options and restricted stock units and awards, 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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Intrinsic value of awards exercised $ 20,688 $ 19,530 $ 49,344 $ 28,028 In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting." The Company elected to early adopt ASU 2016-09 in the first quarter of fiscal 2017. As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are classified as an operating activity in the consolidated statements of cash flows and the Company has elected to apply this provision on a prospective basis. The Company also elected to account for forfeitures as they occur and recorded a one-time adoption expense of $0.4 million to retained earnings. See Note 15. Taxes for additional information on tax impacts. |
Net Income per Share
Net Income per Share | 9 Months Ended |
Jul. 31, 2017 | |
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 Nine Months Ended 2017 2016 2017 2016 (in thousands, except per share amounts) Numerator: Net income $ 116,751 $ 64,718 $ 256,645 $ 194,129 Denominator: Weighted-average common shares for basic net income per share 150,214 151,169 150,460 152,129 Dilutive effect of potential common shares from equity-based compensation 4,469 2,721 4,327 2,500 Weighted-average common shares for diluted net income per share 154,683 153,890 154,787 154,629 Net income per share: Basic $ 0.78 $ 0.43 $ 1.71 $ 1.28 Diluted $ 0.75 $ 0.42 $ 1.66 $ 1.26 Anti-dilutive employee stock-based awards excluded(1) 492 2,270 1,186 1,822 (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 | 9 Months Ended |
Jul. 31, 2017 | |
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 primarily 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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Revenue: United States $ 358,201 $ 316,902 $ 1,028,108 $ 889,220 Europe 80,260 66,946 234,259 211,993 Japan 64,119 63,056 183,023 174,838 Asia-Pacific and Other 192,801 168,300 582,846 512,762 Consolidated $ 695,381 $ 615,204 $ 2,028,236 $ 1,788,813 Geographic revenue data for multi-region, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and the Company’s methodology. For the three and nine months ended July 31, 2017 and 2016 , one customer, including its subsidiaries, through multiple agreements accounted for greater than 10% of the Company's total revenues. |
Other Income (Expense), net
Other Income (Expense), net | 9 Months Ended |
Jul. 31, 2017 | |
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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Interest income $ 2,015 $ 1,031 $ 4,747 $ 2,499 Interest expense (2,320 ) (1,208 ) (5,487 ) (2,729 ) Gain (loss) on assets related to executive deferred compensation plan assets 6,791 6,822 22,334 6,136 Foreign currency exchange gain (loss) 278 (94 ) 2,877 (296 ) Other, net 657 1,958 2,851 6,548 Total $ 7,421 $ 8,509 $ 27,322 $ 12,158 |
Taxes
Taxes | 9 Months Ended |
Jul. 31, 2017 | |
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 effective tax rate takes into account the Company's estimations of annual pre-tax income, the geographic mix of pre-tax income and 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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Income before income taxes $ 112,791 $ 85,231 $ 283,172 $ 246,796 Provision (benefit) for income taxes $ (3,960 ) $ 20,513 $ 26,527 $ 52,667 Effective tax rate (3.5 )% 24.1 % 9.4 % 21.3 % The Company’s effective tax rate for the three and nine months ended July 31, 2017 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, U.S. federal and California research tax credits and excess tax benefits from stock-based compensation, partially offset by state taxes and the tax effect of non-deductible stock-based compensation and the integration of acquired technologies. The integration of acquired technologies represents the income tax effect resulting from the transfer of certain intangible assets among company-controlled entities. The Company's effective tax rate decreased in the three and nine months ended July 31, 2017 , as compared to the same periods in fiscal 2016, primarily due to excess tax benefits from stock-based compensation, partially offset by the permanent reinstatement of the U.S. federal research tax credit in the first quarter of fiscal 2016. 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 fiscal 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 July 27, 2015, the United States Tax Court (Tax Court) issued an opinion ( Altera Corp. et al. v. Commissioner ) regarding the treatment of stock-based compensation expense in intercompany cost-sharing arrangements. The U.S. Treasury has not withdrawn the requirement to include stock-based compensation from its regulations and the IRS has initiated an appeal of the Tax Court's opinion. As the final resolution with respect to historical cost-sharing of stock-based compensation, and the potential favorable benefits to the Company, is unclear, the Company is recording no impact at this time and will continue to monitor developments related to this opinion and the potential impact of those developments on the Company's prior fiscal years. Effective February 1, 2016, the Company amended its cost-sharing arrangement to exclude stock-based compensation expense on a prospective basis and has reflected the corresponding benefits in its effective annual tax rate. The timing of the resolution of income tax examinations is highly uncertain, as are 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 12 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 $15 million . As discussed in Note 11, the Company adopted ASU 2016-09 in the first quarter of fiscal 2017. The Company recorded all income tax effects of share-based awards in its provision for income taxes in the condensed consolidated statement of operations on a prospective basis. Prior to adoption, the Company did not recognize excess tax benefits from stock-based compensation as a charge to capital in excess of par value to the extent that the related tax deduction did not reduce income taxes payable. Upon adoption of ASU 2016-09, the Company recorded a deferred tax asset of $106.5 million for the previously unrecognized excess tax benefits with an offsetting adjustment to retained earnings. Adoption of the new standard resulted in net excess tax benefits in the provision for income taxes of $29.7 million for the nine months ended July 31, 2017 . 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 July 2017, the Hungarian Tax Authority (HTA) issued a final assessment against the Company’s Hungarian subsidiary (Synopsys Hungary) for fiscal years 2011 through 2013. The HTA has disallowed Synopsys Hungary's tax positions taken during these years regarding the timing of the deduction of research expenses and applied withholding taxes on certain payments made to affiliates, resulting in an aggregate tax assessment of approximately $47 million and interest and penalties of over $18 million (at current exchange rates). In addition, if the treatment of research expenses were applied to fiscal years after 2014, Synopsys Hungary could lose approximately $18 million in tax benefit in tax periods subsequent to fiscal 2017 due to the enacted reduction of Hungary’s corporate income tax rate. While the ultimate outcome is not certain, the Company believes there is no merit to the assessment and believes that it will ultimately prevail against the positions taken by the HTA. To that end, on August 2, 2017, Synopsys Hungary filed a claim contesting the final assessment with the Hungarian Administrative Court. If the Company prevails, the assessment of $47 million would be canceled, but the Hungarian statutory accounting treatment could have an indirect adverse impact on certain tax benefits in the year of the cancellation. In the third quarter of fiscal 2017, the Company settled certain transfer pricing issues with the Korean National Tax Service for fiscal years 2012 to 2016. As a result of the settlement, the Company recognized income tax expense of $7.9 million . The Company also reached agreement with the Taiwanese tax authorities on certain tax positions for fiscal year 2014, resulting in an income tax benefit of $10.9 million . In the third quarter of fiscal 2016, the Company reached final settlement with the Taiwan tax authorities for fiscal 2011, with regard to certain transfer pricing issues. As a result of the settlement, the Company paid $0.3 million of tax and recognized $0.7 million in unrecognized tax benefits. In the second quarter of fiscal 2016, the Company agreed to settle certain transfer pricing issues with the Indian tax authorities for fiscal years 2010 to 2015. As a result of the settlement, the Company recognized income tax expense, net of foreign tax credits, of $2.4 million . The Company undergoes tax examinations from time to time and is currently under examination by the tax authorities in certain other jurisdictions. No material assessments have been proposed in these examinations. |
