Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2022 | May 18, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-19807 | |
Entity Registrant Name | SYNOPSYS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-1546236 | |
Entity Address, Address Line One | 690 EAST MIDDLEFIELD ROAD | |
Entity Address, City or Town | MOUNTAIN VIEW | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94043 | |
City Area Code | 650 | |
Local Phone Number | 584-5000 | |
Title of 12(b) Security | Common Stock(par value of $0.01 per share) | |
Trading Symbol | SNPS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 152,970,249 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000883241 | |
Current Fiscal Year End Date | --10-31 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,573,620 | $ 1,432,840 |
Short-term investments | 146,901 | 147,949 |
Total cash, cash equivalents and short-term investments | 1,720,521 | 1,580,789 |
Accounts receivable, net | 722,992 | 568,501 |
Inventories | 213,532 | 229,023 |
Prepaid and other current assets | 417,201 | 430,028 |
Total current assets | 3,074,246 | 2,808,341 |
Property and equipment, net | 491,641 | 472,398 |
Operating lease right-of-use assets, net | 585,108 | 493,251 |
Goodwill | 3,616,133 | 3,575,785 |
Intangible assets, net | 333,321 | 279,132 |
Deferred income taxes | 605,785 | 612,655 |
Other long-term assets | 504,147 | 510,698 |
Total assets | 9,210,381 | 8,752,260 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 612,221 | 741,191 |
Operating lease liabilities, current | 55,170 | 79,678 |
Deferred revenue | 1,795,267 | 1,517,623 |
Short-term debt | 0 | 74,992 |
Total current liabilities | 2,462,658 | 2,413,484 |
Operating lease liabilities, non-current | 601,317 | 487,003 |
Long-term deferred revenue | 165,911 | 136,303 |
Long-term debt | 23,775 | 25,094 |
Other long-term liabilities | 345,774 | 391,433 |
Total liabilities | 3,599,435 | 3,453,317 |
Redeemable non-controlling interest | 43,516 | 0 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $0.01 par value: 400,000 shares authorized; 152,955 and 153,062 shares outstanding, respectively | 1,530 | 1,531 |
Capital in excess of par value | 1,517,481 | 1,576,363 |
Retained earnings | 5,157,633 | 4,549,713 |
Treasury stock, at cost: 4,306 and 4,198 shares, respectively | (999,234) | (782,866) |
Accumulated other comprehensive income (loss) | (113,099) | (49,604) |
Total Synopsys stockholders’ equity | 5,564,311 | 5,295,137 |
Non-controlling interest | 3,119 | 3,806 |
Total stockholders’ equity | 5,567,430 | 5,298,943 |
Total liabilities, redeemable non-controlling interest and stockholders’ equity | $ 9,210,381 | $ 8,752,260 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2022 | Oct. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common Stock, shares outstanding (in shares) | 152,955,000 | 153,062,000 |
Treasury stock, shares (in shares) | 4,306,000 | 4,198,000 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 1,279,229 | $ 1,024,323 | $ 2,549,484 | $ 1,994,644 |
Cost of revenue: | ||||
Amortization of intangible assets | 14,455 | 11,408 | 27,815 | 23,294 |
Total cost of revenue | 252,811 | 213,986 | 509,795 | 421,985 |
Gross margin | 1,026,418 | 810,337 | 2,039,689 | 1,572,659 |
Operating expenses: | ||||
Research and development | 389,964 | 362,345 | 773,935 | 719,813 |
Sales and marketing | 191,573 | 172,754 | 372,083 | 343,382 |
General and administrative | 73,957 | 72,694 | 154,965 | 150,182 |
Amortization of intangible assets | 6,912 | 8,313 | 15,912 | 16,703 |
Restructuring charges | 311 | 0 | 12,057 | 0 |
Total operating expenses | 662,717 | 616,106 | 1,328,952 | 1,230,080 |
Operating income | 363,701 | 194,231 | 710,737 | 342,579 |
Other income (expense), net | (23,913) | 21,764 | (43,706) | 50,520 |
Income before income taxes | 339,788 | 215,995 | 667,031 | 393,099 |
Provision for income taxes | 45,896 | 21,193 | 59,798 | 36,269 |
Net income | 293,892 | 194,802 | 607,233 | 356,830 |
Net income (loss) attributed to non-controlling interest and redeemable non-controlling interest | (889) | (276) | (1,235) | (593) |
Net income attributed to Synopsys | $ 294,781 | $ 195,078 | $ 608,468 | $ 357,423 |
Net income per share attributed to Synopsys: | ||||
Basic (in USD per share) | $ 1.93 | $ 1.28 | $ 3.97 | $ 2.34 |
Diluted (in USD per share) | $ 1.89 | $ 1.24 | $ 3.88 | $ 2.27 |
Shares used in computing per share amounts: | ||||
Basic (shares) | 153,090 | 152,725 | 153,154 | 152,612 |
Diluted (shares) | 156,167 | 157,077 | 156,815 | 157,226 |
Time-based products | ||||
Revenue: | ||||
Total revenue | $ 723,821 | $ 648,794 | $ 1,431,304 | $ 1,280,084 |
Cost of revenue: | ||||
Cost of revenue | 150,690 | 134,738 | 316,089 | 262,085 |
Upfront products | ||||
Revenue: | ||||
Total revenue | 336,625 | 209,116 | 704,899 | 383,497 |
Maintenance and service | ||||
Revenue: | ||||
Total revenue | 218,783 | 166,413 | 413,281 | 331,063 |
Cost of revenue: | ||||
Cost of revenue | $ 87,666 | $ 67,840 | $ 165,891 | $ 136,606 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 293,892 | $ 194,802 | $ 607,233 | $ 356,830 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (39,999) | (3,171) | (40,612) | 14,762 |
Changes in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented | (1,173) | 0 | (1,673) | 0 |
Cash flow hedges: | ||||
Deferred gains (losses), net of tax $9,181 and $9,411, for the three and six months ended April 30, 2022, respectively, and of $438 and $(967) for each of the same periods in fiscal 2021, respectively. | (21,132) | 1,214 | (22,717) | 5,307 |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(170) and $(472), for the three and six months ended April 30, 2022, respectively, and of $1,463 and $2,348 for each of the same periods in fiscal 2021, respectively. | 662 | (4,623) | 1,507 | (7,350) |
Other comprehensive income (loss), net of tax effects | (61,642) | (6,580) | (63,495) | 12,719 |
Comprehensive income | 232,250 | 188,222 | 543,738 | 369,549 |
Less: net income (loss) attributed to non-controlling interest and redeemable non-controlling interest | (889) | (276) | (1,235) | (593) |
Comprehensive income attributed to Synopsys | $ 233,139 | $ 188,498 | $ 544,973 | $ 370,142 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Deferred gains (losses), tax | $ 9,181 | $ 438 | $ 9,411 | $ (967) |
Reclassification adjustment on deferred (gains) losses included in net income, tax | $ (170) | $ 1,463 | $ (472) | $ 2,348 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | [1] | Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | [1] | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Synopsys Stockholders’ Equity | Total Synopsys Stockholders’ EquityCumulative Effect, Period of Adoption, Adjustment | Non-controlling Interest | |
Balance (in shares) at Oct. 31, 2020 | 152,618 | |||||||||||||
Beginning balance at Oct. 31, 2020 | $ 4,912,367 | $ 1,528 | $ 1,653,166 | $ 3,795,397 | $ (488,613) | $ (54,074) | $ 4,907,404 | $ 4,963 | ||||||
Beginning balance (Retained earnings adjustment due to adoption of ASC 326) at Oct. 31, 2020 | $ (3,200) | $ (3,200) | $ (3,200) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 356,830 | 357,423 | 357,423 | (593) | ||||||||||
Other comprehensive income (loss), net of tax effects | $ 12,719 | 12,719 | 12,719 | |||||||||||
Purchases of treasury stock (in shares) | (1,593) | (1,593) | ||||||||||||
Purchases of treasury stock | $ (398,082) | $ (16) | 16 | (398,082) | (398,082) | |||||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 1,529 | 1,529 | ||||||||||||
Common stock issued, net of shares withheld for employee taxes | $ 48,503 | $ 14 | (136,749) | 185,238 | 48,503 | |||||||||
Stock-based compensation | 163,368 | 163,368 | 163,368 | |||||||||||
Balance (in shares) at Apr. 30, 2021 | 152,554 | |||||||||||||
Ending balance at Apr. 30, 2021 | 5,092,505 | $ 1,526 | 1,679,801 | 4,149,620 | (701,457) | (41,355) | 5,088,135 | 4,370 | ||||||
Balance (in shares) at Jan. 31, 2021 | 152,364 | |||||||||||||
Beginning balance at Jan. 31, 2021 | 4,886,898 | $ 1,526 | 1,589,175 | 3,954,542 | (628,216) | (34,775) | 4,882,252 | 4,646 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 194,802 | 195,078 | 195,078 | (276) | ||||||||||
Other comprehensive income (loss), net of tax effects | $ (6,580) | (6,580) | (6,580) | |||||||||||
Purchases of treasury stock (in shares) | (756) | (756) | ||||||||||||
Purchases of treasury stock | $ (195,211) | $ (8) | 8 | (195,211) | (195,211) | |||||||||
Equity forward contract, net | $ 50,000 | 50,000 | 50,000 | |||||||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 946 | 946 | ||||||||||||
Common stock issued, net of shares withheld for employee taxes | $ 83,010 | $ 8 | (38,968) | 121,970 | 83,010 | |||||||||
Stock-based compensation | 79,586 | 79,586 | 79,586 | |||||||||||
Balance (in shares) at Apr. 30, 2021 | 152,554 | |||||||||||||
Ending balance at Apr. 30, 2021 | 5,092,505 | $ 1,526 | 1,679,801 | 4,149,620 | (701,457) | (41,355) | 5,088,135 | 4,370 | ||||||
Balance (in shares) at Oct. 31, 2021 | 153,062 | |||||||||||||
Beginning balance at Oct. 31, 2021 | 5,298,943 | $ 1,531 | 1,576,363 | 4,549,713 | (782,866) | (49,604) | 5,295,137 | 3,806 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 607,781 | 608,468 | 608,468 | (687) | ||||||||||
Other comprehensive income (loss), net of tax effects | $ (63,495) | (63,495) | (63,495) | |||||||||||
Purchases of treasury stock (in shares) | (1,685) | (1,685) | ||||||||||||
Purchases of treasury stock | $ (535,000) | $ (16) | 16 | (535,000) | (535,000) | |||||||||
Equity forward contract, net | $ 35,000 | 35,000 | 35,000 | |||||||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 1,578 | 1,578 | ||||||||||||
Common stock issued, net of shares withheld for employee taxes | $ 18,917 | $ 15 | (299,730) | 318,632 | 18,917 | |||||||||
Stock-based compensation | 205,832 | 205,832 | 205,832 | |||||||||||
Adjustments to redeemable non-controlling interest | (548) | (548) | (548) | |||||||||||
Balance (in shares) at Apr. 30, 2022 | 152,955 | |||||||||||||
Ending balance at Apr. 30, 2022 | 5,567,430 | $ 1,530 | 1,517,481 | 5,157,633 | (999,234) | (113,099) | 5,564,311 | 3,119 | ||||||
Balance (in shares) at Jan. 31, 2022 | 153,256 | |||||||||||||
Beginning balance at Jan. 31, 2022 | 5,390,233 | $ 1,533 | 1,430,226 | 4,863,400 | (856,929) | (51,457) | 5,386,773 | 3,460 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 294,440 | 294,781 | 294,781 | (341) | ||||||||||
Other comprehensive income (loss), net of tax effects | $ (61,642) | (61,642) | (61,642) | |||||||||||
Purchases of treasury stock (in shares) | (984) | [2] | (984) | |||||||||||
Purchases of treasury stock | $ (290,000) | [2] | $ (9) | 9 | (290,000) | (290,000) | ||||||||
Equity forward contract, net | $ 40,000 | 40,000 | 40,000 | |||||||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 683 | [2] | 683 | |||||||||||
Common stock issued, net of shares withheld for employee taxes | $ 84,886 | $ 6 | (62,815) | 147,695 | 84,886 | |||||||||
Stock-based compensation | 110,061 | 110,061 | 110,061 | |||||||||||
Adjustments to redeemable non-controlling interest | (548) | (548) | (548) | |||||||||||
Balance (in shares) at Apr. 30, 2022 | 152,955 | |||||||||||||
Ending balance at Apr. 30, 2022 | $ 5,567,430 | $ 1,530 | $ 1,517,481 | $ 5,157,633 | $ (999,234) | $ (113,099) | $ 5,564,311 | $ 3,119 | ||||||
[1] | At the beginning of fiscal 2021, we adopted the Accounting Standards Codification (ASC) 326, Measurement of Credit Losses on Financial Instruments, issued by the Financial Accounting Standards Board (FASB). ASC 326 replaced the incurred loss methodology with an expected loss methodology. | |||||||||||||
[2] | Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Cash flow from operating activities: | ||
Net income attributed to Synopsys | $ 608,468 | $ 357,423 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and depreciation | 111,962 | 100,066 |
Reduction of operating lease right-of-use assets | 42,412 | 42,711 |
Amortization of capitalized costs to obtain revenue contracts | 34,574 | 30,475 |
Stock-based compensation | 205,832 | 163,368 |
Allowance for credit losses | (4,516) | 10,051 |
Deferred income taxes | 8,944 | (16,461) |
Other non-cash | 6,244 | (401) |
Net changes in operating assets and liabilities, net of acquired assets and liabilities: | ||
Accounts receivable | (169,785) | 157,637 |
Inventories | 7,725 | (38,305) |
Prepaid and other current assets | (2,417) | (45,972) |
Other long-term assets | (8,701) | (97,519) |
Accounts payable and accrued liabilities | (181,008) | (96,798) |
Operating lease liabilities | (43,963) | (41,105) |
Income taxes | (34,246) | (8,386) |
Deferred revenue | 324,176 | 183,512 |
Net cash provided by operating activities | 905,701 | 700,296 |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of short-term investments | 43,653 | 0 |
Purchases of short-term investments | (45,158) | 0 |
Proceeds from sales of long-term investments | 582 | 0 |
Purchases of long-term investments | (7,000) | 0 |
Purchases of property and equipment | (67,367) | (44,060) |
Cash paid for acquisitions, net of cash acquired | (109,060) | (74,626) |
Capitalization of software development costs | (1,065) | (1,264) |
Other | (600) | (800) |
Net cash used in investing activities | (186,015) | (120,750) |
Cash flows from financing activities: | ||
Repayment of debt | (75,938) | (13,194) |
Issuances of common stock | 120,710 | 103,203 |
Payments for taxes related to net share settlement of equity awards | (101,126) | (54,664) |
Purchases of treasury stock | (500,000) | (398,082) |
Other | (2,709) | (1,000) |
Net cash used in financing activities | (559,063) | (363,737) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (19,955) | 6,457 |
Net change in cash, cash equivalents and restricted cash | 140,668 | 222,266 |
Cash, cash equivalents and restricted cash, beginning of year | 1,435,183 | 1,237,970 |
Cash, cash equivalents and restricted cash, end of period | $ 1,575,851 | $ 1,460,236 |
Description of Business
