Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 31, 2017 | Dec. 11, 2017 | Apr. 28, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Oct. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SNPS | ||
Entity Registrant Name | SYNOPSYS INC | ||
Entity Central Index Key | 883,241 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 148,713,662 | ||
Entity Public Float | $ 8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,048,356 | $ 976,620 |
Short-term investments | 0 | 140,695 |
Total cash, cash equivalents and short-term investments | 1,048,356 | 1,117,315 |
Accounts receivable, net | 451,144 | 438,873 |
Income taxes receivable and prepaid taxes | 48,257 | 56,091 |
Prepaid and other current assets | 134,836 | 104,659 |
Total current assets | 1,682,593 | 1,716,938 |
Property and equipment, net | 266,014 | 257,035 |
Goodwill | 2,706,974 | 2,518,245 |
Intangible assets, net | 253,843 | 266,661 |
Long-term prepaid taxes | 20,157 | 13,991 |
Deferred income taxes | 243,989 | 281,926 |
Other long-term assets | 222,844 | 185,569 |
Total assets | 5,396,414 | 5,240,365 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 499,846 | 401,451 |
Accrued income taxes | 39,811 | 22,693 |
Deferred revenue | 1,064,528 | 1,085,802 |
Short-term debt | 9,924 | 205,000 |
Total current liabilities | 1,614,109 | 1,714,946 |
Long-term accrued income taxes | 33,239 | 39,562 |
Long-term deferred revenue | 83,252 | 79,856 |
Long-term debt | 134,063 | 0 |
Other long-term liabilities | 252,027 | 210,855 |
Total liabilities | 2,116,690 | 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; 150,445 and 151,454 shares outstanding, respectively | 1,505 | 1,515 |
Capital in excess of par value | 1,622,429 | 1,644,675 |
Retained earnings | 2,143,873 | 1,947,585 |
Treasury stock, at cost: 6,817 and 5,811 shares, respectively | (426,208) | (294,052) |
Accumulated other comprehensive income (loss) | (65,979) | (104,577) |
Total Synopsys stockholders’ equity | 3,275,620 | 3,195,146 |
Non-controlling interest | 4,104 | 0 |
Total stockholders’ equity | 3,279,724 | 3,195,146 |
Total liabilities and stockholders’ equity | $ 5,396,414 | $ 5,240,365 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 5,165 | $ 3,201 |
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) | 150,445,000 | 151,454,000 |
Treasury stock, shares (in shares) | 6,817,000 | 5,811,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Revenue: | |||
Time-based products | $ 2,021,812 | $ 1,910,902 | $ 1,792,212 |
Upfront products | 338,204 | 248,137 | 197,325 |
Maintenance and service | 364,864 | 263,493 | 252,674 |
Total revenue | 2,724,880 | 2,422,532 | 2,242,211 |
Cost of revenue: | |||
Products | 413,203 | 346,825 | 303,633 |
Maintenance and service | 164,872 | 94,019 | 105,242 |
Amortization of intangible assets | 76,109 | 102,118 | 110,045 |
Total cost of revenue | 654,184 | 542,962 | 518,920 |
Gross margin | 2,070,696 | 1,879,570 | 1,723,291 |
Operating expenses: | |||
Research and development | 908,841 | 856,705 | 776,229 |
Sales and marketing | 549,248 | 502,368 | 474,407 |
General and administrative | 196,844 | 165,962 | 165,097 |
Amortization of intangible assets | 31,614 | 27,507 | 26,004 |
Restructuring charges | 36,586 | 9,633 | 15,088 |
Total operating expenses | 1,723,133 | 1,562,175 | 1,456,825 |
Operating income | 347,563 | 317,395 | 266,466 |
Other income (expense), net | 35,535 | 12,153 | 15,144 |
Income (loss) before provision for income taxes | 383,098 | 329,548 | 281,610 |
Provision (benefit) for income taxes | 246,535 | 62,722 | 55,676 |
Net income | $ 136,563 | $ 266,826 | $ 225,934 |
Net income per share: | |||
Basic (in USD per share) | $ 0.91 | $ 1.76 | $ 1.46 |
Diluted (in USD per share) | $ 0.88 | $ 1.73 | $ 1.43 |
Shares used in computing per share amounts: | |||
Basic (shares) | 150,457 | 152,017 | 154,957 |
Diluted (shares) | 154,874 | 154,721 | 158,065 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 136,563 | $ 266,826 | $ 225,934 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | 14,293 | 5,808 | (39,567) |
Change in unrealized gains (losses) on investments, net of tax of $0, for fiscal years 2017, 2016 and 2015 | (19) | 47 | (28) |
Cash flow hedges: | |||
Deferred gains (losses), net of tax of $(4,380), $4,372, and $7,107 for fiscal years 2017, 2016 and 2015, respectively | 20,760 | (25,767) | (18,614) |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(168), $(6,253), and $(6,212) for fiscal years 2017, 2016 and 2015, respectively | 3,564 | 20,710 | 14,923 |
Other comprehensive income (loss), net of tax effects | 38,598 | 798 | (43,286) |
Comprehensive income | $ 175,161 | $ 267,624 | $ 182,648 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Deferred gain (loss), tax | $ (4,380) | $ 4,372 | $ 7,107 |
Reclassification adjustment on deferred (gains) loss included in net income, tax | (168) | (6,253) | (6,212) |
Changes in unrealized gains (losses) on available-for-sale securities, tax | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Total Synopsys Stockholders’ Equity | Non-controlling Interest | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Oct. 31, 2014 | 155,965 | |||||||
Beginning balance at Oct. 31, 2014 | $ 3,056,170 | $ 1,560 | $ 1,614,603 | $ 1,551,592 | $ 3,056,170 | $ 0 | $ (49,496) | $ (62,089) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 225,934 | 225,934 | 225,934 | |||||
Other comprehensive income (loss), net of tax effects | $ (43,286) | (43,286) | (43,286) | |||||
Purchases of treasury stock (in shares) | (5,672) | (5,672) | ||||||
Purchases of treasury stock, value | $ (260,000) | $ (57) | 57 | (260,000) | (260,000) | |||
Equity forward contract | $ (20,000) | (20,000) | (20,000) | |||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 4,864 | 4,864 | ||||||
Common stock issued, net of shares withheld for employee taxes | $ 84,526 | $ 49 | (74,845) | (51,799) | 84,526 | 211,121 | ||
Stock-based compensation | 86,400 | 86,400 | 86,400 | |||||
Other | 4,245 | 4,245 | 4,245 | |||||
Balance (in shares) at Oct. 31, 2015 | 155,157 | |||||||
Ending balance at Oct. 31, 2015 | 3,133,989 | $ 1,552 | 1,610,460 | 1,725,727 | 3,133,989 | 0 | (98,375) | (105,375) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 266,826 | 266,826 | 266,826 | |||||
Other comprehensive income (loss), net of tax effects | $ 798 | 798 | 798 | |||||
Purchases of treasury stock (in shares) | (8,506) | (8,506) | ||||||
Purchases of treasury stock, value | $ (400,000) | $ (85) | 20,085 | (400,000) | (420,000) | |||
Common stock issued, net of shares withheld for employee taxes (in shares) | 4,803 | 4,803 | ||||||
Common stock issued, net of shares withheld for employee taxes | $ 98,668 | $ 48 | (80,735) | (44,968) | 98,668 | 224,323 | ||
Stock-based compensation | 97,583 | 97,583 | 97,583 | |||||
Other | (2,718) | (2,718) | (2,718) | |||||
Balance (in shares) at Oct. 31, 2016 | 151,454 | |||||||
Ending balance at Oct. 31, 2016 | 3,195,146 | $ 1,515 | 1,644,675 | 1,947,585 | 3,195,146 | 0 | (294,052) | (104,577) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Non-controlling interest | 0 | |||||||
Net income | 136,563 | 136,563 | 136,563 | |||||
Other comprehensive income (loss), net of tax effects | $ 38,598 | 38,598 | 38,598 | |||||
Purchases of treasury stock (in shares) | (5,413) | (5,413) | ||||||
Purchases of treasury stock, value | $ (380,000) | $ (54) | 54 | (380,000) | (380,000) | |||
Equity forward contract | $ (20,000) | (20,000) | (20,000) | |||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 4,404 | 4,404 | ||||||
Common stock issued, net of shares withheld for employee taxes | $ 90,530 | $ 44 | (110,976) | (46,382) | 90,530 | 247,844 | ||
Stock-based compensation | 108,294 | 108,294 | 108,294 | |||||
Balance (in shares) at Oct. 31, 2017 | 150,445 | |||||||
Ending balance at Oct. 31, 2017 | 3,279,724 | $ 1,505 | 1,622,429 | 2,143,873 | 3,275,620 | 4,104 | $ (426,208) | $ (65,979) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Retained earnings adjustment due to adoption of an accounting standard related to stock-based compensation | 106,489 | $ 382 | $ 106,107 | 106,489 | ||||
Non-controlling interest | $ 4,104 | $ 0 | $ 4,104 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Cash flow from operating activities: | |||
Net income | $ 136,563 | $ 266,826 | $ 225,934 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization and depreciation | 189,442 | 207,032 | 211,821 |
Stock-based compensation | 108,294 | 97,583 | 86,400 |
Allowance for doubtful accounts | 2,149 | 950 | 1,300 |
(Gain) loss on sale of investments | 8 | (18) | (109) |
Write-down of long-term investments | 1,300 | 0 | 0 |
Deferred income taxes | 123,052 | (14,037) | 36,883 |
Net changes in operating assets and liabilities, net of acquired assets and liabilities: | |||
Accounts receivable | 2,296 | (43,269) | (56,533) |
Prepaid and other current assets | (28,955) | (37,641) | (23,106) |
Other long-term assets | (40,236) | (3,770) | (16,259) |
Accounts payable and accrued liabilities | 137,631 | 18,977 | 27,568 |
Income taxes | 19,665 | 7,098 | (48,878) |
Deferred revenue | (16,644) | 86,904 | 50,139 |
Net cash provided by operating activities | 634,565 | 586,635 | 495,160 |
Cash flows from investing activities: | |||
Proceeds from sales and maturities of short-term investments | 295,633 | 156,350 | 109,173 |
Purchases of short-term investments | (155,098) | (168,712) | (238,902) |
Proceeds from sales of long-term investments | 839 | 1,785 | 0 |
Purchases of long-term investments | 0 | (1,002) | 0 |
Purchases of property and equipment | (70,328) | (66,909) | (86,965) |
Cash paid for acquisitions and intangible assets, net of cash acquired | (259,202) | (60,056) | (340,153) |
Capitalization of software development costs | (3,226) | (4,131) | (3,682) |
Other | 2,100 | 0 | 900 |
Net cash used in investing activities | (189,282) | (142,675) | (559,629) |
Cash flows from financing activities: | |||
Proceeds from credit facility | 320,000 | 185,000 | 460,000 |
Repayment of debt | (380,625) | (185,000) | (330,425) |
Issuances of common stock | 126,337 | 125,283 | 109,764 |
Payments for taxes related to net share settlement of equity awards | (36,730) | (26,562) | (24,860) |
Purchase of equity forward contract | (20,000) | 0 | (20,000) |
Purchases of treasury stock | (380,000) | (400,000) | (260,000) |
Other | (2,102) | (5,658) | 3,451 |
Net cash used in financing activities | (373,120) | (306,937) | (62,070) |
Effect of exchange rate changes on cash and cash equivalents | (427) | 3,409 | (23,035) |
Net change in cash and cash equivalents | 71,736 | 140,432 | (149,574) |
Cash and cash equivalents, beginning of year | 976,620 | 836,188 | 985,762 |
Cash and cash equivalents, end of year | 1,048,356 | 976,620 | 836,188 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes during the year: | 103,478 | 69,447 | 59,731 |
Interest payments during the year: | $ 7,095 | $ 3,708 | $ 2,710 |
Description of Business
Description of Business | 12 Months Ended |
Oct. 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 seeking to ensure the security and quality 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 semiconductor 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 security and quality of software code in a wide variety of industries, including electronics, financial services, media, automotive, medicine, energy and industrials. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 , 2016 , and 2015 were 52-week years ending on October 28, 2017, October 29, 2016, and October 31, 2015, respectively. For presentation purposes, the consolidated financial statements and accompanying notes refer to the closest calendar month end. Fiscal 2018 will be a 53-week year. Principles of Consolidation. The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates. To prepare financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP), management must make estimates and assumptions that affect the amounts reported in the 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. Foreign Currency Translation. The functional currency of the majority of the Company’s active foreign subsidiaries is the foreign subsidiary’s local currency. Assets and liabilities that are not denominated in the functional currency are remeasured into the functional currency with any related gain or loss recorded in earnings. The Company translates assets and liabilities of its non-U.S. dollar functional currency foreign operations into the U.S. dollar reporting currency at exchange rates in effect at the balance sheet date. The Company translates income and expense items of such foreign operations into U.S. dollars reporting currency at average exchange rates for the period. Accumulated translation adjustments are reported in stockholders’ equity, as a component of accumulated other comprehensive income (loss). Foreign Currency Contracts. The Company operates internationally and is exposed to potentially adverse movements in 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. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheet. 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. See Note 5. Financial Assets and Liabilities . Fair Values of Financial Instruments. The Company’s cash equivalents, short-term investments and foreign currency contracts are carried at fair value. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. Non-marketable equity securities are carried at cost, net of impairments. The Company performs periodic impairment analysis over these non-marketable equity securities. The carrying amount of the short-term debt approximates the estimated fair value. See Note 6. Fair Value Measures . Cash, Cash Equivalents and Short-term Investments . The Company classifies investments with original maturities of three months or less when acquired as cash equivalents. All of the Company’s short-term investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses included in stockholders’ equity 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. See Note 5. Financial Assets and Liabilities. Concentration of Credit Risk . Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign currency contracts, and accounts receivable from trade customers. The Company maintains cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U.S. and in various overseas locations. The Company sells its products worldwide primarily to customers in the global electronics market. The Company performs on-going credit evaluations of its customers’ financial condition and does not require collateral. The Company establishes reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented. Accounts Receivable, Net. The balances consist of accounts receivable billed and unbilled. Unbilled accounts receivable represent amounts recorded as revenue which will be invoiced within one year of the balance sheet date. The following table represents the components of accounts receivable, net: October 31, 2017 2016 (in thousands) Accounts receivable $ 393,229 $ 394,314 Unbilled accounts receivable 63,080 47,760 Total accounts receivable 456,309 442,074 Less allowance for doubtful accounts (5,165 ) (3,201 ) Total accounts receivable, net $ 451,144 $ 438,873 Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains allowances for doubtful accounts to reduce the Company’s receivables to their estimated net realizable value. The Company provides a general reserve on all accounts receivable based on a review of customer accounts. The following table presents the changes in the allowance for doubtful accounts: Fiscal Year Balance at Beginning of Period Provisions Write-offs(1) Balance at End of Period (in thousands) 2017 $ 3,201 $ 2,149 $ (185 ) $ 5,165 2016 $ 2,561 $ 950 $ (310 ) $ 3,201 2015 $ 2,026 $ 1,300 $ (765 ) $ 2,561 (1) Balances written off, net of recoveries. Income Taxes. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Assets, excluding land, are depreciated using the straight-line method over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over the remaining term of the lease or the economic useful life of the asset, whichever is shorter. Depreciation expenses were $82.8 million , $73.8 million and $71.1 million in fiscal 2017 , 2016 and 2015 , respectively. Repair and maintenance costs are expensed as incurred and such costs were $40.6 million , $38.8 million and $32.3 million in fiscal 2017 , 2016 and 2015 , respectively. A summary of property and equipment, at cost less accumulated depreciation and amortization, as of October 31, 2017 and 2016 is as follows: October 31, 2017 2016 (in thousands) Computer and other equipment $ 540,257 $ 486,109 Buildings 68,877 68,194 Furniture and fixtures 54,882 51,589 Land 20,414 20,414 Leasehold improvements 153,619 136,773 838,049 763,079 Less accumulated depreciation and amortization(1) (572,035 ) (506,044 ) Total $ 266,014 $ 257,035 (1) Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets. The useful lives of depreciable assets are as follows: Useful Life in Years Computer and other equipment 3-5 Buildings 30 Furniture and fixtures 5 Leasehold improvements (average) 5 Goodwill. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment annually as of October 31 or more frequently if facts and circumstances warrant a review. The Company determined that it is a single reporting unit for the purpose of goodwill impairment tests. For purposes of assessing the impairment of goodwill, the Company estimates the value of the reporting unit using its market capitalization as the best evidence of fair value. This fair value is then compared to the carrying value of the reporting unit. During fiscal 2017 , 2016 and 2015 , there were no indicators of impairment to goodwill. Intangible Assets. Intangible assets consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, covenants not to compete, capitalized software, and in-process research and development. These intangible assets are acquired through business combinations, direct purchases, or internally developed capitalized software. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from one to ten years. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment and intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such asset group will be recovered through the undiscounted future cash flow. If the undiscounted future cash flow is less than the carrying amount of the asset group, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the asset group. The Company had no impairments of any long-lived assets in fiscal 2017 , 2016 or 2015 . Restructuring Charges. During fiscal 2017, the Company recorded $36.6 million of restructuring charges for severance and benefits due to involuntary and voluntary employee termination actions. The restructuring actions were undertaken to position the Company for future growth, reallocate resources to priority areas, and to a lesser extent, eliminate operational redundancy. These charges consist primarily of severance and retirement benefits. As of October 31, 2017, there was a $17.5 million outstanding balance remaining in accounts payable and accrued liabilities as payroll and related benefits in the consolidated balance sheets. Payments under the 2017 restructuring plans are expected to be completed by the end of the second quarter of fiscal 2018. During fiscal 2016, the Company recorded $9.6 million of restructuring charges for severance and benefits due to involuntary employee terminations, of which $3.9 million was paid in fiscal 2016. As of October 31, 2016, there was a $5.7 million outstanding balance remaining in accounts payable and accrued liabilities as payroll and related benefits in the consolidated balance sheets. The remaining balance was paid in fiscal 2017. Accounts Payable and Accrued Liabilities. The balance consists of: October 31, 2017 2016 (in thousands) Payroll and related benefits $ 382,773 $ 321,430 Other accrued liabilities 97,119 66,276 Accounts payable 19,954 13,745 Total $ 499,846 $ 401,451 Other Long-term Liabilities. The balance consists of: October 31, 2017 2016 (in thousands) Deferred compensation liability (See Note 10 ) $ 197,542 $ 163,185 Other long-term liabilities 54,485 47,670 Total $ 252,027 $ 210,855 Other Comprehensive Income (Loss). Other comprehensive income (loss) (OCI) includes all changes in equity during a period, such as accumulated net translation adjustments, unrealized gain (loss) on certain foreign currency forward contracts that qualify as cash flow hedges, reclassification adjustments related to cash flow hedges and unrealized gain (loss) on investments. See Note 8 . Accumulated Other Comprehensive Income (Loss) . Revenue Recognition. The Company generates revenue from the sale of products that include software licenses, maintenance and services and to a lesser extent, hardware products. Software license revenue consists of fees associated with the licensing of the Company's software. Maintenance and service revenue consists of maintenance fees associated with perpetual licenses and professional services fees. Hardware revenue consists of sales of Field Programmable Gate Array (FPGA)-based emulation and prototyping products. Most of the Company's customer arrangements are complex, involving hundreds of products and various license rights, bundled with post-contract customer support and additional meaningful rights that provide a complete end-to-end solution to the customer. Throughout the contract, the Company's customers are typically using a myriad of products to complete each phase of a chip design and are concurrently working on multiple chip designs, or projects, in different phases of the design. During this time, the customer looks to the Company to release state-of-the-art technology to address requested enhancements to the Company's tools to meet customer specifications, to provide support at each stage of the customer’s design, including the final manufacturing of the chip (the tape out