Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2018 | May 23, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SNPS | |
Entity Registrant Name | SYNOPSYS INC | |
Entity Central Index Key | 883,241 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 149,010,904 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 570,801 | $ 1,048,356 |
Accounts receivable, net | 568,434 | 451,144 |
Income taxes receivable and prepaid taxes | 46,847 | 48,257 |
Prepaid and other current assets | 184,104 | 134,836 |
Total current assets | 1,370,186 | 1,682,593 |
Property and equipment, net | 283,782 | 266,014 |
Goodwill | 3,147,124 | 2,706,974 |
Intangible assets, net | 422,195 | 253,843 |
Long-term prepaid taxes | 94,266 | 20,157 |
Deferred income taxes | 138,066 | 243,989 |
Other long-term assets | 243,452 | 222,844 |
Total assets | 5,699,071 | 5,396,414 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 373,938 | 499,846 |
Accrued income taxes | 9,251 | 39,811 |
Deferred revenue | 1,101,886 | 1,064,528 |
Short-term debt | 396,847 | 9,924 |
Total current liabilities | 1,881,922 | 1,614,109 |
Long-term accrued income taxes | 37,460 | 33,239 |
Long-term deferred revenue | 119,930 | 83,252 |
Long-term debt | 127,500 | 134,063 |
Other long-term liabilities | 271,862 | 252,027 |
Total liabilities | 2,438,674 | 2,116,690 |
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; 148,961 and 150,445 shares outstanding, respectively | 1,490 | 1,505 |
Capital in excess of par value | 1,678,921 | 1,622,429 |
Retained earnings | 2,223,287 | 2,143,873 |
Treasury stock, at cost: 8,300 and 6,817 shares, respectively | (585,016) | (426,208) |
Accumulated other comprehensive income (loss) | (62,389) | (65,979) |
Total Synopsys stockholders’ equity | 3,256,293 | 3,275,620 |
Non-controlling interest | 4,104 | 4,104 |
Total stockholders’ equity | 3,260,397 | 3,279,724 |
Total liabilities and stockholders’ equity | $ 5,699,071 | $ 5,396,414 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2018 | Oct. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common Stock, shares outstanding (in shares) | 148,961,000 | 150,445,000 |
Treasury stock, shares (in shares) | 8,300,000 | 6,817,000 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Revenue: | ||||
Time-based products | $ 556,770 | $ 501,096 | $ 1,127,703 | $ 990,461 |
Upfront products | 99,960 | 83,450 | 191,564 | 163,059 |
Maintenance and service | 120,106 | 95,523 | 226,995 | 179,335 |
Total revenue | 776,836 | 680,069 | 1,546,262 | 1,332,855 |
Cost of revenue: | ||||
Products | 108,199 | 100,907 | 219,593 | 197,878 |
Maintenance and service | 50,130 | 41,487 | 100,884 | 78,790 |
Amortization of intangible assets | 20,450 | 19,634 | 39,458 | 41,106 |
Total cost of revenue | 178,779 | 162,028 | 359,935 | 317,774 |
Gross margin | 598,057 | 518,041 | 1,186,327 | 1,015,081 |
Operating expenses: | ||||
Research and development | 252,134 | 223,015 | 516,545 | 435,663 |
Sales and marketing | 147,188 | 137,211 | 297,700 | 263,722 |
General and administrative | 58,809 | 83,438 | 115,181 | 124,304 |
Amortization of intangible assets | 10,736 | 7,864 | 20,275 | 15,900 |
Restructuring charges | 2,176 | 12,907 | 1,894 | 25,012 |
Total operating expenses | 471,043 | 464,435 | 951,595 | 864,601 |
Operating income | 127,014 | 53,606 | 234,732 | 150,480 |
Other income (expense), net | (7,715) | 8,414 | 4,670 | 19,901 |
Income before income taxes | 119,299 | 62,020 | 239,402 | 170,381 |
Provision (benefit) for income taxes | 16,827 | 8,714 | 140,621 | 30,487 |
Net income | $ 102,472 | $ 53,306 | $ 98,781 | $ 139,894 |
Net income per share: | ||||
Basic (in USD per share) | $ 0.69 | $ 0.35 | $ 0.66 | $ 0.93 |
Diluted (in USD per share) | $ 0.67 | $ 0.34 | $ 0.64 | $ 0.90 |
Shares used in computing per share amounts: | ||||
Basic (shares) | 149,034 | 150,384 | 149,245 | 150,583 |
Diluted (shares) | 153,167 | 154,861 | 153,664 | 154,754 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 102,472 | $ 53,306 | $ 98,781 | $ 139,894 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (11,122) | 13,961 | 9,958 | 9,301 |
Changes in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented | 0 | 9 | 0 | (54) |
Cash flow hedges: | ||||
Deferred gains (losses), net of tax of $2,264 and $(1,155), for the three and six months ended April 30, 2018, respectively, and of $(2,265) and $(2,945) for each of the same periods in fiscal 2017, respectively | (8,533) | 4,036 | 4,480 | 10,488 |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $1,195 and $2,520, for the three and six months ended April 30, 2018, respectively, and of $(315) and $(1,164) for each of the same periods in fiscal 2017, respectively | (5,542) | 1,738 | (10,848) | 5,593 |
Other comprehensive income (loss), net of tax effects | (25,197) | 19,744 | 3,590 | 25,328 |
Comprehensive income | $ 77,275 | $ 73,050 | $ 102,371 | $ 165,222 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Deferred gains (losses), tax | $ 2,264 | $ (2,265) | $ (1,155) | $ (2,945) |
Reclassification adjustment on deferred (gains) losses included in net income, tax | 1,195 | (315) | 2,520 | (1,164) |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Cash flow from operating activities: | ||
Net income | $ 98,781 | $ 139,894 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and depreciation | 96,829 | 97,044 |
Stock compensation | 65,288 | 51,396 |
Allowance for doubtful accounts | 3,367 | 679 |
(Gain) loss on sale of investments | 4 | (1) |
(Gain) loss on sale of property and equipment | (97) | 0 |
Write-down of long-term investments | 0 | 1,300 |
Deferred income taxes | 38,878 | 3,339 |
Net changes in operating assets and liabilities, net of acquired assets and liabilities: | ||
Accounts receivable | (105,457) | 81,098 |
Prepaid and other current assets | (47,664) | (13,291) |
Other long-term assets | (21,753) | (24,021) |
Accounts payable and accrued liabilities | (131,763) | (23,341) |
Income taxes | (44,577) | (11,436) |
Deferred revenue | 52,229 | (132,803) |
Net cash provided by operating activities | 4,065 | 169,857 |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of short-term investments | 12,449 | 94,512 |
Purchases of short-term investments | 0 | (94,182) |
Proceeds from sales of property and equipment | 1,662 | 0 |
Purchases of property and equipment | (48,612) | (31,195) |
Cash paid for acquisitions and intangible assets, net of cash acquired | (643,537) | (187,624) |
Capitalization of software development costs | (1,760) | (2,066) |
Other | 0 | 2,100 |
Net cash used in investing activities | (679,798) | (218,455) |
Cash flows from financing activities: | ||
Proceeds from credit facilities and term loan | 450,000 | 250,000 |
Repayment of debt | (69,687) | (36,875) |
Issuances of common stock | 58,975 | 62,254 |
Payments for taxes related to net share settlement of equity awards | (11,883) | (8,058) |
Purchase of equity forward contract | 0 | (20,000) |
Purchases of treasury stock | (235,000) | (180,000) |
Other | 0 | (482) |
Net cash provided by financing activities | 192,405 | 66,839 |
Effect of exchange rate changes on cash and cash equivalents | 5,773 | (3,536) |
Net change in cash and cash equivalents | (477,555) | 14,705 |
Cash and cash equivalents, beginning of year | 1,048,356 | 976,620 |
Cash and cash equivalents, end of period | $ 570,801 | $ 991,325 |
Description of Business
Description of Business | 6 Months Ended |
Apr. 30, 2018 | |
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 | 6 Months Ended |
Apr. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnote disclosures it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its unaudited condensed consolidated balance sheets, results of operations, comprehensive income and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in Synopsys’ Annual Report on Form 10-K for the fiscal year ended October 31, 2017 as filed with the SEC on December 14, 2017. Use of Estimates. To prepare financial statements in conformity with U.S. GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position. Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Fiscal Year End. The Company’s fiscal year ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that every five or six years, the Company has a 53-week year. When a 53-week year occurs, the Company includes the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2018 will be a 53-week year and will end on November 3, 2018, which will impact our revenue, expenses and operating results. Fiscal 2017 was a 52-week year and ended on October 28, 2017. The results of operations for the first six months of fiscal 2018 and 2017 included 27 weeks and 26 weeks, respectively, and ended on May 5, 2018 and April 29, 2017, respectively. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. |
Business Combinations
Business Combinations | 6 Months Ended |
Apr. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations During the six months ended April 30, 2018 , the Company completed several acquisitions with aggregate cash consideration of $631.1 million , net of cash, cash equivalents and short-term investments acquired. The Company does not consider these acquisitions to be material, individually or in the aggregate, to the Company’s unaudited condensed consolidated statements of operations. Acquisition of Black Duck Software (Black Duck) On December 11, 2017, the Company acquired Black Duck, a privately-held leader in automated solutions for securing and managing open source software, for $565.1 million total purchase consideration. With this acquisition, the Company has acquired industry-leading products which automate the process of identifying and inventorying the open source codes, detecting known security vulnerabilities and license compliance issues. As of April 30, 2018 , the total purchase consideration and the preliminary purchase price allocation were as follows: (in thousands) Cash paid $ 563,500 Fair value of assumed equity awards allocated to purchase consideration 1,588 Total consideration $ 565,088 Goodwill $ 396,346 Identifiable intangibles assets acquired 178,000 Cash, cash equivalents and short-term investments 19,491 Other tangible liabilities acquired, net (13,249 ) Deferred revenue (15,500 ) Total purchase allocation $ 565,088 The preliminary goodwill of $396.3 million is not deductible for tax purposes. The acquired identifiable intangible assets of $178.0 million were valued using the income or cost methods. The intangible assets are being amortized over their respective useful lives ranging from one to ten years. The acquisition-related costs directly attributable to the business combination of $1.9 million and $13.5 million , including compensation expenses, professional fees and other direct expenses, were expensed as incurred in the unaudited condensed consolidated statement of operations for the three and six months ended April 30, 2018 , respectively. The Company funded the acquisition with cash. The cash consideration was $544.0 million , net of acquired cash, cash equivalents and short-term investments. The Company also assumed unvested restricted stock units (RSUs) and stock options with a fair value of $15.6 million . The Black-Scholes option-pricing model was used to determine the fair value of these stock options, whereas the fair value of the RSUs was based on the market price on the grant date of the instruments. Of the total fair value of the equity awards assumed, $1.6 million was allocated to the purchase consideration and $14.0 million was allocated to future services to be expensed over their remaining service periods on a straight-line basis. Other Fiscal 2018 Acquisitions During the six months ended April 30, 2018 , the Company completed other acquisitions for a total purchase consideration of $87.1 million , net of cash acquired. The Company does not consider these acquisitions to be material to the Company’s unaudited condensed consolidated financial statements. The preliminary purchase price allocations resulted in $38.4 million of goodwill, which is not deductible for tax purposes, and $50.2 million of acquired identifiable intangible assets valued using the income or cost methods. The intangible assets are being amortized over their respective useful lives ranging from one to seven years. The acquisition-related costs for these acquisitions, totaling $3.3 million , were expensed as incurred in the unaudited condensed consolidated statement of operations. The Company funded these acquisitions with cash. The preliminary fair value estimates for the assets acquired and liabilities assumed for all acquisitions completed within 12 months from the applicable acquisition date 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 respective acquisition dates but is yet unknown to the Company, may become known to the Company during the remainder of the respective measurement periods, a period not to exceed 12 months from the applicable acquisition date. Changes to the provisional amounts recorded as assets or liabilities during a measurement period may result in an adjustment to goodwill. