Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Dec. 13, 2013 | Apr. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Oct-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'SNPS | ' | ' |
Entity Registrant Name | 'SYNOPSYS INC | ' | ' |
Entity Central Index Key | '0000883241 | ' | ' |
Current Fiscal Year End Date | '--10-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 154,342,900 | ' |
Entity Public Float | ' | ' | $3,800,000,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,022,441 | $700,382 |
Accounts receivable, net of allowances of $4,253 and $6,072, respectively | 256,026 | 292,668 |
Deferred income taxes | 92,058 | 74,712 |
Income taxes receivable and prepaid taxes | 18,277 | 17,267 |
Prepaid and other current assets | 59,175 | 55,627 |
Total current assets | 1,447,977 | 1,140,656 |
Property and equipment, net | 197,600 | 191,243 |
Goodwill | 1,975,971 | 1,976,987 |
Intangible assets, net | 335,425 | 466,322 |
Long-term prepaid taxes | 7,935 | 9,429 |
Long-term deferred income taxes | 243,066 | 239,412 |
Other long-term assets | 150,961 | 123,607 |
Total assets | 4,358,935 | 4,147,656 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable and accrued liabilities | 358,197 | 383,093 |
Accrued income taxes | 7,168 | 4,682 |
Deferred revenue | 827,554 | 834,864 |
Short-term debt | 30,000 | 30,000 |
Total current liabilities | 1,222,919 | 1,252,639 |
Long-term accrued income taxes | 53,064 | 52,645 |
Long-term deferred revenue | 54,736 | 67,184 |
Long-term debt | 75,000 | 105,000 |
Other long-term liabilities | 164,939 | 126,217 |
Total liabilities | 1,570,658 | 1,603,685 |
Stockholders' equity: | ' | ' |
Preferred Stock, $0.01 par value: 2,000 shares authorized; none outstanding | ' | ' |
Common Stock, $0.01 par value: 400,000 shares authorized; 154,169 and 150,899 shares outstanding, respectively | 1,542 | 1,509 |
Capital in excess of par value | 1,597,244 | 1,585,034 |
Retained earnings | 1,324,854 | 1,098,694 |
Treasury stock, at cost: 3,095 and 6,365 shares, respectively | -106,668 | -168,090 |
Accumulated other comprehensive income (loss) | -28,695 | -15,461 |
Total Synopsys stockholders' equity | 2,788,277 | 2,501,686 |
Non-controlling interest | ' | 42,285 |
Total stockholders' equity | 2,788,277 | 2,543,971 |
Total liabilities and stockholders' equity | $4,358,935 | $4,147,656 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowances | $4,253 | $6,072 |
Preferred Stock, par value | $0.01 | $0.01 |
Preferred Stock, shares authorized | 2,000 | 2,000 |
Preferred Stock, shares outstanding | ' | ' |
Common Stock, par value | $0.01 | $0.01 |
Common Stock, shares authorized | 400,000 | 400,000 |
Common Stock, shares outstanding | 154,169 | 150,899 |
Treasury stock, shares | 3,095 | 6,365 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Revenue: | ' | ' | ' |
Time-based license | $1,599,464 | $1,449,300 | $1,260,342 |
Upfront license | 132,018 | 105,137 | 90,531 |
Maintenance and service | 230,732 | 201,580 | 184,770 |
Total revenue | 1,962,214 | 1,756,017 | 1,535,643 |
Cost of revenue: | ' | ' | ' |
License | 268,910 | 232,811 | 205,390 |
Maintenance and service | 80,338 | 78,607 | 80,241 |
Amortization of intangible assets | 104,304 | 81,255 | 54,819 |
Total cost of revenue | 453,552 | 392,673 | 340,450 |
Gross margin | 1,508,662 | 1,363,344 | 1,195,193 |
Operating expenses: | ' | ' | ' |
Research and development | 669,197 | 581,628 | 491,871 |
Sales and marketing | 425,982 | 415,629 | 363,118 |
General and administrative | 143,791 | 157,459 | 112,760 |
Amortization of intangible assets | 23,199 | 18,604 | 14,601 |
Total operating expenses | 1,262,169 | 1,173,320 | 982,350 |
Operating income | 246,493 | 190,024 | 212,843 |
Other income (expense), net | 29,173 | 11,111 | 6,270 |
Income before provision for income taxes | 275,666 | 201,135 | 219,113 |
Provision (benefit) for income taxes | 27,866 | 18,733 | -2,251 |
Net income | $247,800 | $182,402 | $221,364 |
Net income per share: | ' | ' | ' |
Basic | $1.62 | $1.24 | $1.51 |
Diluted | $1.58 | $1.21 | $1.47 |
Shares used in computing per share amounts: | ' | ' | ' |
Basic | 153,319 | 146,887 | 146,573 |
Diluted | 156,601 | 150,280 | 150,367 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Net income | $247,800 | $182,402 | $221,364 |
Other comprehensive income (loss): | ' | ' | ' |
Change in foreign currency translation adjustment | -12,726 | -5,805 | 1,659 |
Cash flow hedges: | ' | ' | ' |
Deferred gains (losses), net of tax of $2,999, $1,101, and $3,049 for fiscal years 2013, 2012 and 2011, respectively | 6,057 | -2,731 | -8,477 |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(540), $(4,174), and $(422) for fiscal years 2013, 2012 and 2011, respectively | -6,565 | 14,235 | 1,989 |
Change in unrealized gains (losses) on investments, net of tax of $58 and $226, for fiscal 2012 and 2011, respectively. | ' | -215 | -342 |
Other comprehensive income (loss), net of tax effects | -13,234 | 5,484 | -5,171 |
Comprehensive income | $234,566 | $187,886 | $216,193 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Deferred gain (loss), tax | $2,999 | $1,101 | $3,049 |
Reclassification adjustment on deferred (gains) loss included in net income, tax | -540 | -4,174 | -422 |
Unrealized loss on investments, tax | ' | $58 | $226 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Capital In Excess Of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Synopsys Shareholder's Equity | Non-Controlling Interest |
In Thousands, unless otherwise specified | ||||||||
Balance at Oct. 31, 2010 | $2,100,182 | $1,485 | $1,541,383 | $770,674 | ($197,586) | ($15,774) | $2,100,182 | ' |
Balance (in shares) at Oct. 31, 2010 | ' | 148,479 | ' | ' | ' | ' | ' | ' |
Components of comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 221,364 | ' | ' | 221,364 | ' | ' | 221,364 | ' |
Unrealized loss on investments, net of tax of $58 in 2012 and $226 in 2011 | -342 | ' | ' | ' | ' | -342 | -342 | ' |
Deferred gain (loss) on cash flow hedges, net of tax of $2,999 in 2013, $1,101 in 2012 and $3,049 in 2011 | -8,477 | ' | ' | ' | ' | -8,477 | -8,477 | ' |
Reclassification adjustment on deferred gain of cash flow hedges, net of tax of $(540) in 2013, $(4,174) in 2012 and $(422) in 2011 | 1,989 | ' | ' | ' | ' | 1,989 | 1,989 | ' |
Foreign currency translation adjustment | 1,659 | ' | ' | ' | ' | 1,659 | 1,659 | ' |
Purchases of treasury stock, shares | -15,144 | -15,144 | ' | ' | ' | ' | ' | ' |
Purchases of treasury stock, value | -401,836 | -151 | 151 | ' | -401,836 | ' | -401,836 | ' |
Equity forward contract | -33,335 | ' | -33,335 | ' | ' | ' | -33,335 | ' |
Common stock issued (in shares) | 9,973 | 9,973 | ' | ' | ' | ' | ' | ' |
Common stock issued | 163,682 | 99 | -43,286 | -34,521 | 241,390 | ' | 163,682 | ' |
Stock compensation expense | 56,414 | ' | 56,414 | ' | ' | ' | 56,414 | ' |
Balance at Oct. 31, 2011 | 2,101,300 | 1,433 | 1,521,327 | 957,517 | -358,032 | -20,945 | 2,101,300 | ' |
Balance (in shares) at Oct. 31, 2011 | ' | 143,308 | ' | ' | ' | ' | ' | ' |
Components of comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 181,898 | ' | ' | 182,402 | ' | ' | 182,402 | -504 |
Unrealized loss on investments, net of tax of $58 in 2012 and $226 in 2011 | -215 | ' | ' | ' | ' | -215 | -215 | ' |
Deferred gain (loss) on cash flow hedges, net of tax of $2,999 in 2013, $1,101 in 2012 and $3,049 in 2011 | -2,731 | ' | ' | ' | ' | -2,731 | -2,731 | ' |
Reclassification adjustment on deferred gain of cash flow hedges, net of tax of $(540) in 2013, $(4,174) in 2012 and $(422) in 2011 | 14,235 | ' | ' | ' | ' | 14,235 | 14,235 | ' |
Foreign currency translation adjustment | -5,805 | ' | ' | ' | ' | -5,805 | -5,805 | ' |
Purchases of treasury stock, shares | -2,474 | -2,474 | ' | ' | ' | ' | ' | ' |
Purchases of treasury stock, value | -40,000 | -25 | 33,360 | ' | -73,335 | ' | -40,000 | ' |
Common stock issued (in shares) | 10,065 | 10,065 | ' | ' | ' | ' | ' | ' |
Common stock issued | 181,163 | 101 | -40,990 | -41,225 | 263,277 | ' | 181,163 | ' |
Stock compensation expense | 71,337 | ' | 71,337 | ' | ' | ' | 71,337 | ' |
Non-controlling interest in an acquired company | 42,789 | ' | ' | ' | ' | ' | ' | 42,789 |
Balance at Oct. 31, 2012 | 2,543,971 | 1,509 | 1,585,034 | 1,098,694 | -168,090 | -15,461 | 2,501,686 | 42,285 |
Balance (in shares) at Oct. 31, 2012 | ' | 150,899 | ' | ' | ' | ' | ' | ' |
Components of comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 247,800 | ' | ' | 247,800 | ' | ' | 247,800 | ' |
Deferred gain (loss) on cash flow hedges, net of tax of $2,999 in 2013, $1,101 in 2012 and $3,049 in 2011 | 6,057 | ' | ' | ' | ' | 6,057 | 6,057 | ' |
Reclassification adjustment on deferred gain of cash flow hedges, net of tax of $(540) in 2013, $(4,174) in 2012 and $(422) in 2011 | -6,565 | ' | ' | ' | ' | -6,565 | -6,565 | ' |
Foreign currency translation adjustment | -12,726 | ' | ' | ' | ' | -12,726 | -12,726 | ' |
Purchases of treasury stock, shares | -3,996 | -3,996 | ' | ' | ' | ' | ' | ' |
Purchases of treasury stock, value | -145,016 | -40 | 40 | ' | -145,016 | ' | -145,016 | ' |
Common stock issued (in shares) | 7,266 | 7,266 | ' | ' | ' | ' | ' | ' |
Common stock issued | 129,559 | 73 | -55,312 | -21,640 | 206,438 | ' | 129,559 | ' |
Stock compensation expense | 67,482 | ' | 67,482 | ' | ' | ' | 67,482 | ' |
Acquisition of non-controlling interest | -42,285 | ' | ' | ' | ' | ' | ' | -42,285 |
Balance at Oct. 31, 2013 | $2,788,277 | $1,542 | $1,597,244 | $1,324,854 | ($106,668) | ($28,695) | $2,788,277 | ' |
Balance (in shares) at Oct. 31, 2013 | ' | 154,169 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Unrealized loss on investments, tax | ' | $58 | $226 |
Deferred gain (loss) on cash flow hedges, tax | 2,999 | 1,101 | 3,049 |
Reclassification adjustment on deferred loss (gain) of cash flow hedges, tax | ($540) | ($4,174) | ($422) |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Cash flow from operating activities: | ' | ' | ' |
Net income | $247,800 | $182,402 | $221,364 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Amortization and depreciation | 187,404 | 156,840 | 128,550 |
Stock compensation | 67,511 | 71,414 | 56,414 |
Allowance for doubtful accounts | 102 | 3,754 | 1,058 |
Write-down of long-term investments | ' | 452 | 999 |
(Gain) loss on sale of investments | -868 | -650 | -936 |
Deferred income taxes | -676 | 12,850 | 22,278 |
Net changes in operating assets and liabilities, net of acquired assets and liabilities: | ' | ' | ' |
Accounts receivable | 37,590 | -53,395 | -18,974 |
Prepaid and other current assets | -12,063 | 15,199 | -13,445 |
Other long-term assets | -27,468 | -10,231 | -4,248 |
Accounts payable and accrued liabilities | -1,135 | 42,960 | -7,408 |
Income taxes | -2,306 | -43,113 | -58,377 |
Deferred revenue | 814 | 107,586 | 113,041 |
Net cash provided by operating activities | 496,705 | 486,068 | 440,316 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds from sales and maturities of short-term investments | ' | 166,132 | 136,983 |
Purchases of short-term investments | ' | -18,179 | -127,385 |
Proceeds from sales of long-term investments | 989 | 506 | 2,828 |
Proceeds from sale of property and equipment | 2,000 | ' | ' |
Purchases of property and equipment | -65,459 | -54,191 | -57,345 |
Cash paid for acquisitions and intangible assets, net of cash acquired | ' | -970,089 | -41,015 |
Capitalization of software development costs | -3,609 | -3,302 | -2,885 |
Net cash used in investing activities | -66,079 | -879,123 | -88,819 |
Cash flows from financing activities: | ' | ' | ' |
Principal payments on capital leases | -3,913 | -6,252 | -4,628 |
Acquisition of non-controlling interests | -44,004 | ' | ' |
Proceeds from credit facility and term loan | ' | 250,000 | ' |
Repayment of debt | -30,712 | -136,156 | ' |
Issuances of common stock | 131,914 | 175,896 | 162,180 |
Purchase of equity forward contract | ' | ' | -33,335 |
Purchases of treasury stock | -145,016 | -40,000 | -401,836 |
Other | -6,254 | ' | ' |
Net cash provided by (used in) financing activities | -97,985 | 243,488 | -277,619 |
Effect of exchange rate changes on cash and cash equivalents | -10,582 | -5,128 | 5,792 |
Net change in cash and cash equivalents | 322,059 | -154,695 | 79,670 |
Cash and cash equivalents, beginning of year | 700,382 | 855,077 | 775,407 |
Cash and cash equivalents, end of year | 1,022,441 | 700,382 | 855,077 |
Supplemental Disclosure of Cash Flow Information: | ' | ' | ' |
Cash paid for income taxes during the year: | 31,326 | 49,208 | 36,577 |
Interest payments during the year: | $1,761 | $1,961 | $69 |
Description_of_Business
Description of Business | 12 Months Ended |
Oct. 31, 2013 | |
Description of Business | ' |
Note 1. Description of Business | |
Synopsys, Inc. (Synopsys or the Company) is a world leader in supplying the electronic design automation (EDA) software that engineers use to design, create prototypes for and test integrated circuits, also known as chips. The Company also provides software and hardware used to develop the systems that incorporate integrated circuits and the software that runs on those integrated circuits. The Company’s intellectual property (IP) products are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. To complement these product offerings, the Company provides technical services to support our solutions and we help our customers develop chips and electronic systems. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Note 2. Summary of Significant Accounting Policies | |||||||||||||||||
Fiscal Year End. The Company’s fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. Fiscal 2013 was a 52-week year ending on November 2, 2013. Fiscal 2012 and fiscal 2011 were 53-week and 52-week years, respectively, ending on November 3, 2012 and October 29, 2011, respectively. For presentation purposes, the consolidated financial statements and accompanying notes refer to the closest calendar month end. | |||||||||||||||||
Principles of Consolidation. The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||||||
Use of Estimates. To prepare financial statements in conformity with U.S. generally accepted accounting principles (GAAP), management must make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position. | |||||||||||||||||
Foreign Currency Translation. The functional currency of the majority of the Company’s active foreign subsidiaries is the foreign subsidiary’s local currency. Assets and liabilities that are not denominated in the functional currency are remeasured into the functional currency with any related gain or loss recorded in earnings. The Company translates assets and liabilities of its non-U.S. dollar functional currency foreign operations into the U.S. dollar reporting currency at exchange rates in effect at the balance sheet date. The Company translates income and expense items of such foreign operations into U.S. dollars reporting currency at average exchange rates for the period. Accumulated translation adjustments are reported in stockholders’ equity, as a component of accumulated other comprehensive income (loss). | |||||||||||||||||
Foreign Currency Contracts. The Company operates internationally and is exposed to potentially adverse movements in currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions. The Company accounts for the foreign currency forward contracts under Accounting Standard Codification (ASC) 815, Derivatives and Hedging. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheet. | |||||||||||||||||
The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. See Note 5. Financial Assets and Liabilities. | |||||||||||||||||
Fair Values of Financial Instruments. The Company’s cash equivalents and foreign currency contracts are carried at fair value. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. Non-marketable equity securities are carried at cost. The Company performs periodic impairment analysis over these non-marketable equity securities. See Note 6. Fair Value Measures. | |||||||||||||||||
Cash and Cash Equivalents. The Company classifies investments with original maturities of three months or less when acquired as cash equivalents. | |||||||||||||||||
Concentration of Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign currency contracts, and accounts receivable from trade customers. The Company maintains cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U.S. and in various overseas locations. | |||||||||||||||||
The Company sells its products worldwide primarily to customers in the global electronics market. The Company performs on-going credit evaluations of its customers’ financial condition and does not require collateral. The Company establishes reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented. | |||||||||||||||||
Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains allowances for doubtful accounts to reduce the Company’s receivables to their estimated net realizable value. The Company provides a general reserve on all accounts receivable based on a review of customer accounts. The following table presents the changes in the allowance for doubtful accounts. | |||||||||||||||||
Fiscal Year | Balance at | Provisions | Write-offs(1) | Balance at | |||||||||||||
Beginning | End of | ||||||||||||||||
of Period | Period | ||||||||||||||||
(in thousands) | |||||||||||||||||
2013 | $ | 6,072 | $ | 102 | $ | (1,921 | ) | $ | 4,253 | ||||||||
2012 | $ | 2,489 | $ | 3,754 | $ | (171 | ) | $ | 6,072 | ||||||||
2011 | $ | 2,727 | $ | 1,058 | $ | (1,296 | ) | $ | 2,489 | ||||||||
-1 | Balances written off, net of recoveries. | ||||||||||||||||
Income Taxes. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||||||
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. | |||||||||||||||||
Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Assets, excluding land, are depreciated using the straight-line method over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over the remaining term of the lease or the economic useful life of the asset, whichever is shorter. Depreciation expenses were $56.7 million, $52.8 million and $51.0 million in fiscal 2013, 2012 and 2011, respectively. Repair and maintenance costs are expensed as incurred and such costs were $26.3 million, $23.7 million and $20.9 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
A detail of property and equipment is as follows: | |||||||||||||||||
October 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Computer and other equipment | $ | 372,295 | $ | 329,376 | |||||||||||||
Buildings | 69,352 | 70,237 | |||||||||||||||
Furniture and fixtures | 31,317 | 29,212 | |||||||||||||||
Land | 20,414 | 20,414 | |||||||||||||||
Leasehold improvements | 96,334 | 92,111 | |||||||||||||||
589,712 | 541,350 | ||||||||||||||||
Less accumulated depreciation and amortization(1) | (392,112 | ) | (350,107 | ) | |||||||||||||
Total | $ | 197,600 | $ | 191,243 | |||||||||||||
-1 | Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets. | ||||||||||||||||
The useful lives of depreciable assets are as follows: | |||||||||||||||||
Useful Life in Years | |||||||||||||||||
Computer and other equipment | 5-Mar | ||||||||||||||||
Buildings | 30 | ||||||||||||||||
Furniture and fixtures | 5 | ||||||||||||||||
Leasehold improvements (average) | 5 | ||||||||||||||||
Goodwill. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment annually or more frequently if facts and circumstances warrant a review. The Company determined that it is a single reporting unit for the purpose of goodwill impairment tests. For purposes of assessing the impairment of goodwill, the Company estimates the value of the reporting unit using its market capitalization as the best evidence of fair value. This fair value is then compared to the carrying value of the reporting unit. During fiscal 2013, 2012 and 2011, there were no indicators of impairment to goodwill. | |||||||||||||||||
Intangible Assets. Intangible assets consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, covenants not to compete, capitalized software, and in-process research and development. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from two to ten years. | |||||||||||||||||
The Company continually monitors events and changes in circumstances that could indicate carrying amounts of the long-lived assets, including property and equipment and intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through the undiscounted future cash flow. If the undiscounted future cash flow is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company had no impairments of any long-lived assets in fiscal 2013, 2012 or 2011. | |||||||||||||||||
Accounts Payable and Accrued Liabilities. The balance consists of: | |||||||||||||||||
October 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Payroll and related benefits | $ | 302,374 | $ | 299,961 | |||||||||||||
Other accrued liabilities | 47,248 | 53,277 | |||||||||||||||
Accounts payable | 8,575 | 29,855 | |||||||||||||||
Total | $ | 358,197 | $ | 383,093 | |||||||||||||
Other Long-term Liabilities. The balance consists of: | |||||||||||||||||
October 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Deferred compensation liability (See Note 10) | $ | 126,621 | $ | 100,645 | |||||||||||||
Other long-term liabilities | 38,318 | 25,572 | |||||||||||||||
Total | $ | 164,939 | $ | 126,217 | |||||||||||||
Other Comprehensive Income (Loss). Other comprehensive income (loss) (OCI) includes all changes in equity during a period from non-owner sources, such as accumulated net translation adjustments, unrealized gain (loss) on certain foreign currency forward contracts that qualify as cash flow hedges, reclassification adjustments related to cash flow hedges and unrealized gain (loss) on investments. See Note 8. Accumulated Other Comprehensive Income (Loss). | |||||||||||||||||
Revenue Recognition. Software license revenue consists of fees associated with the licensing of the Company’s software. Maintenance and service revenue consists of maintenance fees associated with perpetual and term licenses and professional services fees. Hardware revenue consists of Field Programmable Gate Array (FPGA)-based emulation and prototyping systems. | |||||||||||||||||
With respect to software licenses, the Company utilizes three license types: | |||||||||||||||||
• | Technology Subscription Licenses (TSLs). TSLs are time-based licenses for a finite term, and generally provide the customer limited rights to receive, or to exchange certain quantities of licensed software for, unspecified future technology. The Company bundles and does not charge separately for post-contract customer support (maintenance) for the term of the license. | ||||||||||||||||
• | Term licenses. Term licenses are also for a finite term, but do not provide the customer any rights to receive, or to exchange licensed software for, unspecified future technology. Customers purchase maintenance separately for the first year and may renew annually for the balance of the term. The annual maintenance fee is typically calculated as a percentage of the net license fee. | ||||||||||||||||
• | Perpetual licenses. Perpetual licenses continue as long as the customer renews maintenance plus an additional 20 years. Perpetual licenses do not provide the customer any rights to receive, or to exchange licensed software for, unspecified future technology. Customers purchase maintenance separately for the first year and may renew annually. | ||||||||||||||||
For the three software license types, the Company recognizes revenue as follows: | |||||||||||||||||
• | TSLs. The Company typically recognizes revenue from TSL fees (which include bundled maintenance) ratably over the term of the license period, or as customer installments become due and payable, whichever is later. Revenue attributable to TSLs is reported as “time-based license revenue” in the consolidated statements of operations. | ||||||||||||||||
• | Term licenses. The Company recognizes revenue from term licenses in full upon shipment of the software if payment terms require the customer to pay at least 75% of the license fee and 100% of the maintenance fee within one year from shipment and all other revenue recognition criteria are met. Revenue attributable to these term licenses is reported as “upfront license revenue” in the consolidated statements of operations. For term licenses in which less than 75% of the license fee and 100% of the maintenance fee is payable within one year from shipment, the Company recognizes revenue as customer payments become due and payable. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. | ||||||||||||||||
• | Perpetual licenses. The Company recognizes revenue from perpetual licenses in full upon shipment of the software if payment terms require the customer to pay at least 75% of the license fee and 100% of the maintenance fee within one year from shipment and all other revenue recognition criteria are met. Revenue attributable to these perpetual licenses is reported as “upfront license revenue” in the consolidated statements of operations. For perpetual licenses in which less than 75% of the license fee and 100% of the maintenance fee is payable within one year from shipment, the Company recognizes revenue as customer installments become due and payable. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. | ||||||||||||||||
The Company also enters into arrangements in which portions of revenue are contingent upon the occurrence of uncertain future events, for example, royalty arrangements. The Company refers to this revenue as “contingent revenue.” Contingent revenue is recognized if and when the applicable event occurs. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. Historically, these arrangements have not been material to the Company’s total revenue. | |||||||||||||||||
The Company recognizes revenue from sales of hardware and perpetual licenses to IP and system-level products in full upon shipment if all other revenue recognition criteria are met. Revenue attributable to these sales is reported as “upfront license revenue” in the consolidated statements of operations and is not material to the Company’s total revenue. | |||||||||||||||||
The Company infrequently enters into multiple-element arrangements that contain both software and non-software deliverables such as hardware. The Company has determined that the software and non-software deliverables in the Company’s contracts are separate units of accounting. The Company recognizes revenue for the separate units of accounting when all revenue recognition criteria are met. Revenue allocated to hardware units of accounting is recognized upon shipment when all other revenue recognition criteria are met. Revenue allocated to software units of accounting is recognized according to the methods described above depending on the software license type (TSL, term license or perpetual license). Such arrangements have not had a material effect on the Company’s consolidated financial statements and are not expected to have a material effect in future periods. | |||||||||||||||||