stage), and other important services. With respect to software licenses, the Company utilizes primarily two license types: • Technology Subscription Licenses (TSLs). TSLs are time-based licenses for a finite term, and generally provide the customer limited rights to receive, or to exchange certain quantities of licensed software for, unspecified future technology. The majority of the Company's arrangements are TSLs due to the nature of the business and customer requirements. In addition to the licenses, the arrangements also include: post-contract customer support, which includes providing frequent updates and upgrades to maintain the utility of the software due to rapid changes in technology; other intertwined services such as multiple copies of the tools; assisting the Company's customers in applying the Company's technology in their development environment; and rights to remix licenses for other licenses. • Perpetual licenses. Perpetual licenses continue as long as the customer renews maintenance plus an additional 20 years. Perpetual licenses do not provide the customer any rights to receive, or to exchange licensed software for, unspecified future technology. Customers purchase maintenance separately for the first year and may renew annually. For the two software license types, the Company recognizes revenue as follows: • TSLs. The Company typically recognizes revenue from TSL fees ratably over the term of the license period, or as customer installments become due and payable, whichever is later. Revenue attributable to TSLs is reported as “time-based products revenue” in the consolidated statements of operations. • Perpetual licenses. The Company recognizes revenue from perpetual licenses in full upon shipment of the software if payment terms require the customer to pay at least 75% of the license fee and 100% of the maintenance fee within one year from shipment and all other revenue recognition criteria are met. Revenue attributable to these perpetual licenses is reported as “upfront products revenue” in the consolidated statements of operations. For perpetual licenses in which less than 75% of the license fee and 100% of the maintenance fee is payable within one year from shipment, the Company recognizes revenue as customer installments become due and payable. Such revenue is reported as “time-based products revenue” in the consolidated statements of operations. The Company's maintenance and service revenue primarily consists of maintenance fees associated with perpetual licenses and hardware products, and professional services fees. The Company recognizes revenue from maintenance arrangements ratably over the maintenance period to the extent cash has been received or fees become due and payable, and recognizes revenue from professional services and training fees as such services are performed and accepted by the customers as needed. Revenue attributable to maintenance, professional services and training is reported as “maintenance and service revenue” in the consolidated statements of operations. Hardware revenue consists of sales of FPGA-based emulation and prototyping products. The Company recognizes revenue from sales of hardware products in full upon shipment if all other revenue recognition criteria are met. Revenue attributable to these sales is reported as “upfront products revenue” in the consolidated statements of operations. Infrequently, the Company enters into certain license arrangements wherein licenses are provided for a finite term without any other services or rights, including rights to receive, or to exchange licensed software for, unspecified future technology. The Company recognizes revenue from these term licenses in full upon shipment of the software and when all other revenue recognition criteria are met. The Company also enters into arrangements in which portions of revenue are contingent upon the occurrence of uncertain future events, for example, royalty arrangements. The Company refers to this revenue as “contingent revenue.” Contingent revenue is recognized if and when the event that removes the contingency occurs. Such revenue is reported as “time-based products revenue” in the consolidated statements of operations. These arrangements are not material to the Company’s total revenue. The Company infrequently enters into multiple-element arrangements that contain both software and non-software deliverables such as hardware. The Company has determined that the software and non-software deliverables in the Company’s contracts are separate units of accounting. The Company recognizes revenue for the separate units of accounting when all revenue recognition criteria are met. Revenue allocated to hardware units of accounting is recognized upon shipment when all other revenue recognition criteria are met. Revenue allocated to software units of accounting is recognized depending on the software license type (TSL or perpetual license). Such arrangements have not had a material effect on the Company’s consolidated financial statements and are not expected to have a material effect in future periods. The Company also enters into arrangements to deliver software products, either alone or together with other products or services, that require significant modification or customization of the software. The Company accounts for such arrangements using the percentage of completion method as the Company has the ability to make reasonably dependable estimates that relate to the extent of progress toward completion, contract revenues and costs. The Company measures the progress towards completion using the labor hours incurred to complete the project. Revenue attributable to these arrangements is reported as “maintenance and service revenue” in the consolidated statements of operations. The Company determines the fair value of each element in multiple element software arrangements that only contain software and software-related deliverables based on vendor-specific objective evidence (VSOE). The Company limits assessment of VSOE of fair value for each element to the price charged when such element is sold separately. The Company has analyzed all of the elements included in multiple-element software arrangements and has determined that the Company has sufficient VSOE to allocate revenue to the maintenance components of the Company’s perpetual license products and to professional services. Accordingly, assuming all other revenue recognition criteria are met, the Company recognizes license revenue from perpetual licenses upon delivery using the residual method, recognizes revenue from maintenance ratably over the maintenance term, and recognizes revenue from professional services as services are performed and accepted by the customer. With respect to TSL arrangements, due to the complexity of the tools, the complexity of the arrangement terms and intertwined services, the license, maintenance and other services are not separable and are considered as a combined unit. Additionally, the Company does not have sufficient VSOE of fair value to allocate the fee between these services. Therefore, the Company recognizes revenue from TSLs ratably over the term of the license, assuming all other revenue recognition criteria are met. Revenue recognition involves certain judgments, specifically, in connection with each transaction involving the Company’s products, the Company must evaluate whether: (1) persuasive evidence of an arrangement exists, (2) delivery of software or services has occurred, (3) the fee for such software or services is fixed or determinable, and (4) collectability is probable. All four of these criteria must be met in order for the Company to recognize revenue with respect to a particular arrangement. The Company applies these revenue recognition criteria as follows: • Persuasive Evidence of an Arrangement Exists. Prior to recognizing revenue on an arrangement, the Company’s customary policy is to have a written contract, signed by both the customer and by the Company or a purchase order from those customers that have previously negotiated a standard end-user license arrangement or purchase agreement. • Delivery Has Occurred. The Company delivers its products to its customers electronically or physically. For electronic deliveries, delivery occurs when the Company provides access to its customers to take immediate possession of the software through downloading it to the customer’s hardware. For physical deliveries, the standard transfer terms are typically Freight on Board (FOB) shipping point. The Company generally ships its products or license keys promptly after acceptance of customer orders. However, a number of factors can affect the timing of product shipments and, as a result, timing of revenue recognition, including the delivery dates requested by customers and the Company's operational capacity to fulfill product orders at the end of a fiscal quarter. • The Fee is Fixed or Determinable. The Company’s determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. The Company’s standard payment terms for perpetual licenses require 75% or more of the license fee and 100% of the maintenance fee to be paid within one year. If the arrangement includes these terms, the Company regards the fee as fixed or determinable, and recognizes all license revenue under the arrangement in full upon delivery (assuming all other revenue recognition criteria are met). If the arrangement does not include these terms, the Company does not consider the fee to be fixed or determinable and generally recognizes revenue when customer installments are due and payable. In the case of a TSL, because of the right to exchange products or receive unspecified future technology and because VSOE for maintenance services does not exist for a TSL, the Company recognizes revenue ratably over the term of the license, but not in advance of when customers’ installments become due and payable. • Collectability is Probable. The Company judges collectability of the arrangement fees on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a history of successful collection. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position and ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is not probable under a particular arrangement based upon its credit review process or the customer’s payment history, the Company recognizes revenue under that arrangement as customer payments are actually received. Warranties and Indemnities. The Company generally warrants its products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for software products and for up to six months for hardware systems. In certain cases, the Company also provides its customers with limited indemnification with respect to claims that their use of the Company’s software products infringes on United States patents, copyrights, trademarks or trade secrets. The Company is unable to estimate the potential impact of these commitments on the future results of operations. To date, the Company has not been required to pay any material warranty claims. Net Income Per Share. The Company computes basic income per share by dividing net income available to common shareholders 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: Year Ended October 31, 2017 2016 2015 (in thousands) Numerator: Net income $ 136,563 $ 266,826 $ 225,934 Denominator: Weighted average common shares for basic net income per share 150,457 152,017 154,957 Dilutive effect of common share equivalents from equity-based compensation 4,417 2,704 3,108 Weighted average common shares for diluted net income per share 154,874 154,721 158,065 Net income per share: Basic $ 0.91 $ 1.76 $ 1.46 Diluted $ 0.88 $ 1.73 $ 1.43 Anti-dilutive employee stock-based awards excluded(1) 345 1,971 1,363 (1) These stock options and unvested restricted stock units 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. |
Business Combinations
Business Combinations | 12 Months Ended |
Oct. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Fiscal 2017 Acquisitions During fiscal 2017, the Company completed acquisitions with an aggregated total purchase consideration of $259.7 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 $178.5 million of goodwill, of which $11.9 million is deductible for tax purposes, and $95.7 million of acquired identifiable intangible assets valued using the income or cost method. 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 $6.5 million were expensed as incurred in the 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 the acquisitions during the fourth quarter of fiscal 2017 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 | 12 Months Ended |
Oct. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill: (in thousands) Balance at October 31, 2015 $ 2,471,241 Additions 39,172 Adjustments 435 Effect of foreign currency translation 7,397 Balance at October 31, 2016 $ 2,518,245 Additions 178,545 Effect of foreign currency translation 10,184 Balance at October 31, 2017(1) $ 2,706,974 (1) There is no impairment of goodwill for periods presented. Intangible assets as of October 31, 2017 consist of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 647,975 $ 526,796 $ 121,179 Customer relationships 278,811 166,886 111,925 Contract rights intangible 174,615 172,178 2,437 Trademarks and trade names 25,329 17,401 7,928 In-process research and development (IPR&D)(2) 6,600 — 6,600 Capitalized software development costs 32,868 29,094 3,774 Total $ 1,166,198 $ 912,355 $ 253,843 (2) IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. Intangible assets as of October 31, 2016 consist 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: Year Ended October 31, 2017 2016 2015 (in thousands) Core/developed technology $ 65,916 $ 85,331 $ 76,674 Customer relationships 27,340 24,594 23,104 Contract rights intangible 10,886 16,543 33,350 Trademarks and trade names 3,580 3,156 2,900 Capitalized software development costs(3) 3,986 3,697 3,653 Total $ 111,708 $ 133,321 $ 139,681 (3) Amortization of capitalized software development costs is included in cost of products revenue in the consolidated statements of operations. The following table presents the estimated future amortization of intangible assets: Fiscal Year (in thousands) 2018 $ 88,907 2019 62,940 2020 44,938 2021 26,708 2022 16,648 2023 and thereafter 7,102 IPR&D(4) 6,600 Total $ 253,843 (4) IPR&D assets are amortized over their useful lives upon completion or are written off upon abandonment. |
Financial Assets and Liabilitie
Financial Assets and Liabilities | 12 Months Ended |
Oct. 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 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. During the fourth quarter of fiscal 2017, the Company sold its investments in available-for-sale securities. As of October 31, 2017 , the balances of our cash equivalents and non-marketable equity securities investments are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 560,594 $ — $ — $ — $ 560,594 Total: $ 560,594 $ — $ — $ — $ 560,594 Other long-term assets: Non-marketable equity securities $ 7,826 $ — $ — $ — $ 7,826 Total: $ 7,826 $ — $ — $ — $ 7,826 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and investments. As of October 31, 2016 , the balances of our cash equivalents and non-marketable equity securities investments 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 Other long-term assets: Non-marketable equity securities 9,756 — — — 9,756 Total: 9,756 — — — 9,756 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and investments. Non-marketable equity securities. The Company’s strategic investment portfolio consists of non-marketable equity securities in privately held companies. The securities accounted for as cost method investments are reported at cost, net of impairment losses. Securities accounted for as 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 consolidated financial statements at fair value and provides qualitative and quantitative disclosures about such derivatives. The Company operates internationally and is exposed to potentially adverse movements in foreign currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately 1 month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. The duration of forward contracts ranges from approximately one month to 22 months , the majority of which are short-term. The Company does not use foreign currency forward contracts for speculative or trading purposes. The Company enters into foreign exchange forward contracts with high credit quality financial institutions that are rated ‘A’ or above and to date has not experienced nonperformance by counterparties. Further, the Company anticipates continued performance by all counterparties to such agreements. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the 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 (loss) (OCI), in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. We expect a majority of the hedge balance in OCI to be reclassified to the statements of operations within the next twelve months. Hedging effectiveness is evaluated monthly using spot rates, with any gain or loss caused by hedging ineffectiveness recorded in other income (expense), net. The premium/discount component of the forward contracts is recorded to other income (expense), net, and is not included in evaluating hedging effectiveness. Non-designated Hedging Activities The Company’s foreign exchange forward contracts that are used to hedge non-functional currency denominated balance sheet assets and liabilities are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the underlying assets and liabilities, which are also recorded in other income (expense), net. The duration of the forward contracts for hedging the Company’s balance sheet exposure is approximately one month . The Company also has certain foreign exchange forward contracts for hedging certain international revenues and expenses that are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the foreign currency in operating income. The duration of these forward contracts is usually less than one year. The overall goal of the Company’s hedging program is to minimize the impact of currency fluctuations on its net income over its fiscal year. The effects of the changes in the fair values of non-designated forward contracts for fiscal years 2017 , 2016 and 2015 are summarized as follows: October 31, 2017 2016 2015 (in thousands) Gain (loss) recorded in other income (expense), net $ 1,359 $ (4,533 ) $ (5,554 ) The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: As of October 31, 2017 As of October 31, 2016 (in thousands) Total gross notional amount $ 955,139 $ 758,246 Net fair value $ 14,052 $ (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 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 October 31, 2017 Other current assets $ 16,582 $ 15 Accrued liabilities $ 2,485 $ 59 As of October 31, 2016 Other current assets $ 4,625 $ 27 Accrued liabilities $ 19,910 $ 101 The following table represents the income statement 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) Fiscal year ended October 31, 2017 Foreign exchange contracts Revenue $ 7,582 Revenue $ (2,759 ) Foreign exchange contracts Operating expenses 13,346 Operating expenses (805 ) Total $ 20,928 $ (3,564 ) Fiscal year ended October 31, 2016 Foreign exchange contracts Revenue $ (14,580 ) Revenue $ (8,585 ) Foreign exchange contracts Operating expenses (11,259 ) Operating expenses (12,125 ) Total $ (25,839 ) $ (20,710 ) Fiscal year ended October 31, 2015 Foreign exchange contracts Revenue $ 3,982 Revenue $ 9,270 Foreign exchange contracts Operating expenses (22,605 ) Operating expenses (24,193 ) Total $ (18,623 ) $ (14,923 ) 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) income, net: Foreign exchange contracts Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)(1) Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2) (in thousands) Fiscal year ended October 31, 2017 $ 311 $ 3,018 Fiscal year ended October 31, 2016 $ 1,468 $ 6,058 Fiscal year ended October 31, 2015 $ 878 $ 3,704 (1) The ineffective portion includes forecast inaccuracies. (2) The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. Other Commitments - Credit and Term Loan Facilities 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 maintain a minimum interest coverage ratio, as well as other non-financial covenants. As of October 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. As of October 31, 2017 , the Company had a $144.0 million outstanding balance, net of debt issuance costs, under the Term Loan, of which $134.1 million is classified as long-term liabilities, and no outstanding balance under the Revolver. Outstanding principal payments under the Term Loan are due as follows: Fiscal year (in thousands) 2018 10,313 2019 14,062 2020 17,813 2021 27,187 2022 75,000 Total $ 144,375 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, all of which are considered short-term liabilities. Borrowings bear interest at a floating rate based on a margin over the Company’s choice of market observable base rates as defined in the Credit Agreement. As of October 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. Subsequent to fiscal year 2017, the Company drew down $450.0 million under the Revolver and the total outstanding balance of the Revolver as of December 13, 2017 is $450.0 million . 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. |
Fair Value Measures
Fair Value Measures | 12 Months Ended |