Contingencies
Contingencies | 9 Months Ended |
Jul. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings The Company is subject to routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of its business. The ultimate outcome of any litigation is uncertain and unfavorable outcomes could have a negative impact on the Company’s results of operations and financial condition. The Company reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount is estimable, the Company accrues a liability for the estimated loss. The Company has determined that, except as set forth below, no disclosure of estimated loss is required for a claim against the Company because: (1) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (2) a reasonably possible loss or range of loss cannot be estimated; or (3) such estimate is immaterial. Mentor Patent Litigation The Company is engaged in complex patent litigation with Mentor Graphics Corporation (Mentor) involving several actions in different forums. The Company succeeded to the litigation when it acquired Emulation & Verification Engineering S.A. (EVE) on October 4, 2012. At the time of the acquisition, EVE and EVE-USA, Inc. (collectively, the EVE Parties) had been defendants in three patent infringement lawsuits filed by Mentor. Each lawsuit as well as subsequent lawsuits are further described below. Background As mentioned above, at the time of the acquisition, the EVE Parties had been defendants in three patent infringement lawsuits filed by Mentor. Mentor filed suit against the EVE Parties in federal district court in the District of Oregon on August 16, 2010 alleging that EVE’s ZeBu products infringed Mentor’s United States Patent No. 6,876,962. Mentor filed an additional suit in federal district court in the District of Oregon on August 17, 2012 alleging that EVE’s ZeBu products infringed Mentor’s United States Patent No. 6,947,882. Both cases sought damages and a permanent injunction. On September 27, 2012, the Company and the EVE Parties filed an action for declaratory relief against Mentor in federal district court in the Northern District of California, seeking a determination that Mentor’s United States Patents Nos. 6,009,531, 5,649,176, and 6,240,376, which were the subject of a patent infringement lawsuit filed by Mentor against EVE in 2006 and settled in the same year, are invalid and not infringed by EVE’s products. Mentor asserted patent infringement counterclaims in this action based on the same three patents and sought damages and a permanent injunction. In April 2013, this action was transferred to the federal district court in Oregon and consolidated with the two Mentor lawsuits in that district (the Oregon Action), as further described below. The Oregon Action After transfer of the Company’s declaratory relief action to Oregon and consolidation of that action with Mentor’s 2010 and 2012 lawsuits, the Company asserted patent infringement counterclaims against Mentor based on the Company’s United States Patents Nos. 6,132,109 and 7,069,526, seeking damages and a permanent injunction. After pre-trial summary judgment rulings in favor of both sides, the only patent remaining at issue in the Oregon Action was Mentor's ‘376 patent. The Oregon Action went to trial on the remaining Mentor patent, and a jury reached a verdict on October 10, 2014 finding that certain features of the ZeBu products infringed the ‘376 patent and assessing damages of approximately $36 million . On March 12, 2015, the court entered an injunction prohibiting certain sales activities relating to the features found by the jury to infringe. The Company released a new version of ZeBu software that does not include such features. The Company accrued an immaterial amount as a loss contingency in the quarter ended October 31, 2015. Both parties appealed from the court’s judgment following the jury verdict. The Federal Circuit heard the parties’ respective appeals and issued a decision on March 16, 2017. The panel affirmed the jury verdict and damages award on Mentor’s ‘376 patent and reversed the district court’s dismissal of Mentor’s ‘176, ‘531 and ‘882 patents and the Company’s ‘109 patent. Proceedings on these patents will resume in the federal district court in Oregon, including trial of alleged supplemental damages on and willful infringement of the ‘376 patent. On May 1, 2017, the Company petitioned for rehearing by all judges currently sitting on the Federal Circuit. On May 9, 2017, the Federal Circuit invited Mentor to respond to the petition on or before May 23, 2017. Mentor responded to the petition on May 23, 2017. The Federal Circuit has not yet ruled on the Company's petition. Due to the affirmation of the verdict by the Federal Circuit, the Company has accrued an aggregate amount of $39.0 million as a loss contingency, which is the amount estimated to be the probable loss. The associated charge has been recorded in general and administrative expenses in the income statements for the nine months ended July 31, 2017 . The California Action On December 21, 2012, the Company filed an action for patent infringement against Mentor in federal district court in the Northern District of California, alleging that Mentor’s Veloce products infringe the Company’s United States Patents Nos. 5,748,488, 5,530,841, 5,680,318 and 6,836,420 (the California Action). This case sought damages and a permanent injunction. The court stayed the action as to the ‘420 patent pending the U.S. Patent and Trademark Office's inter partes review of that patent and appeals from that proceeding. On January 20, 2015, the court granted Mentor's motion for summary judgment on the ‘488, ‘841, and ‘318 patents, finding that such patents were invalid. The Company appealed the court's ruling and on October 17, 2016, the Federal Circuit affirmed the district court’s decision. The Company is currently seeking review of the Federal Circuit’s ruling in the U.S. Supreme Court. PTO Proceedings On September 26, 2012, the Company filed two inter partes review requests with the U.S. Patent and Trademark Office (the PTO) challenging the validity of Mentor’s ‘376 and ‘882 patents. The PTO granted review of the ‘376 patent and denied review of the ‘882 patent. On February 19, 2014, the PTO issued its final decision in the review of the ‘376 patent, finding some of the challenged claims invalid and some of the challenged claims valid. On April 22, 2014, the Company appealed to the Federal Circuit from the PTO’s decision finding certain claims valid. Mentor filed a cross-appeal on May 2, 2014 from the PTO's decision finding certain claims invalid. On February 10, 2016, the Federal Circuit affirmed the PTO's decision in all respects. On December 21, 2013, Mentor filed an inter partes review request with the PTO challenging the validity of the Company’s ‘420 patent. On June 11, 2015, the PTO issued its final decision in the review, finding all of the challenged claims invalid. On August 12, 2015, the Company appealed to the Federal Circuit from the PTO's decision. On October 11, 2016, the Federal Circuit affirmed the PTO’s decision. On September 30, 2016, the Company filed a petition requesting ex parte reexamination of all of the claims of the ‘376 patent asserted in the Oregon Action. Mentor objected on procedural grounds. On November 8, 2016, the PTO instituted reexamination of the ‘376 patent. On December 15, 2016, the PTO vacated its decision to institute reexamination based upon Mentor’s procedural objection. The Company thereafter filed a renewed request for ex parte reexamination of only Claims 24, 26 and 27 of the patent, which was granted by the PTO in February 2017. On May 2, 2017, the Company also sued the PTO in federal district court in the Eastern District of Virginia, challenging the PTO’s decision not to institute reexamination of Claims 1 and 28. On May 22, 2017, the Company petitioned for ex parte reexamination of certain claims of the ‘882 patent. On June 20, 2017, the PTO instituted