Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2023 | May 17, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-19807 | |
Entity Registrant Name | SYNOPSYS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-1546236 | |
Entity Address, Address Line One | 690 EAST MIDDLEFIELD ROAD | |
Entity Address, City or Town | MOUNTAIN VIEW | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94043 | |
City Area Code | 650 | |
Local Phone Number | 584-5000 | |
Title of 12(b) Security | Common Stock(par value of $0.01 per share) | |
Trading Symbol | SNPS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 152,159,561 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000883241 | |
Current Fiscal Year End Date | --10-31 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,544,592 | $ 1,417,608 |
Short-term investments | 150,846 | 147,913 |
Total cash, cash equivalents and short-term investments | 1,695,438 | 1,565,521 |
Accounts receivable, net | 779,892 | 796,091 |
Inventories | 256,426 | 211,927 |
Prepaid and other current assets | 429,179 | 439,130 |
Total current assets | 3,160,935 | 3,012,669 |
Property and equipment, net | 546,439 | 483,300 |
Operating lease right-of-use assets, net | 576,727 | 559,090 |
Goodwill | 3,888,249 | 3,842,234 |
Intangible assets, net | 357,113 | 386,446 |
Deferred income taxes | 774,391 | 670,653 |
Other long-term assets | 486,878 | 463,695 |
Total assets | 9,790,732 | 9,418,087 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 701,816 | 809,403 |
Operating lease liabilities | 78,056 | 54,274 |
Deferred revenue | 1,968,808 | 1,910,822 |
Total current liabilities | 2,748,680 | 2,774,499 |
Long-term operating lease liabilities | 591,667 | 581,273 |
Long-term deferred revenue | 191,413 | 154,472 |
Long-term debt | 20,201 | 20,824 |
Other long-term liabilities | 365,949 | 327,829 |
Total liabilities | 3,917,910 | 3,858,897 |
Redeemable non-controlling interest | 35,877 | 38,664 |
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; 152,251 and 152,375 shares outstanding, respectively | 1,523 | 1,524 |
Capital in excess of par value | 1,330,072 | 1,487,126 |
Retained earnings | 6,075,009 | 5,534,307 |
Treasury stock, at cost: 5,010 and 4,886 shares, respectively | (1,428,748) | (1,272,955) |
Accumulated other comprehensive income (loss) | (145,997) | (234,277) |
Total Synopsys stockholders’ equity | 5,831,859 | 5,515,725 |
Non-controlling interest | 5,086 | 4,801 |
Total stockholders’ equity | 5,836,945 | 5,520,526 |
Total liabilities, redeemable non-controlling interest and stockholders’ equity | $ 9,790,732 | $ 9,418,087 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2023 | Oct. 31, 2022 |
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) | 152,251,000 | 152,375,000 |
Treasury stock, shares (in shares) | 5,010,000 | 4,886,000 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Revenue: | ||||
Total revenue | $ 1,394,863 | $ 1,279,229 | $ 2,756,203 | $ 2,549,484 |
Cost of revenue: | ||||
Amortization of intangible assets | 17,872 | 14,455 | 36,512 | 27,815 |
Total cost of revenue | 298,014 | 252,811 | 582,368 | 509,795 |
Gross margin | 1,096,849 | 1,026,418 | 2,173,835 | 2,039,689 |
Operating expenses: | ||||
Research and development | 485,597 | 389,964 | 950,926 | 773,935 |
Sales and marketing | 222,115 | 191,573 | 432,900 | 372,083 |
General and administrative | 91,083 | 73,957 | 188,447 | 154,965 |
Amortization of intangible assets | 6,582 | 6,912 | 13,299 | 15,912 |
Restructuring charges | 4,140 | 311 | 44,999 | 12,057 |
Total operating expenses | 809,517 | 662,717 | 1,630,571 | 1,328,952 |
Operating income | 287,332 | 363,701 | 543,264 | 710,737 |
Other income (expense), net | 4,253 | (23,913) | 27,545 | (43,706) |
Income before income taxes | 291,585 | 339,788 | 570,809 | 667,031 |
Provision (benefit) for income taxes | 21,637 | 45,896 | 32,234 | 59,798 |
Net income | 269,948 | 293,892 | 538,575 | 607,233 |
Net income (loss) attributed to non-controlling interest and redeemable non-controlling interest | (2,962) | (889) | (5,871) | (1,235) |
Net income attributed to Synopsys | $ 272,910 | $ 294,781 | $ 544,446 | $ 608,468 |
Net income per share attributed to Synopsys: | ||||
Basic (in USD per share) | $ 1.79 | $ 1.93 | $ 3.57 | $ 3.97 |
Diluted (in USD per share) | $ 1.76 | $ 1.89 | $ 3.51 | $ 3.88 |
Shares used in computing per share amounts: | ||||
Basic (shares) | 152,187 | 153,090 | 152,294 | 153,154 |
Diluted (shares) | 154,730 | 156,167 | 155,044 | 156,815 |
Product | ||||
Revenue: | ||||
Total revenue | $ 1,153,720 | $ 1,060,446 | $ 2,272,691 | $ 2,136,203 |
Cost of revenue: | ||||
Cost of revenue | 184,732 | 150,690 | 359,099 | 316,089 |
Time-based products | ||||
Revenue: | ||||
Total revenue | 808,196 | 723,821 | 1,590,509 | 1,431,304 |
Upfront products | ||||
Revenue: | ||||
Total revenue | 345,524 | 336,625 | 682,182 | 704,899 |
Maintenance and service | ||||
Revenue: | ||||
Total revenue | 241,143 | 218,783 | 483,512 | 413,281 |
Cost of revenue: | ||||
Cost of revenue | $ 95,410 | $ 87,666 | $ 186,757 | $ 165,891 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 269,948 | $ 293,892 | $ 538,575 | $ 607,233 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (8,788) | (39,999) | 31,529 | (40,612) |
Changes in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented | 380 | (1,173) | 1,538 | (1,673) |
Cash flow hedges: | ||||
Deferred gains (losses), net of tax $1,959 and $(12,848) for the three and six months ended April 30, 2023, respectively, and of $9,181 and $9,411 for each of the same periods in fiscal 2022, respectively. | (4,530) | (21,132) | 37,582 | (22,717) |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(3,497) and $(6,596), for each of the three and six months ended April 30, 2023, and of $(170) and $(472) for each of the same periods in fiscal 2022, respectively. | 9,274 | 662 | 17,631 | 1,507 |
Other comprehensive income (loss), net of tax effects | (3,664) | (61,642) | 88,280 | (63,495) |
Comprehensive income | 266,284 | 232,250 | 626,855 | 543,738 |
Less: net income (loss) attributed to non-controlling interest and redeemable non-controlling interest | (2,962) | (889) | (5,871) | (1,235) |
Comprehensive income attributed to Synopsys | $ 269,246 | $ 233,139 | $ 632,726 | $ 544,973 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in unrealized gains (losses) on available-for-sale securities, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Deferred gains (losses), tax | 1,959 | 9,181 | (12,848) | 9,411 |
Reclassification adjustment on deferred (gains) losses included in net income, tax | $ (3,497) | $ (170) | $ (6,596) | $ (472) |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Synopsys Stockholders’ Equity | Non-controlling Interest | |
Balance (in shares) at Oct. 31, 2021 | 153,062 | ||||||||
Beginning balance at Oct. 31, 2021 | $ 5,298,943 | $ 1,531 | $ 1,576,363 | $ 4,549,713 | $ (782,866) | $ (49,604) | $ 5,295,137 | $ 3,806 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 607,781 | 608,468 | 608,468 | (687) | |||||
Other comprehensive income (loss), net of tax effects | $ (63,495) | (63,495) | (63,495) | ||||||
Purchases of treasury stock (in shares) | (1,685) | (1,685) | |||||||
Purchases of treasury stock | $ (535,000) | $ (16) | 16 | (535,000) | (535,000) | ||||
Equity forward contract, net | $ 35,000 | 35,000 | 35,000 | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 1,578 | 1,578 | |||||||
Common stock issued, net of shares withheld for employee taxes | $ 18,917 | $ 15 | (299,730) | 318,632 | 18,917 | ||||
Stock-based compensation | 205,832 | 205,832 | 205,832 | ||||||
Adjustments to redeemable non-controlling interest | (548) | (548) | (548) | ||||||
Balance (in shares) at Apr. 30, 2022 | 152,955 | ||||||||
Ending balance at Apr. 30, 2022 | 5,567,430 | $ 1,530 | 1,517,481 | 5,157,633 | (999,234) | (113,099) | 5,564,311 | 3,119 | |
Balance (in shares) at Jan. 31, 2022 | 153,256 | ||||||||
Beginning balance at Jan. 31, 2022 | 5,390,233 | $ 1,533 | 1,430,226 | 4,863,400 | (856,929) | (51,457) | 5,386,773 | 3,460 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 294,440 | 294,781 | 294,781 | (341) | |||||
Other comprehensive income (loss), net of tax effects | $ (61,642) | (61,642) | (61,642) | ||||||
Purchases of treasury stock (in shares) | (984) | [1] | (984) | ||||||
Purchases of treasury stock | $ (290,000) | [1] | $ (9) | 9 | (290,000) | (290,000) | |||
Equity forward contract, net | $ 40,000 | 40,000 | 40,000 | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 683 | [1] | 683 | ||||||
Common stock issued, net of shares withheld for employee taxes | $ 84,886 | $ 6 | (62,815) | 147,695 | 84,886 | ||||
Stock-based compensation | 110,061 | 110,061 | 110,061 | ||||||
Adjustments to redeemable non-controlling interest | (548) | (548) | (548) | ||||||
Balance (in shares) at Apr. 30, 2022 | 152,955 | ||||||||
Ending balance at Apr. 30, 2022 | 5,567,430 | $ 1,530 | 1,517,481 | 5,157,633 | (999,234) | (113,099) | 5,564,311 | 3,119 | |
Balance (in shares) at Oct. 31, 2022 | 152,375 | ||||||||
Beginning balance at Oct. 31, 2022 | 5,520,526 | $ 1,524 | 1,487,126 | 5,534,307 | (1,272,955) | (234,277) | 5,515,725 | 4,801 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 543,786 | 544,446 | 544,446 | (660) | |||||
Other comprehensive income (loss), net of tax effects | $ 88,280 | 88,280 | 88,280 | ||||||
Purchases of treasury stock (in shares) | (1,631) | [2] | (1,631) | ||||||
Purchases of treasury stock | $ (560,724) | [2] | $ (16) | 16 | (560,724) | (560,724) | |||
Equity forward contract, net | $ (45,000) | (45,000) | (45,000) | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 1,507 | [2] | 1,507 | ||||||
Common stock issued, net of shares withheld for employee taxes | $ 16,356 | $ 15 | (388,278) | (312) | 404,931 | 16,356 | |||
Stock-based compensation | 277,485 | 275,079 | 275,079 | 2,406 | |||||
Adjustments to redeemable non-controlling interest | (3,432) | (3,432) | (3,432) | ||||||
Recognition of non-controlling interest upon issuance of subsidiary stock | (332) | 1,129 | 1,129 | (1,461) | |||||
Balance (in shares) at Apr. 30, 2023 | 152,251 | ||||||||
Ending balance at Apr. 30, 2023 | 5,836,945 | $ 1,523 | 1,330,072 | 6,075,009 | (1,428,748) | (145,997) | 5,831,859 | 5,086 | |
Balance (in shares) at Jan. 31, 2023 | 152,380 | ||||||||
Beginning balance at Jan. 31, 2023 | 5,642,702 | $ 1,524 | 1,292,900 | 5,805,843 | (1,321,180) | (142,333) | 5,636,754 | 5,948 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 272,544 | 272,910 | 272,910 | (366) | |||||
Other comprehensive income (loss), net of tax effects | $ (3,664) | (3,664) | (3,664) | ||||||
Purchases of treasury stock (in shares) | (825) | [2],[3] | (825) | ||||||
Purchases of treasury stock | $ (300,000) | [2],[3] | $ (8) | 8 | (300,000) | (300,000) | |||
Common stock issued, net of shares withheld for employee taxes (in shares) | 696 | [2],[3] | 696 | ||||||
Common stock issued, net of shares withheld for employee taxes | $ 85,869 | $ 7 | (106,258) | (312) | 192,432 | 85,869 | |||
Stock-based compensation | 143,258 | 142,293 | 142,293 | 965 | |||||
Adjustments to redeemable non-controlling interest | (3,432) | (3,432) | (3,432) | ||||||
Recognition of non-controlling interest upon issuance of subsidiary stock | (332) | 1,129 | 1,129 | (1,461) | |||||
Balance (in shares) at Apr. 30, 2023 | 152,251 | ||||||||
Ending balance at Apr. 30, 2023 | $ 5,836,945 | $ 1,523 | $ 1,330,072 | $ 6,075,009 | $ (1,428,748) | $ (145,997) | $ 5,831,859 | $ 5,086 | |
[1] Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. Excluded the 105,792 shares and $45.0 million equity forward contract from the February 2023 ASR settled in May 2023. Included the 107,020 shares and $45.0 million equity forward contract from the December 2022 ASR settled in February 2023. |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Cash flow from operating activities: | ||
Net income | $ 538,575 | $ 607,233 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and depreciation | 116,922 | 111,962 |
Reduction of operating lease right-of-use assets | 48,073 | 42,412 |
Amortization of capitalized costs to obtain revenue contracts | 39,588 | 34,574 |
Stock-based compensation | 277,485 | 205,832 |
Allowance for credit losses | 6,134 | (4,516) |
Deferred income taxes | (125,090) | 8,944 |
Other non-cash | 4,972 | 7,479 |
Net changes in operating assets and liabilities, net of acquired assets and liabilities: | ||
Accounts receivable | 9,289 | (169,785) |
Inventories | (48,648) | 7,725 |
Prepaid and other current assets | 49,437 | (2,417) |
Other long-term assets | (75,324) | (8,701) |
Accounts payable and accrued liabilities | (162,840) | (181,008) |
Operating lease liabilities | (31,634) | (43,963) |
Income taxes | 94,587 | (34,246) |
Deferred revenue | 76,165 | 324,176 |
Net cash provided by operating activities | 817,691 | 905,701 |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of short-term investments | 67,717 | 43,653 |
Purchases of short-term investments | (68,738) | (45,158) |
Proceeds from sales of long-term investments | 7,248 | 582 |
Purchases of long-term investments | 0 | (7,000) |
Purchases of property and equipment | (91,368) | (67,367) |
Acquisitions, net of cash acquired | (41,324) | (109,060) |
Capitalization of software development costs | (1,247) | (1,065) |
Other | 0 | (600) |
Net cash used in investing activities | (127,712) | (186,015) |
Cash flows from financing activities: | ||
Repayment of debt | (1,294) | (75,938) |
Issuances of common stock | 132,808 | 120,710 |
Payments for taxes related to net share settlement of equity awards | (116,838) | (101,126) |
Purchase of equity forward contract | (45,000) | 0 |
Purchases of treasury stock | (560,724) | (500,000) |
Other | (122) | (2,709) |
Net cash used in financing activities | (591,170) | (559,063) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 27,708 | (19,955) |
Net change in cash, cash equivalents and restricted cash | 126,517 | 140,668 |
Cash, cash equivalents and restricted cash, beginning of year | 1,419,864 | 1,435,183 |
Cash, cash equivalents and restricted cash, end of period | $ 1,546,381 | $ 1,575,851 |
Description of Business
Description of Business | 6 Months Ended |