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Apr. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill as of April 30, 2018 and October 31, 2017 consisted of the following: (in thousands) As of October 31, 2017 $ 2,706,974 Additions 434,741 Adjustments (76 ) Effect of foreign currency translation 5,485 As of April 30, 2018 $ 3,147,124 Intangible assets as of April 30, 2018 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 767,764 $ 563,097 $ 204,667 Customer relationships 358,090 185,128 172,962 Contract rights intangible 184,180 174,861 9,319 Trademarks and trade names 42,929 19,599 23,330 In-process research and development (IPR&D)(1) 8,200 — 8,200 Capitalized software development costs 34,628 30,911 3,717 Total $ 1,395,791 $ 973,596 $ 422,195 Intangible assets as of October 31, 2017 consisted 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)(1) 6,600 — 6,600 Capitalized software development costs 32,868 29,094 3,774 Total $ 1,166,198 $ 912,355 $ 253,843 Amortization expense related to intangible assets consisted of the following: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Core/developed technology $ 18,985 $ 16,471 $ 37,053 $ 34,754 Customer relationships 9,656 6,844 18,219 13,736 Contract rights intangible 1,372 3,286 2,262 6,677 Trademarks and trade names 1,172 896 2,198 1,838 Capitalized software development costs 897 989 1,817 1,966 Total $ 32,082 $ 28,486 $ 61,549 $ 58,971 The following table presents the estimated future amortization of the existing intangible assets as of April 30, 2018: Fiscal Year (in thousands) Remainder of fiscal 2018 $ 61,217 2019 100,646 2020 76,226 2021 54,693 2022 43,227 2023 and thereafter 77,986 IPR&D(1) 8,200 Total $ 422,195 (1) IPR&D assets are reclassified to core/developed technology and are amortized over their useful lives upon completion or written off upon abandonment. |
Financial Assets and Liabilitie
Financial Assets and Liabilities | 6 Months Ended |
Apr. 30, 2018 | |
Financial Assets And Liabilities [Abstract] | |
Financial Assets and Liabilities | Financial Assets and Liabilities Cash equivalents and short-term investments. The Company classifies time deposits and other investments with maturities less than three months as cash equivalents. Debt securities and other investments with maturities longer than three months are classified as short-term investments. The Company’s investments generally have a term of less than three years and are classified as available-for-sale carried at fair value, with unrealized gains and losses included in the unaudited condensed consolidated balance sheets as a component of accumulated other comprehensive income (loss), net of tax. Those unrealized gains or losses deemed other than temporary are reflected in other income (expense), net. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net. As of April 30, 2018 , the balances of our cash equivalents are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 85,216 $ — $ — $ — $ 85,216 Total: $ 85,216 $ — $ — $ — $ 85,216 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents. As of October 31, 2017 , the balances of our cash equivalents are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 560,594 $ — $ — $ — $ 560,594 Total: $ 560,594 $ — $ — $ — $ 560,594 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents. Non-marketable equity securities. The Company’s strategic investment portfolio consists of non-marketable equity securities in privately-held companies. The securities accounted for under cost method investments are reported at cost net of impairment losses. Securities accounted for under equity method investments are recorded at cost plus the proportional share of the issuers’ income or loss, which is recorded in the Company’s other income (expense), net. The cost basis of securities sold is based on the specific identification method. Refer to Note 6. Fair Value Measures. Derivatives. The Company recognizes derivative instruments as either assets or liabilities in the unaudited condensed consolidated balance sheets at fair value and provides qualitative and quantitative disclosures about such derivatives. The Company operates internationally and is exposed to potentially adverse movements in foreign currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately one month , (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. The duration of forward contracts ranges from approximately one month to 22 months , the majority of which are short-term. The Company does not use foreign currency forward contracts for speculative or trading purposes. The Company enters into foreign exchange forward contracts with high credit quality financial institutions that are rated ‘A’ or above and to date has not experienced nonperformance by counterparties. Further, the Company anticipates continued performance by all counterparties to such agreements. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the unaudited condensed consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. Cash Flow Hedging Activities Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 22 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to the Company’s foreign currency risk, which can be up to three years . To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on the hedged transactions. The effective portion of gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (OCI) in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. The Company expects a majority of the hedge balance in OCI to be reclassified to the statements of operations within the next 12 months . Hedging effectiveness is evaluated monthly using spot rates, with any gain or loss caused by hedging ineffectiveness recorded in other income (expense), net. The premium/discount component of the forward contracts is recorded to other income (expense), net, and is not included in evaluating hedging effectiveness. Non-designated Hedging Activities The Company’s foreign exchange forward contracts that are used to hedge non-functional currency denominated balance sheet assets and liabilities are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the underlying assets and liabilities, which are also recorded in other income (expense), net. The duration of the forward contracts for hedging the Company’s balance sheet exposure is approximately one month . The Company also has certain foreign exchange forward contracts for hedging certain international revenues and expenses that are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the foreign currency in operating income. The duration of these forward contracts is usually less than one year . The overall goal of the Company’s hedging program is to minimize the impact of currency fluctuations on its net income over its fiscal year. The effects of the changes in the fair values of non-designated forward contracts are summarized as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Gain (loss) recorded in other income (expense), net $ 1,248 $ 1,263 $ (323 ) $ 1,322 The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: As of April 30, 2018 As of October 31, 2017 (in thousands) Total gross notional amount $ 944,808 $ 955,139 Net fair value $ 3,752 $ 14,052 The notional amounts for derivative instruments do not represent the amount of the Company’s exposure to market gain or loss. The Company’s exposure to market gain or loss will vary over time as a function of currency exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. The following represents the unaudited condensed consolidated balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: Fair values of derivative instruments designated as hedging instruments Fair values of derivative instruments not designated as hedging instruments (in thousands) As of April 30, 2018 Other current assets $ 10,122 $ 57 Accrued liabilities $ 5,837 $ 590 As of October 31, 2017 Other current assets $ 16,582 $ 15 Accrued liabilities $ 2,485 $ 59 The following table represents the unaudited condensed consolidated statement of operations location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax: Location of gain (loss) recognized in OCI on derivatives Amount of gain (loss) recognized in OCI on derivatives (effective portion) Location of gain (loss) reclassified from OCI Amount of gain (loss) reclassified from OCI (effective portion) (in thousands) Three months ended Foreign exchange contracts Revenue $ 662 Revenue $ (169 ) Foreign exchange contracts Operating expenses (9,195 ) Operating expenses 5,711 Total $ (8,533 ) $ 5,542 Three months ended Foreign exchange contracts Revenue $ (1,604 ) Revenue $ (428 ) Foreign exchange contracts Operating expenses 5,669 Operating expenses (1,310 ) Total $ 4,065 $ (1,738 ) Six months ended Foreign exchange contracts Revenue $ (1,964 ) Revenue $ 1,498 Foreign exchange contracts Operating expenses 6,444 Operating expenses 9,350 Total $ 4,480 $ 10,848 Six months ended Foreign exchange contracts Revenue $ 7,000 Revenue $ (2,181 ) Foreign exchange contracts Operating expenses 3,610 Operating expenses (3,412 ) Total $ 10,610 $ (5,593 ) The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense), net: Foreign exchange contracts Amount of gain (loss) recognized in statement of operations on derivatives (ineffective portion)(1) Amount of gain (loss) recognized in statement of operations on derivatives (excluded from effectiveness testing)(2) (in thousands) For the three months ended April 30, 2018 $ 308 $ 607 For the three months ended April 30, 2017 $ (5 ) $ 1,499 For the six months ended April 30, 2018 $ 522 $ 1,707 For the six months ended April 30, 2017 $ 164 $ 2,617 (1) The ineffective portion includes forecast inaccuracies. (2) The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. |
Fair Value Measures
Fair Value Measures | 6 Months Ended |