reexamination on all of the challenged claims. The ex parte reexamination and the lawsuit are ongoing. While the Company intends to defend all of the above matters vigorously, the ultimate outcome of any litigation, including the litigation with Mentor, is uncertain and may have an adverse outcome resulting in losses beyond recorded amounts. In the event of an unfavorable final outcome, there exists the possibility of a material adverse impact on the Company's consolidated financial statements for the period in which the effects become reasonably estimable. Tax Matters The Company undergoes examination from time to time by U.S. and foreign authorities for non-income based taxes, such as sales, use and value-added taxes, and is currently under examination by tax authorities in certain jurisdictions. If the potential loss from such examinations is considered probable and the amount or the range of loss could be estimated, the Company would accrue a liability for the estimated expense. In addition to the foregoing, the Company is, from time to time, party to various other claims and legal proceedings in the ordinary course of our business, including with tax and other governmental authorities. For a description of certain of these other matters, refer to Note 15. Taxes. |
Effect of New Accounting Pronou
Effect of New Accounting Pronouncements | 9 Months Ended |
Jul. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Effect of New Accounting Pronouncements | Effect of New Accounting Pronouncements In May 2014, the 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. Since the issuance of Topic 606, the FASB has issued several amendments to the ASU, including deferral of the adoption date initially proposed, clarification on accounting for licenses of intellectual property, and identifying performance obligations. Topic 606 will be effective for the Company beginning in fiscal 2019, including interim periods within that reporting period. The ASU permits two retrospective methods for adoption. The Company currently anticipates adopting Topic 606 using the modified retrospective method under which the cumulative effect of initially applying the guidance is recognized at the date of initial application. The Company derives the majority of its total revenue from Technology Subscription License (TSL) contracts. The Company believes that the promised licenses of software (i.e., functional intellectual property) and the promise to provide substantive, timely, and technologically relevant updates in its TSL contracts reflect inputs to a combined item that represents a single overall promise to provide customer access to a suite of EDA software in an integrated solution that will evolve as our customers’ industries evolve through rapid technology changes. Accordingly, the Company has concluded that this single overall promise will be recognized as revenue over the term of the contract period. Accordingly, the Company expects that there will be no significant change in the nature and timing of revenue recognition for our TSL contracts under Topic 606. The timing of revenue recognition for the Company’s upfront products, maintenance and professional services is expected to remain substantially unchanged. The Company continues to assess all potential impacts of Topic 606 on other multiple element software arrangements that combine many software-related deliverables. As the requirement to have Vendor-Specific Objective Evidence (VSOE) for undelivered elements is not necessary to separate revenue from delivered software licenses, which is an essential criterion for separation under current standard, revenue would no longer be recognized over the arrangement period for certain of the Company's term licenses and IP licenses. The Company is currently in the process of evaluating the impact of these changes on the remainder of its arrangements. Topic 606 also requires the deferral of incremental costs of obtaining a contract with a customer. This will require the Company to capitalize incremental costs such as commissions and other costs directly related to obtaining customer contracts and amortize those costs over the period the assets are expected to contribute future cash flows, which will be over the life of the contract. Under the existing rules, the Company expenses commissions based on shipments. In February 2016, the FASB issued ASU 2016-2, "Leases (Topic 842)," which supersedes the lease requirements in "Leases (Topic 840)." This ASU requires a lessee to recognize a right-of-use asset and a lease payment liability for most leases in the Consolidated Statement of Financial Position. This ASU also makes some changes to lessor accounting and aligns with the new revenue recognition guidance. This ASU will be effective for fiscal 2020, including interim periods within that reporting period, and earlier adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory.” This ASU requires the immediate recognition of current and deferred income tax effects of intra-entity transfers of assets other than inventory. This ASU will be effective for fiscal 2019, including interim periods within that reporting period, and earlier adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. To prepare financial statements in conformity with U.S. 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 2017 and 2016 are both 52-week years. The third fiscal quarters of fiscal 2017 and 2016 ended on July 29, 2017 and July 30, 2016, respectively, and the prior fiscal year ended on October 29, 2016. 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 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. Since the issuance of Topic 606, the FASB has issued several amendments to the ASU, including deferral of the adoption date initially proposed, clarification on accounting for licenses of intellectual property, and identifying performance obligations. Topic 606 will be effective for the Company beginning in fiscal 2019, including interim periods within that reporting period. The ASU permits two retrospective methods for adoption. The Company currently anticipates adopting Topic 606 using the modified retrospective method under which the cumulative effect of initially applying the guidance is recognized at the date of initial application. The Company derives the majority of its total revenue from Technology Subscription License (TSL) contracts. The Company believes that the promised licenses of software (i.e., functional intellectual property) and the promise to provide substantive, timely, and technologically relevant updates in its TSL contracts reflect inputs to a combined item that represents a single overall promise to provide customer access to a suite of EDA software in an integrated solution that will evolve as our customers’ industries evolve through rapid technology changes. Accordingly, the Company has concluded that this single overall promise will be recognized as revenue over the term of the contract period. Accordingly, the Company expects that there will be no significant change in the nature and timing of revenue recognition for our TSL contracts under Topic 606. The timing of revenue recognition for the Company’s upfront products, maintenance and professional services is expected to remain substantially unchanged. The Company continues to assess all potential impacts of Topic 606 on other multiple element software arrangements that combine many software-related deliverables. As the requirement to have Vendor-Specific Objective Evidence (VSOE) for undelivered elements is not necessary to separate revenue from delivered software licenses, which is an essential criterion for separation under current standard, revenue would no longer be recognized over the arrangement period for certain of the Company's term licenses and IP licenses. The Company is currently in the process of evaluating the impact of these changes on the remainder of its arrangements. Topic 606 also requires the deferral of incremental costs of obtaining a contract with a customer. This will require the Company to capitalize incremental costs such as commissions and other costs directly related to obtaining customer contracts and amortize those costs over the period the assets are expected to contribute future cash flows, which will be over the life of the contract. Under the existing rules, the Company expenses commissions based on shipments. In February 2016, the FASB issued ASU 2016-2, "Leases (Topic 842)," which supersedes the lease requirements in "Leases (Topic 840)." This ASU requires a lessee to recognize a right-of-use asset and a lease payment liability for most leases in the Consolidated Statement of Financial Position. This ASU also makes some changes to lessor accounting and aligns with the new revenue recognition guidance. This ASU will be effective for fiscal 2020, including interim periods within that reporting period, and earlier adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory.” This ASU requires the immediate recognition of current and deferred income tax effects of intra-entity transfers of assets other than inventory. This ASU will be effective for fiscal 2019, including interim periods within that reporting period, and earlier adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | Goodwill as of July 31, 2017 and October 31, 2016 consisted of the following: (in thousands) As of October 31, 2016 $ 2,518,245 Additions 132,694 Effect of foreign currency translation 9,741 As of July 31, 2017 $ 2,660,680 |
