Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jan. 31, 2014 | Feb. 24, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Jan-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'SNPS | ' |
Entity Registrant Name | 'SYNOPSYS INC | ' |
Entity Central Index Key | '0000883241 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 154,083,614 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and cash equivalents | $893,053 | $1,022,441 | [1] |
Accounts receivable, net | 246,774 | 256,026 | [1] |
Deferred income taxes | 93,409 | 92,058 | [1] |
Income taxes receivable and prepaid taxes | 19,142 | 18,277 | [1] |
Prepaid and other current assets | 68,487 | 59,175 | [1] |
Total current assets | 1,320,865 | 1,447,977 | [1] |
Property and equipment, net | 197,335 | 197,600 | [1] |
Goodwill | 1,966,819 | 1,975,971 | [1] |
Intangible assets, net | 307,912 | 335,425 | [1] |
Long-term prepaid taxes | 7,119 | 7,935 | [1] |
Long-term deferred income taxes | 235,460 | 243,066 | [1] |
Other long-term assets | 156,646 | 150,961 | [1] |
Total assets | 4,192,156 | 4,358,935 | [1] |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | |
Accounts payable and accrued liabilities | 217,404 | 358,197 | [1] |
Accrued income taxes | 11,217 | 7,168 | [1] |
Deferred revenue | 778,082 | 827,554 | [1] |
Short-term debt | 30,000 | 30,000 | [1] |
Total current liabilities | 1,036,703 | 1,222,919 | [1] |
Long-term accrued income taxes | 50,630 | 53,064 | [1] |
Long-term deferred revenue | 54,743 | 54,736 | [1] |
Long-term debt | 67,500 | 75,000 | [1] |
Other long-term liabilities | 159,365 | 164,939 | [1] |
Total liabilities | 1,368,941 | 1,570,658 | [1] |
Stockholders' equity: | ' | ' | |
Preferred Stock, $0.01 par value: 2,000 shares authorized; none outstanding | ' | ' | [1] |
Common Stock, $0.01 par value: 400,000 shares authorized; 154,053 and 154,169 shares outstanding, respectively | 1,541 | 1,542 | [1] |
Capital in excess of par value | 1,601,935 | 1,597,244 | [1] |
Retained earnings | 1,382,199 | 1,324,854 | [1] |
Treasury stock, at cost: 3,211 and 3,095 shares, respectively | -116,035 | -106,668 | [1] |
Accumulated other comprehensive income (loss) | -46,425 | -28,695 | [1] |
Total stockholders' equity | 2,823,215 | 2,788,277 | [1] |
Total liabilities and stockholders' equity | $4,192,156 | $4,358,935 | [1] |
[1] | Derived from audited financial statements. |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | |
In Thousands, except Per Share data, unless otherwise specified | |||
Preferred Stock, par value | $0.01 | $0.01 | [1] |
Preferred Stock, shares authorized | 2,000 | 2,000 | [1] |
Preferred Stock, shares outstanding | ' | ' | [1] |
Common Stock, par value | $0.01 | $0.01 | [1] |
Common Stock, shares authorized | 400,000 | 400,000 | [1] |
Common Stock, shares outstanding | 154,053 | 154,169 | [1] |
Treasury stock, shares | 3,211 | 3,095 | [1] |
[1] | Derived from audited financial statements. |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Revenue: | ' | ' |
Time-based license | $400,146 | $385,959 |
Upfront license | 33,972 | 30,789 |
Maintenance and service | 44,833 | 58,389 |
Total revenue | 478,951 | 475,137 |
Cost of revenue: | ' | ' |
License | 62,825 | 64,492 |
Maintenance and service | 20,271 | 20,055 |
Amortization of intangible assets | 22,753 | 26,516 |
Total cost of revenue | 105,849 | 111,063 |
Gross margin | 373,102 | 364,074 |
Operating expenses: | ' | ' |
Research and development | 167,543 | 157,510 |
Sales and marketing | 105,792 | 101,758 |
General and administrative | 34,233 | 37,938 |
Amortization of intangible assets | 5,378 | 5,887 |
Total operating expenses | 312,946 | 303,093 |
Operating income | 60,156 | 60,981 |
Other income (expense), net | 11,028 | 10,749 |
Income before provision for income taxes | 71,184 | 71,730 |
Provision (benefit) for income taxes | 3,488 | 1,808 |
Net income | $67,696 | $69,922 |
Net income per share: | ' | ' |
Basic | $0.44 | $0.46 |
Diluted | $0.43 | $0.45 |
Shares used in computing per share amounts: | ' | ' |
Basic | 154,066 | 151,477 |
Diluted | 156,756 | 154,531 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Net income | $67,696 | $69,922 |
Other comprehensive income (loss): | ' | ' |
Change in foreign currency translation adjustment | -13,849 | -6,842 |
Cash flow hedges: | ' | ' |
Deferred gain (loss), net of tax of $1,329 and $344, respectively | -575 | 5,825 |
Reclassification adjustment (gain) loss included in net income, net of tax of $294 and $(56), respectively | -3,306 | 279 |
Other comprehensive income (loss), net of tax effects | -17,730 | -738 |
Comprehensive income | $49,966 | $69,184 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Deferred gain (loss), tax | $1,329 | $344 |
Reclassification adjustment (gain) loss included in net income, tax | $294 | ($56) |
Unaudited_Condensed_Consolidat5
Unaudited Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | |
Cash flow from operating activities: | ' | ' | |
Net income | $67,696 | $69,922 | |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' | |
Amortization and depreciation | 43,714 | 47,064 | |
Stock compensation | 18,118 | 17,700 | |
Allowance for doubtful accounts | -400 | 2,083 | |
Deferred income taxes | 5,891 | -4,900 | |
Loss (gain) on sales of investments | -6,529 | ' | |
Net changes in operating assets and liabilities, net of acquired assets and liabilities: | ' | ' | |
Accounts receivable | 7,910 | 20,341 | |
Prepaid and other current assets | -13,635 | -23,329 | |
Other long-term assets | -6,695 | -10,484 | |
Accounts payable and other liabilities | -134,902 | -152,207 | |
Income taxes | -10,068 | -1,597 | |
Deferred revenue | -44,992 | -56,031 | |
Net cash used in operating activities | -73,892 | -91,438 | |
Cash flows from investing activities: | ' | ' | |
Purchases of property and equipment | -14,353 | -13,980 | |
Cash paid for intangible assets | -900 | ' | |
Sales of long-term investments | 6,791 | ' | |
Capitalization of software development costs | -902 | -825 | |
Net cash used in investing activities | -9,364 | -14,805 | |
Cash flows from financing activities: | ' | ' | |
Principal payments on capital leases | -111 | -409 | |
Acquisition of non-controlling interests | ' | -44,004 | |
Repayment of debt | -7,748 | -7,619 | |
Issuances of common stock | 21,581 | 15,615 | |
Purchases of treasury stock | -54,747 | ' | |
Net cash (used in) provided by financing activities | -41,025 | -36,417 | |
Effect of exchange rate changes on cash and cash equivalents | -5,107 | -7,357 | |
Net change in cash and cash equivalents | -129,388 | -150,017 | |
Cash and cash equivalents, beginning of year | 1,022,441 | [1] | 700,382 |
Cash and cash equivalents, end of period | $893,053 | $550,365 | |
[1] | Derived from audited financial statements. |
Description_of_Business
Description of Business | 3 Months Ended |
Jan. 31, 2014 | |
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 these solutions and help its customers develop chips and electronic systems. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2014 | |
Summary of Significant Accounting Policies | ' |
Note 2. Summary of Significant Accounting Policies | |
The Company has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnote disclosures it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its unaudited condensed consolidated balance sheets, results of operations, comprehensive income and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in Synopsys’ Annual Report on Form 10-K for the fiscal year ended October 31, 2013 as filed with the SEC on December 20, 2013. | |