Apr. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | Fair Value Measures Accounting standards require an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Accounting standards also establish a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement: Level 1 —Observable inputs that reflect quoted prices (unadjusted) for identical instruments in active markets; Level 2 —Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 —Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. On a recurring basis, the Company measures the fair value of certain of its assets and liabilities, which include cash equivalents, short-term investments, non-qualified deferred compensation plan assets, and foreign currency derivative contracts. The Company’s cash equivalents and short-term investments are classified within Level 1 or Level 2 because they are valued using quoted market prices in an active market or alternative independent pricing sources and models utilizing market observable inputs. The Company’s non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets and are therefore classified within Level 1. The Company’s foreign currency derivative contracts are classified within Level 2 because these contracts are not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments. The Company’s borrowings under its credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Refer to Note 8. Credit Facility . Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below as of April 30, 2018 : 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 $ 85,216 $ 85,216 $ — $ — Prepaid and other current assets: Foreign currency derivative contracts 10,179 — 10,179 — Other long-term assets: Deferred compensation plan assets 212,976 212,976 — — Total assets $ 308,371 $ 298,192 $ 10,179 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 6,427 $ — $ 6,427 $ — Other long-term liabilities: Deferred compensation plan liabilities 212,976 212,976 — — Total liabilities $ 219,403 $ 212,976 $ 6,427 $ — 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/Liabilities Measured at Fair Value on a Non-Recurring Basis Non-Marketable Equity Securities Equity investments in privately-held companies, also called non-marketable equity securities, are accounted for using either the cost or equity method of accounting. The non-marketable equity securities are measured and recorded at fair value when an event or circumstance which impacts the fair value of these securities indicates an other-than-temporary decline in value has occurred. In such events, these equity investments would be classified within Level 3 as they are valued using significant unobservable inputs or data in an inactive market, and the valuation requires management judgment due to the absence of market price and inherent lack of liquidity. The Company monitors these investments and generally uses the income approach to assess impairments based primarily on the financial conditions of these companies. The Company did not recognize any impairment during the three and six months ended April 30, 2018 . The Company did not recognize any impairment during the three months ended April 30, 2017 and recorded $1.3 million of other-than-temporary impairment during the six months ended April 30, 2017 . |
Liabilities and Restructuring C
Liabilities and Restructuring Charges | 6 Months Ended |
Apr. 30, 2018 | |
Liabilities and Restructuring Charges [Abstract] | |
Liabilities and Restructuring Charges | Liabilities and Restructuring Charges During the three and six months ended April 30, 2018, the Company incurred restructuring charges of approximately $1.8 million as part of a business realignment. Total charges under this realignment are expected to be $8 million to $10 million consisting of severance and benefits. The outstanding balance as of April 30, 2018 was $0.9 million recorded in accounts payable and accrued liabilities as payroll and related benefits in the unaudited condensed consolidated balance sheets. In fiscal 2017, the Company recorded $36.6 million of restructuring charges for severance and benefits due to involuntary and voluntary employee termination actions. During the three and six months ended April 30, 2018 , the Company made payments of $9.4 million and $17.3 million , respectively. The outstanding balance as of April 30, 2018 was immaterial and expected to be paid by the end of the third quarter of fiscal 2018. As of October 31, 2017, the outstanding balance was $17.5 million recorded in accounts payable and accrued liabilities as payroll and related benefits in the audited consolidated balance sheets. Accounts payable and accrued liabilities consist of: April 30, October 31, (in thousands) Payroll and related benefits $ 234,734 $ 382,773 Other accrued liabilities 95,725 97,119 Accounts payable 43,479 19,954 Total $ 373,938 $ 499,846 Other long-term liabilities consist of: April 30, October 31, (in thousands) Deferred compensation liability $ 212,976 $ 197,542 Other long-term liabilities 58,886 54,485 Total $ 271,862 $ 252,027 |
Credit Facility
Credit Facility | 6 Months Ended |
Apr. 30, 2018 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility On November 28, 2016, the Company entered into an amended and restated credit agreement with several lenders (the Credit Agreement) providing for (i) a $650.0 million senior unsecured revolving credit facility (the Revolver) and (ii) a $150.0 million senior unsecured term loan facility (the Term Loan). The Credit Agreement amended and restated the Company’s previous credit agreement dated May 19, 2015 (the 2015 Agreement), in order to increase the size of the revolving credit facility from $500.0 million to $650.0 million , provide a new $150.0 million senior unsecured term loan facility, and to extend the termination date of the revolving credit facility from May 19, 2020 to November 28, 2021. Subject to obtaining additional commitments from lenders, the principal amount of the loans provided under the Credit Agreement may be increased by the Company by up to an additional $150.0 million . The Credit Agreement contains financial covenants requiring the Company to operate within a maximum leverage ratio and a minimum interest coverage ratio, as well as other non-financial covenants. As of April 30, 2018 , the Company was in compliance with all financial covenants. As of April 30, 2018 , the Company had a $139.3 million outstanding balance, net of debt issuance costs, under the Term Loan, of which $127.5 million is classified as long-term liabilities. Outstanding principal payments under the Term Loan are due as follows: Fiscal year (in thousands) Remainder of fiscal 2018 $ 5,625 2019 14,062 2020 17,813 2021 27,187 2022 75,000 Total $ 139,687 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. In December 2017, the Company drew down $450.0 million under the Revolver and the total outstanding balance of the Revolver as of April 30, 2018 was $385.0 million after partial repayments, which is included in short-term liabilities. The Company expects its borrowings under the Revolver will fluctuate from quarter to quarter. Borrowings bear interest at a floating rate based on a margin over the Company’s choice of market observable base rates as defined in the Credit Agreement. As of April 30, 2018 , borrowings under the Term Loan bore interest at LIBOR +1.125% and the applicable interest rate for the Revolver was LIBOR +1.000% . In addition, commitment fees are payable on the Revolver at rates between 0.125% and 0.200% per year based on the Company’s leverage ratio on the daily amount of the revolving commitment. The carrying amount of the short-term and long-term debt approximates the estimated fair value. These borrowings under the Credit Agreement have a variable interest rate structure and are classified within Level 2 of the fair value hierarchy. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Apr. 30, 2018 | |
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: April 30, October 31, (in thousands) Cumulative currency translation adjustments $ (60,449 ) $ (70,407 ) Unrealized gain (loss) on derivative instruments, net of taxes (1,940 ) 4,428 Total accumulated other comprehensive income (loss) $ (62,389 ) $ (65,979 ) The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statement of operations: Gain (loss) on cash flow hedges, net of taxes Revenues $ (169 ) $ (428 ) $ 1,498 $ (2,181 ) Operating expenses 5,711 (1,310 ) 9,350 (3,412 ) Gain (loss) on available-for-sale securities Other income (expense) — — — 1 Total reclassifications into net income $ 5,542 $ (1,738 ) $ 10,848 $ (5,592 ) |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Apr. 30, 2018 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program The Company’s Board of Directors (the Board) previously approved a stock repurchase program pursuant to which the Company was authorized to purchase up to $500.0 million of its common stock, and has periodically replenished the stock repurchase program to such amount. The Board replenished the stock repurchase program up to $500.0 million on April 5, 2018. 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 April 30, 2018 , $490.0 million remained available for further repurchases under the program. 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 repurchased under the September 2017 ASR were approximately 1.2 million shares, at an average purchase price of $83.80 per share. 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 deliveries of shares valued at $160.0 million . In February 2018, the Company received additional deliveries of shares valued at $20.0 million for one of the two December 2017 ASRs. The remaining balance of $20.0 million was settled in March 2018. Total shares repurchased under the December 2017 ASR were approximately 2.3 million shares, at an average purchase price of $87.08 per share. Stock repurchase activities are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Total shares repurchased(1)(2) 916 1,381 2,902 2,775 Total cost of the repurchased shares (1)(2) $ 75,000 $ 100,000 $ 255,000 $ 180,000 Reissuance of treasury stock 925 1,502 1,420 1,870 (1) The first quarter of fiscal 2018 includes the settlement of the $20.0 million equity forward contract related to the September 2017 ASR. (2) The Company also repurchased 0.4 million shares at an average price of $82.61 per share, for an aggregate purchase price of $35.0 million during the three months ended April 30, 2018. |
Stock Compensation
Stock Compensation | 6 Months Ended |
Apr. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation | Stock Compensation The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Cost of products $ 3,460 $ 2,813 $ 6,843 $ 5,812 Cost of maintenance and service 1,290 947 2,537 1,808 Research and development expense 15,150 12,568 30,546 25,452 Sales and marketing expense 6,875 4,807 13,496 9,936 General and administrative expense 6,190 4,427 11,866 8,388 Stock compensation expense before taxes 32,965 25,562 65,288 51,396 Income tax benefit (6,336 ) (7,065 ) (12,548 ) (14,206 ) Stock compensation expense after taxes $ 26,629 $ 18,497 $ 52,740 $ 37,190 In addition to the tax benefit disclosed above, the Company recorded net excess tax benefits from stock-based compensation in the provision for income taxes of $3.3 million and $10.8 million , respectively, for the three and six months ended April 30, 2018 . The Company recorded net excess tax benefits from stock-based compensation in the provision for income taxes of $8.3 million and $11.3 million , respectively, for the three and six months ended April 30, 2017 . As of April 30, 2018 , there was $220.8 million of unamortized share-based compensation expense relating to options and restricted stock units and awards, which is expected to be amortized over a weighted-average period of approximately 2.3 years . The intrinsic values of equity awards exercised during the periods are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Intrinsic value of awards exercised $ 12,017 $ 22,369 $ 30,792 $ 28,656 In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting." The Company elected to early adopt ASU 2016-09 in the first quarter of fiscal 2017. As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are classified as an operating activity in the consolidated statements of cash flows and the Company has elected to apply this provision on a prospective basis. The Company also elected to account for forfeitures as they occur and recorded a one-time adoption expense of $0.4 million to retained earnings. See Note 15. Taxes for additional information on tax impacts. |