Oct. 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 5. Financial Assets and Liabilities. Assets/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 October 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 $ 560,594 $ 560,594 $ — $ — Prepaid and other current assets: Foreign currency derivative contracts 16,596 — 16,596 — Other long-term assets: Deferred compensation plan assets 197,542 197,542 — — Total assets $ 774,732 $ 758,136 $ 16,596 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 2,544 $ — $ 2,544 $ — Other long-term liabilities: Deferred compensation plan liabilities 197,542 197,542 — — Total liabilities $ 200,086 $ 197,542 $ 2,544 $ — Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2016 : Description Total Fair Value Measurement Using 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 recorded $1.3 million of other-than-temporary impairment during fiscal 2017 and did not recognize any impairment during fiscal 2016 and 2015 . 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 October 31, 2017 Significant Unobservable Inputs (Level 3) Total (losses) for Fiscal 2017 (in thousands) Non-marketable equity securities $ — $ — $ (1,300 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company leases certain of its domestic and foreign facilities and certain office equipment under non-cancelable lease agreements. The lease agreements generally require the Company to pay property taxes, insurance, maintenance and repair costs. Rent expenses were $68.1 million , $ 63.9 million and $67.6 million in fiscal 2017 , 2016 and 2015 , respectively. The Company charges operating lease payments to expense using the straight-line method. The Company subleases portions of its facilities and records sublease payments as a reduction of rent expense. The Company's principal offices are located in two office buildings in Mountain View, California. The buildings together provide approximately 341,000 square feet. This space is leased through August 2030, and the Company has two options to extend the lease term, the first to extend the term by ten years, followed by a second option to extend by approximately nine additional years. As of October 31, 2017 , anticipated future minimum lease payments on all non-cancellable operating leases with a term in excess of one year, net of sublease income are as follows: Minimum Lease Payments Sublease Income Net (in thousands) Fiscal Year 2018 $ 56,879 $ 2,977 $ 53,902 2019 51,350 3,208 48,142 2020 39,594 3,050 36,544 2021 31,797 2,184 29,613 2022 27,438 1,681 25,757 Thereafter 147,271 566 146,705 Total $ 354,329 $ 13,666 $ 340,663 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. Mentor also filed a patent infringement lawsuit against Nihon EVE K.K. in Tokyo District Court in 2010 alleging that certain ZeBu products infringe Mentor’s Japanese Patent No. P3,588,324. The litigation matter in Japan no longer exists, as the Japan IP High Court affirmed the Tokyo District Court ruling that such products did not infringe Mentor's patent. 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 year 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. Due to the affirmation of the verdict by the Federal Circuit, the Company 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 year ended October 31, 2017. Proceedings on these patents are resuming 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 September 1, 2017, the Federal Circuit denied the Company's petition for rehearing. On November 30, 2017, the Company filed a petition for certiorari with the U.S. Supreme Court seeking review of the Federal Circuit’s ruling. 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 sought review of the Federal Circuit’s ruling in the U.S. Supreme Court, and on October 2, 2017, the U.S. Supreme Court denied the Company's petition. 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 July 28, 2017, cross-motions for summary judgment were argued, and the Company’s suit challenging the PTO’s decision not to reexamine claims 1 and 28 was dismissed on November 15, 2017. The ex parte reexamination is ongoing. 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 and on October 23, 2017 rejected the challenged claims of the ‘882 patent. 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 11. Income Taxes. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Oct. 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: Year Ended October 31, 2017 2016 (in thousands) Cumulative currency translation adjustments $ (70,407 ) $ (84,700 ) Unrealized gain (loss) on derivative instruments, net of taxes 4,428 (19,896 ) Unrealized gain (loss) on available-for-sale securities, net of taxes — 19 Total accumulated other comprehensive income (loss) $ (65,979 ) $ (104,577 ) The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: Year Ended October 31, 2017 2016 2015 (in thousands) Reclassifications from accumulated other comprehensive income (loss) into consolidated statement of operations: Gain (loss) on cash flow hedges, net of taxes Revenues $ (2,759 ) $ (8,585 ) $ 9,270 Operating expenses (805 ) (12,125 ) (24,193 ) Gain (loss) on available-for-sale securities Other income (expense) (8 ) 18 41 Total reclassifications into net income $ (3,572 ) $ (20,692 ) $ (14,882 ) Amounts reclassified in fiscal 2017 , 2016 and 2015 primarily consisted of gains (losses) from the Company’s cash flow hedging activities. See Note 5. Financial Assets and Liabilities. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Oct. 31, 2017 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program The Company’s Board of Directors (Board) previously approved a stock repurchase program pursuant to which the Company was authorized to purchase up to $500.0 million of its common stock, and has periodically replenished the stock repurchase program to such amount. The Board replenished the stock repurchase program up to $500.0 million on 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 October 31, 2017 , $400 million remained available for further repurchases under the program . In December 2016, the Company entered into an accelerated share repurchase agreement (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. In September 2017, the Company entered into an accelerated share repurchase agreement (the September 2017 ASR) to repurchase an aggregate of $100.0 million of the Company’s common stock. Pursuant to the September 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 November 2017. Total shares purchased under the September 2017 ASR were approximately 1.2 million shares, at an average purchase price of $83.80 per share. The following table summarizes stock repurchase activities as well as the reissuance of treasury stock for employee stock-based compensation purposes: Year Ended October 31, 2017 2016 2015 (in thousands, except per share price) Shares repurchased(1) 5,413 8,506 5,672 Average purchase price per share(1) $ 70.21 $ 49.37 $ 45.84 Aggregate purchase price(1) $ 380,000 $ 420,000 $ 260,000 Reissuance of treasury stock 4,404 4,803 4,864 (1) Does not include the 181,988 shares and $20.0 million equity forward contract, respectively, from the September 2017 ASR settled in November 2017. In December 2017, the Company entered into two simultaneous accelerated share repurchase agreements (the December 2017 ASRs) to repurchase an aggregate of $200.0 million of the Company's common stock. Pursuant to the December 2017 ASRs, the Company made a prepayment of $200.0 million to receive initial share deliveries of shares valued at $160.0 million . The remaining balance of $40.0 million is anticipated to be settled on or before May 16, 2018, upon completion of the repurchase. Under the terms of the December 2017 ASRs, the specific number of shares that the Company ultimately repurchases will be based on the volume-weighted average share price of our common stock during the repurchase period, less a discount. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Oct. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employee Stock Purchase Plan Under the Company’s Employee Stock Purchase Plan (ESPP), employees are granted the right to purchase shares of common stock at a price per share that is 85% of the lesser of the fair market value of the shares at (1) the beginning of a rolling two year offering period or (2) the end of each semi-annual purchase period, subject to a plan limit on the number of shares that may be purchased in a purchase period. On March 29, 2016, the Company’s stockholders approved an amendment to the ESPP to increase the number of shares of common stock authorized for issuance under the plan by 5.0 million shares. During fiscal 2017 , 2016 and 2015 , the Company issued 1.6 million , 1.6 million , and 1.7 million shares, respectively, under the ESPP at average per share prices of $40.85 , $37.77 and $31.55 , respectively. As of October 31, 2017 , 7.1 million shares of common stock were reserved for future issuance under the ESPP. Equity Compensation Plans 2006 Employee Equity Incentive Plan. On April 25, 2006, the Company’s stockholders approved the 2006 Employee Equity Incentive Plan (2006 Employee Plan), which provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights and other forms of equity compensation, including performance stock awards and performance cash awards, as determined by the plan administrator. The terms and conditions of each type of award are set forth in the 2006 Employee Plan. Options granted under this plan have a contractual term of seven years and generally vest over four years. On April 6, 2017, the Company's stockholders approved an amendment to increase the number of shares of common stock reserved for future issuance under the 2006 Employee Plan by 5.0 million shares. As of October 31, 2017 , an aggregate of 6.1 million stock options and 3.8 million restricted stock units were outstanding, and 12.6 million shares were available for future issuance under the 2006 Employee Plan. 2005 and 2017 Non-Employee Directors Equity Incentive Plans. On April 6, 2017, the Company’s stockholders approved the 2017 Non-Employee Directors Equity Incentive Plan (2017 Directors Plan). In connection with stockholder approval of the 2017 Directors Plan, the 2005 Non-Employee Directors Equity Incentive Plan (2005 Directors Plan) was terminated as of April 6, 2017, and no awards can be granted under the 2005 Directors Plan after that date. Under the 2005 Directors Plan, the Company granted options to purchase 188,709 shares of common stock, which vest over a period of three to four years, with an aggregate grant date fair value of $6.7 million , to non-employee directors during fiscal 2007, fiscal 2011, fiscal 2015, and fiscal 2017. As of October 31, 2017 , 18,354 shares of restricted stock were unvested and 107,207 stock options were outstanding under the 2005 Directors Plan. The 2017 Directors Plan provides for equity awards to non-employee directors in the form of stock options, restricted stock units, restricted stock or a combination thereof. The Company’s stockholders have approved an aggregate of 0.45 million shares of common stock reserved under the 2017 Directors Plan. As of October 31, 2017 , the Company has issued an aggregate of 19,624 shares of restricted stock awards with an aggregate grant date fair value of approximately $1.4 million under the 2017 Directors Plan. Restricted stock awards vest over a period of three years. As of October 31, 2017 , 19,624 shares of restricted stock were unvested and no stock options were outstanding, and a total of 430,376 shares of common stock were reserved for future grant under the 2017 Directors Plan. Other Assumed Stock Plans through Acquisitions. In connection with the Company’s acquisitions in fiscal 2008, fiscal 2010, fiscal 2012, fiscal 2014, fiscal 2015, and fiscal 2017, the Company assumed certain outstanding stock awards of acquired companies. If these assumed equity awards are canceled, forfeited or expire unexercised, the underlying shares do not become available for future grant. As of October 31, 2017 , 0.4 million shares of the Company’s common stock remained subject to such outstanding assumed equity awards. Restricted Stock Units. Since fiscal 2007, restricted stock units are granted under the 2006 Employee Plan as part of the Company’s new hire and annual incentive compensation program. Restricted stock units are valued based on the closing price of the Company’s common stock on the grant date. In general, restricted stock units vest over three to four years and are subject to the employee's continuing service with the Company. For each restricted stock unit granted under the 2006 Employee Plan, a share reserve ratio is applied for the purpose of determining the remaining number of shares reserved for future grants under the plan. On April 3, 2012, the Company's stockholders approved an amendment of the 2006 Employee Plan to prospectively change the share reserve ratio from 1.25 to 1.50 . On April 2, 2015, the stockholders approved amending the share reserve ratio from 1.50 to 1.60 . On March 29, 2016, the stockholders approved amending the share reserve ratio from 1.60 to 1.70 . The following table contains information concerning activities related to restricted stock units: Restricted Stock Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life (In Years) Aggregate Fair Value (in thousands, except per share and life amounts) Balance at October 31, 2014 3,947 $ 35.29 1.53 Granted 1,707 $ 48.13 Vested(1) (1,522 ) $ 33.05 $ 73,677 Forfeited (204 ) $ 37.68 Balance at October 31, 2015 3,928 $ 41.61 1.54 Granted 1,765 $ 49.59 Vested(1) (1,547 ) $ 38.33 $ 79,558 Forfeited (111 ) $ 43.12 Balance at October 31, 2016 4,035 $ 46.37 1.56 Granted 1,584 $ 70.49 Vested(1) (1,536 ) $ 43.53 $ 110,103 Forfeited (240 ) $ 49.36 Balance at October 31, 2017 3,843 $ 57.26 1.54 (1) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. The following table contains additional information concerning activities related to stock options and restricted stock units under all equity plans, other than shares available for grant under the 2017 Directors Plan: Available for Grant(3) Options(2) Options Outstanding Weighted- Average Exercise Price per Share Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (in thousands, except per share and life amounts) Balance at October 31, 2014 12,155 7,750 $ 29.81 4.66 $ 86,537 Options granted (1,908 ) 1,942 $ 45.14 Options assumed(2) 133 $ 38.97 Options exercised (2,125 ) $ 26.06 Options canceled/forfeited/expired 230 (411 ) $ 33.51 Restricted stock units granted(1) (2,707 ) Restricted stock units forfeited(1) 313 Additional shares reserved 3,800 Balance at October 31, 2015 11,883 7,289 $ 34.94 4.67 $ 109,627 Options granted (1,685 ) 1,685 $ 47.39 Options exercised (2,154 ) $ 30.06 Options canceled/forfeited/expired 33 (65 ) $ 35.31 Restricted stock units granted(1) (2,967 ) Restricted stock units forfeited(1) 180 Additional shares reserved 3,800 Balance at October 31, 2016 11,244 6,755 $ 39.59 4.65 $ 126,850 Options granted (1,505 ) 1,536 $ 68.18 Options assumed(2) 154 $ 34.52 Options exercised (1,770 ) $ 34.56 Options canceled/forfeited/expired 129 (145 ) $ 47.17 Restricted stock units granted(1) (2,694 ) Restricted stock units forfeited(1) 409 Additional shares reserved 5,000 Balance at October 31, 2017 12,583 6,530 $ 46.83 4.60 $ 263,555 Vested and expected to vest as of October 31, 2017 6,530 $ 46.83 4.60 $ 263,555 Exercisable at October 31, 2017 3,252 $ 39.72 3.64 $ 154,357 (1) These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above. (2) The Company assumed options outstanding under various plans through acquisitions. (3) Excluding shares reserved for future issuance under the 2017 Directors Plan. The aggregate intrinsic value in the preceding table represents the pretax intrinsic value based on stock options with an exercise price less than the Company’s closing stock price of $87.19 as of October 31, 2017 . The pretax intrinsic value of options exercised and their average exercise prices were: Year Ended October 31, 2017 2016 2015 (in thousands, except per share price) Intrinsic value $ 67,089 $ 51,408 $ 44,104 Average exercise price per share $ 34.56 $ 30.06 $ 26.06 Restricted stock award activities during fiscal 2017 under the 2005 Directors Plan and 2017 Directors Plan are summarized as follows: Restricted Shares Weighted-Average Grant Date Fair Value (in thousands, except per share) Unvested at October 31, 2016 43 $ 45.97 Granted 20 $ 71.34 Vested (22 ) $ 44.33 Forfeited (3 ) $ 47.65 Unvested at October 31, 2017 38 $ 59.89 Valuation and Expense of Stock-Based Compensation. The Company estimates the fair value of stock-based awards in the form of stock options and employee stock purchase rights under employee stock purchase plans on the grant date. The value of awards expected to vest is recognized as expense over the applicable service periods. The Company uses the straight-line attribution method to recognize stock-based compensation costs over the service period of the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options, stock appreciation rights and employee stock purchase plan awards . The Black-Scholes option-pricing model incorporates various subjective assumptions including expected volatility, expected term and interest rates. The expected volatility for both stock options and stock purchase rights under the ESPP is estimated by a combination of implied volatility for publicly traded options of the Company’s common stock with a term of six months or longer and the historical stock price volatility over the estimated expected term of the Company’s stock-based awards. The expected term of the Company’s stock-based awards is based on historical experience. The assumptions presented in the following table were used to estimate the fair value of stock options and employee stock purchase rights granted under the Company’s stock plans or stock plans assumed from acquisitions: Year Ended October 31, 2017 2016 2015 Stock Options Expected life (in years) 4.1 4.1 4.3 Risk-free interest rate 1.73% - 2.06% 1.06% - 1.63% 1.24% - 1.58% Volatility 18.51% - 19.67% 19.21%-21.62% 16.92%-21.76% Weighted average estimated fair value $13.56 $8.97 $8.77 ESPP Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 0.82% - 1.37% 0.53% - 0.86% 0.12% - 0.75% Volatility 17.20% - 19.99% 17.03% - 25.46% 18.01% - 21.60% Weighted average estimated fair value $18.77 $12.75 $11.11 The following table presents stock-based compensation expense for fiscal 2017 , 2016 and 2015 , respectively: Year Ended October 31, 2017 2016 2015 (in thousands) Cost of products $ 12,553 $ 11,006 $ 9,162 Cost of maintenance and service 3,918 2,418 2,164 Research and development expense 52,933 49,511 43,431 Sales and marketing expense 21,001 19,690 17,744 General and administrative expense 17,889 14,958 13,899 Stock-based compensation expense before taxes 108,294 97,583 86,400 Income tax benefit (30,950 ) (25,967 ) (20,071 ) Stock-based compensation expense after taxes $ 77,344 $ 71,616 $ 66,329 The Company elected to early adopt ASU 2016-09, "Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting (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. As of October 31, 2017 , the Company had $215.5 million of total unrecognized stock-based compensation expense relating to options and restricted stock units and awards, which is expected to be recognized over a weighted average period of 2.5 years. Deferred Compensation Plan. The Company maintains the Synopsys Deferred Compensation Plan (the Deferred Plan), which permits eligible employees to defer up to 50% of their annual cash base compensation and up to 100% of their eligible cash variable compensation. Amounts may be withdrawn from the Deferred Plan pursuant to elections made by the employees in accordance with the terms of the plan. Since the inception of the Deferred Plan, the Company has not made any matching or discretionary contributions to the Deferred Plan. There are no Deferred Plan provisions that provide for any guarantees or minimum return on investments. Undistributed amounts under the Deferred Plan are subject to the claims of the Company’s creditors. The securities held by the Deferred Plan are classified as trading securities. Deferred Plan Assets and Liabilities are as follows: As of October 31, 2017 As of October 31, 2016 (In thousands) Plan assets recorded in other long-term assets $ 197,542 $ 163,185 Plan liabilities recorded in other long-term liabilities(1) $ 197,542 $ 163,185 (1) Undistributed deferred compensation balances due to participants. Income or loss from the change in fair value of the Deferred Plan assets is recorded in other income (expense), net. The increase or decrease in the fair value of the undistributed Deferred Plan obligation is recorded in total cost of revenue and operating expense. The following table summarizes the impact of the Deferred Plan: Year Ended October 31, 2017 2016 2015 (in thousands) Increase (reduction) to cost of revenue and operating expense $ 29,606 $ 4,400 $ 3,701 Other income (expense), net 29,606 4,400 3,701 Net increase (decrease) to net income $ — $ — $ — Other Retirement Plans. The Company sponsors various retirement plans for its eligible U.S. and non-U.S. employees. Total contributions to these plans were $57.4 million , $53.4 million and $40.0 million in fiscal 2017 , 2016 and 2015 , respectively. For employees in the United States and Canada, the Company matches pretax employee contributions up to a maximum of U.S. $3,000 and Canadian $4,000 , respectively, per participant per year. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of the Company’s total income (loss) before provision for income taxes are as follows: Year Ended October 31, 2017 2016 2015 (in thousands) United States $ (2,702 ) $ 22,134 $ 42,571 Foreign 385,800 307,414 239,039 Total income (loss) before provision for income taxes $ 383,098 $ 329,548 $ 281,610 The components of the provision (benefit) for income taxes were as follows: Year Ended October 31, 2017 2016 2015 (in thousands) Current: Federal $ 25,420 $ (6,106 ) $ (21,911 ) State 5,565 2,670 1,385 Foreign 92,498 80,195 39,319 123,483 76,759 18,793 Deferred: Federal 95,003 (23,510 ) 44,462 State 24,440 11,950 (2,282 ) Foreign 3,609 (2,477 ) (5,297 ) 123,052 (14,037 ) 36,883 Provision (benefit) for income taxes $ 246,535 $ 62,722 $ 55,676 The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows: Year Ended October 31, 2017 2016 2015 (in thousands) Statutory federal tax $ 134,084 $ 115,343 $ 98,564 State tax (benefit), net of federal effect (20,071 ) (14,492 ) (7,186 ) Tax credits (1) (24,365 ) (36,979 ) (13,301 ) Tax on foreign earnings less than U.S. statutory tax (52,413 ) (68,246 ) (56,536 ) Tax settlements (7,057 ) (16,479 ) (6,251 ) Stock-based compensation (26,205 ) 5,709 5,406 Changes in valuation allowance 47,745 25,590 2,206 Integration of acquired technologies 36,443 37,525 33,015 Undistributed earnings of foreign subsidiaries (9,610 ) 9,940 — Tax impact of repatriation 166,152 — — Other 1,832 4,811 (241 ) Provision (benefit) for income taxes $ 246,535 $ 62,722 $ 55,676 (1) Tax credits include benefits from the retroactive reinstatement of the U.S. federal research tax credit. The U.S. federal research tax credit was reinstated in fiscal 2015, resulting in a tax benefit of approximately $12.4 million in the above amount for the period January 1 through December 31, 2014. The credit was permanently reinstated in fiscal 2016, resulting in a tax benefit of approximately $37.1 million in the above amount for the period January 1, 2015 through October 31, 2016. The integration of acquired technologies represents the income tax effect resulting from the transfer of certain intangible assets among company-controlled entities. The income tax effect is generally recognized over five years. These intangible assets generally result from the acquisition of technology by a company-controlled entity as part of a business or asset acquisition. The significant components of deferred tax assets and liabilities were as follows: October 31, 2017 2016 (in thousands) Net deferred tax assets: Deferred tax assets: Accruals and reserves $ 36,906 $ 34,324 Deferred revenue 42,420 42,497 Deferred compensation 67,145 64,321 Capitalized costs 51,679 54,123 Capitalized research and development costs 12,508 18,896 Stock-based compensation 23,679 22,298 Tax loss carryovers 23,623 31,748 Foreign tax credit carryovers 7,662 10,369 Research and other tax credit carryovers 157,817 136,690 Other — 5,161 Gross deferred tax assets 423,439 420,427 Valuation allowance (121,770 ) (73,909 ) Total deferred tax assets 301,669 346,518 Deferred tax liabilities: Intangible assets 62,299 54,604 Undistributed earnings of foreign subsidiaries 1,300 10,888 Other 1,758 — Total deferred tax liabilities 65,357 65,492 Net deferred tax assets $ 236,312 $ 281,026 It is more likely than not that the results of future operations will be able to generate sufficient taxable income to realize the net deferred tax assets. The valuation allowance provided against the Company's deferred tax assets as of October 31, 2017 is mainly attributable to California research credit and international foreign tax credit carryforwards. The valuation allowance increased by a net of $47.9 million in fiscal 2017 primarily due to a change in the realizability of deferred tax assets related to the California research credit carryforwards. Most of the change relates to a significant increase in the Company's share price in fiscal 2017, which results in a higher tax deduction that reduces the future California sourced taxable income and the amount of California research credits the Company expects to utilize. The remainder of the increase relates to an agreement the Company reached with the California tax authorities in fiscal 2017 which resulted primarily in the recognition of unrecognized tax benefits offset by a corresponding increase in the valuation allowance of $13.2 million . The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities: Carryforward Amount Expiration Date (in thousands) Federal net operating loss carryforward $ 57,265 2018-2034 Federal research credit carryforward 78,599 2019-2036 Federal foreign tax credit carryforward 2,081 2019-2022 International foreign tax credit carryforward 13,351 Indefinite California research credit carryforward 169,038 Indefinite Other state research credit carryforward 7,482 2023-2032 State net operating loss carryforward 33,201 2024-2035 The federal and state net operating loss carryforward is from acquired companies and the annual use of such loss is subject to significant limitations under Internal Revenue Code Section 382. Foreign tax credits may only be used to offset tax attributable to foreign source income. The federal research tax credit was permanently reinstated in fiscal 2016 . 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 mainly related to the research tax credit carryover, 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 $38.1 million for fiscal 2017. During the fourth quarter of fiscal 2017, the Company repatriated $825 million from its foreign subsidiary. The repatriation was executed in anticipation of potential U.S. corporate tax reform, and the Company plans to indefinitely reinvest the remainder of its undistributed foreign earnings outside the United States. The Company provides for U.S. income and foreign withholding taxes on foreign earnings, except for foreign earnings that are considered indefinitely reinvested outside the U.S. As of October 31, 2017 , there were approximately $598.3 million of earnings upon which U.S. income taxes of approximately $110.0 million have not been provided for. The gross unrecognized tax benefits decreased by approximately $14.9 million during fiscal 2017 resulting in gross unrecognized tax benefits of $91.6 million as of October 31, 2017 . A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows: As of October 31, 2017 As of October 31, 2016 (in thousands) Beginning balance $ 106,542 $ 132,054 Increases in unrecognized tax benefits related to prior year tax positions 3,117 7,205 Decreases in unrecognized tax benefits related to prior year tax positions (49,456 ) (43,944 ) Increases in unrecognized tax benefits related to current year tax positions 31,007 13,880 Decreases in unrecognized tax benefits related to settlements with taxing authorities (784 ) (333 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (2,635 ) (2,659 ) Increases in unrecognized tax benefits acquired 1,934 49 Changes in unrecognized tax benefits due to foreign currency translation 1,912 290 Ending balance $ 91,637 $ 106,542 As of October 31, 2017 and 2016 , approximately $88.5 million and $106.5 million , respectively, of the unrecognized tax benefits would affect the Company's effective tax rate if recognized upon resolution of the uncertain tax positions. Interest and penalties related to estimated obligations for tax positions taken in the Company’s tax returns are recognized as a component of income tax expense (benefit) in the consolidated statements of operations and totaled approximately $0.2 million , $0.8 million and $0.6 million for fiscal years 2017 , 2016 and 2015 , respectively. As of October 31, 2017 and 2016 , the combined amount of accrued interest and penalties related to tax positions taken on the Company’s tax returns was approximately $3.2 million and $3.1 million , respectively. The timing of the resolution of income tax examinations, and the amounts and timing of various tax payments that are part of the settlement process, are highly uncertain. Variations in such amounts and/or timing 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 $32 million . The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions: Jurisdiction Year(s) Subject to Examination United States Fiscal 2017 California Fiscal years after 2014 Hungary and Ireland Fiscal years after 2010 Japan and Taiwan Fiscal years after 2011 In addition, the Company has made acquisitions with operations in several of its significant jurisdictions which may have years subject to examination different from the years indicated in the above table. 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. IRS Examinations In fiscal 2017, the Company reached final settlement with the Examination Division of the IRS for fiscal 2016 and recognized approximately $4.6 million in unrecognized tax benefits. In fiscal 2016, the Company reached final settlement with the Examination Division of the IRS for fiscal 2015 and recognized approximately $20.7 million in unrecognized tax benefits. In fiscal 2015, the Company reached final settlement with the IRS on the integration of acquired technologies for fiscal 2015 and research tax credit for fiscal 2014 that resulted in $7.0 million and $3.2 million in tax benefits, respectively. State Examinations In fiscal 2017, the Company reached an agreement with the California Franchise Tax Board for fiscal 2014, 2013, and 2012. As a result of the agreement, the Company recognized tax expense of $0.4 million , reduced its deferred tax assets by $1.1 million , recognized $14.6 million in unrecognized tax benefits, and increased its valuation allowance by $13.2 million . In 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 Hungary 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 expense 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 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. On November 16, 2017, Synopsys Hungary paid the assessment, while continuing its challenge to the assessment in court. A hearing is scheduled for early 2018. If the Company prevails, the assessment of $47 million and associated interest and penalties 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. Korea In fiscal 2017, the Company settled certain transfer pricing issues with the Korea 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 . Taiwan In fiscal 2017, the Company reached an 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 fiscal 2016, the Company reached final settlement with the Taiwanese 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 fiscal 2015, the Company reached final settlement with the Taiwanese tax authorities for fiscal 2012 with regard to certain transfer pricing issues. As a result of the settlement, the Company recognized approximately $1.1 million in unrecognized tax benefits. The Company also reached final settlement with the Taiwanese tax authorities for fiscal 2013 with regard to certain transfer pricing issues. As a result of the settlement and the application of the settlement to fiscal 2014, the Company's unrecognized tax benefits decreased by $1.2 million and $1.2 million for fiscal years 2013 and 2014, respectively. India In fiscal 2016, the Company agreed to settle certain transfer pricing issues with the Indian tax authorities for various fiscal years. As a result of the settlement, the Company recognized income tax expense, net of foreign tax credits, of $4.6 million . |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Oct. 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: Year Ended October 31, 2017 2016 2015 (in thousands) Interest income $ 7,241 $ 3,715 $ 2,785 Interest expense (7,303 ) (3,771 ) (2,814 ) Gain (loss) on assets related to deferred compensation plan 29,606 4,400 3,701 Foreign currency exchange gain (loss) 3,354 156 6,363 Other, net 2,637 7,653 5,109 Total $ 35,535 $ 12,153 $ 15,144 |
Segment Disclosure
Segment Disclosure | 12 Months Ended |
Oct. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Disclosure | Segment Disclosure ASC 280, Segment Reporting, requires disclosures of certain information regarding 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 and property and equipment, net, related to operations in the United States and other by geographic areas were: Year Ended October 31, 2017 2016 2015 (in thousands) Revenue: United States $ 1,357,364 $ 1,205,880 $ 1,143,816 Europe 308,419 287,381 300,352 Japan 247,631 239,964 218,794 Asia Pacific and Other 811,466 689,307 579,249 Consolidated $ 2,724,880 $ 2,422,532 $ 2,242,211 As of October 31, 2017 2016 (in thousands) Property and Equipment, net: United States $ 189,379 $ 186,854 Other countries 76,635 70,181 Total $ 266,014 $ 257,035 Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to the Company’s methodology. One customer, including its subsidiaries, through multiple agreements accounted for 17.9% , 15.9% , and 12.8% of the Company’s consolidated revenue in fiscal 2017 , 2016 , and 2015 , respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 2, 2017, the Company entered into a definitive agreement pursuant to which the Company has agreed to acquire privately held Black Duck Software, a leader in automated solutions for securing and managing open source software. The acquisition was completed on December 11, 2017 and under the terms of the definitive agreement, the Company paid approximately $547 million , net of cash acquired, and assumed certain unvested equity of Black Duck employees. The transaction was funded by U.S. cash. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
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 , 2016 , and 2015 were 52-week years ending on October 28, 2017, October 29, 2016, and October 31, 2015, respectively. For presentation purposes, the consolidated financial statements and accompanying notes refer to the closest calendar month end. Fiscal 2018 will be a 53-week year. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates. To prepare financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP), management must make estimates and assumptions that affect the amounts reported in the 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. |
Foreign Currency Translation | Foreign Currency Translation. The functional currency of the majority of the Company’s active foreign subsidiaries is the foreign subsidiary’s local currency. Assets and liabilities that are not denominated in the functional currency are remeasured into the functional currency with any related gain or loss recorded in earnings. The Company translates assets and liabilities of its non-U.S. dollar functional currency foreign operations into the U.S. dollar reporting currency at exchange rates in effect at the balance sheet date. The Company translates income and expense items of such foreign operations into U.S. dollars reporting currency at average exchange rates for the period. Accumulated translation adjustments are reported in stockholders’ equity, as a component of accumulated other comprehensive income (loss). |
Foreign Currency Contracts | Foreign Currency Contracts. The Company operates internationally and is exposed to potentially adverse movements in 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. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheet. 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. See Note 5. Financial Assets and Liabilities . |
Fair Values of Financial Instruments | Fair Values of Financial Instruments. The Company’s cash equivalents, short-term investments and foreign currency contracts are carried at fair value. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. Non-marketable equity securities are carried at cost, net of impairments. The Company performs periodic impairment analysis over these non-marketable equity securities. The carrying amount of the short-term debt approximates the estimated fair value. See Note 6. Fair Value Measures . |
Cash, Cash Equivalents and Short-term Investments | Cash, Cash Equivalents and Short-term Investments . The Company classifies investments with original maturities of three months or less when acquired as cash equivalents. All of the Company’s short-term investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses included in stockholders’ equity 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. See Note 5. Financial Assets and Liabilities. |
Concentration of Credit Risk | Concentration of Credit Risk . Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign currency contracts, and accounts receivable from trade customers. The Company maintains cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U.S. and in various overseas locations. The Company sells its products worldwide primarily to customers in the global electronics market. The Company performs on-going credit evaluations of its customers’ financial condition and does not require collateral. The Company establishes reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented. |
Accounts Receivable, net and Allowance for Doubtful Accounts | Accounts Receivable, Net. The balances consist of accounts receivable billed and unbilled. Unbilled accounts receivable represent amounts recorded as revenue which will be invoiced within one year of the balance sheet date. Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains allowances for doubtful accounts to reduce the Company’s receivables to their estimated net realizable value. The Company provides a general reserve on all accounts receivable based on a review of customer accounts. |
Income Taxes | Income Taxes. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. |
Property and Equipment | Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Assets, excluding land, are depreciated using the straight-line method over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over the remaining term of the lease or the economic useful life of the asset, whichever is shorter. |
Goodwill | Goodwill. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment annually as of October 31 or more frequently if facts and circumstances warrant a review. The Company determined that it is a single reporting unit for the purpose of goodwill impairment tests. For purposes of assessing the impairment of goodwill, the Company estimates the value of the reporting unit using its market capitalization as the best evidence of fair value. This fair value is then compared to the carrying value of the reporting unit. |
Intangible Assets | Intangible Assets. Intangible assets consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, covenants not to compete, capitalized software, and in-process research and development. These intangible assets are acquired through business combinations, direct purchases, or internally developed capitalized software. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from one to ten years. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment and intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such asset group will be recovered through the undiscounted future cash flow. If the undiscounted future cash flow is less than the carrying amount of the asset group, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the asset group. |
Restructuring Charges | Restructuring Charges. During fiscal 2017, the Company recorded $36.6 million of restructuring charges for severance and benefits due to involuntary and voluntary employee termination actions. The restructuring actions were undertaken to position the Company for future growth, reallocate resources to priority areas, and to a lesser extent, eliminate operational redundancy. These charges consist primarily of severance and retirement benefits. As of October 31, 2017, there was a $17.5 million outstanding balance remaining in accounts payable and accrued liabilities as payroll and related benefits in the consolidated balance sheets. Payments under the 2017 restructuring plans are expected to be completed by the end of the second quarter of fiscal 2018. During fiscal 2016, the Company recorded $9.6 million of restructuring charges for severance and benefits due to involuntary employee terminations, of which $3.9 million was paid in fiscal 2016. As of October 31, 2016, there was a $5.7 million outstanding balance remaining in accounts payable and accrued liabilities as payroll and related benefits in the consolidated balance sheets. The remaining balance was paid in fiscal 2017. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss). Other comprehensive income (loss) (OCI) includes all changes in equity during a period, such as accumulated net translation adjustments, unrealized gain (loss) on certain foreign currency forward contracts that qualify as cash flow hedges, reclassification adjustments related to cash flow hedges and unrealized gain (loss) on investments. See Note 8 . Accumulated Other Comprehensive Income (Loss) . |