The Company recognizes revenue from maintenance fees ratably over the maintenance period to the extent cash has been received or fees become due and payable, and recognizes revenue from professional services and training fees as such services are performed and accepted by the customer. Revenue attributable to maintenance, professional services and training is reported as “maintenance and service revenue” in the consolidated statements of operations. | |||||||||||||||||
The Company also enters into arrangements to deliver software products, either alone or together with other products or services that require significant modification, or customization of the software. The Company accounts for such arrangements using the percentage of completion method as the Company has the ability to make reasonably dependable estimates that relate to the extent of progress toward completion, contract revenues and costs. The Company measures the progress towards completion using the labor hours incurred to complete the project. Revenue attributable to these arrangements is reported as “maintenance and service revenue” in the consolidated statements of operations. | |||||||||||||||||
The Company determines the fair value of each element in multiple element software arrangements that contain only software and software related deliverables based on vendor-specific objective evidence (VSOE). The Company limits assessment of VSOE of fair value for each element to the price charged when such element is sold separately. The Company has analyzed all of the elements included in multiple-element software arrangements and has determined that the Company has sufficient VSOE to allocate revenue to the maintenance components of the Company’s perpetual and term license products and to professional services. Accordingly, assuming all other revenue recognition criteria are met, the Company recognizes license revenue from perpetual and term licenses upon delivery using the residual method, recognizes revenue from maintenance ratably over the maintenance term, and recognizes revenue from professional services as services are performed and accepted by the customer. The Company recognizes revenue from TSLs ratably over the term of the license, assuming all other revenue recognition criteria are met, since there is not sufficient VSOE to allocate the TSL fee between license and maintenance services. | |||||||||||||||||
The Company makes significant judgments related to revenue recognition. Specifically, in connection with each transaction involving the Company’s products, the Company must evaluate whether: (1) persuasive evidence of an arrangement exists, (2) delivery of software or services has occurred, (3) the fee for such software or services is fixed or determinable, and (4) collectability of the full license or service fee is probable. All four of these criteria must be met in order for the Company to recognize revenue with respect to a particular arrangement. The Company applies these revenue recognition criteria as follows: | |||||||||||||||||
• | Persuasive Evidence of an Arrangement Exists. Prior to recognizing revenue on an arrangement, the Company’s customary policy is to have a written contract, signed by both the customer and by the Company or a purchase order from those customers that have previously negotiated a standard end-user license arrangement or purchase agreement. | ||||||||||||||||
• | Delivery Has Occurred. The Company delivers its products to its customers electronically or physically. For electronic deliveries, delivery occurs when the Company provides access to its customers to take immediate possession of the software through downloading it to the customer’s hardware. For physical deliveries, the standard transfer terms are typically Freight on Board (FOB) shipping point. The Company generally ships its products or license keys promptly after acceptance of customer orders. However, a number of factors can affect the timing of product shipments and, as a result, timing of revenue recognition, including the delivery dates requested by customers and its operational capacity to fulfill product orders at the end of a fiscal quarter. | ||||||||||||||||
• | The Fee is Fixed or Determinable. The Company’s determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. The Company’s standard payment terms for perpetual and term licenses require 75% or more of the license fee and 100% of the maintenance fee to be paid within one year. If the arrangement includes these terms, the Company regards the fee as fixed or determinable, and recognizes all license revenue under the arrangement in full upon delivery (assuming all other revenue recognition criteria are met). If the arrangement does not include these terms, the Company does not consider the fee to be fixed or determinable and generally recognizes revenue when customer installments are due and payable. In the case of a TSL, because of the right to exchange products or receive unspecified future technology and because VSOE for maintenance services does not exist for a TSL, the Company recognizes revenue ratably over the term of the license, but not in advance of when customers’ installments become due and payable. | ||||||||||||||||
• | Collectability is Probable. The Company judges collectability of the arrangement fees on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a history of successful collection. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position and ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is not probable under a particular arrangement based upon its credit review process or the customer’s payment history, the Company recognizes revenue under that arrangement as customer payments are actually received. | ||||||||||||||||
Warranties and Indemnities. The Company generally warrants its products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for software products and for up to six months for hardware products. In certain cases, the Company also provides its customers with limited indemnification with respect to claims that their use of the Company’s software products infringe on United States patents, copyrights, trademarks or trade secrets. The Company is unable to estimate the potential impact of these commitments on the future results of operations. To date, the Company has not been required to pay any material warranty claims. | |||||||||||||||||
Net Income Per Share. The Company computes basic income per share by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding such as stock options and unvested restricted stock units and awards during the period using the treasury stock method. | |||||||||||||||||
The table below reconciles the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share: | |||||||||||||||||
Year Ended October 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 247,800 | $ | 182,402 | $ | 221,364 | |||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares for basic net income per share | 153,319 | 146,887 | 146,573 | ||||||||||||||
Dilutive effect of common share equivalents from equity—based compensation | 3,282 | 3,393 | 3,794 | ||||||||||||||
Weighted average common shares for diluted net income per share | 156,601 | 150,280 | 150,367 | ||||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 1.62 | $ | 1.24 | $ | 1.51 | |||||||||||
Diluted | $ | 1.58 | $ | 1.21 | $ | 1.47 | |||||||||||
Anti-dilutive employee stock-based awards excluded(1) | 1,326 | 3,314 | 4,669 | ||||||||||||||
-1 | These stock options and unvested restricted stock units were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future. |
Business_Combinations_and_Acqu
Business Combinations and Acquisition of Non-controlling Interest | 12 Months Ended |
Oct. 31, 2013 | |
Business Combinations and Acquisition of Non-controlling Interest | ' |
Note 3. Business Combinations and Acquisition of Non-controlling Interest | |
Fiscal 2013 Acquisition of Non-controlling Interest | |
During the first quarter of fiscal 2013, the Company completed the acquisition of the non-controlling interest in SpringSoft, Inc. (SpringSoft), a company organized under the laws of the Republic of China (Taiwan), in which the remaining 8.4% of outstanding shares of SpringSoft along with the remaining outstanding vested stock options of SpringSoft were exchanged for cash of $44.0 million. | |
Fiscal 2012 Acquisitions | |
Acquisition of SpringSoft | |
On August 3, 2012, the Company’s wholly owned subsidiary incorporated under the laws of the Republic of China entered into a merger agreement pursuant to which it commenced a cash tender offer to acquire SpringSoft at a price of 57.00 New Taiwan Dollars per share. The Company acquired 91.6% of the outstanding shares of SpringSoft on October 1, 2012 for an aggregate cash consideration of $373.5 million. The remaining 8.4% of the outstanding shares along with the fair value of outstanding SpringSoft equity awards were reflected as a Non-controlling Interest (NCI) in the Company’s fiscal 2012 financial statements. This acquisition enables the Company to strengthen and widen its offerings in design, verification and debugging tools. | |
The Company allocated the total purchase consideration of $426.9 million (including the $44.0 million for the fair value of the non-controlling interest and $9.4 million related to equity awards assumed) to the assets acquired and liabilities assumed based on their respective fair values, including acquired identifiable intangible assets of $107.3 million, resulting in total goodwill of $257.6 million. Identifiable intangible assets are being amortized over three to eight years. Acquisition-related costs directly attributable to the business combination were $6.6 million for fiscal 2012 and were expensed as incurred in the consolidated statements of operations. These costs consisted primarily of employee separation costs and professional services. | |
Acquisition of Magma Design Automation, Inc. (Magma) | |
On February 22, 2012, the Company acquired Magma, a chip design software provider, at a per-share price of $7.35. Additionally, the Company assumed unvested restricted stock units (RSUs) and stock options, collectively called “equity awards.” The aggregate purchase price was approximately $550.2 million. This acquisition enables the Company to more rapidly meet the needs of leading-edge semiconductor designers for more sophisticated design tools. | |
The Company allocated the total purchase consideration of $550.2 million (including $6.8 million related to equity awards assumed) to the assets acquired and liabilities assumed based on their respective fair values at the acquisition date, including acquired identifiable intangible assets of $184.3 million, resulting in total goodwill of $316.3 million. Identifiable intangible assets are being amortized over three to ten years. Acquisition-related costs directly attributable to the business combination totaling $33.5 million for fiscal 2012 were expensed as incurred in the consolidated statements of operations and consist primarily of employee separation costs, contract terminations, professional services, and facilities closure costs. | |
Other Fiscal 2012 Acquisitions | |
During fiscal 2012, the Company acquired five other companies, including Emulation & Verification Engineering, S.A. (EVE), for cash and allocated the total purchase consideration of $213.2 million to the assets acquired and liabilities assumed based on their respective fair values, resulting in total goodwill of $118.1 million. Acquired identifiable intangible assets totaling $73.3 million were valued using appropriate valuation methods such as income or cost methods and are being amortized over their respective useful lives ranging from one to eight years. During fiscal 2012, acquisition-related costs totaling $6.8 million were expensed as incurred in the consolidated statements of operations. | |
Fiscal 2011 Acquisitions | |
During fiscal 2011, the Company completed two acquisitions for cash and allocated the total purchase consideration of $37.4 million to the assets and liabilities acquired based on their respective fair values at the acquisition date resulting in goodwill of $30.6 million. Acquired identifiable intangible assets of $9.3 million are being amortized over two to ten years. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||
Note 4. Goodwill and Intangible Assets | |||||||||||||
Goodwill: | |||||||||||||
(in thousands) | |||||||||||||
Balance at October 31, 2011 | $ | 1,289,286 | |||||||||||
Additions | 687,195 | ||||||||||||
Other adjustments(1) | 506 | ||||||||||||
Balance at October 31, 2012 | $ | 1,976,987 | |||||||||||
Additions | — | ||||||||||||
Other adjustments(1) | (1,016 | ) | |||||||||||
Balance at October 31, 2013 | $ | 1,975,971 | |||||||||||
-1 | Adjustments primarily relate to changes in deferred tax estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was still preliminary, and effects of foreign currency fluctuations. | ||||||||||||
Intangible assets as of October 31, 2013 consist of the following: | |||||||||||||
Gross | Accumulated | Net Assets | |||||||||||
Assets | Amortization | ||||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 380,724 | $ | 228,065 | $ | 152,659 | |||||||
Customer relationships | 177,151 | 69,745 | 107,406 | ||||||||||
Contract rights intangible | 140,517 | 78,950 | 61,567 | ||||||||||
Covenants not to compete | 2,530 | 2,480 | 50 | ||||||||||
Trademarks and trade names | 10,891 | 5,459 | 5,432 | ||||||||||
In-process research and development (IPR&D)(1) | 4,298 | — | 4,298 | ||||||||||
Capitalized software development costs | 18,190 | 14,177 | 4,013 | ||||||||||
Total | $ | 734,301 | $ | 398,876 | $ | 335,425 | |||||||
-1 | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. | ||||||||||||
Intangible assets as of October 31, 2012 consist of the following: | |||||||||||||
Gross Assets | Accumulated | Net Assets | |||||||||||
Amortization | |||||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 367,321 | $ | 159,691 | $ | 207,630 | |||||||
Customer relationships | 179,657 | 48,368 | 131,289 | ||||||||||
Contract rights intangible | 142,641 | 43,843 | 98,798 | ||||||||||
Covenants not to compete | 2,530 | 2,354 | 176 | ||||||||||
Trademarks and trade names | 10,900 | 3,793 | 7,107 | ||||||||||
In-process research and development (IPR&D)(1) | 17,696 | — | 17,696 | ||||||||||
Capitalized software development costs | 14,581 | 10,955 | 3,626 | ||||||||||
Total | $ | 735,326 | $ | 269,004 | $ | 466,322 | |||||||
-1 | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. | ||||||||||||
Total amortization expense and estimated useful life ranges related to intangible assets is set forth in the table below: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 68,781 | $ | 57,124 | $ | 44,869 | |||||||
Customer relationships | 21,394 | 17,141 | 13,030 | ||||||||||
Contract rights intangible | 35,538 | 24,113 | 10,279 | ||||||||||
Covenants not to compete | 126 | 248 | 222 | ||||||||||
Trademarks and trade names | 1,663 | 1,233 | 1,020 | ||||||||||
Capitalized software development costs(1) | 3,222 | 2,994 | 2,964 | ||||||||||
Total | $ | 130,724 | $ | 102,853 | $ | 72,384 | |||||||
-1 | Amortization of capitalized software development costs is included in cost of license revenue in the consolidated statements of operations. | ||||||||||||
The following table presents the estimated future amortization of intangible assets: | |||||||||||||
Fiscal Year | (in thousands) | ||||||||||||
2014 | $ | 111,023 | |||||||||||
2015 | 93,400 | ||||||||||||
2016 | 58,742 | ||||||||||||
2017 | 26,012 | ||||||||||||
2018 | 14,414 | ||||||||||||
2019 and thereafter | 27,536 | ||||||||||||
IPR&D(1) | 4,298 | ||||||||||||
Total | $ | 335,425 | |||||||||||
-1 | IPR&D projects are estimated to be completed within two years as of October 31, 2013. Assets are amortized over their useful life upon completion of the project or are written off upon abandonment. |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||
Financial Assets and Liabilities | ' | ||||||||||||||||||||
Note 5. Financial Assets and Liabilities | |||||||||||||||||||||
Cash, Cash Equivalents and Investments. Cash, cash equivalents and investments are detailed as follows: | |||||||||||||||||||||
Cost | Gross | Gross | Gross | Estimated | |||||||||||||||||
Unrealized | Unrealized | Unrealized | Fair Value(1) | ||||||||||||||||||
Gains | Losses | Losses | |||||||||||||||||||
Less Than | 12 Months | ||||||||||||||||||||
12 Months | or Longer | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance at October 31, 2013 | |||||||||||||||||||||
Classified as current assets: | |||||||||||||||||||||
Non-interest bearing cash | $ | 183,292 | $ | — | $ | — | $ | — | $ | 183,292 | |||||||||||
Cash deposits and money market funds | 839,149 | — | — | — | 839,149 | ||||||||||||||||
1,022,441 | — | — | — | 1,022,441 | |||||||||||||||||
Classified as other long-term assets: | |||||||||||||||||||||
Non-marketable equity securities | 11,536 | — | — | — | 11,536 | ||||||||||||||||
Total | $ | 1,033,977 | $ | — | $ | — | $ | — | $ | 1,033,977 | |||||||||||
Cost | Gross | Gross | Gross | Estimated | |||||||||||||||||
Unrealized | Unrealized | Unrealized | Fair Value(1) | ||||||||||||||||||
Gains | Losses | Losses | |||||||||||||||||||
Less Than | 12 Months | ||||||||||||||||||||
12 Months | or Longer | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance at October 31, 2012 | |||||||||||||||||||||
Classified as current assets: | |||||||||||||||||||||
Non-interest bearing cash | $ | 167,161 | $ | — | $ | — | $ | — | $ | 167,161 | |||||||||||
Cash deposits and money market funds | 533,221 | — | — | — | 533,221 | ||||||||||||||||
700,382 | — | — | — | 700,382 | |||||||||||||||||
Classified as other long-term assets: | |||||||||||||||||||||
Non-marketable equity securities | 11,744 | — | — | — | 11,744 | ||||||||||||||||
Total | $ | 712,126 | $ | — | $ | — | $ | — | $ | 712,126 | |||||||||||
-1 | See Note 6. Fair Value Measures for further discussion on fair values of money market funds and non-marketable equity securities. | ||||||||||||||||||||
Non-marketable equity securities. The Company’s strategic investment portfolio consists of non-marketable equity securities in privately held companies. The securities accounted for under cost method investments are reported at cost net of impairment losses. Securities accounted for under equity method investments are recorded at cost plus the proportional share of the issuers’ income or loss, which is recorded in the Company’s other income (expense), net. The cost basis of securities sold is based on the specific identification method. Refer to Note 6. Fair Value Measures. | |||||||||||||||||||||
Derivatives. In accordance with ASC 815, Derivatives and Hedging, the Company recognizes derivative instruments as either assets or liabilities in the consolidated financial statements at fair value and provides qualitative and quantitative disclosures about such derivatives. The Company operates internationally and is exposed to potentially adverse movements in foreign currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately one month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. | |||||||||||||||||||||
The duration of forward contracts ranges from approximately one month to 21 months, the majority of which are short-term. The Company does not use foreign currency forward contracts for speculative or trading purposes. The Company enters into foreign exchange forward contracts with high credit quality financial institutions that are rated ‘A’ or above and to date has not experienced nonperformance by counterparties. Further, the Company anticipates continued performance by all counterparties to such agreements. | |||||||||||||||||||||
The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. | |||||||||||||||||||||
Cash Flow Hedging Activities | |||||||||||||||||||||
Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 21 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to the Company’s foreign currency risk, which can be up to three years. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on the hedged transactions. The effective portion of gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (OCI), in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. We expect a majority of the hedge balance in OCI to be reclassified to the statements of operations within the next twelve months. | |||||||||||||||||||||
Hedging effectiveness is evaluated monthly using spot rates, with any gain or loss caused by hedging ineffectiveness recorded in other income (expense), net. The premium/discount component of the forward contracts is recorded to other income (expense), net, and is not included in evaluating hedging effectiveness. | |||||||||||||||||||||
Non-designated Hedging Activities | |||||||||||||||||||||
The Company’s foreign exchange forward contracts that are used to hedge non-functional currency denominated balance sheet assets and liabilities are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the underlying assets and liabilities, which are also recorded in other income (expense), net. The duration of the forward contracts for hedging the Company’s balance sheet exposure is approximately one month. | |||||||||||||||||||||
The Company also has certain foreign exchange forward contracts for hedging certain international revenues and expenses that are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the foreign currency in operating income. The duration of these forward contracts is usually less than one year. The overall goal of the Company’s hedging program is to minimize the impact of currency fluctuations on its net income over its fiscal year. | |||||||||||||||||||||
The effects on the changes in the fair values of non-designated forward contracts for fiscal years 2013 and 2012 are summarized as follows: | |||||||||||||||||||||
October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Gain (loss) recorded in other income (expense), net | $ | 3,009 | $ | 1,033 | $ | 889 | |||||||||||||||
Foreign currency forward contracts outstanding are as follows: | |||||||||||||||||||||
As of October 31, | As of October 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Total gross notional amount | $ | 746,801 | $ | 618,978 | |||||||||||||||||
Net fair value | $ | 7,199 | $ | 390 | |||||||||||||||||
The notional amounts for derivative instruments provide one measure of the transaction volume outstanding as of October 31, 2013 and October 31, 2012, respectively, and do not represent the amount of the Company’s exposure to market gain or loss. The Company’s exposure to market gain or loss will vary over time as a function of currency exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. | |||||||||||||||||||||
The following represents the balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: | |||||||||||||||||||||
Fair Values of | Fair Values of | ||||||||||||||||||||
derivative instruments | derivative instruments | ||||||||||||||||||||
designated as | not designated as | ||||||||||||||||||||
hedging instruments | hedging instruments | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
As of October 31, 2013 | |||||||||||||||||||||
Other current assets | $ | 12,417 | $ | 20 | |||||||||||||||||
Other current liabilities | $ | 5,103 | $ | 135 | |||||||||||||||||
As of October 31, 2012 | |||||||||||||||||||||
Other current assets | $ | 5,149 | $ | 68 | |||||||||||||||||
Other current liabilities | $ | 4,739 | $ | 88 | |||||||||||||||||
The following table represents the income statement location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax: | |||||||||||||||||||||
Location of gain (loss) | Amount of gain (loss) | Location of gain (loss) | Amount of | ||||||||||||||||||
recognized in OCI on | recognized in OCI on | reclassified from OCI | gain (loss) | ||||||||||||||||||
derivatives | derivatives | reclassified from | |||||||||||||||||||
(effective portion) | OCI | ||||||||||||||||||||
(effective portion) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fiscal year ended October 31, 2013 | |||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | 2,427 | Revenue | $ | 7,457 | |||||||||||||||
Foreign exchange contracts | Operating expenses | 3,680 | Operating expenses | (892 | ) | ||||||||||||||||
Total | $ | 6,107 | $ | 6,565 | |||||||||||||||||
Fiscal year ended October 31, 2012 | |||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | 5,212 | Revenue | $ | (1,868 | ) | ||||||||||||||
Foreign exchange contracts | Operating expenses | (7,640 | ) | Operating expenses | (12,367 | ) | |||||||||||||||
Total | $ | (2,428 | ) | $ | (14,235 | ) | |||||||||||||||
Fiscal year ended October 31, 2011 | |||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | (5,647 | ) | Revenue | $ | (8,561 | ) | |||||||||||||
Foreign exchange contracts | Operating expenses | (3,225 | ) | Operating expenses | 6,572 | ||||||||||||||||
Total | $ | (8,872 | ) | $ | (1,989 | ) | |||||||||||||||
The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense) income, net: | |||||||||||||||||||||
Amount of gain (loss) | Amount of gain (loss) | ||||||||||||||||||||
recognized in income | recognized in income | ||||||||||||||||||||
statement on derivatives | statement on derivatives | ||||||||||||||||||||
(ineffective portion)(1) | (excluded from | ||||||||||||||||||||
effectiveness testing)(2) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fiscal year ended October 31, 2013 | |||||||||||||||||||||
Foreign exchange contracts | $ | 293 | $ | 2,518 | |||||||||||||||||
Fiscal year ended October 31, 2012 | |||||||||||||||||||||
Foreign exchange contracts | $ | 38 | $ | 1,321 | |||||||||||||||||
Fiscal year ended October 31, 2011 | |||||||||||||||||||||
Foreign exchange contracts | $ | 74 | $ | 241 | |||||||||||||||||
-1 | The ineffective portion includes forecast inaccuracies. | ||||||||||||||||||||
-2 | The portion excluded from effectiveness includes the discount earned or premium paid for the contracts. | ||||||||||||||||||||
Other Commitments-Credit and Term Loan Facilities | |||||||||||||||||||||