Summary of Intangible Assets | Intangible assets as of July 31, 2017 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 622,979 $ 511,064 $ 111,915 Customer relationships 276,704 160,188 116,516 Contract rights intangible 173,455 171,420 2,035 Trademarks and trade names 25,129 16,556 8,573 In-process research and development (IPR&D)(1) 4,600 — 4,600 Capitalized software development costs 32,772 28,076 4,696 Total $ 1,135,639 $ 887,304 $ 248,335 (1) IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. Intangible assets as of October 31, 2016 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 610,812 $ 460,722 $ 150,090 Customer relationships 235,997 139,932 96,065 Contract rights intangible 171,248 162,183 9,065 Trademarks and trade names 20,729 13,821 6,908 Capitalized software development costs 29,642 25,109 4,533 Total $ 1,068,428 $ 801,767 $ 266,661 |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets consisted of the following: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Core/developed technology $ 15,575 $ 21,673 $ 50,330 $ 65,536 Customer relationships 6,834 6,333 20,569 18,820 Contract rights intangible 3,215 2,720 9,893 13,827 Trademarks and trade names 896 792 2,734 2,374 Capitalized software development costs(2) 1,002 927 2,968 2,764 Total $ 27,522 $ 32,445 $ 86,494 $ 103,321 (2) Amortization of capitalized software development costs is included in cost of products revenue in the unaudited condensed consolidated statements of operations. |
Estimated Future Amortization of Intangible Assets | The following table presents the estimated future amortization of the existing intangible assets: Fiscal Year (in thousands) Remainder of fiscal 2017 $ 24,465 2018 82,650 2019 57,337 2020 39,478 2021 21,338 2022 and thereafter 18,467 IPR&D(3) 4,600 Total $ 248,335 (3) IPR&D assets are amortized over their useful lives upon completion or written off upon abandonment. |
Financial Assets and Liabilit27
Financial Assets and Liabilities (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Financial Assets And Liabilities [Abstract] | |
Summary of Available-for-Sale Securities | As of July 31, 2017 , the balances of our available-for-sale securities are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 510,086 $ — $ — $ — $ 510,086 Commercial paper 2,274 — — — 2,274 Certificates of deposit 1,600 — — — 1,600 Total: $ 513,960 $ — $ — $ — $ 513,960 Short-term investments: U.S. government agency securities $ 17,982 $ 2 $ (27 ) $ (4 ) $ 17,953 Certificates of deposit 22,017 — — — 22,017 Commercial paper 23,507 — — — 23,507 Corporate debt securities 61,337 47 (23 ) — 61,361 Asset-backed securities 21,180 4 (15 ) — 21,169 Other 1,499 2 — — 1,501 Total: $ 147,522 $ 55 $ (65 ) $ (4 ) $ 147,508 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. As of October 31, 2016 , the balances of our available-for-sale securities are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 499,274 $ — $ — $ — $ 499,274 Commercial paper 1,498 — — — 1,498 Certificates of deposit 4,200 — — — 4,200 Total: $ 504,972 $ — $ — $ — $ 504,972 Short-term investments: U.S. government agency securities $ 13,607 $ 4 $ (8 ) $ — $ 13,603 Certificates of deposit 12,849 — — — 12,849 Commercial paper 25,430 1 — — 25,431 Corporate debt securities 58,753 43 (18 ) — 58,778 Asset-backed securities 22,146 12 (12 ) — 22,146 Non-U.S. government agency securities 3,403 — (3 ) — 3,400 Other 4,488 — — — 4,488 Total: $ 140,676 $ 60 $ (41 ) $ — $ 140,695 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments. |
Maturities of Available-for-Sale securities | As of July 31, 2017 , the stated maturities of the Company's available-for-sale securities are: Amortized Cost Fair Value (in thousands) Due in 1 year or less $ 107,164 $ 107,133 Due in 2-5 years 40,358 40,375 Total $ 147,522 $ 147,508 |
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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Gain (loss) recorded in other income (expense), net $ 515 $ (2,193 ) $ 1,838 $ (4,042 ) |
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 July 31, 2017 As of October 31, 2016 (in thousands) Total gross notional amount $ 803,986 $ 758,246 Net fair value $ 15,464 $ (15,358 ) |
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 July 31, 2017 Other current assets $ 17,017 $ 306 Accrued liabilities $ 1,741 $ 118 As of October 31, 2016 Other current assets $ 4,625 $ 27 Accrued liabilities $ 19,910 $ 101 |
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 $ (176 ) Revenue $ (198 ) Foreign exchange contracts Operating expenses 8,747 Operating expenses 176 Total $ 8,571 $ (22 ) Three months ended Foreign exchange contracts Revenue $ (5,443 ) Revenue $ (2,900 ) Foreign exchange contracts Operating expenses (6,317 ) Operating expenses (2,274 ) Total $ (11,760 ) $ (5,174 ) Nine months ended Foreign exchange contracts Revenue $ 6,824 Revenue $ (2,379 ) Foreign exchange contracts Operating expenses 12,357 Operating expenses (3,236 ) Total $ 19,181 $ (5,615 ) Nine months ended Foreign exchange contracts Revenue $ (13,117 ) Revenue $ (4,117 ) Foreign exchange contracts Operating expenses (8,262 ) Operating expenses (9,970 ) Total $ (21,379 ) $ (14,087 ) |
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 statement of operations on derivatives (ineffective portion)(1) Amount of gain (loss) recognized in statement of operations on derivatives (excluded from effectiveness testing)(2) (in thousands) For the three months ended July 31, 2017 $ 11 $ 776 For the three months ended July 31, 2016 $ 890 $ 1,827 For the nine months ended July 31, 2017 $ 175 $ 3,393 For the nine months ended July 31, 2016 $ 1,345 $ 5,368 (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) | 9 Months Ended |
Jul. 31, 2017 | |
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 July 31, 2017 : 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 $ 510,086 $ 510,086 $ — $ — Commercial paper 2,274 — 2,274 — Certificates of deposit 1,600 — 1,600 — Short-term investments: U.S. government agency securities 17,953 — 17,953 — Certificates of deposit 22,017 — 22,017 — Commercial paper 23,507 — 23,507 — Corporate debt securities 61,361 — 61,361 — Asset-backed securities 21,169 — 21,169 — Other 1,501 — 1,501 — Prepaid and other current assets: Foreign currency derivative contracts 17,323 — 17,323 — Other long-term assets: Deferred compensation plan assets 191,013 191,013 — — Total assets $ 869,804 $ 701,099 $ 168,705 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 1,859 $ — $ 1,859 $ — Other long-term liabilities: Deferred compensation plan liabilities 191,013 191,013 — — Total liabilities $ 192,872 $ 191,013 $ 1,859 $ — Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 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 $ 499,274 $ 499,274 $ — $ — Commercial paper 1,498 — 1,498 — Certificates of deposit 4,200 — 4,200 — Short-term investments: U.S. government agency securities 13,603 — 13,603 — Certificates of deposit 12,849 — 12,849 — Commercial paper 25,431 — 25,431 — Corporate debt securities 58,778 — 58,778 — Asset-backed securities 22,146 — 22,146 — Non-U.S. government agency securities 3,400 — 3,400 — Other 4,488 4,488 — — Prepaid and other current assets: Foreign currency derivative contracts 4,652 — 4,652 — Other long-term assets: Deferred compensation plan assets 163,185 163,185 — — Total assets $ 813,504 $ 666,947 $ 146,557 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 20,010 $ — $ 20,010 $ — Other long-term liabilities: Deferred compensation plan liabilities 163,185 163,185 — — Total liabilities $ 183,195 $ 163,185 $ 20,010 $ — |