Revenue Recognition | Revenue Recognition. The Company generates revenue from the sale of products that include software licenses, maintenance and services and to a lesser extent, hardware products. Software license revenue consists of fees associated with the licensing of the Company's software. Maintenance and service revenue consists of maintenance fees associated with perpetual licenses and professional services fees. Hardware revenue consists of sales of Field Programmable Gate Array (FPGA)-based emulation and prototyping products. Most of the Company's customer arrangements are complex, involving hundreds of products and various license rights, bundled with post-contract customer support and additional meaningful rights that provide a complete end-to-end solution to the customer. Throughout the contract, the Company's customers are typically using a myriad of products to complete each phase of a chip design and are concurrently working on multiple chip designs, or projects, in different phases of the design. During this time, the customer looks to the Company to release state-of-the-art technology to address requested enhancements to the Company's tools to meet customer specifications, to provide support at each stage of the customer’s design, including the final manufacturing of the chip (the tape out stage), and other important services. With respect to software licenses, the Company utilizes primarily two license types: • Technology Subscription Licenses (TSLs). TSLs are time-based licenses for a finite term, and generally provide the customer limited rights to receive, or to exchange certain quantities of licensed software for, unspecified future technology. The majority of the Company's arrangements are TSLs due to the nature of the business and customer requirements. In addition to the licenses, the arrangements also include: post-contract customer support, which includes providing frequent updates and upgrades to maintain the utility of the software due to rapid changes in technology; other intertwined services such as multiple copies of the tools; assisting the Company's customers in applying the Company's technology in their development environment; and rights to remix licenses for other licenses. • Perpetual licenses. Perpetual licenses continue as long as the customer renews maintenance plus an additional 20 years. Perpetual licenses do not provide the customer any rights to receive, or to exchange licensed software for, unspecified future technology. Customers purchase maintenance separately for the first year and may renew annually. For the two software license types, the Company recognizes revenue as follows: • TSLs. The Company typically recognizes revenue from TSL fees ratably over the term of the license period, or as customer installments become due and payable, whichever is later. Revenue attributable to TSLs is reported as “time-based products revenue” in the consolidated statements of operations. • Perpetual licenses. The Company recognizes revenue from perpetual licenses in full upon shipment of the software if payment terms require the customer to pay at least 75% of the license fee and 100% of the maintenance fee within one year from shipment and all other revenue recognition criteria are met. Revenue attributable to these perpetual licenses is reported as “upfront products revenue” in the consolidated statements of operations. For perpetual licenses in which less than 75% of the license fee and 100% of the maintenance fee is payable within one year from shipment, the Company recognizes revenue as customer installments become due and payable. Such revenue is reported as “time-based products revenue” in the consolidated statements of operations. The Company's maintenance and service revenue primarily consists of maintenance fees associated with perpetual licenses and hardware products, and professional services fees. The Company recognizes revenue from maintenance arrangements ratably over the maintenance period to the extent cash has been received or fees become due and payable, and recognizes revenue from professional services and training fees as such services are performed and accepted by the customers as needed. Revenue attributable to maintenance, professional services and training is reported as “maintenance and service revenue” in the consolidated statements of operations. Hardware revenue consists of sales of FPGA-based emulation and prototyping products. The Company recognizes revenue from sales of hardware products in full upon shipment if all other revenue recognition criteria are met. Revenue attributable to these sales is reported as “upfront products revenue” in the consolidated statements of operations. Infrequently, the Company enters into certain license arrangements wherein licenses are provided for a finite term without any other services or rights, including rights to receive, or to exchange licensed software for, unspecified future technology. The Company recognizes revenue from these term licenses in full upon shipment of the software and when all other revenue recognition criteria are met. The Company also enters into arrangements in which portions of revenue are contingent upon the occurrence of uncertain future events, for example, royalty arrangements. The Company refers to this revenue as “contingent revenue.” Contingent revenue is recognized if and when the event that removes the contingency occurs. Such revenue is reported as “time-based products revenue” in the consolidated statements of operations. These arrangements are not material to the Company’s total revenue. The Company infrequently enters into multiple-element arrangements that contain both software and non-software deliverables such as hardware. The Company has determined that the software and non-software deliverables in the Company’s contracts are separate units of accounting. The Company recognizes revenue for the separate units of accounting when all revenue recognition criteria are met. Revenue allocated to hardware units of accounting is recognized upon shipment when all other revenue recognition criteria are met. Revenue allocated to software units of accounting is recognized depending on the software license type (TSL or perpetual license). Such arrangements have not had a material effect on the Company’s consolidated financial statements and are not expected to have a material effect in future periods. The Company also enters into arrangements to deliver software products, either alone or together with other products or services, that require significant modification or customization of the software. The Company accounts for such arrangements using the percentage of completion method as the Company has the ability to make reasonably dependable estimates that relate to the extent of progress toward completion, contract revenues and costs. The Company measures the progress towards completion using the labor hours incurred to complete the project. Revenue attributable to these arrangements is reported as “maintenance and service revenue” in the consolidated statements of operations. The Company determines the fair value of each element in multiple element software arrangements that only contain software and software-related deliverables based on vendor-specific objective evidence (VSOE). The Company limits assessment of VSOE of fair value for each element to the price charged when such element is sold separately. The Company has analyzed all of the elements included in multiple-element software arrangements and has determined that the Company has sufficient VSOE to allocate revenue to the maintenance components of the Company’s perpetual license products and to professional services. Accordingly, assuming all other revenue recognition criteria are met, the Company recognizes license revenue from perpetual licenses upon delivery using the residual method, recognizes revenue from maintenance ratably over the maintenance term, and recognizes revenue from professional services as services are performed and accepted by the customer. With respect to TSL arrangements, due to the complexity of the tools, the complexity of the arrangement terms and intertwined services, the license, maintenance and other services are not separable and are considered as a combined unit. Additionally, the Company does not have sufficient VSOE of fair value to allocate the fee between these services. Therefore, the Company recognizes revenue from TSLs ratably over the term of the license, assuming all other revenue recognition criteria are met. Revenue recognition involves certain judgments, specifically, in connection with each transaction involving the Company’s products, the Company must evaluate whether: (1) persuasive evidence of an arrangement exists, (2) delivery of software or services has occurred, (3) the fee for such software or services is fixed or determinable, and (4) collectability is probable. All four of these criteria must be met in order for the Company to recognize revenue with respect to a particular arrangement. The Company applies these revenue recognition criteria as follows: • Persuasive Evidence of an Arrangement Exists. Prior to recognizing revenue on an arrangement, the Company’s customary policy is to have a written contract, signed by both the customer and by the Company or a purchase order from those customers that have previously negotiated a standard end-user license arrangement or purchase agreement. • Delivery Has Occurred. The Company delivers its products to its customers electronically or physically. For electronic deliveries, delivery occurs when the Company provides access to its customers to take immediate possession of the software through downloading it to the customer’s hardware. For physical deliveries, the standard transfer terms are typically Freight on Board (FOB) shipping point. The Company generally ships its products or license keys promptly after acceptance of customer orders. However, a number of factors can affect the timing of product shipments and, as a result, timing of revenue recognition, including the delivery dates requested by customers and the Company's operational capacity to fulfill product orders at the end of a fiscal quarter. • The Fee is Fixed or Determinable. The Company’s determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. The Company’s standard payment terms for perpetual licenses require 75% or more of the license fee and 100% of the maintenance fee to be paid within one year. If the arrangement includes these terms, the Company regards the fee as fixed or determinable, and recognizes all license revenue under the arrangement in full upon delivery (assuming all other revenue recognition criteria are met). If the arrangement does not include these terms, the Company does not consider the fee to be fixed or determinable and generally recognizes revenue when customer installments are due and payable. In the case of a TSL, because of the right to exchange products or receive unspecified future technology and because VSOE for maintenance services does not exist for a TSL, the Company recognizes revenue ratably over the term of the license, but not in advance of when customers’ installments become due and payable. • Collectability is Probable. The Company judges collectability of the arrangement fees on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a history of successful collection. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position and ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is not probable under a particular arrangement based upon its credit review process or the customer’s payment history, the Company recognizes revenue under that arrangement as customer payments are actually received. |
Warranties and Indemnities | . Warranties and Indemnities. The Company generally warrants its products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for software products and for up to six months for hardware systems. In certain cases, the Company also provides its customers with limited indemnification with respect to claims that their use of the Company’s software products infringes on United States patents, copyrights, trademarks or trade secrets. The Company is unable to estimate the potential impact of these commitments on the future results of operations. To date, the Company has not been required to pay any material warranty claims. |
Net Income Per Share | Net Income Per Share. The Company computes basic income per share by dividing net income available to common shareholders 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. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable, net | The following table represents the components of accounts receivable, net: October 31, 2017 2016 (in thousands) Accounts receivable $ 393,229 $ 394,314 Unbilled accounts receivable 63,080 47,760 Total accounts receivable 456,309 442,074 Less allowance for doubtful accounts (5,165 ) (3,201 ) Total accounts receivable, net $ 451,144 $ 438,873 |
Changes in Allowance for Doubtful Accounts | The following table presents the changes in the allowance for doubtful accounts: Fiscal Year Balance at Beginning of Period Provisions Write-offs(1) Balance at End of Period (in thousands) 2017 $ 3,201 $ 2,149 $ (185 ) $ 5,165 2016 $ 2,561 $ 950 $ (310 ) $ 3,201 2015 $ 2,026 $ 1,300 $ (765 ) $ 2,561 (1) Balances written off, net of recoveries. |
Components of Property and Equipment | A summary of property and equipment, at cost less accumulated depreciation and amortization, as of October 31, 2017 and 2016 is as follows: October 31, 2017 2016 (in thousands) Computer and other equipment $ 540,257 $ 486,109 Buildings 68,877 68,194 Furniture and fixtures 54,882 51,589 Land 20,414 20,414 Leasehold improvements 153,619 136,773 838,049 763,079 Less accumulated depreciation and amortization(1) (572,035 ) (506,044 ) Total $ 266,014 $ 257,035 (1) Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets. |
Useful Lives of Depreciable Assets | The useful lives of depreciable assets are as follows: Useful Life in Years Computer and other equipment 3-5 Buildings 30 Furniture and fixtures 5 Leasehold improvements (average) 5 |
Components of Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities. The balance consists of: October 31, 2017 2016 (in thousands) Payroll and related benefits $ 382,773 $ 321,430 Other accrued liabilities 97,119 66,276 Accounts payable 19,954 13,745 Total $ 499,846 $ 401,451 |
Components of Other Long Term Liabilities | Other Long-term Liabilities. The balance consists of: October 31, 2017 2016 (in thousands) Deferred compensation liability (See Note 10 ) $ 197,542 $ 163,185 Other long-term liabilities 54,485 47,670 Total $ 252,027 $ 210,855 |
Reconciliation of Weighted Average Common Shares Used to Calculate Basic 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: Year Ended October 31, 2017 2016 2015 (in thousands) Numerator: Net income $ 136,563 $ 266,826 $ 225,934 Denominator: Weighted average common shares for basic net income per share 150,457 152,017 154,957 Dilutive effect of common share equivalents from equity-based compensation 4,417 2,704 3,108 Weighted average common shares for diluted net income per share 154,874 154,721 158,065 Net income per share: Basic $ 0.91 $ 1.76 $ 1.46 Diluted $ 0.88 $ 1.73 $ 1.43 Anti-dilutive employee stock-based awards excluded(1) 345 1,971 1,363 (1) These stock options and unvested restricted stock units 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | Goodwill: (in thousands) Balance at October 31, 2015 $ 2,471,241 Additions 39,172 Adjustments 435 Effect of foreign currency translation 7,397 Balance at October 31, 2016 $ 2,518,245 Additions 178,545 Effect of foreign currency translation 10,184 Balance at October 31, 2017(1) $ 2,706,974 (1) There is no impairment of goodwill for periods presented. |
Summary of Intangible Assets | Intangible assets as of October 31, 2017 consist of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 647,975 $ 526,796 $ 121,179 Customer relationships 278,811 166,886 111,925 Contract rights intangible 174,615 172,178 2,437 Trademarks and trade names 25,329 17,401 7,928 In-process research and development (IPR&D)(2) 6,600 — 6,600 Capitalized software development costs 32,868 29,094 3,774 Total $ 1,166,198 $ 912,355 $ 253,843 (2) IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. Intangible assets as of October 31, 2016 consist 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: Year Ended October 31, 2017 2016 2015 (in thousands) Core/developed technology $ 65,916 $ 85,331 $ 76,674 Customer relationships 27,340 24,594 23,104 Contract rights intangible 10,886 16,543 33,350 Trademarks and trade names 3,580 3,156 2,900 Capitalized software development costs(3) 3,986 3,697 3,653 Total $ 111,708 $ 133,321 $ 139,681 (3) Amortization of capitalized software development costs is included in cost of products revenue in the consolidated statements of operations. |
Estimated Future Amortization of Intangible Assets | The following table presents the estimated future amortization of intangible assets: Fiscal Year (in thousands) 2018 $ 88,907 2019 62,940 2020 44,938 2021 26,708 2022 16,648 2023 and thereafter 7,102 IPR&D(4) 6,600 Total $ 253,843 (4) IPR&D assets are amortized over their useful lives upon completion or are written off upon abandonment. |
Financial Assets and Liabilit26
Financial Assets and Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Financial Assets And Liabilities [Abstract] | |
Summary of Available-for-Sale Securities | As of October 31, 2017 , the balances of our cash equivalents and non-marketable equity securities investments are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 560,594 $ — $ — $ — $ 560,594 Total: $ 560,594 $ — $ — $ — $ 560,594 Other long-term assets: Non-marketable equity securities $ 7,826 $ — $ — $ — $ 7,826 Total: $ 7,826 $ — $ — $ — $ 7,826 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and investments. As of October 31, 2016 , the balances of our cash equivalents and non-marketable equity securities investments 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 Other long-term assets: Non-marketable equity securities 9,756 — — — 9,756 Total: 9,756 — — — 9,756 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and investments. |
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 for fiscal years 2017 , 2016 and 2015 are summarized as follows: October 31, 2017 2016 2015 (in thousands) Gain (loss) recorded in other income (expense), net $ 1,359 $ (4,533 ) $ (5,554 ) |
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 October 31, 2017 As of October 31, 2016 (in thousands) Total gross notional amount $ 955,139 $ 758,246 Net fair value $ 14,052 $ (15,358 ) |
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet | The following represents the 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 October 31, 2017 Other current assets $ 16,582 $ 15 Accrued liabilities $ 2,485 $ 59 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 income statement 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) Fiscal year ended October 31, 2017 Foreign exchange contracts Revenue $ 7,582 Revenue $ (2,759 ) Foreign exchange contracts Operating expenses 13,346 Operating expenses (805 ) Total $ 20,928 $ (3,564 ) Fiscal year ended October 31, 2016 Foreign exchange contracts Revenue $ (14,580 ) Revenue $ (8,585 ) Foreign exchange contracts Operating expenses (11,259 ) Operating expenses (12,125 ) Total $ (25,839 ) $ (20,710 ) Fiscal year ended October 31, 2015 Foreign exchange contracts Revenue $ 3,982 Revenue $ 9,270 Foreign exchange contracts Operating expenses (22,605 ) Operating expenses (24,193 ) Total $ (18,623 ) $ (14,923 ) |
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) income, net: Foreign exchange contracts Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)(1) Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2) (in thousands) Fiscal year ended October 31, 2017 $ 311 $ 3,018 Fiscal year ended October 31, 2016 $ 1,468 $ 6,058 Fiscal year ended October 31, 2015 $ 878 $ 3,704 (1) The ineffective portion includes forecast inaccuracies. (2) The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. |
Schedule of Maturities of Long-term Debt | Outstanding principal payments under the Term Loan are due as follows: Fiscal year (in thousands) 2018 10,313 2019 14,062 2020 17,813 2021 27,187 2022 75,000 Total $ 144,375 |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 12 Months Ended |
Oct. 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 October 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 $ 560,594 $ 560,594 $ — $ — Prepaid and other current assets: Foreign currency derivative contracts 16,596 — 16,596 — Other long-term assets: Deferred compensation plan assets 197,542 197,542 — — Total assets $ 774,732 $ 758,136 $ 16,596 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 2,544 $ — $ 2,544 $ — Other long-term liabilities: Deferred compensation plan liabilities 197,542 197,542 — — Total liabilities $ 200,086 $ 197,542 $ 2,544 $ — Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2016 : Description Total Fair Value Measurement Using 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 $ — |
Securities Owned Not Readily Marketable | 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 October 31, 2017 Significant Unobservable Inputs (Level 3) Total (losses) for Fiscal 2017 (in thousands) Non-marketable equity securities $ — $ — $ (1,300 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Lease Commitments | As of October 31, 2017 , anticipated future minimum lease payments on all non-cancellable operating leases with a term in excess of one year, net of sublease income are as follows: Minimum Lease Payments Sublease Income Net (in thousands) Fiscal Year 2018 $ 56,879 $ 2,977 $ 53,902 2019 51,350 3,208 48,142 2020 39,594 3,050 36,544 2021 31,797 2,184 29,613 2022 27,438 1,681 25,757 Thereafter 147,271 566 146,705 Total $ 354,329 $ 13,666 $ 340,663 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Oct. 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: Year Ended October 31, 2017 2016 (in thousands) Cumulative currency translation adjustments $ (70,407 ) $ (84,700 ) Unrealized gain (loss) on derivative instruments, net of taxes 4,428 (19,896 ) Unrealized gain (loss) on available-for-sale securities, net of taxes — 19 Total accumulated other comprehensive income (loss) $ (65,979 ) $ (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: Year Ended October 31, 2017 2016 2015 (in thousands) Reclassifications from accumulated other comprehensive income (loss) into consolidated statement of operations: Gain (loss) on cash flow hedges, net of taxes Revenues $ (2,759 ) $ (8,585 ) $ 9,270 Operating expenses (805 ) (12,125 ) (24,193 ) Gain (loss) on available-for-sale securities Other income (expense) (8 ) 18 41 Total reclassifications into net income $ (3,572 ) $ (20,692 ) $ (14,882 ) |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase And Reissuance Activities | The following table summarizes stock repurchase activities as well as the reissuance of treasury stock for employee stock-based compensation purposes: Year Ended October 31, 2017 2016 2015 (in thousands, except per share price) Shares repurchased(1) 5,413 8,506 5,672 Average purchase price per share(1) $ 70.21 $ 49.37 $ 45.84 Aggregate purchase price(1) $ 380,000 $ 420,000 $ 260,000 Reissuance of treasury stock 4,404 4,803 4,864 (1) Does not include the 181,988 shares and $20.0 million equity forward contract, respectively, from the September 2017 ASR settled in November 2017. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Units | The following table contains information concerning activities related to restricted stock units: Restricted Stock Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life (In Years) Aggregate Fair Value (in thousands, except per share and life amounts) Balance at October 31, 2014 3,947 $ 35.29 1.53 Granted 1,707 $ 48.13 Vested(1) (1,522 ) $ 33.05 $ 73,677 Forfeited (204 ) $ 37.68 Balance at October 31, 2015 3,928 $ 41.61 1.54 Granted 1,765 $ 49.59 Vested(1) (1,547 ) $ 38.33 $ 79,558 Forfeited (111 ) $ 43.12 Balance at October 31, 2016 4,035 $ 46.37 1.56 Granted 1,584 $ 70.49 Vested(1) (1,536 ) $ 43.53 $ 110,103 Forfeited (240 ) $ 49.36 Balance at October 31, 2017 3,843 $ 57.26 1.54 (1) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. |
