Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 31, 2023 | Dec. 06, 2023 | Apr. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2023 | ||
Current Fiscal Year End Date | --10-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-19807 | ||
Entity Registrant Name | SYNOPSYS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 56-1546236 | ||
Entity Address, Address Line One | 675 Almanor Avenue | ||
Entity Address, City or Town | Sunnyvale | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94085 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 46.4 | ||
Entity Common Stock, Shares Outstanding | 151,986,878 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement relating to the registrant’s 2024 Annual Meeting of Stockholders, scheduled to be held on April 10, 2024, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Except as expressly incorporated by reference, the registrant’s Proxy Statement shall not be deemed to be part of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000883241 |
Audit Information
Audit Information | 12 Months Ended |
Oct. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
Auditor Location | Santa Clara, CA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,438,913 | $ 1,417,608 |
Short-term investments | 151,639 | 147,913 |
Total cash, cash equivalents and short-term investments | 1,590,552 | 1,565,521 |
Accounts receivable, net | 946,967 | 796,091 |
Inventories | 325,590 | 211,927 |
Prepaid and other current assets | 567,515 | 439,130 |
Total current assets | 3,430,624 | 3,012,669 |
Property and equipment, net | 557,261 | 483,300 |
Operating lease right-of-use assets, net | 568,829 | 559,090 |
Goodwill | 4,070,336 | 3,842,234 |
Intangible assets, net | 374,194 | 386,446 |
Deferred income taxes | 860,914 | 670,653 |
Other long-term assets | 470,973 | 463,695 |
Total assets | 10,333,131 | 9,418,087 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,123,761 | 809,403 |
Operating lease liabilities | 85,690 | 54,274 |
Deferred revenue | 1,776,000 | 1,910,822 |
Total current liabilities | 2,985,451 | 2,774,499 |
Long-term operating lease liabilities | 584,035 | 581,273 |
Long-term deferred revenue | 175,128 | 154,472 |
Long-term debt | 18,078 | 20,824 |
Other long-term liabilities | 386,138 | 327,829 |
Total liabilities | 4,148,830 | 3,858,897 |
Redeemable non-controlling interest | 31,043 | 38,664 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $0.01 par value: 400,000 shares authorized; 152,053 and 152,375 shares outstanding, respectively | 1,521 | 1,524 |
Capital in excess of par value | 1,276,152 | 1,487,126 |
Retained earnings | 6,741,699 | 5,534,307 |
Treasury stock, at cost: 5,207 and 4,886 shares, respectively | (1,675,650) | (1,272,955) |
Accumulated other comprehensive income (loss) | (196,414) | (234,277) |
Total Synopsys stockholders’ equity | 6,147,308 | 5,515,725 |
Non-controlling interest | 5,950 | 4,801 |
Total stockholders’ equity | 6,153,258 | 5,520,526 |
Total liabilities, redeemable non-controlling interest and stockholders’ equity | $ 10,333,131 | $ 9,418,087 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2023 | Oct. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common Stock, shares outstanding (in shares) | 152,053,000 | 152,375,000 |
Treasury stock, shares (in shares) | 5,207,000 | 4,886,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Revenue: | |||
Total revenue | $ 5,842,619 | $ 5,081,542 | $ 4,204,193 |
Cost of revenue: | |||
Amortization of intangible assets | 74,864 | 66,936 | 48,461 |
Total cost of revenue | 1,222,193 | 1,063,697 | 861,777 |
Gross margin | 4,620,426 | 4,017,845 | 3,342,416 |
Operating expenses: | |||
Research and development | 1,946,813 | 1,680,379 | 1,504,823 |
Sales and marketing | 889,016 | 779,777 | 712,491 |
General and administrative | 410,311 | 353,840 | 322,988 |
Amortization of intangible assets | 28,025 | 29,754 | 33,919 |
Restructuring charges | 77,002 | 12,057 | 33,405 |
Total operating expenses | 3,351,167 | 2,855,807 | 2,607,626 |