Description of Business | 6 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Synopsys, Inc. (Synopsys, we, our or us) provides products and services used across the entire silicon to software spectrum, from engineers creating advanced semiconductors to software developers seeking to ensure the security and quality of their code. We are a global leader in electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs), also known as chips. We also offer semiconductor intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. We provide software and hardware used to validate the electronic systems that incorporate chips and the software that runs on them. We also provide technical services and support to help our customers develop advanced chips and electronic systems. These products and services are part of our Semiconductor & System Design segment. We are also a leading provider of software tools and services that improve the security, quality and compliance of software in a wide variety of industries, including electronics, financial services, automotive, medicine, energy and industrials. These tools and services are part of our Software Integrity segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies We have 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, we have condensed or omitted certain information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). In management’s opinion, we have made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present our unaudited condensed consolidated balance sheets, results of operations, comprehensive income, stockholders’ equity and cash flows. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021 as filed with the SEC on December 13, 2021 (our Annual Report). Use of Estimates. To prepare financial statements in conformity with U.S. GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on our operating results and financial position. Principles of Consolidation. The unaudited condensed consolidated financial statements include our accounts and the accounts of our subsidiaries. All intercompany accounts and transactions have been eliminated. Fiscal Year End. Our fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, we have a 53-week year. When a 53-week year occurs, we include the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2022 and 2021 are both 52-week years. Fiscal 2022 will end on October 29, 2022. Fiscal 2021 ended on October 30, 2021. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. Significant Accounting Policies. There have been no material changes to our significant accounting policies included in our Annual Report, other than our accounting policy for redeemable non-controlling interest . Redeemable Non-controlling Interest. Non-controlling interest that is not solely redeemable within our control is reported as the temporary equity in our unaudited condensed consolidated balance sheets. The carrying value of the redeemable non-controlling interest equals the redemption value at the end of each reporting period, after giving effect to the change from the net income (loss) attributable to the redeemable non-controlling interest. We adjust the redemption value of the non-controlling interest on a quarterly basis and changes in the estimated redemption value are recorded with corresponding adjustments against retained earnings. Recently Adopted Accounting Pronouncements In December 2019, FASB issued Accounting Standards Update (ASU) 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. We adopted the standard as of the beginning of fiscal 2022 on a prospective basis and the adoption of this standard did not have a material impact on our unaudited condensed consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. We early adopted the standard in the second quarter of fiscal 2022 and the adoption had no material retrospective impact on our unaudited condensed consolidated financial statements for acquisitions completed in fiscal 2022. Any future impact will be dependent on the facts and circumstances of future acquisitions. |
Revenue
Revenue | 6 Months Ended |
Apr. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue The following table showed the percentage of revenue by product groups: Three Months Ended Six Months Ended 2022 2021 2022 2021 EDA 50.2 % 57.4 % 50.0 % 56.3 % IP & System Integration 40.7 % 33.1 % 41.1 % 34.0 % Software Integrity Products & Services 8.8 % 9.2 % 8.6 % 9.3 % Other 0.3 % 0.3 % 0.3 % 0.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % Contract Balances The contract assets indicated below are presented as prepaid and other current assets in the unaudited condensed consolidated balance sheets. The contract assets are transferred to receivables when the rights to invoice and receive payment become unconditional. Unbilled receivables are presented as accounts receivable, net, in the unaudited condensed consolidated balance sheets. Contract balances were as follows: As of April 30, 2022 October 31, 2021 (in thousands) Contract assets, net $ 235,705 $ 284,574 Unbilled receivables $ 38,022 $ 35,589 Deferred revenue $ 1,961,178 $ 1,653,926 During the three and six months ended April 30, 2022, we recognized revenue of $327.5 million and $937.0 million, respectively, that was included in the deferred revenue balance as of October 31, 2021. Contracted but unsatisfied or partially unsatisfied performance obligations were approximately $7.3 billion as of April 30, 2022, which includes $1.0 billion in non-cancellable Flexible Spending Account (FSA) commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date. We have elected to exclude future sales-based royalty payments from the remaining performance obligations. Approximately 41% of the contracted but unsatisfied or partially unsatisfied performance obligations as of April 30, 2022, excluding non-cancellable FSA, are expected to be recognized over the next 12 months, with the remainder recognized thereafter. During the three and six months ended April 30, 2022, we recognized $37.7 million and $69.7 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods. During the three and six months ended April 30, 2021, we recognized $34.5 million and $60.8 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods. Costs of Obtaining a Contract with Customer |
Business Combinations
Business Combinations | 6 Months Ended |
Apr. 30, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations During the three months ended January 31, 2022, we completed an acquisition for purchase consideration of $20.0 million, net of cash acquired. The preliminary purchase price allocations were $4.3 million of identifiable intangible assets and $15.7 million of goodwill, which were attributable to the Semiconductor & System Design reporting segment. There was no tax deductible goodwill related to the acquisition. Acquisition of Equity Interest in OpenLight Photonics, Inc. (OpenLight) During the three months ended April 30, 2022, we acquired 75% equity interest in OpenLight for $90.0 million in cash consideration. The remaining 25% equity interest in OpenLight is held by Juniper Networks, Inc. (the Minority Investor) from their contribution of IP and certain tangible assets. The preliminary purchase price allocations were $94.0 million of identifiable intangible assets and $45.1 million of goodwill, which were attributable to the Semiconductor & System Design reporting segment. The goodwill was mainly attributable to the assembled workforce and planned growth in new markets. There was no tax deductible goodwill related to the acquisition. The agreement with the Minority Investor contains redemption features whereby the interest held by the Minority Investor is redeemable either (i) at the option of the Minority Investor on or after the third anniversary of the acquisition or sooner in certain circumstances or (ii) at our option beginning on the third anniversary of the acquisition. This option is exercisable at the greater of fair value at the time of redemption or $30.0 million and was valued at $10.1 million, resulting in a total consideration of $100.1 million. As of April 30, 2022, the carrying amount of the redeemable non-controlling interest was recorded at its estimated fair value of $43.5 million in the unaudited condensed consolidated balance sheet. We have included the financial results of these acquisitions in our unaudited condensed consolidated financial statements from the date of acquisition. We do not consider these acquisitions to be material, individually or in the aggregate, to our unaudited condensed consolidated financial statements. Preliminary Fair Value Estimates The preliminary fair value estimates for the assets acquired and liabilities assumed for all acquisitions completed within 12 months from the applicable acquisition date are not yet finalized and may change as additional information becomes available during the respective measurement periods. The primary areas of those preliminary estimates relate to certain tangible assets and liabilities, identifiable intangible assets, and income taxes. Acquisition-Related Transaction Costs Transaction costs were $4.0 million and $6.1 million during the three and six months ended April 30, 2022, respectively. Transaction costs were $2.3 million and $5.9 million during the three and six months ended April 30, 2021, respectively. These costs mainly consisted of professional fees and administrative costs and were expensed as incurred in our unaudited condensed consolidated statements of income. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Apr. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsGoodwill The changes in the carrying amount of goodwill during the six months ended April 30, 2022 were as follows: (in thousands) Balance at October 31, 2021 $ 3,575,785 Additions 60,797 Adjustments 1,285 Effect of foreign currency translation (21,734) Balance at April 30, 2022 $ 3,616,133 During the six months ended April 30, 2022, we finalized certain estimates impacting total purchase consideration for certain acquisitions and recorded the resulting measurement period adjustments which increased goodwill. Intangible Assets Intangible assets as of April 30, 2022 consisted of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,010,204 $ 775,334 $ 234,870 Customer relationships 404,083 322,380 81,703 Contract rights intangible 192,061 188,429 3,632 Trademarks and trade names 43,095 32,355 10,740 Capitalized software development costs 47,162 44,786 2,376 Total $ 1,696,605 $ 1,363,284 $ 333,321 Intangible assets as of October 31, 2021 consisted of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 911,903 $ 748,759 $ 163,144 Customer relationships 404,571 308,355 96,216 Contract rights intangible 193,317 188,231 5,086 Trademarks and trade names 43,095 31,155 11,940 Capitalized software development costs 46,098 43,352 2,746 Total $ 1,598,984 $ 1,319,852 $ 279,132 Amortization expense related to intangible assets consisted of the following: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Core/developed technology $ 13,728 $ 10,969 $ 26,576 $ 21,986 Customer relationships 6,312 7,703 14,497 15,482 Contract rights intangible 727 439 1,454 1,309 Trademarks and trade names 600 610 1,200 1,220 Capitalized software development costs (1) 681 1,072 1,433 2,110 Total $ 22,048 $ 20,793 $ 45,160 $ 42,107 (1) Amortization of capitalized software development costs is included in cost of products revenue in the unaudited condensed consolidated statements of income. The following table presented the estimated future amortization of intangible assets as of April 30, 2022: Fiscal year (in thousands) Remainder of fiscal 2022 $ 46,929 2023 80,803 2024 69,626 2025 53,319 2026 40,895 2027 and thereafter 41,749 Total $ 333,321 |
Balance Sheets Components
Balance Sheets Components | 6 Months Ended |
Apr. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheets Components | Balance Sheets Components As of April 30, 2022 October 31, 2021 (in thousands) Other long-term assets: Deferred compensation plan assets $ 297,706 $ 343,820 Capitalized commission, net 107,424 92,249 Other long-term assets 99,017 74,629 Total $ 504,147 $ 510,698 Accounts payable and accrued liabilities: Payroll and related benefits $ 394,306 $ 581,687 Other accrued liabilities 143,444 132,091 Accounts payable 74,471 27,413 Total $ 612,221 $ 741,191 Other long-term liabilities: Deferred compensation plan liabilities $ 297,703 $ 343,820 Other long-term liabilities 48,071 47,613 Total $ 345,774 $ 391,433 |
Financial Assets and Liabilitie
Financial Assets and Liabilities | 6 Months Ended |
Apr. 30, 2022 | |
Financial Assets And Liabilities [Abstract] | |