Apr. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Synopsys, Inc. (Synopsys, we, our or us) provides products and services used across the entire Silicon to Software spectrum, from engineers creating advanced semiconductors to software developers seeking to ensure the security and quality of their code. We are a global leader in electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs), also known as chips. We provide software and hardware used to validate the electronic systems that incorporate chips and the software that runs on them. We also provide technical services and support to help our customers develop advanced chips and electronic systems. These products and services are part of our Design Automation segment. We also offer semiconductor intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. These products and services are part of our Design IP segment. We are also a leading provider of software tools and services that improve the security, quality and compliance of software in a wide variety of industries, including electronics, financial services, automotive, medicine, energy and industrials. These tools and services are part of our Software Integrity segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 6 Months Ended |
Apr. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies and Basis of Presentation We have prepared the accompanying condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Pursuant to these rules and regulations, we have condensed or omitted certain information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The condensed consolidated financial statements are unaudited but, in management’s opinion, we have made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our quarterly results. Our 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 our Annual Report on Form 10-K for the fiscal year ended October 31, 2022 as filed with the SEC on December 12, 2022 (our Annual Report). 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 condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and could have a material impact on our operating results and financial position. Principles of Consolidation. The condensed consolidated financial statements include our accounts and the accounts of our wholly and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year End. Our fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, we have a 53-week year. When a 53-week year occurs, we include the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2023 and 2022 are both 52-week years. Fiscal 2023 will end on October 28, 2023. Fiscal 2022 ended on October 29, 2022. For presentation purposes, the condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. Comparability. Certain reclassifications have been made to the prior period's condensed consolidated financial statements to conform to the current year presentation. The reclassifications did not have a material impact on the prior period's condensed consolidated balance sheets, statements of income, statements of comprehensive income and statements of cash flows. Segment Reporting. Effective in the first quarter of fiscal 2023, we realigned our organizational structure to evaluate the results of our Design IP business separately. Our Chief Operating Decision Maker (CODM), our Chief Executive Officer (CEO), now regularly reviews disaggregated segment information, assesses performance against our key growth strategies and allocates resources based on this new organizational structure. As a result, effective in the first quarter of fiscal 2023, we changed our reportable segments from two reportable segments to the following three reportable segments: (1) Design Automation, which includes EDA tools, system integration solutions and other associated revenue categories, (2) Design IP, which includes IP products, and (3) Software Integrity, which includes a comprehensive solution for building integrity—security, quality and compliance testing—into the customers' software development lifecycle and supply chain. As such, prior period reportable segment results and related disclosures have been reclassified to reflect our current reportable segments. Goodwill. As a result of the change to our reportable segments, we reassessed our reporting units for the evaluation of goodwill during the first quarter of fiscal 2023. Prior to this change, our reporting units were determined to be the same as reportable segments for the purpose of goodwill impairment assessment. Our reassessment determined that we now have three reporting units, which are the same as our reportable segments. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by us. The carrying amount of goodwill at each reporting unit is tested for impairment annually on the first day of the fourth fiscal quarter, or more frequently if facts and circumstances warrant a review. We perform either a qualitative or quantitative assessment for goodwill impairment test. When a quantitative goodwill impairment assessment is performed, we use an income approach based on discounted cash flow analysis, a market approach based on market multiples, or a combination of both. If the fair value of a reporting unit is less than its carrying value, a goodwill impairment loss is recorded for the difference. The change in reporting units was considered a triggering event, indicating a test for goodwill impairment was required before and after the change in reporting units. We performed those impairment tests, which did not result in the identification of an impairment loss as of January 31, 2023. If assumptions or estimates with respect to our future performance vary from what is expected, including but not limited to those assumptions relating to inflationary pressure on costs and geopolitical uncertainties, this may impact the impairment analysis and could reduce the underlying cash flows used to estimate fair values and result in a decline in fair value that may trigger future impairment charges. Significant Accounting Policies. There have been no material changes to our significant accounting policies included in our Annual Report . Recently Issued Accounting Pronouncements In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03), which applies to all equity securities measured at fair value that are subject to contractual sale restrictions. This change prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. The standard will become effective for us beginning on November 1, 2024 and will be applied prospectively. Early adoption is permitted. Any future impact from the adoption of this guidance will depend on the facts and circumstances of future transactions. |
Revenue
Revenue | 6 Months Ended |
Apr. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue The following table showed the percentage of revenue by product groups: Three Months Ended Six Months Ended 2023 2022 2023 2022 EDA 64.6 % 61.6 % 64.4 % 61.5 % Design IP 24.0 % 27.2 % 24.6 % 27.7 % Software Integrity 9.5 % 8.8 % 9.4 % 8.6 % Other 1.9 % 2.4 % 1.6 % 2.2 % Total 100.0 % 100.0 % 100.0 % 100.0 % Contract Balances The contract assets indicated below are presented as prepaid and other current assets in the condensed consolidated balance sheets. The contract assets are transferred to receivables when the rights to invoice and receive payment become unconditional. Unbilled receivables are presented as accounts receivable, net, in the condensed consolidated balance sheets. Contract balances were as follows: As of April 30, 2023 October 31, 2022 (in thousands) Contract assets, net $ 249,195 $ 260,498 Unbilled receivables $ 44,265 $ 46,254 Deferred revenue $ 2,160,221 $ 2,065,294 During the three and six months ended April 30, 2023, we recognized revenue of $425.2 million and $1.2 billion, respectively, that was included in the deferred revenue balance as of October 31, 2022. Contracted but unsatisfied or partially unsatisfied performance obligations were approximately $7.3 billion as of April 30, 2023, which includes $1.4 billion in non-cancellable Flexible Spending Account (FSA) commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date. We have elected to exclude future sales-based royalty payments from the remaining performance obligations. Approximately 42% of the contracted but unsatisfied or partially unsatisfied performance obligations as of April 30, 2023, excluding non-cancellable FSA, are expected to be recognized over the next 12 months, with the remainder recognized thereafter. During the three and six months ended April 30, 2023, we recognized $26.9 million and $51.6 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods. During the three and six months ended April 30, 2022, we recognized $37.7 million and $69.7 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods. Costs of Obtaining a Contract with Customer |
Business Combination
Business Combination | 6 Months Ended |
Apr. 30, 2023 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination During the six months ended April 30, 2023, we completed one acquisition for aggregate purchase consideration of $38.6 million, net of cash acquired. The purchase consideration was allocated as follows: $20.3 million to identifiable intangible assets and $23.0 million to goodwill. The total purchase consideration is preliminary, and as additional information becomes available, we may further revise it during the remainder of the measurement period, which will not exceed 12 months from the closing of the acquisition. The goodwill recognized was assigned to the Design Automation reporting unit, and was not deductible for income tax purposes. We have included the financial results of this acquisition in our condensed consolidated financial statements from the date of acquisition. These results were not material to our condensed consolidated financial statements. Transaction costs were $2.7 million and $5.3 million during the three and six months ended April 30, 2023 , respectively. Transaction costs were $4.0 million and $6.1 million during the three and six months ended April 30, 2022 , respectively. These costs mainly consisted of professional fees and administrative costs and were expensed as incurred in our condensed consolidated statements of income. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Apr. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill As a result of the change in reporting units effective in the first quarter of fiscal 2023, we estimated the fair value of our new reporting units and reallocated goodwill to the reporting units using a relative fair value method. No impairment of goodwill was identified for any period presented. The changes in the carrying amount of goodwill during the six months ended April 30, 2023 were as follows: (in thousands) Balance at October 31, 2022 $ 3,842,234 Additions 23,029 Adjustments 3,054 Effect of foreign currency translation 19,932 Balance at April 30, 2023 $ 3,888,249 During the six months ended April 30, 2023, we finalized certain estimates impacting total preliminary purchase consideration for certain acquisitions and recorded the resulting measurement period adjustments which increased goodwill. Intangible Assets Intangible assets as of April 30, 2023 consisted of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,097,217 $ 848,890 $ 248,327 Customer relationships 431,303 345,857 85,446 Contract rights intangible 193,594 189,953 3,641 Trademarks and trade names 52,795 35,840 16,955 Capitalized software development costs 49,838 47,094 2,744 Total $ 1,824,747 $ 1,467,634 $ 357,113 Intangible assets as of October 31, 2022 consisted of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,083,703 $ 813,226 $ 270,477 Customer relationships 426,242 333,984 92,258 Contract rights intangible 190,666 188,262 2,404 Trademarks and trade names 52,795 34,054 18,741 Capitalized software development costs 48,591 46,025 2,566 Total $ 1,801,997 $ 1,415,551 $ 386,446 Amortization expense related to intangible assets consisted of the following: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Core/developed technology $ 17,481 $ 13,728 $ 35,750 $ 26,576 Customer relationships 5,689 6,312 11,513 14,497 Contract rights intangible 391 727 762 1,454 Trademarks and trade names 893 600 1,786 1,200 Capitalized software development costs (1) 510 681 1,069 1,433 Total $ 24,964 $ 22,048 $ 50,880 $ 45,160 (1) Amortization of capitalized software development costs is included in cost of products revenue in the condensed consolidated statements of income. The following table presented the estimated future amortization of intangible assets as of April 30, 2023: Fiscal year (in thousands) Remainder of fiscal 2023 $ 50,787 2024 92,016 2025 74,135 2026 61,060 2027 40,858 2028 and thereafter 38,257 Total $ 357,113 |
Balance Sheets Components
Balance Sheets Components | 6 Months Ended |
Apr. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheets Components | Balance Sheets Components As of April 30, 2023 October 31, 2022 (in thousands) Other long-term assets: Deferred compensation plan assets $ 310,872 $ 279,096 Capitalized commission, net 97,933 96,509 Other 78,073 88,090 Total $ 486,878 $ 463,695 Accounts payable and accrued liabilities: Payroll and related benefits $ 374,587 $ 559,886 Other accrued liabilities 242,832 211,937 Accounts payable 84,397 37,580 Total $ 701,816 $ 809,403 Other long-term liabilities: Deferred compensation plan liabilities $ 310,872 $ 279,096 Other 55,077 48,733 Total $ 365,949 $ 327,829 |
Financial Assets and Liabilitie
Financial Assets and Liabilities | 6 Months Ended |
Apr. 30, 2023 | |
Financial Assets And Liabilities [Abstract] | |