On February 17, 2012, the Company entered into an agreement with several lenders (the Credit Agreement) providing for (i) a $350.0 million senior unsecured revolving credit facility (the Revolver) and (ii) a $150.0 million senior unsecured term loan facility (the Term Loan). Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due when the Credit Agreement expires in October 2016. The Company can elect to make prepayments on the Term Loan, in whole or in part, without premium or penalty. Subject to obtaining additional commitments from lenders, the principal amount of the loans provided under the Credit Agreement may be increased by the Company by up to an additional $150.0 million through October 13, 2015. The Credit Agreement contains financial covenants requiring the Company to operate within a maximum leverage ratio and maintain specified levels of cash, as well as other non-financial covenants. | |||||||||||||||||||||
As of October 31, 2013, the Company had a $105.0 million outstanding balance under the Term Loan, of which $75.0 million is classified as long-term and no outstanding balance under the Revolver. As of October 31, 2012, the Company had a $135.0 million outstanding balance under the Term Loan, of which $105.0 million is classified as long-term and no outstanding balance under the Revolver. Borrowings bear interest at a floating rate based on a margin over the Company’s choice of market observable base rates as defined in the Credit Agreement. At October 31, 2013, borrowings under the Term Loan bore interest at LIBOR + 1.125% and the applicable interest rate for the Revolver was LIBOR + 0.975%. In addition, commitment fees are payable on the Revolver at rates between 0.150% and 0.300% per year based on the Company’s leverage ratio on the daily amount of the revolving commitment. | |||||||||||||||||||||
These borrowings under the Credit Agreement have a variable interest rate structure and are classified within Level 2 of the fair value hierarchy. The carrying amount of the short-term and long-term debt approximates the estimated fair value. | |||||||||||||||||||||
Fair_Value_Measures
Fair Value Measures | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Fair Value Measures | ' | ||||||||||||||||
Note 6. Fair Value Measures | |||||||||||||||||
ASC 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes guidelines and enhances disclosure requirements for fair value measurements. | |||||||||||||||||
The accounting guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance also establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement: | |||||||||||||||||
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical instruments in active markets; | |||||||||||||||||
Level 2—Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and | |||||||||||||||||
Level 3—Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||||||
On a recurring basis, the Company measures the fair value of certain of its assets and liabilities, which include cash equivalents, non-qualified deferred compensation plan assets, foreign currency derivative contracts, and contingent consideration associated with business combinations. | |||||||||||||||||
The Company’s cash equivalents are classified within Level 1 because they are valued using quoted market prices in an active market or alternative independent pricing sources and models utilizing market observable inputs. | |||||||||||||||||
The Company’s non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets and are therefore classified within Level 1. | |||||||||||||||||
The Company’s foreign currency derivative contracts are classified within Level 2 because these contracts are not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments. | |||||||||||||||||
The Company’s borrowings under its credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Refer to Note 5. Financial Assets and Liabilities. | |||||||||||||||||
The Company’s liabilities for contingent consideration are classified within Level 3 because these valuations are based on management assumptions including discount rates and estimated probabilities of achievement of certain milestones which are unobservable in the market. The Company did not record any significant changes during fiscal 2013. The Company recorded a reduction of $3.6 million during fiscal 2012, in research and development expenses due to the change in fair value of the liability for contingent consideration. As of October 31, 2013 and October 31, 2012, the fair value of the liability for contingent consideration was estimated at $0.5 million and $0.8 million, respectively. | |||||||||||||||||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2013: | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Description | Total | Quoted Prices in Active | Significant Other | Significant | |||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 552,470 | $ | 552,470 | $ | — | $ | — | |||||||||
Prepaid and other current assets: | |||||||||||||||||
Foreign currency derivative contracts | 12,437 | — | 12,437 | — | |||||||||||||
Other long-term assets: | |||||||||||||||||
Deferred compensation plan assets | 126,621 | 126,621 | — | — | |||||||||||||
Total assets | $ | 691,528 | $ | 679,091 | $ | 12,437 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||
Foreign currency derivative contracts | $ | 5,238 | $ | — | $ | 5,238 | $ | — | |||||||||
Contingent consideration | 493 | — | — | 493 | |||||||||||||
Total liabilities | $ | 5,731 | $ | — | $ | 5,238 | $ | 493 | |||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2012: | |||||||||||||||||
Description | Total | Fair Value Measurement Using | |||||||||||||||
Quoted Prices in Active | Significant Other | Significant | |||||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 239,770 | $ | 239,770 | $ | — | $ | — | |||||||||
Prepaid and other current assets: | |||||||||||||||||
Foreign currency derivative contracts | 5,217 | — | 5,217 | — | |||||||||||||
Other long-term assets: | |||||||||||||||||
Deferred compensation plan assets | 100,645 | 100,645 | — | — | |||||||||||||
Total assets | $ | 345,632 | $ | 340,415 | $ | 5,217 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||
Foreign currency derivative contracts | $ | 4,827 | $ | — | $ | 4,827 | $ | — | |||||||||
Contingent consideration | 469 | — | — | 469 | |||||||||||||
Other long-term liabilities: | |||||||||||||||||
Contingent consideration | 355 | — | — | 355 | |||||||||||||
Total liabilities | $ | 5,651 | $ | — | $ | 4,827 | $ | 824 | |||||||||
Assets/Liabilities Measured at Fair Value on a Non-Recurring Basis | |||||||||||||||||
Non-Marketable Equity Securities | |||||||||||||||||
Equity investments in privately-held companies, also called non-marketable equity securities, are accounted for using either the cost or equity method of accounting. | |||||||||||||||||
These equity investments are classified within Level 3 as they are valued using significant unobservable inputs or data in an inactive market, and the valuation requires management judgment due to the absence of market price and inherent lack of liquidity. The non-marketable equity securities are measured and recorded at fair value when an event or circumstance which impacts the fair value of these securities indicates an other-than-temporary decline in value has occurred. The Company monitors these investments and generally uses the income approach to assess impairments based primarily on the financial conditions of these companies. | |||||||||||||||||
The Company did not recognize any impairment during fiscal 2013. The Company recorded $0.5 million and $1.0 million of other-than-temporary impairments during fiscal 2012 and 2011, respectively. | |||||||||||||||||
The following tables present the non-marketable equity securities that were measured and recorded at fair value within other long-term assets and the loss recorded in other income (expense), net during the following periods: | |||||||||||||||||
Balance as of | Significant | Total | |||||||||||||||
October 31, 2012 | Unobservable | (losses) for | |||||||||||||||
Inputs | Fiscal 2012 | ||||||||||||||||
(Level 3) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Non-marketable equity securities | $ | — | $ | — | $ | (452 | ) | ||||||||||
Balance as of | Significant | Total | |||||||||||||||
October 31, 2011 | Unobservable | (losses) for | |||||||||||||||
Inputs | Fiscal 2011 | ||||||||||||||||
(Level 3) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Non-marketable equity securities | $ | 92 | $ | 92 | $ | -999 | |||||||||||
As of October 31, 2013, the Company’s non-marketable securities were $11.5 million of which $6.9 million and $4.6 million were accounted for under the cost method and equity method, respectively. As of October 31, 2012, the Company’s non-marketable securities were $11.7 million, of which $7.0 million and $4.7 million were accounted for under the cost method and equity method, respectively. Subsequent to the fiscal 2013 year-end, in November 2013, the Company received a cash distribution from the liquidation of one of its investments and will recognize a gain of $6.4 million in other income (expense), net, in the first quarter of fiscal 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Commitments and Contingencies | ' | ||||||||||||
Note 7. Commitments and Contingencies | |||||||||||||
Lease Commitments | |||||||||||||
The Company leases certain of its domestic and foreign facilities and certain office equipment under non-cancelable lease agreements. The lease agreements generally require the Company to pay property taxes, insurance, maintenance and repair costs. Rent expenses were $64.4 million, $62.0 million and $58.1 million in fiscal 2013, 2012 and 2011, respectively. The Company charges operating lease payments to expense using the straight-line method. The Company subleases portions of its facilities and records sublease payments as a reduction of rent expense. | |||||||||||||
On October 15, 2011, the Company agreed to lease two office buildings to be constructed in Mountain View, California. Once construction is complete, the buildings together will provide approximately 341,000 square feet. The lease of such premises begins upon the later of March 1, 2015 or six months after construction is substantially completed, and expires approximately 15 years thereafter and can be extended for an additional 19 years after such initial expiration. The Company may terminate the lease if the lessor fails to substantially complete construction of the buildings by March 1, 2015. | |||||||||||||
Anticipated future minimum lease payments on all non-cancelable operating leases with a term in excess of one year, net of sublease income, as of October 31, 2013 are as follows: | |||||||||||||
Minimum | Sublease Income | Net | |||||||||||
Lease | |||||||||||||
Payments | |||||||||||||
(in thousands) | |||||||||||||
Fiscal Year | |||||||||||||
2014 | $ | 46,492 | $ | 877 | $ | 45,615 | |||||||
2015 | 35,951 | 1,428 | 34,523 | ||||||||||
2016 | 35,489 | 1,434 | 34,055 | ||||||||||
2017 | 32,373 | 1,451 | 30,922 | ||||||||||
2018 | 29,502 | 1,494 | 28,008 | ||||||||||
Thereafter | 222,943 | 7,004 | 215,939 | ||||||||||
Total | $ | 402,750 | $ | 13,688 | $ | 389,062 | |||||||
Legal Proceedings | |||||||||||||
The Company is subject to routine legal proceedings, as well as demands, claims and threatened litigation, which arise in the normal course of its business. The ultimate outcome of any litigation is uncertain and unfavorable outcomes could have a negative impact on the Company’s financial position and results of operations. The Company reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount is estimable, the Company accrues a liability for the estimated loss. The Company has determined that no disclosure of estimated loss is required for a claim against the Company because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. | |||||||||||||
On December 5, 2011, plaintiff Dynetix Design Solutions, Inc. (Dynetix) filed a patent infringement lawsuit against the Company in federal district court in the Northern District of California, alleging, among other things, that our VCS functional verification tool, and more specifically our VCS multicore technology, infringed Dynetix’s United States Patent No. 6,466,898. The lawsuit seeks, among other things, compensatory damages and a permanent injunction. The Company asserted declaratory relief counterclaims and patent infringement counterclaims against Dynetix. As a result of certain pre-trial rulings in the Company’s favor, the parties stipulated to entry of judgment in the Company’s favor on Dynetix’s patent infringement claim and on the Company’s counterclaim for a declaration of non-infringement. The court entered the stipulated judgment on September 16, 2013. Dynetix has appealed from the judgment. | |||||||||||||
The Company acquired Emulation & Verification Engineering S.A. (EVE) on October 4, 2012. At the time of the acquisition, EVE and EVE-USA, Inc. (collectively, the EVE Parties) were defendants in three patent infringement lawsuits filed by Mentor Graphics Corporation (Mentor). Mentor filed suit against the EVE Parties in federal district court in the District of Oregon on August 16, 2010 alleging that EVE’s ZeBu products infringe Mentor’s United States Patent No. 6,876,962. Mentor filed an additional suit in federal district court in the District of Oregon on August 17, 2012 alleging that EVE’s ZeBu products infringe Mentor’s United States Patent No. 6,947,882. Both cases seek compensatory damages and a permanent injunction. Mentor also filed a patent infringement lawsuit against Nihon EVE K.K. in Tokyo District Court in 2010 alleging that EVE’s ZeBu series of products infringes Mentor’s Japanese Patent No. P3,588,324. This case seeks compensatory damages, a permanent injunction and destruction of inventory. | |||||||||||||
On September 27, 2012, the Company and the EVE Parties filed an action for declaratory relief against Mentor in federal district court in the Northern District of California, seeking a determination that Mentor’s United States Patents Nos. 6,009,531; 5,649,176 and 6,240,376, which were the subject of a patent infringement lawsuit filed by Mentor against EVE in 2006 and settled in the same year, are invalid and not infringed by EVE’s products, and that Mentor is without right or authority to threaten or maintain suit against the plaintiffs on such patents. Mentor has asserted patent infringement counterclaims in this action based on the same three patents and is seeking compensatory damages and a permanent injunction. In April 2013, this action was transferred to the federal district court in Oregon and consolidated with the two Mentor lawsuits in that district (the Oregon Action). | |||||||||||||
In the Oregon Action, the Company and the EVE Parties have further asserted patent infringement counterclaims against Mentor based on the Company’s United States Patents Nos. 6,132,109 and 7,069,526, seeking compensatory damages and a permanent injunction. | |||||||||||||
On September 26, 2012, the Company filed two inter partes review requests with the U.S. Patent and Trademark Office (the PTO) challenging the validity of Mentor’s ‘376 and ‘882 patents. The PTO granted review of the ‘376 patent and denied review of the ‘882 patent. | |||||||||||||
On December 21, 2012, the Company filed an action for patent infringement against Mentor in federal district court in the Northern District of California, alleging that Mentor’s Veloce products infringe the Company’s United States Patents Nos. 5,748,488, 5,530,841, 5,680,318 and 6,836,420. This case seeks compensatory damages and a permanent injunction. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Note 8. Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Cumulative currency translation adjustments | $ | (26,848 | ) | $ | (14,123 | ) | |||||||
Unrealized gain (loss) on derivative instruments, net of taxes | (1,847 | ) | (1,338 | ) | |||||||||
Total accumulated other comprehensive income (loss) | $ | (28,695 | ) | $ | (15,461 | ) | |||||||
The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Reclassifications from accumulated other comprehensive income (loss) into consolidated statement of operations: | |||||||||||||
Gain (loss) on cash flow hedges, net of taxes | |||||||||||||
Revenues | $ | 7,457 | $ | (1,868 | ) | $ | (8,561 | ) | |||||
Operating expenses | (892 | ) | (12,367 | ) | 6,572 | ||||||||
Total reclassifications into net income | $ | 6,565 | $ | (14,235 | ) | $ | (1,989 | ) | |||||
Amounts reclassified in fiscal 2013, 2012 and 2011 consisted of gains (losses) from the Company’s cash flow hedging activities. Refer to Note 5. Financial Assets and Liabilities. |
Stock_Repurchase_Program
Stock Repurchase Program | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Stock Repurchase Program | ' | ||||||||||||
Note 9. Stock Repurchase Program | |||||||||||||
The Company’s Board of Directors (Board) approved a stock repurchase program in 2002 pursuant to which the Company was authorized to purchase up to $500.0 million of its common stock, and has periodically replenished the stock repurchase program to such amount. The Company repurchases shares to offset dilution caused by ongoing stock issuances from existing equity plans for equity compensation awards and issuances related to acquisitions, and when management believes it is a good use of cash. Repurchases are transacted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934 (Exchange Act) and may be made through any means including, but not limited to, open market purchases, plans executed under Rule 10b5-1(c) of the Exchange Act and structured transactions. As of October 31, 2013, $127.4 million remained available for further repurchases under the program. The Board replenished the stock repurchase program up to $500.0 million on December 3, 2013. | |||||||||||||
The following table summarizes stock repurchase activities as well as the reissuance of treasury stock for employee stock compensation purposes: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands, except per share price) | |||||||||||||
Shares repurchased | 3,996 | 2,474 | 15,144 | ||||||||||
Average purchase price | $ | 36.29 | $ | 29.64 | $ | 26.53 | |||||||
Aggregate purchase price(1) | $ | 145,016 | $ | 73,335 | $ | 401,836 | |||||||
Reissuance of treasury stock | 7,266 | 10,065 | 9,973 | ||||||||||
-1 | Fiscal 2011 does not include a $33.3 million equity forward contract related to an accelerated share repurchase agreement entered into by the Company in September 2011. The equity forward contract was settled with 1,105,457 shares of the Company’s common stock during the first quarter of fiscal 2012. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||
Note 10. Employee Benefit Plans | |||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||
Under the Company’s Employee Stock Purchase Plan (ESPP), employees are granted the right to purchase shares of common stock at a price per share that is 85% of the lesser of the fair market value of the shares at (1) the beginning of a rolling two-year offering period or (2) the end of each semi-annual purchase period, subject to a plan limit on the number of shares that may be purchased in a purchase period. | |||||||||||||||||||||
On April 3, 2012, the Company’s stockholders approved an amendment to the ESPP to increase the number of shares of common stock authorized for issuance under the plan by 5.0 million shares. During fiscal 2013, 2012 and 2011, the Company issued 2.1 million, 2.0 million, and 2.2 million shares, respectively, under the ESPP at average per share prices of $22.75, $21.65 and $17.95, respectively. As of October 31, 2013, 3.7 million shares of common stock were reserved for future issuance under the ESPP. | |||||||||||||||||||||
Equity Compensation Plans | |||||||||||||||||||||
2006 Employee Equity Incentive Plan. On April 25, 2006, the Company’s stockholders approved the 2006 Employee Equity Incentive Plan (2006 Employee Plan), which provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights and other forms of equity compensation, including performance stock awards and performance cash awards, as determined by the plan administrator. The terms and conditions of each type of award are set forth in the 2006 Employee Plan. Options granted under this plan have a contractual term of seven years and generally vest over four years. On April 3, 2013, the Company’s stockholders approved an amendment to increase the number of shares of common stock reserved for future issuance under the 2006 Employee Plan by 5.0 million shares. As of October 31, 2013, an aggregate of 7.7 million stock options and 4.0 million restricted stock units were outstanding, and 8.5 million shares were available for future issuance under the 2006 Employee Plan. | |||||||||||||||||||||
As a result of the stockholders’ approval of the 2006 Employee Plan in 2006, the Company’s 1992 Stock Option Plan, 1998 Non-Statutory Stock Option Plan and 2005 Assumed Stock Option Plan (collectively, the Prior Plans) have been terminated for future grants. Should any options currently outstanding under such Prior Plans and plans assumed by the Company in acquisitions prior to fiscal 2006 (options to purchase 0.2 million shares are outstanding under such plans as of October 31, 2013) be cancelled or expire unexercised, the shares underlying such options shall become available for future grant under the 2006 Employee Plan. | |||||||||||||||||||||
2005 Non-Employee Directors Equity Incentive Plan. On May 23, 2005, the Company’s stockholders approved the 2005 Non-Employee Directors Equity Incentive Plan (the 2005 Directors Plan). The 2005 Directors Plan provides for annual equity awards to non-employee directors in the form of stock options, restricted stock or a combination thereof. The Company’s stockholders have approved an aggregate of 0.8 million shares of common stock reserved under the 2005 Directors Plan. | |||||||||||||||||||||
As of October 31, 2013, the Company has issued an aggregate of 298,947 shares of restricted stock awards with an aggregate grant date fair value of approximately $7.1 million under the 2005 Directors Plan. Restricted stock awards vest over a period of three years. In addition, the Company granted options to purchase 123,649 shares of common stock, which vest over a period of three to four years, with an aggregate grant date fair value of $3.3 million to non-employee directors during fiscal 2007 and fiscal 2011. As of October 31, 2013, 52,595 shares of restricted stock and 82,898 stock options were outstanding and a total of 340,747 shares of common stock were reserved for future grant under the 2005 Directors Plan. | |||||||||||||||||||||
1994 Non-Employee Directors Stock Option Plan. No stock options remained outstanding under the Company’s 1994 Non-Employee Directors Stock Option Plan as of October 31, 2013, which expired as to future grants in October 2004. | |||||||||||||||||||||
Other Assumed Stock Plans through Acquisitions. In connection with the Company’s acquisitions in fiscal 2008, fiscal 2010, and fiscal 2012, the Company assumed certain outstanding share-based awards of acquired companies. If these assumed equity awards are canceled, forfeited or expire unexercised, the underlying shares do not become available for future grant. As of October 31, 2013, 0.5 million shares of the Company’s common stock remained subject to such outstanding assumed equity awards. | |||||||||||||||||||||
Restricted Stock Units. Since fiscal 2007, restricted stock units are granted as part of the Company’s new hire and annual incentive compensation program under the 2006 Employee Plan. Restricted stock units are valued based on the closing price of the Company’s common stock on the grant date. In general, for non-executive officers, restricted stock units vest over three to four years and are subject to the employees’ continuing service to the Company. For each restricted stock unit granted under the 2006 Employee Plan, a share reserve ratio is applied for the purpose of determining the remaining number of shares reserved for future grants under the plan. Prior to the second quarter of fiscal 2009, the share reserve ratio was 1.36 for each restricted stock unit granted, and an equivalent of 1.36 shares was deducted from the share reserve for each restricted stock unit issued. Likewise, each forfeited restricted stock unit increased the number of shares available for issuance by the applicable rate at the time of forfeiture. In the second quarter of fiscal 2010, the Company’s stockholders approved an amendment of the 2006 Employee Plan to prospectively change the reserve ratio from 1.36 to 2.18. On March 24, 2011, the stockholders approved an amendment of the 2006 Employee Plan to prospectively change the reserve ratio from 2.18 to 1.25. On April 3, 2012, the stockholders approved amending the share reserve ratio from 1.25 to 1.50. | |||||||||||||||||||||
The following table contains information concerning activities related to restricted stock units: | |||||||||||||||||||||
Restricted | Weighted Average | Weighted | Aggregate | ||||||||||||||||||
Stock Units | Grant Date | Average | Fair | ||||||||||||||||||
Fair Value | Remaining | Value | |||||||||||||||||||
Contractual | |||||||||||||||||||||
Life (In Years) | |||||||||||||||||||||
(in thousands, except per share and life amounts) | |||||||||||||||||||||
Balance at October 31, 2010 | 3,730 | $ | 22.71 | 1.41 | |||||||||||||||||
Granted | 1,483 | $ | 26.89 | ||||||||||||||||||
Vested(1) | (1,522 | ) | $ | 23.11 | $ | 35,164 | |||||||||||||||
Forfeited | (237 | ) | $ | 23.49 | |||||||||||||||||
Balance at October 31, 2011 | 3,454 | $ | 24.28 | 1.48 | |||||||||||||||||
Granted | 1,813 | $ | 29.52 | ||||||||||||||||||
Assumed(2) | 353 | $ | 30.33 | ||||||||||||||||||
Vested(1) | (1,508 | ) | $ | 24.14 | $ | 36,402 | |||||||||||||||
Forfeited | (192 | ) | $ | 26.7 | |||||||||||||||||
Balance at October 31, 2012 | 3,920 | $ | 27.18 | 1.52 | |||||||||||||||||
Granted | 1,680 | $ | 35.27 | ||||||||||||||||||
Vested(1) | (1,476 | ) | $ | 35.4 | $ | 52,234 | |||||||||||||||
Forfeited | (141 | ) | $ | 28.36 | |||||||||||||||||
Balance at October 31, 2013 | 3,983 | $ | 27.51 | 1.51 | |||||||||||||||||
-1 | The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements. | ||||||||||||||||||||
-2 | The Company assumed certain restricted stock units outstanding under various plans through acquisitions. | ||||||||||||||||||||
The following table contains additional information concerning activities related to stock options and restricted stock units under all equity plans, other than shares available for grant under the 2005 Directors Plan: | |||||||||||||||||||||