To prepare financial statements in conformity with GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position. | |
Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Fiscal Year End. The Company’s fiscal year 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. When a 53-week year occurs, the Company includes the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2014 and 2013 are both 52-week years. The first fiscal quarters of fiscal 2014 and 2013 ended on February 1, 2014 and February 2, 2013, respectively. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. | |
Subsequent Events. The Company has evaluated subsequent events through the date that these unaudited condensed consolidated financial statements were issued. |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Financial Assets and Liabilities | ' | ||||||||||||
Note 3. Financial Assets and Liabilities | |||||||||||||
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 4. Fair Value Measures. | |||||||||||||
Derivatives. In accordance with ASC 815, Derivatives and Hedging, the Company recognizes derivative instruments as either assets or liabilities in the unaudited condensed consolidated financial statements at fair value and provides qualitative and quantitative disclosures about such derivatives. The Company operates internationally and is exposed to potentially adverse movements in foreign currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately one month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. | |||||||||||||
The duration of forward contracts ranges from approximately one month to 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 unaudited condensed consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. | |||||||||||||
Cash Flow Hedging Activities | |||||||||||||
Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 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 of the changes in the fair values of non-designated forward contracts are summarized as follows: | |||||||||||||
Three Months ended | |||||||||||||
January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Gain (loss) recorded in other income (expense), net | $ | (943 | ) | $ | 3,133 | ||||||||
The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: | |||||||||||||
As of January 31, | As of October 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Total gross notional amount | $ | 667,009 | $ | 746,801 | |||||||||
Net fair value | $ | 7,250 | $ | 7,199 | |||||||||
The notional amounts for derivative instruments provide one measure of the transaction volume outstanding as of January 31, 2014 and October 31, 2013, 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 unaudited condensed consolidated 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 hedging | not designated as | ||||||||||||
instruments | hedging instruments | ||||||||||||
(in thousands) | |||||||||||||
As of January 31, 2014 | |||||||||||||
Other current assets | $ | 12,295 | $ | 861 | |||||||||
Accrued liabilities | $ | 5,873 | $ | 33 | |||||||||
As of October 31, 2013 | |||||||||||||
Other current assets | $ | 12,417 | $ | 20 | |||||||||
Accrued liabilities | $ | 5,103 | $ | 135 | |||||||||
The following table represents the unaudited condensed consolidated statement of operations location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax: | |||||||||||||
Location of gain (loss) | Amount of gain (loss) | Location of | Amount of | ||||||||||
recognized in OCI on | recognized in OCI on | gain (loss) | gain (loss) | ||||||||||
derivatives | derivatives | reclassified from OCI | reclassified from | ||||||||||
(effective portion) | OCI | ||||||||||||
(effective portion) | |||||||||||||
(in thousands) | |||||||||||||
Three months ended January 31, 2014 | |||||||||||||
Foreign exchange contracts | Revenue | $ | 3,188 | Revenue | $ | 2,756 | |||||||
Foreign exchange contracts | Operating expenses | (3,782 | ) | Operating expenses | 550 | ||||||||
Total | $ | (594 | ) | $ | 3,306 | ||||||||
Three months ended January 31, 2013 | |||||||||||||
Foreign exchange contracts | Revenue | $ | 2,628 | Revenue | $ | 487 | |||||||
Foreign exchange contracts | Operating expenses | 3,323 | Operating expenses | (766 | ) | ||||||||
Total | $ | 5,951 | $ | (279 | ) | ||||||||
The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense), net: | |||||||||||||
Amount of | Amount of gain (loss) | ||||||||||||
gain (loss) recognized | recognized in income | ||||||||||||
in income statement | statement on | ||||||||||||
on derivatives | derivatives | ||||||||||||
(ineffective | (excluded from | ||||||||||||
portion)(1) | effectiveness testing)(2) | ||||||||||||
(in thousands) | |||||||||||||
For the three months ended January 31, 2014 | |||||||||||||
Foreign exchange contracts | $ | 119 | $ | 1,594 | |||||||||
For the three months ended January 31, 2013 | |||||||||||||
Foreign exchange contracts | $ | 367 | $ | 471 | |||||||||
-1 | The ineffective portion includes forecast inaccuracies. | ||||||||||||
-2 | The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. |
Fair_Value_Measures
Fair Value Measures | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Fair Value Measures | ' | ||||||||||||||||
Note 4. 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 or Level 2 because they are valued using quoted market prices in an active market or alternative independent pricing sources and models utilizing market observable inputs. | |||||||||||||||||
The Company’s non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets and are therefore classified within Level 1. | |||||||||||||||||
The Company’s foreign currency derivative contracts are classified within Level 2 because these contracts are not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments. | |||||||||||||||||
The Company’s borrowings under its credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Refer to Note 7. Credit Facility. | |||||||||||||||||
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. As of January 31, 2014 and October 31, 2013, the fair value of contingent consideration liability was estimated at $0.5 million. | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below as of January 31, 2014: | |||||||||||||||||
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 | $ | 520,271 | $ | 520,271 | $ | — | $ | — | |||||||||
Prepaid and other current assets: | |||||||||||||||||
Foreign currency derivative contracts | 13,156 | — | 13,156 | — | |||||||||||||
Other long-term assets: | |||||||||||||||||
Deferred compensation plan assets | 133,890 | 133,890 | — | — | |||||||||||||
Total assets | $ | 667,317 | $ | 654,161 | $ | 13,156 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||
Foreign currency derivative contracts | $ | 5,906 | $ | — | $ | 5,906 | $ | — | |||||||||
Contingent consideration | 500 | — | — | 500 | |||||||||||||
Total liabilities | $ | 6,406 | $ | — | $ | 5,906 | $ | 500 | |||||||||
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/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 the three months ended January 31, 2014 and January 31, 2013. | |||||||||||||||||