Operating income | 1,269,259 | 1,162,038 | 734,790 |
Other income (expense), net | 32,523 | (46,524) | 70,724 |
Income before income taxes | 1,301,782 | 1,115,514 | 805,514 |
Provision (benefit) for income taxes | 83,657 | 137,078 | 49,155 |
Net income | 1,218,125 | 978,436 | 756,359 |
Net income (loss) attributed to non-controlling interest and redeemable non-controlling interest | (11,763) | (6,158) | (1,157) |
Net income attributed to Synopsys | $ 1,229,888 | $ 984,594 | $ 757,516 |
Net income per share attributed to Synopsys: | |||
Basic (in USD per share) | $ 8.08 | $ 6.44 | $ 4.96 |
Diluted (in USD per share) | $ 7.92 | $ 6.29 | $ 4.81 |
Shares used in computing per share amounts: | |||
Basic ( in shares) | 152,146 | 153,002 | 152,698 |
Diluted (in shares) | 155,195 | 156,485 | 157,340 |
Products | |||
Revenue: | |||
Total revenue | $ 4,812,962 | $ 4,220,514 | $ 3,494,826 |
Cost of revenue: | |||
Cost of revenue | 763,494 | 653,783 | 542,114 |
Time-based products | |||
Revenue: | |||
Total revenue | 3,383,632 | 2,993,786 | 2,633,763 |
Upfront products | |||
Revenue: | |||
Total revenue | 1,429,330 | 1,226,728 | 861,063 |
Maintenance and service | |||
Revenue: | |||
Total revenue | 1,029,657 | 861,028 | 709,367 |
Cost of revenue: | |||
Cost of revenue | $ 383,835 | $ 342,978 | $ 271,202 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,218,125 | $ 978,436 | $ 756,359 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (13,912) | (108,145) | 9,415 |
Change in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented | 1,513 | (2,353) | (246) |
Cash flow hedges: | |||
Deferred gains (losses), net of tax of $(8,940), $28,416, and $(1,736) for fiscal years 2023, 2022 and 2021, respectively | 24,986 | (79,069) | 9,860 |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(10,053), $(1,342), and $4,593 for fiscal years 2023, 2022 and 2021, respectively | 25,276 | 4,894 | (14,559) |
Other comprehensive income (loss), net of tax effects | 37,863 | (184,673) | 4,470 |
Comprehensive income | 1,255,988 | 793,763 | 760,829 |
Less: Net income (loss) attributed to non-controlling interest and redeemable non-controlling interest | (11,763) | (6,158) | (1,157) |
Comprehensive income attributed to Synopsys | $ 1,267,751 | $ 799,921 | $ 761,986 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Change in unrealized gains (losses) on available-for-sale securities, tax | $ 0 | $ 0 | $ 0 |
Deferred gains (losses), tax | (8,940) | 28,416 | (1,736) |
Reclassification adjustment on deferred (gains) losses included in net income, tax | $ (10,053) | $ (1,342) | $ 4,593 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | Total Synopsys Stockholders’ Equity | Total Synopsys Stockholders’ Equity Cumulative Effect, Period Of Adoption, Adjustment | Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained Earnings Cumulative Effect, Period Of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning Balance (in shares) at Oct. 31, 2020 | 152,618 | ||||||||||
Beginning balance at Oct. 31, 2020 | $ 4,912,367 | $ 4,907,404 | $ 1,528 | $ 1,653,166 | $ 3,795,397 | $ (488,613) | $ (54,074) | $ 4,963 | |||
Beginning balance (Adjustment Due To Adoption Of Accounting Standards Related To Credit Losses) at Oct. 31, 2020 | $ (3,200) | $ (3,200) | $ (3,200) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 756,359 | 757,516 | 757,516 | (1,157) | |||||||
Other comprehensive income (loss), net of tax effects | $ 4,470 | 4,470 | 4,470 | ||||||||
Purchases of treasury stock (in shares) | (2,780) | (2,780) | |||||||||
Purchases of treasury stock | $ (753,081) | (753,081) | $ (28) | 28 | (753,081) | ||||||
Equity forward contract, net | $ (35,000) | (35,000) | (35,000) | ||||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 3,224 | 3,224 | |||||||||
Common stock issued, net of shares withheld for employee taxes | $ 71,756 | 71,756 | $ 31 | (387,103) | 458,828 | ||||||
Stock-based compensation | 345,272 | 345,272 | 345,272 | ||||||||