Available for | Options(2) | ||||||||||||||||||||
Grant(3) | Options | Weighted- | Weighted- | Aggregate | |||||||||||||||||
Outstanding | Average Exercise | Average | Intrinsic | ||||||||||||||||||
Price per Share | Remaining | Value | |||||||||||||||||||
Contractual | |||||||||||||||||||||
Life (In Years) | |||||||||||||||||||||
(in thousands, except per share and life amounts) | |||||||||||||||||||||
Balance at October 31, 2010 | 2,606 | 21,184 | $ | 21.83 | 2.8 | $ | 90,013 | ||||||||||||||
Options Granted | (2,228 | ) | 2,270 | $ | 26.07 | ||||||||||||||||
Options Exercised | (6,800 | ) | $ | 20.53 | |||||||||||||||||
Options Canceled/forfeited/expired | 550 | (694 | ) | $ | 27.24 | ||||||||||||||||
Restricted stock units granted(1) | (2,182 | ) | |||||||||||||||||||
Restricted stock units forfeited(1) | 165 | ||||||||||||||||||||
Additional shares reserved | 7,000 | ||||||||||||||||||||
Balance at October 31, 2011 | 5,911 | 15,960 | $ | 22.76 | 2.97 | $ | 74,068 | ||||||||||||||
Options Granted | (1,719 | ) | 1,719 | $ | 28.86 | ||||||||||||||||
Options Assumed(2) | 382 | $ | 19.15 | ||||||||||||||||||
Options Exercised | (7,103 | ) | $ | 21.09 | |||||||||||||||||
Options Canceled/forfeited/expired | 631 | (739 | ) | $ | 25.07 | ||||||||||||||||
Restricted stock units granted(1) | (2,638 | ) | |||||||||||||||||||
Restricted stock units forfeited(1) | 167 | ||||||||||||||||||||
Additional shares reserved | 5,000 | ||||||||||||||||||||
Balance at October 31, 2012 | 7,352 | 10,219 | $ | 24.64 | 3.71 | $ | 80,950 | ||||||||||||||
Options Granted | (1,704 | ) | 1,704 | $ | 34.1 | ||||||||||||||||
Options Assumed(2) | 158 | $ | 23.6 | ||||||||||||||||||
Options Exercised | (4,173 | ) | $ | 24.34 | |||||||||||||||||
Options Canceled/forfeited/expired | 159 | (182 | ) | $ | 24.17 | ||||||||||||||||
Restricted stock units granted(1) | (2,519 | ) | |||||||||||||||||||
Restricted stock units forfeited(1) | 184 | ||||||||||||||||||||
Additional shares reserved | 5,000 | ||||||||||||||||||||
Balance at October 31, 2013 | 8,472 | 7,726 | $ | 26.87 | 4.3 | $ | 71,700 | ||||||||||||||
Vested and expected to vest as of October 31, 2013 | 7,653 | $ | 26.83 | 4.28 | $ | 71,343 | |||||||||||||||
Exercisable at October 31, 2013 | 3,940 | $ | 24.12 | 3.26 | $ | 47,405 | |||||||||||||||
-1 | These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above. | ||||||||||||||||||||
-2 | The Company assumed options and stock appreciation rights (SARs) outstanding under various plans through acquisitions. | ||||||||||||||||||||
-3 | Excluding shares reserved for future issuance under the 2005 Directors Plan. | ||||||||||||||||||||
The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value based on stock options with an exercise price less than the Company’s closing stock price of $36.15 as of October 31, 2013. The pretax intrinsic value of options exercised and their average exercise prices were: | |||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands, except per share price) | |||||||||||||||||||||
Intrinsic value | $ | 46,592 | $ | 63,048 | $ | 42,388 | |||||||||||||||
Average exercise price per share | $ | 24.34 | $ | 21.09 | $ | 20.53 | |||||||||||||||
Restricted stock award activities during fiscal 2013 under the 2005 Directors Plan are summarized as follows: | |||||||||||||||||||||
Restricted | Weighted-Average | ||||||||||||||||||||
Shares | Grant Date Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Unvested at October 31, 2012 | 57 | $ | 28.28 | ||||||||||||||||||
Granted | 25 | $ | 35.4 | ||||||||||||||||||
Vested | (29 | ) | $ | 26.77 | |||||||||||||||||
Forfeited | — | $ | — | ||||||||||||||||||
Unvested at October 31, 2013 | 53 | $ | 32.48 | ||||||||||||||||||
Valuation and Expense of Stock Compensation. The Company estimates the fair value of stock based awards in the form of stock options, employee stock purchases under employee stock purchase plans, restricted stock, and restricted stock units on the grant date. The value of awards expected to vest is recognized as expense over the applicable service periods. The Company uses the straight-line attribution method to recognize stock compensation costs over the service period of the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options, stock appreciation rights and employee stock purchase plans awards under ASC 718, Compensation—Stock Compensation. The Black-Scholes option-pricing model incorporates various subjective assumptions including expected volatility, expected term and interest rates. The expected volatility for both stock options and stock purchase rights under the ESPP is estimated by a combination of implied volatility for publicly traded options of the Company’s common stock with a term of six months or longer and the historical stock price volatility over the estimated expected term of the Company’s stock-based awards. The expected term of the Company’s stock-based awards is based on historical experience. | |||||||||||||||||||||
The assumptions presented in the following table were used to estimate the fair value of stock options and employee stock purchase rights granted under the Company’s stock plans or stock plans assumed from acquisitions: | |||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Stock Options | |||||||||||||||||||||
Expected life (in years) | 4.7 | 1.0 - 4.9 | 4.8 | ||||||||||||||||||
Risk-free interest rate | 0.62% - 1.66% | 0.22% - 0.95% | 0.96% - 2.28% | ||||||||||||||||||
Volatility | 20.61% - 26.47% | 22.65% - 29.76% | 26.96% - 30.30% | ||||||||||||||||||
Weighted average estimated fair value | $7.29 | $8.46 | $7.04 | ||||||||||||||||||
ESPP | |||||||||||||||||||||
Expected life (in years) | 0.5 - 2.0 | 0.5 - 2.0 | 0.5 - 2.0 | ||||||||||||||||||
Risk-free interest rate | 0.10% - 0.43% | 0.16% - 0.34% | 0.09% - 0.68% | ||||||||||||||||||
Volatility | 17.12% - 21.75% | 21.95% - 23.20% | 19.48% - 27.08% | ||||||||||||||||||
Weighted average estimated fair value | $8.19 | $8.02 | $6.82 | ||||||||||||||||||
The following table presents stock compensation expense for fiscal 2013, 2012 and 2011, respectively: | |||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of license | $ | 6,597 | $ | 6,927 | $ | 5,658 | |||||||||||||||
Cost of maintenance and service | 1,628 | 1,727 | 1,416 | ||||||||||||||||||
Research and development expense | 32,423 | 32,767 | 26,747 | ||||||||||||||||||
Sales and marketing expense | 13,983 | 13,566 | 11,068 | ||||||||||||||||||
General and administrative expense | 12,880 | 16,427 | 11,525 | ||||||||||||||||||
Stock compensation expense before taxes | 67,511 | 71,414 | 56,414 | ||||||||||||||||||
Income tax benefit | (16,446 | ) | (15,989 | ) | (14,798 | ) | |||||||||||||||
Stock compensation expense after taxes | $ | 51,065 | $ | 55,425 | $ | 41,616 | |||||||||||||||
As of October 31, 2013, the Company had $121.1 million of total unrecognized stock compensation expense relating to options and restricted stock units and awards, which is expected to be recognized over a weighted average period of 2.5 years. | |||||||||||||||||||||
The cash flows resulting from the tax benefits for tax deductions in excess of the compensation expense recorded for the options (excess tax benefits) are classified as cash flows from financing activities. The Company has not recorded any excess tax benefits in fiscal periods 2013, 2012 and 2011. | |||||||||||||||||||||
Deferred Compensation Plan. The Company maintains the Synopsys Deferred Compensation Plan (the Deferred Plan), which permits eligible employees to defer up to 50% of their annual cash base compensation and up to 100% of their eligible cash variable compensation. Amounts may be withdrawn from the Deferred Plan pursuant to elections made by the employees in accordance with the terms of the plan. Since the inception of the Deferred Plan, the Company has not made any matching or discretionary contributions to the Deferred Plan. There are no Deferred Plan provisions that provide for any guarantees or minimum return on investments. Undistributed amounts under the Deferred Plan are subject to the claims of the Company’s creditors. The securities held by the Deferred Plan are classified as trading securities. | |||||||||||||||||||||
Deferred Plan Assets and Liabilities are as follows: | |||||||||||||||||||||
As of October 31, | As of October 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Plan assets recorded in other long-term assets | $ | 126,621 | $ | 100,645 | |||||||||||||||||
Plan liabilities recorded in other long-term liabilities(1) | $ | 126,621 | $ | 100,645 | |||||||||||||||||
-1 | For undistributed deferred compensation due to participants. | ||||||||||||||||||||
Income or loss from the change in fair value of the Deferred Plan assets is recorded in other income (expense), net. The increase or decrease in the fair value of the undistributed Deferred Plan obligation is recorded in total cost of revenue and operating expense. The following table summarizes the impact of the Deferred Plan: | |||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Increase (reduction) to cost of revenue and operating expense | $ | 18,453 | $ | 7,498 | $ | 2,449 | |||||||||||||||
Other income (expense), net | 18,453 | 7,498 | 2,449 | ||||||||||||||||||
Net increase (decrease) to net income | $ | — | $ | — | $ | — | |||||||||||||||
Other Retirement Plans. The Company sponsors various retirement plans for its eligible U.S. and non-U.S. employees. Total contributions to these plans were $21.3 million, $23.2 million and $21.4 million in fiscal 2013, 2012 and 2011, respectively. For employees in the United States and Canada, the Company matches pretax employee contributions up to a maximum of US $1,500 and Canadian $4,000, respectively, per participant per year. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Note 11. Income Taxes | |||||||||||||
The domestic and foreign components of the Company’s total income before provision for income taxes are as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
United States | $ | 61,818 | $ | 39,855 | $ | 40,434 | |||||||
Foreign | 213,848 | 161,280 | 178,679 | ||||||||||
$ | 275,666 | $ | 201,135 | $ | 219,113 | ||||||||
The components of the (benefit) provision for income taxes were as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 11,692 | $ | (12,443 | ) | $ | (6,436 | ) | |||||
State | (5,949 | ) | (547 | ) | (2,197 | ) | |||||||
Foreign | 29,428 | 6,826 | 474 | ||||||||||
35,171 | (6,164 | ) | (8,159 | ) | |||||||||
Deferred: | |||||||||||||
Federal | 4,969 | 22,506 | (7,160 | ) | |||||||||
State | 933 | 14 | (2,456 | ) | |||||||||
Foreign | (13,207 | ) | 2,377 | 15,524 | |||||||||
(7,305 | ) | 24,897 | 5,908 | ||||||||||
Provision (Benefit) for income taxes | $ | 27,866 | $ | 18,733 | $ | (2,251 | ) | ||||||
The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Statutory federal tax | $ | 96,483 | $ | 70,397 | $ | 76,689 | |||||||
State tax (benefit), net of federal effect | (2,697 | ) | 1,078 | (4,988 | ) | ||||||||
Tax credits(1) | (24,972 | ) | (4,289 | ) | (19,042 | ) | |||||||
Tax on foreign earnings less than U.S. statutory tax | (36,670 | ) | (21,288 | ) | (28,968 | ) | |||||||
Deferred tax reversal resulting from merger of foreign affiliate | (6,808 | ) | — | — | |||||||||
Tax settlements | (1,130 | ) | (36,882 | ) | (32,782 | ) | |||||||
Stock based compensation | 4,671 | 9,016 | 7,817 | ||||||||||
Changes in valuation allowance | (776 | ) | 10 | 49 | |||||||||
Other | (235 | ) | 691 | (1,026 | ) | ||||||||
$ | 27,866 | $ | 18,733 | $ | (2,251 | ) | |||||||
-1 | As a result of the reinstatement of the federal research and development tax credit in fiscal year 2013, the Company reflected a benefit of approximately $19 million in the above amount for the period January 1, 2012 through October 31, 2013. The federal research tax credit is scheduled to expire on December 31, 2013. | ||||||||||||
The significant components of deferred tax assets and liabilities were as follows: | |||||||||||||
October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Net deferred tax assets: | |||||||||||||
Deferred tax assets: | |||||||||||||
Accruals and reserves | $ | 35,548 | $ | 30,317 | |||||||||
Deferred revenue | 36,551 | 46,247 | |||||||||||
Deferred compensation | 45,662 | 39,186 | |||||||||||
Capitalized costs | 84,390 | 94,031 | |||||||||||
Capitalized research and development costs | 36,650 | 48,059 | |||||||||||
Stock compensation | 16,790 | 21,229 | |||||||||||
Tax loss carryovers | 63,869 | 73,492 | |||||||||||
Foreign tax credit carryovers | 3,532 | 10,766 | |||||||||||
Research and other tax credit carryovers | 108,044 | 88,973 | |||||||||||
Other | 3,736 | 2,449 | |||||||||||
Gross deferred tax assets | 434,772 | 454,749 | |||||||||||
Valuation allowance | (32,945 | ) | (26,259 | ) | |||||||||
Total deferred tax assets | 401,827 | 428,490 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | 82,662 | 116,639 | |||||||||||
Undistributed earnings of foreign subsidiaries | 11,982 | 831 | |||||||||||
Total deferred tax liabilities | 94,644 | 117,470 | |||||||||||
Net deferred tax assets | $ | 307,183 | $ | 311,020 | |||||||||
The valuation allowance increased by $6.7 million, related principally to state research credits. It is more likely than not that the results of future operations will generate sufficient taxable income to realize the remaining deferred tax assets. | |||||||||||||
The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities: | |||||||||||||
Carryforward | Amount | Expiration | |||||||||||
Date | |||||||||||||
(in thousands) | |||||||||||||
Federal net operating loss carryforward | $ | 137,576 | 2018-2030 | ||||||||||
Federal research credit carryforward | 117,257 | 2018-2033 | |||||||||||
Foreign tax credit carryforward | 6,654 | 2018-2021 | |||||||||||
California research credit carryforward | 112,167 | Indefinite | |||||||||||
Other state research credit carryforward | 8,079 | 2014-2032 | |||||||||||
State net operating loss carryforward | 164,385 | 2014-2031 | |||||||||||
The federal and state net operating loss carryforward is from acquired companies and the annual use of such loss is subject to significant limitations under Internal Revenue Code Section 382. Foreign tax credits may only be used to offset tax attributable to foreign source income. | |||||||||||||
The Company has unrecognized deferred tax assets of approximately $60.7 million as of October 31, 2013 attributable to excess tax deductions related to stock options, the benefit of which will be credited to equity when realized. | |||||||||||||
The Company has not provided taxes for undistributed earnings of its foreign subsidiaries except to the extent that the Company does not plan to reinvest such earnings indefinitely outside the United States. If the cumulative foreign earnings exceed the amount the Company intends to reinvest in foreign countries in the future, the Company would provide for taxes on such excess amount. As of October 31, 2013, there were approximately $765.2 million of earnings upon which U.S. income taxes of approximately $168.8 million have not been provided for. | |||||||||||||
The gross unrecognized tax benefits increased by approximately $8.1 million during fiscal 2013 resulting in gross unrecognized tax benefits of $117.8 million as of October 31, 2013. A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows: | |||||||||||||
As of October 31, | As of October 31, | ||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Beginning balance | $ | 109,680 | $ | 177,893 | |||||||||
Increases in unrecognized tax benefits related to prior year tax positions | 4,189 | 6,053 | |||||||||||
Decreases in unrecognized tax benefits related to prior year tax positions | (3,328 | ) | (35,010 | ) | |||||||||
Increases in unrecognized tax benefits related to current year tax positions | 14,128 | 9,431 | |||||||||||
Decreases in unrecognized tax benefits related to settlements with taxing authorities | (4,967 | ) | (80,137 | ) | |||||||||
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations | (7,728 | ) | (3,499 | ) | |||||||||
Increases in unrecognized tax benefits acquired | 5,718 | 35,171 | |||||||||||
Changes in unrecognized tax benefits due to foreign currency translation | 68 | (222 | ) | ||||||||||
$ | 117,760 | $ | 109,680 | ||||||||||
As of October 31, 2013 and 2012, approximately $117.8 million and $75.3 million, respectively, of the unrecognized tax benefits would affect our effective tax rate if recognized upon resolution of the uncertain tax positions. | |||||||||||||
Interest and penalties related to estimated obligations for tax positions taken in the Company’s tax returns are recognized as a component of income tax expense (benefit) in the consolidated statements of operations and totaled approximately $0.2 million, $(5.8) million and $2.8 million for fiscal 2013, 2012 and 2011, respectively. As of October 31, 2013 and 2012, the combined amount of accrued interest and penalties related to tax positions taken on the Company’s tax returns was approximately $0.8 million and $0.6 million, respectively. | |||||||||||||
The timing of the resolution of income tax examinations is highly uncertain as well as the amounts and timing of various tax payments that are part of the settlement process. This could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. The Company believes that in the coming 12 months, it is reasonably possible that either certain audits will conclude or the statute of limitations on certain state and foreign income and withholding taxes will expire, or both. Given the uncertainty as to ultimate settlement terms, the timing of payment and the impact of such settlements on other uncertain tax positions, the range of the estimated potential decrease in underlying unrecognized tax benefits is between $0 and $35 million. | |||||||||||||
The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions: | |||||||||||||
Jurisdiction | Year(s) Subject to Examination | ||||||||||||
United States—Synopsys | Fiscal 2013 | ||||||||||||
United States—Magma Design Automation | Fiscal years after 2009 | ||||||||||||
California—Synopsys | Fiscal years after 2008 | ||||||||||||
California—Magma Design Automation | Fiscal years after 2009 | ||||||||||||
Hungary | Fiscal years after 2006 | ||||||||||||
Taiwan and Japan | Fiscal years after 2007 | ||||||||||||
Ireland | Fiscal years after 2008 | ||||||||||||
In addition, the Company has made acquisitions with operations in several of its significant jurisdictions which may have years subject to examination different from the years indicated in the above table. | |||||||||||||
IRS Examinations | |||||||||||||
In the third and fourth quarter of fiscal year 2013, the Company reached settlement with the Examination Division of the IRS for its audit of certain fiscal year 2012 issues, which resulted in a decrease in unrecognized tax benefits of $6.0 million, decrease in deferred tax assets of $4.9 million and a $1.1 million net tax benefit. On November 6th, 2013, subsequent to year end, the Company reached final settlement on the remaining fiscal 2012 issues and will recognize approximately $10 million in unrecognized tax benefits in the first quarter of fiscal year 2014. | |||||||||||||
In the third quarter of fiscal 2012, the Company reached a final settlement with the IRS for its audits of fiscal years 2010 and 2011. As a result of the settlement, the Company’s unrecognized tax benefits decreased by $24.7 million and the impact to other balance sheet tax accounts was not material. The net tax benefit resulting from the settlement was $15.9 million. | |||||||||||||
In the second quarter of fiscal 2011, the Company reached a final settlement with the IRS for its audits of fiscal years 2006 through 2009. As a result of the settlement, the Company’s unrecognized tax benefits decreased by $35.9 million and the impact to other balance sheet tax accounts was not material. The net tax benefit resulting from the settlement was $32.8 million. | |||||||||||||
The audit of certain returns filed by Synplicity, Inc. prior to its acquisition by the Company in May 2008 was finalized in the first quarter of fiscal 2011, which resulted in a decrease in unrecognized tax benefits of $4.0 million. | |||||||||||||
Non-U.S. Examinations | |||||||||||||
Taiwan | |||||||||||||
On June 21, 2012, the Company reached a settlement with the Taiwan tax authorities for fiscal 2008 with regard to certain transfer pricing issues. As a result of the settlement and the application of the settlement to other open fiscal years, the Company’s unrecognized tax benefits decreased by $16.5 million. The net tax benefit resulting from the settlement and the application to other open fiscal years was $14.7 million. | |||||||||||||
Certain of the Company’s income tax returns in Taiwan are under review for fiscal years 2009 through 2012. The Company believes that it has adequately provided for potential tax adjustments, including interest and potential penalties. | |||||||||||||
Hungary | |||||||||||||
On March 5, 2012, the Company reached a settlement with the Hungarian tax authorities with regard to its fiscal years 2006 through 2008. The settlement resulted in a $5.1 million cash payment. | |||||||||||||
On May 10, 2012 the Company reached a settlement with the Hungarian tax authorities for fiscal years 2009 and 2010. The settlement resulted in a $6.3 million benefit principally from interest in the second quarter, a $3.2 million reduction to prepaid taxes in the third quarter, and a cash payment of $10.9 million in the fourth quarter of fiscal 2012. | |||||||||||||
The settlements of fiscal years 2006 through 2010 reduced unrecognized tax benefits by $27.0 million and $24.2 million in the second and third quarter of fiscal 2012, respectively. |
Other_Income_Expense_Net
Other Income (Expense), Net | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Other Income (Expense), Net | ' | ||||||||||||
Note 12. Other Income (Expense), Net | |||||||||||||
The following table presents the components of other income (expense), net: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Interest income | $ | 1,891 | $ | 1,567 | $ | 2,117 | |||||||
Interest expense | (1,696 | ) | (1,991 | ) | (101 | ) | |||||||
Gain (loss) on assets related to deferred compensation plan | 18,453 | 7,498 | 2,426 | ||||||||||
Foreign currency exchange gain (loss) | 6,026 | 1,676 | 1,655 | ||||||||||
Other, net | 4,499 | 2,361 | 173 | ||||||||||
Total | $ | 29,173 | $ | 11,111 | $ | 6,270 | |||||||
Segment_Disclosure
Segment Disclosure | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Segment Disclosure | ' | ||||||||||||
Note 13. Segment Disclosure | |||||||||||||
ASC 280, Segment Reporting, requires disclosures of certain information regarding operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers. | |||||||||||||
The Company provides software products and consulting services in the EDA software industry. The Company operates in a single segment. In making operating decisions, the CODMs primarily consider consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Specifically, the CODMs consider where individual “seats” or licenses to the Company’s products are located in allocating revenue to particular geographic areas. Revenue is defined as revenues from external customers. Goodwill is not allocated since the Company operates in one reportable operating segment. Revenues and property and equipment, net, related to operations in the United States and other by geographic areas were: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Revenue: | |||||||||||||
United States | $ | 939,749 | $ | 834,191 | $ | 714,036 | |||||||
Europe | 273,041 | 225,797 | 207,071 | ||||||||||
Japan | 264,141 | 289,420 | 275,174 | ||||||||||
Asia Pacific and Other | 485,283 | 406,609 | 339,362 | ||||||||||
Consolidated | $ | 1,962,214 | $ | 1,756,017 | $ | 1,535,643 | |||||||
As of October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Property and Equipment, net: | |||||||||||||
United States | $ | 133,310 | $ | 133,148 | |||||||||
Other countries | 64,290 | 58,095 | |||||||||||
Total | $ | 197,600 | $ | 191,243 | |||||||||
Geographic revenue data for multiregional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to the Company’s methodology. | |||||||||||||
One customer, in the aggregate, accounted for 11.3%, 10.5%, and 10.6% of the Company’s consolidated revenue in fiscal 2013, 2012 and 2011, respectively. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Fiscal Year End | ' | ||||||||||||||||
Fiscal Year End. The Company’s fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. Fiscal 2013 was a 52-week year ending on November 2, 2013. Fiscal 2012 and fiscal 2011 were 53-week and 52-week years, respectively, ending on November 3, 2012 and October 29, 2011, respectively. For presentation purposes, the consolidated financial statements and accompanying notes refer to the closest calendar month end. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation. The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates. To prepare financial statements in conformity with U.S. generally accepted accounting principles (GAAP), management must make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position. | |||||||||||||||||
Foreign Currency Translation | ' | ||||||||||||||||
Foreign Currency Translation. The functional currency of the majority of the Company’s active foreign subsidiaries is the foreign subsidiary’s local currency. Assets and liabilities that are not denominated in the functional currency are remeasured into the functional currency with any related gain or loss recorded in earnings. The Company translates assets and liabilities of its non-U.S. dollar functional currency foreign operations into the U.S. dollar reporting currency at exchange rates in effect at the balance sheet date. The Company translates income and expense items of such foreign operations into U.S. dollars reporting currency at average exchange rates for the period. Accumulated translation adjustments are reported in stockholders’ equity, as a component of accumulated other comprehensive income (loss). | |||||||||||||||||
Foreign Currency Contracts | ' | ||||||||||||||||
Foreign Currency Contracts. The Company operates internationally and is exposed to potentially adverse movements in currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions. The Company accounts for the foreign currency forward contracts under Accounting Standard Codification (ASC) 815, Derivatives and Hedging. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheet. | |||||||||||||||||
The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. See Note 5. Financial Assets and Liabilities. | |||||||||||||||||