Non-Marketable Equity Securities | The following table presents the non-marketable equity securities that were measured and recorded at fair value within other long-term assets on a non-recurring basis and the loss recorded in other income (expense), net. Balance as of July 31, 2017 Significant Unobservable Inputs (Level 3) Total (losses) during three months ended July 31, 2017 Total (in thousands) Non-marketable equity securities $ — $ — $ — $ (1,300 ) |
Liabilities and Restructuring29
Liabilities and Restructuring Charges (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Liabilities and Restructuring Charges [Abstract] | |
Summary of Restructuring Activities | The following is a summary of restructuring activities during the nine months ended July 31, 2017 : (in thousands) Liability as of October 31, 2016 $ 5,679 Restructuring costs incurred 31,038 Cash payments $ (21,523 ) As of July 31, 2017(1) $ 15,194 (1) Outstanding balance recorded in accounts payable and accrued liabilities as payroll and related benefits. |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of: July 31, October 31, (in thousands) Payroll and related benefits $ 297,755 $ 321,430 Other accrued liabilities 85,674 66,276 Accounts payable 19,873 13,745 Total $ 403,302 $ 401,451 |
Other Long-Term Liabilities | Other long-term liabilities consist of: July 31, October 31, (in thousands) Deferred compensation liability $ 191,013 $ 163,185 Other long-term liabilities 56,001 47,670 Total $ 247,014 $ 210,855 |
Credit Facility Credit Facility
Credit Facility Credit Facility (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Term Loan | During the first quarter of fiscal 2017, the Company received funding of $150.0 million under the Term Loan. Outstanding principal payments under the Term Loan are due as follows: Fiscal year (in thousands) Remainder of fiscal 2017 $ 1,875 2018 10,313 2019 14,062 2020 17,813 2021 27,187 2022 75,000 Total $ 146,250 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
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: July 31, October 31, (in thousands) Cumulative currency translation adjustments $ (72,373 ) $ (84,700 ) Unrealized gain (loss) on derivative instruments, net of taxes 4,724 (19,896 ) Unrealized gain (loss) on available-for-sale securities, net of taxes (15 ) 19 Total accumulated other comprehensive income (loss) $ (67,664 ) $ (104,577 ) |
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 Nine Months Ended 2017 2016 2017 2016 (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 $ (198 ) $ (2,900 ) $ (2,379 ) $ (4,117 ) Operating expenses 176 (2,274 ) (3,236 ) (9,970 ) Gain (loss) on available-for-sale securities Other income (expense) $ — 5 1 $ 15 Total reclassifications into net income $ (22 ) $ (5,169 ) $ (5,614 ) $ (14,072 ) |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase And Reissuance Activities | Stock repurchase activities are as follow: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Total shares repurchased (1) 1,627 2,525 4,401 6,889 Total cost of the repurchased shares(1) $ 120,000 $ 120,000 $ 300,000 $ 320,000 Reissuance of treasury stock 1,316 1,708 3,188 3,169 (1) The number of shares purchased and average purchase price paid per share includes the 265,894 shares and $20.0 million equity forward contract, respectively, from the February 2017 ASR settled in May 2017. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Cost of products $ 3,358 $ 2,912 $ 9,170 $ 8,116 Cost of maintenance and service 1,073 650 2,881 1,792 Research and development expense 13,617 13,046 39,069 36,469 Sales and marketing expense 5,494 5,139 15,430 14,581 General and administrative expense 4,759 3,824 13,147 11,085 Stock compensation expense before taxes 28,301 25,571 79,697 72,043 Income tax benefit (8,086 ) (6,781 ) (22,769 ) (19,106 ) Stock compensation expense after taxes $ 20,215 $ 18,790 $ 56,928 $ 52,937 |
Schedule of Intrinsic Value of Equity Awards Exercised | The intrinsic values of equity awards exercised during the periods are as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Intrinsic value of awards exercised $ 20,688 $ 19,530 $ 49,344 $ 28,028 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
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 Nine Months Ended 2017 2016 2017 2016 (in thousands, except per share amounts) Numerator: Net income $ 116,751 $ 64,718 $ 256,645 $ 194,129 Denominator: Weighted-average common shares for basic net income per share 150,214 151,169 150,460 152,129 Dilutive effect of potential common shares from equity-based compensation 4,469 2,721 4,327 2,500 Weighted-average common shares for diluted net income per share 154,683 153,890 154,787 154,629 Net income per share: Basic $ 0.78 $ 0.43 $ 1.71 $ 1.28 Diluted $ 0.75 $ 0.42 $ 1.66 $ 1.26 Anti-dilutive employee stock-based awards excluded(1) 492 2,270 1,186 1,822 (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) | 9 Months Ended |
Jul. 31, 2017 | |
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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Revenue: United States $ 358,201 $ 316,902 $ 1,028,108 $ 889,220 Europe 80,260 66,946 234,259 211,993 Japan 64,119 63,056 183,023 174,838 Asia-Pacific and Other 192,801 168,300 582,846 512,762 Consolidated $ 695,381 $ 615,204 $ 2,028,236 $ 1,788,813 |
Other Income (Expense), net (Ta
Other Income (Expense), net (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Interest income $ 2,015 $ 1,031 $ 4,747 $ 2,499 Interest expense (2,320 ) (1,208 ) (5,487 ) (2,729 ) Gain (loss) on assets related to executive deferred compensation plan assets 6,791 6,822 22,334 6,136 Foreign currency exchange gain (loss) 278 (94 ) 2,877 (296 ) Other, net 657 1,958 2,851 6,548 Total $ 7,421 $ 8,509 $ 27,322 $ 12,158 |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
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 Nine Months Ended 2017 2016 2017 2016 (in thousands) Income before income taxes $ 112,791 $ 85,231 $ 283,172 $ 246,796 Provision (benefit) for income taxes $ (3,960 ) $ 20,513 $ 26,527 $ 52,667 Effective tax rate (3.5 )% 24.1 % 9.4 % 21.3 % |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2017 | Oct. 31, 2016 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 2,660,680 | $ 2,518,245 |
Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Purchase Consideration, Net of Cash Acquired | 188,100 | |
Fair Value Of Stock Options Assumed | 4,400 | |
Goodwill | 132,700 | |
Goodwill, Expected Tax Deductible Amount | 11,900 | |
Identifiable Intangible Assets Acquired | 64,900 | |
Acquisition-Related Costs | $ 4,100 | |
Series of Individually Immaterial Business Acquisitions | Minimum | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Series of Individually Immaterial Business Acquisitions | Maximum | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Summary of Goodwill (Detail) $ in Thousands | 9 Months Ended |
Jul. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
As of October 31, 2016 | $ 2,518,245 |
Additions | 132,694 |
Effect of foreign currency translation | 9,741 |
As of July 31, 2017 | $ 2,660,680 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 1,135,639 | $ 1,068,428 |
Accumulated Amortization | 887,304 | 801,767 |
Net Assets | 248,335 | 266,661 |
Core/developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 622,979 | 610,812 |
Accumulated Amortization | 511,064 | 460,722 |
Net Assets | 111,915 | 150,090 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 276,704 | 235,997 |
Accumulated Amortization | 160,188 | 139,932 |
Net Assets | 116,516 | 96,065 |
Contract rights intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 173,455 | 171,248 |
Accumulated Amortization | 171,420 | 162,183 |
Net Assets | 2,035 | 9,065 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 25,129 | 20,729 |
Accumulated Amortization | 16,556 | 13,821 |
Net Assets | 8,573 | 6,908 |
In Process Research and Development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 4,600 | |
Accumulated Amortization | 0 | |
Net Assets | 4,600 | |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 32,772 | 29,642 |
Accumulated Amortization | 28,076 | 25,109 |
Net Assets | $ 4,696 | $ 4,533 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | $ 27,522 | $ 32,445 | $ 86,494 | $ 103,321 |
Core/developed technology | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 15,575 | 21,673 | 50,330 | 65,536 |