Net Income per Share
Net Income per Share | 6 Months Ended |
Apr. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The Company computes basic net income per share by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding, such as stock options and unvested restricted stock units and awards, during the period using the treasury stock method. The table below reconciles the weighted-average common shares used to calculate basic net income per share with the weighted-average common shares used to calculate diluted net income per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands, except per share amounts) Numerator: Net income $ 102,472 $ 53,306 $ 98,781 $ 139,894 Denominator: Weighted-average common shares for basic net income per share 149,034 150,384 149,245 150,583 Dilutive effect of potential common shares from equity-based compensation 4,133 4,477 4,419 4,171 Weighted-average common shares for diluted net income per share 153,167 154,861 153,664 154,754 Net income per share: Basic $ 0.69 $ 0.35 $ 0.66 $ 0.93 Diluted $ 0.67 $ 0.34 $ 0.64 $ 0.90 Anti-dilutive employee stock-based awards excluded(1) 761 948 618 738 (1) These employee stock-based awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future. |
Segment Disclosure
Segment Disclosure | 6 Months Ended |
Apr. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Disclosure | Segment Disclosure Certain disclosures are required for operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers. The Company operates in a single segment to provide software products and consulting services primarily in the EDA software industry. In making operating decisions, the CODMs primarily consider consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Specifically, the CODMs consider where individual “seats” or licenses to the Company’s products are located in allocating revenue to particular geographic areas. Revenue is defined as revenues from external customers. Goodwill is not allocated since the Company operates in one reportable operating segment. Revenues related to operations in the United States and other geographic areas were: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Revenue: United States $ 376,636 $ 350,489 $ 761,210 $ 669,908 Europe 97,014 78,395 182,479 154,068 Japan 70,435 57,206 138,824 118,904 Asia-Pacific and Other 232,751 193,979 463,749 389,975 Consolidated $ 776,836 $ 680,069 $ 1,546,262 $ 1,332,855 Geographic revenue data for multi-region, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and the Company’s methodology. For the three and six months ended April 30, 2018 and 2017 , one customer, including its subsidiaries, through multiple agreements accounted for greater than 10% of the Company's total revenues. |
Other Income (Expense), net
Other Income (Expense), net | 6 Months Ended |
Apr. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), net | Other Income (Expense), net The following table presents the components of other income (expense), net: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Interest income $ 927 $ 1,499 $ 2,563 $ 2,733 Interest expense (3,880 ) (1,860 ) (6,723 ) (3,168 ) Gain (loss) on assets related to executive deferred compensation plan assets (7,245 ) 7,763 6,195 15,543 Foreign currency exchange gain (loss) 1,117 (623 ) 98 2,599 Other, net 1,366 1,635 2,537 2,194 Total $ (7,715 ) $ 8,414 $ 4,670 $ 19,901 |
Taxes
Taxes | 6 Months Ended |
Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes Effective Tax Rate The Company estimates its annual effective tax rate at the end of each fiscal quarter. The effective tax rate takes into account the Company's estimations of annual pre-tax income, the geographic mix of pre-tax income and interpretations of tax laws and possible outcomes of audits. The following table presents the provision (benefit) for income taxes and the effective tax rates: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Income before income taxes $ 119,299 $ 62,020 $ 239,402 $ 170,381 Provision (benefit) for income taxes $ 16,827 $ 8,714 $ 140,621 $ 30,487 Effective tax rate 14.1 % 14.1 % 58.7 % 17.9 % Tax Reform The Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017, lowered the statutory federal corporate income tax rate from 35% to 21% effective on January 1, 2018. Because the Company's fiscal 2018 commenced on November 1, 2017, the annual statutory federal corporate tax rate applicable to fiscal 2018 is a blended rate of 23.4% . Beginning in the Company's fiscal 2019, the annual statutory federal corporate tax rate will be 21% . The Company’s effective tax rate for the three and six months ended April 30, 2018 differs from the statutory federal corporate tax rate of 23.4% primarily due to accounting for the effects of the enactment of the Tax Act, which increased income tax expense by $119 million in the first quarter of fiscal 2018. The increased income tax expense was partially offset by the benefits of lower-taxed international earnings, U.S. federal and California research tax credits and excess tax benefits from stock-based compensation, and partially increased by state taxes and the tax effects of non-deductible stock-based compensation and the integration of acquired technologies. The integration of acquired technologies represents the income tax effect resulting from the transfer of certain intangible assets among company-controlled entities. The Company's effective tax rate in the three months ended April 30, 2018 as compared to the same period in fiscal 2017 reflected a reduction in the statutory federal corporate rate due to the Tax Act, offset by higher excess tax benefits from stock-based compensation in the second quarter of fiscal 2017. The Company's effective tax rate increased in the six months ended April 30, 2018 , as compared to the same periods in fiscal 2017, primarily due to the effects of the Tax Act. The following accounting impacts of the Tax Act are provisional, based on currently available information and technical guidance on the interpretations of the Tax Act. The Company continues to obtain, analyze and interpret additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service (“IRS”), state taxing jurisdictions, the FASB, and other standard-setting and regulatory bodies, as such guidance becomes available, in order to complete its accounting for the impact of the Tax Act. Additional information that is needed to complete the analysis but is currently unavailable includes, but is not limited to, the amount of earnings of certain subsidiaries as well as the amount of foreign taxes paid on such earnings, the final determination of certain net deferred tax assets subject to remeasurement and when the related temporary differences will be settled or realized, and the tax treatment of such provisions of the Tax Act by various state tax authorities. In addition, the Company does not currently have sufficient information and guidance to determine the impact of certain changes to the taxation of its foreign earnings that will become effective for the Company in its fiscal year 2019. The provisional accounting impacts may change in future reporting periods until the Company's accounting analysis is finalized, which will occur no later than the first quarter of the fiscal year 2019, as permitted by SEC Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. As a result of the reduction in the federal corporate tax rate, the Company remeasured its deferred taxes as of the date of enactment of the Tax Act, resulting in a first quarter provisional tax charge of $46 million based on the tax rate that is expected to apply when such deferred taxes are settled or realized in future periods. As part of the adoption of a new territorial tax system applicable to foreign earnings, the Tax Act requires the Company to pay a one-time tax (“transition tax”) on previously untaxed earnings and profits of certain of the Company’s foreign subsidiaries at a rate of 15.5% on such earnings represented by foreign cash and certain other net current assets, and 8% on the remaining earnings, in each case reduced by certain foreign tax credits. In the first quarter of fiscal 2018, the Company recorded a provisional transition tax expense of $71 million , as well as $2 million of provisional state taxes on these earnings, and income taxes payable of $78 million . The calculation of the transition tax is dependent in part on the actual amount of foreign earnings and foreign taxes for fiscal 2018, as well as potential changes to the Company's tax structure that could occur in fiscal 2018 in response to the Tax Act. Upon further analyses of certain aspects of the Tax Act and refinement of the Company's calculations during the six months ended April 30, 2018, the Company adjusted the provisional income taxes payable from $78 million to $18 million primarily to reflect utilization of research credits and net operating loss carryforwards that the Company believes should be available to reduce the transition tax. This adjustment resulted in a reduction of previously recognized deferred tax assets and a decrease in income tax liability, but did not change the provisional transition tax expense recorded in first quarter of fiscal 2018. The Company currently intends to elect to pay the transition tax over a period of eight years as permitted by the Tax Act. Refinements to the calculation of the provisional transition tax expense and potential changes to the Company's tax structure could further affect the amount of transition tax expense and transition tax payable. The Tax Act also provides an exemption from federal income taxes for distributions by foreign subsidiaries made after December 31, 2017 that were not subject to the transition tax. The Company has provided for U.S. state income taxes and foreign withholding taxes on undistributed earnings of certain of its foreign subsidiaries to the extent such earnings are no longer considered to be indefinitely reinvested in the operations of those subsidiaries. The Company has recorded provisional amounts for the tax effects of certain other new provisions of the Tax Act related to compensation and employee benefits in the three and six months ended April 30, 2018, based on information currently available. The Tax Act also introduced several new tax provisions related to the taxation of foreign earnings, discussed below: • A tax on global intangible low-tax income (“GILTI”), which is determined annually based on the Company’s aggregate foreign subsidiaries’ income in excess of certain qualified business asset investment return, will be effective for the Company in its fiscal year 2019. The Company needs additional information