Financial Assets and Liabilities | Financial Assets and LiabilitiesCash Equivalents and Short-term Investments As of April 30, 2023, the balances of our cash equivalents and short-term investments were as follows: Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 73,611 $ — $ — $ — $ 73,611 Total: $ 73,611 $ — $ — $ — $ 73,611 Short-term investments: U.S. government agency & T-bills $ 20,922 $ 5 $ (59) $ — $ 20,868 Municipal bonds 1,965 — — (40) 1,925 Corporate debt securities 99,517 96 (204) (669) 98,740 Asset-backed securities 29,502 14 (60) (143) 29,313 Total: $ 151,906 $ 115 $ (323) $ (852) $ 150,846 (1) See Note 8. Fair Value Measurements for further discussion on fair values. The contractual maturities of our available-for-sale debt securities as of April 30, 2023 were as follows: Amortized Cost Fair Value (in thousands) less than 1 year $ 68,597 $ 68,014 1-5 years 78,920 78,523 5-10 years 2,390 2,379 >10 years 1,999 1,930 Total $ 151,906 $ 150,846 As of October 31, 2022, the balances of our cash equivalents and short-term investments were as follows: Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 77,683 $ — $ — $ — $ 77,683 Total: $ 77,683 $ — $ — $ — $ 77,683 Short-term investments: U.S. government agency & T-bills $ 25,816 $ — $ (174) $ (39) $ 25,603 Municipal bonds 2,970 — (12) (80) 2,878 Corporate debt securities 95,899 7 (747) (1,135) 94,024 Asset-backed securities 25,826 — (149) (269) 25,408 Total: $ 150,511 $ 7 $ (1,082) $ (1,523) $ 147,913 (1) See Note 8. Fair Value Measurements for further discussion on fair values. Restricted cash. We include amounts generally described as restricted cash in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the condensed consolidated statements of cash flows. Restricted cash is primarily associated with office leases. The following table provided a reconciliation of cash, cash equivalents and restricted cash included in the condensed consolidated balance sheets: As of April 30, 2023 October 31, 2022 (in thousands) Cash and cash equivalents $ 1,544,592 $ 1,417,608 Restricted cash included in prepaid and other current assets 1,050 1,566 Restricted cash included in other long-term assets 739 690 Total cash, cash equivalents and restricted cash $ 1,546,381 $ 1,419,864 Non-marketable equity securities. Our portfolio of non-marketable equity securities consists of strategic investments in privately held companies. There was no impairment of non-marketable equity securities during the three months ended April 30, 2023 and there was an immaterial impairment of a non-marketable equity security during the six months ended April 30, 2023. There was no impairment of non-marketable equity securities during the three and six months ended April 30, 2022. Derivatives We recognize derivative instruments as either assets or liabilities in the condensed consolidated balance sheets at fair value and provide qualitative and quantitative disclosures about such derivatives. We operate internationally and are exposed to potentially adverse movements in foreign currency exchange rates. We enter into hedges in the form of foreign currency forward contracts to reduce our 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, the majority of which are short-term, ranges from approximately 1 month to 27 months at inception. We do not use foreign currency forward contracts for speculative or trading purposes. We enter into foreign exchange forward contracts with high credit quality financial institutions that are rated "A" or above and to date have not experienced nonperformance by counterparties. In addition, we mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty and anticipate 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 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. The cash flow impact upon settlement of the derivative contracts is included in net cash provided by operating activities in the condensed consolidated statements of cash flows. Cash Flow Hedging Activities Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 27 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to our 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 related gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (loss) (OCI) in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. We expect a majority of the hedge balance in OCI to be reclassified to the statements of income within the next 12 months. We did not record any gains or losses related to discontinuation of cash flow hedges during the six months ended April 30, 2023 and 2022. Non-designated Hedging Activities Our 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 our balance sheet exposure is approximately one month. We also have 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 our hedging program is to minimize the impact of currency fluctuations on the net income over the fiscal year. The effects of the non-designated derivative instruments on the condensed consolidated statements of income were summarized as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Gains (losses) recorded in other income (expense), net $ (3,484) $ (5,707) $ 4,737 $ (5,261) The notional amounts in the table below for derivative instruments provided one measure of the transaction volume outstanding: As of April 30, 2023 October 31, 2022 (in thousands) Total gross notional amounts $ 1,167,333 $ 1,386,140 Net fair value $ 2,249 $ (50,080) Our exposure to market gains or losses 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 table represented the condensed consolidated balance sheets location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: Fair values of Fair values of (in thousands) Balance at April 30, 2023 Other current assets $ 13,007 $ 128 Accrued liabilities $ 10,698 $ 188 Balance at October 31, 2022 Other current assets $ 2,315 $ 223 Accrued liabilities $ 52,171 $ 447 The following table represented the location of the amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax in the condensed consolidated statements of income: Location of Amount of Location of Amount of (in thousands) Three months ended Foreign exchange contracts Revenue $ 1,149 Revenue $ (5,537) Foreign exchange contracts Operating expenses (5,679) Operating expenses (3,737) Total $ (4,530) $ (9,274) Three months ended Foreign exchange contracts Revenue $ (7,008) Revenue $ 229 Foreign exchange contracts Operating expenses (14,124) Operating expenses (891) Total $ (21,132) $ (662) Six months ended Foreign exchange contracts Revenue $ 6,416 Revenue $ (9,504) Foreign exchange contracts Operating expenses 31,166 Operating expenses (8,127) Total $ 37,582 $ (17,631) Six months ended Foreign exchange contracts Revenue $ (7,825) Revenue $ (342) Foreign exchange contracts Operating expenses (14,892) Operating expenses (1,165) Total $ (22,717) $ (1,507) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes guidelines and enhances disclosure requirements for fair value measurements. The accounting guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance also establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement: Level 1 —Observable inputs that reflect quoted prices (unadjusted) for identical instruments in active markets; Level 2 —Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 —Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. On a recurring basis, we measure the fair value of certain of our assets and liabilities, which include cash equivalents, short-term investments, non-qualified deferred compensation plan assets, and foreign currency derivative contracts. Our 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. Our 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. Our 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. Our borrowings under the 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 us for debt with similar terms and maturities. See Note 10. Credit and Term Loan Facilities of the Notes to Condensed Consolidated Financial Statements for more information on these borrowings. Assets/Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis were summarized below as of April 30, 2023: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 73,611 73,611 $ — $ — Short-term investments: U.S. government agency & T-bills 20,868 — 20,868 — Municipal bonds 1,925 — 1,925 — Corporate debt securities 98,740 — 98,740 — Asset-backed securities 29,313 — 29,313 — Prepaid and other current assets: Foreign currency derivative contracts 13,135 — 13,135 — Other long-term assets: Deferred compensation plan assets 310,872 310,872 — — Total assets $ 548,464 $ 384,483 $ 163,981 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 10,886 $ — $ 10,886 $ — Other long-term liabilities: Deferred compensation plan liabilities 310,872 310,872 — — Total liabilities $ 321,758 $ 310,872 $ 10,886 $ — Assets and liabilities measured at fair value on a recurring basis were summarized below as of October 31, 2022: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 77,683 $ 77,683 $ — $ — Short-term investments: U.S. government agency & T-bills 25,603 — 25,603 — Municipal bonds 2,878 — 2,878 — Corporate debt securities 94,024 — 94,024 — Asset-backed securities 25,408 — 25,408 — Prepaid and other current assets: Foreign currency derivative contracts 2,538 — 2,538 — Other long-term assets: Deferred compensation plan assets 279,096 279,096 — — Total assets $ 507,230 $ 356,779 $ 150,451 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 52,618 $ — $ 52,618 $ — Other long-term liabilities: Deferred compensation plan liabilities 279,096 279,096 — — Total liabilities $ 331,714 $ 279,096 $ 52,618 $ — Assets/Liabilities Measured at Fair Value on a Non-Recurring Basis Non-Marketable Equity Securities Non-marketable equity securities are classified within Level 3 as they are valued using a combination of observable transaction price and unobservable inputs or data in an inactive market due to the absence of market price and inherent lack of liquidity. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Apr. 30, 2023 | |
Payables and Accruals [Abstract] | |
Restructuring Charges | Restructuring Charges In the first quarter of fiscal 2023, we initiated a restructuring plan for involuntary employee terminations as part of a business reorganization (the 2023 Plan). Total charges under the 2023 Plan are expected to be in the range of $50.0 million and $70.0 million, and consist primarily of severance costs and facility exit costs. The 2023 Plan is anticipated to be completed in the third quarter of fiscal 2023. During the three and six months ended April 30, 2023, we recorded restructuring charges of $4.1 million and $45.0 million, respectively, and made payments of $36.6 million and $36.8 million, respectively, under the 2023 Plan. As of April 30, 2023, the outstanding restructuring related liabilities were $8.2 million and recorded in accounts payable and accrued liabilities in the condensed consolidated balance sheets. |
Credit and Term Loan Facilities
Credit and Term Loan Facilities | 6 Months Ended |
Apr. 30, 2023 | |
Debt Disclosure [Abstract] | |
Credit and Term Loan Facilities | Credit and Term Loan Facilities On December 14, 2022, we entered into a Fifth Extension and Amendment Agreement (the Fifth Amendment), which amended and restated our previous credit agreement, dated as of January 22, 2021 (as amended and restated, the Credit Agreement). The Fifth Amendment increased the existing senior unsecured revolving credit facility (the Revolver) from $650.0 million to $850.0 million and extended the maturity date from January 22, 2024 to December 14, 2027, which could be further extended at our option. The Credit Agreement also provides an uncommitted incremental revolving loan facility of up to $150.0 million in the aggregate principal amount. The Credit Agreement contains a financial covenant requiring us to maintain a maximum consolidated leverage ratio, as well as other non-financial covenants. As of April 30, 2023, we were in compliance with the financial covenant. Borrowings bear interest at the adjusted term Secured Overnight Financing Rate (SOFR) plus an applicable margin between 0.785% and 0.975% based upon our consolidated leverage ratio. In addition, facility fees are payable on the Revolver at rates between 0.09% and 0.15% per year based on our leverage ratio on the daily amount of the revolving commitment. There was no outstanding balance under the Revolver as of April 30, 2023 and October 31, 2022. In July 2018, we entered into a 12-year 220.0 million Renminbi (approximately $33.0 million) credit agreement with a lender in China to support our facilities expansion. Borrowings bear interest at a floating rate based on the 5-year Loan Prime Rate plus 0.74%. As of April 30, 2023, we had $20.2 million outstanding balance under the agreement. |
Leases
Leases | 6 Months Ended |
Apr. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases We have operating lease arrangements for office space, data center, equipment and other corporate assets. These leases have various expiration dates through December 31, 2042, some of which include options to extend the leases for up to 10 years. Because we are not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term and associated potential option payments are excluded from lease payments. The components of our lease expense during the period presented were as follows: Three Months Ended April 30, Six Months Ended April 30, 2023 2022 2023 2022 (in thousands) Operating lease expense (1) $ 24,480 $ 22,159 $ 48,828 $ 44,191 Variable lease expense (2) 4,929 2,870 9,254 4,993 Total lease expense $ 29,409 $ 25,029 $ 58,082 $ 49,184 (1) Operating lease expense includes immaterial amounts of short-term leases, net of sublease income. (2) Variable lease expense includes payments to lessors that are not fixed or determinable at lease commencement date. These payments primarily consist of maintenance, property taxes, insurance and variable indexed based payments. Supplemental cash flow information during the period presented was as follows: Six Months Ended April 30, 2023 2022 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 43,920 $ 41,871 ROU assets obtained in exchange for operating lease liabilities $ 58,067 $ 138,612 Lease term and discount rate information related to our operating leases as of the end of the period presented were as follows: As of April 30, 2023 October 31, 2022 Weighted-average remaining lease term (in years) 8.54 9.16 Weighted-average discount rate 2.35 % 2.19 % The following table represented the maturities of our future lease payments due under operating leases as of April 30, 2023: Lease Payments Fiscal year (in thousands) Remainder of fiscal 2023 $ 36,213 2024 107,923 2025 97,195 2026 86,361 2027 84,725 2028 and thereafter 334,335 Total future minimum lease payments 746,752 Less: Imputed interest 77,029 Total lease liabilities $ 669,723 In addition, certain facilities owned by us were leased to third parties under non-cancellable operating lease agreements. These leases have annual escalating payments and have expiration dates through March 31, 2031 in accordance with the terms and conditions of the existing agreement. The lease receipts from owned facilities, including sublease income from other facilities leased by us, due to us as of April 30, 2023 were as follows: Lease Receipts Fiscal year (in thousands) Remainder of fiscal 2023 $ 8,329 2024 24,732 2025 25,360 2026 26,214 2027 27,333 2028 and thereafter 84,030 Total $ 195,998 |
Redeemable Non-controlling Inte
Redeemable Non-controlling Interest | 6 Months Ended |