Financial Assets and Liabilities | Financial Assets and Liabilities Short-term investments. G ross unrealized gains and losses on our available-for-sale debt securities as of April 30, 2022 were not significant. The stated maturities of our available-for-sale debt securities as of April 30, 2022 were as follows: Amortized Cost Fair Value (in thousands) less than 1 year $ 60,841 $ 60,380 1-5 years 81,611 80,291 5-10 years 4,570 4,505 >10 years 1,798 1,725 Total $ 148,820 $ 146,901 As of April 30, 2022, the balances of our cash equivalents and short-term investments were as follows: Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 127,321 $ — $ — $ — $ 127,321 Total: $ 127,321 $ — $ — $ — $ 127,321 Short-term investments: U.S. government agency & T-bills $ 14,840 $ — $ (81) $ — $ 14,759 Municipal bonds 3,105 — (79) — 3,026 Corporate debt securities 101,504 — (1,414) — 100,090 Asset-backed securities 29,371 — (345) — 29,026 Total: $ 148,820 $ — $ (1,919) $ — $ 146,901 (1) See Note 8. Fair Value Measurements for further discussion on fair values of cash equivalents and short-term investments. As of October 31, 2021, the balances of our cash equivalents and short-term investments were as follows: Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 172,934 $ — $ — $ — $ 172,934 Total: $ 172,934 $ — $ — $ — $ 172,934 Short-term investments: U.S. government agency & T-bills $ 6,447 $ — $ (5) $ — $ 6,442 Municipal bonds 4,588 — (12) — 4,576 Corporate debt securities 103,615 7 (170) — 103,452 Asset-backed securities 33,545 6 (72) — 33,479 Total: $ 148,195 $ 13 $ (259) $ — $ 147,949 (1) See Note 8. Fair Value Measurements for further discussion on fair values of cash equivalents and short-term investments. Restricted cash. We include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the unaudited condensed consolidated statements of cash flows. Restricted cash is primarily associated with office leases. The following table provided a reconciliation of cash, cash equivalents and restricted cash included in the unaudited condensed consolidated balance sheets: As of April 30, 2022 October 31, 2021 (in thousands) Cash and cash equivalents $ 1,573,620 $ 1,432,840 Restricted cash included in prepaid and other current assets 1,517 1,560 Restricted cash included in other long-term assets 714 783 Total cash, cash equivalents and restricted cash $ 1,575,851 $ 1,435,183 Non-marketable equity securities. Our portfolio of non-marketable equity securities consists of strategic investments in privately held companies. There were no impairments of non-marketable equity securities during the three and six months ended April 30, 2022. There were no impairments of non-marketable equity securities during the three and six months ended April 30, 2021. Derivatives We recognize derivative instruments as either assets or liabilities in the unaudited condensed consolidated balance sheets at fair value and provide qualitative and quantitative disclosures about such derivatives. We operate internationally and are exposed to potentially adverse movements in foreign currency exchange rates. We enter into hedges in the form of foreign currency forward contracts to reduce our exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately one month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. The duration of forward contracts ranges from approximately one month to 25 months, the majority of which are short-term. We do not use foreign currency forward contracts for speculative or trading purposes. We enter into foreign exchange forward contracts with high credit quality financial institutions that are rated "A" or above and to date have not experienced nonperformance by counterparties. In addition, we mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty and anticipate continued performance by all counterparties to such agreements. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the 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. The cash flow impact upon settlement of the derivative contracts will be included in net cash provided by operating activities in the unaudited condensed consolidated statements of cash flows. Cash Flow Hedging Activities Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 25 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to our foreign currency risk, which can be up to three years. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on the hedged transactions. The related gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (loss) (OCI) in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. We expect a majority of the hedge balance in OCI to be reclassified to the statements of income within the next 12 months. We did not record any gains or losses related to discontinuation of cash flow hedges during the six months ended April 30, 2022 and 2021. Non-designated Hedging Activities Our foreign exchange forward contracts that are used to hedge non-functional currency denominated balance sheet assets and liabilities are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the underlying assets and liabilities, which are also recorded in other income (expense), net. The duration of the forward contracts for hedging our balance sheet exposure is approximately one month. We also have certain foreign exchange forward contracts for hedging certain international revenues and expenses that are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the foreign currency in operating income. The duration of these forward contracts is usually less than one year. The overall goal of our hedging program is to minimize the impact of currency fluctuations on the net income over the fiscal year. The effects of the non-designated derivative instruments on our unaudited condensed consolidated statements of income were summarized as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Gains (losses) recorded in other income (expense), net $ (5,707) $ 1,128 $ (5,261) $ 2,257 The notional amounts in the table below for derivative instruments provided one measure of the transaction volume outstanding: As of April 30, 2022 October 31, 2021 (in thousands) Total gross notional amounts $ 1,290,445 $ 1,176,152 Net fair value $ 6,580 $ 13,404 Our exposure to the market gains or losses will vary over time as a function of currency exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. The following table represented the unaudited condensed consolidated balance sheets location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: Fair values of Fair values of (in thousands) Balance at April 30, 2022 Other current assets $ 19,546 $ 2,454 Accrued liabilities $ 15,289 $ 131 Balance at October 31, 2021 Other current assets $ 15,455 $ 17 Accrued liabilities $ 2,027 $ 42 The following table represented the location of the amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax in the unaudited condensed consolidated statements of income: Location of gains (losses) recognized in OCI on derivatives Amount of gains (losses) recognized in OCI on Location of Amount of (in thousands) Three months ended Foreign exchange contracts Revenue $ (7,008) Revenue $ 229 Foreign exchange contracts Operating expenses (14,124) Operating expenses (891) Total $ (21,132) $ (662) Three months ended Foreign exchange contracts Revenue $ 1,804 Revenue $ 921 Foreign exchange contracts Operating expenses (590) Operating expenses 3,702 Total $ 1,214 $ 4,623 Six months ended Foreign exchange contracts Revenue $ (7,825) Revenue $ (342) Foreign exchange contracts Operating expenses (14,892) Operating expenses (1,165) Total $ (22,717) $ (1,507) Six months ended Foreign exchange contracts Revenue $ 1,641 Revenue $ 1,034 Foreign exchange contracts Operating expenses 3,666 Operating expenses 6,316 Total $ 5,307 $ 7,350 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes guidelines and enhances disclosure requirements for fair value measurements. The accounting guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance also establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement: Level 1 —Observable inputs that reflect quoted prices (unadjusted) for identical instruments in active markets; Level 2 —Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 —Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. On a recurring basis, we measure the fair value of certain of our assets and liabilities, which include cash equivalents, non-qualified deferred compensation plan assets, and foreign currency derivative contracts. Our cash equivalents and short-term investments are classified within Level 1 or Level 2 because they are valued using quoted market prices in an active market or alternative independent pricing sources and models utilizing market observable inputs. Our non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets and are therefore classified within Level 1. Our foreign currency derivative contracts are classified within Level 2 because these contracts are not actively traded, and the valuation inputs are based on quoted prices and market observable data of similar instruments. Our borrowings under the credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available for our debt with similar terms and maturities. See Note 10. Credit and Term Loan Facilities for more information on these borrowings. Assets/Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis were summarized below as of April 30, 2022: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 127,321 127,321 Short-term investments: U.S. government agency & T-bills 14,759 14,759 Municipal bonds 3,026 3,026 Corporate debt securities 100,090 100,090 Asset-backed securities 29,026 29,026 Prepaid and other current assets: Foreign currency derivative contracts 22,000 22,000 Other long-term assets: Deferred compensation plan assets 297,706 297,706 Total assets $ 593,928 $ 425,027 $ 168,901 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 15,420 $ 15,420 Other long-term liabilities: Deferred compensation plan liabilities 297,703 297,703 Total liabilities $ 313,123 $ 297,703 $ 15,420 $ — Assets and liabilities measured at fair value on a recurring basis were summarized below as of October 31, 2021: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 172,934 $ 172,934 Short-term investments: U.S. government agency & T-bills 6,442 6,442 Municipal bonds 4,576 4,576 Corporate debt securities 103,452 103,452 Asset-backed securities 33,479 33,479 Prepaid and other current assets: Foreign currency derivative contracts 15,472 15,472 Other long-term assets: Deferred compensation plan assets 343,820 343,820 Total assets $ 680,175 $ 516,754 $ 163,421 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 2,068 $ 2,068 Other long-term liabilities: Deferred compensation plan liabilities 343,820 343,820 Total liabilities $ 345,888 $ 343,820 $ 2,068 $ — Assets/Liabilities Measured at Fair Value on a Non-Recurring Basis Non-Marketable Equity Securities Non-marketable equity securities are classified within Level 3 as they are valued using significant unobservable inputs or data in an inactive market due to the absence of market price and inherent lack of liquidity. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Apr. 30, 2022 | |
Payables and Accruals [Abstract] | |
Restructuring Charges | Restructuring Charges In the third quarter of fiscal 2021, we initiated a restructuring plan for involuntary and voluntary employee termination and facility closure actions as part of a business reorganization (the 2021 Plan). The 2021 Plan was substantially completed in the first quarter of fiscal 2022 and the total charges under the 2021 Plan were $45.5 million. During the three months ended April 30, 2022, we made payments of $21.0 million under the 2021 Plan. As of April 30, 2022, the outstanding restructuring related liabilities were immaterial and recorded in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheets. |
Credit and Term Loan Facilities
Credit and Term Loan Facilities | 6 Months Ended |
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
Credit and Term Loan Facilities | Credit and Term Loan Facilities On January 22, 2021, we entered into a Fourth Extension and Amendment Agreement (the Fourth Amendment), which amended and restated our previous credit agreement, dated as of November 28, 2016 (as amended and restated, the Credit Agreement). Our outstanding borrowings under the previous credit agreement, which as of January 22, 2021 consisted of term loans in the aggregate principal amount of $97.5 million, were carried over under the Credit Agreement and fully repaid on November 26, 2021. The Fourth Amendment extended the termination date of the existing $650.0 million senior unsecured revolving credit facility (the Revolver) from November 28, 2021 to January 22, 2024, which could be further extended at our option. The Credit Agreement also provides an uncommitted incremental loan facility of up to $150 million in the aggregate principal amount. The Credit Agreement contains financial covenants requiring us to maintain a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio, as well as other non-financial covenants. As of April 30, 2022, we were in compliance with all financial covenants. There was no outstanding balance under the Revolver as of April 30, 2022 and October 31, 2021. We expect our borrowings, if any, under the Revolver will fluctuate from quarter to quarter. Borrowings bear interest at a floating rate based on a margin over our choice of market observable base rates as defined in the Credit Agreement. As of April 30, 2022, Revolver bore interest at LIBOR +1.000%. In addition, commitment fees are payable on the Revolver at rates between 0.125% and 0.200% per year based on our leverage ratio on the daily amount of the revolving commitment. In July 2018, we entered into a 12-year 220.0 million Renminbi (approximately $33.0 million) credit agreement with a lender in China to support our facilities expansion. Borrowings bear interest at a floating rate based on the 5 year Loan Prime Rate plus 0.74%. As of April 30, 2022, we had $23.8 million outstanding balance under the agreement. |
Leases