As of January 31, 2014, the fair value of the Company’s non-marketable securities was $11.0 million, of which $6.7 million and $4.3 million were accounted for under the cost method and equity method, respectively. As of October 31, 2013 the fair value of non-marketable securities was $11.5 million, of which $6.9 million and $4.6 million were accounted for under the cost method and equity method, respectively. During the three months ended January 31, 2014, the company received a cash distribution of $6.6 million from the liquidation of one of its investments with a cost basis of $0.2 million resulting in a $6.4 million gain, which was recorded to other income (expense), net. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||
Note 5. Goodwill and Intangible Assets | |||||||||||||
Goodwill as of January 31, 2014 consisted of the following: | |||||||||||||
(in thousands) | |||||||||||||
Balance at October 31, 2013 | $ | 1,975,971 | |||||||||||
Effect of foreign currency translation | (9,152 | ) | |||||||||||
Balance at January 31, 2014 | $ | 1,966,819 | |||||||||||
Intangible assets as of January 31, 2014 consisted of the following: | |||||||||||||
Gross | Accumulated | Net Assets | |||||||||||
Assets | Amortization | ||||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 382,311 | $ | 243,652 | $ | 138,659 | |||||||
Customer relationships | 176,970 | 74,762 | 102,208 | ||||||||||
Contract rights intangible | 140,015 | 85,851 | 54,164 | ||||||||||
Covenants not to compete | 2,530 | 2,497 | 33 | ||||||||||
Trademarks and trade names | 10,879 | 5,770 | 5,109 | ||||||||||
In-process research and development (IPR&D)(1) | 3,688 | — | 3,688 | ||||||||||
Capitalized software development costs | 19,092 | 15,041 | 4,051 | ||||||||||
Total | $ | 735,485 | $ | 427,573 | $ | 307,912 | |||||||
-1 | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. | ||||||||||||
Intangible assets as of October 31, 2013 consisted 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. | ||||||||||||
Amortization expense related to intangible assets consisted of the following: | |||||||||||||
Three Months Ended | |||||||||||||
January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 15,621 | $ | 17,134 | |||||||||
Customer relationships | 5,053 | 5,373 | |||||||||||
Contract rights intangible | 7,126 | 9,377 | |||||||||||
Covenants not to compete | 17 | 33 | |||||||||||
Trademarks and trade names | 314 | 486 | |||||||||||
Capitalized software development costs(1) | 864 | 786 | |||||||||||
Total | $ | 28,995 | $ | 33,189 | |||||||||
-1 | Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed consolidated statements of operations. | ||||||||||||
The following table presents the estimated future amortization of intangible assets: | |||||||||||||
Fiscal Year | (in thousands) | ||||||||||||
Remainder of fiscal 2014 | $ | 82,555 | |||||||||||
2015 | 94,039 | ||||||||||||
2016 | 59,147 | ||||||||||||
2017 | 26,354 | ||||||||||||
2018 | 14,628 | ||||||||||||
2019 and thereafter | 27,501 | ||||||||||||
IPR&D(1) | 3,688 | ||||||||||||
Total | $ | 307,912 | |||||||||||
-1 | IPR&D projects are estimated to be completed within one year as of January 31, 2014. Assets are amortized over their useful life upon completion of the project or are written off upon abandonment. |
Liabilities
Liabilities | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Liabilities | ' | ||||||||
Note 6. Liabilities | |||||||||
Accounts payable and accrued liabilities consist of: | |||||||||
January 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Payroll and related benefits | $ | 166,099 | $ | 302,374 | |||||
Other accrued liabilities | 43,221 | 47,248 | |||||||
Accounts payable | 8,084 | 8,575 | |||||||
Total | $ | 217,404 | $ | 358,197 | |||||
Other long-term liabilities consist of: | |||||||||
January 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Deferred compensation liability | $ | 133,890 | $ | 126,621 | |||||
Other long-term liabilities | 25,475 | 38,318 | |||||||
Total | $ | 159,365 | $ | 164,939 | |||||
Credit_Facility
Credit Facility | 3 Months Ended |
Jan. 31, 2014 | |
Credit Facility | ' |
Note 7. Credit Facility | |
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 January 31, 2014, the Company had a $97.5 million outstanding balance under the Term Loan, of which $67.5 million is classified as long-term, and no outstanding balance under the Revolver. 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. 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 January 31, 2014, 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. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
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: | |||||||||
January 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Cumulative currency translation adjustments | $ | (40,696 | ) | $ | (26,848 | ) | |||
Unrealized gain (loss) on derivative instruments, net of taxes | (5,729 | ) | (1,847 | ) | |||||
Total accumulated other comprehensive income (loss) | $ | (46,425 | ) | $ | (28,695 | ) | |||
The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statement of operations: | |||||||||
Gain (loss) on cash flow hedges, net of taxes | |||||||||
Revenues | $ | 2,756 | $ | 487 | |||||
Operating expenses | 550 | (766 | ) | ||||||
Total reclassifications into net income | $ | 3,306 | $ | (279 | ) | ||||
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended |
Jan. 31, 2014 | |
Stock Repurchase Program | ' |
Note 9. Stock Repurchase Program | |
The Company’s Board of Directors (Board) previously approved a stock repurchase program pursuant to which the Company was authorized to purchase up to $500.0 million of its common stock and has periodically replenished the stock repurchase program to such amount. The Board replenished the stock repurchase program up to $500.0 million on December 3, 2013, as announced on December 4, 2013. The program does not obligate Synopsys to acquire any particular amount of common stock, and the program may be suspended or terminated at any time by Synopsys’ Chief Financial Officer or the Board. The Company repurchases shares to offset dilution caused by ongoing stock issuances from existing equity plans for equity compensation awards and issuances related to acquisitions, and when management believes it is a good use of cash. Repurchases are transacted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934 (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 January 31, 2014, $445.3 million remained available for further repurchases under the program. | |
The Company reissued 1.3 million and 1.1 million shares of treasury stock during the three months ended January 31, 2014 and January 31, 2013, respectively. |
Stock_Compensation
Stock Compensation | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Stock Compensation | ' | ||||||||
Note 10. Stock Compensation | |||||||||
The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Cost of license | $ | 1,861 | $ | 1,817 | |||||
Cost of maintenance and service | 428 | 479 | |||||||
Research and development expense | 8,916 | 8,136 | |||||||
Sales and marketing expense | 3,732 | 3,673 | |||||||
General and administrative expense | 3,181 | 3,595 | |||||||
Stock compensation expense before taxes | 18,118 | 17,700 | |||||||
Income tax benefit | (4,220 | ) | (3,959 | ) | |||||
Stock compensation expense after taxes | $ | 13,898 | $ | 13,741 | |||||
As of January 31, 2014, there was $119.4 million of unamortized share-based compensation expense, which is expected to be amortized over a weighted-average period of approximately 2.5 years. | |||||||||