Apr. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-controlling Interest | Redeemable Non-controlling Interest During the second quarter of fiscal 2022, we acquired 75% equity interest in OpenLight Photonics, Inc. (OpenLight) for cash consideration of $90.0 million. The remaining 25% equity interest in OpenLight is held by Juniper Networks, Inc. (the Minority Investor) from their contribution of IP and certain tangible assets. The agreement with the Minority Investor contains redemption features whereby the interest held by the Minority Investor is redeemable either (1) at the option of the Minority Investor on or after the third anniversary of the acquisition or sooner in certain circumstances or (2) at our option beginning on the third anniversary of the acquisition. This option is exercisable at the greater of fair value at the time of redemption or $30.0 million and was valued at $10.1 million, resulting in a total consideration of $100.1 million. During the second quarter of fiscal 2023, our ownership interest in OpenLight was reduced to 73% as a result of a recognition of non-controlling interest upon issuance of OpenLight stock. During the six months ended April 30, 2023, OpenLight incurred a net loss of $21.0 million, of which $5.2 million was attributable to redeemable non-controlling interest. Other adjustments to redeemable non-controlling interest were not material during this period. As of April 30, 2023, the carrying value of the redeemable non-controlling interest was recorded at its estimated fair value of $35.9 million in the condensed consolidated balance sheets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Apr. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows: As of April 30, 2023 October 31, 2022 (in thousands) Cumulative currency translation adjustments $ (124,663) $ (156,192) Unrealized gains (losses) on derivative instruments, net of taxes (20,273) (75,486) Unrealized gains (losses) on available-for-sale securities, net of taxes (1,061) (2,599) Total $ (145,997) $ (234,277) 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 2023 2022 2023 2022 (in thousands) Reclassifications: Gains (losses) on cash flow hedges, net of taxes Revenues $ (5,537) $ 229 $ (9,504) $ (342) Operating expenses (3,737) (891) (8,127) (1,165) Total $ (9,274) $ (662) $ (17,631) $ (1,507) |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Apr. 30, 2023 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program In September 2022, our Board of Directors approved a replenishment of our stock repurchase program (the Program) with authorization to purchase up to $1.5 billion of our common stock. In February 2023, we entered into an accelerated stock repurchase agreement (the February 2023 ASR) to repurchase an aggregate of $300.0 million of our common stock. Pursuant to the February 2023 ASR, we made a prepayment of $300.0 million to receive initial deliveries of shares valued at $255.0 million. The remaining balance of $45.0 million was settled in May 2023. Total shares purchased under the February 2023 ASR were approximately 0.8 million shares, at an average purchase price of $364.1 per share. As of April 30, 2023, $794.3 million remained available for future repurchases under the Program. Stock repurchase activities as well as the reissuance of treasury stock for employee stock-based compensation purposes were as follows: Three Months Ended Six Months Ended 2023 (1) (2) 2022 (3) 2023 (1) 2022 (in thousands) Total shares repurchased 825 984 1,631 1,685 Total cost of the repurchased shares $ 300,000 $ 290,000 $ 560,724 $ 535,000 Reissuance of treasury stock 696 683 1,507 1,578 (1) Excluded the 105,792 shares and $45.0 million equity forward contract from the February 2023 ASR settled in May 2023. (2) Included the 107,020 shares and $45.0 million equity forward contract from the December 2022 ASR settled in February 2023. (3) Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Apr. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The compensation cost recognized in the condensed consolidated statements of income for our stock compensation arrangements was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Cost of products $ 16,895 $ 13,078 $ 32,924 $ 24,285 Cost of maintenance and service 7,531 5,893 14,686 10,476 Research and development expense 75,355 58,109 144,586 107,649 Sales and marketing expense 26,937 19,291 51,844 37,092 General and administrative expense 16,540 13,690 33,445 26,330 Stock-based compensation expense before taxes 143,258 110,061 277,485 205,832 Income tax benefit (23,193) (17,852) (44,925) (33,386) Stock-based compensation expense after taxes $ 120,065 $ 92,209 $ 232,560 $ 172,446 During the three and six months ended April 30, 2023, we recognized stock-based compensation expense relating to restricted stock units (RSUs), granted to senior executives with certain market, performance and service conditions (market-based RSUs). The grant date fair value of the market-based RSUs and the assumptions used in the Monte Carlo simulation model to determine the grant date fair value during the periods were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Expected life (in years) 2.70 years 1.69 years 0.90 years - 2.70 years 1.69 years Risk-free interest rate 4.36 % 1.33 % 4.36% - 4.63% 1.33 % Volatility 35.84 % 33.01 % 35.84% - 42.86% 33.01 % Grant date fair value $ 357.29 $ 280.82 $357.29 - $408.55 $ 280.82 As of April 30, 2023, we had $1.2 billion of total unrecognized stock-based compensation expense relating to options, RSUs and restricted stock awards, which is expected to be recognized over a weighted-average period of 2.5 years. As of April 30, 2023, we had $66.5 million of unrecognized stock-based compensation expense relating to our Employee Stock Purchase Plan, which is expected to be recognized over a period of approximately 2.0 years. The intrinsic values of equity awards exercised during the periods were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Intrinsic value of awards exercised $ 63,447 $ 46,464 $ 118,223 $ 159,389 |
Net Income per Share
Net Income per Share | 6 Months Ended |
Apr. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income Per ShareWe compute 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 RSUs and awards during the period using the treasury stock method. The table below reconciled 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 2023 2022 2023 2022 (in thousands, except per share amounts) Numerator: Net income attributed to Synopsys $ 272,910 $ 294,781 $ 544,446 $ 608,468 Denominator: Weighted average common shares for basic net income per share 152,187 153,090 152,294 153,154 Dilutive effect of common share equivalents 2,543 3,077 2,750 3,661 Weighted average common shares for diluted net income per share 154,730 156,167 155,044 156,815 Net income per share attributed to Synopsys: Basic $ 1.79 $ 1.93 $ 3.57 $ 3.97 Diluted $ 1.76 $ 1.89 $ 3.51 $ 3.88 Anti-dilutive employee stock-based awards excluded 480 1,259 402 986 |
Segment Disclosure
Segment Disclosure | 6 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Disclosure | Segment Disclosure Segment reporting is based upon the “management approach,” i.e., how management organizes our operating segments for which separate financial information is (1) available and (2) evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance. Our CODM is our CEO. As described in Note 2. Summary of Significant Accounting Policies and Basis of Presentation of the Notes to Condensed Consolidated Financial Statements, effective in the first quarter of fiscal 2023, we realigned our organizational structure to evaluate the results of our Design IP business separately. Our CODM now regularly reviews disaggregated segment information, assesses performance against our key growth strategies and allocates resources based on this new organizational structure. As a result, effective in the first quarter of fiscal 2023, we changed our reportable segments from two reportable segments to the following three reportable segments: (1) Design Automation, which includes EDA tools, system integration solutions and other associated revenue categories, (2) Design IP, which includes IP products, and (3) Software Integrity, which includes a comprehensive solution for building integrity—security, quality and compliance testing—into the customers' software development lifecycle and supply chain. As such, prior period reportable segment results and related disclosures have been reclassified to reflect our current reportable segments. The financial information provided to and used by the CODM to assist in making operational decisions, allocating resources, and assessing performance includes consolidated financial information as well as revenue, adjusted operating income, and adjusted operating margin information for the Design Automation, Design IP and Software Integrity segments, accompanied by disaggregated information relating to revenue by geographic region. Information by reportable segment was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Total Segments: Revenue $ 1,394,863 $ 1,279,229 $ 2,756,203 $ 2,549,484 Adjusted operating income 464,727 470,153 943,894 929,544 Adjusted operating margin 33 % 37 % 34 % 36 % Design Automation: Revenue $ 927,568 $ 817,853 $ 1,817,414 $ 1,621,714 Adjusted operating income 360,090 321,389 706,099 614,660 Adjusted operating margin 39 % 39 % 39 % 38 % Design IP: Revenue $ 335,176 $ 348,524 $ 678,827 $ 707,357 Adjusted operating income 86,321 135,739 203,946 289,860 Adjusted operating margin 26 % 39 % 30 % 41 % Software Integrity: Revenue $ 132,119 $ 112,852 $ 259,962 $ 220,413 Adjusted operating income 18,316 13,025 33,849 25,024 Adjusted operating margin 14 % 12 % 13 % 11 % Certain operating expenses are not allocated to the segments and are managed at a consolidated level. The unallocated expenses managed at a consolidated level, including amortization of intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan, restructuring charges, and certain other operating expenses, were presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Total segment adjusted operating income $ 464,727 $ 470,153 $ 943,894 $ 929,544 Reconciling items: Amortization of intangible assets (24,454) (21,367) (49,811) (43,727) Stock-based compensation expense (143,258) (110,061) (277,485) (205,832) Deferred compensation plan (2,832) 29,310 (23,029) 48,909 Restructuring charges (4,140) (311) (44,999) (12,057) Other (2,711) (4,023) (5,306) (6,100) Total operating income $ 287,332 $ 363,701 $ 543,264 $ 710,737 The CODM does not use total assets by segment to evaluate segment performance or allocate resources. As a result, total assets by segment are not disclosed. In allocating revenue to particular geographic areas, the CODM considers where individual “seats” or licenses to our products are located. Revenue is defined as revenue from external customers. Revenue related to operations in the United States and other geographic areas were: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Revenue: United States $ 661,413 $ 577,881 $ 1,333,195 $ 1,188,215 Europe 156,956 116,191 291,963 248,908 China 196,427 215,563 394,205 428,386 Korea 156,816 119,210 302,608 233,564 Other 223,251 250,384 434,232 450,411 Consolidated $ 1,394,863 $ 1,279,229 $ 2,756,203 $ 2,549,484 Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology. |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Apr. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net The following table presented the components of other income (expense), net: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Interest income $ 8,099 $ 1,283 $ 14,998 $ 2,141 Interest expense (312) (400) (576) (900) Gains (losses) on assets related to deferred compensation plan 2,832 (29,310) 23,029 (48,909) Foreign currency exchange gains (losses) (2,374) 4,852 326 3,828 Other, net (3,992) (338) (10,232) 134 Total $ 4,253 $ (23,913) $ 27,545 $ (43,706) |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate We estimate our annual effective tax rate at the end of each fiscal quarter. The effective tax rate takes into account our 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 presented the provision for income taxes and the effective tax rates: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Income before income taxes $ 291,585 $ 339,788 $ 570,809 $ 667,031 Provision for income taxes $ 21,637 $ 45,896 $ 32,234 $ 59,798 Effective tax rate 7.4 % 13.5 % 5.6 % 9.0 % Our effective tax rate for the six months ended April 30, 2023 is lower than the statutory federal corporate tax rate of 21% primarily due to U.S. federal research tax credits, foreign-derived intangible income deduction, excess tax benefits from stock-based compensation, and U.S. foreign tax credits, partially offset by state taxes, the effect of non-deductible stock-based compensation, and higher taxes on certain foreign earnings. On December 22, 2017, the Tax Cuts and Jobs Act (Tax Act) was enacted, which significantly changed prior U.S. tax law and includes numerous provisions that affect our business. Effective our fiscal 2023, the Tax Act requires that research and development expenditures are capitalized and amortized instead of being deducted when incurred. Domestic research is capitalized over five years and foreign research is capitalized over fifteen years. For fiscal 2023, this will result in a significant increase to our cash tax liabilities and will also decrease our effective tax rate due to increasing the foreign derived intangible income deduction. The impact to our cash tax liabilities will decrease over time as the research and development expenditures are amortized. Our effective tax rate decreased in the three months ended April 30, 2023 as compared to the same period in fiscal 2022, primarily due to higher foreign derived intangible income deduction, as a result of the Tax Act, and higher excess tax benefits from stock-based compensation. Our effective tax rate decreased for the six months ended April 30, 2023 as compared to the same period in fiscal 2022, primarily due to higher foreign derived intangible income deduction offset by lower excess tax benefits from stock-based compensation. The timing of the resolution of income tax examinations, and the amounts and timing of various tax payments that are part of the settlement process, are highly uncertain. Variations in such amounts and/or timing could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. We