Stock Options and Restricted Stock Units Under all Equity Plans (Except 2005 Directors Plan) | The following table contains additional information concerning activities related to stock options and restricted stock units under all equity plans, other than shares available for grant under the 2017 Directors Plan: Available for Grant(3) Options(2) Options Outstanding Weighted- Average Exercise Price per Share Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (in thousands, except per share and life amounts) Balance at October 31, 2014 12,155 7,750 $ 29.81 4.66 $ 86,537 Options granted (1,908 ) 1,942 $ 45.14 Options assumed(2) 133 $ 38.97 Options exercised (2,125 ) $ 26.06 Options canceled/forfeited/expired 230 (411 ) $ 33.51 Restricted stock units granted(1) (2,707 ) Restricted stock units forfeited(1) 313 Additional shares reserved 3,800 Balance at October 31, 2015 11,883 7,289 $ 34.94 4.67 $ 109,627 Options granted (1,685 ) 1,685 $ 47.39 Options exercised (2,154 ) $ 30.06 Options canceled/forfeited/expired 33 (65 ) $ 35.31 Restricted stock units granted(1) (2,967 ) Restricted stock units forfeited(1) 180 Additional shares reserved 3,800 Balance at October 31, 2016 11,244 6,755 $ 39.59 4.65 $ 126,850 Options granted (1,505 ) 1,536 $ 68.18 Options assumed(2) 154 $ 34.52 Options exercised (1,770 ) $ 34.56 Options canceled/forfeited/expired 129 (145 ) $ 47.17 Restricted stock units granted(1) (2,694 ) Restricted stock units forfeited(1) 409 Additional shares reserved 5,000 Balance at October 31, 2017 12,583 6,530 $ 46.83 4.60 $ 263,555 Vested and expected to vest as of October 31, 2017 6,530 $ 46.83 4.60 $ 263,555 Exercisable at October 31, 2017 3,252 $ 39.72 3.64 $ 154,357 (1) These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above. (2) The Company assumed options outstanding under various plans through acquisitions. (3) Excluding shares reserved for future issuance under the 2017 Directors Plan. |
Pretax Intrinsic Value of Options Exercised and Their Average Exercise Prices | The pretax intrinsic value of options exercised and their average exercise prices were: Year Ended October 31, 2017 2016 2015 (in thousands, except per share price) Intrinsic value $ 67,089 $ 51,408 $ 44,104 Average exercise price per share $ 34.56 $ 30.06 $ 26.06 |
Summary of Restricted Stock Award Activities Under 2005 Directors Plan | Restricted stock award activities during fiscal 2017 under the 2005 Directors Plan and 2017 Directors Plan are summarized as follows: Restricted Shares Weighted-Average Grant Date Fair Value (in thousands, except per share) Unvested at October 31, 2016 43 $ 45.97 Granted 20 $ 71.34 Vested (22 ) $ 44.33 Forfeited (3 ) $ 47.65 Unvested at October 31, 2017 38 $ 59.89 |
Stock Option Plans and Stock Purchase Rights Granted Under ESPP | The assumptions presented in the following table were used to estimate the fair value of stock options and employee stock purchase rights granted under the Company’s stock plans or stock plans assumed from acquisitions: Year Ended October 31, 2017 2016 2015 Stock Options Expected life (in years) 4.1 4.1 4.3 Risk-free interest rate 1.73% - 2.06% 1.06% - 1.63% 1.24% - 1.58% Volatility 18.51% - 19.67% 19.21%-21.62% 16.92%-21.76% Weighted average estimated fair value $13.56 $8.97 $8.77 ESPP Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 0.82% - 1.37% 0.53% - 0.86% 0.12% - 0.75% Volatility 17.20% - 19.99% 17.03% - 25.46% 18.01% - 21.60% Weighted average estimated fair value $18.77 $12.75 $11.11 |
Stock Compensation Expense | The following table presents stock-based compensation expense for fiscal 2017 , 2016 and 2015 , respectively: Year Ended October 31, 2017 2016 2015 (in thousands) Cost of products $ 12,553 $ 11,006 $ 9,162 Cost of maintenance and service 3,918 2,418 2,164 Research and development expense 52,933 49,511 43,431 Sales and marketing expense 21,001 19,690 17,744 General and administrative expense 17,889 14,958 13,899 Stock-based compensation expense before taxes 108,294 97,583 86,400 Income tax benefit (30,950 ) (25,967 ) (20,071 ) Stock-based compensation expense after taxes $ 77,344 $ 71,616 $ 66,329 |
Deferred Plan Assets and Liabilities | Deferred Plan Assets and Liabilities are as follows: As of October 31, 2017 As of October 31, 2016 (In thousands) Plan assets recorded in other long-term assets $ 197,542 $ 163,185 Plan liabilities recorded in other long-term liabilities(1) $ 197,542 $ 163,185 (1) Undistributed deferred compensation balances due to participants. |
Summary of Impact of Deferred Plan | The following table summarizes the impact of the Deferred Plan: Year Ended October 31, 2017 2016 2015 (in thousands) Increase (reduction) to cost of revenue and operating expense $ 29,606 $ 4,400 $ 3,701 Other income (expense), net 29,606 4,400 3,701 Net increase (decrease) to net income $ — $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Total Income Before Provision for Income Tax | The domestic and foreign components of the Company’s total income (loss) before provision for income taxes are as follows: Year Ended October 31, 2017 2016 2015 (in thousands) United States $ (2,702 ) $ 22,134 $ 42,571 Foreign 385,800 307,414 239,039 Total income (loss) before provision for income taxes $ 383,098 $ 329,548 $ 281,610 |
Components of (Benefit) Provision for Income Taxes | The components of the provision (benefit) for income taxes were as follows: Year Ended October 31, 2017 2016 2015 (in thousands) Current: Federal $ 25,420 $ (6,106 ) $ (21,911 ) State 5,565 2,670 1,385 Foreign 92,498 80,195 39,319 123,483 76,759 18,793 Deferred: Federal 95,003 (23,510 ) 44,462 State 24,440 11,950 (2,282 ) Foreign 3,609 (2,477 ) (5,297 ) 123,052 (14,037 ) 36,883 Provision (benefit) for income taxes $ 246,535 $ 62,722 $ 55,676 |
Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate | The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows: Year Ended October 31, 2017 2016 2015 (in thousands) Statutory federal tax $ 134,084 $ 115,343 $ 98,564 State tax (benefit), net of federal effect (20,071 ) (14,492 ) (7,186 ) Tax credits (1) (24,365 ) (36,979 ) (13,301 ) Tax on foreign earnings less than U.S. statutory tax (52,413 ) (68,246 ) (56,536 ) Tax settlements (7,057 ) (16,479 ) (6,251 ) Stock-based compensation (26,205 ) 5,709 5,406 Changes in valuation allowance 47,745 25,590 2,206 Integration of acquired technologies 36,443 37,525 33,015 Undistributed earnings of foreign subsidiaries (9,610 ) 9,940 — Tax impact of repatriation 166,152 — — Other 1,832 4,811 (241 ) Provision (benefit) for income taxes $ 246,535 $ 62,722 $ 55,676 (1) Tax credits include benefits from the retroactive reinstatement of the U.S. federal research tax credit. The U.S. federal research tax credit was reinstated in fiscal 2015, resulting in a tax benefit of approximately $12.4 million in the above amount for the period January 1 through December 31, 2014. The credit was permanently reinstated in fiscal 2016, resulting in a tax benefit of approximately $37.1 million in the above amount for the period January 1, 2015 through October 31, 2016. |
Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities were as follows: October 31, 2017 2016 (in thousands) Net deferred tax assets: Deferred tax assets: Accruals and reserves $ 36,906 $ 34,324 Deferred revenue 42,420 42,497 Deferred compensation 67,145 64,321 Capitalized costs 51,679 54,123 Capitalized research and development costs 12,508 18,896 Stock-based compensation 23,679 22,298 Tax loss carryovers 23,623 31,748 Foreign tax credit carryovers 7,662 10,369 Research and other tax credit carryovers 157,817 136,690 Other — 5,161 Gross deferred tax assets 423,439 420,427 Valuation allowance (121,770 ) (73,909 ) Total deferred tax assets 301,669 346,518 Deferred tax liabilities: Intangible assets 62,299 54,604 Undistributed earnings of foreign subsidiaries 1,300 10,888 Other 1,758 — Total deferred tax liabilities 65,357 65,492 Net deferred tax assets $ 236,312 $ 281,026 |
Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities | The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities: Carryforward Amount Expiration Date (in thousands) Federal net operating loss carryforward $ 57,265 2018-2034 Federal research credit carryforward 78,599 2019-2036 Federal foreign tax credit carryforward 2,081 2019-2022 International foreign tax credit carryforward 13,351 Indefinite California research credit carryforward 169,038 Indefinite Other state research credit carryforward 7,482 2023-2032 State net operating loss carryforward 33,201 2024-2035 |
Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit | A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows: As of October 31, 2017 As of October 31, 2016 (in thousands) Beginning balance $ 106,542 $ 132,054 Increases in unrecognized tax benefits related to prior year tax positions 3,117 7,205 Decreases in unrecognized tax benefits related to prior year tax positions (49,456 ) (43,944 ) Increases in unrecognized tax benefits related to current year tax positions 31,007 13,880 Decreases in unrecognized tax benefits related to settlements with taxing authorities (784 ) (333 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (2,635 ) (2,659 ) Increases in unrecognized tax benefits acquired 1,934 49 Changes in unrecognized tax benefits due to foreign currency translation 1,912 290 Ending balance $ 91,637 $ 106,542 |
Subsidiaries Remain Subject to Tax Examination | The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions: Jurisdiction Year(s) Subject to Examination United States Fiscal 2017 California Fiscal years after 2014 Hungary and Ireland Fiscal years after 2010 Japan and Taiwan Fiscal years after 2011 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Components of Other Income (Expense), Net | The following table presents the components of other income (expense), net: Year Ended October 31, 2017 2016 2015 (in thousands) Interest income $ 7,241 $ 3,715 $ 2,785 Interest expense (7,303 ) (3,771 ) (2,814 ) Gain (loss) on assets related to deferred compensation plan 29,606 4,400 3,701 Foreign currency exchange gain (loss) 3,354 156 6,363 Other, net 2,637 7,653 5,109 Total $ 35,535 $ 12,153 $ 15,144 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenues Related to Operations by Geographic Areas | Revenues and property and equipment, net, related to operations in the United States and other by geographic areas were: Year Ended October 31, 2017 2016 2015 (in thousands) Revenue: United States $ 1,357,364 $ 1,205,880 $ 1,143,816 Europe 308,419 287,381 300,352 Japan 247,631 239,964 218,794 Asia Pacific and Other 811,466 689,307 579,249 Consolidated $ 2,724,880 $ 2,422,532 $ 2,242,211 |
Property and Equipment by Geographic Areas | As of October 31, 2017 2016 (in thousands) Property and Equipment, net: United States $ 189,379 $ 186,854 Other countries 76,635 70,181 Total $ 266,014 $ 257,035 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalent maturity period, months | 3 months | ||
Depreciation expenses | $ 82,800,000 | $ 73,800,000 | $ 71,100,000 |
Repair and maintenance costs | 40,600,000 | 38,800,000 | 32,300,000 |
Goodwill impairment loss | 0 | 0 | 0 |
Long-lived assets impairment loss | 0 | 0 | 0 |
Restructuring charges | $ 36,586,000 | 9,633,000 | $ 15,088,000 |
Additional maintenance perpetual license period (in years) | 20 years | ||
Software product warranty period (in days) | 90 days | ||
Perpetual licenses | |||
Summary Of Significant Accounting Policies [Line Items] | |||
License fee percentage | 75.00% | ||
Maintenance fee percentage | 100.00% | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Hardware product warranty period (in months) | 6 months | ||
Intangible Assets | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets amortization period | 1 year | ||
Intangible Assets | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets amortization period | 10 years | ||
Employee Severance and Benefits | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restructuring charges | $ 36,600,000 | ||
Restructuring reserve | $ 17,500,000 | ||
Employee Severance and Benefits | 2016 Restructuring | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restructuring charges | 9,600,000 | ||
Restructuring reserve | 5,700,000 | ||
Payments for restructuring charges | $ 3,900,000 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Components of Accounts Receivables (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | ||||
Accounts receivable | $ 393,229 | $ 394,314 | ||
Unbilled accounts receivable | 63,080 | 47,760 | ||
Total accounts receivable | 456,309 | 442,074 | ||
Less allowance for doubtful accounts | (5,165) | (3,201) | $ (2,561) | $ (2,026) |
Total accounts receivable, net | $ 451,144 | $ 438,873 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at Beginning of Period | $ 3,201 | $ 2,561 | $ 2,026 |
Provisions | 2,149 | 950 | 1,300 |
Write-offs | (185) | (310) | (765) |
Balance at End of Period | $ 5,165 | $ 3,201 | $ 2,561 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Property, Plant and Equipment, Net [Abstract] | ||
Computer and other equipment | $ 540,257 | $ 486,109 |
Buildings | 68,877 | 68,194 |
Furniture and fixtures | 54,882 | 51,589 |
Land | 20,414 | 20,414 |
Leasehold improvements | 153,619 | 136,773 |
Property and equipment gross | 838,049 | 763,079 |
Less accumulated depreciation and amortization | (572,035) | (506,044) |
Total | $ 266,014 | $ 257,035 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Useful Lives of Depreciable Assets (Detail) | 12 Months Ended |
Oct. 31, 2017 | |
Computer and other equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of depreciable assets, years | 3 years |
Computer and other equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of depreciable assets, years | 5 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful lives of depreciable assets, years | 30 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful lives of depreciable assets, years | 5 years |
Leasehold improvements (average) | |
Property, Plant and Equipment [Line Items] | |
Useful lives of depreciable assets, years | 5 years |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Accounts payable and accrued liabilities Current | ||
Payroll and related benefits | $ 382,773 | $ 321,430 |
Other accrued liabilities | 97,119 | 66,276 |
Accounts payable | 19,954 | 13,745 |
Total | $ 499,846 | $ 401,451 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Components of Other Long Term Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Liabilities Other than long term debt non current | ||
Deferred compensation liability | $ 197,542 | $ 163,185 |
Other long-term liabilities | 54,485 | 47,670 |
Total | $ 252,027 | $ 210,855 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Net income | $ 136,563 | $ 266,826 | $ 225,934 |
Weighted average common shares for basic net income per share (in shares) | 150,457 | 152,017 | 154,957 |
Dilutive effect of common share equivalents from equity-based compensation (in shares) | 4,417 | 2,704 | 3,108 |
Weighted average common shares for diluted net income per share (in shares) | 154,874 | 154,721 | 158,065 |
Basic (in USD per share) | $ 0.91 | $ 1.76 | $ 1.46 |
Diluted (in USD per share) | $ 0.88 | $ 1.73 | $ 1.43 |
Anti-dilutive employee stock-based awards excluded (in shares) | 345 | 1,971 | 1,363 |
Business Combinations - 2017 Ac
Business Combinations - 2017 Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,706,974 | $ 2,518,245 | $ 2,471,241 |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, net of cash acquired | 259,700 | ||
Fair value of stock reserved for future use | 4,400 | ||
Goodwill | 178,500 | ||
Business acquisition, goodwill, expected tax deductible amount | 11,900 | ||
Identifiable intangibles assets acquired | 95,700 | ||
Acquisition-related costs | $ 6,500 | ||
Provisional information, initial accounting incomplete, measurement period | 12 months | ||
Minimum | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Definite lived intangible asset amortization period | 1 year | ||
Maximum | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Definite lived intangible asset amortization period | 7 years |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Summary of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 2,518,245 | $ 2,471,241 |
Additions | 178,545 | 39,172 |
Adjustments | 435 | |
Effect of foreign currency translation | 10,184 | 7,397 |
Ending balance | $ 2,706,974 | $ 2,518,245 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 1,166,198 | $ 1,068,428 |
Accumulated Amortization | 912,355 | 801,767 |
Net Assets | 253,843 | 266,661 |
Core-developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 647,975 | 610,812 |
Accumulated Amortization | 526,796 | 460,722 |
Net Assets | 121,179 | 150,090 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 278,811 | 235,997 |
Accumulated Amortization | 166,886 | 139,932 |
Net Assets | 111,925 | 96,065 |
Contract rights intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 174,615 | 171,248 |
Accumulated Amortization | 172,178 | 162,183 |
Net Assets | 2,437 | 9,065 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 25,329 | 20,729 |
Accumulated Amortization | 17,401 | 13,821 |
Net Assets | 7,928 | 6,908 |
In Process Research and Development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 6,600 | |
Accumulated Amortization | 0 | |
Net Assets | 6,600 | |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 32,868 | 29,642 |
Accumulated Amortization | 29,094 | 25,109 |
Net Assets | $ 3,774 | $ 4,533 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 111,708 | $ 133,321 | $ 139,681 |
Core-developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | 65,916 | 85,331 | 76,674 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | 27,340 | 24,594 | 23,104 |
Contract rights intangible | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | 10,886 | 16,543 | 33,350 |
Trademarks and trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | 3,580 | 3,156 | 2,900 |
Capitalized software development costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 3,986 | $ 3,697 | $ 3,653 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 88,907 | |
2,019 | 62,940 | |
2,020 | 44,938 | |
2,021 | 26,708 | |
2,022 | 16,648 | |
2023 and thereafter | 7,102 | |
In process research and development | 6,600 | |
Net Assets | $ 253,843 | $ 266,661 |
Financial Assets and Liabilit48
Financial Assets and Liabilities - Summary of Cash Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Cash Equivalents | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | $ 560,594 | $ 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 | 560,594 | 504,972 |
Short-term Investments | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 140,676 | |
Gross Unrealized Gains | 60 | |
Gross Unrealized Losses Less than 12 Months | (41) | |
Gross Unrealized Losses 12 Months or Longer | 0 | |
Estimated Fair Value | 140,695 | |
Other Long-term Investments | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Non-marketable equity securities, Cost | 7,826 | 9,756 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less Than 12Months | 0 | 0 |
Gross Unrealized Loss Position 12Months Or Longer | 0 | 0 |
Non-marketable equity securities | 7,826 | 9,756 |
Money market funds | Cash Equivalents | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 560,594 | 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 | 560,594 | 499,274 |
Commercial paper | Cash Equivalents | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 1,498 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses Less than 12 Months | 0 | |
Gross Unrealized Losses 12 Months or Longer | 0 | |
Estimated Fair Value | 1,498 | |
Commercial paper | Short-term Investments | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 25,430 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses Less than 12 Months | 0 | |
Gross Unrealized Losses 12 Months or Longer | 0 | |
Estimated Fair Value | 25,431 | |
Certificates of deposit | Cash Equivalents | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 4,200 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses Less than 12 Months | 0 | |
Gross Unrealized Losses 12 Months or Longer | 0 | |
Estimated Fair Value | 4,200 | |
Certificates of deposit | Short-term Investments | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 12,849 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses Less than 12 Months | 0 | |
Gross Unrealized Losses 12 Months or Longer | 0 | |
Estimated Fair Value | 12,849 | |
U.S. government agency securities | Short-term Investments | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 13,607 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses Less than 12 Months | (8) | |
Gross Unrealized Losses 12 Months or Longer | 0 | |
Estimated Fair Value | 13,603 | |
Corporate debt securities | Short-term Investments | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 58,753 | |
Gross Unrealized Gains | 43 | |
Gross Unrealized Losses Less than 12 Months | (18) | |
Gross Unrealized Losses 12 Months or Longer | 0 | |
Estimated Fair Value | 58,778 | |