Leases | 6 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases We have operating lease arrangements for office space, data center, equipment and other corporate assets. These leases have various expiration dates through December 31, 2040, some of which include options to extend the leases for up to 10 years. Because we are not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term and associated potential option payments are excluded from lease payments. The components of our lease expense during the period presented were as follows: Three Months Ended April 30, Six Months Ended April 30, 2022 2021 2022 2021 (in thousands) Operating lease expense (1) $ 22,159 $ 23,349 $ 44,191 $ 46,975 Variable lease expense (2) 2,870 1,842 4,993 3,177 Total lease expense $ 25,029 $ 25,191 $ 49,184 $ 50,152 (1) Operating lease expense includes immaterial amounts of short-term leases, net of sublease income. (2) Variable lease expense includes payments to lessors that are not fixed or determinable at lease commencement date. These payments primarily consist of maintenance, property taxes, insurance and variable indexed based payments. Supplemental cash flow information during the period presented was as follows: Six Months Ended April 30, 2022 2021 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 41,871 $ 42,603 ROU assets obtained in exchange for operating lease liabilities $ 138,612 $ 81,407 Lease term and discount rate information related to our operating leases as of the end of the period presented were as follows: As of April 30, 2022 October 31, 2021 Weighted-average remaining lease term (in years) 9.45 8.00 Weighted-average discount rate 2.16 % 2.01 % The following represented the maturities of our future lease payments due under operating leases as of April 30, 2022: Lease Payments Fiscal year (in thousands) Remainder of fiscal 2022 $ 22,022 2023 85,758 2024 89,313 2025 78,290 2026 68,814 Thereafter 394,923 Total future minimum lease payments 739,120 Less: Imputed interest 82,633 Total lease liabilities $ 656,487 In addition, certain facilities owned by us were leased to third parties under non-cancellable operating lease agreements. These leases have annual escalating payments and have expiration dates through March 31, 2031 in accordance with the terms and conditions of the existing agreement. The lease receipts from owned facilities, including sublease income from other facilities leased by us, due to us as of April 30, 2022 were as follows: Lease Receipts Fiscal year (in thousands) Remainder of fiscal 2022 $ 8,527 2023 16,240 2024 24,591 2025 24,479 2026 25,333 Thereafter 110,189 Total $ 209,359 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Apr. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows: As of April 30, 2022 October 31, 2021 (in thousands) Cumulative currency translation adjustments $ (88,659) $ (48,047) Unrealized gains (losses) on derivative instruments, net of taxes (22,521) (1,311) Unrealized gains (losses) on available-for-sale securities, net of taxes (1,919) (246) Total $ (113,099) $ (49,604) The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statements of income: Gains (losses) on cash flow hedges, net of taxes Revenues $ 229 $ 921 $ (342) $ 1,034 Operating expenses (891) 3,702 (1,165) 6,316 Total $ (662) $ 4,623 $ (1,507) $ 7,350 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Apr. 30, 2022 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program Our Board of Directors (the Board) approved a stock repurchase program (the Program) with authorization to purchase up to $1.0 billion of our common stock in December 2021. As of April 30, 2022, $500.0 million remained available for future repurchases under the Program. In February 2022, we entered into an accelerated stock repurchase agreement (the February 2022 ASR) to repurchase an aggregate of $200.0 million of our common stock. Pursuant to the February 2022 ASR, we made a prepayment of $200.0 million to receive initial deliveries of shares valued at $160.0 million. The remaining balance of $40.0 million was settled in April 2022. Total shares purchased under the February 2022 ASR were approximately 0.7 million shares, at an average purchase price of $305.36 per share. During the three months ended April 30, 2022 , we also repurchased on the open market approximately 0.2 million shares of our common stock at an average price of $298.29 per share for an aggregate purchase price of $50.0 million. Stock repurchase activities as well as the reissuance of treasury stock for employee stock-based compensation purposes were as follows: Three Months Ended Six Months Ended 2022 (1) 2021 (2) 2022 2021 (in thousands) Total shares repurchased 984 756 1,685 1,593 Total cost of the repurchased shares $ 290,000 $ 195,211 $ 535,000 $ 398,082 Reissuance of treasury stock 683 946 1,578 1,529 (1) Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. (2) Included the 166,726 shares and $50.0 million equity forward contract from the December 2020 ASR settled in March 2021. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Apr. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The compensation cost recognized in the unaudited condensed consolidated statements of income for our stock compensation arrangements was as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Cost of products $ 13,078 $ 9,304 $ 24,285 $ 18,656 Cost of maintenance and service 5,893 3,411 10,476 6,746 Research and development expense 58,109 40,507 107,649 81,801 Sales and marketing expense 19,291 14,551 37,092 29,710 General and administrative expense 13,690 11,813 26,330 26,455 Stock-based compensation expense before taxes (1) 110,061 79,586 205,832 163,368 Income tax benefit (17,852) (12,407) (33,386) (25,469) Stock-based compensation expense after taxes $ 92,209 $ 67,179 $ 172,446 $ 137,899 (1) During the three and six months ended April 30, 2022, we recognized stock-based compensation expense relating to restricted stock units (RSUs), granted to senior executives in February 2022 with certain market, performance and service conditions (market-based RSUs). Under the award agreements, the vesting of the market-based RSUs is contingent on achieving total stockholder return (TSR) relative to a peer index as well as revenue growth metrics. The performance period during which the achievement goals will be measured is fiscal 2022 and fiscal 2023. The maximum potential awards that may be earned are 187.5% of the target number of the initial a wards. The awards will vest in equal increments in December 2023 and December 2024 if the TSR target, revenue growth metrics, and service conditions are achieved. The grant date fair value for the market-based RSUs of $280.82 was determined using a Monte Carlo simulation model with the following assumptions: expected volatility of 33.01%, risk-free interest rate of 1.33% and an expected term of 1.69 years. As of April 30, 2022, we had $937.6 million of total unrecognized stock-based compensation expense relating to options, RSUs and restricted stock awards, which is expected to be recognized over a weighted-average period of 2.3 years. As of April 30, 2022, we had $76.3 million of unrecognized stock-based compensation expense relating to our Employee Stock Purchase Plan (ESPP), which is expected to be recognized over a period of approximately 2.0 years. The intrinsic values of equity awards exercised during the periods were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Intrinsic value of awards exercised $ 46,464 $ 71,680 $ 159,389 $ 112,204 |
Net Income per Share
Net Income per Share | 6 Months Ended |
Apr. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income Per ShareWe compute basic net income per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding such as stock options and unvested RSUs and awards during the period using the treasury stock method. The table below reconciled the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands, except per share amounts) Numerator: Net income attributed to Synopsys $ 294,781 $ 195,078 $ 608,468 $ 357,423 Denominator: Weighted average common shares for basic net income per share 153,090 152,725 153,154 152,612 Dilutive effect of common share equivalents 3,077 4,352 3,661 4,614 Weighted average common shares for diluted net income per share 156,167 157,077 156,815 157,226 Net income per share attributed to Synopsys: Basic $ 1.93 $ 1.28 $ 3.97 $ 2.34 Diluted $ 1.89 $ 1.24 $ 3.88 $ 2.27 Anti-dilutive employee stock-based awards excluded 1,259 466 986 415 |
Segment Disclosure
Segment Disclosure | 6 Months Ended |
Apr. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Disclosure | Segment Disclosure Segment reporting is based upon the “management approach,” i.e., how management organizes our operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. The CODMs were our two Co-Chief Executive Officers. One of our Co-Chief Executive Officers transitioned out of this role effective May 1, 2022. Starting with the third quarter of fiscal 2022, our CODM will be our Chief Executive Officer. We have two reportable segments: (1) Semiconductor & System Design, which includes EDA tools, IP products, system integration solutions and other associated revenue categories, and (2) Software Integrity, which includes a comprehensive solution for building integrity—security, quality and compliance testing—into the customers’ software development lifecycle and supply chain. The financial information provided to and used by the CODMs to assist in making operational decisions, allocating resources, and assessing performance reflects consolidated financial information as well as revenue, adjusted operating income, and adjusted operating margin information for the Semiconductor & System Design and Software Integrity segments, accompanied by disaggregated information relating to revenue by geographic region. Information by reportable segment was as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Total Segments: Revenue $ 1,279,229 $ 1,024,323 $ 2,549,484 $ 1,994,644 Adjusted operating income 470,153 317,240 929,544 604,060 Adjusted operating margin 37 % 31 % 36 % 30 % Semiconductor & System Design: Revenue $ 1,166,377 $ 930,427 $ 2,329,071 $ 1,808,795 Adjusted operating income 457,128 308,816 904,520 587,692 Adjusted operating margin 39 % 33 % 39 % 32 % Software Integrity: Revenue $ 112,852 $ 93,896 $ 220,413 $ 185,849 Adjusted operating income 13,025 8,424 25,024 16,368 Adjusted operating margin 12 % 9 % 11 % 9 % Certain operating expenses are not allocated to the segments and are managed at a consolidated level. The unallocated expenses managed at a consolidated level, including amortization of intangible assets, stock-based compensation and certain other operating expenses, were presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Total segment adjusted operating income $ 470,153 $ 317,240 $ 929,544 $ 604,060 Reconciling items: Amortization of intangible assets (21,367) (19,721) (43,727) (39,997) Stock-based compensation expense (110,061) (79,586) (205,832) (163,368) Other 24,976 (23,702) 30,752 (58,116) Total operating income $ 363,701 $ 194,231 $ 710,737 $ 342,579 The CODMs do not use total assets by segment to evaluate segment performance or allocate resources. As a result, total assets by segment are not required to be disclosed. In allocating revenue to particular geographic areas, the CODMs consider where individual “seats” or licenses to our products are located. Revenue is defined as revenue from external customers. Revenue related to operations in the United States and other geographic areas were: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Revenue: United States $ 577,881 $ 471,716 $ 1,188,215 $ 940,418 Europe 116,191 106,160 248,908 211,335 China 215,563 125,519 428,386 241,287 Korea 119,210 105,388 233,564 203,642 Other 250,384 215,540 450,411 397,962 Consolidated $ 1,279,229 $ 1,024,323 $ 2,549,484 $ 1,994,644 Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our methodology. |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Apr. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net The following table presented the components of other income (expense), net: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Interest income $ 1,283 $ 447 $ 2,141 $ 756 Interest expense (400) (807) (900) (1,545) Gains (losses) on assets related to deferred compensation plan (29,310) 21,358 (48,909) 52,224 Foreign currency exchange gains (losses) 4,852 2,842 3,828 2,527 Other, net (338) (2,076) 134 (3,442) Total $ (23,913) $ 21,764 $ (43,706) $ 50,520 |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate We estimate our annual effective tax rate at the end of each fiscal quarter. The effective tax rate takes into account our estimations of annual pre-tax income, the geographic mix of pre-tax income and interpretations of tax laws and possible outcomes of audits. The following table presented the provision for income taxes and the effective tax rates: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Income before income taxes $ 339,788 $ 215,995 $ 667,031 $ 393,099 Provision for income taxes $ 45,896 $ 21,193 $ 59,798 $ 36,269 Effective tax rate 13.5 % 9.8 % 9.0 % 9.2 % Our effective tax rate for the six months ended April 30, 2022 is lower than the statutory federal corporate tax rate of 21.0% primarily due to U.S. federal research tax credits, foreign-derived intangible income deduction, excess tax benefits from stock-based compensation, and U.S. foreign tax credits, partially offset by state taxes, the effect of non-deductible stock-based compensation, and higher taxes on certain foreign earnings. Our effective tax rate increased in the three months ended April 30, 2022 as compared to the same period in fiscal 2021, primarily due to less excess tax benefits from stock-based compensation. Our effective tax rate for the six months ended April 30, 2022 is consistent with the same period in fiscal 2021. The timing of the resolution of income tax examinations, and the amounts and timing of various tax payments that are part of the settlement process, are highly uncertain. Variations in such amounts and/or timing could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. We believe that in the coming 12 months, it is reasonably possible that either certain audits and ongoing tax litigation will conclude or the statute of limitations on certain state and foreign income and withholding taxes will expire, or both. Given the uncertainty as to ultimate settlement terms, the timing of payment and the impact of such settlements on other uncertain tax positions, the range of the estimated potential decrease in underlying unrecognized tax benefits is between $0 and $40 million. Non-U.S. Examinations Hungarian Tax Authority In 2017, the Hungarian Tax Authority (the HTA) assessed withholding taxes of approximately $25.0 million and interest and penalties of $11.0 million, against our Hungary subsidiary (Synopsys Hungary). Synopsys Hungary contested the assessment with the Hungarian Administrative Court (Administrative Court). As required under Hungarian law, Synopsys Hungary paid the assessment and recorded a tax expense due to an unrecognized tax benefit of $17.4 million, which is net of estimated U.S. foreign tax credits. The Administrative Court found against Synopsys Hungary, and we appealed to the Hungarian Supreme Court. During 2021, the Hungarian Supreme Court heard our appeal and remanded the case to the Administrative Court for further proceedings. The Administrative Court once again ruled against Synopsys Hungary and we filed another appeal with the Hungarian Supreme Court. The Hungarian Supreme Court heard our appeal on January 27, 2022, vacated the lower court's decision and remanded the case back to the Administrative Court for further proceedings. On March 10, 2022, we received the written opinion from the Hungarian Supreme Court and submitted a brief with the Hungarian Administrative Court on May 4, 2022. Our next hearing with the Administrative Court is scheduled for June 30, 2022. We are also under examination by the tax authorities in certain other jurisdictions. No material assessments have been proposed in these examinations. |