The intrinsic values of equity awards exercised during the periods are as follows: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Intrinsic value of awards exercised | $ | 16,199 | $ | 7,705 |
Net_Income_per_Share
Net Income per Share | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Net Income per Share | ' | ||||||||
Note 11. Net Income per Share | |||||||||
The Company computes basic net income per share by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding, such as stock options and unvested restricted stock units and awards, during the period using the treasury stock method. | |||||||||
The table below reconciles the weighted-average common shares used to calculate basic net income per share with the weighted-average common shares used to calculate diluted net income per share: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except | |||||||||
per share amounts) | |||||||||
Numerator: | |||||||||
Net income | $ | 67,696 | $ | 69,922 | |||||
Denominator: | |||||||||
Weighted-average common shares for basic net income per share | 154,066 | 151,477 | |||||||
Dilutive effect of potential common shares from equity-based compensation | 2,690 | 3,054 | |||||||
Weighted-average common shares for diluted net income per share | 156,756 | 154,531 | |||||||
Net income per share: | |||||||||
Basic | $ | 0.44 | $ | 0.46 | |||||
Diluted | $ | 0.43 | $ | 0.45 | |||||
Anti-dilutive employee stock-based awards excluded(1) | 1,378 | 2,573 | |||||||
-1 | These stock options and unvested restricted stock units and restricted stock awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were antidilutive for the respective periods, they could be dilutive in the future. |
Segment_Disclosure
Segment Disclosure | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Segment Disclosure | ' | ||||||||
Note 12. Segment Disclosure | |||||||||
ASC 280, Segment Reporting, requires disclosures of certain information regarding operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers. | |||||||||
The Company operates in a single segment to provide software products and consulting services in the EDA software industry. In making operating decisions, the CODMs primarily consider consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Specifically, the CODMs consider where individual “seats” or licenses to the Company’s products are located in allocating revenue to particular geographic areas. Revenue is defined as revenues from external customers. Goodwill is not allocated since the Company operates in one reportable operating segment. Revenues related to operations in the United States and other geographic areas were: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Revenue: | |||||||||
United States | $ | 233,627 | $ | 233,133 | |||||
Europe | 66,654 | 63,439 | |||||||
Japan | 64,320 | 69,648 | |||||||
Asia Pacific and Other | 114,350 | 108,917 | |||||||
Consolidated | $ | 478,951 | $ | 475,137 | |||||
Geographic revenue data for multi-region, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and the Company’s methodology. | |||||||||
One customer accounted for 11.6% and 11.0% of the Company’s unaudited condensed consolidated revenue in the three months ended January 31, 2014 and 2013, respectively. |
Other_Income_Expense_net
Other Income (Expense), net | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Other Income (Expense), net | ' | ||||||||
Note 13. Other Income (Expense), net | |||||||||
The following table presents the components of other income (expense), net: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Interest income | $ | 367 | $ | 335 | |||||
Interest expense | (357 | ) | (464 | ) | |||||
Gain (loss) on assets related to executive deferred compensation plan | 1,042 | 5,413 | |||||||
Foreign currency exchange gain (loss) | 893 | 4,404 | |||||||
Other, net(1) | 9,083 | 1,061 | |||||||
Total | $ | 11,028 | $ | 10,749 | |||||
-1 | Refer to Note 4. Fair Value Measures. |
Taxes
Taxes | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Taxes | ' | ||||||||
Note 14. Taxes | |||||||||
Effective Tax Rate | |||||||||
The Company estimates its annual effective tax rate at the end of each fiscal quarter. The Company’s estimate takes into account estimations of annual pre-tax income, the geographic mix of pre-tax income and the Company’s interpretations of tax laws and possible outcomes of audits. | |||||||||
The following table presents the provision for income taxes and the effective tax rates: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Income before income taxes | $ | 71,184 | $ | 71,730 | |||||
Provision for income tax | $ | 3,488 | $ | 1,808 | |||||
Effective tax rate | 4.9 | % | 2.5 | % | |||||
The Company’s effective tax rate for the three months ended January 31, 2014 is lower than the statutory federal income tax rate of 35% primarily due to the lower tax rates applicable to its non-U.S. operations, U.S. federal and California research tax credits, and a settlement with the Internal Revenue Service (IRS) for fiscal 2012, partially offset by state taxes and non-deductible stock compensation. | |||||||||
The Company’s effective tax rate for the three months ended January 31, 2014 as compared to the three months ended January 31, 2013 was higher principally due to the reinstatement of the U.S. federal research tax credit in the first quarter of fiscal 2013 as well as the reversal of deferred taxes resulting from the merger of a foreign affiliate partially offset by tax benefits of settlement with the IRS in the first quarter of fiscal 2014 of the Company’s fiscal 2012 tax filing. The expiration of the U.S. federal research tax credit on December 31, 2013 resulted in only two months of tax credit in fiscal 2014, compared to fiscal 2013 that had an additional tax credit for ten months of fiscal 2012 due to the reinstatement of the tax credit as well as a full year tax credit for fiscal 2013. | |||||||||
The Company’s total gross unrecognized tax benefits at January 31, 2014 are $115.0 million exclusive of interest and penalties. If the total gross unrecognized tax benefits at January 31, 2014 were recognized in the future, approximately $115.0 million would decrease the effective tax rate. | |||||||||
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 $36 million. | |||||||||
IRS Examinations | |||||||||
On November 6, 2013, the Company reached final settlement with the IRS on the remaining fiscal 2012 issues and recognized approximately $10 million in unrecognized tax benefits in the first quarter of fiscal 2014. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Jan. 31, 2014 | |
Subsequent Events | ' |
Note 15. Subsequent Events | |
On February 19, 2014, the Company entered into a definitive agreement to acquire Coverity, Inc. (Coverity), a leading provider of software quality, testing, and security tools, for a total consideration of approximately $375 million in cash and assumption of outstanding unvested Coverity stock options. The acquisition is anticipated to close in the second fiscal quarter of 2014. The Company expects to fund the acquisition using a combination of cash and debt. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2014 | |
Principles of Consolidation | ' |
Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Fiscal Year End | ' |