believe that in the coming 12 months, it is reasonably possible that either certain audits and ongoing tax litigation 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 $36 million. Non-U.S. Examinations Hungarian Tax Authority In 2017, the Hungarian Tax Authority (the HTA) assessed withholding taxes of approximately $25.0 million and interest and penalties of $11.0 million against our Hungary subsidiary (Synopsys Hungary). Synopsys Hungary contested the assessment with the Hungarian Administrative Court (Administrative Court). In 2019, as required under Hungarian law, Synopsys Hungary paid the assessment and recorded a tax expense due to an unrecognized tax benefit of $17.4 million, which is net of estimated U.S. foreign tax credits. The Administrative Court found against Synopsys Hungary, and we appealed to the Hungarian Supreme Court. During 2021, the Hungarian Supreme Court heard our appeal and remanded the case to the Administrative Court for further proceedings. The Administrative Court once again ruled against Synopsys Hungary, and we filed another appeal with the Hungarian Supreme Court. The Hungarian Supreme Court heard our appeal on January 27, 2022, vacated the lower court's decision and remanded the case back to the Administrative Court for further proceedings. Hearings with the Administrative Court were held on June 30, 2022, September 22, 2022 and April 25, 2023. The Administrative Court issued a written decision in favor of Synopsys Hungary on May 17, 2023. This decision has no impact on our financial statements for the six months ended April 30, 2023. The HTA can appeal the written decision to the Hungarian Supreme Court. Any appeal must be filed with the Hungarian Supreme Court on or before July 14, 2023. We are also under examination by the tax authorities in certain other jurisdictions. No material assessments have been proposed in these examinations. Legislative Developments On August 16, 2022, the Inflation Reduction Act of 2022 (the IR Act) was enacted in the United States. The IR Act includes a 15% minimum tax based primarily on global consolidated U.S. GAAP profits with a $1 billion minimum threshold. The tax takes effect in fiscal 2024, with the $1 billion threshold measured as an average over three years commencing in the current fiscal year. Computation of the tax includes adjustments which, among others, provide for an offset of income taxes paid or accrued in non-U.S. jurisdictions. The details of the computation will be subject to regulations to be issued by the U.S. Department of the Treasury. Synopsys will monitor regulatory developments and will continue to evaluate the impact, if any, of the minimum tax. The IR Act includes provisions intended to mitigate climate change by, among others, providing tax credit incentives for reductions in greenhouse gas emissions. The details of the implementation of these incentives are subject to regulations to be released by the U.S. Department of the Treasury. Synopsys is monitoring these developments and will continue to evaluate opportunities to utilize these incentives in the future. The IR Act imposes a 1% excise tax on the fair market value of stock repurchases made by covered corporations after December 31, 2022. The total taxable value of shares repurchased is reduced by the fair market value of any newly issued shares during the taxable year. We are assessing the potential impact of the stock repurchase excise tax. Based on our preliminary assessment, we do not expect a material impact on our overall capital allocation strategy or our consolidated financial statements. |
Contingencies
Contingencies | 6 Months Ended |
Apr. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings We are subject to routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The ultimate outcome of any litigation is often uncertain and unfavorable outcomes could have a negative impact on our results of operations and financial condition. We regularly review the status of each significant matter and assess our potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount is estimable, we accrue 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. We have determined that, except as set forth below, no disclosure of estimated loss is required for a claim against us 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. Legal Settlement There have been no changes to the disclosure related to Mentor Graphics Corporation (now part of Siemens AG) since our Annual Report. See Note 10. Contingencies of the Notes to Consolidated Financial Statements in our Annual Report for further information. Tax Matters We undergo 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 are 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, we would accrue a liability for the estimated expense. In addition to the foregoing, we are, 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, see Note 19. Income Taxes of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 6 Months Ended |
Apr. 30, 2023 | |
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 condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and could have a material impact on our operating results and financial position. |
Principles of Consolidation | Principles of Consolidation. The condensed consolidated financial statements include our accounts and the accounts of our wholly and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year End | Fiscal Year End. Our fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, we have a 53-week year. When a 53-week year occurs, we include the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2023 and 2022 are both 52-week years. Fiscal 2023 will end on October 28, 2023. Fiscal 2022 ended on October 29, 2022. For presentation purposes, the condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. |
Comparability | Comparability. Certain reclassifications have been made to the prior period's condensed consolidated financial statements to conform to the current year presentation. The reclassifications did not have a material impact on the prior period's condensed consolidated balance sheets, statements of income, statements of comprehensive income and statements of cash flows. |
Segment Reporting | Segment Reporting. Effective in the first quarter of fiscal 2023, we realigned our organizational structure to evaluate the results of our Design IP business separately. Our Chief Operating Decision Maker (CODM), our Chief |
Goodwill | Goodwill. As a result of the change to our reportable segments, we reassessed our reporting units for the evaluation of goodwill during the first quarter of fiscal 2023. Prior to this change, our reporting units were determined to be the same as reportable segments for the purpose of goodwill impairment assessment. Our reassessment determined that we now have three reporting units, which are the same as our reportable segments. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by us. The carrying amount of goodwill at each reporting unit is tested for impairment annually on the first day of the fourth fiscal quarter, or more frequently if facts and circumstances warrant a review. We perform either a qualitative or quantitative assessment for goodwill impairment test. When a quantitative goodwill impairment assessment is performed, we use an income approach based on discounted cash flow analysis, a market approach based on market multiples, or a combination of both. If the fair value of a reporting unit is less than its carrying value, a goodwill impairment loss is recorded for the difference. The change in reporting units was considered a triggering event, indicating a test for goodwill impairment was required before and after the change in reporting units. We performed those impairment tests, which did not result in the identification of an impairment loss as of January 31, 2023. If assumptions or estimates with respect to our future performance vary from what is expected, including but not limited to those assumptions relating to inflationary pressure on costs and geopolitical uncertainties, this may impact the impairment analysis and could reduce the underlying cash flows used to estimate fair values and result in a decline in fair value that may trigger future impairment charges. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03), which applies to all equity securities measured at fair value that are subject to contractual sale restrictions. This change prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. The standard will become effective for us beginning on November 1, 2024 and will be applied prospectively. Early adoption is permitted. Any future impact from the adoption of this guidance will depend on the facts and circumstances of future transactions. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table showed the percentage of revenue by product groups: Three Months Ended Six Months Ended 2023 2022 2023 2022 EDA 64.6 % 61.6 % 64.4 % 61.5 % Design IP 24.0 % 27.2 % 24.6 % 27.7 % Software Integrity 9.5 % 8.8 % 9.4 % 8.6 % Other 1.9 % 2.4 % 1.6 % 2.2 % Total 100.0 % 100.0 % 100.0 % 100.0 % |
Schedule of Contract Assets and Liabilities | Contract balances were as follows: As of April 30, 2023 October 31, 2022 (in thousands) Contract assets, net $ 249,195 $ 260,498 Unbilled receivables $ 44,265 $ 46,254 Deferred revenue $ 2,160,221 $ 2,065,294 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the six months ended April 30, 2023 were as follows: (in thousands) Balance at October 31, 2022 $ 3,842,234 Additions 23,029 Adjustments 3,054 Effect of foreign currency translation 19,932 Balance at April 30, 2023 $ 3,888,249 |
Summary of Intangible Assets | Intangible assets as of April 30, 2023 consisted of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,097,217 $ 848,890 $ 248,327 Customer relationships 431,303 345,857 85,446 Contract rights intangible 193,594 189,953 3,641 Trademarks and trade names 52,795 35,840 16,955 Capitalized software development costs 49,838 47,094 2,744 Total $ 1,824,747 $ 1,467,634 $ 357,113 Intangible assets as of October 31, 2022 consisted of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,083,703 $ 813,226 $ 270,477 Customer relationships 426,242 333,984 92,258 Contract rights intangible 190,666 188,262 2,404 Trademarks and trade names 52,795 34,054 18,741 Capitalized software development costs 48,591 46,025 2,566 Total $ 1,801,997 $ 1,415,551 $ 386,446 |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets consisted of the following: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Core/developed technology $ 17,481 $ 13,728 $ 35,750 $ 26,576 Customer relationships 5,689 6,312 11,513 14,497 Contract rights intangible 391 727 762 1,454 Trademarks and trade names 893 600 1,786 1,200 Capitalized software development costs (1) 510 681 1,069 1,433 Total $ 24,964 $ 22,048 $ 50,880 $ 45,160 (1) Amortization of capitalized software development costs is included in cost of products revenue in the condensed consolidated statements of income. |
Estimated Future Amortization of Intangible Assets | The following table presented the estimated future amortization of intangible assets as of April 30, 2023: Fiscal year (in thousands) Remainder of fiscal 2023 $ 50,787 2024 92,016 2025 74,135 2026 61,060 2027 40,858 2028 and thereafter 38,257 Total $ 357,113 |
Balance Sheets Components (Tabl
Balance Sheets Components (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Balance Sheets Components | As of April 30, 2023 October 31, 2022 (in thousands) Other long-term assets: Deferred compensation plan assets $ 310,872 $ 279,096 Capitalized commission, net 97,933 96,509 Other 78,073 88,090 Total $ 486,878 $ 463,695 Accounts payable and accrued liabilities: Payroll and related benefits $ 374,587 $ 559,886 Other accrued liabilities 242,832 211,937 Accounts payable 84,397 37,580 Total $ 701,816 $ 809,403 Other long-term liabilities: Deferred compensation plan liabilities $ 310,872 $ 279,096 Other 55,077 48,733 Total $ 365,949 $ 327,829 |
Financial Assets and Liabilit_2
Financial Assets and Liabilities (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Financial Assets And Liabilities [Abstract] | |
Summary of Cash Equivalents and Short-Term Investments | As of April 30, 2023, the balances of our cash equivalents and short-term investments were as follows: Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 73,611 $ — $ — $ — $ 73,611 Total: $ 73,611 $ — $ — $ — $ 73,611 Short-term investments: U.S. government agency & T-bills $ 20,922 $ 5 $ (59) $ — $ 20,868 Municipal bonds 1,965 — — (40) 1,925 Corporate debt securities 99,517 96 (204) (669) 98,740 Asset-backed securities 29,502 14 (60) (143) 29,313 Total: $ 151,906 $ 115 $ (323) $ (852) $ 150,846 (1) See Note 8. Fair Value Measurements for further discussion on fair values. The contractual maturities of our available-for-sale debt securities as of April 30, 2023 were as follows: Amortized Cost Fair Value (in thousands) less than 1 year $ 68,597 $ 68,014 1-5 years 78,920 78,523 5-10 years 2,390 2,379 >10 years 1,999 1,930 Total $ 151,906 $ 150,846 As of October 31, 2022, the balances of our cash equivalents and short-term investments were as follows: Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 77,683 $ — $ — $ — $ 77,683 Total: $ 77,683 $ — $ — $ — $ 77,683 Short-term investments: U.S. government agency & T-bills $ 25,816 $ — $ (174) $ (39) $ 25,603 Municipal bonds 2,970 — (12) (80) 2,878 Corporate debt securities 95,899 7 (747) (1,135) 94,024 Asset-backed securities 25,826 — (149) (269) 25,408 Total: $ 150,511 $ 7 $ (1,082) $ (1,523) $ 147,913 (1) See Note 8. Fair Value Measurements for further discussion on fair values. |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provided a reconciliation of cash, cash equivalents and restricted cash included in the condensed consolidated balance sheets: As of April 30, 2023 October 31, 2022 (in thousands) Cash and cash equivalents $ 1,544,592 $ 1,417,608 Restricted cash included in prepaid and other current assets 1,050 1,566 Restricted cash included in other long-term assets 739 690 Total cash, cash equivalents and restricted cash $ 1,546,381 $ 1,419,864 |
Effects on Changes in Fair Values of Non-Designated Forward Contracts | The effects of the non-designated derivative instruments on the condensed consolidated statements of income were summarized as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Gains (losses) recorded in other income (expense), net $ (3,484) $ (5,707) $ 4,737 $ (5,261) |