Contingencies
Contingencies | 6 Months Ended |
Apr. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings We are subject to routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The ultimate outcome of any litigation is often uncertain and unfavorable outcomes could have a negative impact on our results of operations and financial condition. We regularly review the status of each significant matter and assesses our potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount is estimable, we accrue a liability for the estimated loss. Legal proceedings are inherently uncertain and, as circumstances change, it is possible that the amount of any accrued liability may increase, decrease or be eliminated. We have determined that, except as set forth below, no disclosure of estimated loss is required for a claim against us because: (1) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (2) a reasonably possible loss or range of loss cannot be estimated; or (3) such estimate is immaterial. Legal Settlement There have been no changes to the disclosure related to Mentor Graphics Corporation (now part of Siemens AG) since our Annual Report. See Note 9. Contingencies of the Annual Report for further information. Tax Matters We undergo examination from time to time by U.S. and foreign authorities for non-income based taxes, such as sales, use and value-added taxes, and are currently under examination by tax authorities in certain jurisdictions. If the potential loss from such examinations is considered probable and the amount or the range of loss could be estimated, we would accrue a liability for the estimated expense. In addition to the foregoing, we are, from time to time, party to various other claims and legal proceedings in the ordinary course of our business, including with tax and other governmental authorities. For a description of certain of these other matters, see Note 18. Income Taxes . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. To prepare financial statements in conformity with U.S. GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on our operating results and financial position. |
Principles of Consolidation | Principles of Consolidation. The unaudited condensed consolidated financial statements include our accounts and the accounts of our subsidiaries. All intercompany accounts and transactions have been eliminated. |
Fiscal Year End | Fiscal Year End. Our fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, we have a 53-week year. When a 53-week year occurs, we include the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2022 and 2021 are both 52-week years. Fiscal 2022 will end on October 29, 2022. Fiscal 2021 ended on October 30, 2021. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. |
Redeemable Non-controlling Interest | Redeemable Non-controlling Interest. Non-controlling interest that is not solely redeemable within our control is reported as the temporary equity in our unaudited condensed consolidated balance sheets. The carrying value of the redeemable non-controlling interest equals the redemption value at the end of each reporting period, after giving effect to the change from the net income (loss) attributable to the redeemable non-controlling interest. We adjust the redemption value of the non-controlling interest on a quarterly basis and changes in the estimated redemption value are recorded with corresponding adjustments against retained earnings. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In December 2019, FASB issued Accounting Standards Update (ASU) 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. We adopted the standard as of the beginning of fiscal 2022 on a prospective basis and the adoption of this standard did not have a material impact on our unaudited condensed consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. We early adopted the standard in the second quarter of fiscal 2022 and the adoption had no material retrospective impact on our unaudited condensed consolidated financial statements for acquisitions completed in fiscal 2022. Any future impact will be dependent on the facts and circumstances of future acquisitions. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table showed the percentage of revenue by product groups: Three Months Ended Six Months Ended 2022 2021 2022 2021 EDA 50.2 % 57.4 % 50.0 % 56.3 % IP & System Integration 40.7 % 33.1 % 41.1 % 34.0 % Software Integrity Products & Services 8.8 % 9.2 % 8.6 % 9.3 % Other 0.3 % 0.3 % 0.3 % 0.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % |
Schedule of Contract Assets and Liabilities | Contract balances were as follows: As of April 30, 2022 October 31, 2021 (in thousands) Contract assets, net $ 235,705 $ 284,574 Unbilled receivables $ 38,022 $ 35,589 Deferred revenue $ 1,961,178 $ 1,653,926 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the six months ended April 30, 2022 were as follows: (in thousands) Balance at October 31, 2021 $ 3,575,785 Additions 60,797 Adjustments 1,285 Effect of foreign currency translation (21,734) Balance at April 30, 2022 $ 3,616,133 |
Summary of Intangible Assets | Intangible assets as of April 30, 2022 consisted of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,010,204 $ 775,334 $ 234,870 Customer relationships 404,083 322,380 81,703 Contract rights intangible 192,061 188,429 3,632 Trademarks and trade names 43,095 32,355 10,740 Capitalized software development costs 47,162 44,786 2,376 Total $ 1,696,605 $ 1,363,284 $ 333,321 Intangible assets as of October 31, 2021 consisted of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 911,903 $ 748,759 $ 163,144 Customer relationships 404,571 308,355 96,216 Contract rights intangible 193,317 188,231 5,086 Trademarks and trade names 43,095 31,155 11,940 Capitalized software development costs 46,098 43,352 2,746 Total $ 1,598,984 $ 1,319,852 $ 279,132 |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets consisted of the following: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Core/developed technology $ 13,728 $ 10,969 $ 26,576 $ 21,986 Customer relationships 6,312 7,703 14,497 15,482 Contract rights intangible 727 439 1,454 1,309 Trademarks and trade names 600 610 1,200 1,220 Capitalized software development costs (1) 681 1,072 1,433 2,110 Total $ 22,048 $ 20,793 $ 45,160 $ 42,107 (1) Amortization of capitalized software development costs is included in cost of products revenue in the unaudited condensed consolidated statements of income. |
Estimated Future Amortization of Intangible Assets | The following table presented the estimated future amortization of intangible assets as of April 30, 2022: Fiscal year (in thousands) Remainder of fiscal 2022 $ 46,929 2023 80,803 2024 69,626 2025 53,319 2026 40,895 2027 and thereafter 41,749 Total $ 333,321 |
Balance Sheets Components (Tabl
Balance Sheets Components (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Balance Sheets Components | As of April 30, 2022 October 31, 2021 (in thousands) Other long-term assets: Deferred compensation plan assets $ 297,706 $ 343,820 Capitalized commission, net 107,424 92,249 Other long-term assets 99,017 74,629 Total $ 504,147 $ 510,698 Accounts payable and accrued liabilities: Payroll and related benefits $ 394,306 $ 581,687 Other accrued liabilities 143,444 132,091 Accounts payable 74,471 27,413 Total $ 612,221 $ 741,191 Other long-term liabilities: Deferred compensation plan liabilities $ 297,703 $ 343,820 Other long-term liabilities 48,071 47,613 Total $ 345,774 $ 391,433 |
Financial Assets and Liabilit_2
Financial Assets and Liabilities (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Financial Assets And Liabilities [Abstract] | |
Debt Securities, Available-for-sale | The stated maturities of our available-for-sale debt securities as of April 30, 2022 were as follows: Amortized Cost Fair Value (in thousands) less than 1 year $ 60,841 $ 60,380 1-5 years 81,611 80,291 5-10 years 4,570 4,505 >10 years 1,798 1,725 Total $ 148,820 $ 146,901 |
Summary of Cash Equivalents | As of April 30, 2022, the balances of our cash equivalents and short-term investments were as follows: Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 127,321 $ — $ — $ — $ 127,321 Total: $ 127,321 $ — $ — $ — $ 127,321 Short-term investments: U.S. government agency & T-bills $ 14,840 $ — $ (81) $ — $ 14,759 Municipal bonds 3,105 — (79) — 3,026 Corporate debt securities 101,504 — (1,414) — 100,090 Asset-backed securities 29,371 — (345) — 29,026 Total: $ 148,820 $ — $ (1,919) $ — $ 146,901 (1) See Note 8. Fair Value Measurements for further discussion on fair values of cash equivalents and short-term investments. As of October 31, 2021, the balances of our cash equivalents and short-term investments were as follows: Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 172,934 $ — $ — $ — $ 172,934 Total: $ 172,934 $ — $ — $ — $ 172,934 Short-term investments: U.S. government agency & T-bills $ 6,447 $ — $ (5) $ — $ 6,442 Municipal bonds 4,588 — (12) — 4,576 Corporate debt securities 103,615 7 (170) — 103,452 Asset-backed securities 33,545 6 (72) — 33,479 Total: $ 148,195 $ 13 $ (259) $ — $ 147,949 (1) See Note 8. Fair Value Measurements for further discussion on fair values of cash equivalents and short-term investments. |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provided a reconciliation of cash, cash equivalents and restricted cash included in the unaudited condensed consolidated balance sheets: As of April 30, 2022 October 31, 2021 (in thousands) Cash and cash equivalents $ 1,573,620 $ 1,432,840 Restricted cash included in prepaid and other current assets 1,517 1,560 Restricted cash included in other long-term assets 714 783 Total cash, cash equivalents and restricted cash $ 1,575,851 $ 1,435,183 |
Effects on Changes in Fair Values of Non-Designated Forward Contracts | The effects of the non-designated derivative instruments on our unaudited condensed consolidated statements of income were summarized as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Gains (losses) recorded in other income (expense), net $ (5,707) $ 1,128 $ (5,261) $ 2,257 |
Notional Amounts of Derivative Instruments | The notional amounts in the table below for derivative instruments provided one measure of the transaction volume outstanding: As of April 30, 2022 October 31, 2021 (in thousands) Total gross notional amounts $ 1,290,445 $ 1,176,152 Net fair value $ 6,580 $ 13,404 |
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet | The following table represented the unaudited condensed consolidated balance sheets location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: Fair values of Fair values of (in thousands) Balance at April 30, 2022 Other current assets $ 19,546 $ 2,454 Accrued liabilities $ 15,289 $ 131 Balance at October 31, 2021 Other current assets $ 15,455 $ 17 Accrued liabilities $ 2,027 $ 42 |
Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax | The following table represented the location of the amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax in the unaudited condensed consolidated statements of income: Location of gains (losses) recognized in OCI on derivatives Amount of gains (losses) recognized in OCI on Location of Amount of (in thousands) Three months ended Foreign exchange contracts Revenue $ (7,008) Revenue $ 229 Foreign exchange contracts Operating expenses (14,124) Operating expenses (891) Total $ (21,132) $ (662) Three months ended Foreign exchange contracts Revenue $ 1,804 Revenue $ 921 Foreign exchange contracts Operating expenses (590) Operating expenses 3,702 Total $ 1,214 $ 4,623 Six months ended Foreign exchange contracts Revenue $ (7,825) Revenue $ (342) Foreign exchange contracts Operating expenses (14,892) Operating expenses (1,165) Total $ (22,717) $ (1,507) Six months ended Foreign exchange contracts Revenue $ 1,641 Revenue $ 1,034 Foreign exchange contracts Operating expenses 3,666 Operating expenses 6,316 Total $ 5,307 $ 7,350 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis were summarized below as of April 30, 2022: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 127,321 127,321 Short-term investments: U.S. government agency & T-bills 14,759 14,759 Municipal bonds 3,026 3,026 Corporate debt securities 100,090 100,090 Asset-backed securities 29,026 29,026 Prepaid and other current assets: Foreign currency derivative contracts 22,000 22,000 Other long-term assets: Deferred compensation plan assets 297,706 297,706 Total assets $ 593,928 $ 425,027 $ 168,901 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 15,420 $ 15,420 Other long-term liabilities: Deferred compensation plan liabilities 297,703 297,703 Total liabilities $ 313,123 $ 297,703 $ 15,420 $ — Assets and liabilities measured at fair value on a recurring basis were summarized below as of October 31, 2021: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 172,934 $ 172,934 Short-term investments: U.S. government agency & T-bills 6,442 6,442 Municipal bonds 4,576 4,576 Corporate debt securities 103,452 103,452 Asset-backed securities 33,479 33,479 Prepaid and other current assets: Foreign currency derivative contracts 15,472 15,472 Other long-term assets: Deferred compensation plan assets 343,820 343,820 Total assets $ 680,175 $ 516,754 $ 163,421 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 2,068 $ 2,068 Other long-term liabilities: Deferred compensation plan liabilities 343,820 343,820 Total liabilities $ 345,888 $ 343,820 $ 2,068 $ — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Lease, Cost | The components of our lease expense during the period presented were as follows: Three Months Ended April 30, Six Months Ended April 30, 2022 2021 2022 2021 (in thousands) Operating lease expense (1) $ 22,159 $ 23,349 $ 44,191 $ 46,975 Variable lease expense (2) 2,870 1,842 4,993 3,177 Total lease expense $ 25,029 $ 25,191 $ 49,184 $ 50,152 (1) Operating lease expense includes immaterial amounts of short-term leases, net of sublease income. (2) Variable lease expense includes payments to lessors that are not fixed or determinable at lease commencement date. These payments primarily consist of maintenance, property taxes, insurance and variable indexed based payments. Supplemental cash flow information during the period presented was as follows: Six Months Ended April 30, 2022 2021 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 41,871 $ 42,603 ROU assets obtained in exchange for operating lease liabilities $ 138,612 $ 81,407 |