Fiscal Year End. The Company’s fiscal year 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. When a 53-week year occurs, the Company includes the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2014 and 2013 are both 52-week years. The first fiscal quarters of fiscal 2014 and 2013 ended on February 1, 2014 and February 2, 2013, respectively. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. | |
Subsequent Events | ' |
Subsequent Events. The Company has evaluated subsequent events through the date that these unaudited condensed consolidated financial statements were issued. |
Financial_Assets_and_Liabiliti1
Financial Assets and Liabilities (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Effects on Changes in Fair Values of Non-Designated Forward Contracts | ' | ||||||||||||
The effects of the changes in the fair values of non-designated forward contracts are summarized as follows: | |||||||||||||
Three Months ended | |||||||||||||
January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Gain (loss) recorded in other income (expense), net | $ | (943 | ) | $ | 3,133 | ||||||||
Notional Amounts of Derivative Instruments | ' | ||||||||||||
The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: | |||||||||||||
As of January 31, | As of October 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Total gross notional amount | $ | 667,009 | $ | 746,801 | |||||||||
Net fair value | $ | 7,250 | $ | 7,199 | |||||||||
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet | ' | ||||||||||||
The following represents the unaudited condensed consolidated balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: | |||||||||||||
Fair Values of | Fair Values of | ||||||||||||
derivative instruments | derivative instruments | ||||||||||||
designated as hedging | not designated as | ||||||||||||
instruments | hedging instruments | ||||||||||||
(in thousands) | |||||||||||||
As of January 31, 2014 | |||||||||||||
Other current assets | $ | 12,295 | $ | 861 | |||||||||
Accrued liabilities | $ | 5,873 | $ | 33 | |||||||||
As of October 31, 2013 | |||||||||||||
Other current assets | $ | 12,417 | $ | 20 | |||||||||
Accrued liabilities | $ | 5,103 | $ | 135 | |||||||||
Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax | ' | ||||||||||||
The following table represents the unaudited condensed consolidated statement of operations location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax: | |||||||||||||
Location of gain (loss) | Amount of gain (loss) | Location of | Amount of | ||||||||||
recognized in OCI on | recognized in OCI on | gain (loss) | gain (loss) | ||||||||||
derivatives | derivatives | reclassified from OCI | reclassified from | ||||||||||
(effective portion) | OCI | ||||||||||||
(effective portion) | |||||||||||||
(in thousands) | |||||||||||||
Three months ended January 31, 2014 | |||||||||||||
Foreign exchange contracts | Revenue | $ | 3,188 | Revenue | $ | 2,756 | |||||||
Foreign exchange contracts | Operating expenses | (3,782 | ) | Operating expenses | 550 | ||||||||
Total | $ | (594 | ) | $ | 3,306 | ||||||||
Three months ended January 31, 2013 | |||||||||||||
Foreign exchange contracts | Revenue | $ | 2,628 | Revenue | $ | 487 | |||||||
Foreign exchange contracts | Operating expenses | 3,323 | Operating expenses | (766 | ) | ||||||||
Total | $ | 5,951 | $ | (279 | ) | ||||||||
Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) | ' | ||||||||||||
The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense), net: | |||||||||||||
Amount of | Amount of gain (loss) | ||||||||||||
gain (loss) recognized | recognized in income | ||||||||||||
in income statement | statement on | ||||||||||||
on derivatives | derivatives | ||||||||||||
(ineffective | (excluded from | ||||||||||||
portion)(1) | effectiveness testing)(2) | ||||||||||||
(in thousands) | |||||||||||||
For the three months ended January 31, 2014 | |||||||||||||
Foreign exchange contracts | $ | 119 | $ | 1,594 | |||||||||
For the three months ended January 31, 2013 | |||||||||||||
Foreign exchange contracts | $ | 367 | $ | 471 | |||||||||
-1 | The ineffective portion includes forecast inaccuracies. | ||||||||||||
-2 | The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. |
Fair_Value_Measures_Tables
Fair Value Measures (Tables) | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
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 January 31, 2014: | |||||||||||||||||
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 | $ | 520,271 | $ | 520,271 | $ | — | $ | — | |||||||||
Prepaid and other current assets: | |||||||||||||||||
Foreign currency derivative contracts | 13,156 | — | 13,156 | — | |||||||||||||
Other long-term assets: | |||||||||||||||||
Deferred compensation plan assets | 133,890 | 133,890 | — | — | |||||||||||||
Total assets | $ | 667,317 | $ | 654,161 | $ | 13,156 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Accounts payable and accrued liabilities: | |||||||||||||||||
Foreign currency derivative contracts | $ | 5,906 | $ | — | $ | 5,906 | $ | — | |||||||||
Contingent consideration | 500 | — | — | 500 | |||||||||||||
Total liabilities | $ | 6,406 | $ | — | $ | 5,906 | $ | 500 | |||||||||
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 | |||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Summary of Goodwill | ' | ||||||||||||
Goodwill as of January 31, 2014 consisted of the following: | |||||||||||||
(in thousands) | |||||||||||||
Balance at October 31, 2013 | $ | 1,975,971 | |||||||||||
Effect of foreign currency translation | (9,152 | ) | |||||||||||
Balance at January 31, 2014 | $ | 1,966,819 | |||||||||||
Summary of Intangible Assets | ' | ||||||||||||
Intangible assets as of January 31, 2014 consisted of the following: | |||||||||||||
Gross | Accumulated | Net Assets | |||||||||||
Assets | Amortization | ||||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 382,311 | $ | 243,652 | $ | 138,659 | |||||||
Customer relationships | 176,970 | 74,762 | 102,208 | ||||||||||
Contract rights intangible | 140,015 | 85,851 | 54,164 | ||||||||||
Covenants not to compete | 2,530 | 2,497 | 33 | ||||||||||
Trademarks and trade names | 10,879 | 5,770 | 5,109 | ||||||||||
In-process research and development (IPR&D)(1) | 3,688 | — | 3,688 | ||||||||||
Capitalized software development costs | 19,092 | 15,041 | 4,051 | ||||||||||
Total | $ | 735,485 | $ | 427,573 | $ | 307,912 | |||||||
-1 | IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment. | ||||||||||||
Intangible assets as of October 31, 2013 consisted 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. | ||||||||||||
Amortization Expense Related to Intangible Assets | ' | ||||||||||||
Amortization expense related to intangible assets consisted of the following: | |||||||||||||
Three Months Ended | |||||||||||||
January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Core/developed technology | $ | 15,621 | $ | 17,134 | |||||||||
Customer relationships | 5,053 | 5,373 | |||||||||||
Contract rights intangible | 7,126 | 9,377 | |||||||||||
Covenants not to compete | 17 | 33 | |||||||||||
Trademarks and trade names | 314 | 486 | |||||||||||
Capitalized software development costs(1) | 864 | 786 | |||||||||||
Total | $ | 28,995 | $ | 33,189 | |||||||||
-1 | Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed 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) | ||||||||||||
Remainder of fiscal 2014 | $ | 82,555 | |||||||||||