Fair Values of Financial Instruments | ' | ||||||||||||||||
Fair Values of Financial Instruments. The Company’s cash equivalents and foreign currency contracts are carried at fair value. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. Non-marketable equity securities are carried at cost. The Company performs periodic impairment analysis over these non-marketable equity securities. See Note 6. Fair Value Measures. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents. The Company classifies investments with original maturities of three months or less when acquired as cash equivalents. | |||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign currency contracts, and accounts receivable from trade customers. The Company maintains cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U.S. and in various overseas locations. | |||||||||||||||||
The Company sells its products worldwide primarily to customers in the global electronics market. The Company performs on-going credit evaluations of its customers’ financial condition and does not require collateral. The Company establishes reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented. | |||||||||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||||||||
Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains allowances for doubtful accounts to reduce the Company’s receivables to their estimated net realizable value. The Company provides a general reserve on all accounts receivable based on a review of customer accounts. The following table presents the changes in the allowance for doubtful accounts. | |||||||||||||||||
Fiscal Year | Balance at | Provisions | Write-offs(1) | Balance at | |||||||||||||
Beginning | End of | ||||||||||||||||
of Period | Period | ||||||||||||||||
(in thousands) | |||||||||||||||||
2013 | $ | 6,072 | $ | 102 | $ | (1,921 | ) | $ | 4,253 | ||||||||
2012 | $ | 2,489 | $ | 3,754 | $ | (171 | ) | $ | 6,072 | ||||||||
2011 | $ | 2,727 | $ | 1,058 | $ | (1,296 | ) | $ | 2,489 | ||||||||
-1 | Balances written off, net of recoveries. | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||||||
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. | |||||||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Assets, excluding land, are depreciated using the straight-line method over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over the remaining term of the lease or the economic useful life of the asset, whichever is shorter. Depreciation expenses were $56.7 million, $52.8 million and $51.0 million in fiscal 2013, 2012 and 2011, respectively. Repair and maintenance costs are expensed as incurred and such costs were $26.3 million, $23.7 million and $20.9 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
A detail of property and equipment is as follows: | |||||||||||||||||
October 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Computer and other equipment | $ | 372,295 | $ | 329,376 | |||||||||||||
Buildings | 69,352 | 70,237 | |||||||||||||||
Furniture and fixtures | 31,317 | 29,212 | |||||||||||||||
Land | 20,414 | 20,414 | |||||||||||||||
Leasehold improvements | 96,334 | 92,111 | |||||||||||||||
589,712 | 541,350 | ||||||||||||||||
Less accumulated depreciation and amortization(1) | (392,112 | ) | (350,107 | ) | |||||||||||||
Total | $ | 197,600 | $ | 191,243 | |||||||||||||
-1 | Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets. | ||||||||||||||||
The useful lives of depreciable assets are as follows: | |||||||||||||||||
Useful Life in Years | |||||||||||||||||
Computer and other equipment | 5-Mar | ||||||||||||||||
Buildings | 30 | ||||||||||||||||
Furniture and fixtures | 5 | ||||||||||||||||
Leasehold improvements (average) | 5 | ||||||||||||||||
Goodwill | ' | ||||||||||||||||
Goodwill. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment annually or more frequently if facts and circumstances warrant a review. The Company determined that it is a single reporting unit for the purpose of goodwill impairment tests. For purposes of assessing the impairment of goodwill, the Company estimates the value of the reporting unit using its market capitalization as the best evidence of fair value. This fair value is then compared to the carrying value of the reporting unit. During fiscal 2013, 2012 and 2011, there were no indicators of impairment to goodwill. | |||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
Intangible Assets. Intangible assets consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, covenants not to compete, capitalized software, and in-process research and development. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from two to ten years. | |||||||||||||||||
The Company continually monitors events and changes in circumstances that could indicate carrying amounts of the long-lived assets, including property and equipment and intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through the undiscounted future cash flow. If the undiscounted future cash flow is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company had no impairments of any long-lived assets in fiscal 2013, 2012 or 2011. | |||||||||||||||||
Other Comprehensive Income (Loss) | ' | ||||||||||||||||
Other Comprehensive Income (Loss). Other comprehensive income (loss) (OCI) includes all changes in equity during a period from non-owner sources, such as accumulated net translation adjustments, unrealized gain (loss) on certain foreign currency forward contracts that qualify as cash flow hedges, reclassification adjustments related to cash flow hedges and unrealized gain (loss) on investments. See Note 8. Accumulated Other Comprehensive Income (Loss). | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition. Software license revenue consists of fees associated with the licensing of the Company’s software. Maintenance and service revenue consists of maintenance fees associated with perpetual and term licenses and professional services fees. Hardware revenue consists of Field Programmable Gate Array (FPGA)-based emulation and prototyping systems. | |||||||||||||||||
With respect to software licenses, the Company utilizes three license types: | |||||||||||||||||
• | Technology Subscription Licenses (TSLs). TSLs are time-based licenses for a finite term, and generally provide the customer limited rights to receive, or to exchange certain quantities of licensed software for, unspecified future technology. The Company bundles and does not charge separately for post-contract customer support (maintenance) for the term of the license. | ||||||||||||||||
• | Term licenses. Term licenses are also for a finite term, but do not provide the customer any rights to receive, or to exchange licensed software for, unspecified future technology. Customers purchase maintenance separately for the first year and may renew annually for the balance of the term. The annual maintenance fee is typically calculated as a percentage of the net license fee. | ||||||||||||||||
• | Perpetual licenses. Perpetual licenses continue as long as the customer renews maintenance plus an additional 20 years. Perpetual licenses do not provide the customer any rights to receive, or to exchange licensed software for, unspecified future technology. Customers purchase maintenance separately for the first year and may renew annually. | ||||||||||||||||
For the three software license types, the Company recognizes revenue as follows: | |||||||||||||||||
• | TSLs. The Company typically recognizes revenue from TSL fees (which include bundled maintenance) ratably over the term of the license period, or as customer installments become due and payable, whichever is later. Revenue attributable to TSLs is reported as “time-based license revenue” in the consolidated statements of operations. | ||||||||||||||||
• | Term licenses. The Company recognizes revenue from term licenses in full upon shipment of the software if payment terms require the customer to pay at least 75% of the license fee and 100% of the maintenance fee within one year from shipment and all other revenue recognition criteria are met. Revenue attributable to these term licenses is reported as “upfront license revenue” in the consolidated statements of operations. For term licenses in which less than 75% of the license fee and 100% of the maintenance fee is payable within one year from shipment, the Company recognizes revenue as customer payments become due and payable. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. | ||||||||||||||||
• | Perpetual licenses. The Company recognizes revenue from perpetual licenses in full upon shipment of the software if payment terms require the customer to pay at least 75% of the license fee and 100% of the maintenance fee within one year from shipment and all other revenue recognition criteria are met. Revenue attributable to these perpetual licenses is reported as “upfront license revenue” in the consolidated statements of operations. For perpetual licenses in which less than 75% of the license fee and 100% of the maintenance fee is payable within one year from shipment, the Company recognizes revenue as customer installments become due and payable. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. | ||||||||||||||||
The Company also enters into arrangements in which portions of revenue are contingent upon the occurrence of uncertain future events, for example, royalty arrangements. The Company refers to this revenue as “contingent revenue.” Contingent revenue is recognized if and when the applicable event occurs. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. Historically, these arrangements have not been material to the Company’s total revenue. | |||||||||||||||||
The Company recognizes revenue from sales of hardware and perpetual licenses to IP and system-level products in full upon shipment if all other revenue recognition criteria are met. Revenue attributable to these sales is reported as “upfront license revenue” in the consolidated statements of operations and is not material to the Company’s total revenue. | |||||||||||||||||
The Company infrequently enters into multiple-element arrangements that contain both software and non-software deliverables such as hardware. The Company has determined that the software and non-software deliverables in the Company’s contracts are separate units of accounting. The Company recognizes revenue for the separate units of accounting when all revenue recognition criteria are met. Revenue allocated to hardware units of accounting is recognized upon shipment when all other revenue recognition criteria are met. Revenue allocated to software units of accounting is recognized according to the methods described above depending on the software license type (TSL, term license or perpetual license). Such arrangements have not had a material effect on the Company’s consolidated financial statements and are not expected to have a material effect in future periods. | |||||||||||||||||
The Company recognizes revenue from maintenance fees ratably over the maintenance period to the extent cash has been received or fees become due and payable, and recognizes revenue from professional services and training fees as such services are performed and accepted by the customer. Revenue attributable to maintenance, professional services and training is reported as “maintenance and service revenue” in the consolidated statements of operations. | |||||||||||||||||
The Company also enters into arrangements to deliver software products, either alone or together with other products or services that require significant modification, or customization of the software. The Company accounts for such arrangements using the percentage of completion method as the Company has the ability to make reasonably dependable estimates that relate to the extent of progress toward completion, contract revenues and costs. The Company measures the progress towards completion using the labor hours incurred to complete the project. Revenue attributable to these arrangements is reported as “maintenance and service revenue” in the consolidated statements of operations. | |||||||||||||||||
The Company determines the fair value of each element in multiple element software arrangements that contain only software and software related deliverables based on vendor-specific objective evidence (VSOE). The Company limits assessment of VSOE of fair value for each element to the price charged when such element is sold separately. The Company has analyzed all of the elements included in multiple-element software arrangements and has determined that the Company has sufficient VSOE to allocate revenue to the maintenance components of the Company’s perpetual and term license products and to professional services. Accordingly, assuming all other revenue recognition criteria are met, the Company recognizes license revenue from perpetual and term licenses upon delivery using the residual method, recognizes revenue from maintenance ratably over the maintenance term, and recognizes revenue from professional services as services are performed and accepted by the customer. The Company recognizes revenue from TSLs ratably over the term of the license, assuming all other revenue recognition criteria are met, since there is not sufficient VSOE to allocate the TSL fee between license and maintenance services. | |||||||||||||||||
The Company makes significant judgments related to revenue recognition. Specifically, in connection with each transaction involving the Company’s products, the Company must evaluate whether: (1) persuasive evidence of an arrangement exists, (2) delivery of software or services has occurred, (3) the fee for such software or services is fixed or determinable, and (4) collectability of the full license or service fee is probable. All four of these criteria must be met in order for the Company to recognize revenue with respect to a particular arrangement. The Company applies these revenue recognition criteria as follows: | |||||||||||||||||
• | Persuasive Evidence of an Arrangement Exists. Prior to recognizing revenue on an arrangement, the Company’s customary policy is to have a written contract, signed by both the customer and by the Company or a purchase order from those customers that have previously negotiated a standard end-user license arrangement or purchase agreement. | ||||||||||||||||
• | Delivery Has Occurred. The Company delivers its products to its customers electronically or physically. For electronic deliveries, delivery occurs when the Company provides access to its customers to take immediate possession of the software through downloading it to the customer’s hardware. For physical deliveries, the standard transfer terms are typically Freight on Board (FOB) shipping point. The Company generally ships its products or license keys promptly after acceptance of customer orders. However, a number of factors can affect the timing of product shipments and, as a result, timing of revenue recognition, including the delivery dates requested by customers and its operational capacity to fulfill product orders at the end of a fiscal quarter. | ||||||||||||||||
• | The Fee is Fixed or Determinable. The Company’s determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. The Company’s standard payment terms for perpetual and term licenses require 75% or more of the license fee and 100% of the maintenance fee to be paid within one year. If the arrangement includes these terms, the Company regards the fee as fixed or determinable, and recognizes all license revenue under the arrangement in full upon delivery (assuming all other revenue recognition criteria are met). If the arrangement does not include these terms, the Company does not consider the fee to be fixed or determinable and generally recognizes revenue when customer installments are due and payable. In the case of a TSL, because of the right to exchange products or receive unspecified future technology and because VSOE for maintenance services does not exist for a TSL, the Company recognizes revenue ratably over the term of the license, but not in advance of when customers’ installments become due and payable. | ||||||||||||||||
• | Collectability is Probable. The Company judges collectability of the arrangement fees on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a history of successful collection. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position and ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is not probable under a particular arrangement based upon its credit review process or the customer’s payment history, the Company recognizes revenue under that arrangement as customer payments are actually received. | ||||||||||||||||
Warranties and Indemnities | ' | ||||||||||||||||
Warranties and Indemnities. The Company generally warrants its products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for software products and for up to six months for hardware products. In certain cases, the Company also provides its customers with limited indemnification with respect to claims that their use of the Company’s software products infringe on United States patents, copyrights, trademarks or trade secrets. The Company is unable to estimate the potential impact of these commitments on the future results of operations. To date, the Company has not been required to pay any material warranty claims. | |||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
Net Income Per Share. The Company computes basic income per share by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding such as stock options and unvested restricted stock units and awards during the period using the treasury stock method. | |||||||||||||||||
The table below reconciles the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share: | |||||||||||||||||
Year Ended October 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 247,800 | $ | 182,402 | $ | 221,364 | |||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares for basic net income per share | 153,319 | 146,887 | 146,573 | ||||||||||||||
Dilutive effect of common share equivalents from equity—based compensation | 3,282 | 3,393 | 3,794 | ||||||||||||||
Weighted average common shares for diluted net income per share | 156,601 | 150,280 | 150,367 | ||||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 1.62 | $ | 1.24 | $ | 1.51 | |||||||||||
Diluted | $ | 1.58 | $ | 1.21 | $ | 1.47 | |||||||||||
Anti-dilutive employee stock-based awards excluded(1) | 1,326 | 3,314 | 4,669 | ||||||||||||||
-1 | These stock options and unvested restricted stock units were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Changes in Allowance for Doubtful Accounts | ' | ||||||||||||||||
The following table presents the changes in the allowance for doubtful accounts. | |||||||||||||||||
Fiscal Year | Balance at | Provisions | Write-offs(1) | Balance at | |||||||||||||
Beginning | End of | ||||||||||||||||
of Period | Period | ||||||||||||||||
(in thousands) | |||||||||||||||||
2013 | $ | 6,072 | $ | 102 | $ | (1,921 | ) | $ | 4,253 | ||||||||
2012 | $ | 2,489 | $ | 3,754 | $ | (171 | ) | $ | 6,072 | ||||||||
2011 | $ | 2,727 | $ | 1,058 | $ | (1,296 | ) | $ | 2,489 | ||||||||
-1 | Balances written off, net of recoveries. | ||||||||||||||||
Components of Property and Equipment | ' | ||||||||||||||||
A detail of property and equipment is as follows: | |||||||||||||||||
October 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Computer and other equipment | $ | 372,295 | $ | 329,376 | |||||||||||||
Buildings | 69,352 | 70,237 | |||||||||||||||
Furniture and fixtures | 31,317 | 29,212 | |||||||||||||||
Land | 20,414 | 20,414 | |||||||||||||||
Leasehold improvements | 96,334 | 92,111 | |||||||||||||||
589,712 | 541,350 | ||||||||||||||||
Less accumulated depreciation and amortization(1) | (392,112 | ) | (350,107 | ) | |||||||||||||
Total | $ | 197,600 | $ | 191,243 | |||||||||||||
-1 | Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets. | ||||||||||||||||
Useful Lives of Depreciable Assets | ' | ||||||||||||||||
The useful lives of depreciable assets are as follows: | |||||||||||||||||
Useful Life in Years | |||||||||||||||||
Computer and other equipment | 5-Mar | ||||||||||||||||
Buildings | 30 | ||||||||||||||||
Furniture and fixtures | 5 | ||||||||||||||||
Leasehold improvements (average) | 5 | ||||||||||||||||
Components of Accounts Payable and Accrued Liabilities | ' | ||||||||||||||||
Accounts Payable and Accrued Liabilities. The balance consists of: | |||||||||||||||||
October 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Payroll and related benefits | $ | 302,374 | $ | 299,961 | |||||||||||||
Other accrued liabilities | 47,248 | 53,277 | |||||||||||||||
Accounts payable | 8,575 | 29,855 | |||||||||||||||
Total | $ | 358,197 | $ | 383,093 | |||||||||||||
Components of Other Long Term Liabilities | ' | ||||||||||||||||
Other Long-term Liabilities. The balance consists of: | |||||||||||||||||
October 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Deferred compensation liability (See Note 10) | $ | 126,621 | $ | 100,645 | |||||||||||||
Other long-term liabilities | 38,318 | 25,572 | |||||||||||||||
Total | $ | 164,939 | $ | 126,217 | |||||||||||||
Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share | ' | ||||||||||||||||
The table below reconciles the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share: | |||||||||||||||||
Year Ended October 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 247,800 | $ | 182,402 | $ | 221,364 | |||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares for basic net income per share | 153,319 | 146,887 | 146,573 | ||||||||||||||
Dilutive effect of common share equivalents from equity—based compensation | 3,282 | 3,393 | 3,794 | ||||||||||||||
Weighted average common shares for diluted net income per share | 156,601 | 150,280 | 150,367 | ||||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 1.62 | $ | 1.24 | $ | 1.51 | |||||||||||
Diluted | $ | 1.58 | $ | 1.21 | $ | 1.47 | |||||||||||
Anti-dilutive employee stock-based awards excluded(1) | 1,326 | 3,314 | 4,669 | ||||||||||||||
-1 | These stock options and unvested restricted stock units were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Summary of Goodwill | ' | ||||||||||||
Goodwill: | |||||||||||||
(in thousands) | |||||||||||||
Balance at October 31, 2011 | $ | 1,289,286 | |||||||||||
Additions | 687,195 | ||||||||||||
Other adjustments(1) | 506 | ||||||||||||
Balance at October 31, 2012 | $ | 1,976,987 | |||||||||||
Additions | — | ||||||||||||
Other adjustments(1) | (1,016 | ) | |||||||||||
Balance at October 31, 2013 | $ | 1,975,971 | |||||||||||
-1 | Adjustments primarily relate to changes in deferred tax estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was still preliminary, and effects of foreign currency fluctuations. | ||||||||||||
Summary of Intangible Assets | ' | ||||||||||||
Intangible assets as of October 31, 2013 consist of the following: | |||||||||||||
Gross | Accumulated | Net Assets | |||||||||||
Assets | Amortization | ||||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 380,724 | $ | 228,065 | $ | 152,659 | |||||||
Customer relationships | 177,151 | 69,745 | 107,406 | ||||||||||
Contract rights intangible | 140,517 | 78,950 | 61,567 | ||||||||||
Covenants not to compete | 2,530 | 2,480 | 50 | ||||||||||
Trademarks and trade names | 10,891 | 5,459 | 5,432 | ||||||||||
In-process research and development (IPR&D)(1) | 4,298 | — | 4,298 | ||||||||||
Capitalized software development costs | 18,190 | 14,177 | 4,013 | ||||||||||
Total | $ | 734,301 | $ | 398,876 | $ | 335,425 | |||||||
-1 | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. | ||||||||||||
Intangible assets as of October 31, 2012 consist of the following: | |||||||||||||
Gross Assets | Accumulated | Net Assets | |||||||||||
Amortization | |||||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 367,321 | $ | 159,691 | $ | 207,630 | |||||||
Customer relationships | 179,657 | 48,368 | 131,289 | ||||||||||
Contract rights intangible | 142,641 | 43,843 | 98,798 | ||||||||||
Covenants not to compete | 2,530 | 2,354 | 176 | ||||||||||
Trademarks and trade names | 10,900 | 3,793 | 7,107 | ||||||||||
In-process research and development (IPR&D)(1) | 17,696 | — | 17,696 | ||||||||||
Capitalized software development costs | 14,581 | 10,955 | 3,626 | ||||||||||
Total | $ | 735,326 | $ | 269,004 | $ | 466,322 | |||||||
-1 | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. | ||||||||||||
Amortization Expense Related to Intangible Assets | ' | ||||||||||||
Total amortization expense and estimated useful life ranges related to intangible assets is set forth in the table below: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 68,781 | $ | 57,124 | $ | 44,869 | |||||||
Customer relationships | 21,394 | 17,141 | 13,030 | ||||||||||
Contract rights intangible | 35,538 | 24,113 | 10,279 | ||||||||||
Covenants not to compete | 126 | 248 | 222 | ||||||||||
Trademarks and trade names | 1,663 | 1,233 | 1,020 | ||||||||||
Capitalized software development costs(1) | 3,222 | 2,994 | 2,964 | ||||||||||
Total | $ | 130,724 | $ | 102,853 | $ | 72,384 | |||||||
-1 | Amortization of capitalized software development costs is included in cost of license revenue in the consolidated statements of operations. | ||||||||||||
Estimated Future Amortization of Intangible Assets | ' | ||||||||||||
The following table presents the estimated future amortization of intangible assets: | |||||||||||||
Fiscal Year | (in thousands) | ||||||||||||
2014 | $ | 111,023 | |||||||||||
2015 | 93,400 | ||||||||||||
2016 | 58,742 | ||||||||||||
2017 | 26,012 | ||||||||||||
2018 | 14,414 | ||||||||||||
2019 and thereafter | 27,536 | ||||||||||||
IPR&D(1) | 4,298 | ||||||||||||
Total | $ | 335,425 | |||||||||||
-1 | IPR&D projects are estimated to be completed within two years as of October 31, 2013. Assets are amortized over their useful life upon completion of the project or are written off upon abandonment. |
Financial_Assets_and_Liabiliti1
Financial Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||
Cash, Cash Equivalents and Investments | ' | ||||||||||||||||||||
Cash, Cash Equivalents and Investments. Cash, cash equivalents and investments are detailed as follows: | |||||||||||||||||||||
Cost | Gross | Gross | Gross | Estimated | |||||||||||||||||
Unrealized | Unrealized | Unrealized | Fair Value(1) | ||||||||||||||||||
Gains | Losses | Losses | |||||||||||||||||||
Less Than | 12 Months | ||||||||||||||||||||
12 Months | or Longer | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance at October 31, 2013 | |||||||||||||||||||||