Lessee, Lease Term and Discount Rate | Lease term and discount rate information related to our operating leases as of the end of the period presented were as follows: As of April 30, 2022 October 31, 2021 Weighted-average remaining lease term (in years) 9.45 8.00 Weighted-average discount rate 2.16 % 2.01 % |
Lessee, Operating Lease, Liability, Maturity | The following represented the maturities of our future lease payments due under operating leases as of April 30, 2022: Lease Payments Fiscal year (in thousands) Remainder of fiscal 2022 $ 22,022 2023 85,758 2024 89,313 2025 78,290 2026 68,814 Thereafter 394,923 Total future minimum lease payments 739,120 Less: Imputed interest 82,633 Total lease liabilities $ 656,487 |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | The lease receipts from owned facilities, including sublease income from other facilities leased by us, due to us as of April 30, 2022 were as follows: Lease Receipts Fiscal year (in thousands) Remainder of fiscal 2022 $ 8,527 2023 16,240 2024 24,591 2025 24,479 2026 25,333 Thereafter 110,189 Total $ 209,359 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows: As of April 30, 2022 October 31, 2021 (in thousands) Cumulative currency translation adjustments $ (88,659) $ (48,047) Unrealized gains (losses) on derivative instruments, net of taxes (22,521) (1,311) Unrealized gains (losses) on available-for-sale securities, net of taxes (1,919) (246) Total $ (113,099) $ (49,604) |
Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income | The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statements of income: Gains (losses) on cash flow hedges, net of taxes Revenues $ 229 $ 921 $ (342) $ 1,034 Operating expenses (891) 3,702 (1,165) 6,316 Total $ (662) $ 4,623 $ (1,507) $ 7,350 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase And Reissuance Activities | Stock repurchase activities as well as the reissuance of treasury stock for employee stock-based compensation purposes were as follows: Three Months Ended Six Months Ended 2022 (1) 2021 (2) 2022 2021 (in thousands) Total shares repurchased 984 756 1,685 1,593 Total cost of the repurchased shares $ 290,000 $ 195,211 $ 535,000 $ 398,082 Reissuance of treasury stock 683 946 1,578 1,529 (1) Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. (2) Included the 166,726 shares and $50.0 million equity forward contract from the December 2020 ASR settled in March 2021. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Arrangements | The compensation cost recognized in the unaudited condensed consolidated statements of income for our stock compensation arrangements was as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Cost of products $ 13,078 $ 9,304 $ 24,285 $ 18,656 Cost of maintenance and service 5,893 3,411 10,476 6,746 Research and development expense 58,109 40,507 107,649 81,801 Sales and marketing expense 19,291 14,551 37,092 29,710 General and administrative expense 13,690 11,813 26,330 26,455 Stock-based compensation expense before taxes (1) 110,061 79,586 205,832 163,368 Income tax benefit (17,852) (12,407) (33,386) (25,469) Stock-based compensation expense after taxes $ 92,209 $ 67,179 $ 172,446 $ 137,899 (1) During the three and six months ended April 30, 2022, we recognized stock-based compensation expense relating to restricted stock units (RSUs), granted to senior executives in February 2022 with certain market, performance and service conditions (market-based RSUs). Under the award agreements, the vesting of the market-based RSUs is contingent on achieving total stockholder return (TSR) relative to a peer index as well as revenue growth metrics. The performance period during which the achievement goals will be measured is fiscal 2022 and fiscal 2023. The maximum potential awards that may be earned are 187.5% of the target number of the initial a wards. The awards will vest in equal increments in December 2023 and December 2024 if the TSR target, revenue growth metrics, and service conditions are achieved. The grant date fair value for the market-based RSUs of $280.82 was determined using a Monte Carlo simulation model with the following assumptions: expected volatility of 33.01%, risk-free interest rate of 1.33% and an expected term of 1.69 years. |
Schedule of Intrinsic Value of Equity Awards Exercised | The intrinsic values of equity awards exercised during the periods were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Intrinsic value of awards exercised $ 46,464 $ 71,680 $ 159,389 $ 112,204 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted-Average Common Shares Used to Calculate Net Income Per Share | The table below reconciled the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands, except per share amounts) Numerator: Net income attributed to Synopsys $ 294,781 $ 195,078 $ 608,468 $ 357,423 Denominator: Weighted average common shares for basic net income per share 153,090 152,725 153,154 152,612 Dilutive effect of common share equivalents 3,077 4,352 3,661 4,614 Weighted average common shares for diluted net income per share 156,167 157,077 156,815 157,226 Net income per share attributed to Synopsys: Basic $ 1.93 $ 1.28 $ 3.97 $ 2.34 Diluted $ 1.89 $ 1.24 $ 3.88 $ 2.27 Anti-dilutive employee stock-based awards excluded 1,259 466 986 415 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information by reportable segment was as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Total Segments: Revenue $ 1,279,229 $ 1,024,323 $ 2,549,484 $ 1,994,644 Adjusted operating income 470,153 317,240 929,544 604,060 Adjusted operating margin 37 % 31 % 36 % 30 % Semiconductor & System Design: Revenue $ 1,166,377 $ 930,427 $ 2,329,071 $ 1,808,795 Adjusted operating income 457,128 308,816 904,520 587,692 Adjusted operating margin 39 % 33 % 39 % 32 % Software Integrity: Revenue $ 112,852 $ 93,896 $ 220,413 $ 185,849 Adjusted operating income 13,025 8,424 25,024 16,368 Adjusted operating margin 12 % 9 % 11 % 9 % |
Reconciliation of Operating Income From Segment Consolidation | The unallocated expenses managed at a consolidated level, including amortization of intangible assets, stock-based compensation and certain other operating expenses, were presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Total segment adjusted operating income $ 470,153 $ 317,240 $ 929,544 $ 604,060 Reconciling items: Amortization of intangible assets (21,367) (19,721) (43,727) (39,997) Stock-based compensation expense (110,061) (79,586) (205,832) (163,368) Other 24,976 (23,702) 30,752 (58,116) Total operating income $ 363,701 $ 194,231 $ 710,737 $ 342,579 |
Revenues Related to Operations by Geographic Areas | Revenue related to operations in the United States and other geographic areas were: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Revenue: United States $ 577,881 $ 471,716 $ 1,188,215 $ 940,418 Europe 116,191 106,160 248,908 211,335 China 215,563 125,519 428,386 241,287 Korea 119,210 105,388 233,564 203,642 Other 250,384 215,540 450,411 397,962 Consolidated $ 1,279,229 $ 1,024,323 $ 2,549,484 $ 1,994,644 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Components of Other Income (Expense), Net | The following table presented the components of other income (expense), net: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Interest income $ 1,283 $ 447 $ 2,141 $ 756 Interest expense (400) (807) (900) (1,545) Gains (losses) on assets related to deferred compensation plan (29,310) 21,358 (48,909) 52,224 Foreign currency exchange gains (losses) 4,852 2,842 3,828 2,527 Other, net (338) (2,076) 134 (3,442) Total $ (23,913) $ 21,764 $ (43,706) $ 50,520 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Incomes Taxes and Effective Tax Rates | The following table presented the provision for income taxes and the effective tax rates: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Income before income taxes $ 339,788 $ 215,995 $ 667,031 $ 393,099 Provision for income taxes $ 45,896 $ 21,193 $ 59,798 $ 36,269 Effective tax rate 13.5 % 9.8 % 9.0 % 9.2 % |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - Product Concentration Risk - Revenue | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 100.00% | 100.00% | 100.00% | 100.00% |
EDA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 50.20% | 57.40% | 50.00% | 56.30% |
IP & System Integration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 40.70% | 33.10% | 41.10% | 34.00% |
Software Integrity Products & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 8.80% | 9.20% | 8.60% | 9.30% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage by product group | 0.30% | 0.30% | 0.30% | 0.40% |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 235,705 | $ 284,574 |
Unbilled receivables | 38,022 | 35,589 |
Deferred revenue | $ 1,961,178 | $ 1,653,926 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Contract with customer, liability, revenue recognized | $ 327,500 | $ 937,000 | ||
Revenue, remaining performance obligation, amount | 7,300,000 | 7,300,000 | ||
Revenue, remaining performance obligation, non-cancellable, amount | $ 1,000,000 | $ 1,000,000 | ||
Revenue, remaining performance obligation, excluding non-cancellable, recognized over twelve month period, percent | 41.00% | 41.00% | ||
Capitalized contract cost, net | $ 107,400 | $ 107,400 | ||
Amortization of capitalized costs to obtain revenue contracts | 17,800 | $ 15,500 | 34,574 | $ 30,475 |
Sales Based Royalties | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Contract with customer, liability, revenue recognized | $ 37,700 | $ 34,500 | $ 69,700 | $ 60,800 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | Oct. 31, 2021 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 3,616,133,000 | $ 3,616,133,000 | $ 3,575,785,000 | |||
Redeemable non-controlling interest | 43,516,000 | 43,516,000 | $ 0 | |||
Transaction costs | 4,000,000 | $ 2,300,000 | 6,100,000 | $ 5,900,000 | ||
Series of Individually Immaterial Business Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transfered | $ 20,000,000 | |||||
Identifiable intangibles assets acquired | 4,300,000 | |||||
Goodwill | 15,700,000 | |||||
Goodwill, expected tax deductible amount | $ 0 | |||||
OpenLight | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transfered | 90,000,000 | |||||
Identifiable intangibles assets acquired | 94,000,000 | 94,000,000 | ||||
Goodwill | 45,100,000 | 45,100,000 | ||||
Goodwill, expected tax deductible amount | $ 0 | $ 0 | ||||
Percentage of equity interests acquired | 75.00% | 75.00% | ||||
Percentage of equity interests held by non-controlling interest | 25.00% | 25.00% | ||||
Redeemable noncontrolling interest, redemption value | $ 30,000,000 | $ 30,000,000 | ||||
Redeemable noncontrolling interest, put option value | 10,100,000 | $ 10,100,000 | ||||
Consideration transferred including redeemable noncontrolling interest | $ 100,100,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes of Goodwill (Details) $ in Thousands | 6 Months Ended |
Apr. 30, 2022USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 3,575,785 |
Additions | 60,797 |
Adjustments | 1,285 |
Effect of foreign currency translation | (21,734) |
Ending Balance | $ 3,616,133 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,696,605 | $ 1,598,984 |
Accumulated Amortization | 1,363,284 | 1,319,852 |
Net Amount | 333,321 | 279,132 |
Core/developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,010,204 | 911,903 |
Accumulated Amortization | 775,334 | 748,759 |
Net Amount | 234,870 | 163,144 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 404,083 | 404,571 |
Accumulated Amortization | 322,380 | 308,355 |
Net Amount | 81,703 | 96,216 |
Contract rights intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 192,061 | 193,317 |
Accumulated Amortization | 188,429 | 188,231 |
Net Amount | 3,632 | 5,086 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 43,095 | 43,095 |
Accumulated Amortization | 32,355 | 31,155 |
Net Amount | 10,740 | 11,940 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 47,162 | 46,098 |
Accumulated Amortization | 44,786 | 43,352 |
Net Amount | $ 2,376 | $ 2,746 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | $ 22,048 | $ 20,793 | $ 45,160 | $ 42,107 | |
Core/developed technology | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | 13,728 | 10,969 | 26,576 | 21,986 | |
Customer relationships | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | 6,312 | 7,703 | 14,497 | 15,482 | |
Contract rights intangible | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | 727 | 439 | 1,454 | 1,309 | |
Trademarks and trade names | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | 600 | 610 | 1,200 | 1,220 | |