2015 | 94,039 | ||||||||||||
2016 | 59,147 | ||||||||||||
2017 | 26,354 | ||||||||||||
2018 | 14,628 | ||||||||||||
2019 and thereafter | 27,501 | ||||||||||||
IPR&D(1) | 3,688 | ||||||||||||
Total | $ | 307,912 | |||||||||||
-1 | IPR&D projects are estimated to be completed within one year as of January 31, 2014. Assets are amortized over their useful life upon completion of the project or are written off upon abandonment. |
Liabilities_Tables
Liabilities (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Accounts Payable and Accrued Liabilities | ' | ||||||||
Accounts payable and accrued liabilities consist of: | |||||||||
January 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Payroll and related benefits | $ | 166,099 | $ | 302,374 | |||||
Other accrued liabilities | 43,221 | 47,248 | |||||||
Accounts payable | 8,084 | 8,575 | |||||||
Total | $ | 217,404 | $ | 358,197 | |||||
Other Long-Term Liabilities | ' | ||||||||
Other long-term liabilities consist of: | |||||||||
January 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Deferred compensation liability | $ | 133,890 | $ | 126,621 | |||||
Other long-term liabilities | 25,475 | 38,318 | |||||||
Total | $ | 159,365 | $ | 164,939 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
Components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows: | |||||||||
January 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Cumulative currency translation adjustments | $ | (40,696 | ) | $ | (26,848 | ) | |||
Unrealized gain (loss) on derivative instruments, net of taxes | (5,729 | ) | (1,847 | ) | |||||
Total accumulated other comprehensive income (loss) | $ | (46,425 | ) | $ | (28,695 | ) | |||
Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income | ' | ||||||||
The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statement of operations: | |||||||||
Gain (loss) on cash flow hedges, net of taxes | |||||||||
Revenues | $ | 2,756 | $ | 487 | |||||
Operating expenses | 550 | (766 | ) | ||||||
Total reclassifications into net income | $ | 3,306 | $ | (279 | ) | ||||
Stock_Compensation_Tables
Stock Compensation (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Stock Compensation Arrangements | ' | ||||||||
The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Cost of license | $ | 1,861 | $ | 1,817 | |||||
Cost of maintenance and service | 428 | 479 | |||||||
Research and development expense | 8,916 | 8,136 | |||||||
Sales and marketing expense | 3,732 | 3,673 | |||||||
General and administrative expense | 3,181 | 3,595 | |||||||
Stock compensation expense before taxes | 18,118 | 17,700 | |||||||
Income tax benefit | (4,220 | ) | (3,959 | ) | |||||
Stock compensation expense after taxes | $ | 13,898 | $ | 13,741 | |||||
Schedule of Intrinsic Value of Equity Awards Exercised | ' | ||||||||
The intrinsic values of equity awards exercised during the periods are as follows: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Intrinsic value of awards exercised | $ | 16,199 | $ | 7,705 |
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Reconciliation of Weighted-Average Common Shares Used to Calculate Net Income Per Share | ' | ||||||||
The table below reconciles the weighted-average common shares used to calculate basic net income per share with the weighted-average common shares used to calculate diluted net income per share: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except | |||||||||
per share amounts) | |||||||||
Numerator: | |||||||||
Net income | $ | 67,696 | $ | 69,922 | |||||
Denominator: | |||||||||
Weighted-average common shares for basic net income per share | 154,066 | 151,477 | |||||||
Dilutive effect of potential common shares from equity-based compensation | 2,690 | 3,054 | |||||||
Weighted-average common shares for diluted net income per share | 156,756 | 154,531 | |||||||
Net income per share: | |||||||||
Basic | $ | 0.44 | $ | 0.46 | |||||
Diluted | $ | 0.43 | $ | 0.45 | |||||
Anti-dilutive employee stock-based awards excluded(1) | 1,378 | 2,573 | |||||||
-1 | These stock options and unvested restricted stock units and restricted stock awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were antidilutive for the respective periods, they could be dilutive in the future. |
Segment_Disclosure_Tables
Segment Disclosure (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Revenues Related to Operations by Geographic Areas | ' | ||||||||
Revenues related to operations in the United States and other geographic areas were: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Revenue: | |||||||||
United States | $ | 233,627 | $ | 233,133 | |||||
Europe | 66,654 | 63,439 | |||||||
Japan | 64,320 | 69,648 | |||||||
Asia Pacific and Other | 114,350 | 108,917 | |||||||
Consolidated | $ | 478,951 | $ | 475,137 | |||||
Other_Income_Expense_net_Table
Other Income (Expense), net (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Components of Other Income (Expense), Net | ' | ||||||||
The following table presents the components of other income (expense), net: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Interest income | $ | 367 | $ | 335 | |||||
Interest expense | (357 | ) | (464 | ) | |||||
Gain (loss) on assets related to executive deferred compensation plan | 1,042 | 5,413 | |||||||
Foreign currency exchange gain (loss) | 893 | 4,404 | |||||||
Other, net(1) | 9,083 | 1,061 | |||||||
Total | $ | 11,028 | $ | 10,749 | |||||
-1 | Refer to Note 4. Fair Value Measures. |
Taxes_Tables
Taxes (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Provision for Income Taxes and Effective Tax Rates | ' | ||||||||
The following table presents the provision for income taxes and the effective tax rates: | |||||||||
Three Months Ended | |||||||||
January 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Income before income taxes | $ | 71,184 | $ | 71,730 | |||||
Provision for income tax | $ | 3,488 | $ | 1,808 | |||||
Effective tax rate | 4.9 | % | 2.5 | % |
Financial_Assets_and_Liabiliti2
Financial Assets and Liabilities - Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2014 | |
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 $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Financial assets and liabilities [Abstract] | ' | ' |
Gain (loss) recorded in other income (expense), net | ($943) | $3,133 |
Notional_Amounts_of_Derivative
Notional Amounts of Derivative Instruments (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets and liabilities [Abstract] | ' | ' |
Total gross notional amount | $667,009 | $746,801 |
Net fair value | $7,250 | $7,199 |
Fair_Values_of_Derivative_Inst
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Unaudited Condensed Consolidated Balance Sheet (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Designated As Hedging Instrument | Other Current Assets | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Fair values of derivative instruments | $12,295 | $12,417 |
Designated As Hedging Instrument | Accrued Liabilities | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Fair values of derivative instruments | 5,873 | 5,103 |
Non-Designated Hedging Instrument | Other Current Assets | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Fair values of derivative instruments | 861 | 20 |
Non-Designated Hedging Instrument | Accrued Liabilities | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Fair values of derivative instruments | $33 | $135 |