Notional Amounts of Derivative Instruments | The notional amounts in the table below for derivative instruments provided one measure of the transaction volume outstanding: As of April 30, 2023 October 31, 2022 (in thousands) Total gross notional amounts $ 1,167,333 $ 1,386,140 Net fair value $ 2,249 $ (50,080) |
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet | The following table represented the condensed consolidated balance sheets location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: Fair values of Fair values of (in thousands) Balance at April 30, 2023 Other current assets $ 13,007 $ 128 Accrued liabilities $ 10,698 $ 188 Balance at October 31, 2022 Other current assets $ 2,315 $ 223 Accrued liabilities $ 52,171 $ 447 |
Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax | The following table represented the location of the amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax in the condensed consolidated statements of income: Location of Amount of Location of Amount of (in thousands) Three months ended Foreign exchange contracts Revenue $ 1,149 Revenue $ (5,537) Foreign exchange contracts Operating expenses (5,679) Operating expenses (3,737) Total $ (4,530) $ (9,274) Three months ended Foreign exchange contracts Revenue $ (7,008) Revenue $ 229 Foreign exchange contracts Operating expenses (14,124) Operating expenses (891) Total $ (21,132) $ (662) Six months ended Foreign exchange contracts Revenue $ 6,416 Revenue $ (9,504) Foreign exchange contracts Operating expenses 31,166 Operating expenses (8,127) Total $ 37,582 $ (17,631) Six months ended Foreign exchange contracts Revenue $ (7,825) Revenue $ (342) Foreign exchange contracts Operating expenses (14,892) Operating expenses (1,165) Total $ (22,717) $ (1,507) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
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 were summarized below as of April 30, 2023: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 73,611 73,611 $ — $ — Short-term investments: U.S. government agency & T-bills 20,868 — 20,868 — Municipal bonds 1,925 — 1,925 — Corporate debt securities 98,740 — 98,740 — Asset-backed securities 29,313 — 29,313 — Prepaid and other current assets: Foreign currency derivative contracts 13,135 — 13,135 — Other long-term assets: Deferred compensation plan assets 310,872 310,872 — — Total assets $ 548,464 $ 384,483 $ 163,981 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 10,886 $ — $ 10,886 $ — Other long-term liabilities: Deferred compensation plan liabilities 310,872 310,872 — — Total liabilities $ 321,758 $ 310,872 $ 10,886 $ — Assets and liabilities measured at fair value on a recurring basis were summarized below as of October 31, 2022: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 77,683 $ 77,683 $ — $ — Short-term investments: U.S. government agency & T-bills 25,603 — 25,603 — Municipal bonds 2,878 — 2,878 — Corporate debt securities 94,024 — 94,024 — Asset-backed securities 25,408 — 25,408 — Prepaid and other current assets: Foreign currency derivative contracts 2,538 — 2,538 — Other long-term assets: Deferred compensation plan assets 279,096 279,096 — — Total assets $ 507,230 $ 356,779 $ 150,451 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 52,618 $ — $ 52,618 $ — Other long-term liabilities: Deferred compensation plan liabilities 279,096 279,096 — — Total liabilities $ 331,714 $ 279,096 $ 52,618 $ — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost | The components of our lease expense during the period presented were as follows: Three Months Ended April 30, Six Months Ended April 30, 2023 2022 2023 2022 (in thousands) Operating lease expense (1) $ 24,480 $ 22,159 $ 48,828 $ 44,191 Variable lease expense (2) 4,929 2,870 9,254 4,993 Total lease expense $ 29,409 $ 25,029 $ 58,082 $ 49,184 (1) Operating lease expense includes immaterial amounts of short-term leases, net of sublease income. (2) Variable lease expense includes payments to lessors that are not fixed or determinable at lease commencement date. These payments primarily consist of maintenance, property taxes, insurance and variable indexed based payments. Supplemental cash flow information during the period presented was as follows: Six Months Ended April 30, 2023 2022 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 43,920 $ 41,871 ROU assets obtained in exchange for operating lease liabilities $ 58,067 $ 138,612 |
Lessee, Lease Term and Discount Rate | Lease term and discount rate information related to our operating leases as of the end of the period presented were as follows: As of April 30, 2023 October 31, 2022 Weighted-average remaining lease term (in years) 8.54 9.16 Weighted-average discount rate 2.35 % 2.19 % |
Lessee, Operating Lease, Liability, Maturity | The following table represented the maturities of our future lease payments due under operating leases as of April 30, 2023: Lease Payments Fiscal year (in thousands) Remainder of fiscal 2023 $ 36,213 2024 107,923 2025 97,195 2026 86,361 2027 84,725 2028 and thereafter 334,335 Total future minimum lease payments 746,752 Less: Imputed interest 77,029 Total lease liabilities $ 669,723 |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | The lease receipts from owned facilities, including sublease income from other facilities leased by us, due to us as of April 30, 2023 were as follows: Lease Receipts Fiscal year (in thousands) Remainder of fiscal 2023 $ 8,329 2024 24,732 2025 25,360 2026 26,214 2027 27,333 2028 and thereafter 84,030 Total $ 195,998 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows: As of April 30, 2023 October 31, 2022 (in thousands) Cumulative currency translation adjustments $ (124,663) $ (156,192) Unrealized gains (losses) on derivative instruments, net of taxes (20,273) (75,486) Unrealized gains (losses) on available-for-sale securities, net of taxes (1,061) (2,599) Total $ (145,997) $ (234,277) |
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 2023 2022 2023 2022 (in thousands) Reclassifications: Gains (losses) on cash flow hedges, net of taxes Revenues $ (5,537) $ 229 $ (9,504) $ (342) Operating expenses (3,737) (891) (8,127) (1,165) Total $ (9,274) $ (662) $ (17,631) $ (1,507) |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase And Reissuance Activities | Stock repurchase activities as well as the reissuance of treasury stock for employee stock-based compensation purposes were as follows: Three Months Ended Six Months Ended 2023 (1) (2) 2022 (3) 2023 (1) 2022 (in thousands) Total shares repurchased 825 984 1,631 1,685 Total cost of the repurchased shares $ 300,000 $ 290,000 $ 560,724 $ 535,000 Reissuance of treasury stock 696 683 1,507 1,578 (1) Excluded the 105,792 shares and $45.0 million equity forward contract from the February 2023 ASR settled in May 2023. (2) Included the 107,020 shares and $45.0 million equity forward contract from the December 2022 ASR settled in February 2023. (3) Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation Arrangements | The compensation cost recognized in the condensed consolidated statements of income for our stock compensation arrangements was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Cost of products $ 16,895 $ 13,078 $ 32,924 $ 24,285 Cost of maintenance and service 7,531 5,893 14,686 10,476 Research and development expense 75,355 58,109 144,586 107,649 Sales and marketing expense 26,937 19,291 51,844 37,092 General and administrative expense 16,540 13,690 33,445 26,330 Stock-based compensation expense before taxes 143,258 110,061 277,485 205,832 Income tax benefit (23,193) (17,852) (44,925) (33,386) Stock-based compensation expense after taxes $ 120,065 $ 92,209 $ 232,560 $ 172,446 |
Schedule of Share-Based Payment Award, Restricted Stock Units, Valuation Assumptions | The grant date fair value of the market-based RSUs and the assumptions used in the Monte Carlo simulation model to determine the grant date fair value during the periods were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Expected life (in years) 2.70 years 1.69 years 0.90 years - 2.70 years 1.69 years Risk-free interest rate 4.36 % 1.33 % 4.36% - 4.63% 1.33 % Volatility 35.84 % 33.01 % 35.84% - 42.86% 33.01 % Grant date fair value $ 357.29 $ 280.82 $357.29 - $408.55 $ 280.82 |
Schedule of Intrinsic Value of Equity Awards Exercised | The intrinsic values of equity awards exercised during the periods were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Intrinsic value of awards exercised $ 63,447 $ 46,464 $ 118,223 $ 159,389 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted-Average Common Shares Used to Calculate Net Income Per Share | The table below reconciled 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 2023 2022 2023 2022 (in thousands, except per share amounts) Numerator: Net income attributed to Synopsys $ 272,910 $ 294,781 $ 544,446 $ 608,468 Denominator: Weighted average common shares for basic net income per share 152,187 153,090 152,294 153,154 Dilutive effect of common share equivalents 2,543 3,077 2,750 3,661 Weighted average common shares for diluted net income per share 154,730 156,167 155,044 156,815 Net income per share attributed to Synopsys: Basic $ 1.79 $ 1.93 $ 3.57 $ 3.97 Diluted $ 1.76 $ 1.89 $ 3.51 $ 3.88 Anti-dilutive employee stock-based awards excluded 480 1,259 402 986 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information by reportable segment was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Total Segments: Revenue $ 1,394,863 $ 1,279,229 $ 2,756,203 $ 2,549,484 Adjusted operating income 464,727 470,153 943,894 929,544 Adjusted operating margin 33 % 37 % 34 % 36 % Design Automation: Revenue $ 927,568 $ 817,853 $ 1,817,414 $ 1,621,714 Adjusted operating income 360,090 321,389 706,099 614,660 Adjusted operating margin 39 % 39 % 39 % 38 % Design IP: Revenue $ 335,176 $ 348,524 $ 678,827 $ 707,357 Adjusted operating income 86,321 135,739 203,946 289,860 Adjusted operating margin 26 % 39 % 30 % 41 % Software Integrity: Revenue $ 132,119 $ 112,852 $ 259,962 $ 220,413 Adjusted operating income 18,316 13,025 33,849 25,024 Adjusted operating margin 14 % 12 % 13 % 11 % |
Reconciliation of Operating Income From Segment Consolidation | The unallocated expenses managed at a consolidated level, including amortization of intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan, restructuring charges, and certain other operating expenses, were presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Total segment adjusted operating income $ 464,727 $ 470,153 $ 943,894 $ 929,544 Reconciling items: Amortization of intangible assets (24,454) (21,367) (49,811) (43,727) Stock-based compensation expense (143,258) (110,061) (277,485) (205,832) Deferred compensation plan (2,832) 29,310 (23,029) 48,909 Restructuring charges (4,140) (311) (44,999) (12,057) Other (2,711) (4,023) (5,306) (6,100) Total operating income $ 287,332 $ 363,701 $ 543,264 $ 710,737 |
Revenues Related to Operations by Geographic Areas | Revenue related to operations in the United States and other geographic areas were: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Revenue: United States $ 661,413 $ 577,881 $ 1,333,195 $ 1,188,215 Europe 156,956 116,191 291,963 248,908 China 196,427 215,563 394,205 428,386 Korea 156,816 119,210 302,608 233,564 Other 223,251 250,384 434,232 450,411 Consolidated $ 1,394,863 $ 1,279,229 $ 2,756,203 $ 2,549,484 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Components of Other Income (Expense), Net | The following table presented the components of other income (expense), net: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Interest income $ 8,099 $ 1,283 $ 14,998 $ 2,141 Interest expense (312) (400) (576) (900) Gains (losses) on assets related to deferred compensation plan 2,832 (29,310) 23,029 (48,909) Foreign currency exchange gains (losses) (2,374) 4,852 326 3,828 Other, net (3,992) (338) (10,232) 134 Total $ 4,253 $ (23,913) $ 27,545 $ (43,706) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Incomes Taxes and Effective Tax Rates | The following table presented the provision for income taxes and the effective tax rates: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Income before income taxes $ 291,585 $ 339,788 $ 570,809 $ 667,031 Provision for income taxes $ 21,637 $ 45,896 $ 32,234 $ 59,798 Effective tax rate 7.4 % 13.5 % 5.6 % 9.0 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 segment unit | Oct. 31, 2022 segment | |
Accounting Policies [Abstract] | ||
Number of reportable operating segment | segment | 3 | 2 |
Number of Reporting Units | unit | 3 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - Product Concentration Risk - Revenue | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 100% | 100% | 100% | 100% |
EDA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 64.60% | 61.60% | 64.40% | 61.50% |
Design IP | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 24% | 27.20% | 24.60% | 27.70% |
Software Integrity | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 9.50% | 8.80% | 9.40% | 8.60% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 1.90% | 2.40% | 1.60% | 2.20% |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net | $ 249,195 | $ 260,498 |
Unbilled receivables | 44,265 | 46,254 |
Deferred revenue | $ 2,160,221 | $ 2,065,294 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Contract with customer, liability, revenue recognized | $ 425,200 | $ 1,200,000 | ||
Revenue, remaining performance obligation, amount | 7,300,000 | 7,300,000 | ||
Revenue, remaining performance obligation, non-cancellable, amount | $ 1,400,000 | $ 1,400,000 | ||
Revenue, remaining performance obligation, excluding non-cancellable, recognized over twelve month period, percent | 42% | 42% | ||
Capitalized contract cost, net | $ 97,900 | $ 97,900 | ||
Amortization of capitalized costs to obtain revenue contracts | 20,700 | $ 17,800 | 39,588 | $ 34,574 |
Sales Based Royalties | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Contract with customer, liability, revenue recognized | $ 26,900 | $ 37,700 | $ 51,600 | $ 69,700 |
Business Combination - Addition
Business Combination - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 3,888,249,000 | $ 3,888,249,000 | $ 3,842,234,000 | ||
Transaction costs | 2,700,000 | $ 4,000,000 | 5,300,000 | $ 6,100,000 | |
Series of Individually Immaterial Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | 38,600,000 | ||||