Customer relationships | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 6,834 | 6,333 | 20,569 | 18,820 |
Contract rights intangible | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 3,215 | 2,720 | 9,893 | 13,827 |
Trademarks and trade names | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 896 | 792 | 2,734 | 2,374 |
Capitalized software development costs | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | $ 1,002 | $ 927 | $ 2,968 | $ 2,764 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) $ in Thousands | Jul. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2017 | $ 24,465 |
2,018 | 82,650 |
2,019 | 57,337 |
2,020 | 39,478 |
2,021 | 21,338 |
2022 and thereafter | 18,467 |
IPR&D | 4,600 |
Total | $ 248,335 |
Financial Assets and Liabilit43
Financial Assets and Liabilities - Short-term investments (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 |
Cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | $ 513,960 | $ 504,972 |
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 | 513,960 | 504,972 |
Cash equivalents | Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 510,086 | 499,274 |
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 | 510,086 | 499,274 |
Cash equivalents | Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 2,274 | 1,498 |
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 | 2,274 | 1,498 |
Cash equivalents | Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 1,600 | 4,200 |
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 | 1,600 | 4,200 |
Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 147,522 | 140,676 |
Gross unrealized gains | 55 | 60 |
Gross unrealized losses less than 12 months | (65) | (41) |
Gross unrealized losses 12 months or longer | (4) | 0 |
Estimated fair value | 147,508 | 140,695 |
Short-term investments | Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 23,507 | 25,430 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses less than 12 months | 0 | 0 |
Gross unrealized losses 12 months or longer | 0 | 0 |
Estimated fair value | 23,507 | 25,431 |
Short-term investments | U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 17,982 | 13,607 |
Gross unrealized gains | 2 | 4 |
Gross unrealized losses less than 12 months | (27) | (8) |
Gross unrealized losses 12 months or longer | (4) | 0 |
Estimated fair value | 17,953 | 13,603 |
Short-term investments | Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 22,017 | 12,849 |
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 | 22,017 | 12,849 |
Short-term investments | Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 61,337 | 58,753 |
Gross unrealized gains | 47 | 43 |
Gross unrealized losses less than 12 months | (23) | (18) |
Gross unrealized losses 12 months or longer | 0 | 0 |
Estimated fair value | 61,361 | 58,778 |
Short-term investments | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 21,180 | 22,146 |
Gross unrealized gains | 4 | 12 |
Gross unrealized losses less than 12 months | (15) | (12) |
Gross unrealized losses 12 months or longer | 0 | 0 |
Estimated fair value | 21,169 | 22,146 |
Short-term investments | Non-U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 3,403 | |
Gross unrealized gains | 0 | |
Gross unrealized losses less than 12 months | (3) | |
Gross unrealized losses 12 months or longer | 0 | |
Estimated fair value | 3,400 | |
Short-term investments | Others | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 1,499 | 4,488 |
Gross unrealized gains | 2 | 0 |
Gross unrealized losses less than 12 months | 0 | 0 |
Gross unrealized losses 12 months or longer | 0 | 0 |
Estimated fair value | $ 1,501 | $ 4,488 |
Financial Assets and Liabilit44
Financial Assets and Liabilities - Investments Maturity Table (Details) $ in Thousands | Jul. 31, 2017USD ($) |
Amortized Cost | |
Due in 1 year or less | $ 107,164 |
Due in 2-5 years | 40,358 |
Total | 147,522 |
Fair Value | |
Due in 1 year or less | 107,133 |
Due in 2-5 years | 40,375 |
Total | $ 147,508 |
Financial Assets and Liabilit45
Financial Assets and Liabilities - Additional Information (Details) | 9 Months Ended |
Jul. 31, 2017 | |
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 |
Non-Designated Hedging Instrument | |
Financial Assets and Liabilities [Line Items] | |
Forward contracts terms (in months) | 1 month |
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 |
Foreign Exchange Forward | Cash Flow Hedging | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Derivative maturity period | 22 months |
Foreign Exchange Contracts | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Duration of foreign exchange forward contracts | 1 year |
Financial Assets and Liabilit46
Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Financial Assets And Liabilities [Abstract] | ||||
Gain (loss) recorded in other income (expense), net | $ 515 | $ (2,193) | $ 1,838 | $ (4,042) |
Financial Assets and Liabilit47
Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 |
Financial Assets And Liabilities [Abstract] | ||
Total gross notional amount | $ 803,986 | $ 758,246 |
Net fair value | $ 15,464 | $ (15,358) |
Financial Assets and Liabilit48
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 | Jul. 31, 2017 | Oct. 31, 2016 |
Designated As Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | $ 17,017 | $ 4,625 |
Designated As Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | 1,741 | 19,910 |
Non-Designated Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | 306 | 27 |
Non-Designated Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | $ 118 | $ 101 |
Financial Assets and Liabilit49
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 | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Financial Assets and Liabilities [Line Items] | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | $ 8,571 | $ (11,760) | $ 19,181 | $ (21,379) |
Amount of gain (loss) reclassified from OCI (effective portion) | (22) | (5,174) | (5,615) | (14,087) |
Foreign Exchange Contracts | Revenues | ||||
Financial Assets and Liabilities [Line Items] | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | (176) | (5,443) | 6,824 | (13,117) |
Amount of gain (loss) reclassified from OCI (effective portion) | (198) | (2,900) | (2,379) | (4,117) |
Foreign Exchange Contracts | Operating expenses | ||||
Financial Assets and Liabilities [Line Items] | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 8,747 | (6,317) | 12,357 | (8,262) |
Amount of gain (loss) reclassified from OCI (effective portion) | $ 176 | $ (2,274) | $ (3,236) | $ (9,970) |
Financial Assets and Liabilit50
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 | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Financial Assets and Liabilities [Line Items] | ||||
Amount of gain (loss) recognized in statement of operations on derivatives (ineffective portion) | $ 11 | $ 890 | $ 175 | $ 1,345 |
Amount of gain (loss) recognized in statement of operations on derivatives (excluded from effectiveness testing) | $ 776 | $ 1,827 | $ 3,393 | $ 5,368 |
Fair Value Measures - Assets an
Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) | Jul. 31, 2017 | Oct. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 869,804,000 | $ 813,504,000 |
Total liabilities | 192,872,000 | 183,195,000 |
Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 17,323,000 | 4,652,000 |
Accounts payable and accrued liabilities | 1,859,000 | 20,010,000 |
Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 191,013,000 | 163,185,000 |
Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 191,013,000 | 163,185,000 |
Money market funds | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 510,086,000 | 499,274,000 |
Commercial paper | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,274,000 | 1,498,000 |
Commercial paper | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 23,507,000 | 25,431,000 |
Certificates of deposit | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,600,000 | 4,200,000 |
Certificates of deposit | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 22,017,000 | 12,849,000 |
U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 17,953,000 | 13,603,000 |
Corporate debt securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 61,361,000 | 58,778,000 |
Asset-backed securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 21,169,000 | 22,146,000 |
Non-U.S. government agency securities | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 3,400,000 | |
Others | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,501,000 | 4,488,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 701,099,000 | 666,947,000 |