to complete its analysis on whether to adopt an accounting policy to account for the tax effects of GILTI in the period that it is subject to such tax, or to provide deferred taxes for book and tax basis differences that upon reversal, may be subject to such tax. Accordingly, the Company has not recorded any tax with respect to GILTI in the three and six months ended April 30, 2018. The Company will make an accounting policy election and complete the required accounting no later than the first quarter of fiscal 2019. • A base erosion and anti-abuse tax (“BEAT”), which functions as a minimum tax that partially disallows deductions for certain related party transactions, that is not effective for the Company until its fiscal year 2019. • A special tax deduction for foreign-derived intangible income (“FDII”), which, in general, allows a deduction of certain intangible income earned in the U.S. and derived from foreign sources, that is not effective for the Company until its fiscal year 2019. The applicability of these new tax provisions is dependent in part on potential changes to the Company's tax structure that could occur in fiscal 2018 in response to the Tax Act. On July 27, 2015, the United States Tax Court (Tax Court) issued an opinion ( Altera Corp. et al. v. Commissioner ) regarding the treatment of stock-based compensation expense in intercompany cost-sharing arrangements. The U.S. Treasury has not withdrawn the requirement to include stock-based compensation from its regulations and the IRS has initiated an appeal of the Tax Court's opinion. As the final resolution with respect to historical cost-sharing of stock-based compensation, and the potential favorable benefits to the Company, is unclear, the Company is recording no impact at this time and will continue to monitor developments related to this opinion and the potential impact of those developments on the Company's prior fiscal years. Effective February 1, 2016, the Company amended its cost-sharing arrangement to exclude stock-based compensation expense on a prospective basis and has reflected the corresponding benefits in its effective annual tax rate. The timing of the resolution of income tax examinations is highly uncertain, as are the amounts and timing of various tax payments that are part of the settlement process. This could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. The Company believes that in the coming 12 months, it is reasonably possible that either certain audits will conclude or the statute of limitations on certain state and foreign income and withholding taxes will expire, or both. Given the uncertainty as to ultimate settlement terms, the timing of payment and the impact of such settlements on other uncertain tax positions, the range of the estimated potential decrease in underlying unrecognized tax benefits is between $0 and $13 million . As discussed in Note 11. Stock Compensation , the Company adopted ASU 2016-09 in the first quarter of fiscal 2017. The Company recorded all income tax effects of share-based awards in its provision for income taxes in the condensed consolidated statement of operations on a prospective basis. Prior to adoption, the Company did not recognize excess tax benefits from stock-based compensation as a charge to capital in excess of par value to the extent that the related tax deduction did not reduce income taxes payable. Upon adoption of ASU 2016-09, the Company recorded a deferred tax asset of $106.5 million for the previously unrecognized excess tax benefits with an offsetting adjustment to retained earnings. Net excess tax benefits reduced the provision for income taxes by $3.3 million and $10.8 million , respectively, for the three and six months ended April 30, 2018 and by $8.3 million and $11.3 million , respectively, for the three and six months ended April 30, 2017 . Non-U.S. Examinations In July 2017, the Hungarian Tax Authority (HTA) issued a final assessment against the Company’s Hungarian subsidiary (Synopsys Hungary) for fiscal years 2011 through 2013. The HTA has disallowed Synopsys Hungary's tax positions taken during these years regarding the timing of the deduction of research expenses and applied withholding taxes on certain payments made to affiliates, resulting in an aggregate tax assessment of approximately $47 million and interest and penalties of $18 million . In addition, if the treatment of research expenses were applied to fiscal years after 2014, Synopsys Hungary could lose approximately $18 million in tax benefit in tax periods subsequent to fiscal 2017 due to the enacted reduction of Hungary’s corporate income tax rate. While the ultimate outcome is not certain, the Company believes there is no merit to the assessment and 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 as required by law, while continuing its challenge to the assessment in court. The amount paid is included in long-term prepaid taxes on the balance sheet. The next court hearing is scheduled for July 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. The Company is also under examination by the tax authorities in certain other jurisdictions. No material assessments have been proposed in these examinations. |
Contingencies
Contingencies | 6 Months Ended |
Apr. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings The Company is subject to routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of its business. The ultimate outcome of any litigation is often uncertain and unfavorable outcomes could have a negative impact on the Company’s results of operations and financial condition. The Company regularly 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. Legal proceedings are inherently uncertain and as circumstances change, it is possible that the amount of any accrued liability may increase, decrease, or be eliminated. 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 quarter ended October 31, 2015. Both parties appealed from the court’s judgment following the jury verdict. The Federal Circuit heard the parties’ respective appeals and issued a decision on March 16, 2017. The panel affirmed the jury verdict and damages award on Mentor’s ‘376 patent and reversed the district court’s dismissal of Mentor’s ‘176, ‘531 and ‘882 patents and the Company’s ‘109 patent. Due to the affirmation of the verdict by the Federal Circuit, the Company has accrued an aggregate amount of $39.0 million as a loss contingency, which is the amount estimated to be the probable loss. The associated charge has been recorded in general and administrative expenses in the income statements for the 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 parties completed briefing on March 27, 2018. On April 4, 2018, the Company’s petition was distributed for conference by the Supreme Court. On April 23, 2018, the Solicitor General was invited to file a brief on behalf of the United States. 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. On March 26, 2018, the Company appealed the dismissal to the Federal Circuit. The PTO’s response is due June 6, 2018. The ex parte reexamination of claims 24, 26, and 27 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. On March 9, 2018, the PTO withdrew its rejection of the challenged claims. While the Company intends to defend all of the above matters vigorously, the ultimate outcome of any litigation, including the litigation with Mentor, is uncertain and may have an adverse outcome resulting in losses beyond recorded amounts. In the event of an unfavorable final outcome, there exists the possibility of a material adverse impact on the Company's consolidated financial statements for the period in which the effects become reasonably estimable. Tax Matters The Company undergoes examination from time to time by U.S. and foreign authorities for non-income based taxes, such as sales, use and value-added taxes, and is currently under examination by tax authorities in certain jurisdictions. If the potential loss from such examinations is considered probable and the amount or the range of loss could be estimated, the Company would accrue a liability for the estimated expense. In addition to the foregoing, the Company is, from time to time, party to various other claims and legal proceedings in the ordinary course of our business, including with tax and other governmental authorities. For a description of certain of these other matters, refer to Note 15. Taxes. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. To prepare financial statements in conformity with U.S. GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position. |
Principles of Consolidation | Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Fiscal Year End | Fiscal Year End. The Company’s fiscal year ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that every five or six years, the Company has a 53-week year. When a 53-week year occurs, the Company includes the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2018 will be a 53-week year and will end on November 3, 2018, which will impact our revenue, expenses and operating results. Fiscal 2017 was a 52-week year and ended on October 28, 2017. The results of operations for the first six months of fiscal 2018 and 2017 included 27 weeks and 26 weeks, respectively, and ended on May 5, 2018 and April 29, 2017, respectively. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | As of April 30, 2018 , the total purchase consideration and the preliminary purchase price allocation were as follows: (in thousands) Cash paid $ 563,500 Fair value of assumed equity awards allocated to purchase consideration 1,588 Total consideration $ 565,088 Goodwill $ 396,346 Identifiable intangibles assets acquired 178,000 Cash, cash equivalents and short-term investments 19,491 Other tangible liabilities acquired, net (13,249 ) Deferred revenue (15,500 ) Total purchase allocation $ 565,088 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | Goodwill as of April 30, 2018 and October 31, 2017 consisted of the following: (in thousands) As of October 31, 2017 $ 2,706,974 Additions 434,741 Adjustments (76 ) Effect of foreign currency translation 5,485 As of April 30, 2018 $ 3,147,124 |
Summary of Intangible Assets | Intangible assets as of April 30, 2018 consisted of the following: Gross Assets Accumulated Amortization Net Assets (in thousands) Core/developed technology $ 767,764 $ 563,097 $ 204,667 Customer relationships 358,090 185,128 172,962 Contract rights intangible 184,180 174,861 9,319 Trademarks and trade names 42,929 19,599 23,330 In-process research and development (IPR&D)(1) 8,200 — 8,200 Capitalized software development costs 34,628 30,911 3,717 Total $ 1,395,791 $ 973,596 $ 422,195 Intangible assets as of October 31, 2017 consisted 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)(1) 6,600 — 6,600 Capitalized software development costs 32,868 29,094 3,774 Total $ 1,166,198 $ 912,355 $ 253,843 |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets consisted of the following: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Core/developed technology $ 18,985 $ 16,471 $ 37,053 $ 34,754 Customer relationships 9,656 6,844 18,219 13,736 Contract rights intangible 1,372 3,286 2,262 6,677 Trademarks and trade names 1,172 896 2,198 1,838 Capitalized software development costs 897 989 1,817 1,966 Total $ 32,082 $ 28,486 $ 61,549 $ 58,971 |