Intangible assets | 20,300,000 | 20,300,000 | |||
Goodwill | 23,000,000 | 23,000,000 | |||
Goodwill, expected tax deductible amount | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) $ in Millions | 6 Months Ended |
Apr. 30, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, impairment loss | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes of Goodwill (Details) $ in Thousands | 6 Months Ended |
Apr. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 3,842,234 |
Additions | 23,029 |
Adjustments | 3,054 |
Effect of foreign currency translation | 19,932 |
Ending Balance | $ 3,888,249 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,824,747 | $ 1,801,997 |
Accumulated Amortization | 1,467,634 | 1,415,551 |
Net Amount | 357,113 | 386,446 |
Core/developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,097,217 | 1,083,703 |
Accumulated Amortization | 848,890 | 813,226 |
Net Amount | 248,327 | 270,477 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 431,303 | 426,242 |
Accumulated Amortization | 345,857 | 333,984 |
Net Amount | 85,446 | 92,258 |
Contract rights intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 193,594 | 190,666 |
Accumulated Amortization | 189,953 | 188,262 |
Net Amount | 3,641 | 2,404 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 52,795 | 52,795 |
Accumulated Amortization | 35,840 | 34,054 |
Net Amount | 16,955 | 18,741 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 49,838 | 48,591 |
Accumulated Amortization | 47,094 | 46,025 |
Net Amount | $ 2,744 | $ 2,566 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | $ 24,964 | $ 22,048 | $ 50,880 | $ 45,160 | |
Core/developed technology | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | 17,481 | 13,728 | 35,750 | 26,576 | |
Customer relationships | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | 5,689 | 6,312 | 11,513 | 14,497 | |
Contract rights intangible | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | 391 | 727 | 762 | 1,454 | |
Trademarks and trade names | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | 893 | 600 | 1,786 | 1,200 | |
Capitalized software development costs | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | [1] | $ 510 | $ 681 | $ 1,069 | $ 1,433 |
[1]Amortization of capitalized software development costs is included in cost of products revenue in the condensed consolidated statements of income. |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) $ in Thousands | Apr. 30, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2023 | $ 50,787 |
2024 | 92,016 |
2025 | 74,135 |
2026 | 61,060 |
2027 | 40,858 |
2028 and thereafter | 38,257 |
Total | $ 357,113 |
Balance Sheets Components - Com
Balance Sheets Components - Components of Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Other long-term assets: | ||
Deferred compensation plan assets | $ 310,872 | $ 279,096 |
Capitalized commission, net | 97,933 | 96,509 |
Other | 78,073 | 88,090 |
Total | 486,878 | 463,695 |
Accounts payable and accrued liabilities: | ||
Payroll and related benefits | 374,587 | 559,886 |
Other accrued liabilities | 242,832 | 211,937 |
Accounts payable | 84,397 | 37,580 |
Total | 701,816 | 809,403 |
Other long-term liabilities: | ||
Deferred compensation plan liabilities | 310,872 | 279,096 |
Other | 55,077 | 48,733 |
Total | $ 365,949 | $ 327,829 |
Financial Assets and Liabilit_3
Financial Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Financial Assets and Liabilities [Line Items] | ||||
Impairment of non-marketable equity securities | $ 0 | $ 0 | $ 0 | $ 0 |
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 | 27 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 | 27 months | |||
Foreign Exchange Contracts | Non-Designated Hedging Instrument | Maximum | ||||
Financial Assets and Liabilities [Line Items] | ||||
Non-designated foreign exchange forward contract remaining maturity | 1 year |
Financial Assets and Liabilit_4
Financial Assets and Liabilities - Schedule of Maturity for Short-Term Available for Sale Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 | ||
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||||
less than 1 year | $ 68,597 | |||
1-5 years | 78,920 | |||
5-10 years | 2,390 | |||
>10 years | 1,999 | |||
Total | 151,906 | $ 150,511 | ||
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||||
less than 1 year | 68,014 | |||
1-5 years | 78,523 | |||
5-10 years | 2,379 | |||
>10 years | 1,930 | |||
Total | $ 150,846 | [1] | $ 147,913 | [2] |
[1]See Note 8. Fair Value Measurements for further discussion on fair values.[2]See Note 8. Fair Value Measurements for further discussion on fair values. |
Financial Assets and Liabilit_5
Financial Assets and Liabilities - Short-term investments (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 | ||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | $ 151,906 | $ 150,511 | ||
Gross Unrealized Gains | 115 | 7 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | (323) | (1,082) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | (852) | (1,523) | ||
Estimated fair value | 150,846 | [1] | 147,913 | [2] |
Cash equivalents | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 73,611 | 77,683 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | 0 | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 | ||
Estimated fair value | 73,611 | [1] | 77,683 | [2] |
Cash equivalents | Money market funds | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 73,611 | 77,683 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | 0 | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 | ||
Estimated fair value | 73,611 | [1] | 77,683 | [2] |
Short-term investments | U.S. government agency & T-bills | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 20,922 | 25,816 | ||
Gross Unrealized Gains | 5 | 0 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | (59) | (174) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | (39) | ||
Estimated fair value | 20,868 | [1] | 25,603 | [2] |
Short-term investments | Municipal bonds | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 1,965 | 2,970 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | (12) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | (40) | (80) | ||
Estimated fair value | 1,925 | [1] | 2,878 | [2] |
Short-term investments | Corporate debt securities | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 99,517 | 95,899 | ||
Gross Unrealized Gains | 96 | 7 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | (204) | (747) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | (669) | (1,135) | ||
Estimated fair value | 98,740 | [1] | 94,024 | [2] |
Short-term investments | Asset-backed securities | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 29,502 | 25,826 | ||
Gross Unrealized Gains | 14 | 0 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | (60) | (149) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | (143) | (269) | ||
Estimated fair value | $ 29,313 | [1] | $ 25,408 | [2] |
[1]See Note 8. Fair Value Measurements for further discussion on fair values.[2]See Note 8. Fair Value Measurements for further discussion on fair values. |
Financial Assets and Liabilit_6
Financial Assets and Liabilities - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2021 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,544,592 | $ 1,417,608 | ||
Total cash, cash equivalents and restricted cash | 1,546,381 | 1,419,864 | $ 1,575,851 | $ 1,435,183 |
Restricted cash included in prepaid and other current assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 1,050 | 1,566 | ||
Restricted cash included in other long-term assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 739 | $ 690 |
Financial Assets and Liabilit_7
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, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Financial Assets And Liabilities [Abstract] | ||||
Gains (losses) recorded in other income (expense), net | $ (3,484) | $ (5,707) | $ 4,737 | $ (5,261) |
Financial Assets and Liabilit_8
Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Financial Assets And Liabilities [Abstract] | ||
Total gross notional amounts | $ 1,167,333 | $ 1,386,140 |
Net fair value | $ 2,249 | $ (50,080) |
Financial Assets and Liabilit_9
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, 2023 | Oct. 31, 2022 |
Designated As Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | $ 13,007 | $ 2,315 |
Designated As Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | 10,698 | 52,171 |
Non-Designated Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | 128 | 223 |
Non-Designated Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | $ 188 | $ 447 |
Financial Assets and Liabili_10
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, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Financial Assets and Liabilities [Line Items] | ||||
Total revenue | $ 1,394,863 | $ 1,279,229 | $ 2,756,203 | $ 2,549,484 |
Operating Expenses | 809,517 | 662,717 | 1,630,571 | 1,328,952 |
Net income | 272,910 | 294,781 | 544,446 | 608,468 |
Foreign Exchange Contracts | Amount of gains (losses) recognized in OCI on derivatives (effective portion) | ||||
Financial Assets and Liabilities [Line Items] | ||||
Total revenue | 1,149 | (7,008) | 6,416 | (7,825) |
Operating Expenses | (5,679) | (14,124) | 31,166 | (14,892) |
Net income | (4,530) | (21,132) | 37,582 | (22,717) |
Foreign Exchange Contracts | Amount of gains (losses) reclassified from OCI (effective portion) | ||||
Financial Assets and Liabilities [Line Items] | ||||
Total revenue | (5,537) | 229 | (9,504) | (342) |
Operating Expenses | (3,737) | (891) | (8,127) | (1,165) |
Net income | $ (9,274) | $ (662) | $ (17,631) | $ (1,507) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 548,464 | $ 507,230 |
Total liabilities | 321,758 | 331,714 |
Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 310,872 | 279,096 |
Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 13,135 | 2,538 |
Accounts payable and accrued liabilities | 10,886 | 52,618 |
Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 73,611 | 77,683 |
Short-term investments | U.S. government agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 20,868 | 25,603 |
Short-term investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,925 | 2,878 |
Short-term investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 98,740 | 94,024 |
Short-term investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 29,313 | 25,408 |
Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 310,872 | 279,096 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 384,483 | 356,779 |
Total liabilities | 310,872 | 279,096 |
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 | 310,872 | 279,096 |
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) | Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 73,611 | 77,683 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | U.S. government agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 310,872 | 279,096 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 163,981 | 150,451 |
Total liabilities | 10,886 | 52,618 |
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) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 13,135 | 2,538 |
Accounts payable and accrued liabilities | 10,886 | 52,618 |
Significant Other Observable Inputs (Level 2) | Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Short-term investments | U.S. government agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 20,868 | 25,603 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,925 | 2,878 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 98,740 | 94,024 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 29,313 | 25,408 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | 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) | 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) | Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | U.S. government agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 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 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 4,140 | $ 311 | $ 44,999 | $ 12,057 |
2023 Restructuring Plan | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 50,000 | 50,000 | ||
2023 Restructuring Plan | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 70,000 | 70,000 | ||
2023 Restructuring Plan | Severance and Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 4,100 | 45,000 | ||
Cash payments | 36,600 | 36,800 | ||
Employee related restructuring liabilities | $ 8,200 | $ 8,200 |
Credit and Term Loan Faciliti_2
Credit and Term Loan Facilities - Additional Information (Detail) ¥ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | |||||
Jul. 31, 2018 USD ($) | Apr. 30, 2023 USD ($) | Dec. 14, 2022 USD ($) | Oct. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Jan. 22, 2021 USD ($) | Jul. 31, 2018 CNY (¥) | |
Foreign Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 33 | ¥ 220 | |||||
Borrowings, interest rate | 0.74% | ||||||
Debt instrument, term | 12 years | ||||||
Long-term line of credit, noncurrent | $ 20.2 | ||||||
Fifth Amendment | Unsecured Debt | Senior Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 850 | $ 650 | |||||
Fifth Amendment | Unsecured Debt | Uncommitted Incremental Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 150 | ||||||
The Credit Agreement | Unsecured Debt | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Current portion of line of credit | $ 0 | $ 0 | |||||
The Credit Agreement | Unsecured Debt | Revolving Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fees percentage | 0.09% | ||||||
The Credit Agreement | Unsecured Debt | Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fees percentage | 0.15% | ||||||
The Credit Agreement | Unsecured Debt | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0.785% | ||||||
The Credit Agreement | Unsecured Debt | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0.975% |
Leases (Details)
Leases (Details) | Apr. 30, 2023 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term | 10 years |
Leases - Components Of Lease Ex
Leases - Components Of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | ||
Leases [Abstract] | |||||
Operating lease expense | [1] | $ 24,480 | $ 22,159 | $ 48,828 | $ 44,191 |
Variable lease expense | [2] | 4,929 | 2,870 | 9,254 | 4,993 |
Total lease expense | $ 29,409 | $ 25,029 | $ 58,082 | $ 49,184 | |