Total liabilities | 191,013,000 | 163,185,000 |
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 | 191,013,000 | 163,185,000 |
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 | 191,013,000 | 163,185,000 |
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 | 510,086,000 | 499,274,000 |
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 | 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 | 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 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Others | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 4,488,000 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 168,705,000 | 146,557,000 |
Total liabilities | 1,859,000 | 20,010,000 |
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 | 17,323,000 | 4,652,000 |
Accounts payable and accrued liabilities | 1,859,000 | 20,010,000 |
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 | 2,274,000 | 1,498,000 |
Significant Other Observable Inputs (Level 2) | Commercial paper | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 23,507,000 | 25,431,000 |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,600,000 | 4,200,000 |
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 | 22,017,000 | 12,849,000 |
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 | 17,953,000 | 13,603,000 |
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 | 61,361,000 | 58,778,000 |
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 | 21,169,000 | 22,146,000 |
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 | 3,400,000 | |
Significant Other Observable Inputs (Level 2) | Others | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,501,000 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan 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 | 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 | 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 | |
Significant Unobservable Inputs (Level 3) | Others | 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 Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Fair Value Measures [Line Items] | ||||
Write-down of long-term investments | $ 0 | $ 0 | $ 1,300 | $ 0 |
Fair Value Measures - Non-Marke
Fair Value Measures - Non-Marketable Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Write-down of long-term investments | $ 0 | $ 0 | $ (1,300) | $ 0 |
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Non-marketable equity securities | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Non-marketable equity securities | $ 0 | $ 0 |
Liabilities and Restructuring54
Liabilities and Restructuring Charges - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 6,026,000 | $ 0 | $ 31,038,000 | $ 2,987,000 | |
Employee Severance and Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 6,000,000 | 31,038,000 | |||
Cash payments | 2,700,000 | 21,523,000 | |||
Employee related restructuring liabilities | 15,194,000 | 15,194,000 | $ 5,679,000 | ||
2016 Restructuring Plans | Employee Severance and Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 9,600,000 | ||||
Employee related restructuring liabilities | $ 0 | $ 0 |
Liabilities and Restructuring55
Liabilities and Restructuring Charges - Summary of Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 6,026 | $ 0 | $ 31,038 | $ 2,987 |
Employee Severance and Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability as of October 31, 2016 | 5,679 | |||
Restructuring charges | 6,000 | 31,038 | ||
Cash (payments) | (2,700) | (21,523) | ||
As of July 31, 2017 | $ 15,194 | $ 15,194 |
Liabilities and Restructuring56
Liabilities and Restructuring Charges - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 |
Payables and Accruals [Abstract] | ||
Payroll and related benefits | $ 297,755 | $ 321,430 |
Other accrued liabilities | 85,674 | 66,276 |
Accounts payable | 19,873 | 13,745 |
Total | $ 403,302 | $ 401,451 |
Liabilities and Restructuring57
Liabilities and Restructuring Charges - Components of Other Long Term Liabilities (Detail) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | ||
Deferred compensation liability | $ 191,013 | $ 163,185 |
Other long-term liabilities | 56,001 | 47,670 |
Total | $ 247,014 | $ 210,855 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | Nov. 28, 2016 | Jan. 31, 2017 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | May 19, 2015 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 137,813,000 | $ 0 | ||||
Proceeds from Lines of Credit | 270,000,000 | $ 185,000,000 | ||||
Unsecured Debt | The Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 650,000,000 | $ 500,000,000 | ||||
Additional borrowings from credit facility | 150,000,000 | |||||
Line of Credit, Current | $ 290,000,000 | |||||
Unsecured Debt | The Credit Agreement | Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees percentage | 0.125% | |||||
Unsecured Debt | The Credit Agreement | Revolving Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees percentage | 0.20% | |||||
Unsecured Debt | The Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings, interest rate | 1.00% | |||||
Unsecured Debt | The Credit Agreement | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured term loan facility, face amount | $ 150,000,000 | |||||
Total Outstanding senior unsecured term loan facility | $ 145,800,000 | |||||
Long-term debt | $ 137,800,000 | |||||
Proceeds from Lines of Credit | $ 150,000,000 | |||||
Unsecured Debt | The Credit Agreement | Term Loan | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings, interest rate | 1.125% | |||||
Unsecured Debt | 2015 Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit, Current | 205,000,000 | |||||
Unsecured Debt | 2015 Agreement | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Total Outstanding senior unsecured term loan facility | $ 0 |
Credit Facility Credit Facili59
Credit Facility Credit Facility - Schedule of Maturities of Term Loan (Details) - Term Loan - Unsecured Debt - The Credit Agreement $ in Thousands | Jul. 31, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2017 | $ 1,875 |
2,018 | 10,313 |
2,019 | 14,062 |
2,020 | 17,813 |
2,021 | 27,187 |
2,022 | 75,000 |
Total | $ 146,250 |
Accumulated Other Comprehensi60
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative currency translation adjustments | $ (72,373) | $ (84,700) |
Unrealized gain (loss) on derivative instruments, net of taxes | 4,724 | (19,896) |
Unrealized gain (loss) on available-for-sale securities, net of taxes | (15) | 19 |
Total accumulated other comprehensive income (loss) | $ (67,664) | $ (104,577) |
Accumulated Other Comprehensi61
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 | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | $ (22) | $ (5,169) | $ (5,614) | $ (14,072) |
Revenues | Gain (loss) on cash flow hedges, net of taxes | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | (198) | (2,900) | (2,379) | (4,117) |
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 | 176 | (2,274) | (3,236) | (9,970) |
Other income (expense) | Gain (loss) on available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | $ 0 | $ 5 | $ 1 | $ 15 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||||||||
Jul. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | Jul. 31, 2016 | May 31, 2017 | Jul. 31, 2017 | Jul. 31, 2016 | Jun. 15, 2017 | Dec. 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Stock repurchase program authorized amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |||||||||
Remaining amount available for further repurchases | 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||||||
Shares repurchased (in shares) | 1,627,000 | 2,525,000 | 4,401,000 | 6,889,000 | |||||||||
Accelerated Share Repurchase Program December 2016 | |||||||||||||
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 | ||||||||||||
Shares repurchased (in shares) | 1,700,000 | ||||||||||||
Average purchase price of shares purchased under agreement (in USD per share) | $ 60.53 | ||||||||||||
Accelerated Share Repurchase Program February 2017 | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Stock repurchase program authorized amount | $ 100,000,000 | $ 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 | ||||||||||||
Shares repurchased (in shares) | 265,894 | 1,400,000 | |||||||||||
Average purchase price of shares purchased under agreement (in USD per share) | $ 72.02 | ||||||||||||