Unaudited_Condensed_Consolidat6
Unaudited Condensed Consolidated Statement of Operations Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Financial Assets and Liabilities [Line Items] | ' | ' |
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | ($594) | $5,951 |
Amount of gain (loss) reclassified from OCI (effective portion) | 3,306 | -279 |
Foreign Exchange Contracts | Revenue | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 3,188 | 2,628 |
Amount of gain (loss) reclassified from OCI (effective portion) | 2,756 | 487 |
Foreign Exchange Contracts | Operating Expenses | ' | ' |
Financial Assets and Liabilities [Line Items] | ' | ' |
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | -3,782 | 3,323 |
Amount of gain (loss) reclassified from OCI (effective portion) | $550 | ($766) |
Ineffective_Portion_and_Portio
Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) (Detail) (Foreign Exchange Contracts, USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | ||
Foreign Exchange Contracts | ' | ' | ||
Financial Assets and Liabilities [Line Items] | ' | ' | ||
Amount of gain (loss) recognized in income statement on derivatives (ineffective portion) | $119 | [1] | $367 | [1] |
Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing) | $1,594 | [2] | $471 | [2] |
[1] | The ineffective portion includes forecast inaccuracies. | |||
[2] | The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts. |
Fair_Value_Measures_Additional
Fair Value Measures - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 |
Fair Value Measures [Line Items] | ' | ' | ' |
Contingent consideration | $0.50 | ' | $0.50 |
Other-than-temporary impairment | 0 | 0 | ' |
Non-marketable equity securities | 11 | ' | 11.5 |
Proceeds from liquidation of investments | 6.6 | ' | ' |
Cost basis of investment sold | 0.2 | ' | ' |
Cost Method Investments | ' | ' | ' |
Fair Value Measures [Line Items] | ' | ' | ' |
Non-marketable equity securities | 6.7 | ' | 6.9 |
Equity Method Investments | ' | ' | ' |
Fair Value Measures [Line Items] | ' | ' | ' |
Non-marketable equity securities | 4.3 | ' | 4.6 |
Other Income Expense Net | ' | ' | ' |
Fair Value Measures [Line Items] | ' | ' | ' |
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 $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total assets | $667,317 | $691,528 |
Total liabilities | 6,406 | 5,731 |
Money Market Funds (U.S.) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash equivalents | 520,271 | 552,470 |
Foreign Currency Derivative Contracts | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Prepaid and other current assets | 13,156 | 12,437 |
Accounts payable and accrued liabilities | 5,906 | 5,238 |
Deferred Compensation Plan Assets | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Other long-term assets | 133,890 | 126,621 |
Contingent Consideration | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Accounts payable and accrued liabilities | 500 | 493 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total assets | 654,161 | 679,091 |
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 | 520,271 | 552,470 |
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 | 133,890 | 126,621 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total assets | 13,156 | 12,437 |
Total liabilities | 5,906 | 5,238 |
Significant Other Observable Inputs (Level 2) | Foreign Currency Derivative Contracts | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Prepaid and other current assets | 13,156 | 12,437 |
Accounts payable and accrued liabilities | 5,906 | 5,238 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total liabilities | 500 | 493 |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Accounts payable and accrued liabilities | $500 | $493 |
Summary_of_Goodwill_Detail
Summary of Goodwill (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | |
Goodwill And Intangible Assets [Abstract] | ' | |
Beginning Balance | $1,975,971 | [1] |
Effect of foreign currency translation | -9,152 | |
Ending balance | $1,966,819 | |
[1] | Derived from audited financial statements. |
Summary_of_Intangible_Assets_D
Summary of Intangible Assets (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | $735,485 | $734,301 | ||
Accumulated Amortization | 427,573 | 398,876 | ||
Net Assets | 307,912 | 335,425 | [1] | |
Developed And Core Technology | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 382,311 | 380,724 | ||
Accumulated Amortization | 243,652 | 228,065 | ||
Net Assets | 138,659 | 152,659 | ||
Customer Relationships | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 176,970 | 177,151 | ||
Accumulated Amortization | 74,762 | 69,745 | ||
Net Assets | 102,208 | 107,406 | ||
Contract Rights Intangible | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 140,015 | 140,517 | ||
Accumulated Amortization | 85,851 | 78,950 | ||
Net Assets | 54,164 | 61,567 | ||
Covenants Not To Compete | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 2,530 | 2,530 | ||
Accumulated Amortization | 2,497 | 2,480 | ||
Net Assets | 33 | 50 | ||
Trademarks and Trade Names | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 10,879 | 10,891 | ||
Accumulated Amortization | 5,770 | 5,459 | ||
Net Assets | 5,109 | 5,432 | ||
In-Process Research And Development (IPR&D) | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 3,688 | [2] | 4,298 | [2] |
Net Assets | 3,688 | [2] | 4,298 | [2] |
Capitalized Software Development Costs | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Gross Assets | 19,092 | 18,190 | ||
Accumulated Amortization | 15,041 | 14,177 | ||
Net Assets | $4,051 | $4,013 | ||
[1] | Derived from audited financial statements. | |||
[2] | 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 $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ||
Amortization expense of intangible assets | $28,995 | $33,189 | ||
Developed And Core Technology | ' | ' | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ||
Amortization expense of intangible assets | 15,621 | 17,134 | ||
Customer Relationships | ' | ' | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ||
Amortization expense of intangible assets | 5,053 | 5,373 | ||
Contract Rights Intangible | ' | ' | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ||
Amortization expense of intangible assets | 7,126 | 9,377 | ||
Covenants Not To Compete | ' | ' | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ||
Amortization expense of intangible assets | 17 | 33 | ||
Trademarks and Trade Names | ' | ' | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ||
Amortization expense of intangible assets | 314 | 486 | ||
Capitalized Software Development Costs | ' | ' | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ' | ' | ||
Amortization expense of intangible assets | $864 | [1] | $786 | [1] |
[1] | Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed consolidated statements of operations. |
Estimated_Future_Amortization_
Estimated Future Amortization of Intangible Assets (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | |
Expected Amortization Expense [Line Items] | ' | |
Remainder of fiscal 2014 | $82,555 | |
2015 | 94,039 | |
2016 | 59,147 | |
2017 | 26,354 | |
2018 | 14,628 | |
2019 and thereafter | 27,501 | |
IPR&D | 3,688 | [1] |
Total | $307,912 | |
[1] | IPR&D projects are estimated to be completed within one year as of January 31, 2014. 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) | Jan. 31, 2014 |