[1]Operating lease expense includes immaterial amounts of short-term leases, net of sublease income.[2]Variable lease expense includes payments to lessors that are not fixed or determinable at lease commencement date. These payments primarily consist of maintenance, property taxes, insurance and variable indexed based payments. |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 43,920 | $ 41,871 |
ROU assets obtained in exchange for operating lease liabilities | $ 58,067 | $ 138,612 |
Leases - Lease Term And Discoun
Leases - Lease Term And Discount Rate Information (Details) | Apr. 30, 2023 | Oct. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 8 years 6 months 14 days | 9 years 1 month 28 days |
Weighted-average discount rate | 2.35% | 2.19% |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Details) $ in Thousands | Apr. 30, 2023 USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2023 | $ 36,213 |
2024 | 107,923 |
2025 | 97,195 |
2026 | 86,361 |
2027 | 84,725 |
2028 and thereafter | 334,335 |
Total future minimum lease payments | 746,752 |
Less: Imputed interest | 77,029 |
Total lease liabilities | $ 669,723 |
Leases - Lease Receipts (Detail
Leases - Lease Receipts (Details) $ in Thousands | Apr. 30, 2023 USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2023 | $ 8,329 |
2024 | 24,732 |
2025 | 25,360 |
2026 | 26,214 |
2027 | 27,333 |
2028 and thereafter | 84,030 |
Total | $ 195,998 |
Redeemable Non-controlling In_2
Redeemable Non-controlling Interest - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2023 | Oct. 31, 2022 | |
Noncontrolling Interest [Line Items] | |||
Redeemable non-controlling interest | $ 35,877,000 | $ 38,664,000 | |
OpenLight | |||
Noncontrolling Interest [Line Items] | |||
Percent of company acquired | 75% | ||
Payment to acquire business | $ 90,000,000 | ||
Redeemable noncontrolling interest, redemption value | 30,000,000 | ||
Redeemable noncontrolling interest, put option value | 10,100,000 | ||
Consideration transferred including redeemable noncontrolling interest | $ 100,100,000 | ||
Current ownership percentage | 73% | ||
Net loss incurred by OpenLight | $ 21,000,000 | ||
Net loss, attributable to redeemable non-controlling interest | 5,200,000 | ||
Redeemable non-controlling interest | $ 35,900,000 | ||
OpenLight | Juniper Networks, Inc | |||
Noncontrolling Interest [Line Items] | |||
Percent of equity interests held by non-controlling interest | 25% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (145,997) | $ (234,277) |
Cumulative currency translation adjustments | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | (124,663) | (156,192) |
Unrealized gains (losses) on derivative instruments, net of taxes | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | (20,273) | (75,486) |
Unrealized gains (losses) on available-for-sale securities, net of taxes | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (1,061) | $ (2,599) |
Accumulated Other Comprehensi_4
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, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | $ (9,274) | $ (662) | $ (17,631) | $ (1,507) |
Revenues | Gain (loss) on cash flow hedges, net of taxes | ||||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | (5,537) | 229 | (9,504) | (342) |
Operating expenses | Gain (loss) on cash flow hedges, net of taxes | ||||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | $ (3,737) | $ (891) | $ (8,127) | $ (1,165) |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
May 31, 2023 | Feb. 28, 2023 | Apr. 30, 2023 | Apr. 30, 2022 | [3] | Apr. 30, 2023 | Apr. 30, 2022 | Feb. 23, 2023 | Sep. 01, 2022 | |||
Accelerated Share Repurchases [Line Items] | |||||||||||
Stock repurchase program authorized amount | $ 1,500,000 | ||||||||||
Purchases of treasury stock (in shares) | 825 | [1],[2] | 984 | 1,631 | [1] | 1,685 | |||||
Aggregate purchased shares | $ 300,000 | [1],[2] | $ 290,000 | $ 560,724 | [1] | $ 535,000 | |||||
Remaining amount available for further repurchases | $ 794,300 | $ 794,300 | |||||||||
Accelerated Share Repurchase Program February 2023 | |||||||||||
Accelerated Share Repurchases [Line Items] | |||||||||||
Stock repurchase program authorized amount | $ 300,000 | ||||||||||
Prepayment to repurchase stock | $ 300,000 | ||||||||||
Initial share delivery | $ 255,000 | ||||||||||
Purchases of treasury stock (in shares) | 800 | ||||||||||
Purchases of treasury stock (in USD per share) | $ 364.1 | ||||||||||
Accelerated Share Repurchase Program February 2023 | Subsequent Event | |||||||||||
Accelerated Share Repurchases [Line Items] | |||||||||||
Stock repurchase program, prepayment during prior period, future derivative settlement | $ 45,000 | ||||||||||
[1] Excluded the 105,792 shares and $45.0 million equity forward contract from the February 2023 ASR settled in May 2023. Included the 107,020 shares and $45.0 million equity forward contract from the December 2022 ASR settled in February 2023. Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. |
Stock Repurchase Program - Stoc
Stock Repurchase Program - Stock Repurchase Activities (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
May 31, 2023 | Feb. 28, 2023 | Feb. 28, 2022 | Apr. 30, 2023 | [1],[2] | Apr. 30, 2022 | [3] | Apr. 30, 2023 | [1] | Apr. 30, 2022 | |
Accelerated Share Repurchases [Line Items] | ||||||||||
Purchases of treasury stock (in shares) | 825,000 | 984,000 | 1,631,000 | 1,685,000 | ||||||
Aggregate purchased shares | $ 300,000 | $ 290,000 | $ 560,724 | $ 535,000 | ||||||
Reissuance of treasury stock | 696,000 | 683,000 | 1,507,000 | 1,578,000 | ||||||
Accelerated Share Repurchase Program February 2023 | ||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||
Purchases of treasury stock (in shares) | 800,000 | |||||||||
Accelerated Share Repurchase Program February 2023 | Subsequent Event | ||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||
Share repurchases settlement of equity forward (in shares) | 105,792 | |||||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 45,000 | |||||||||
Accelerated Share Repurchase Program December 2022 | ||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||
Share repurchases settlement of equity forward (in shares) | 107,020 | |||||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 45,000 | |||||||||
Accelerated Share Repurchase Program December 2021 | ||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||
Share repurchases settlement of equity forward (in shares) | 161,215 | |||||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 40,000 | |||||||||
[1] Excluded the 105,792 shares and $45.0 million equity forward contract from the February 2023 ASR settled in May 2023. Included the 107,020 shares and $45.0 million equity forward contract from the December 2022 ASR settled in February 2023. Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | $ 143,258 | $ 110,061 | $ 277,485 | $ 205,832 |
Income tax benefit | (23,193) | (17,852) | (44,925) | (33,386) |
Stock-based compensation expense after taxes | 120,065 | 92,209 | 232,560 | 172,446 |
Cost of products | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | 16,895 | 13,078 | 32,924 | 24,285 |
Cost of maintenance and service | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | 7,531 | 5,893 | 14,686 | 10,476 |
Research and development expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | 75,355 | 58,109 | 144,586 | 107,649 |
Sales and marketing expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | 26,937 | 19,291 | 51,844 | 37,092 |
General and administrative expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | $ 16,540 | $ 13,690 | $ 33,445 | $ 26,330 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-Based Payment Award, Restricted Stock Units, Valuation Assumptions (Details) - Restricted Stock Units (RSUs), Market-based - $ / shares | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Expected life (in years) | 2 years 8 months 12 days | 1 year 8 months 8 days | 1 year 8 months 8 days | |
Risk-free interest rate | 4.36% | 1.33% | 1.33% | |
Volatility | 35.84% | 33.01% | 33.01% | |
Grant date fair value (in usd per share) | $ 357.29 | $ 280.82 | $ 280.82 | |
Minimum | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Expected life (in years) | 10 months 24 days | |||
Risk-free interest rate | 4.36% | |||
Volatility | 35.84% | |||
Grant date fair value (in usd per share) | $ 357.29 | |||
Maximum | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Expected life (in years) | 2 years 8 months 12 days | |||
Risk-free interest rate | 4.63% | |||
Volatility | 42.86% | |||
Grant date fair value (in usd per share) | $ 408.55 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 3 Months Ended |
Apr. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized share-based compensation expense | $ 1,200 |
Weighted-average period of total compensation costs to be recognized in years | 2 years 6 months |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized share-based compensation expense | $ 66.5 |
Weighted-average period of total compensation costs to be recognized in years | 2 years |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Intrinsic Value of Equity Awards Exercised (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Stock Compensation [Abstract] | ||||
Intrinsic value of awards exercised | $ 63,447 | $ 46,464 | $ 118,223 | $ 159,389 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Numerator: | ||||
Net income | $ 272,910 | $ 294,781 | $ 544,446 | $ 608,468 |
Denominator: | ||||
Weighted-average common shares for basic net income per share (shares) | 152,187 | 153,090 | 152,294 | 153,154 |
Dilutive effect of common share equivalents (shares) | 2,543 | 3,077 | 2,750 | 3,661 |
Weighted-average common shares for diluted net income per share (shares) | 154,730 | 156,167 | 155,044 | 156,815 |
Net income per share attributed to Synopsys: | ||||
Basic (in USD per share) | $ 1.79 | $ 1.93 | $ 3.57 | $ 3.97 |
Diluted (in USD per share) | $ 1.76 | $ 1.89 | $ 3.51 | $ 3.88 |
Anti-dilutive employee stock-based awards excluded (shares) | 480 | 1,259 | 402 | 986 |
Segment Disclosure - Additional
Segment Disclosure - Additional information (Detail) - segment | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Segment Reporting [Abstract] | ||
Number of reportable operating segment | 3 | 2 |
Segment Disclosure - Schedule o
Segment Disclosure - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,394,863 | $ 1,279,229 | $ 2,756,203 | $ 2,549,484 |
Adjusted operating income | 287,332 | 363,701 | 543,264 | 710,737 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | $ 464,727 | $ 470,153 | $ 943,894 | $ 929,544 |
Adjusted operating margin | 33% | 37% | 34% | 36% |
Operating Segments | Design Automation: | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 927,568 | $ 817,853 | $ 1,817,414 | $ 1,621,714 |
Adjusted operating income | $ 360,090 | $ 321,389 | $ 706,099 | $ 614,660 |
Adjusted operating margin | 39% | 39% | 39% | 38% |
Operating Segments | Design IP: | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 335,176 | $ 348,524 | $ 678,827 | $ 707,357 |
Adjusted operating income | $ 86,321 | $ 135,739 | $ 203,946 | $ 289,860 |
Adjusted operating margin | 26% | 39% | 30% | 41% |
Operating Segments | Software Integrity: | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 132,119 | $ 112,852 | $ 259,962 | $ 220,413 |
Adjusted operating income | $ 18,316 | $ 13,025 | $ 33,849 | $ 25,024 |
Adjusted operating margin | 14% | 12% | 13% | 11% |
Segment Disclosure - Schedule_2
Segment Disclosure - Schedule of Segment Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 287,332 | $ 363,701 | $ 543,264 | $ 710,737 |
Amortization of intangible assets | (24,964) | (22,048) | (50,880) | (45,160) |
Stock-based compensation expense | (143,258) | (110,061) | (277,485) | (205,832) |
Deferred compensation plan | (2,832) | 29,310 | (23,029) | 48,909 |
Restructuring charges | (4,140) | (311) | (44,999) | (12,057) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 464,727 | 470,153 | 943,894 | 929,544 |
Reconciling items: | ||||
Segment Reporting Information [Line Items] | ||||
Amortization of intangible assets | (24,454) | (21,367) | (49,811) | (43,727) |
Stock-based compensation expense | (143,258) | (110,061) | (277,485) | (205,832) |
Deferred compensation plan | (2,832) | 29,310 | (23,029) | 48,909 |
Restructuring charges | (4,140) | (311) | (44,999) | (12,057) |
Other | $ (2,711) | $ (4,023) | $ (5,306) | $ (6,100) |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | $ 1,394,863 | $ 1,279,229 | $ 2,756,203 | $ 2,549,484 |
United States | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | 661,413 | 577,881 | 1,333,195 | 1,188,215 |
Europe | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | 156,956 | 116,191 | 291,963 | 248,908 |
China | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | 196,427 | 215,563 | 394,205 | 428,386 |
Korea | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | 156,816 | 119,210 | 302,608 | 233,564 |
Other | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | $ 223,251 | $ 250,384 | $ 434,232 | $ 450,411 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Other Income (Expense) | ||||
Interest income | $ 8,099 | $ 1,283 | $ 14,998 | $ 2,141 |
Interest expense | (312) | (400) | (576) | (900) |
Gains (losses) on assets related to deferred compensation plan | 2,832 | (29,310) | 23,029 | (48,909) |
Foreign currency exchange gains (losses) | (2,374) | 4,852 | 326 | 3,828 |
Other, net | (3,992) | (338) | (10,232) | 134 |
Total | $ 4,253 | $ (23,913) | $ 27,545 | $ (43,706) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes and Effective Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 291,585 | $ 339,788 | $ 570,809 | $ 667,031 |
Provision for income taxes | $ 21,637 | $ 45,896 | $ 32,234 | $ 59,798 |
Effective tax rate | 7.40% | 13.50% | 5.60% | 9% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2023 | |
Taxes [Line Items] | |||
Statutory federal income tax rate | 21% | ||
Minimum | |||
Taxes [Line Items] | |||
Estimated potential decrease in underlying unrecognized tax benefits | $ 0 | ||
Maximum | |||
Taxes [Line Items] | |||
Estimated potential decrease in underlying unrecognized tax benefits | $ 36,000,000 | ||
Synopsys Hungary | Foreign Tax Authority | Tax Year 2011 - Tax Year 2013 | Hungarian Tax Authority | |||
Taxes [Line Items] | |||
Aggregate tax assessment | $ 25,000,000 | ||
Estimate of additional penalties and interest | $ 11,000,000 | ||
Unrecognized tax benefits | $ 17,400,000 |