Estimated Future Amortization of Intangible Assets | The following table presents the estimated future amortization of the existing intangible assets as of April 30, 2018: Fiscal Year (in thousands) Remainder of fiscal 2018 $ 61,217 2019 100,646 2020 76,226 2021 54,693 2022 43,227 2023 and thereafter 77,986 IPR&D(1) 8,200 Total $ 422,195 (1) IPR&D assets are reclassified to core/developed technology and are amortized over their useful lives upon completion or written off upon abandonment. |
Financial Assets and Liabilit27
Financial Assets and Liabilities (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Financial Assets And Liabilities [Abstract] | |
Summary of Available-for-Sale Securities | As of April 30, 2018 , the balances of our cash equivalents are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 85,216 $ — $ — $ — $ 85,216 Total: $ 85,216 $ — $ — $ — $ 85,216 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents. As of October 31, 2017 , the balances of our cash equivalents are: Cost Gross Gross Gross Estimated (in thousands) Cash equivalents: Money market funds $ 560,594 $ — $ — $ — $ 560,594 Total: $ 560,594 $ — $ — $ — $ 560,594 (1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents. |
Effects on Changes in Fair Values of Non-Designated Forward Contracts | The effects of the changes in the fair values of non-designated forward contracts are summarized as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Gain (loss) recorded in other income (expense), net $ 1,248 $ 1,263 $ (323 ) $ 1,322 |
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 April 30, 2018 As of October 31, 2017 (in thousands) Total gross notional amount $ 944,808 $ 955,139 Net fair value $ 3,752 $ 14,052 |
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet | The following represents the unaudited condensed consolidated balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: Fair values of derivative instruments designated as hedging instruments Fair values of derivative instruments not designated as hedging instruments (in thousands) As of April 30, 2018 Other current assets $ 10,122 $ 57 Accrued liabilities $ 5,837 $ 590 As of October 31, 2017 Other current assets $ 16,582 $ 15 Accrued liabilities $ 2,485 $ 59 |
Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax | The following table represents the unaudited condensed consolidated statement of operations location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax: Location of gain (loss) recognized in OCI on derivatives Amount of gain (loss) recognized in OCI on derivatives (effective portion) Location of gain (loss) reclassified from OCI Amount of gain (loss) reclassified from OCI (effective portion) (in thousands) Three months ended Foreign exchange contracts Revenue $ 662 Revenue $ (169 ) Foreign exchange contracts Operating expenses (9,195 ) Operating expenses 5,711 Total $ (8,533 ) $ 5,542 Three months ended Foreign exchange contracts Revenue $ (1,604 ) Revenue $ (428 ) Foreign exchange contracts Operating expenses 5,669 Operating expenses (1,310 ) Total $ 4,065 $ (1,738 ) Six months ended Foreign exchange contracts Revenue $ (1,964 ) Revenue $ 1,498 Foreign exchange contracts Operating expenses 6,444 Operating expenses 9,350 Total $ 4,480 $ 10,848 Six months ended Foreign exchange contracts Revenue $ 7,000 Revenue $ (2,181 ) Foreign exchange contracts Operating expenses 3,610 Operating expenses (3,412 ) Total $ 10,610 $ (5,593 ) |
Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) | The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense), net: Foreign exchange contracts Amount of gain (loss) recognized in statement of operations on derivatives (ineffective portion)(1) Amount of gain (loss) recognized in statement of operations on derivatives (excluded from effectiveness testing)(2) (in thousands) For the three months ended April 30, 2018 $ 308 $ 607 For the three months ended April 30, 2017 $ (5 ) $ 1,499 For the six months ended April 30, 2018 $ 522 $ 1,707 For the six months ended April 30, 2017 $ 164 $ 2,617 (1) The ineffective portion includes forecast inaccuracies. (2) The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
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 April 30, 2018 : 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 $ 85,216 $ 85,216 $ — $ — Prepaid and other current assets: Foreign currency derivative contracts 10,179 — 10,179 — Other long-term assets: Deferred compensation plan assets 212,976 212,976 — — Total assets $ 308,371 $ 298,192 $ 10,179 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 6,427 $ — $ 6,427 $ — Other long-term liabilities: Deferred compensation plan liabilities 212,976 212,976 — — Total liabilities $ 219,403 $ 212,976 $ 6,427 $ — 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 $ — |
Liabilities and Restructuring29
Liabilities and Restructuring Charges (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Liabilities and Restructuring Charges [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of: April 30, October 31, (in thousands) Payroll and related benefits $ 234,734 $ 382,773 Other accrued liabilities 95,725 97,119 Accounts payable 43,479 19,954 Total $ 373,938 $ 499,846 |
Other Long-Term Liabilities | Other long-term liabilities consist of: April 30, October 31, (in thousands) Deferred compensation liability $ 212,976 $ 197,542 Other long-term liabilities 58,886 54,485 Total $ 271,862 $ 252,027 |
Credit Facility (Tables)
Credit Facility (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Term Loan | Outstanding principal payments under the Term Loan are due as follows: Fiscal year (in thousands) Remainder of fiscal 2018 $ 5,625 2019 14,062 2020 17,813 2021 27,187 2022 75,000 Total $ 139,687 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
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: April 30, October 31, (in thousands) Cumulative currency translation adjustments $ (60,449 ) $ (70,407 ) Unrealized gain (loss) on derivative instruments, net of taxes (1,940 ) 4,428 Total accumulated other comprehensive income (loss) $ (62,389 ) $ (65,979 ) |
Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income | The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statement of operations: Gain (loss) on cash flow hedges, net of taxes Revenues $ (169 ) $ (428 ) $ 1,498 $ (2,181 ) Operating expenses 5,711 (1,310 ) 9,350 (3,412 ) Gain (loss) on available-for-sale securities Other income (expense) — — — 1 Total reclassifications into net income $ 5,542 $ (1,738 ) $ 10,848 $ (5,592 ) |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase And Reissuance Activities | Stock repurchase activities are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Total shares repurchased(1)(2) 916 1,381 2,902 2,775 Total cost of the repurchased shares (1)(2) $ 75,000 $ 100,000 $ 255,000 $ 180,000 Reissuance of treasury stock 925 1,502 1,420 1,870 (1) The first quarter of fiscal 2018 includes the settlement of the $20.0 million equity forward contract related to the September 2017 ASR. (2) The Company also repurchased 0.4 million shares at an average price of $82.61 per share, for an aggregate purchase price of $35.0 million during the three months ended April 30, 2018. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Arrangements | The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Cost of products $ 3,460 $ 2,813 $ 6,843 $ 5,812 Cost of maintenance and service 1,290 947 2,537 1,808 Research and development expense 15,150 12,568 30,546 25,452 Sales and marketing expense 6,875 4,807 13,496 9,936 General and administrative expense 6,190 4,427 11,866 8,388 Stock compensation expense before taxes 32,965 25,562 65,288 51,396 Income tax benefit (6,336 ) (7,065 ) (12,548 ) (14,206 ) Stock compensation expense after taxes $ 26,629 $ 18,497 $ 52,740 $ 37,190 |
Schedule of Intrinsic Value of Equity Awards Exercised | The intrinsic values of equity awards exercised during the periods are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Intrinsic value of awards exercised $ 12,017 $ 22,369 $ 30,792 $ 28,656 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted-Average Common Shares Used to Calculate Net Income Per Share | The table below reconciles the weighted-average common shares used to calculate basic net income per share with the weighted-average common shares used to calculate diluted net income per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands, except per share amounts) Numerator: Net income $ 102,472 $ 53,306 $ 98,781 $ 139,894 Denominator: Weighted-average common shares for basic net income per share 149,034 150,384 149,245 150,583 Dilutive effect of potential common shares from equity-based compensation 4,133 4,477 4,419 4,171 Weighted-average common shares for diluted net income per share 153,167 154,861 153,664 154,754 Net income per share: Basic $ 0.69 $ 0.35 $ 0.66 $ 0.93 Diluted $ 0.67 $ 0.34 $ 0.64 $ 0.90 Anti-dilutive employee stock-based awards excluded(1) 761 948 618 738 (1) These employee stock-based awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future. |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Segment Reporting [Abstract] | |
Revenues Related to Operations by Geographic Areas | Revenues related to operations in the United States and other geographic areas were: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Revenue: United States $ 376,636 $ 350,489 $ 761,210 $ 669,908 Europe 97,014 78,395 182,479 154,068 Japan 70,435 57,206 138,824 118,904 Asia-Pacific and Other 232,751 193,979 463,749 389,975 Consolidated $ 776,836 $ 680,069 $ 1,546,262 $ 1,332,855 |
Other Income (Expense), net (Ta
Other Income (Expense), net (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Components of Other Income (Expense), Net | The following table presents the components of other income (expense), net: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Interest income $ 927 $ 1,499 $ 2,563 $ 2,733 Interest expense (3,880 ) (1,860 ) (6,723 ) (3,168 ) Gain (loss) on assets related to executive deferred compensation plan assets (7,245 ) 7,763 6,195 15,543 Foreign currency exchange gain (loss) 1,117 (623 ) 98 2,599 Other, net 1,366 1,635 2,537 2,194 Total $ (7,715 ) $ 8,414 $ 4,670 $ 19,901 |
Taxes (Tables)
Taxes (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes and Effective Tax Rates | The following table presents the provision (benefit) for income taxes and the effective tax rates: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Income before income taxes $ 119,299 $ 62,020 $ 239,402 $ 170,381 Provision (benefit) for income taxes $ 16,827 $ 8,714 $ 140,621 $ 30,487 Effective tax rate 14.1 % 14.1 % 58.7 % 17.9 % |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | Dec. 11, 2017 | Apr. 30, 2018 | Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2017 |
Business Acquisition [Line Items] | |||||
Payments to acquire businesses, net of cash, cash equivalents and short-term investments | $ 631,100 | ||||
Goodwill | $ 3,147,124 | 3,147,124 | $ 2,706,974 | ||
Payment to acquire business net of cash acquired | 643,537 | $ 187,624 | |||
Black Duck Software | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire businesses, net of cash, cash equivalents and short-term investments | 544,000 | ||||
Consideration transfered | $ 565,100 | 565,088 | |||
Goodwill | 396,346 | 396,346 | |||
Identifiable intangibles assets acquired | 178,000 | 178,000 | |||
Acquisition-related costs | 1,900 | 13,500 | |||
Fair value of equity awards acquired | 15,600 | ||||
Fair value of assumed equity awards allocated to purchase consideration | 1,588 | ||||
Fair value of stock options assumed | 14,000 | ||||
Series of Individually Immaterial Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 38,400 | 38,400 | |||