Capitalized software development costs | |||||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||||
Amortization expense of intangible assets | [1] | $ 681 | $ 1,072 | $ 1,433 | $ 2,110 |
[1] | Amortization of capitalized software development costs is included in cost of products revenue in the unaudited condensed consolidated statements of income. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) $ in Thousands | Apr. 30, 2022USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2022 | $ 46,929 |
2023 | 80,803 |
2024 | 69,626 |
2025 | 53,319 |
2026 | 40,895 |
2027 and thereafter | 41,749 |
Total | $ 333,321 |
Balance Sheets Components - Com
Balance Sheets Components - Components of Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 |
Other long-term assets: | ||
Deferred compensation plan assets | $ 297,706 | $ 343,820 |
Capitalized commission, net | 107,424 | 92,249 |
Other long-term assets | 99,017 | 74,629 |
Total | 504,147 | 510,698 |
Accounts payable and accrued liabilities: | ||
Payroll and related benefits | 394,306 | 581,687 |
Other accrued liabilities | 143,444 | 132,091 |
Accounts payable | 74,471 | 27,413 |
Total | 612,221 | 741,191 |
Other long-term liabilities: | ||
Deferred compensation plan liabilities | 297,703 | 343,820 |
Other long-term liabilities | 48,071 | 47,613 |
Total | $ 345,774 | $ 391,433 |
Financial Assets and Liabilit_3
Financial Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Financial Assets and Liabilities [Line Items] | ||||
Impairment of non-marketable equity securities | $ 0 | $ 0 | $ 0 | $ 0 |
Shipments period using hedges (in months) | 1 month | |||
Period for hedge balance in OCI to be reclassified to statement of operations (in months) | 12 months | |||
Non-Designated Hedging Instrument | ||||
Financial Assets and Liabilities [Line Items] | ||||
Forward contracts terms (in months) | 1 month | |||
Foreign currency derivative contracts | Minimum | ||||
Financial Assets and Liabilities [Line Items] | ||||
Derivative maturity period | 1 month | |||
Foreign currency derivative contracts | Maximum | ||||
Financial Assets and Liabilities [Line Items] | ||||
Derivative maturity period | 25 months | |||
Foreign currency derivative contracts | Cash Flow Hedging | Maximum | ||||
Financial Assets and Liabilities [Line Items] | ||||
Derivative maturity period | 3 years | |||
Foreign Exchange Forward | Cash Flow Hedging | Maximum | ||||
Financial Assets and Liabilities [Line Items] | ||||
Derivative maturity period | 25 months | |||
Foreign Exchange Contracts | Maximum | ||||
Financial Assets and Liabilities [Line Items] | ||||
Duration of foreign exchange forward contracts | 1 year |
Financial Assets and Liabilit_4
Financial Assets and Liabilities - Schedule of Maturity for Short-Term Available for Sale Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 | ||
Amortized Cost | ||||
less than 1 year | $ 60,841 | |||
1-5 years | 81,611 | |||
5-10 years | 4,570 | |||
>10 years | 1,798 | |||
Total | 148,820 | $ 148,195 | ||
Fair Value | ||||
less than 1 year | 60,380 | |||
1-5 years | 80,291 | |||
5-10 years | 4,505 | |||
>10 years | 1,725 | |||
Total | $ 146,901 | [1] | $ 147,949 | [2] |
[1] | See Note 8. Fair Value Measurements for further discussion on fair values of cash equivalents and short-term investments. | |||
[2] | See Note 8. Fair Value Measurements for further discussion on fair values of cash equivalents and short-term investments. |
Financial Assets and Liabilit_5
Financial Assets and Liabilities - Short-term investments (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 | ||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | $ 148,820 | $ 148,195 | ||
Gross Unrealized Gains | 0 | 13 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | (1,919) | (259) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 | ||
Estimated fair value | 146,901 | [1] | 147,949 | [2] |
Cash equivalents | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 127,321 | 172,934 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | 0 | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 | ||
Estimated fair value | 127,321 | [1] | 172,934 | [2] |
Cash equivalents | Money market funds | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 127,321 | 172,934 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | 0 | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 | ||
Estimated fair value | 127,321 | [1] | 172,934 | [2] |
Short-term investments | Corporate debt securities | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 101,504 | 103,615 | ||
Gross Unrealized Gains | 0 | 7 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | (1,414) | (170) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 | ||
Estimated fair value | 100,090 | [1] | 103,452 | [2] |
Short-term investments | U.S. government agency & T-bills | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 14,840 | 6,447 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | (81) | (5) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 | ||
Estimated fair value | 14,759 | [1] | 6,442 | [2] |
Short-term investments | Municipal bonds | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 3,105 | 4,588 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | (79) | (12) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 | ||
Estimated fair value | 3,026 | [1] | 4,576 | [2] |
Short-term investments | Asset-backed securities | ||||
Cash Equivalents and Short-term Investments [Line Items] | ||||
Total | 29,371 | 33,545 | ||
Gross Unrealized Gains | 0 | 6 | ||
Gross Unrealized Losses Less Than 12 Continuous Months | (345) | (72) | ||
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 | ||
Estimated fair value | $ 29,026 | [1] | $ 33,479 | [2] |
[1] | See Note 8. Fair Value Measurements for further discussion on fair values of cash equivalents and short-term investments. | |||
[2] | See Note 8. Fair Value Measurements for further discussion on fair values of cash equivalents and short-term investments. |
Financial Assets and Liabilit_6
Financial Assets and Liabilities - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 | Apr. 30, 2021 | Oct. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,573,620 | $ 1,432,840 | ||
Total cash, cash equivalents and restricted cash | 1,575,851 | 1,435,183 | $ 1,460,236 | $ 1,237,970 |
Restricted cash included in prepaid and other current assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 1,517 | 1,560 | ||
Restricted cash included in other long-term assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 714 | $ 783 |
Financial Assets and Liabilit_7
Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Financial Assets And Liabilities [Abstract] | ||||
Gains (losses) recorded in other income (expense), net | $ (5,707) | $ 1,128 | $ (5,261) | $ 2,257 |
Financial Assets and Liabilit_8
Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 |
Financial Assets And Liabilities [Abstract] | ||
Total gross notional amounts | $ 1,290,445 | $ 1,176,152 |
Net fair value | $ 6,580 | $ 13,404 |
Financial Assets and Liabilit_9
Financial Assets and Liabilities - Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 |
Designated As Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | $ 19,546 | $ 15,455 |
Designated As Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | 15,289 | 2,027 |
Non-Designated Hedging Instrument | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | 2,454 | 17 |
Non-Designated Hedging Instrument | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | $ 131 | $ 42 |
Financial Assets and Liabili_10
Financial Assets and Liabilities - Unaudited Condensed Consolidated Statement of Operations Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Financial Assets and Liabilities [Line Items] | ||||
Total revenue | $ 1,279,229 | $ 1,024,323 | $ 2,549,484 | $ 1,994,644 |
Operating Expenses | 662,717 | 616,106 | 1,328,952 | 1,230,080 |
Net income | 294,781 | 195,078 | 608,468 | 357,423 |
Foreign Exchange Contracts | Amount of gains (losses) recognized in OCI on derivatives (effective portion) | ||||
Financial Assets and Liabilities [Line Items] | ||||
Total revenue | (7,008) | 1,804 | (7,825) | 1,641 |
Operating Expenses | (14,124) | (590) | (14,892) | 3,666 |
Net income | (21,132) | 1,214 | (22,717) | 5,307 |
Foreign Exchange Contracts | Amount of gains (losses) reclassified from OCI (effective portion) | ||||
Financial Assets and Liabilities [Line Items] | ||||
Total revenue | 229 | 921 | (342) | 1,034 |
Operating Expenses | (891) | 3,702 | (1,165) | 6,316 |
Net income | $ (662) | $ 4,623 | $ (1,507) | $ 7,350 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 593,928 | $ 680,175 |
Total liabilities | 313,123 | 345,888 |
Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 297,703 | 343,820 |
Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 22,000 | 15,472 |
Accounts payable and accrued liabilities | 15,420 | 2,068 |
Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 127,321 | 172,934 |
Short-term investments | U.S. government agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 14,759 | 6,442 |
Short-term investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 3,026 | 4,576 |
Short-term investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 100,090 | 103,452 |
Short-term investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 29,026 | 33,479 |
Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 297,706 | 343,820 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 425,027 | 516,754 |
Total liabilities | 297,703 | 343,820 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 297,703 | 343,820 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | ||
Accounts payable and accrued liabilities | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 127,321 | 172,934 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | U.S. government agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | ||
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 | 297,706 | 343,820 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 168,901 | 163,421 |
Total liabilities | 15,420 | 2,068 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | ||
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 | 22,000 | 15,472 |
Accounts payable and accrued liabilities | 15,420 | 2,068 |
Significant Other Observable Inputs (Level 2) | Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Significant Other Observable Inputs (Level 2) | Short-term investments | U.S. government agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 14,759 | 6,442 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 3,026 | 4,576 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 100,090 | 103,452 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 29,026 | 33,479 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | ||
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | ||
Significant Unobservable Inputs (Level 3) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | ||
Accounts payable and accrued liabilities | ||
Significant Unobservable Inputs (Level 3) | Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Significant Unobservable Inputs (Level 3) | Short-term investments | U.S. government agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | ||
Significant Unobservable Inputs (Level 3) | Short-term investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | ||
Significant Unobservable Inputs (Level 3) | Short-term investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | ||
Significant Unobservable Inputs (Level 3) | Short-term investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | ||
Significant Unobservable Inputs (Level 3) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) - 2021 Restructuring Plan - Severance and Termination $ in Millions | 3 Months Ended |
Apr. 30, 2022USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Cost Incurred to Date | $ 45.5 |
Cash payments | $ 21 |
Credit and Term Loan Faciliti_2
Credit and Term Loan Facilities - Additional Information (Detail) ¥ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | |||
Jul. 31, 2018USD ($) | Apr. 30, 2022USD ($) | Oct. 31, 2021USD ($) | Jan. 22, 2021USD ($) | Jul. 31, 2018CNY (¥) | |
Foreign Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 33 | ¥ 220 | |||
Borrowings, interest rate | 0.74% | ||||
Debt instrument, term | 12 years | ||||
Long-term line of credit, noncurrent | $ 23.8 | ||||
Fourth Amendment | Unsecured Debt | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 97.5 | ||||
Fourth Amendment | Unsecured Debt | Senior Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | 650 | ||||
Fourth Amendment | Unsecured Debt | Uncommitted Incremental Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 150 | ||||
The Credit Agreement | Unsecured Debt | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Current portion of line of credit | $ 0 | $ 0 | |||
The Credit Agreement | Unsecured Debt | Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fees percentage | 0.125% | ||||
The Credit Agreement | Unsecured Debt | Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fees percentage | 0.20% | ||||
The Credit Agreement | Unsecured Debt | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Borrowings, interest rate | 1.00% |
Leases (Details)
Leases (Details) | Apr. 30, 2022 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term | 10 years |
Leases - Components Of Lease Ex
Leases - Components Of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | ||
Leases [Abstract] | |||||
Operating lease expense | [1] | $ 22,159 | $ 23,349 | $ 44,191 | $ 46,975 |
Variable lease expense | [2] | 2,870 | 1,842 | 4,993 | 3,177 |
Total lease expense | $ 25,029 | $ 25,191 | $ 49,184 | $ 50,152 | |
[1] | Operating lease expense includes immaterial amounts of short-term leases, net of sublease income. | ||||
[2] | Variable lease expense includes payments to lessors that are not fixed or determinable at lease commencement date. These payments primarily consist of maintenance, property taxes, insurance and variable indexed based payments. |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 41,871 | $ 42,603 |