Classified as current assets: | |||||||||||||||||||||
Non-interest bearing cash | $ | 183,292 | $ | — | $ | — | $ | — | $ | 183,292 | |||||||||||
Cash deposits and money market funds | 839,149 | — | — | — | 839,149 | ||||||||||||||||
1,022,441 | — | — | — | 1,022,441 | |||||||||||||||||
Classified as other long-term assets: | |||||||||||||||||||||
Non-marketable equity securities | 11,536 | — | — | — | 11,536 | ||||||||||||||||
Total | $ | 1,033,977 | $ | — | $ | — | $ | — | $ | 1,033,977 | |||||||||||
Cost | Gross | Gross | Gross | Estimated | |||||||||||||||||
Unrealized | Unrealized | Unrealized | Fair Value(1) | ||||||||||||||||||
Gains | Losses | Losses | |||||||||||||||||||
Less Than | 12 Months | ||||||||||||||||||||
12 Months | or Longer | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance at October 31, 2012 | |||||||||||||||||||||
Classified as current assets: | |||||||||||||||||||||
Non-interest bearing cash | $ | 167,161 | $ | — | $ | — | $ | — | $ | 167,161 | |||||||||||
Cash deposits and money market funds | 533,221 | — | — | — | 533,221 | ||||||||||||||||
700,382 | — | — | — | 700,382 | |||||||||||||||||
Classified as other long-term assets: | |||||||||||||||||||||
Non-marketable equity securities | 11,744 | — | — | — | 11,744 | ||||||||||||||||
Total | $ | 712,126 | $ | — | $ | — | $ | — | $ | 712,126 | |||||||||||
-1 | See Note 6. Fair Value Measures for further discussion on fair values of money market funds and non-marketable equity securities. | ||||||||||||||||||||
Effects on Changes in Fair Values of Non-Designated Forward Contracts | ' | ||||||||||||||||||||
The effects on the changes in the fair values of non-designated forward contracts for fiscal years 2013 and 2012 are summarized as follows: | |||||||||||||||||||||
October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Gain (loss) recorded in other income (expense), net | $ | 3,009 | $ | 1,033 | $ | 889 | |||||||||||||||
Foreign Currency Forward Contracts Outstanding | ' | ||||||||||||||||||||
Foreign currency forward contracts outstanding are as follows: | |||||||||||||||||||||
As of October 31, | As of October 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Total gross notional amount | $ | 746,801 | $ | 618,978 | |||||||||||||||||
Net fair value | $ | 7,199 | $ | 390 | |||||||||||||||||
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet | ' | ||||||||||||||||||||
The following represents the balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: | |||||||||||||||||||||
Fair Values of | Fair Values of | ||||||||||||||||||||
derivative instruments | derivative instruments | ||||||||||||||||||||
designated as | not designated as | ||||||||||||||||||||
hedging instruments | hedging instruments | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
As of October 31, 2013 | |||||||||||||||||||||
Other current assets | $ | 12,417 | $ | 20 | |||||||||||||||||
Other current liabilities | $ | 5,103 | $ | 135 | |||||||||||||||||
As of October 31, 2012 | |||||||||||||||||||||
Other current assets | $ | 5,149 | $ | 68 | |||||||||||||||||
Other current liabilities | $ | 4,739 | $ | 88 | |||||||||||||||||
Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax | ' | ||||||||||||||||||||
The following table represents the income statement location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax: | |||||||||||||||||||||
Location of gain (loss) | Amount of gain (loss) | Location of gain (loss) | Amount of | ||||||||||||||||||
recognized in OCI on | recognized in OCI on | reclassified from OCI | gain (loss) | ||||||||||||||||||
derivatives | derivatives | reclassified from | |||||||||||||||||||
(effective portion) | OCI | ||||||||||||||||||||
(effective portion) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fiscal year ended October 31, 2013 | |||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | 2,427 | Revenue | $ | 7,457 | |||||||||||||||
Foreign exchange contracts | Operating expenses | 3,680 | Operating expenses | (892 | ) | ||||||||||||||||
Total | $ | 6,107 | $ | 6,565 | |||||||||||||||||
Fiscal year ended October 31, 2012 | |||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | 5,212 | Revenue | $ | (1,868 | ) | ||||||||||||||
Foreign exchange contracts | Operating expenses | (7,640 | ) | Operating expenses | (12,367 | ) | |||||||||||||||
Total | $ | (2,428 | ) | $ | (14,235 | ) | |||||||||||||||
Fiscal year ended October 31, 2011 | |||||||||||||||||||||
Foreign exchange contracts | Revenue | $ | (5,647 | ) | Revenue | $ | (8,561 | ) | |||||||||||||
Foreign exchange contracts | Operating expenses | (3,225 | ) | Operating expenses | 6,572 | ||||||||||||||||
Total | $ | (8,872 | ) | $ | (1,989 | ) | |||||||||||||||
Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) | ' | ||||||||||||||||||||
The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense) income, net: | |||||||||||||||||||||
Amount of gain (loss) | Amount of gain (loss) | ||||||||||||||||||||
recognized in income | recognized in income | ||||||||||||||||||||
statement on derivatives | statement on derivatives | ||||||||||||||||||||
(ineffective portion)(1) | (excluded from | ||||||||||||||||||||
effectiveness testing)(2) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fiscal year ended October 31, 2013 | |||||||||||||||||||||
Foreign exchange contracts | $ | 293 | $ | 2,518 | |||||||||||||||||
Fiscal year ended October 31, 2012 | |||||||||||||||||||||
Foreign exchange contracts | $ | 38 | $ | 1,321 | |||||||||||||||||
Fiscal year ended October 31, 2011 | |||||||||||||||||||||
Foreign exchange contracts | $ | 74 | $ | 241 | |||||||||||||||||
-1 | The ineffective portion includes forecast inaccuracies. | ||||||||||||||||||||
-2 | The portion excluded from effectiveness includes the discount earned or premium paid for the contracts. |
Fair_Value_Measures_Tables
Fair Value Measures (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2013: | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Description | Total | Quoted Prices in Active | Significant Other | Significant | |||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 552,470 | $ | 552,470 | $ | — | $ | — | |||||||||
Prepaid and other current assets: | |||||||||||||||||
Foreign currency derivative contracts | 12,437 | — | 12,437 | — | |||||||||||||
Other long-term assets: | |||||||||||||||||
Deferred compensation plan assets | 126,621 | 126,621 | — | — | |||||||||||||
Total assets | $ | 691,528 | $ | 679,091 | $ | 12,437 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||
Foreign currency derivative contracts | $ | 5,238 | $ | — | $ | 5,238 | $ | — | |||||||||
Contingent consideration | 493 | — | — | 493 | |||||||||||||
Total liabilities | $ | 5,731 | $ | — | $ | 5,238 | $ | 493 | |||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2012: | |||||||||||||||||
Description | Total | Fair Value Measurement Using | |||||||||||||||
Quoted Prices in Active | Significant Other | Significant | |||||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 239,770 | $ | 239,770 | $ | — | $ | — | |||||||||
Prepaid and other current assets: | |||||||||||||||||
Foreign currency derivative contracts | 5,217 | — | 5,217 | — | |||||||||||||
Other long-term assets: | |||||||||||||||||
Deferred compensation plan assets | 100,645 | 100,645 | — | — | |||||||||||||
Total assets | $ | 345,632 | $ | 340,415 | $ | 5,217 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||
Foreign currency derivative contracts | $ | 4,827 | $ | — | $ | 4,827 | $ | — | |||||||||
Contingent consideration | 469 | — | — | 469 | |||||||||||||
Other long-term liabilities: | |||||||||||||||||
Contingent consideration | 355 | — | — | 355 | |||||||||||||
Total liabilities | $ | 5,651 | $ | — | $ | 4,827 | $ | 824 | |||||||||
Non-Marketable Equity Securities | ' | ||||||||||||||||
The following tables present the non-marketable equity securities that were measured and recorded at fair value within other long-term assets and the loss recorded in other income (expense), net during the following periods: | |||||||||||||||||
Balance as of | Significant | Total | |||||||||||||||
October 31, 2012 | Unobservable | (losses) for | |||||||||||||||
Inputs | Fiscal 2012 | ||||||||||||||||
(Level 3) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Non-marketable equity securities | $ | — | $ | — | $ | (452 | ) | ||||||||||
Balance as of | Significant | Total | |||||||||||||||
October 31, 2011 | Unobservable | (losses) for | |||||||||||||||
Inputs | Fiscal 2011 | ||||||||||||||||
(Level 3) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Non-marketable equity securities | $ | 92 | $ | 92 | $ | -999 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Minimum Lease Commitments | ' | ||||||||||||
Anticipated future minimum lease payments on all non-cancelable operating leases with a term in excess of one year, net of sublease income, as of October 31, 2013 are as follows: | |||||||||||||
Minimum | Sublease Income | Net | |||||||||||
Lease | |||||||||||||
Payments | |||||||||||||
(in thousands) | |||||||||||||
Fiscal Year | |||||||||||||
2014 | $ | 46,492 | $ | 877 | $ | 45,615 | |||||||
2015 | 35,951 | 1,428 | 34,523 | ||||||||||
2016 | 35,489 | 1,434 | 34,055 | ||||||||||
2017 | 32,373 | 1,451 | 30,922 | ||||||||||
2018 | 29,502 | 1,494 | 28,008 | ||||||||||
Thereafter | 222,943 | 7,004 | 215,939 | ||||||||||
Total | $ | 402,750 | $ | 13,688 | $ | 389,062 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Cumulative currency translation adjustments | $ | (26,848 | ) | $ | (14,123 | ) | |||||||
Unrealized gain (loss) on derivative instruments, net of taxes | (1,847 | ) | (1,338 | ) | |||||||||
Total accumulated other comprehensive income (loss) | $ | (28,695 | ) | $ | (15,461 | ) | |||||||
Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income | ' | ||||||||||||
The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Reclassifications from accumulated other comprehensive income (loss) into consolidated statement of operations: | |||||||||||||
Gain (loss) on cash flow hedges, net of taxes | |||||||||||||
Revenues | $ | 7,457 | $ | (1,868 | ) | $ | (8,561 | ) | |||||
Operating expenses | (892 | ) | (12,367 | ) | 6,572 | ||||||||
Total reclassifications into net income | $ | 6,565 | $ | (14,235 | ) | $ | (1,989 | ) | |||||
Stock_Repurchase_Program_Table
Stock Repurchase Program (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Stock Repurchase And Reissuance Activities | ' | ||||||||||||
The following table summarizes stock repurchase activities as well as the reissuance of treasury stock for employee stock compensation purposes: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands, except per share price) | |||||||||||||
Shares repurchased | 3,996 | 2,474 | 15,144 | ||||||||||
Average purchase price | $ | 36.29 | $ | 29.64 | $ | 26.53 | |||||||
Aggregate purchase price(1) | $ | 145,016 | $ | 73,335 | $ | 401,836 | |||||||
Reissuance of treasury stock | 7,266 | 10,065 | 9,973 | ||||||||||
-1 | Fiscal 2011 does not include a $33.3 million equity forward contract related to an accelerated share repurchase agreement entered into by the Company in September 2011. The equity forward contract was settled with 1,105,457 shares of the Company’s common stock during the first quarter of fiscal 2012. |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||
Restricted Stock Units | ' | ||||||||||||||||||||
The following table contains information concerning activities related to restricted stock units: | |||||||||||||||||||||
Restricted | Weighted Average | Weighted | Aggregate | ||||||||||||||||||
Stock Units | Grant Date | Average | Fair | ||||||||||||||||||
Fair Value | Remaining | Value | |||||||||||||||||||
Contractual | |||||||||||||||||||||
Life (In Years) | |||||||||||||||||||||
(in thousands, except per share and life amounts) | |||||||||||||||||||||
Balance at October 31, 2010 | 3,730 | $ | 22.71 | 1.41 | |||||||||||||||||
Granted | 1,483 | $ | 26.89 | ||||||||||||||||||
Vested(1) | (1,522 | ) | $ | 23.11 | $ | 35,164 | |||||||||||||||
Forfeited | (237 | ) | $ | 23.49 | |||||||||||||||||
Balance at October 31, 2011 | 3,454 | $ | 24.28 | 1.48 | |||||||||||||||||
Granted | 1,813 | $ | 29.52 | ||||||||||||||||||
Assumed(2) | 353 | $ | 30.33 | ||||||||||||||||||
Vested(1) | (1,508 | ) | $ | 24.14 | $ | 36,402 | |||||||||||||||
Forfeited | (192 | ) | $ | 26.7 | |||||||||||||||||
Balance at October 31, 2012 | 3,920 | $ | 27.18 | 1.52 | |||||||||||||||||
Granted | 1,680 | $ | 35.27 | ||||||||||||||||||
Vested(1) | (1,476 | ) | $ | 35.4 | $ | 52,234 | |||||||||||||||
Forfeited | (141 | ) | $ | 28.36 | |||||||||||||||||
Balance at October 31, 2013 | 3,983 | $ | 27.51 | 1.51 | |||||||||||||||||
-1 | The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements. | ||||||||||||||||||||
-2 | The Company assumed certain restricted stock units outstanding under various plans through acquisitions. | ||||||||||||||||||||
Stock Options and Restricted Stock Units Under all Equity Plans (Except 2005 Directors Plan) | ' | ||||||||||||||||||||
The following table contains additional information concerning activities related to stock options and restricted stock units under all equity plans, other than shares available for grant under the 2005 Directors Plan: | |||||||||||||||||||||
Available for | Options(2) | ||||||||||||||||||||
Grant(3) | Options | Weighted- | Weighted- | Aggregate | |||||||||||||||||
Outstanding | Average Exercise | Average | Intrinsic | ||||||||||||||||||
Price per Share | Remaining | Value | |||||||||||||||||||
Contractual | |||||||||||||||||||||
Life (In Years) | |||||||||||||||||||||
(in thousands, except per share and life amounts) | |||||||||||||||||||||
Balance at October 31, 2010 | 2,606 | 21,184 | $ | 21.83 | 2.8 | $ | 90,013 | ||||||||||||||
Options Granted | (2,228 | ) | 2,270 | $ | 26.07 | ||||||||||||||||
Options Exercised | (6,800 | ) | $ | 20.53 | |||||||||||||||||
Options Canceled/forfeited/expired | 550 | (694 | ) | $ | 27.24 | ||||||||||||||||
Restricted stock units granted(1) | (2,182 | ) | |||||||||||||||||||
Restricted stock units forfeited(1) | 165 | ||||||||||||||||||||
Additional shares reserved | 7,000 | ||||||||||||||||||||
Balance at October 31, 2011 | 5,911 | 15,960 | $ | 22.76 | 2.97 | $ | 74,068 | ||||||||||||||
Options Granted | (1,719 | ) | 1,719 | $ | 28.86 | ||||||||||||||||
Options Assumed(2) | 382 | $ | 19.15 | ||||||||||||||||||
Options Exercised | (7,103 | ) | $ | 21.09 | |||||||||||||||||
Options Canceled/forfeited/expired | 631 | (739 | ) | $ | 25.07 | ||||||||||||||||
Restricted stock units granted(1) | (2,638 | ) | |||||||||||||||||||
Restricted stock units forfeited(1) | 167 | ||||||||||||||||||||
Additional shares reserved | 5,000 | ||||||||||||||||||||
Balance at October 31, 2012 | 7,352 | 10,219 | $ | 24.64 | 3.71 | $ | 80,950 | ||||||||||||||
Options Granted | (1,704 | ) | 1,704 | $ | 34.1 | ||||||||||||||||
Options Assumed(2) | 158 | $ | 23.6 | ||||||||||||||||||
Options Exercised | (4,173 | ) | $ | 24.34 | |||||||||||||||||
Options Canceled/forfeited/expired | 159 | (182 | ) | $ | 24.17 | ||||||||||||||||
Restricted stock units granted(1) | (2,519 | ) | |||||||||||||||||||
Restricted stock units forfeited(1) | 184 | ||||||||||||||||||||
Additional shares reserved | 5,000 | ||||||||||||||||||||
Balance at October 31, 2013 | 8,472 | 7,726 | $ | 26.87 | 4.3 | $ | 71,700 | ||||||||||||||
Vested and expected to vest as of October 31, 2013 | 7,653 | $ | 26.83 | 4.28 | $ | 71,343 | |||||||||||||||
Exercisable at October 31, 2013 | 3,940 | $ | 24.12 | 3.26 | $ | 47,405 | |||||||||||||||
-1 | These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above. | ||||||||||||||||||||
-2 | The Company assumed options and stock appreciation rights (SARs) outstanding under various plans through acquisitions. | ||||||||||||||||||||
-3 | Excluding shares reserved for future issuance under the 2005 Directors Plan. | ||||||||||||||||||||
Pretax Intrinsic Value of Options Exercised and Their Average Exercise Prices | ' | ||||||||||||||||||||
The pretax intrinsic value of options exercised and their average exercise prices were: | |||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands, except per share price) | |||||||||||||||||||||
Intrinsic value | $ | 46,592 | $ | 63,048 | $ | 42,388 | |||||||||||||||
Average exercise price per share | $ | 24.34 | $ | 21.09 | $ | 20.53 | |||||||||||||||
Summary of Restricted Stock Award Activities Under 2005 Directors Plan | ' | ||||||||||||||||||||
Restricted stock award activities during fiscal 2013 under the 2005 Directors Plan are summarized as follows: | |||||||||||||||||||||
Restricted | Weighted-Average | ||||||||||||||||||||
Shares | Grant Date Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Unvested at October 31, 2012 | 57 | $ | 28.28 | ||||||||||||||||||
Granted | 25 | $ | 35.4 | ||||||||||||||||||
Vested | (29 | ) | $ | 26.77 | |||||||||||||||||
Forfeited | — | $ | — | ||||||||||||||||||
Unvested at October 31, 2013 | 53 | $ | 32.48 | ||||||||||||||||||
Stock Option Plans and Stock Purchase Rights Granted Under ESPP | ' | ||||||||||||||||||||
The assumptions presented in the following table were used to estimate the fair value of stock options and employee stock purchase rights granted under the Company’s stock plans or stock plans assumed from acquisitions: | |||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Stock Options | |||||||||||||||||||||
Expected life (in years) | 4.7 | 1.0 - 4.9 | 4.8 | ||||||||||||||||||
Risk-free interest rate | 0.62% - 1.66% | 0.22% - 0.95% | 0.96% - 2.28% | ||||||||||||||||||
Volatility | 20.61% - 26.47% | 22.65% - 29.76% | 26.96% - 30.30% | ||||||||||||||||||
Weighted average estimated fair value | $7.29 | $8.46 | $7.04 | ||||||||||||||||||
ESPP | |||||||||||||||||||||
Expected life (in years) | 0.5 - 2.0 | 0.5 - 2.0 | 0.5 - 2.0 | ||||||||||||||||||
Risk-free interest rate | 0.10% - 0.43% | 0.16% - 0.34% | 0.09% - 0.68% | ||||||||||||||||||
Volatility | 17.12% - 21.75% | 21.95% - 23.20% | 19.48% - 27.08% | ||||||||||||||||||
Weighted average estimated fair value | $8.19 | $8.02 | $6.82 | ||||||||||||||||||
Stock Compensation Expense | ' | ||||||||||||||||||||
The following table presents stock compensation expense for fiscal 2013, 2012 and 2011, respectively: | |||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of license | $ | 6,597 | $ | 6,927 | $ | 5,658 | |||||||||||||||
Cost of maintenance and service | 1,628 | 1,727 | 1,416 | ||||||||||||||||||
Research and development expense | 32,423 | 32,767 | 26,747 | ||||||||||||||||||
Sales and marketing expense | 13,983 | 13,566 | 11,068 | ||||||||||||||||||
General and administrative expense | 12,880 | 16,427 | 11,525 | ||||||||||||||||||
Stock compensation expense before taxes | 67,511 | 71,414 | 56,414 | ||||||||||||||||||
Income tax benefit | (16,446 | ) | (15,989 | ) | (14,798 | ) | |||||||||||||||
Stock compensation expense after taxes | $ | 51,065 | $ | 55,425 | $ | 41,616 | |||||||||||||||
Deferred Plan Assets and Liabilities | ' | ||||||||||||||||||||
Deferred Plan Assets and Liabilities are as follows: | |||||||||||||||||||||
As of October 31, | As of October 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Plan assets recorded in other long-term assets | $ | 126,621 | $ | 100,645 | |||||||||||||||||
Plan liabilities recorded in other long-term liabilities(1) | $ | 126,621 | $ | 100,645 | |||||||||||||||||
-1 | For undistributed deferred compensation due to participants. | ||||||||||||||||||||
Summary of Impact of Deferred Plan | ' | ||||||||||||||||||||
The following table summarizes the impact of the Deferred Plan: | |||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Increase (reduction) to cost of revenue and operating expense | $ | 18,453 | $ | 7,498 | $ | 2,449 | |||||||||||||||
Other income (expense), net | 18,453 | 7,498 | 2,449 | ||||||||||||||||||
Net increase (decrease) to net income | $ | — | $ | — | $ | — | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Domestic and Foreign Components of Total Income Before Provision for Income Tax | ' | ||||||||||||
The domestic and foreign components of the Company’s total income before provision for income taxes are as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
United States | $ | 61,818 | $ | 39,855 | $ | 40,434 | |||||||
Foreign | 213,848 | 161,280 | 178,679 | ||||||||||
$ | 275,666 | $ | 201,135 | $ | 219,113 | ||||||||
Components of (Benefit) Provision for Income Taxes | ' | ||||||||||||
The components of the (benefit) provision for income taxes were as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 11,692 | $ | (12,443 | ) | $ | (6,436 | ) | |||||
State | (5,949 | ) | (547 | ) | (2,197 | ) | |||||||
Foreign | 29,428 | 6,826 | 474 | ||||||||||
35,171 | (6,164 | ) | (8,159 | ) | |||||||||
Deferred: | |||||||||||||
Federal | 4,969 | 22,506 | (7,160 | ) | |||||||||
State | 933 | 14 | (2,456 | ) | |||||||||
Foreign | (13,207 | ) | 2,377 | 15,524 | |||||||||
(7,305 | ) | 24,897 | 5,908 | ||||||||||
Provision (Benefit) for income taxes | $ | 27,866 | $ | 18,733 | $ | (2,251 | ) | ||||||
Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate | ' | ||||||||||||
The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Statutory federal tax | $ | 96,483 | $ | 70,397 | $ | 76,689 | |||||||
State tax (benefit), net of federal effect | (2,697 | ) | 1,078 | (4,988 | ) | ||||||||
Tax credits(1) | (24,972 | ) | (4,289 | ) | (19,042 | ) | |||||||
Tax on foreign earnings less than U.S. statutory tax | (36,670 | ) | (21,288 | ) | (28,968 | ) | |||||||
Deferred tax reversal resulting from merger of foreign affiliate | (6,808 | ) | — | — | |||||||||
Tax settlements | (1,130 | ) | (36,882 | ) | (32,782 | ) | |||||||
Stock based compensation | 4,671 | 9,016 | 7,817 | ||||||||||
Changes in valuation allowance | (776 | ) | 10 | 49 | |||||||||
Other | (235 | ) | 691 | (1,026 | ) | ||||||||
$ | 27,866 | $ | 18,733 | $ | (2,251 | ) | |||||||
-1 | As a result of the reinstatement of the federal research and development tax credit in fiscal year 2013, the Company reflected a benefit of approximately $19 million in the above amount for the period January 1, 2012 through October 31, 2013. The federal research tax credit is scheduled to expire on December 31, 2013. | ||||||||||||
Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
The significant components of deferred tax assets and liabilities were as follows: | |||||||||||||
October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Net deferred tax assets: | |||||||||||||
Deferred tax assets: | |||||||||||||
Accruals and reserves | $ | 35,548 | $ | 30,317 | |||||||||
Deferred revenue | 36,551 | 46,247 | |||||||||||
Deferred compensation | 45,662 | 39,186 | |||||||||||
Capitalized costs | 84,390 | 94,031 | |||||||||||
Capitalized research and development costs | 36,650 | 48,059 | |||||||||||
Stock compensation | 16,790 | 21,229 | |||||||||||
Tax loss carryovers | 63,869 | 73,492 | |||||||||||
Foreign tax credit carryovers | 3,532 | 10,766 | |||||||||||
Research and other tax credit carryovers | 108,044 | 88,973 | |||||||||||
Other | 3,736 | 2,449 | |||||||||||
Gross deferred tax assets | 434,772 | 454,749 | |||||||||||
Valuation allowance | (32,945 | ) | (26,259 | ) | |||||||||
Total deferred tax assets | 401,827 | 428,490 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | 82,662 | 116,639 | |||||||||||
Undistributed earnings of foreign subsidiaries | 11,982 | 831 | |||||||||||
Total deferred tax liabilities | 94,644 | 117,470 | |||||||||||
Net deferred tax assets | $ | 307,183 | $ | 311,020 | |||||||||
Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities | ' | ||||||||||||
The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities: | |||||||||||||
Carryforward | Amount | Expiration | |||||||||||
Date | |||||||||||||
(in thousands) | |||||||||||||
Federal net operating loss carryforward | $ | 137,576 | 2018-2030 | ||||||||||
Federal research credit carryforward | 117,257 | 2018-2033 | |||||||||||
Foreign tax credit carryforward | 6,654 | 2018-2021 | |||||||||||
California research credit carryforward | 112,167 | Indefinite | |||||||||||
Other state research credit carryforward | 8,079 | 2014-2032 | |||||||||||
State net operating loss carryforward | 164,385 | 2014-2031 | |||||||||||
Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit | ' | ||||||||||||
A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows: | |||||||||||||
As of October 31, | As of October 31, | ||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Beginning balance | $ | 109,680 | $ | 177,893 | |||||||||
Increases in unrecognized tax benefits related to prior year tax positions | 4,189 | 6,053 | |||||||||||
Decreases in unrecognized tax benefits related to prior year tax positions | (3,328 | ) | (35,010 | ) | |||||||||
Increases in unrecognized tax benefits related to current year tax positions | 14,128 | 9,431 | |||||||||||
Decreases in unrecognized tax benefits related to settlements with taxing authorities | (4,967 | ) | (80,137 | ) | |||||||||
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations | (7,728 | ) | (3,499 | ) | |||||||||
Increases in unrecognized tax benefits acquired | 5,718 | 35,171 | |||||||||||
Changes in unrecognized tax benefits due to foreign currency translation | 68 | (222 | ) | ||||||||||
$ | 117,760 | $ | 109,680 | ||||||||||
Subsidiaries Remain Subject to Tax Examination | ' | ||||||||||||
The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions: | |||||||||||||
Jurisdiction | Year(s) Subject to Examination | ||||||||||||
United States—Synopsys | Fiscal 2013 | ||||||||||||
United States—Magma Design Automation | Fiscal years after 2009 | ||||||||||||
California—Synopsys | Fiscal years after 2008 | ||||||||||||
California—Magma Design Automation | Fiscal years after 2009 | ||||||||||||
Hungary | Fiscal years after 2006 | ||||||||||||
Taiwan and Japan | Fiscal years after 2007 | ||||||||||||
Ireland | Fiscal years after 2008 |
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Components of Other Income (Expense), Net | ' | ||||||||||||
The following table presents the components of other income (expense), net: | |||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Interest income | $ | 1,891 | $ | 1,567 | $ | 2,117 | |||||||
Interest expense | (1,696 | ) | (1,991 | ) | (101 | ) | |||||||
Gain (loss) on assets related to deferred compensation plan | 18,453 | 7,498 | 2,426 | ||||||||||
Foreign currency exchange gain (loss) | 6,026 | 1,676 | 1,655 | ||||||||||
Other, net | 4,499 | 2,361 | 173 | ||||||||||
Total | $ | 29,173 | $ | 11,111 | $ | 6,270 | |||||||
Segment_Disclosure_Tables
Segment Disclosure (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Revenues Related to Operations by Geographic Areas | ' | ||||||||||||