Identifiable intangibles assets acquired | $ 50,200 | 50,200 | |||
Acquisition-related costs | 3,300 | ||||
Payment to acquire business net of cash acquired | $ 87,100 | ||||
Minimum | Black Duck Software | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible asset, useful life | 1 year | ||||
Minimum | Series of Individually Immaterial Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible asset, useful life | 1 year | ||||
Maximum | Black Duck Software | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible asset, useful life | 10 years | ||||
Maximum | Series of Individually Immaterial Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible asset, useful life | 7 years |
Business Combinations - Schedul
Business Combinations - Schedule of Acquisition Purchase Price (Details) - USD ($) $ in Thousands | Dec. 11, 2017 | Apr. 30, 2018 | Oct. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,147,124 | $ 2,706,974 | |
Black Duck Software | |||
Business Acquisition [Line Items] | |||
Cash paid | 563,500 | ||
Fair value of assumed equity awards allocated to purchase consideration | 1,588 | ||
Total consideration | $ 565,100 | 565,088 | |
Goodwill | 396,346 | ||
Identifiable intangibles assets acquired | 178,000 | ||
Cash, cash equivalents and short-term investments | 19,491 | ||
Other tangible liabilities acquired, net | (13,249) | ||
Deferred revenue | (15,500) | ||
Total purchase allocation | $ 565,088 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets - Summary of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Apr. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
As of October 31, 2017 | $ 2,706,974 |
Additions | 434,741 |
Adjustments | (76) |
Effect of foreign currency translation | 5,485 |
As of April 30, 2018 | $ 3,147,124 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 1,395,791 | $ 1,166,198 |
Accumulated Amortization | 973,596 | 912,355 |
Net Assets | 422,195 | 253,843 |
Core/developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 767,764 | 647,975 |
Accumulated Amortization | 563,097 | 526,796 |
Net Assets | 204,667 | 121,179 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 358,090 | 278,811 |
Accumulated Amortization | 185,128 | 166,886 |
Net Assets | 172,962 | 111,925 |
Contract rights intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 184,180 | 174,615 |
Accumulated Amortization | 174,861 | 172,178 |
Net Assets | 9,319 | 2,437 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 42,929 | 25,329 |
Accumulated Amortization | 19,599 | 17,401 |
Net Assets | 23,330 | 7,928 |
In Process Research and Development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 8,200 | 6,600 |
Accumulated Amortization | 0 | 0 |
Net Assets | 8,200 | 6,600 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 34,628 | 32,868 |
Accumulated Amortization | 30,911 | 29,094 |
Net Assets | $ 3,717 | $ 3,774 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | $ 32,082 | $ 28,486 | $ 61,549 | $ 58,971 |
Core/developed technology | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 18,985 | 16,471 | 37,053 | 34,754 |
Customer relationships | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 9,656 | 6,844 | 18,219 | 13,736 |
Contract rights intangible | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 1,372 | 3,286 | 2,262 | 6,677 |
Trademarks and trade names | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | 1,172 | 896 | 2,198 | 1,838 |
Capitalized software development costs | ||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization expense of intangible assets | $ 897 | $ 989 | $ 1,817 | $ 1,966 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) $ in Thousands | Apr. 30, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2018 | $ 61,217 |
2,019 | 100,646 |
2,020 | 76,226 |
2,021 | 54,693 |
2,022 | 43,227 |
2023 and thereafter | 77,986 |
IPR&D | 8,200 |
Total | $ 422,195 |
Financial Assets and Liabilit44
Financial Assets and Liabilities - Short-term investments (Details) - Cash equivalents - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | $ 85,216 | $ 560,594 |
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 | 85,216 | 560,594 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, cost | 85,216 | 560,594 |
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 | $ 85,216 | $ 560,594 |
Financial Assets and Liabilit45
Financial Assets and Liabilities - Additional Information (Details) | 6 Months Ended |
Apr. 30, 2018 | |
Financial Assets and Liabilities [Line Items] | |
Shipments period using hedges (in months) | 1 month |
Period for hedge balance in OCI to be reclassified to statement of operations (in months) | 12 months |
Non-Designated Hedging Instrument | |
Financial Assets and Liabilities [Line Items] | |
Forward contracts terms (in months) | 1 month |
Foreign currency derivative contracts | Minimum | |
Financial Assets and Liabilities [Line Items] | |
Derivative maturity period | 1 month |
Foreign currency derivative contracts | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Derivative maturity period | 22 months |
Foreign currency derivative contracts | Cash Flow Hedging | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Derivative maturity period | 3 years |
Foreign Exchange Forward | Cash Flow Hedging | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Derivative maturity period | 22 months |
Foreign Exchange Contracts | Maximum | |
Financial Assets and Liabilities [Line Items] | |
Duration of foreign exchange forward contracts | 1 year |
Financial Assets and Liabilit46
Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Financial Assets And Liabilities [Abstract] | ||||
Gain (loss) recorded in other income (expense), net | $ 1,248 | $ 1,263 | $ (323) | $ 1,322 |
Financial Assets and Liabilit47
Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Financial Assets And Liabilities [Abstract] | ||
Total gross notional amount | $ 944,808 | $ 955,139 |
Net fair value | $ 3,752 | $ 14,052 |
Financial Assets and Liabilit48
Financial Assets and Liabilities - Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Designated As Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | $ 10,122 | $ 16,582 |
Designated As Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | 5,837 | 2,485 |
Non-Designated Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | 57 | 15 |
Non-Designated Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | $ 590 | $ 59 |
Financial Assets and Liabilit49
Financial Assets and Liabilities - Unaudited Condensed Consolidated Statement of Operations Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Financial Assets and Liabilities [Line Items] | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | $ (8,533) | $ 4,065 | $ 4,480 | $ 10,610 |
Amount of gain (loss) reclassified from OCI (effective portion) | 5,542 | (1,738) | 10,848 | (5,593) |
Foreign Exchange Contracts | Revenues | ||||
Financial Assets and Liabilities [Line Items] | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 662 | (1,604) | (1,964) | 7,000 |
Amount of gain (loss) reclassified from OCI (effective portion) | (169) | (428) | 1,498 | (2,181) |
Foreign Exchange Contracts | Operating expenses | ||||
Financial Assets and Liabilities [Line Items] | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | (9,195) | 5,669 | 6,444 | 3,610 |
Amount of gain (loss) reclassified from OCI (effective portion) | $ 5,711 | $ (1,310) | $ 9,350 | $ (3,412) |
Financial Assets and Liabilit50
Financial Assets and Liabilities - Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) (Detail) - Foreign Exchange Contracts - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Financial Assets and Liabilities [Line Items] | ||||
Amount of gain (loss) recognized in statement of operations on derivatives (ineffective portion) | $ 308 | $ (5) | $ 522 | $ 164 |
Amount of gain (loss) recognized in statement of operations on derivatives (excluded from effectiveness testing) | $ 607 | $ 1,499 | $ 1,707 | $ 2,617 |
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 | Apr. 30, 2018 | Oct. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 308,371 | $ 774,732 |
Total liabilities | 219,403 | 200,086 |
Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 10,179 | 16,596 |
Accounts payable and accrued liabilities | 6,427 | 2,544 |
Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 212,976 | 197,542 |
Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 212,976 | 197,542 |
Money market funds | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 85,216 | 560,594 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 298,192 | 758,136 |
Total liabilities | 212,976 | 197,542 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 212,976 | 197,542 |
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 | 212,976 | 197,542 |
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 | 85,216 | 560,594 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 10,179 | 16,596 |
Total liabilities | 6,427 | 2,544 |
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 | 10,179 | 16,596 |
Accounts payable and accrued liabilities | 6,427 | 2,544 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Write-down of long-term investments | $ 0 | $ 0 | $ 0 | $ 1,300 |
Liabilities and Restructuring53
Liabilities and Restructuring Charges - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 2,176,000 | $ 12,907,000 | $ 1,894,000 | $ 25,012,000 | |
Employee Severance and Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1,800,000 | $ 36,600,000 | |||
Cash payments | 9,400,000 | 17,300,000 | |||
Employee related restructuring liabilities | 900,000 | 900,000 | $ 17,500,000 | ||
Minimum | Employee Severance and Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 8,000,000 | 8,000,000 | |||
Maximum | Employee Severance and Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 10,000,000 | $ 10,000,000 |
Liabilities and Restructuring54
Liabilities and Restructuring Charges - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payroll and related benefits | $ 234,734 | $ 382,773 |
Other accrued liabilities | 95,725 | 97,119 |
Accounts payable | 43,479 | 19,954 |
Total | $ 373,938 | $ 499,846 |
Liabilities and Restructuring55
Liabilities and Restructuring Charges - Components of Other Long Term Liabilities (Detail) - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | ||
Deferred compensation liability | $ 212,976 | $ 197,542 |
Other long-term liabilities | 58,886 | 54,485 |
Total | $ 271,862 | $ 252,027 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | Nov. 28, 2016 | Dec. 31, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2017 | May 19, 2015 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 127,500,000 | $ 134,063,000 | ||||
Proceeds from Lines of Credit | 450,000,000 | $ 250,000,000 | ||||
Unsecured Debt | The Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 650,000,000 | $ 500,000,000 | ||||
Additional borrowings from credit facility | 150,000,000 | |||||
Line of Credit, Current | $ 385,000,000 | 0 | ||||
Proceeds from Lines of Credit | $ 450,000,000 | |||||
Unsecured Debt | The Credit Agreement | Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees percentage | 0.125% | |||||
Unsecured Debt | The Credit Agreement | Revolving Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees percentage | 0.20% | |||||
Unsecured Debt | The Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings, interest rate | 1.00% | |||||
Unsecured Debt | The Credit Agreement | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured term loan facility, face amount | $ 150,000,000 | |||||