ROU assets obtained in exchange for operating lease liabilities | $ 138,612 | $ 81,407 |
Leases - Lease Term And Discoun
Leases - Lease Term And Discount Rate Information (Details) | Apr. 30, 2022 | Oct. 31, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 9 years 5 months 12 days | 8 years |
Weighted-average discount rate | 2.16% | 2.01% |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Details) $ in Thousands | Apr. 30, 2022USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2022 | $ 22,022 |
2023 | 85,758 |
2024 | 89,313 |
2025 | 78,290 |
2026 | 68,814 |
Thereafter | 394,923 |
Total future minimum lease payments | 739,120 |
Less: Imputed interest | 82,633 |
Total lease liabilities | $ 656,487 |
Leases - Lease Receipts (Detail
Leases - Lease Receipts (Details) $ in Thousands | Apr. 30, 2022USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2022 | $ 8,527 |
2023 | 16,240 |
2024 | 24,591 |
2025 | 24,479 |
2026 | 25,333 |
Thereafter | 110,189 |
Total | $ 209,359 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Oct. 31, 2021 |
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (113,099) | $ (49,604) |
Cumulative currency translation adjustments | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | (88,659) | (48,047) |
Unrealized gains (losses) on derivative instruments, net of taxes | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | (22,521) | (1,311) |
Unrealized gains (losses) on available-for-sale securities, net of taxes | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (1,919) | $ (246) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) - Reclassification out of accumulated other comprehensive income (loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | $ (662) | $ 4,623 | $ (1,507) | $ 7,350 |
Revenues | Gain (loss) on cash flow hedges, net of taxes | ||||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | 229 | 921 | (342) | 1,034 |
Operating expenses | Gain (loss) on cash flow hedges, net of taxes | ||||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications into net income | $ (891) | $ 3,702 | $ (1,165) | $ 6,316 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2022 | Feb. 28, 2022 | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | Dec. 10, 2021 | ||
Accelerated Share Repurchases [Line Items] | ||||||||
Stock repurchase program authorized amount | $ 1,000,000 | |||||||
Remaining amount available for further repurchases | $ 500,000 | $ 500,000 | $ 500,000 | |||||
Purchases of treasury stock (in shares) | 984 | [1] | 756 | 1,685 | 1,593 | |||
Aggregate purchased shares | $ 290,000 | [1] | $ 195,211 | $ 535,000 | $ 398,082 | |||
Accelerated Share Repurchase Program February 2022 | ||||||||
Accelerated Share Repurchases [Line Items] | ||||||||
Stock repurchase program authorized amount | $ 200,000 | |||||||
Prepayment to repurchase stock | 200,000 | |||||||
Initial share delivery | $ 160,000 | |||||||
Stock repurchase program, prepayment during prior period, future derivative settlement | $ 40,000 | |||||||
Purchases of treasury stock (in shares) | 700 | |||||||
Purchases of treasury stock (in USD per share) | $ 305.36 | |||||||
Open Market Purchase | ||||||||
Accelerated Share Repurchases [Line Items] | ||||||||
Purchases of treasury stock (in shares) | 200 | |||||||
Purchases of treasury stock (in USD per share) | $ 298.29 | |||||||
Aggregate purchased shares | $ 50,000 | |||||||
[1] | Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. |
Stock Repurchase Program - Stoc
Stock Repurchase Program - Stock Repurchase Activities (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2022 | Mar. 31, 2021 | Apr. 30, 2022 | [1] | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Stock Repurchase Program [Abstract] | |||||||
Purchases of treasury stock (in shares) | 984,000 | 756,000 | 1,685,000 | 1,593,000 | |||
Aggregate purchased shares | $ 290,000 | $ 195,211 | $ 535,000 | $ 398,082 | |||
Reissuance of treasury stock | 683,000 | 946,000 | 1,578,000 | 1,529,000 | |||
Accelerated Share Repurchases [Line Items] | |||||||
Share repurchases settlement of equity forward (in shares) | 161,215 | 166,726 | |||||
December 2021, ASR | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 40,000 | ||||||
December 2020, ASR | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program, prepayment during period, derivative settlement | $ 50,000 | ||||||
[1] | Included the 161,215 shares and $40.0 million equity forward contract from the December 2021 ASR settled in February 2022. |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock-based compensation expense before taxes | [1] | $ 110,061 | $ 79,586 | $ 205,832 | $ 163,368 |
Income tax benefit | (17,852) | (12,407) | (33,386) | (25,469) | |
Stock-based compensation expense after taxes | $ 92,209 | 67,179 | $ 172,446 | 137,899 | |
Restricted Stock Units (RSUs), Market-based | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Grant date fair value (in USD per share) | $ 280.82 | ||||
Expected volatility | 33.01% | ||||
Risk-free interest rate | 1.33% | ||||
Expected term | 1 year 8 months 8 days | ||||
Restricted Stock Units (RSUs), Market-based | Maximum | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Target number of initial award earned, percentage | 187.50% | 187.50% | |||
Cost of products | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock-based compensation expense before taxes | $ 13,078 | 9,304 | $ 24,285 | 18,656 | |
Cost of maintenance and service | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock-based compensation expense before taxes | 5,893 | 3,411 | 10,476 | 6,746 | |
Research and development expense | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock-based compensation expense before taxes | 58,109 | 40,507 | 107,649 | 81,801 | |
Sales and marketing expense | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock-based compensation expense before taxes | 19,291 | 14,551 | 37,092 | 29,710 | |
General and administrative expense | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock-based compensation expense before taxes | $ 13,690 | $ 11,813 | $ 26,330 | $ 26,455 | |
[1] | (1) During the three and six months ended April 30, 2022, we recognized stock-based compensation expense relating to restricted stock units (RSUs), granted to senior executives in February 2022 with certain market, performance and service conditions (market-based RSUs). Under the award agreements, the vesting of the market-based RSUs is contingent on achieving total stockholder return (TSR) relative to a peer index as well as revenue growth metrics. The performance period during which the achievement goals will be measured is fiscal 2022 and fiscal 2023. The maximum potential awards that may be earned are 187.5% of the target number of the initial a wards. The awards will vest in equal increments in December 2023 and December 2024 if the TSR target, revenue growth metrics, and service conditions are achieved. The grant date fair value for the market-based RSUs of $280.82 was determined using a Monte Carlo simulation model with the following assumptions: expected volatility of 33.01%, risk-free interest rate of 1.33% and an expected term of 1.69 years. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 3 Months Ended |
Apr. 30, 2022USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized share-based compensation expense | $ 937.6 |
Weighted-average period of total compensation costs to be recognized in years | 2 years 3 months 18 days |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized share-based compensation expense | $ 76.3 |
Weighted-average period of total compensation costs to be recognized in years | 2 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Intrinsic Value of Equity Awards Exercised (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Stock Compensation [Abstract] | ||||
Intrinsic value of awards exercised | $ 46,464 | $ 71,680 | $ 159,389 | $ 112,204 |
Net Income per Share - Reconcil
Net Income per Share - Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Numerator: | ||||
Net income attributed to Synopsys | $ 294,781 | $ 195,078 | $ 608,468 | $ 357,423 |
Denominator: | ||||
Weighted-average common shares for basic net income per share (shares) | 153,090 | 152,725 | 153,154 | 152,612 |
Dilutive effect of common share equivalents (shares) | 3,077 | 4,352 | 3,661 | 4,614 |
Weighted-average common shares for diluted net income per share (shares) | 156,167 | 157,077 | 156,815 | 157,226 |
Net income per share attributed to Synopsys: | ||||
Basic (in USD per share) | $ 1.93 | $ 1.28 | $ 3.97 | $ 2.34 |
Diluted (in USD per share) | $ 1.89 | $ 1.24 | $ 3.88 | $ 2.27 |
Anti-dilutive employee stock-based awards excluded (shares) | 1,259 | 466 | 986 | 415 |
Segment Disclosure - Additional
Segment Disclosure - Additional information (Detail) | 6 Months Ended |
Apr. 30, 2022Segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segment | 2 |
Segment Disclosure - Schedule o
Segment Disclosure - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,279,229 | $ 1,024,323 | $ 2,549,484 | $ 1,994,644 |
Adjusted operating income | 363,701 | 194,231 | 710,737 | 342,579 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | $ 470,153 | $ 317,240 | $ 929,544 | $ 604,060 |
Adjusted operating margin | 37.00% | 31.00% | 36.00% | 30.00% |
Operating Segments | Semiconductor & System Design: | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,166,377 | $ 930,427 | $ 2,329,071 | $ 1,808,795 |
Adjusted operating income | $ 457,128 | $ 308,816 | $ 904,520 | $ 587,692 |
Adjusted operating margin | 39.00% | 33.00% | 39.00% | 32.00% |
Operating Segments | Software Integrity: | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 112,852 | $ 93,896 | $ 220,413 | $ 185,849 |
Adjusted operating income | $ 13,025 | $ 8,424 | $ 25,024 | $ 16,368 |
Adjusted operating margin | 12.00% | 9.00% | 11.00% | 9.00% |
Segment Disclosure - Schedule_2
Segment Disclosure - Schedule of Segment Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | ||
Segment Reporting Information [Line Items] | |||||
Operating income | $ 363,701 | $ 194,231 | $ 710,737 | $ 342,579 | |
Amortization of intangible expense | (22,048) | (20,793) | (45,160) | (42,107) | |
Stock-based compensation expense | [1] | (110,061) | (79,586) | (205,832) | (163,368) |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 470,153 | 317,240 | 929,544 | 604,060 | |
Reconciling items: | |||||
Segment Reporting Information [Line Items] | |||||
Amortization of intangible expense | (21,367) | (19,721) | (43,727) | (39,997) | |
Stock-based compensation expense | (110,061) | (79,586) | (205,832) | (163,368) | |
Other | $ 24,976 | $ (23,702) | $ 30,752 | $ (58,116) | |
[1] | (1) During the three and six months ended April 30, 2022, we recognized stock-based compensation expense relating to restricted stock units (RSUs), granted to senior executives in February 2022 with certain market, performance and service conditions (market-based RSUs). Under the award agreements, the vesting of the market-based RSUs is contingent on achieving total stockholder return (TSR) relative to a peer index as well as revenue growth metrics. The performance period during which the achievement goals will be measured is fiscal 2022 and fiscal 2023. The maximum potential awards that may be earned are 187.5% of the target number of the initial a wards. The awards will vest in equal increments in December 2023 and December 2024 if the TSR target, revenue growth metrics, and service conditions are achieved. The grant date fair value for the market-based RSUs of $280.82 was determined using a Monte Carlo simulation model with the following assumptions: expected volatility of 33.01%, risk-free interest rate of 1.33% and an expected term of 1.69 years. |
Segment Disclosure - Revenues R
Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | $ 1,279,229 | $ 1,024,323 | $ 2,549,484 | $ 1,994,644 |
United States | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | 577,881 | 471,716 | 1,188,215 | 940,418 |
Europe | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | 116,191 | 106,160 | 248,908 | 211,335 |
China | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | 215,563 | 125,519 | 428,386 | 241,287 |
Korea | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | 119,210 | 105,388 | 233,564 | 203,642 |
Other | ||||
Schedule of Revenues from External Customers [Line Items] | ||||
Total revenue | $ 250,384 | $ 215,540 | $ 450,411 | $ 397,962 |
Other Income (Expense), Net - C
Other Income (Expense), Net - Components of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Other Income (Expense) | ||||
Interest income | $ 1,283 | $ 447 | $ 2,141 | $ 756 |
Interest expense | (400) | (807) | (900) | (1,545) |
Gains (losses) on assets related to deferred compensation plan | (29,310) | 21,358 | (48,909) | 52,224 |
Foreign currency exchange gains (losses) | 4,852 | 2,842 | 3,828 | 2,527 |
Other, net | (338) | (2,076) | 134 | (3,442) |
Total | $ (23,913) | $ 21,764 | $ (43,706) | $ 50,520 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes and Effective Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 339,788 | $ 215,995 | $ 667,031 | $ 393,099 |
Provision for income taxes | $ 45,896 | $ 21,193 | $ 59,798 | $ 36,269 |
Effective tax rate | 13.50% | 9.80% | 9.00% | 9.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2017 | Apr. 30, 2020 | Apr. 30, 2022 | Oct. 31, 2017 | |
Taxes [Line Items] | ||||
Statutory federal income tax rate | 21.00% | |||
Minimum | ||||
Taxes [Line Items] | ||||
Estimated potential decrease in underlying unrecognized tax benefits | $ 0 | |||
Maximum | ||||
Taxes [Line Items] | ||||
Estimated potential decrease in underlying unrecognized tax benefits | $ 40,000,000 | |||
Synopsys Hungary | Foreign Tax Authority | Tax Year 2011 - Tax Year 2013 | Hungarian Tax Authority | ||||
Taxes [Line Items] | ||||
Aggregate tax assessment | $ 25,000,000 | |||
Estimate of additional penalties and interest | $ 11,000,000 | |||
Unrecognized tax benefits | $ 17,400,000 |