Y | |
Expected Amortization Expense [Line Items] | ' |
Projects estimated to be completed | 1 |
Components_of_Accounts_Payable
Components of Accounts Payable and Accrued Liabilities (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Accounts payable and accrued liabilities Current | ' | ' | |
Payroll and related benefits | $166,099 | $302,374 | |
Other accrued liabilities | 43,221 | 47,248 | |
Accounts payable | 8,084 | 8,575 | |
Total | $217,404 | $358,197 | [1] |
[1] | Derived from audited financial statements. |
Components_of_Other_Long_Term_
Components of Other Long Term Liabilities (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Liabilities Other than long term debt non current | ' | ' | |
Deferred compensation liability | $133,890 | $126,621 | |
Other long-term liabilities | 25,475 | 38,318 | |
Total | $159,365 | $164,939 | [1] |
[1] | Derived from audited financial statements. |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Jan. 31, 2014 | Oct. 31, 2013 | 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 | 97,500,000 | 105,000,000 | ' | |
Senior unsecured term loan facility long term | $67,500,000 | $75,000,000 | [1] | ' |
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% | ' | ' | |
[1] | Derived from audited financial statements. |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Accumulated other comprehensive income (loss), net of tax | ' | ' | |
Cumulative currency translation adjustments | ($40,696) | ($26,848) | |
Unrealized gain (loss) on derivative instruments, net of taxes | -5,729 | -1,847 | |
Total accumulated other comprehensive income (loss) | ($46,425) | ($28,695) | [1] |
[1] | Derived from audited financial statements. |
Effect_of_Amounts_Reclassified
Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Gain (loss) on cash flow hedges, net of taxes | $3,306 | ($279) |
Foreign Exchange Contracts | Revenue | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Gain (loss) on cash flow hedges, net of taxes | 2,756 | 487 |
Foreign Exchange Contracts | Operating Expenses | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Gain (loss) on cash flow hedges, net of taxes | $550 | ($766) |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 03, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Stock Repurchase Program [Line Items] | ' | ' | ' |
Stock repurchase program authorized amount | $500 | $500 | ' |
Remaining amount available for further repurchases | ' | $445.30 | ' |
Treasury stock reissued | ' | 1.3 | 1.1 |
Stock_Compensation_Expense_Det
Stock Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock compensation expense before taxes | $18,118 | $17,700 |
Income tax benefit | -4,220 | -3,959 |
Stock compensation expense after taxes | 13,898 | 13,741 |
Cost Of License | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock compensation expense before taxes | 1,861 | 1,817 |
Cost Of Maintenance And Service | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock compensation expense before taxes | 428 | 479 |
Research And Development Expense | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock compensation expense before taxes | 8,916 | 8,136 |
Sales And Marketing Expense | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock compensation expense before taxes | 3,732 | 3,673 |
General And Administrative Expense | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock compensation expense before taxes | $3,181 | $3,595 |
Stock_Compensation_Additional_
Stock Compensation - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unamortized share-based compensation expense | $119.40 |
Weighted-average period of total compensation costs to be recognized in years | '2 years 6 months |
Schedule_of_Intrinsic_Value_of
Schedule of Intrinsic Value of Equity Awards Exercised (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Stock Compensation [Abstract] | ' | ' |
Intrinsic value of awards exercised | $16,199 | $7,705 |
Reconciliation_of_Weighted_Ave
Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share (Detail) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | ||
Net Income Loss Per Common Share [Line Items] | ' | ' | ||
Net income | $67,696 | $69,922 | ||
Weighted-average common shares for basic net income per share | 154,066 | 151,477 | ||
Dilutive effect of potential common shares from equity-based compensation | 2,690 | 3,054 | ||
Weighted-average common shares for diluted net income per share | 156,756 | 154,531 | ||
Basic | $0.44 | $0.46 | ||
Diluted | $0.43 | $0.45 | ||
Anti-dilutive employee stock-based awards excluded | 1,378 | [1] | 2,573 | [1] |
[1] | These stock options and unvested restricted stock units and restricted stock awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were antidilutive for the respective periods, they could be dilutive in the future. |
Segment_Disclosure_Additional_
Segment Disclosure - Additional information (Detail) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Segment | Customer | |
Customer | Segment | |
Segment Reporting Information [Line Items] | ' | ' |
Number of reportable operating segment | 1 | 1 |
Number of major customers | 1 | 1 |
Revenue | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Percentage of revenues contributed by major customers | 11.60% | 11.00% |
Revenues_Related_to_Operations
Revenues Related to Operations by Geographic Areas (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Consolidated | $478,951 | $475,137 |
United States | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Consolidated | 233,627 | 233,133 |
Europe | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Consolidated | 66,654 | 63,439 |
Japan | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Consolidated | 64,320 | 69,648 |
Asia-Pacific And Other | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Consolidated | $114,350 | $108,917 |
Components_of_Other_Income_exp
Components of Other Income (expense), Net (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | ||
Other Income Net [Line Items] | ' | ' | ||
Interest income | $367 | $335 | ||
Interest expense | -357 | -464 | ||
Gain (loss) on assets related to executive deferred compensation plan | 1,042 | 5,413 | ||
Foreign currency exchange gain (loss) | 893 | 4,404 | ||
Other, net | 9,083 | [1] | 1,061 | [1] |
Total | $11,028 | $10,749 | ||
[1] | Refer to Note 4. Fair Value Measures. |
Provision_for_Income_Taxes_and
Provision for Income Taxes and Effective Tax Rates (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Taxes | ' | ' |
Income before income taxes | $71,184 | $71,730 |
Provision for income tax | $3,488 | $1,808 |
Effective tax rate | 4.90% | 2.50% |
Taxes_Additional_Information_D
Taxes - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 |
Taxes [Line Items] | ' |
Statutory federal income tax rate | 35.00% |
Gross unrecognized tax benefits | $115 |
Unrecognized tax benefits that would affect effective tax rate | 115 |
Estimated potential decrease in underlying unrecognized tax benefits, minimum | 0 |
Estimated potential decrease in underlying unrecognized tax benefits, maximum | 36 |
Unrecognized tax benefits decrease resulting from settlement with IRS | $10 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, Coverity Inc, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Feb. 19, 2014 |
Subsequent Event | Coverity Inc | ' |
Subsequent Event [Line Items] | ' |
Purchase consideration | $375 |