Year Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Revenue: | |||||||||||||
United States | $ | 939,749 | $ | 834,191 | $ | 714,036 | |||||||
Europe | 273,041 | 225,797 | 207,071 | ||||||||||
Japan | 264,141 | 289,420 | 275,174 | ||||||||||
Asia Pacific and Other | 485,283 | 406,609 | 339,362 | ||||||||||
Consolidated | $ | 1,962,214 | $ | 1,756,017 | $ | 1,535,643 | |||||||
Property and Equipment by Geographic Areas | ' | ||||||||||||
As of October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Property and Equipment, net: | |||||||||||||
United States | $ | 133,310 | $ | 133,148 | |||||||||
Other countries | 64,290 | 58,095 | |||||||||||
Total | $ | 197,600 | $ | 191,243 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Y | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Cash and cash equivalent maturity period, months | '3 months | ' | ' |
Depreciation expenses | $56,700,000 | $52,800,000 | $51,000,000 |
Repair and maintenance costs | 26,300,000 | 23,700,000 | 20,900,000 |
Goodwill impairment loss | 0 | 0 | 0 |
Long-lived assets impairment loss | $0 | $0 | $0 |
Additional maintenance perpetual license period (in years) | 20 | ' | ' |
Software product warranty period (in days) | '90 days | ' | ' |
Term Licenses | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
License fee percentage | 75.00% | ' | ' |
Maintenance fee percentage | 100.00% | ' | ' |
Perpetual Licenses | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
License fee percentage | 75.00% | ' | ' |
Maintenance fee percentage | 100.00% | ' | ' |
Perpetual And Term Licenses | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
License fee percentage | 75.00% | ' | ' |
Maintenance fee percentage | 100.00% | ' | ' |
Maximum | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Hardware product warranty period (in months) | '6 months | ' | ' |
Intangible Assets | Minimum | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Intangible assets amortization period | '2 years | ' | ' |
Intangible Assets | Maximum | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Intangible assets amortization period | '10 years | ' | ' |
Changes_in_Allowance_for_Doubt
Changes in Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |||
Accounts Receivable [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | $6,072 | $2,489 | $2,727 | |||
Provisions | 102 | 3,754 | 1,058 | |||
Write-offs | -1,921 | [1] | -171 | [1] | -1,296 | [1] |
Balance at End of Period | $4,253 | $6,072 | $2,489 | |||
[1] | Balances written off, net of recoveries. |
Components_of_Property_and_Equ
Components of Property and Equipment (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Property plant and equipment | ' | ' | ||
Computer and other equipment | $372,295 | $329,376 | ||
Buildings | 69,352 | 70,237 | ||
Furniture and fixtures | 31,317 | 29,212 | ||
Land | 20,414 | 20,414 | ||
Leasehold improvements | 96,334 | 92,111 | ||
Property, Plant and Equipment, Gross, Total | 589,712 | 541,350 | ||
Less accumulated depreciation and amortization | -392,112 | [1] | -350,107 | [1] |
Total | $197,600 | $191,243 | ||
[1] | Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets. |
Useful_Lives_of_Depreciable_As
Useful Lives of Depreciable Assets (Detail) | 12 Months Ended |
Oct. 31, 2013 | |
Computer and Office Equipment | Minimum | ' |
Property Plant And Equipment Estimated Useful Lifes [Line Items] | ' |
Useful lives of depreciable assets, years | '3 years |
Computer and Office Equipment | Maximum | ' |
Property Plant And Equipment Estimated Useful Lifes [Line Items] | ' |
Useful lives of depreciable assets, years | '5 years |
Building | ' |
Property Plant And Equipment Estimated Useful Lifes [Line Items] | ' |
Useful lives of depreciable assets, years | '30 years |
Furniture and Fixtures | ' |
Property Plant And Equipment Estimated Useful Lifes [Line Items] | ' |
Useful lives of depreciable assets, years | '5 years |
Leasehold Improvements | ' |
Property Plant And Equipment Estimated Useful Lifes [Line Items] | ' |
Useful lives of depreciable assets, years | '5 years |
Components_of_Accounts_Payable
Components of Accounts Payable and Accrued Liabilities (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts payable and accrued liabilities Current | ' | ' |
Payroll and related benefits | $302,374 | $299,961 |
Other accrued liabilities | 47,248 | 53,277 |
Accounts payable | 8,575 | 29,855 |
Total | $358,197 | $383,093 |
Components_of_Other_Long_Term_
Components of Other Long Term Liabilities (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities Other than long term debt non current | ' | ' |
Deferred compensation liability (See Note 10) | $126,621 | $100,645 |
Other long-term liabilities | 38,318 | 25,572 |
Total | $164,939 | $126,217 |
Reconciliation_of_Weighted_Ave
Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |||
Net Income Loss Per Common Share [Line Items] | ' | ' | ' | |||
Net income | $247,800 | $182,402 | $221,364 | |||
Weighted average common shares for basic net income per share | 153,319 | 146,887 | 146,573 | |||
Dilutive effect of common share equivalents from equity-based compensation | 3,282 | 3,393 | 3,794 | |||
Weighted average common shares for diluted net income per share | 156,601 | 150,280 | 150,367 | |||
Basic | $1.62 | $1.24 | $1.51 | |||
Diluted | $1.58 | $1.21 | $1.47 | |||
Anti-dilutive employee stock-based awards excluded | 1,326 | [1] | 3,314 | [1] | 4,669 | [1] |
[1] | These stock options and unvested restricted stock units were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future. |
Business_Combinations_and_Acqu1
Business Combinations and Acquisition of Non-controlling Interest - Additional Information (Detail) (SpringSoft Inc, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2013 | Oct. 01, 2012 |
SpringSoft Inc | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Percentage of acquisition of shares | 8.40% | 91.60% |
Cash consideration for acquisition | $44 | ' |
Business_Combinations_and_Acqu2
Business Combinations and Acquisition of Non-controlling Interest (SpringSoft) - Additional Information (Detail) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Oct. 01, 2012 | Jan. 31, 2013 | Oct. 01, 2012 | Oct. 31, 2012 | Oct. 31, 2012 |
USD ($) | USD ($) | USD ($) | SpringSoft Inc | SpringSoft Inc | SpringSoft Inc | SpringSoft Inc | SpringSoft Inc | SpringSoft Inc | |
USD ($) | USD ($) | TWD | Minimum | Maximum | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition price per share | ' | ' | ' | ' | ' | ' | 57 | ' | ' |
Percentage of acquisition of shares | ' | ' | ' | ' | ' | 8.40% | 91.60% | ' | ' |
Cash consideration for acquisition | ' | ' | ' | ' | $373,500,000 | ' | ' | ' | ' |
Percentage of non-controlling interest in acquired company | ' | ' | ' | ' | ' | ' | 8.40% | ' | ' |
Total purchase consideration | ' | ' | ' | 426,900,000 | ' | ' | ' | ' | ' |
Fair value of non-controlling interest acquired | ' | ' | ' | 44,000,000 | ' | ' | ' | ' | ' |
Fair value of equity awards allocated to purchase consideration | ' | ' | ' | 9,400,000 | ' | ' | ' | ' | ' |
Identifiable intangibles assets acquired | ' | ' | ' | 107,300,000 | ' | ' | ' | ' | ' |
Goodwill | 1,975,971,000 | 1,976,987,000 | 1,289,286,000 | 257,600,000 | ' | ' | ' | ' | ' |
Acquisition-related costs | ' | ' | ' | $6,600,000 | ' | ' | ' | ' | ' |
Definite lived intangible asset amortization period | ' | ' | ' | ' | ' | ' | ' | '3 years | '8 years |
Business_Combinations_and_Acqu3
Business Combinations and Acquisition of Non-controlling Interest (Magma) - Additional Information (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 |
Magma Corporation | Magma Corporation | Magma Corporation | ||||
Minimum | Maximum | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Date of acquisition | ' | ' | ' | 22-Feb-12 | ' | ' |
Acquisition price per share | ' | ' | ' | $7.35 | ' | ' |
Total purchase consideration | ' | ' | ' | $550,200,000 | ' | ' |
Fair value of assumed equity awards allocated to purchase consideration | ' | ' | ' | 6,800,000 | ' | ' |
Identifiable intangibles assets acquired | ' | ' | ' | 184,300,000 | ' | ' |
Goodwill | 1,975,971,000 | 1,976,987,000 | 1,289,286,000 | 316,300,000 | ' | ' |
Acquisition-related costs | ' | ' | ' | $33,500,000 | ' | ' |
Definite lived intangible asset amortization period | ' | ' | ' | ' | '3 years | '10 years |
Business_Combinations_and_Acqu4
Business Combinations and Acquisition of Non-controlling Interest (Other Fiscal 2012 and 2011 Acquisitions) - Additional Information (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2011 | Oct. 31, 2011 |
Other 2012 Acquisitions | Other 2012 Acquisitions | Other 2012 Acquisitions | Fiscal Two Thousand Eleven Acquisitions | Fiscal Two Thousand Eleven Acquisitions | Fiscal Two Thousand Eleven Acquisitions | ||||
Minimum | Maximum | Minimum | Maximum | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of acquisitions completed | ' | ' | ' | 5 | ' | ' | 2 | ' | ' |
Total purchase consideration | ' | ' | ' | $213,200,000 | ' | ' | $37,400,000 | ' | ' |
Goodwill arising from acquisition | 1,975,971,000 | 1,976,987,000 | 1,289,286,000 | 118,100,000 | ' | ' | 30,600,000 | ' | ' |
Identifiable intangibles assets acquired | ' | ' | ' | 73,300,000 | ' | ' | 9,300,000 | ' | ' |
Definite lived intangible asset amortization period | ' | ' | ' | ' | '1 year | '8 years | ' | '2 years | '10 years |
Acquisition-related costs | ' | ' | ' | $6,800,000 | ' | ' | ' | ' | ' |
Summary_of_Goodwill_Detail
Summary of Goodwill (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | ||
Goodwill And Intangible Assets [Abstract] | ' | ' | ||
Beginning Balance | $1,976,987 | $1,289,286 | ||
Additions | ' | 687,195 | ||
Other adjustments | -1,016 | [1] | 506 | [1] |
Ending balance | $1,975,971 | $1,976,987 | ||
[1] | Adjustments primarily relate to changes in deferred tax estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was still preliminary, and effects of foreign currency fluctuations. |
Summary_of_Intangible_Assets_D
Summary of Intangible Assets (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | $734,301 | $735,326 | ||
Accumulated Amortization | 398,876 | 269,004 | ||
Net Assets | 335,425 | 466,322 | ||
Developed And Core Technology | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 380,724 | 367,321 | ||
Accumulated Amortization | 228,065 | 159,691 | ||
Net Assets | 152,659 | 207,630 | ||
Customer Relationships | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 177,151 | 179,657 | ||
Accumulated Amortization | 69,745 | 48,368 | ||
Net Assets | 107,406 | 131,289 | ||
Contract Rights Intangible | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 140,517 | 142,641 | ||
Accumulated Amortization | 78,950 | 43,843 | ||
Net Assets | 61,567 | 98,798 | ||
Covenants Not To Compete | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 2,530 | 2,530 | ||
Accumulated Amortization | 2,480 | 2,354 | ||
Net Assets | 50 | 176 | ||
Trademarks and Trade Names | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 10,891 | 10,900 | ||
Accumulated Amortization | 5,459 | 3,793 | ||
Net Assets | 5,432 | 7,107 | ||
In-Process Research And Development (IPR&D) | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 4,298 | [1] | 17,696 | [1] |
Net Assets | 4,298 | [1] | 17,696 | [1] |
Capitalized Software Development Costs | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 18,190 | 14,581 | ||
Accumulated Amortization | 14,177 | 10,955 | ||
Net Assets | $4,013 | $3,626 | ||
[1] | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. |
Amortization_Expense_Related_t
Amortization Expense Related to Intangible Assets (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ' | |||
Amortization expense of intangible assets | $130,724 | $102,853 | $72,384 | |||
Developed And Core Technology | ' | ' | ' | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ' | |||
Amortization expense of intangible assets | 68,781 | 57,124 | 44,869 | |||
Customer Relationships | ' | ' | ' | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ' | |||
Amortization expense of intangible assets | 21,394 | 17,141 | 13,030 | |||
Contract Rights Intangible | ' | ' | ' | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ' | |||
Amortization expense of intangible assets | 35,538 | 24,113 | 10,279 | |||
Covenants Not To Compete | ' | ' | ' | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ' | |||
Amortization expense of intangible assets | 126 | 248 | 222 | |||
Trademarks and Trade Names | ' | ' | ' | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ' | |||
Amortization expense of intangible assets | 1,663 | 1,233 | 1,020 | |||
Capitalized Software Development Costs | ' | ' | ' | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ' | |||
Amortization expense of intangible assets | $3,222 | [1] | $2,994 | [1] | $2,964 | [1] |
[1] | Amortization of capitalized software development costs is included in cost of license revenue in the consolidated statements of operations. |
Estimated_Future_Amortization_
Estimated Future Amortization of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | |
Expected Amortization Expense [Line Items] | ' | |
2014 | $111,023 | |
2015 | 93,400 | |
2016 | 58,742 | |
2017 | 26,012 | |
2018 | 14,414 | |
2019 and thereafter | 27,536 | |
IPR&D | 4,298 | [1] |
Total | $335,425 | |
[1] | IPR&D projects are estimated to be completed within two years as of October 31, 2013. Assets are amortized over their useful life upon completion of the project or are written off upon abandonment. |
Estimated_Future_Amortization_1
Estimated Future Amortization of Intangible Assets (Parenthetical) (Detail) | Oct. 31, 2013 |
Y | |
Expected Amortization Expense [Line Items] | ' |
Estimated completion period of IPR&D projects, years | 2 |
Summary_of_Cash_Cash_Equivalen
Summary of Cash Cash Equivalents and Investments (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ||
Cost | $1,033,977 | $712,126 | ||
Gross Unrealized Gains | ' | ' | ||
Gross Unrealized Losses Less Than 12 Months | ' | ' | ||
Gross Unrealized Losses 12 Months or Longer | ' | ' | ||
Estimated Fair Value | 1,033,977 | [1] | 712,126 | [1] |
Non Interest Bearing Cash | ' | ' | ||
Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ||
Cost | 183,292 | 167,161 | ||
Gross Unrealized Gains | ' | ' | ||
Gross Unrealized Losses Less Than 12 Months | ' | ' | ||
Gross Unrealized Losses 12 Months or Longer | ' | ' | ||
Estimated Fair Value | 183,292 | [1] | 167,161 | [1] |
Cash Deposits and Money Market Funds | ' | ' | ||
Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ||
Cost | 839,149 | 533,221 | ||
Gross Unrealized Gains | ' | ' | ||
Gross Unrealized Losses Less Than 12 Months | ' | ' | ||
Gross Unrealized Losses 12 Months or Longer | ' | ' | ||
Estimated Fair Value | 839,149 | [1] | 533,221 | [1] |
Classified As Current Assets, Total | ' | ' | ||
Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ||
Cost | 1,022,441 | 700,382 | ||
Gross Unrealized Gains | ' | ' | ||
Gross Unrealized Losses Less Than 12 Months | ' | ' | ||
Gross Unrealized Losses 12 Months or Longer | ' | ' | ||
Estimated Fair Value | 1,022,441 | [1] | 700,382 | [1] |
Non Marketable Equity Securities | ' | ' | ||
Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ||
Cost | 11,536 | 11,744 | ||
Gross Unrealized Gains | ' | ' | ||
Gross Unrealized Losses Less Than 12 Months | ' | ' | ||
Gross Unrealized Losses 12 Months or Longer | ' | ' | ||
Estimated Fair Value | $11,536 | [1] | $11,744 | [1] |
[1] | See Note 6. Fair Value Measures for further discussion on fair values of money market funds and non-marketable equity securities. |
Financial_Assets_and_Liabiliti2
Financial Assets and Liabilities - Additional Information (Detail) | 12 Months Ended |
Oct. 31, 2013 | |
Financial Assets and Liabilities [Line Items] | ' |
Shipments period using hedges (in months) | 'One |
Minimum forward contracts terms (in months) | 'One |
Forward contracts terms (in months) | '21 months |
Period for hedge balance in OCI to be reclassified to statement of operations (in months) | '12 months |
Foreign Exchange Contracts | Maximum | ' |
Financial Assets and Liabilities [Line Items] | ' |
Duration of foreign exchange forward contracts | '1 year |
Cash Flow Hedging | Maximum | ' |
Financial Assets and Liabilities [Line Items] | ' |
Derivative maturity period (in months) | 21 |
Derivative maturity period of rolled over currency contracts (in years) | 3 |
Non-Designated Hedging Instrument | ' |
Financial Assets and Liabilities [Line Items] | ' |
Forward contracts terms (in months) | '1 month |
Effects_on_Changes_in_Fair_Val
Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Financial assets and liabilities [Abstract] | ' | ' | ' |
Gain (loss) recorded in other income (expense), net | $3,009 | $1,033 | $889 |
Notional_Amounts_of_Derivative
Notional Amounts of Derivative Instruments (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets and liabilities [Abstract] | ' | ' |
Total gross notional amount | $746,801 | $618,978 |
Net fair value | $7,199 | $390 |
Fair_Values_of_Derivative_Inst
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Designated As Hedging Instrument | Other Current Assets | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Fair values of derivative instruments | $12,417 | $5,149 |
Designated As Hedging Instrument | Other Current Liabilities | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Fair values of derivative instruments | 5,103 | 4,739 |
Non-Designated Hedging Instrument | Other Current Assets | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Fair values of derivative instruments | 20 | 68 |
Non-Designated Hedging Instrument | Other Current Liabilities | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Fair values of derivative instruments | $135 | $88 |
Income_Statement_Location_and_
Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Financial Assets and Liabilities [Line Items] | ' | ' | ' |
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | $6,107 | ($2,428) | ($8,872) |
Amount of gain (loss) reclassified from OCI (effective portion) | 6,565 | -14,235 | -1,989 |
Foreign Exchange Contracts | Revenue | ' | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' | ' |
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 2,427 | 5,212 | -5,647 |
Amount of gain (loss) reclassified from OCI (effective portion) | 7,457 | -1,868 | -8,561 |
Foreign Exchange Contracts | Operating Expenses | ' | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' | ' |
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 3,680 | -7,640 | -3,225 |
Amount of gain (loss) reclassified from OCI (effective portion) | ($892) | ($12,367) | $6,572 |
Ineffective_Portion_and_Portio
Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) (Detail) (Foreign Exchange Contracts, USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |||
Foreign Exchange Contracts | ' | ' | ' | |||
Financial Assets and Liabilities [Line Items] | ' | ' | ' | |||
Amount of gain (loss) recognized in income statement on derivatives (ineffective portion) | $293 | [1] | $38 | [1] | $74 | [1] |
Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing) | $2,518 | [2] | $1,321 | [2] | $241 | [2] |
[1] | The ineffective portion includes forecast inaccuracies. | |||||
[2] | The portion excluded from effectiveness includes the discount earned or premium paid for the contracts. |
Credit_and_Term_Loan_Facilitie
Credit and Term Loan Facilities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Feb. 17, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' |
Senior unsecured revolving credit facility entered date | 17-Feb-12 | ' | ' |
Senior unsecured revolving credit facility maximum borrowing capacity | ' | ' | $350,000,000 |
Senior unsecured term loan facility, face amount | ' | ' | 150,000,000 |
Senior unsecured term loan facility additional borrowings | 150,000,000 | ' | ' |
Payment schedule for term loan | 'Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due when the Credit Agreement expires in October 2016. | ' | ' |
Debt instrument periodic payment principal | 7,500,000 | ' | ' |
Senior unsecured term loan facility | 105,000,000 | 135,000,000 | ' |
Senior unsecured term loan facility long term | $75,000,000 | $105,000,000 | ' |
Minimum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Commitment fees percentage | 0.15% | ' | ' |
Maximum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Commitment fees percentage | 0.30% | ' | ' |
Revolver | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Borrowings, interest rate | 0.98% | ' | ' |
Term Loan | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Borrowings, interest rate | 1.13% | ' | ' |
Fair_Value_Measures_Additional
Fair Value Measures - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2014 |
Cost Method Investments | Cost Method Investments | Equity Method Investments | Equity Method Investments | Subsequent Event | ||||
Other Income Expense Net | ||||||||
Fair Value Measures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in research and development expenses | $3.60 | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration | 0.8 | ' | 0.5 | ' | ' | ' | ' | ' |
Other-than-temporary impairment | 0.5 | 1 | ' | ' | ' | ' | ' | ' |
Non-marketable equity securities | 11.7 | ' | 11.5 | 6.9 | 7 | 4.6 | 4.7 | ' |
Gain from liquidation of investment | ' | ' | ' | ' | ' | ' | ' | $6.40 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total assets | $691,528 | $345,632 |
Total liabilities | 5,731 | 5,651 |
Money Market Funds (U.S.) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash equivalents | 552,470 | 239,770 |
Foreign Currency Derivative Contracts | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Prepaid and other current assets | 12,437 | 5,217 |
Accounts payable and accrued liabilities | 5,238 | 4,827 |
Deferred Compensation Plan Assets | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Other long-term assets | 126,621 | 100,645 |
Contingent Consideration | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Accounts payable and accrued liabilities | 493 | 469 |
Other long-term liabilities | ' | 355 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total assets | 679,091 | 340,415 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Money Market Funds (U.S.) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash equivalents | 552,470 | 239,770 |
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 | 126,621 | 100,645 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total assets | 12,437 | 5,217 |
Total liabilities | 5,238 | 4,827 |
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 | 12,437 | 5,217 |
Accounts payable and accrued liabilities | 5,238 | 4,827 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total liabilities | 493 | 824 |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Accounts payable and accrued liabilities | 493 | 469 |
Other long-term liabilities | ' | $355 |
NonMarketable_Equity_Securitie
Non-Marketable Equity Securities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2012 | Oct. 31, 2011 |
Fair Value [Line Items] | ' | ' |
Write-down of long-term investments | ($452) | ($999) |
Fair Value, Measurements, Nonrecurring | Other Long-Term Assets | ' | ' |
Fair Value [Line Items] | ' | ' |
Non-marketable equity securities | ' | 92 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Other Long-Term Assets | ' | ' |
Fair Value [Line Items] | ' | ' |
Non-marketable equity securities | ' | $92 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 15, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Building | ||||
sqft | ||||
Commitment And Contingencies [Line Items] | ' | ' | ' | ' |
Rent expenses | ' | $64.40 | $62 | $58.10 |
Number of buildings to be leased | 2 | ' | ' | ' |
Total square feet of buildings | 341,000 | ' | ' | ' |
Lease initiation date | 'March 1, 2015 | ' | ' | ' |
Lease expiration period, (in years) | '15 years | ' | ' | ' |
Extended lease term, years | '19 years | ' | ' | ' |
Minimum_Lease_Commitments_Deta
Minimum Lease Commitments (Detail) (USD $) | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitment And Contingencies [Line Items] | ' |
Minimum lease payments, 2014 | $46,492 |
Minimum lease payments, 2015 | 35,951 |
Minimum lease payments, 2016 | 35,489 |
Minimum lease payments, 2017 | 32,373 |
Minimum lease payments, 2018 | 29,502 |
Minimum lease payments, thereafter | 222,943 |
Minimum lease payments, total | 402,750 |
Sublease income, 2014 | 877 |
Sublease income, 2015 | 1,428 |
Sublease income, 2016 | 1,434 |
Sublease income, 2017 | 1,451 |
Sublease income, 2018 | 1,494 |
Sublease income, thereafter | 7,004 |
Sublease income, total | 13,688 |
Net, 2014 | 45,615 |
Net, 2015 | 34,523 |
Net, 2016 | 34,055 |
Net, 2017 | 30,922 |
Net, 2018 | 28,008 |
Net, Thereafter | 215,939 |
Net, Total | $389,062 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated other comprehensive income (loss), net of tax | ' | ' |
Cumulative currency translation adjustments | ($26,848) | ($14,123) |
Unrealized gain (loss) on derivative instruments, net of taxes | -1,847 | -1,338 |
Total accumulated other comprehensive income (loss) | ($28,695) | ($15,461) |
Effect_of_Amounts_Reclassified
Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Gain (loss) on cash flow hedges, net of taxes | $6,565 | ($14,235) | ($1,989) |
Foreign Exchange Contracts | Revenue | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Gain (loss) on cash flow hedges, net of taxes | 7,457 | -1,868 | -8,561 |
Foreign Exchange Contracts | Operating Expenses | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Gain (loss) on cash flow hedges, net of taxes | ($892) | ($12,367) | $6,572 |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Dec. 31, 2002 | Dec. 03, 2013 |
Subsequent Event | |||
Stock Repurchase Program [Line Items] | ' | ' | ' |
Stock repurchase program authorized amount | ' | $500 | $500 |
Remaining amount available for further repurchases | $127.40 | ' | ' |
Stock_Repurchase_Activities_De
Stock Repurchase Activities (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |||
Stock Repurchase Program | ' | ' | ' | |||
Shares repurchased | 3,996 | 2,474 | 15,144 | |||
Average purchase price | $36.29 | $29.64 | $26.53 | |||
Aggregate purchase price | $145,016 | [1] | $73,335 | [1] | $401,836 | [1] |
Reissuance of treasury stock | 7,266 | 10,065 | 9,973 | |||
[1] | Fiscal 2011 does not include a $33.3 million equity forward contract related to an accelerated share repurchase agreement entered into by the Company in September 2011. The equity forward contract was settled with 1,105,457 shares of the Company's common stock during the first quarter of fiscal 2012. |