Accelerated Share Repurchase Program May 2017 | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Stock repurchase program authorized amount | $ 100,000,000 | $ 100,000,000 | |||||||||||
Prepayment amount | $ 100,000,000 | ||||||||||||
Accelerated share repurchase, initial share delivery, amount | 80,000,000 | $ 80,000,000 | $ 80,000,000 | ||||||||||
Stock repurchase program, prepayment during prior period, derivative settlement | $ 20,000,000 | ||||||||||||
Shares repurchased (in shares) | 1,400,000 | ||||||||||||
Average purchase price of shares purchased under agreement (in USD per share) | $ 73.49 |
Stock Repurchase Program - Stoc
Stock Repurchase Program - Stock Repurchase Activities (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Stock Repurchase Program [Abstract] | ||||
Shares repurchased (in shares) | 1,627 | 2,525 | 4,401 | 6,889 |
Total cost of the repurchased shares | $ 120,000 | $ 120,000 | $ 300,000 | $ 320,000 |
Reissuance of treasury stock (in shares) | 1,316 | 1,708 | 3,188 | 3,169 |
Stock Compensation Expense (Det
Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | $ 28,301 | $ 25,571 | $ 79,697 | $ 72,043 |
Income tax benefit | (8,086) | (6,781) | (22,769) | (19,106) |
Stock compensation expense after taxes | 20,215 | 18,790 | 56,928 | 52,937 |
Cost of products | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | 3,358 | 2,912 | 9,170 | 8,116 |
Cost of maintenance and service | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | 1,073 | 650 | 2,881 | 1,792 |
Research and development expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | 13,617 | 13,046 | 39,069 | 36,469 |
Sales and marketing expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | 5,494 | 5,139 | 15,430 | 14,581 |
General and administrative expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | $ 4,759 | $ 3,824 | $ 13,147 | $ 11,085 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2017 | Nov. 01, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Unamortized share-based compensation expense | $ 223.5 | $ 223.5 | |
Weighted-average period of total compensation costs to be recognized in years | 2 years 7 months 6 days | ||
Share-based compensation, excess tax benefit, amount | $ 18.4 | $ 29.7 | |
Accounting Standards Update 2016-09, Forfeiture Rate Component | Retained Earnings | New Accounting Pronouncement, Early Adoption, Effect | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Cumulative effect adjustment | $ 0.4 |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Intrinsic Value of Equity Awards Exercised (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Stock Compensation [Abstract] | ||||
Intrinsic value of awards exercised | $ 20,688 | $ 19,530 | $ 49,344 | $ 28,028 |
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 | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Numerator: | ||||
Net income | $ 116,751 | $ 64,718 | $ 256,645 | $ 194,129 |
Denominator: | ||||
Weighted-average common shares for basic net income per share (shares) | 150,214 | 151,169 | 150,460 | 152,129 |
Dilutive effect of potential common shares from equity-based compensation (shares) | 4,469 | 2,721 | 4,327 | 2,500 |
Weighted-average common shares for diluted net income per share (shares) | 154,683 | 153,890 | 154,787 | 154,629 |
Net income per share: | ||||
Basic (in USD per share) | $ 0.78 | $ 0.43 | $ 1.71 | $ 1.28 |
Diluted (in USD per share) | $ 0.75 | $ 0.42 | $ 1.66 | $ 1.26 |
Anti-dilutive employee stock-based awards excluded (shares) | 492 | 2,270 | 1,186 | 1,822 |
Segment Disclosure - Additional
Segment Disclosure - Additional information (Detail) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017SegmentCustomer | Jul. 31, 2016SegmentCustomer | Jul. 31, 2017SegmentCustomer | Jul. 31, 2016SegmentCustomer | |
Segment Reporting Information [Line Items] | ||||
Number of reportable operating segment | Segment | 1 | 1 | 1 | 1 |
Customer concentration risk | Sales revenue | ||||
Segment Reporting Information [Line Items] | ||||
Number of major customers | Customer | 1 | 1 | 1 | 1 |
Segment Disclosure - Revenues R
Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | $ 695,381 | $ 615,204 | $ 2,028,236 | $ 1,788,813 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | 358,201 | 316,902 | 1,028,108 | 889,220 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | 80,260 | 66,946 | 234,259 | 211,993 |
Japan | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | 64,119 | 63,056 | 183,023 | 174,838 |
Asia-Pacific and Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | $ 192,801 | $ 168,300 | $ 582,846 | $ 512,762 |
Other Income (Expense), net - C
Other Income (Expense), net - Components of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Other Income (Expense) | ||||
Interest income | $ 2,015 | $ 1,031 | $ 4,747 | $ 2,499 |
Interest expense | (2,320) | (1,208) | (5,487) | (2,729) |
Gain (loss) on assets related to executive deferred compensation plan assets | 6,791 | 6,822 | 22,334 | 6,136 |
Foreign currency exchange gain (loss) | 278 | (94) | 2,877 | (296) |
Other, net | 657 | 1,958 | 2,851 | 6,548 |
Total | $ 7,421 | $ 8,509 | $ 27,322 | $ 12,158 |
Taxes - Provision for Income Ta
Taxes - Provision for Income Taxes and Effective Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 112,791 | $ 85,231 | $ 283,172 | $ 246,796 |
Provision (benefit) for income taxes | $ (3,960) | $ 20,513 | $ 26,527 | $ 52,667 |
Effective tax rate | (3.50%) | 24.10% | 9.40% | 21.30% |
Taxes - Additional Information
Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2017 | Jul. 31, 2017 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Jul. 31, 2017 | Nov. 01, 2016 | Oct. 31, 2016 | |
Taxes [Line Items] | ||||||||
Statutory federal income tax rate | 35.00% | 35.00% | ||||||
Deferred income taxes | $ 382,495,000 | $ 382,495,000 | $ 382,495,000 | $ 281,926,000 | ||||
Share-based compensation, excess tax benefit, amount | 18,400,000 | 29,700,000 | ||||||
Fiscal year 2011, 2010, and 2009 | California Franchise Tax Board | ||||||||
Taxes [Line Items] | ||||||||
Reduction in deferred tax asset due to tax settlement | $ 4,900,000 | |||||||
Unrecognized tax benefits decrease resulting from settlement | 10,300,000 | |||||||
Deferred tax asset, increase (decrease), amount | $ 5,400,000 | |||||||
Minimum | ||||||||
Taxes [Line Items] | ||||||||
Estimated potential decrease in underlying unrecognized tax benefits | 0 | 0 | 0 | |||||
Maximum | ||||||||
Taxes [Line Items] | ||||||||
Estimated potential decrease in underlying unrecognized tax benefits | 15,000,000 | 15,000,000 | $ 15,000,000 | |||||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||||||||
Taxes [Line Items] | ||||||||
Deferred income taxes | $ 106,500,000 | |||||||
Retained Earnings | Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||||||||
Taxes [Line Items] | ||||||||
Cumulative effect adjustment | $ 106,500,000 | |||||||
Foreign Tax Authority | Fiscal years 2012 to 2016 | KOREA, REPUBLIC OF | ||||||||
Taxes [Line Items] | ||||||||
Tax adjustments, settlements expense (benefit) | 7,900,000 | |||||||
Foreign Tax Authority | Fiscal Year 2014 | KOREA, REPUBLIC OF | ||||||||
Taxes [Line Items] | ||||||||
Tax adjustments, settlements expense (benefit) | $ (10,900,000) | |||||||
Foreign Tax Authority | Fiscal Year 2011 | TAIWAN, PROVINCE OF CHINA | ||||||||
Taxes [Line Items] | ||||||||
Unrecognized tax benefits decrease resulting from settlement | $ 700,000 | |||||||
Income Taxes Paid | $ 300,000 | |||||||
Foreign Tax Authority | Fiscal years 2010 to 2015 | India Taxing Authority | ||||||||
Taxes [Line Items] | ||||||||
Tax adjustments, settlements expense (benefit) | $ 2,400,000 | |||||||
Synopsys Hungary | Foreign Tax Authority | Tax Year 2011 - Tax Year 2013 | Hungarian Tax Authority | ||||||||
Taxes [Line Items] | ||||||||
Estimate of tax assessment | 47,000,000 | |||||||
Estimate of additional penalties and interest | 18,000,000 | |||||||
Synopsys Hungary | Foreign Tax Authority | Fiscal Year 2015 and Beyond | Hungarian Tax Authority | ||||||||
Taxes [Line Items] | ||||||||
Estimate of tax assessment | $ 18,000,000 |
Contingencies (Details)
Contingencies (Details) - Mentor Patent Litigation - Pending Litigation $ in Millions | Oct. 10, 2014USD ($) | Oct. 04, 2012lawsuitpatent | Mar. 16, 2017USD ($) |
Loss Contingencies [Line Items] | |||
Loss contingency, patent infringement lawsuits | lawsuit | 3 | ||
Loss contingency, patents allegedly infringed | patent | 3 | ||
Loss contingency, value of damages sought | $ 36 | ||
Loss contingency, estimate of possible loss accrued | $ 39 |