Asset-backed securities | Short-term Investments | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 22,146 | |
Gross Unrealized Gains | 12 | |
Gross Unrealized Losses Less than 12 Months | (12) | |
Gross Unrealized Losses 12 Months or Longer | 0 | |
Estimated Fair Value | 22,146 | |
Non-U.S. government agency securities | Short-term Investments | ||
Cash, Cash Equivalents and Investments [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 | |
Other | Short-term Investments | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Available-for-sale Securities, Cost | 4,488 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses Less than 12 Months | 0 | |
Gross Unrealized Losses 12 Months or Longer | 0 | |
Estimated Fair Value | 4,488 | |
Non-Marketable Equity Securities | Other Long-term Investments | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Non-marketable equity securities, Cost | 7,826 | 9,756 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less Than 12Months | 0 | 0 |
Gross Unrealized Loss Position 12Months Or Longer | 0 | 0 |
Non-marketable equity securities | $ 7,826 | $ 9,756 |
Financial Assets and Liabilit49
Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2017 | Dec. 13, 2017 | |
Financial Assets And Liabilities [Line Items] | ||
Derivative, Maximum Shipment Period For Entry Into Foreign Currency Forward Contract | 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] | ||
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 1 month | |
Foreign currency derivative contracts | Minimum | ||
Financial Assets And Liabilities [Line Items] | ||
Forward contracts terms (in months) | 1 month | |
Foreign currency derivative contracts | Maximum | ||
Financial Assets And Liabilities [Line Items] | ||
Forward contracts terms (in months) | 22 months | |
Foreign currency derivative contracts | Cash Flow Hedging | Maximum | ||
Financial Assets And Liabilities [Line Items] | ||
Forward contracts terms (in months) | 3 years | |
Foreign Exchange Forward | Cash Flow Hedging | Maximum | ||
Financial Assets And Liabilities [Line Items] | ||
Forward contracts terms (in months) | 22 months | |
Foreign Exchange Contracts | Maximum | ||
Financial Assets And Liabilities [Line Items] | ||
Duration of foreign exchange forward contracts | 1 year | |
Unsecured Debt | Revolving Credit Facility | The Credit Agreement | ||
Financial Assets And Liabilities [Line Items] | ||
Short-term line of credit | $ 0 | |
Subsequent Event | Unsecured Debt | Revolving Credit Facility | The Credit Agreement | ||
Financial Assets And Liabilities [Line Items] | ||
Short-term line of credit | $ 450,000,000 |
Financial Assets and Liabilit50
Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Financial Assets And Liabilities [Abstract] | |||
Gain (loss) recorded in other income (expense), net | $ 1,359 | $ (4,533) | $ (5,554) |
Financial Assets and Liabilit51
Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Financial Assets And Liabilities [Abstract] | ||
Total gross notional amount | $ 955,139 | $ 758,246 |
Net fair value | $ 14,052 | $ (15,358) |
Financial Assets and Liabilit52
Financial Assets and Liabilities - Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Designated As Hedging Instrument | Other current assets | ||
Financial Assets And Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | $ 16,582 | $ 4,625 |
Designated As Hedging Instrument | Accrued liabilities | ||
Financial Assets And Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | 2,485 | 19,910 |
Non-Designated Hedging Instrument | Other current assets | ||
Financial Assets And Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | 15 | 27 |
Non-Designated Hedging Instrument | Accrued liabilities | ||
Financial Assets And Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | $ 59 | $ 101 |
Financial Assets and Liabilit53
Financial Assets and Liabilities - Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Financial Assets And Liabilities [Line Items] | |||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | $ 20,928 | $ (25,839) | $ (18,623) |
Amount of gain (loss) reclassified from OCI (effective portion) | (3,564) | (20,710) | (14,923) |
Foreign Exchange Contracts | Revenues | |||
Financial Assets And Liabilities [Line Items] | |||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 7,582 | (14,580) | 3,982 |
Amount of gain (loss) reclassified from OCI (effective portion) | (2,759) | (8,585) | 9,270 |
Foreign Exchange Contracts | Operating expenses | |||
Financial Assets And Liabilities [Line Items] | |||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 13,346 | (11,259) | (22,605) |
Amount of gain (loss) reclassified from OCI (effective portion) | $ (805) | $ (12,125) | $ (24,193) |
Financial Assets and Liabilit54
Financial Assets and Liabilities - Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) (Detail) - Foreign Exchange Contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Financial Assets And Liabilities [Line Items] | |||
Amount of gain (loss) recognized in income statement on derivatives (ineffective portion) | $ 311 | $ 1,468 | $ 878 |
Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing) | $ 3,018 | $ 6,058 | $ 3,704 |
Financial Assets and Liabilit55
Financial Assets and Liabilities - Credit and Term Loan Facilities, Additional Information (Detail) - USD ($) | Nov. 28, 2016 | Dec. 13, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Jan. 31, 2017 | May 19, 2015 |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 134,063,000 | $ 0 | |||||
Proceeds from credit facility | 320,000,000 | 185,000,000 | $ 460,000,000 | ||||
Revolving Credit Facility | The Credit Agreement | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured revolving credit facility maximum borrowing capacity | $ 650,000,000 | ||||||
Senior unsecured term loan facility additional borrowings | 150,000,000 | ||||||
Short-term line of credit | $ 0 | ||||||
Revolving Credit Facility | The Credit Agreement | Minimum | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fees percentage | 0.125% | ||||||
Revolving Credit Facility | The Credit Agreement | Maximum | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fees percentage | 0.20% | ||||||
Revolving Credit Facility | 2015 Agreement | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured revolving credit facility maximum borrowing capacity | $ 500,000,000 | ||||||
Short-term line of credit | 205,000,000 | ||||||
Term Loan | The Credit Agreement | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured term loan facility, face amount | $ 150,000,000 | $ 150,000,000 | |||||
Long-term Debt | $ 144,000,000 | ||||||
Senior unsecured term loan facility | 144,375,000 | ||||||
Long-term debt | $ 134,100,000 | ||||||
Term Loan | 2015 Agreement | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured term loan facility | $ 0 | ||||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | The Credit Agreement | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 1.00% | ||||||
London Interbank Offered Rate (LIBOR) | Term Loan | The Credit Agreement | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 1.125% | ||||||
Subsequent Event | Revolving Credit Facility | The Credit Agreement | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Short-term line of credit | $ 450,000,000 | ||||||
Proceeds from credit facility | $ 450,000,000 |
Financial Assets and Liabilit56
Financial Assets and Liabilities - Schedule of Maturities of Term Loan (Details) - Term Loan - Unsecured Debt - The Credit Agreement $ in Thousands | Oct. 31, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,018 | $ 10,313 |
2,019 | 14,062 |
2,020 | 17,813 |
2,021 | 27,187 |
2,022 | 75,000 |
Total | $ 144,375 |
Fair Value Measures - Assets an
Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 774,732 | $ 813,504 |
Total liabilities | 200,086 | 183,195 |
Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 197,542 | 163,185 |
Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 197,542 | 163,185 |
Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 16,596 | 4,652 |
Accounts payable and accrued liabilities | 2,544 | 20,010 |
Money market funds | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 560,594 | 499,274 |
Commercial paper | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,498 | |
Commercial paper | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 25,431 | |
U.S. government agency securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 13,603 | |
Certificates of deposit | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 4,200 | |
Certificates of deposit | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 12,849 | |
Corporate debt securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 58,778 | |
Asset-backed securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 22,146 | |
Non-U.S. government agency securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 3,400 | |
Other | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 4,488 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 758,136 | 666,947 |
Total liabilities | 197,542 | 163,185 |
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 | 197,542 | 163,185 |
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 | 197,542 | 163,185 |
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) | Money market funds | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 560,594 | 499,274 |
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 | |
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 | |
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 | |
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 | |
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 | |
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 | |
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 | |
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) | Other | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 4,488 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 16,596 | 146,557 |
Total liabilities | 2,544 | 20,010 |
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) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 16,596 | 4,652 |
Accounts payable and accrued liabilities | 2,544 | 20,010 |
Significant Other Observable Inputs (Level 2) | Money market funds | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial paper | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,498 | |
Significant Other Observable Inputs (Level 2) | Commercial paper | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 25,431 | |
Significant Other Observable Inputs (Level 2) | U.S. government agency securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 13,603 | |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 4,200 | |
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 | 12,849 | |
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 | 58,778 | |
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 | 22,146 | |
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 | |
Significant Other Observable Inputs (Level 2) | Other | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 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) | 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) | 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) | 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 | |
Significant Unobservable Inputs (Level 3) | Commercial paper | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 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 | |
Significant Unobservable Inputs (Level 3) | Certificates of deposit | Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 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 | |
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 | |
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 | |
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) | Other | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | $ 0 |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||
Write-down of long-term investments | $ 1,300 | $ 0 | $ 0 |
Fair Value Measures - Non-Marke
Fair Value Measures - Non-Marketable Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Write-down of long-term investments | $ (1,300) | $ 0 | $ 0 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-Marketable equity securities | 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 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) ft² in Thousands, $ in Millions | Oct. 10, 2014USD ($) | Oct. 04, 2012lawsuitpatent | Oct. 31, 2017USD ($)ft²Building | Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Mar. 16, 2017USD ($) |
Loss Contingencies [Line Items] | ||||||
Rent expenses | $ 68.1 | $ 63.9 | $ 67.6 | |||
Number of buildings to be leased | Building | 2 | |||||
Total square feet of buildings | ft² | 341 | |||||
Lease renewal term, in years | 10 years | |||||
Second lease renewal term, years | 9 years | |||||
Pending Litigation | Mentor Patent Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency patents infringement lawsuits | lawsuit | 3 | |||||
Loss contingency, patents allegedly infringed | patent | 3 | |||||
Loss contingency, value of damages sought | $ 36 | |||||
Jury verdict assessing damages, value | $ 39 |
Commitments and Contingencies61
Commitments and Contingencies - Minimum Lease Commitments (Detail) $ in Thousands | Oct. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum lease payments, 2018 | $ 56,879 |
Minimum lease payments, 2019 | 51,350 |
Minimum lease payments, 2020 | 39,594 |
Minimum lease payments, 2021 | 31,797 |
Minimum lease payments, 2022 | 27,438 |
Minimum lease payments, thereafter | 147,271 |
Minimum lease payments, total | 354,329 |
Sublease income, 2018 | 2,977 |
Sublease income, 2019 | 3,208 |
Sublease income, 2020 | 3,050 |
Sublease income, 2021 | 2,184 |
Sublease income, 2022 | 1,681 |
Sublease income, thereafter | 566 |
Sublease income, total | 13,666 |
Net, 2018 | 53,902 |
Net, 2019 | 48,142 |
Net, 2020 | 36,544 |
Net, 2021 | 29,613 |
Net, 2022 | 25,757 |
Net, Thereafter | 146,705 |
Net, Total | $ 340,663 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative currency translation adjustments | $ (70,407) | $ (84,700) |
Unrealized gain (loss) on derivative instruments, net of taxes | 4,428 | (19,896) |
Unrealized gain (loss) on available-for-sale securities, net of taxes | 0 | 19 |
Total accumulated other comprehensive income (loss) | $ (65,979) | $ (104,577) |
Accumulated Other Comprehensi63
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 | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications into net income | $ (3,572) | $ (20,692) | $ (14,882) |
Revenues | Gain (loss) on cash flow hedges, net of taxes | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications into net income | (2,759) | (8,585) | 9,270 |
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 | (805) | (12,125) | (24,193) |
Other income (expense) | Gain (loss) on available-for-sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications into net income | $ (8) | $ 18 | $ 41 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) | Dec. 13, 2017 | Nov. 30, 2017 | Sep. 30, 2017 | Jul. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Dec. 31, 2016 | Nov. 30, 2017 | Jul. 31, 2017 | Feb. 28, 2017 | May 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Jun. 15, 2017 |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Stock repurchase program authorized amount | $ 500,000,000 | $ 500,000,000 | |||||||||||||
Remaining amount available for further repurchases | $ 400,000,000 | ||||||||||||||
Average purchase price (in USD per share) | $ 70.21 | $ 49.37 | $ 45.84 | ||||||||||||
Purchases of treasury stock (in shares) | 5,413,000 | 8,506,000 | 5,672,000 | ||||||||||||
Accelerated Share Repurchase Program December 2016 | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Stock repurchase program authorized amount | $ 100,000,000 | ||||||||||||||
Average purchase price (in USD per share) | $ 60.53 | ||||||||||||||
Stock repurchase program, prepayment during period | 100,000,000 | ||||||||||||||
Accelerated share repurchase, initial share delivery, amount | $ 80,000,000 | ||||||||||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 20,000,000 | ||||||||||||||
Purchases of treasury stock (in shares) | 1,700,000 | ||||||||||||||
Accelerated Share Repurchase Program February 2017 | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Stock repurchase program authorized amount | 100,000,000 | $ 100,000,000 | |||||||||||||
Average purchase price (in USD per share) | $ 72.02 | ||||||||||||||
Stock repurchase program, prepayment during period | 100,000,000 | ||||||||||||||
Accelerated share repurchase, initial share delivery, amount | $ 80,000,000 | $ 80,000,000 | |||||||||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 20,000,000 | ||||||||||||||
Purchases of treasury stock (in shares) | 1,400,000 | ||||||||||||||
Accelerated Share Repurchase Program May 2017 | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Stock repurchase program authorized amount | 100,000,000 | $ 100,000,000 | |||||||||||||
Average purchase price (in USD per share) | $ 73.49 | ||||||||||||||
Stock repurchase program, prepayment during period | 100,000,000 | ||||||||||||||
Accelerated share repurchase, initial share delivery, amount | $ 80,000,000 | $ 80,000,000 | |||||||||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 20,000,000 | ||||||||||||||
Purchases of treasury stock (in shares) | 1,400,000 | ||||||||||||||
Accelerated Share Repurchase Program September 2017 | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Stock repurchase program authorized amount | $ 100,000,000 | ||||||||||||||
Stock repurchase program, prepayment during period | 100,000,000 | ||||||||||||||
Accelerated share repurchase, initial share delivery, amount | $ 80,000,000 | ||||||||||||||
Subsequent Event | Accelerated Share Repurchase Program September 2017 | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Share repurchases settlement of equity forward (in shares) | 181,988 | ||||||||||||||
Average purchase price (in USD per share) | $ 83.80 | ||||||||||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 20,000,000 | ||||||||||||||
Purchases of treasury stock (in shares) | 1,200,000 | ||||||||||||||
Subsequent Event | Accelerated Share Repurchase Program December 2017 | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Stock repurchase program authorized amount | $ 200,000,000 | ||||||||||||||
Stock repurchase program, prepayment during period | 200,000,000 | ||||||||||||||
Accelerated share repurchase, initial share delivery, amount | 160,000,000 | ||||||||||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 40,000,000 |
Stock Repurchase Program - Stoc
Stock Repurchase Program - Stock Repurchase Activities (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Stock Repurchase Program | |||
Purchases of treasury stock (in shares) | 5,413 | 8,506 | 5,672 |
Average purchase price (in USD per share) | $ 70.21 | $ 49.37 | $ 45.84 |
Aggregate purchase price | $ 380,000 | $ 420,000 | $ 260,000 |
Reissuance of treasury stock | 4,404 | 4,803 | 4,864 |
Employee Benefit Plans (Employe
Employee Benefit Plans (Employee Stock Purchase Plan) - Additional Information (Detail) - $ / shares shares in Millions | 12 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Mar. 29, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Threshold for employee stock purchases under ESPP, maximum value | 85.00% | |||
ESPP offering period (in years) | 2 years | |||
Increase in number of shares authorized for issuance under plan (in shares) | 5 | |||
Shares issued (in shares) | 1.6 | 1.6 | 1.7 | |
Weighted average purchase price of stock purchased (in USD per share) | $ 40.85 | $ 37.77 | $ 31.55 | |
Shares reserved for future issuance under the ESPP (in shares) | 7.1 |
Employee Benefit Plans (Equity
Employee Benefit Plans (Equity Compensation Plans) - Additional Information (Detail) - USD ($) $ in Millions | Apr. 06, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 |
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate restricted stock units outstanding (in shares) | 3,843,000 | 4,035,000 | 3,928,000 | 3,947,000 | |
Restricted Stock Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, (in years) | 3 years | ||||
Restricted Stock Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, (in years) | 4 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate restricted stock units outstanding (in shares) | 38,000 | 43,000 | |||
Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for future grant (in shares) | 12,583,000 | 11,244,000 | 11,883,000 | 12,155,000 | |
2006 Employee Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based compensation arrangement for options contractual term (in years) | 7 years | ||||
Vesting period, (in years) | 4 years | ||||
Additional reserved for future issuance under the 2006 Employee Plan (in shares) | 5,000,000 | ||||
Shares available for future grant (in shares) | 12,600,000 | ||||
2006 Employee Equity Incentive Plan | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate restricted stock units outstanding (in shares) | 3,800,000 | ||||
2006 Employee Equity Incentive Plan | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate stock options outstanding (in shares) | 6,100,000 | ||||
2017 Directors Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reserved for future issuance (in shares) | 450,000 | 430,376 | |||
Restricted stock awards issued (in shares) | 19,624 | ||||
Aggregate grant date fair value of restricted stock awards | $ 1.4 | ||||
2017 Directors Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, (in years) | 3 years | ||||
Aggregate restricted stock units outstanding (in shares) | 19,624 | ||||
2017 Directors Plan | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate stock options outstanding (in shares) | 0 | ||||
2005 Non Employee Directors Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate restricted stock units outstanding (in shares) | 18,354 | ||||