Stock_Repurchase_Activities_Pa
Stock Repurchase Activities (Parenthetical) (Detail) (USD $) | 12 Months Ended | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2011 | Jan. 31, 2012 |
Foreign Currency Derivative Contracts | ||
Share Repurchases [Line Items] | ' | ' |
Settlement of equity forward contract | $33,335 | ' |
Common stock issued for settlement of equity forward contract | ' | 1,105,457 |
Employee_Benefit_Plans_Employe
Employee Benefit Plans (Employee Stock Purchase Plan) - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Apr. 03, 2012 |
Y | ||||
Employee Stock Purchase Plan [Line Items] | ' | ' | ' | ' |
Threshold for employee stock purchases under ESPP, maximum value | 85.00% | ' | ' | ' |
ESPP offering period (in years) | 2 | ' | ' | ' |
Increase in number of shares authorized for issuance under plan | ' | ' | ' | 5 |
Shares issued | 2.1 | 2 | 2.2 | ' |
Weighted average purchase price of stock purchased | $22.75 | $21.65 | $17.95 | ' |
Shares reserved for future issuance under the ESPP | 3.7 | ' | ' | ' |
Employee_Benefit_Plans_Equity_
Employee Benefit Plans (Equity Compensation Plans) - Additional Information (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 | Oct. 31, 2013 | Apr. 03, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | 23-May-05 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | ||||
In Millions, except Share data, unless otherwise specified | Stock Option | Stock Option | Stock Option | Stock Option | 1994 Non-Employee Directors Stock Option Plan | 2006 Employee Equity Incentive Plan | 2006 Employee Equity Incentive Plan | 2006 Employee Equity Incentive Plan | 2006 Employee Equity Incentive Plan | 2005 Directors Plan | 2005 Directors Plan | 2005 Directors Plan | 2005 Directors Plan | 2005 Directors Plan | 2005 Directors Plan | Other Assumed Stock Plans | ||||
Stock Option | Restricted Stock Units | Stock Option | Stock Option | Stock Option | Restricted Stock | |||||||||||||||
Minimum | Maximum | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Share based compensation arrangement for options contractual term (in years) | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Additional reserved for future issuance under the 2006 Employee Plan | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Aggregate stock options outstanding | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | ' | ' | ' | 82,898 | ' | ' | ' | ' | ||||
Aggregate restricted stock units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | 52,595 | ' | ||||
Shares available for future grant | 8,472,000 | [1] | 7,352,000 | [1] | 5,911,000 | [1] | 2,606,000 | [1] | ' | ' | 8,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period, (in years) | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | '3 years | '4 years | '3 years | ' | ||||
Number of shares available contingent upon cancellation or expiration of prior plans | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Reserved for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 340,747 | 800,000 | ' | ' | ' | ' | ' | ||||
Restricted stock awards issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 298,947 | ' | ' | ' | ' | ' | ' | ||||
Aggregate grant date fair value of restricted stock awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.10 | ' | ' | ' | ' | ' | ' | ||||
Aggregate stock options granted under 2005 director plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 123,649 | ' | ' | ' | ' | ||||
Fair value of option shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.30 | ' | ' | ' | ' | ||||
Aggregate stock options outstanding under 1994 director plan | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Assumed shares remaining outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ||||
[1] | Excluding shares reserved for future issuance under the 2005 Directors Plan. |
Employee_Benefit_Plans_Restric
Employee Benefit Plans (Restricted Stock Units) - Additional Information (Detail) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Apr. 03, 2012 | Mar. 24, 2011 | Apr. 30, 2010 | Oct. 31, 2013 |
Schedule Of Restricted Stock [Line Items] | ' | ' | ' | ' |
Closing stock price | ' | ' | ' | 36.15 |
Unamortized share-based compensation expense | ' | ' | ' | 121.1 |
Weighted-average period of total compensation costs to be recognized in years | ' | ' | ' | '2 years 6 months |
Restricted Stock Units | ' | ' | ' | ' |
Schedule Of Restricted Stock [Line Items] | ' | ' | ' | ' |
Share reserve ratio | 1.25 | 2.18 | 1.36 | 1.5 |
Revised share reserve ratio | 1.5 | 1.25 | 2.18 | ' |
Restricted Stock Units | Minimum | ' | ' | ' | ' |
Schedule Of Restricted Stock [Line Items] | ' | ' | ' | ' |
Vesting period, (in years) | ' | ' | ' | '3 years |
Restricted Stock Units | Maximum | ' | ' | ' | ' |
Schedule Of Restricted Stock [Line Items] | ' | ' | ' | ' |
Vesting period, (in years) | ' | ' | ' | '4 years |
Restricted_Stock_Units_Detail
Restricted Stock Units (Detail) (Restricted Stock Units, USD $) | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 | |||
Restricted Stock Units | ' | ' | ' | ' | |||
Share Based Compensation [Line Items] | ' | ' | ' | ' | |||
Restricted Stock Awards, Beginning balance | 3,920,000 | 3,454,000 | 3,730,000 | ' | |||
Restricted Stock Units, Granted | 1,680,000 | 1,813,000 | 1,483,000 | ' | |||
Restricted Stock Units, Assumed | ' | 353,000 | [1] | ' | ' | ||
Restricted Stock Units, Vested | -1,476,000 | [2] | -1,508,000 | [2] | -1,522,000 | [2] | ' |
Restricted Stock Units, Forfeited | -141,000 | -192,000 | -237,000 | ' | |||
Restricted Stock Awards, Ending balance | 3,983,000 | 3,920,000 | 3,454,000 | 3,730,000 | |||
Weighted Average Grant Date Fair Value, Beginning balance | $27.18 | $24.28 | $22.71 | ' | |||
Granted | $35.27 | $29.52 | $26.89 | ' | |||
Assumed | ' | $30.33 | [1] | ' | ' | ||
Vested | $35.40 | [2] | $24.14 | [2] | $23.11 | [2] | ' |
Forfeited | $28.36 | $26.70 | $23.49 | ' | |||
Weighted Average Grant Date Fair Value, Ending balance | $27.51 | $27.18 | $24.28 | $22.71 | |||
Weighted Average Remaining Contractual Life | '1 year 6 months 4 days | '1 year 6 months 7 days | '1 year 5 months 23 days | '1 year 4 months 28 days | |||
Aggregate Fair Value, Vested | $52,234 | [2] | $36,402 | [2] | $35,164 | [2] | ' |
[1] | The Company assumed certain restricted stock units outstanding under various plans through acquisitions. | ||||||
[2] | The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements. |
Stock_Options_and_Restricted_S
Stock Options and Restricted Stock Units Under all Equity Plans (Except 2005 Director's Plan) (Detail) (USD $) | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Weighted- Average Exercise Price per Share, Options Exercised | $24.34 | $21.09 | $20.53 | ' | ||||
Stock Option | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Available for Grant, Beginning Balance | 7,352,000 | [1] | 5,911,000 | [1] | 2,606,000 | [1] | ' | |
Options Outstanding, Options Granted | 1,704,000 | 1,719,000 | 2,270,000 | ' | ||||
Available for Grant, Options Granted | -1,704,000 | [1] | -1,719,000 | [1] | -2,228,000 | [1] | ' | |
Options Outstanding, Options Assumed | 158,000 | [2] | 382,000 | [2] | ' | ' | ||
Available for Grant, Options Canceled/forfeited/expired | 159,000 | [1] | 631,000 | [1] | 550,000 | [1] | ' | |
Options Outstanding, Options Exercised | -4,173,000 | -7,103,000 | -6,800,000 | ' | ||||
Available for Grant, Restricted stock units granted | -2,519,000 | [1],[3] | -2,638,000 | [1],[3] | -2,182,000 | [1],[3] | ' | |
Options Outstanding, Options Canceled/forfeited/expired | -182,000 | -739,000 | -694,000 | ' | ||||
Available for Grant, Restricted stock units forfeited | 184,000 | [1],[3] | 167,000 | [1],[3] | 165,000 | [1],[3] | ' | |
Options Outstanding, Vested and expected to vest | 7,653,000 | ' | ' | ' | ||||
Available for Grant, Additional shares reserved | 5,000,000 | [1] | 5,000,000 | [1] | 7,000,000 | [1] | ' | |
Options Outstanding, Exercisable | 3,940,000 | ' | ' | ' | ||||
Available for Grants, Ending balance | 8,472,000 | [1] | 7,352,000 | [1] | 5,911,000 | [1] | 2,606,000 | [1] |
Weighted- Average Exercise Price per Share, Beginning Balance | $24.64 | $22.76 | $21.83 | ' | ||||
Weighted- Average Exercise Price per Share, Options Granted | $34.10 | $28.86 | $26.07 | ' | ||||
Weighted- Average Exercise Price per Share, Options Assumed | $23.60 | [2] | $19.15 | [2] | ' | ' | ||
Weighted- Average Exercise Price per Share, Options Exercised | $24.34 | $21.09 | $20.53 | ' | ||||
Weighted- Average Exercise Price per Share, Options Canceled/forfeited/expired | $24.17 | $25.07 | $27.24 | ' | ||||
Weighted- Average Exercise Price per Share, Ending Balance | $26.87 | $24.64 | $22.76 | $21.83 | ||||
Aggregate Intrinsic Value, Beginning Balance | $80,950 | $74,068 | $90,013 | ' | ||||
Weighted- Average Exercise Price per Share, Vested and expected to vest | $26.83 | ' | ' | ' | ||||
Aggregate Intrinsic Value, Ending Balance | 71,700 | 80,950 | 74,068 | 90,013 | ||||
Weighted- Average Exercise Price per Share, Exercisable | $24.12 | ' | ' | ' | ||||
Aggregate Intrinsic Value, Vested and expected to vest | 71,343 | ' | ' | ' | ||||
Weighted Average Remaining Contractual Life, options outstanding | '4 years 3 months 18 days | '3 years 8 months 16 days | '2 years 11 months 19 days | '2 years 9 months 18 days | ||||
Aggregate Intrinsic Value, Exercisable | $47,405 | ' | ' | ' | ||||
Weighted-Average Remaining Contractual Life , Vested and expected to vest | '4 years 3 months 11 days | ' | ' | ' | ||||
Weighted-Average Remaining Contractual Life , Exercisable | '3 years 3 months 4 days | ' | ' | ' | ||||
Stock Option | All Stock Plans | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Options Outstanding, Ending Balance | 7,726,000 | 10,219,000 | 15,960,000 | 21,184,000 | ||||
[1] | Excluding shares reserved for future issuance under the 2005 Directors Plan. | |||||||
[2] | The Company assumed options and stock appreciation rights (SARs) outstanding under various plans through acquisitions. | |||||||
[3] | These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above. |
Pretax_Intrinsic_Value_of_Opti
Pretax Intrinsic Value of Options Exercised and Their Average Exercise Prices (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Schedule of Postemployment Benefits [Line Items] | ' | ' | ' |
Intrinsic value | $46,592 | $63,048 | $42,388 |
Average exercise price per share | $24.34 | $21.09 | $20.53 |
Summary_of_Restricted_Stock_Aw
Summary of Restricted Stock Award Activities Under Twenty Zero Five Directors Plan (Detail) (Restricted Stock, USD $) | 12 Months Ended |
Oct. 31, 2013 | |
Restricted Stock | ' |
Restricted shares | ' |
Restricted Stock Awards, Beginning balance | 57,000 |
Granted | 25,000 |
Vested | -29,000 |
Forfeited | ' |
Restricted Stock Awards, Ending balance | 53,000 |
Weighted Average Grant Date Fair Value | ' |
Weighted Average Grant Date Fair Value, Beginning balance | $28.28 |
Granted | $35.40 |
Vested | $26.77 |
Forfeited | ' |
Weighted Average Grant Date Fair Value, Ending balance | $32.48 |
Stock_Option_Plans_and_Stock_P
Stock Option Plans and Stock Purchase Rights Granted Under ESPP (Detail) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Stock Option | ' | ' | ' |
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ' | ' | ' |
Expected life (in years) | '4 years 8 months 12 days | ' | '4 years 9 months 18 days |
Risk-free interest rate, minimum | 0.62% | 0.22% | 0.96% |
Risk-free interest rate, maximum | 1.66% | 0.95% | 2.28% |
Volatility, minimum | 20.61% | 22.65% | 26.96% |
Volatility, maximum | 26.47% | 29.76% | 30.30% |
Weighted average estimated fair value | $7.29 | $8.46 | $7.04 |
Stock Option | Minimum | ' | ' | ' |
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ' | ' | ' |
Expected life (in years) | ' | '1 year | ' |
Stock Option | Maximum | ' | ' | ' |
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ' | ' | ' |
Expected life (in years) | ' | '4 years 10 months 24 days | ' |
Employee Stock Purchase Plan | ' | ' | ' |
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ' | ' | ' |
Risk-free interest rate, minimum | 0.10% | 0.16% | 0.09% |
Risk-free interest rate, maximum | 0.43% | 0.34% | 0.68% |
Volatility, minimum | 17.12% | 21.95% | 19.48% |
Volatility, maximum | 21.75% | 23.20% | 27.08% |
Weighted average estimated fair value | $8.19 | $8.02 | $6.82 |
Employee Stock Purchase Plan | Minimum | ' | ' | ' |
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ' | ' | ' |
Expected life (in years) | '6 months | '6 months | '6 months |
Employee Stock Purchase Plan | Maximum | ' | ' | ' |
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ' | ' | ' |
Expected life (in years) | '2 years | '2 years | '2 years |
Stock_Compensation_Expense_Det
Stock Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock compensation expense before taxes | $67,511 | $71,414 | $56,414 |
Income tax benefit | -16,446 | -15,989 | -14,798 |
Stock compensation expense after taxes | 51,065 | 55,425 | 41,616 |
Cost Of License | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock compensation expense before taxes | 6,597 | 6,927 | 5,658 |
Cost Of Maintenance And Service | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock compensation expense before taxes | 1,628 | 1,727 | 1,416 |
Research And Development Expense | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock compensation expense before taxes | 32,423 | 32,767 | 26,747 |
Sales And Marketing Expense | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock compensation expense before taxes | 13,983 | 13,566 | 11,068 |
General And Administrative Expense | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock compensation expense before taxes | $12,880 | $16,427 | $11,525 |
Employee_Benefit_Plans_Other_R
Employee Benefit Plans (Other Retirement Plans) - Additional Information (Detail) | 12 Months Ended | ||||
Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Other Retirement Plans | Other Retirement Plans | Other Retirement Plans | Other Retirement Plans | ||
USD ($) | CAD | USD ($) | USD ($) | ||
Other Retirement Plans [Line Items] | ' | ' | ' | ' | ' |
Deferred percentage of annual cash base compensation | 50.00% | ' | ' | ' | ' |
Deferred percentage of variable cash compensation | 100.00% | ' | ' | ' | ' |
Employer contribution | ' | $21,300,000 | ' | $23,200,000 | $21,400,000 |
Pretax employee matching contributions | ' | $1,500 | 4,000 | ' | ' |
Deferred_Plan_Assets_and_Liabi
Deferred Plan Assets and Liabilities (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ||
Plan assets recorded in other long-term assets | $126,621 | $100,645 | ||
Plan liabilities recorded in other long-term liabilities | $126,621 | [1] | $100,645 | [1] |
[1] | For undistributed deferred compensation due to participants. |
Summary_of_Impact_of_Deferred_
Summary of Impact of Deferred Plan (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Employee Benefit Plan [Line Items] | ' | ' | ' |
Increase (reduction) to cost of revenue and operating expense | $18,453 | $7,498 | $2,449 |
Other income (expense), net | 18,453 | 7,498 | 2,449 |
Net increase (decrease) to net income | ' | ' | ' |
Domestic_and_Foreign_Component
Domestic and Foreign Components of Total Income Before Provision for Income Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | ' | ' | ' |
United States | $61,818 | $39,855 | $40,434 |
Foreign | 213,848 | 161,280 | 178,679 |
Income before provision for income taxes | $275,666 | $201,135 | $219,113 |
Components_of_Benefit_Provisio
Components of (Benefit) Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | ' | ' | ' |
Federal | $11,692 | ($12,443) | ($6,436) |
State | -5,949 | -547 | -2,197 |
Foreign | 29,428 | 6,826 | 474 |
Current Income Tax Expense (Benefit), Total | 35,171 | -6,164 | -8,159 |
Federal | 4,969 | 22,506 | -7,160 |
State | 933 | 14 | -2,456 |
Foreign | -13,207 | 2,377 | 15,524 |
Deferred Income Tax Expense (Benefit), Total | -7,305 | 24,897 | 5,908 |
Provision (Benefit) for income taxes | $27,866 | $18,733 | ($2,251) |
Rate_Reconciliation_Between_Pr
Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |||
Reconciliation of Statutory Federal Tax Rate [Line Items] | ' | ' | ' | |||
Statutory federal tax | $96,483 | $70,397 | $76,689 | |||
State tax (benefit), net of federal effect | -2,697 | 1,078 | -4,988 | |||
Tax credits | -24,972 | [1] | -4,289 | [1] | -19,042 | [1] |
Tax on foreign earnings less than U.S. statutory tax | -36,670 | -21,288 | -28,968 | |||
Deferred tax reversal resulting from merger of foreign affiliate | -6,808 | ' | ' | |||
Tax settlements | -1,130 | -36,882 | -32,782 | |||
Stock based compensation | 4,671 | 9,016 | 7,817 | |||
Changes in valuation allowance | -776 | 10 | 49 | |||
Other | -235 | 691 | -1,026 | |||
Provision (Benefit) for income taxes | $27,866 | $18,733 | ($2,251) | |||
[1] | As a result of the reinstatement of the federal research and development tax credit in fiscal year 2013, the Company reflected a benefit of approximately $19 million in the above amount for the period January 1, 2012 through October 31, 2013. The federal research tax credit is scheduled to expire on December 31, 2013. |
Rate_Reconciliation_Between_Pr1
Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2013 |
Reconciliation of Statutory Federal Tax Rate [Line Items] | ' |
Federal research and development tax credit | $19,000 |
Federal research and development tax credit, expiry date | 31-Dec-13 |
Components_of_Deferred_Tax_Ass
Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets And Liabilities [Line Items] | ' | ' |
Accruals and reserves | $35,548 | $30,317 |
Deferred revenue | 36,551 | 46,247 |
Deferred compensation | 45,662 | 39,186 |
Capitalized costs | 84,390 | 94,031 |
Capitalized research and development costs | 36,650 | 48,059 |
Stock compensation | 16,790 | 21,229 |
Tax loss carryovers | 63,869 | 73,492 |
Foreign tax credit carryovers | 3,532 | 10,766 |
Research and other tax credit carryovers | 108,044 | 88,973 |
Other | 3,736 | 2,449 |
Gross deferred tax assets | 434,772 | 454,749 |
Valuation allowance | -32,945 | -26,259 |
Total deferred tax assets | 401,827 | 428,490 |
Intangible assets | 82,662 | 116,639 |
Undistributed earnings of foreign subsidiaries | 11,982 | 831 |
Total deferred tax liabilities | 94,644 | 117,470 |
Net deferred tax assets | $307,183 | $311,020 |
Taxes_Additional_Information_D
Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Apr. 30, 2011 | Oct. 31, 2013 | Nov. 06, 2013 | Jan. 31, 2011 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | |
Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | Synplicity, Inc. | Taiwan | Hungary | Hungary | Hungary | Hungary | Hungary | Hungary | ||||
Fiscal Years 2010 and 2011 | Fiscal Years 2006 through 2009 | Fiscal Year 2012 | Fiscal Year 2012 | Fiscal Year 2008 | Fiscal Year 2006 Through 2008 | Fiscal Years 2009 And 2010 | Fiscal Years 2009 And 2010 | Fiscal Years 2009 And 2010 | Fiscal Year 2006 Through 2010 | Fiscal Year 2006 Through 2010 | |||||
Subsequent Event | Cash Payment Obligations | Cash payment | |||||||||||||
Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in valuation allowance | $6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized deferred tax assets | 60,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed foreign earnings | 765,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax on deferred undistributed foreign earnings | 168,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in gross unrecognized tax benefits | 8,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross unrecognized tax benefits | 117,760,000 | 109,680,000 | 177,893,000 | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits affecting effective tax rate | 117,800,000 | 75,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The sum of the amounts of estimated penalties and interest recognized in the period arising from income tax examinations | 200,000 | -5,800,000 | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The amount of estimated penalties and interest accrued as of the balance sheet date arising from income tax examinations | 800,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated potential decrease in underlying unrecognized tax benefits, minimum | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated potential decrease in underlying unrecognized tax benefits, maximum | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 4,967,000 | 80,137,000 | ' | 24,700,000 | 35,900,000 | 6,000,000 | ' | 4,000,000 | 16,500,000 | ' | ' | ' | ' | 24,200,000 | 27,000,000 |
Decrease in deferred tax assets | ' | ' | ' | ' | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax impact from tax settlements | ' | ' | ' | 15,900,000 | 32,800,000 | 1,100,000 | ' | ' | 14,700,000 | ' | 6,300,000 | ' | ' | ' | ' |
Cash payments as a result of settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,100,000 | ' | $3,200,000 | $10,900,000 | ' | ' |
Tax_Loss_and_Credit_Carryforwa
Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2013 |
Federal | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Net operating loss carryforward | 137,576 |
Credit carryforward | 117,257 |
Federal | Minimum | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Net operating loss carryforward, expiration date | '2018 |
Credit carryforward, expiration date | '2018 |
Federal | Maximum | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Net operating loss carryforward, expiration date | '2030 |
Credit carryforward, expiration date | '2033 |
Foreign Tax Credit Used in Domestic Country | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Credit carryforward | 6,654 |
Foreign Tax Credit Used in Domestic Country | Minimum | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Credit carryforward, expiration date | '2018 |
Foreign Tax Credit Used in Domestic Country | Maximum | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Credit carryforward, expiration date | '2021 |
California Research | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Credit carryforward | 112,167 |
Credit carryforward, expiration date | 'Indefinite |
Other State Research | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Credit carryforward | 8,079 |
Other State Research | Minimum | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Credit carryforward, expiration date | '2014 |
Other State Research | Maximum | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Credit carryforward, expiration date | '2032 |
State Net | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Net operating loss carryforward | 164,385 |
State Net | Minimum | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Net operating loss carryforward, expiration date | '2014 |
State Net | Maximum | ' |
Net Operating Loss and Tax Credit Carryforward [Line Items] | ' |
Net operating loss carryforward, expiration date | '2031 |
Summary_of_Reconciliation_of_B
Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits [Line Items] | ' | ' |
Beginning balance | $109,680 | $177,893 |
Increases in unrecognized tax benefits related to prior year tax positions | 4,189 | 6,053 |
Decreases in unrecognized tax benefits related to prior year tax positions | -3,328 | -35,010 |
Increases in unrecognized tax benefits related to current year tax positions | 14,128 | 9,431 |
Decreases in unrecognized tax benefits related to settlements with taxing authorities | -4,967 | -80,137 |
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations | -7,728 | -3,499 |
Increases in unrecognized tax benefits acquired | 5,718 | 35,171 |
Changes in unrecognized tax benefits due to foreign currency translation | 68 | -222 |
Ending Balance | $117,760 | $109,680 |
Subsidiaries_Remain_Subject_to
Subsidiaries Remain Subject to Tax Examination (Detail) | 12 Months Ended |
Oct. 31, 2013 | |
United States - Synopsys | ' |
Income Tax Examination [Line Items] | ' |
Year(s) Subject to Examination | 'Fiscal 2013 |
United States - Magma Design Automation | ' |
Income Tax Examination [Line Items] | ' |
Year(s) Subject to Examination | 'Fiscal years after 2009 |
California - Synopsys | ' |
Income Tax Examination [Line Items] | ' |
Year(s) Subject to Examination | 'Fiscal years after 2008 |
California - Magma Design Automation | ' |
Income Tax Examination [Line Items] | ' |
Year(s) Subject to Examination | 'Fiscal years after 2009 |
Hungary | ' |
Income Tax Examination [Line Items] | ' |
Year(s) Subject to Examination | 'Fiscal years after 2006 |
Taiwan and Japan | ' |
Income Tax Examination [Line Items] | ' |
Year(s) Subject to Examination | 'Fiscal years after 2007 |
Ireland | ' |
Income Tax Examination [Line Items] | ' |
Year(s) Subject to Examination | 'Fiscal years after 2008 |
Components_of_Other_Income_exp
Components of Other Income (expense), Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Other Income Net [Line Items] | ' | ' | ' |
Interest income | $1,891 | $1,567 | $2,117 |
Interest expense | -1,696 | -1,991 | -101 |
Gain (loss) on assets related to deferred compensation plan | 18,453 | 7,498 | 2,426 |
Foreign currency exchange gain (loss) | 6,026 | 1,676 | 1,655 |
Other, net | 4,499 | 2,361 | 173 |
Total | $29,173 | $11,111 | $6,270 |
Segment_Disclosure_Additional_
Segment Disclosure - Additional information (Detail) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Segment | Customer | Segment | |
Customer | Segment | Customer | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reportable operating segment | 1 | 1 | 1 |
Number of major customers | 1 | 1 | 1 |
Revenue | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of revenues contributed by major customers | 11.30% | 10.50% | 10.60% |
Revenues_Related_to_Operations
Revenues Related to Operations by Geographic Areas (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Consolidated | $1,962,214 | $1,756,017 | $1,535,643 |
United States | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Consolidated | 939,749 | 834,191 | 714,036 |
Europe | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Consolidated | 273,041 | 225,797 | 207,071 |
Japan | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Consolidated | 264,141 | 289,420 | 275,174 |
Asia-Pacific And Other | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Consolidated | $485,283 | $406,609 | $339,362 |
Property_and_Equipment_By_Geog
Property and Equipment By Geographic Areas (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Property and equipment, net | $197,600 | $191,243 |
United States | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Property and equipment, net | 133,310 | 133,148 |
Other Countries | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Property and equipment, net | $64,290 | $58,095 |