Total Outstanding senior unsecured term loan facility | $ 139,300,000 | 144,000,000 | ||||
Long-term debt | $ 127,500,000 | $ 134,100,000 | ||||
Unsecured Debt | The Credit Agreement | Term Loan | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings, interest rate | 1.125% |
Credit Facility - Schedule of M
Credit Facility - Schedule of Maturities of Term Loan (Details) - Term Loan - Unsecured Debt - The Credit Agreement $ in Thousands | Apr. 30, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2018 | $ 5,625 |
2,019 | 14,062 |
2,020 | 17,813 |
2,021 | 27,187 |
2,022 | 75,000 |
Total | $ 139,687 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative currency translation adjustments | $ (60,449) | $ (70,407) |
Unrealized gain (loss) on derivative instruments, net of taxes | (1,940) | 4,428 |
Total accumulated other comprehensive income (loss) | $ (62,389) | $ (65,979) |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Income (Loss) - Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) - Reclassification out of accumulated other comprehensive income (loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | $ 5,542 | $ (1,738) | $ 10,848 | $ (5,592) |
Revenues | Gain (loss) on cash flow hedges, net of taxes | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | (169) | (428) | 1,498 | (2,181) |
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 | 5,711 | (1,310) | 9,350 | (3,412) |
Other income (expense) | Gain (loss) on available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | $ 0 | $ 0 | $ 0 | $ 1 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |||||||||
Mar. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($)share_repurchase_program | Nov. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Apr. 30, 2018USD ($)$ / sharesshares | Jan. 31, 2018USD ($) | Nov. 30, 2017$ / sharesshares | Apr. 30, 2017shares | Mar. 31, 2018$ / sharesshares | Apr. 30, 2018USD ($)shares | Apr. 30, 2017shares | Apr. 05, 2018USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Stock repurchase program authorized amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||||||
Remaining amount available for further repurchases | $ 490,000,000 | $ 490,000,000 | |||||||||||
Shares repurchased (in shares) | shares | 916 | 1,381 | 2,902 | 2,775 | |||||||||
Accelerated Share Repurchase Program September 2017 | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Stock repurchase program authorized amount | $ 100,000,000 | ||||||||||||
Prepayment amount | 100,000,000 | ||||||||||||
Accelerated share repurchase, initial share delivery, amount | $ 80,000,000 | ||||||||||||
Stock repurchase program, prepayment during prior period, derivative settlement | $ 20,000,000 | $ 20,000,000 | |||||||||||
Shares repurchased (in shares) | shares | 1,200 | ||||||||||||
Average purchase price of shares purchased under agreement (in USD per share) | $ / shares | $ 83.80 | ||||||||||||
Accelerated Share Repurchase Program December 2017 | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Stock repurchase program authorized amount | $ 200,000,000 | ||||||||||||
Prepayment amount | 200,000,000 | ||||||||||||
Accelerated share repurchase, initial share delivery, amount | $ 160,000,000 | ||||||||||||
Stock repurchase program, prepayment during prior period, derivative settlement | $ 20,000,000 | $ 20,000,000 | |||||||||||
Shares repurchased (in shares) | shares | 2,300 | ||||||||||||
Average purchase price of shares purchased under agreement (in USD per share) | $ / shares | $ 87.08 | ||||||||||||
Accelerated share repurchase programs entered into | share_repurchase_program | 2 | ||||||||||||
Open Market Share Repurchase | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Shares repurchased (in shares) | shares | 400 | ||||||||||||
Average purchase price of shares purchased under agreement (in USD per share) | $ / shares | $ 82.61 | ||||||||||||
Stock repurchased during period, value | $ 35,000,000 |
Stock Repurchase Program - Stoc
Stock Repurchase Program - Stock Repurchase Activities (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Stock Repurchase Program [Abstract] | ||||
Shares repurchased (in shares) | 916 | 1,381 | 2,902 | 2,775 |
Total cost of the repurchased shares | $ 75,000 | $ 100,000 | $ 255,000 | $ 180,000 |
Reissuance of treasury stock (in shares) | 925 | 1,502 | 1,420 | 1,870 |
Stock Compensation - Stock Comp
Stock Compensation - Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | $ 32,965 | $ 25,562 | $ 65,288 | $ 51,396 |
Income tax benefit | (6,336) | (7,065) | (12,548) | (14,206) |
Stock compensation expense after taxes | 26,629 | 18,497 | 52,740 | 37,190 |
Cost of products | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | 3,460 | 2,813 | 6,843 | 5,812 |
Cost of maintenance and service | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | 1,290 | 947 | 2,537 | 1,808 |
Research and development expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | 15,150 | 12,568 | 30,546 | 25,452 |
Sales and marketing expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | 6,875 | 4,807 | 13,496 | 9,936 |
General and administrative expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense before taxes | $ 6,190 | $ 4,427 | $ 11,866 | $ 8,388 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | Jan. 31, 2017 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Share-based compensation, excess tax benefit, amount | $ 3.3 | $ 8.3 | $ 10.8 | $ 11.3 | |
Unamortized share-based compensation expense | $ 220.8 | $ 220.8 | |||
Weighted-average period of total compensation costs to be recognized in years | 2 years 3 months 18 days | ||||
Other Assumed Stock Plans | |||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Share based compensation arrangement assumed stock plans remaining outstanding shares (in shares) | 0.4 |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Intrinsic Value of Equity Awards Exercised (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Stock Compensation [Abstract] | ||||
Intrinsic value of awards exercised | $ 12,017 | $ 22,369 | $ 30,792 | $ 28,656 |
Net Income per Share - Reconcil
Net Income per Share - Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Numerator: | ||||
Net income | $ 102,472 | $ 53,306 | $ 98,781 | $ 139,894 |
Denominator: | ||||
Weighted-average common shares for basic net income per share (shares) | 149,034 | 150,384 | 149,245 | 150,583 |
Dilutive effect of potential common shares from equity-based compensation (shares) | 4,133 | 4,477 | 4,419 | 4,171 |
Weighted-average common shares for diluted net income per share (shares) | 153,167 | 154,861 | 153,664 | 154,754 |
Net income per share: | ||||
Basic (in USD per share) | $ 0.69 | $ 0.35 | $ 0.66 | $ 0.93 |
Diluted (in USD per share) | $ 0.67 | $ 0.34 | $ 0.64 | $ 0.90 |
Anti-dilutive employee stock-based awards excluded (shares) | 761 | 948 | 618 | 738 |
Segment Disclosure - Revenues R
Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | $ 776,836 | $ 680,069 | $ 1,546,262 | $ 1,332,855 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | 376,636 | 350,489 | 761,210 | 669,908 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | 97,014 | 78,395 | 182,479 | 154,068 |
Japan | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | 70,435 | 57,206 | 138,824 | 118,904 |
Asia-Pacific and Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Consolidated | $ 232,751 | $ 193,979 | $ 463,749 | $ 389,975 |
Segment Disclosure - Additional
Segment Disclosure - Additional information (Detail) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018SegmentCustomer | Apr. 30, 2017SegmentCustomer | Apr. 30, 2018SegmentCustomer | Apr. 30, 2017SegmentCustomer | |
Segment Reporting Information [Line Items] | ||||
Number of reportable operating segment | Segment | 1 | 1 | 1 | 1 |
Customer concentration risk | Sales revenue | ||||
Segment Reporting Information [Line Items] | ||||
Number of major customers | Customer | 1 | 1 | 1 | 1 |
Other Income (Expense), net - C
Other Income (Expense), net - Components of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Other Income (Expense) | ||||
Interest income | $ 927 | $ 1,499 | $ 2,563 | $ 2,733 |
Interest expense | (3,880) | (1,860) | (6,723) | (3,168) |
Gain (loss) on assets related to executive deferred compensation plan assets | (7,245) | 7,763 | 6,195 | 15,543 |
Foreign currency exchange gain (loss) | 1,117 | (623) | 98 | 2,599 |
Other, net | 1,366 | 1,635 | 2,537 | 2,194 |
Total | $ (7,715) | $ 8,414 | $ 4,670 | $ 19,901 |
Taxes - Provision for Income Ta
Taxes - Provision for Income Taxes and Effective Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 119,299 | $ 62,020 | $ 239,402 | $ 170,381 |
Provision (benefit) for income taxes | $ 16,827 | $ 8,714 | $ 140,621 | $ 30,487 |
Effective tax rate | 14.10% | 14.10% | 58.70% | 17.90% |
Taxes - Additional Information
Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2017 | Apr. 30, 2018 | Jan. 31, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Jan. 31, 2017 | Nov. 01, 2016 | |
Taxes [Line Items] | ||||||||||
Increase in income tax expense as result of the Tax Cuts and Jobs Act | $ 119,000,000 | |||||||||
Provisional tax charge as result of deferred tax remeasurement due to Tax Cuts and Jobs Act | 46,000,000 | |||||||||
Provisional transition tax expense as result of the Tax Cuts and Jobs Act | 71,000,000 | |||||||||
Income taxes payable on foreign earnings as result of the Tax Cuts and Jobs Act | $ 18,000,000 | 78,000,000 | ||||||||
Deferred income taxes | 138,066,000 | $ 138,066,000 | $ 243,989,000 | |||||||
Share-based compensation, excess tax benefit, amount | 3,300,000 | $ 8,300,000 | 10,800,000 | $ 11,300,000 | ||||||
Minimum | ||||||||||
Taxes [Line Items] | ||||||||||
Estimated potential decrease in underlying unrecognized tax benefits | 0 | 0 | ||||||||
Maximum | ||||||||||
Taxes [Line Items] | ||||||||||
Estimated potential decrease in underlying unrecognized tax benefits | $ 13,000,000 | $ 13,000,000 | ||||||||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||||||||||
Taxes [Line Items] | ||||||||||
Deferred income taxes | $ 106,500,000 | |||||||||
Retained Earnings | Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||||||||||
Taxes [Line Items] | ||||||||||
Cumulative effect adjustment | $ 106,500,000 | |||||||||
State | ||||||||||
Taxes [Line Items] | ||||||||||
Provisional transition tax expense as result of the Tax Cuts and Jobs Act | $ 2,000,000 | |||||||||
Synopsys Hungary | Foreign Tax Authority | Tax Year 2011 - Tax Year 2013 | Hungarian Tax Authority | ||||||||||
Taxes [Line Items] | ||||||||||
Estimate of tax assessment | $ 47,000,000 | |||||||||
Estimate of additional penalties and interest | 18,000,000 | |||||||||
Synopsys Hungary | Foreign Tax Authority | Fiscal Year 2015 and Beyond | Hungarian Tax Authority | ||||||||||
Taxes [Line Items] | ||||||||||
Estimate of tax assessment | $ 18,000,000 | |||||||||
Scenario, Forecast | ||||||||||
Taxes [Line Items] | ||||||||||
Statutory federal income tax rate | 23.40% |
Contingencies (Details)
Contingencies (Details) - Mentor Patent Litigation - Pending Litigation $ in Millions | Oct. 10, 2014USD ($) | Oct. 04, 2012lawsuitpatent | Mar. 16, 2017USD ($) |
Loss Contingencies [Line Items] | |||
Loss contingency, patent infringement lawsuits | lawsuit | 3 | ||
Loss contingency, patents allegedly infringed | patent | 3 | ||
Loss contingency, value of damages sought | $ 36 | ||
Loss contingency, estimate of possible loss accrued | $ 39 |