2005 Non Employee Directors Plan | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate stock options outstanding (in shares) | 107,207 | ||||
Aggregate stock options granted under 2005 director plan (in shares) | 188,709 | ||||
Fair value of option shares granted | $ 6.7 | ||||
2005 Non Employee Directors Plan | Stock Option | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, (in years) | 3 years | ||||
2005 Non Employee Directors Plan | Stock Option | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, (in years) | 4 years | ||||
Other Assumed Stock Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Assumed shares remaining outstanding (in shares) | 400,000 |
Employee Benefit Plans (Restric
Employee Benefit Plans (Restricted Stock Units) - Additional Information (Detail) $ / shares in Units, $ in Millions | Mar. 29, 2016 | Apr. 02, 2015 | Apr. 03, 2012 | Oct. 31, 2017USD ($)$ / shares |
Schedule Of Restricted Stock [Line Items] | ||||
Closing stock price (in USD per share) | $ / shares | $ 87.19 | |||
Unamortized share-based compensation expense | $ | $ 215.5 | |||
Weighted-average period of total compensation costs to be recognized in years | 2 years 6 months | |||
Restricted Stock Units | ||||
Schedule Of Restricted Stock [Line Items] | ||||
Share reserve ratio | 1.60 | 1.50 | 1.25 | |
Revised share reserve ratio | 1.70 | 1.60 | 1.50 | |
Restricted Stock Units | Minimum | ||||
Schedule Of Restricted Stock [Line Items] | ||||
Vesting period, (in years) | 3 years | |||
Restricted Stock Units | Maximum | ||||
Schedule Of Restricted Stock [Line Items] | ||||
Vesting period, (in years) | 4 years |
Employee Benefit Plans - Restri
Employee Benefit Plans - Restricted Stock Units (Detail) - Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 4,035 | 3,928 | 3,947 | |
Granted (in shares) | 1,584 | 1,765 | 1,707 | |
Vested (in shares) | (1,536) | (1,547) | (1,522) | |
Forfeited (in shares) | (240) | (111) | (204) | |
Ending balance (in shares) | 3,843 | 4,035 | 3,928 | 3,947 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Grant Date Fair Value, Beginning balance (in USD per share) | $ 46.37 | $ 41.61 | $ 35.29 | |
Granted (in USD per share) | 70.49 | 49.59 | 48.13 | |
Vested (in USD per share) | 43.53 | 38.33 | 33.05 | |
Forfeited (in USD per share) | 49.36 | 43.12 | 37.68 | |
Weighted Average Grant Date Fair Value, Ending balance (in USD per share) | $ 57.26 | $ 46.37 | $ 41.61 | $ 35.29 |
Weighted Average Remaining Contractual Life (In Years) | 1 year 6 months 15 days | 1 year 6 months 22 days | 1 year 6 months 15 days | 1 year 6 months 11 days |
Aggregate Fair Value | $ 110,103 | $ 79,558 | $ 73,677 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Options and Restricted Stock Units Under all Equity Plans (Except 2005 Director's Plan) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Weighted- Average Exercise Price per Share, Options exercised (in USD per share) | $ 34.56 | $ 30.06 | $ 26.06 | |
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Available for grant, beginning balance (in shares) | 11,244 | 11,883 | 12,155 | |
Available for Grant, Options granted (in shares) | (1,505) | (1,685) | (1,908) | |
Available for Grant, Options canceled/forfeited/expired (in shares) | 129 | 33 | 230 | |
Available for Grant, Restricted stock units granted (in shares) | (2,694) | (2,967) | (2,707) | |
Available for Grant, Restricted stock units forfeited (in shares) | 409 | 180 | 313 | |
Available for Grant, Additional shares reserved (in shares) | 5,000 | 3,800 | 3,800 | |
Available for grants, ending balance (in shares) | 12,583 | 11,244 | 11,883 | 12,155 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options Outstanding, Options granted (in shares) | 1,536 | 1,685 | 1,942 | |
Options Outstanding, Options assumed (in shares) | 154 | 133 | ||
Options Outstanding, Options exercised (in shares) | (1,770) | (2,154) | (2,125) | |
Options Outstanding, Options canceled/forfeited/expired (in shares) | (145) | (65) | (411) | |
Options Outstanding, Vested and expected to vest (in shares) | 6,530 | |||
Options Outstanding, Exercisable (in shares) | 3,252 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Weighted- Average Exercise Price per Share, Beginning balance (in USD per share) | $ 39.59 | $ 34.94 | $ 29.81 | |
Weighted- Average Exercise Price per Share, Options granted (in USD per share) | 68.18 | 47.39 | 45.14 | |
Weighted- Average Exercise Price per Share, Options assumed (in USD per share) | 34.52 | 38.97 | ||
Weighted- Average Exercise Price per Share, Options exercised (in USD per share) | 34.56 | 30.06 | 26.06 | |
Weighted- Average Exercise Price per Share, Options canceled/forfeited/expired (in USD per share) | 47.17 | 35.31 | 33.51 | |
Weighted- Average Exercise Price per Share, Ending balance (in USD per share) | 46.83 | $ 39.59 | $ 34.94 | $ 29.81 |
Weighted- Average Exercise Price per Share, Vested and expected to vest (in USD per share) | 46.83 | |||
Weighted- Average Exercise Price per Share, Exercisable (in USD per share) | $ 39.72 | |||
Weighted Average Remaining Contractual Life, options outstanding | 4 years 7 months 6 days | 4 years 7 months 24 days | 4 years 8 months 1 day | 4 years 7 months 28 days |
Weighted-Average Remaining Contractual Life , Vested and expected to vest | 4 years 7 months 6 days | |||
Weighted-Average Remaining Contractual Life , Exercisable | 3 years 7 months 21 days | |||
Aggregate Intrinsic Value, Beginning balance | $ 126,850 | $ 109,627 | $ 86,537 | |
Aggregate Intrinsic Value, ending Balance | 263,555 | $ 126,850 | $ 109,627 | $ 86,537 |
Aggregate Intrinsic Value, Vested and expected to vest | 263,555 | |||
Aggregate Intrinsic Value, Exercisable | $ 154,357 | |||
Stock Option | All Stock Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, beginning balance (in shares) | 6,755 | 7,289 | 7,750 | |
Options outstanding, ending balance (in shares) | 6,530 | 6,755 | 7,289 | 7,750 |
Employee Benefit Plans - Pretax
Employee Benefit Plans - Pretax Intrinsic Value of Options Exercised and Their Average Exercise Prices (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value | $ 67,089 | $ 51,408 | $ 44,104 |
Average exercise price per share (in USD per share) | $ 34.56 | $ 30.06 | $ 26.06 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Restricted Stock Award Activities Under Twenty Zero Five Directors Plan (Detail) - Restricted Stock shares in Thousands | 12 Months Ended |
Oct. 31, 2017$ / sharesshares | |
Restricted shares | |
Beginning balance (in shares) | shares | 43 |
Granted (in shares) | shares | 20 |
Vested (in shares) | shares | (22) |
Forfeited (in shares) | shares | (3) |
Ending balance (in shares) | shares | 38 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Beginning balance (in USD per share) | $ / shares | $ 45.97 |
Granted (in USD per share) | $ / shares | 71.34 |
Vested (in USD per share) | $ / shares | 44.33 |
Forfeited (in USD per share) | $ / shares | 47.65 |
Weighted Average Grant Date Fair Value, Ending balance (in USD per share) | $ / shares | $ 59.89 |
Employee Benefit Plans - Stoc73
Employee Benefit Plans - Stock Option Plans and Stock Purchase Rights Granted Under ESPP (Detail) - $ / shares | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Stock Option | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Expected life (in years) | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 3 months 18 days |
Risk-free interest rate, minimum | 1.73% | 1.06% | 1.24% |
Risk-free interest rate, maximum | 2.06% | 1.63% | 1.58% |
Volatility, minimum | 18.51% | 19.21% | 16.92% |
Volatility, maximum | 19.67% | 21.62% | 21.76% |
Weighted average estimated fair value (in USD per share) | $ 13.56 | $ 8.97 | $ 8.77 |
Employee Stock Purchase Plan | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Risk-free interest rate, minimum | 0.82% | 0.53% | 0.12% |
Risk-free interest rate, maximum | 1.37% | 0.86% | 0.75% |
Volatility, minimum | 17.20% | 17.03% | 18.01% |
Volatility, maximum | 19.99% | 25.46% | 21.60% |
Weighted average estimated fair value (in USD per share) | $ 18.77 | $ 12.75 | $ 11.11 |
Employee Stock Purchase Plan | Minimum | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Expected life (in years) | 6 months | 6 months | 6 months |
Employee Stock Purchase Plan | Maximum | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Expected life (in years) | 2 years | 2 years | 2 years |
Employee Benefit Plans - Stoc74
Employee Benefit Plans - Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | $ 108,294 | $ 97,583 | $ 86,400 |
Income tax benefit | (30,950) | (25,967) | (20,071) |
Stock compensation expense after taxes | 77,344 | 71,616 | 66,329 |
Cost of products | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | 12,553 | 11,006 | 9,162 |
Cost of maintenance and service | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | 3,918 | 2,418 | 2,164 |
Research and development expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | 52,933 | 49,511 | 43,431 |
Sales and marketing expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | 21,001 | 19,690 | 17,744 |
General and administrative expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | $ 17,889 | $ 14,958 | $ 13,899 |
Employee Benefit Plans - (Other
Employee Benefit Plans - (Other Retirement Plans) - Additional Information (Detail) | 12 Months Ended | |||
Oct. 31, 2017USD ($) | Oct. 31, 2017CAD | Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | |
Other Retirement Plans [Line Items] | ||||
Deferred percentage of annual cash base compensation | 50.00% | 50.00% | ||
Deferred percentage of variable cash compensation | 100.00% | 100.00% | ||
Other Retirement Plans | ||||
Other Retirement Plans [Line Items] | ||||
Employer contribution | $ 57,400,000 | $ 53,400,000 | $ 40,000,000 | |
Maximum pretax annual company contribution match per employee | $ 3,000 | CAD 4,000 |
Employee Benefit Plans - Deferr
Employee Benefit Plans - Deferred Plan Assets and Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Plan assets recorded in other long-term assets | $ 197,542 | $ 163,185 |
Plan liabilities recorded in other long-term liabilities | $ 197,542 | $ 163,185 |
Employee Benefit Plans - Summ77
Employee Benefit Plans - Summary of Impact of Deferred Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Increase (reduction) to cost of revenue and operating expense | $ 29,606 | $ 4,400 | $ 3,701 |
Other income (expense), net | 29,606 | 4,400 | 3,701 |
Net increase (decrease) to net income | $ 0 | $ 0 | $ 0 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Total Income Before Provision for Income Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (2,702) | $ 22,134 | $ 42,571 |
Foreign | 385,800 | 307,414 | 239,039 |
Income (loss) before provision for income taxes | $ 383,098 | $ 329,548 | $ 281,610 |
Income Taxes - Components of (B
Income Taxes - Components of (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 25,420 | $ (6,106) | $ (21,911) |
State | 5,565 | 2,670 | 1,385 |
Foreign | 92,498 | 80,195 | 39,319 |
Current income tax expense (benefit), total | 123,483 | 76,759 | 18,793 |
Federal | 95,003 | (23,510) | 44,462 |
State | 24,440 | 11,950 | (2,282) |
Foreign | 3,609 | (2,477) | (5,297) |
Deferred income tax expense (benefit), total | 123,052 | (14,037) | 36,883 |
Provision (benefit) for income taxes | $ 246,535 | $ 62,722 | $ 55,676 |
Income Taxes - Rate Reconciliat
Income Taxes - Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax | $ 134,084 | $ 115,343 | $ 98,564 |
State tax (benefit), net of federal effect | (20,071) | (14,492) | (7,186) |
Tax credits | (24,365) | (36,979) | (13,301) |
Tax on foreign earnings less than U.S. statutory tax | (52,413) | (68,246) | (56,536) |
Tax settlements | (7,057) | (16,479) | (6,251) |
Stock-based compensation | (26,205) | 5,709 | 5,406 |
Changes in valuation allowance | 47,745 | 25,590 | 2,206 |
Integration of acquired technologies | 36,443 | 37,525 | 33,015 |
Undistributed earnings of foreign subsidiaries | (9,610) | 9,940 | 0 |
Tax impact of repatriation | 166,152 | 0 | 0 |
Other | 1,832 | 4,811 | (241) |
Provision (benefit) for income taxes | $ 246,535 | 62,722 | 55,676 |
Tax benefit, research, amount | $ 37,100 | $ 12,400 |
Income Taxes - Additional Info
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Nov. 01, 2016 | |
Taxes [Line Items] | ||||||
Integration of acquired technologies, tax recognition period | 5 years | |||||
Deferred tax assets, net, noncurrent | $ 243,989,000 | $ 243,989,000 | $ 281,926,000 | |||
Retained earnings adjustment due to adoption of an accounting standard related to stock-based compensation | 106,489,000 | 106,489,000 | ||||
Share based compensation excess tax benefit | 38,100,000 | |||||
Foreign earnings repatriated | 825,000,000 | |||||
Undistributed foreign earnings | 598,300,000 | 598,300,000 | ||||
Tax on deferred undistributed foreign earnings | 110,000,000 | |||||
Increase in gross unrecognized tax benefits | 14,900,000 | |||||
Gross unrecognized tax benefits | 91,637,000 | 91,637,000 | 106,542,000 | $ 132,054,000 | ||
Unrecognized tax benefits affecting effective tax rate | 88,500,000 | 88,500,000 | 106,500,000 | |||
The sum of the amounts of estimated penalties and interest recognized in the period arising from income tax examinations | 200,000 | 800,000 | 600,000 | |||
The amount of estimated penalties and interest accrued as of the balance sheet date arising from income tax examinations | 3,200,000 | 3,200,000 | 3,100,000 | |||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 784,000 | 333,000 | ||||
Cash paid for income taxes during the year: | 103,478,000 | 69,447,000 | 59,731,000 | |||
California Franchise Tax Board | ||||||
Taxes [Line Items] | ||||||
Increase in valuation allowance | 13,200,000 | |||||
California Franchise Tax Board | fiscal year 2012 to 2014 | ||||||
Taxes [Line Items] | ||||||
Increase in valuation allowance | 13,200,000 | |||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 14,600,000 | |||||
Tax impact from tax settlements | 400,000 | |||||
Decrease in deferred tax assets | 1,100,000 | |||||
California Franchise Tax Board | fiscal year 2009 to 2011 | ||||||
Taxes [Line Items] | ||||||
Increase in valuation allowance | 5,400,000 | |||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 10,300,000 | |||||
Decrease in deferred tax assets | 4,900,000 | |||||
Internal Revenue Service (IRS) | Fiscal Year 2016 | ||||||
Taxes [Line Items] | ||||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 4,600,000 | |||||
Internal Revenue Service (IRS) | Fiscal Year 2015 | ||||||
Taxes [Line Items] | ||||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 20,700,000 | |||||
Tax impact from tax settlements | 7,000,000 | |||||
Internal Revenue Service (IRS) | Fiscal Year 2014 | ||||||
Taxes [Line Items] | ||||||
Tax impact from tax settlements | 3,200,000 | |||||
Taiwan | Fiscal Year 2011 | ||||||
Taxes [Line Items] | ||||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 700,000 | |||||
Cash paid for income taxes during the year: | 300,000 | |||||
Taiwan | Fiscal Year 2014 | ||||||
Taxes [Line Items] | ||||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 1,200,000 | |||||
Tax impact from tax settlements | 10,900,000 | |||||
Taiwan | Fiscal Year 2013 | ||||||
Taxes [Line Items] | ||||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 1,200,000 | |||||
Hungary | Fiscal Year 2011 to 2013 | ||||||
Taxes [Line Items] | ||||||
The sum of the amounts of estimated penalties and interest recognized in the period arising from income tax examinations | $ 18,000,000 | |||||
Proposed tax assessment | 47,000,000 | |||||
Hungary | Fiscal Year 2015 and Beyond | ||||||
Taxes [Line Items] | ||||||
Income tax examination, estimate of possible loss | $ 18,000,000 | |||||
KOREA, REPUBLIC OF | Fiscal years 2012 to 2016 | ||||||
Taxes [Line Items] | ||||||
Tax impact from tax settlements | 7,900,000 | |||||
INDIA | Fiscal 2010 to 2015 | ||||||
Taxes [Line Items] | ||||||
Tax impact from tax settlements | $ 4,600,000 | |||||
Fiscal Year 2012 | Taiwan | ||||||
Taxes [Line Items] | ||||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | $ 1,100,000 | |||||
Minimum | ||||||
Taxes [Line Items] | ||||||
Estimated potential decrease in underlying unrecognized tax benefits, minimum | 0 | 0 | ||||
Maximum | ||||||
Taxes [Line Items] | ||||||
Estimated potential decrease in underlying unrecognized tax benefits, minimum | 32,000,000 | 32,000,000 | ||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09 | ||||||
Taxes [Line Items] | ||||||
Deferred tax assets, net, noncurrent | $ 106,500,000 | |||||
Research Tax Credit Carryforward | California Franchise Tax Board | ||||||
Taxes [Line Items] | ||||||
Increase in valuation allowance | 47,900,000 | |||||
Retained Earnings | ||||||
Taxes [Line Items] | ||||||
Retained earnings adjustment due to adoption of an accounting standard related to stock-based compensation | $ 106,107,000 | $ 106,107,000 | ||||
Retained Earnings | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09 | ||||||
Taxes [Line Items] | ||||||
Retained earnings adjustment due to adoption of an accounting standard related to stock-based compensation | $ 106,500,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Deferred tax assets: | ||
Accruals and reserves | $ 36,906 | $ 34,324 |
Deferred revenue | 42,420 | 42,497 |
Deferred compensation | 67,145 | 64,321 |
Capitalized costs | 51,679 | 54,123 |
Capitalized research and development costs | 12,508 | 18,896 |
Stock-based compensation | 23,679 | 22,298 |
Tax loss carryovers | 23,623 | 31,748 |
Foreign tax credit carryovers | 7,662 | 10,369 |
Research and other tax credit carryovers | 157,817 | 136,690 |
Other | 0 | 5,161 |
Gross deferred tax assets | 423,439 | 420,427 |
Valuation allowance | (121,770) | (73,909) |
Total deferred tax assets | 301,669 | 346,518 |
Deferred tax liabilities: | ||
Intangible assets | 62,299 | 54,604 |
Undistributed earnings of foreign subsidiaries | 1,300 | 10,888 |
Other | 1,758 | 0 |
Total deferred tax liabilities | 65,357 | 65,492 |
Net deferred tax assets | $ 236,312 | $ 281,026 |
Income Taxes - Tax Loss and Cre
Income Taxes - Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities (Detail) $ in Thousands | Oct. 31, 2017USD ($) |
Federal | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Net operating loss carryforward | $ 57,265 |
Credit carryforward | 78,599 |
Federal foreign tax credit carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Credit carryforward | 2,081 |
International foreign tax credit carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Credit carryforward | 13,351 |
California research credit carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Credit carryforward | 169,038 |
Other state research credit carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Credit carryforward | 7,482 |
State net operating loss carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Net operating loss carryforward | $ 33,201 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Beginning balance | $ 106,542 | $ 132,054 |
Increases in unrecognized tax benefits related to prior year tax positions | 3,117 | 7,205 |
Decreases in unrecognized tax benefits related to prior year tax positions | (49,456) | (43,944) |
Increases in unrecognized tax benefits related to current year tax positions | 31,007 | 13,880 |
Decreases in unrecognized tax benefits related to settlements with taxing authorities | (784) | (333) |
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations | (2,635) | (2,659) |
Increases in unrecognized tax benefits acquired | 1,934 | 49 |
Changes in unrecognized tax benefits due to foreign currency translation | 1,912 | 290 |
Ending Balance | $ 91,637 | $ 106,542 |
Other Income (Expense), Net - C
Other Income (Expense), Net - Components of Other Income (expense), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 7,241 | $ 3,715 | $ 2,785 |
Interest expense | (7,303) | (3,771) | (2,814) |
Gain (loss) on assets related to deferred compensation plan | 29,606 | 4,400 | 3,701 |
Foreign currency exchange gain (loss) | 3,354 | 156 | 6,363 |
Other, net | 2,637 | 7,653 | 5,109 |
Total | $ 35,535 | $ 12,153 | $ 15,144 |
Segment Disclosure - Revenues R
Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 2,724,880 | $ 2,422,532 | $ 2,242,211 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,357,364 | 1,205,880 | 1,143,816 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 308,419 | 287,381 | 300,352 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 247,631 | 239,964 | 218,794 |
Asia Pacific and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 811,466 | $ 689,307 | $ 579,249 |
Segment Disclosure - Property a
Segment Disclosure - Property and Equipment By Geographic Areas (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Oct. 31, 2016 |
Long-Lived Assets by Geographical Areas [Line Items] | ||
Property and equipment, net | $ 266,014 | $ 257,035 |
United States | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Property and equipment, net | 189,379 | 186,854 |
Other countries | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Property and equipment, net | $ 76,635 | $ 70,181 |
Segment Disclosure - Additional
Segment Disclosure - Additional information (Detail) | 12 Months Ended | ||
Oct. 31, 2017SegmentCustomer | Oct. 31, 2016SegmentCustomer | Oct. 31, 2015SegmentCustomer | |
Segment Reporting Information [Line Items] | |||
Number of reportable operating segment | Segment | 1 | 1 | 1 |
Number of major customers | Customer | 1 | 1 | 1 |
Customer Concentration Risk | Revenues | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenues contributed by major customers | 17.90% | 15.90% | 12.80% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | Dec. 11, 2017USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Payments to acquire businesses, net of cash acquired | $ 547 |