Ending Balance (in shares) at Oct. 31, 2021 | 153,062 | ||||||||||
Ending balance at Oct. 31, 2021 | 5,298,943 | 5,295,137 | $ 1,531 | 1,576,363 | 4,549,713 | (782,866) | (49,604) | 3,806 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 983,288 | 984,594 | 984,594 | (1,306) | |||||||
Other comprehensive income (loss), net of tax effects | $ (184,673) | (184,673) | (184,673) | ||||||||
Purchases of treasury stock (in shares) | (3,609) | (3,609) | |||||||||
Purchases of treasury stock | $ (1,135,000) | (1,135,000) | $ (36) | 36 | (1,135,000) | ||||||
Equity forward contract, net | $ 35,000 | 35,000 | 35,000 | ||||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 2,922 | 2,922 | |||||||||
Common stock issued, net of shares withheld for employee taxes | $ 63,939 | 63,939 | $ 29 | (581,001) | 644,911 | ||||||
Stock-based compensation | $ 459,029 | 456,728 | 456,728 | 2,301 | |||||||
Ending Balance (in shares) at Oct. 31, 2022 | 152,375 | 152,375 | |||||||||
Ending balance at Oct. 31, 2022 | $ 5,520,526 | 5,515,725 | $ 1,524 | 1,487,126 | 5,534,307 | (1,272,955) | (234,277) | 4,801 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 1,228,127 | 1,229,888 | 1,229,888 | (1,761) | |||||||
Other comprehensive income (loss), net of tax effects | $ 37,863 | 37,863 | 37,863 | ||||||||
Purchases of treasury stock (in shares) | (2,992) | (2,992) | |||||||||
Purchases of treasury stock | $ (1,160,724) | (1,160,724) | $ (30) | 30 | (1,160,724) | ||||||
Equity forward contract, net | $ (45,000) | (45,000) | (45,000) | ||||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 2,670 | 2,670 | |||||||||
Common stock issued, net of shares withheld for employee taxes | $ 13,737 | 13,737 | $ 27 | (725,211) | (19,108) | 758,029 | |||||
Stock-based compensation | 563,292 | 558,078 | 558,078 | 5,214 | |||||||
Adjustments to redeemable non-controlling interest | (3,388) | (3,388) | (3,388) | ||||||||
Recognition of non-controlling interest upon issuance of subsidiary stock | $ (1,175) | 1,129 | 1,129 | (2,304) | |||||||
Ending Balance (in shares) at Oct. 31, 2023 | 152,053 | 152,053 | |||||||||
Ending balance at Oct. 31, 2023 | $ 6,153,258 | $ 6,147,308 | $ 1,521 | $ 1,276,152 | $ 6,741,699 | $ (1,675,650) | $ (196,414) | $ 5,950 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 1,218,125 | $ 978,436 | $ 756,359 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization and depreciation | 247,120 | 228,405 | 203,676 |
Reduction of operating lease right-of-use assets | 97,705 | 89,541 | 86,645 |
Amortization of capitalized costs to obtain revenue contracts | 82,190 | 73,026 | 64,698 |
Stock-based compensation | 563,292 | 459,029 | 345,272 |
Allowance for credit losses | 19,932 | (3,477) | 18,515 |
Deferred income taxes | (211,045) | (36,913) | (128,583) |
Other non-cash | 13,295 | 10,188 | 15,859 |
Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities: | |||
Accounts receivable | (178,432) | (251,390) | 201,706 |
Inventories | (123,752) | 1,320 | (48,046) |
Prepaid and other current assets | (106,396) | (89,983) | (102,174) |
Other long-term assets | (100,618) | (15,283) | (153,037) |
Accounts payable and accrued liabilities | 170,496 | (34,066) | 125,133 |
Operating lease liabilities | (73,281) | (85,828) | (82,581) |
Income taxes | 198,078 | 1,644 | 28,855 |
Deferred revenue | (113,435) | 414,251 | 160,325 |
Net cash provided by operating activities | 1,703,274 | 1,738,900 | 1,492,622 |
Cash flows from investing activities: | |||
Proceeds from sales and maturities of short-term investments | 130,435 | 93,696 | 12,850 |
Purchases of short-term investments | (131,079) | (97,245) | (161,732) |
Proceeds from sales of long-term investments | 8,492 | 582 | 0 |
Purchases of long-term investments | (435) | (7,000) | (7,591) |
Purchases of property and equipment | (189,618) | (136,589) | (93,764) |
Acquisitions, net of cash acquired | (297,692) | (422,374) | (296,017) |
Capitalization of software development costs | (2,204) | (2,493) | (1,976) |
Other | 0 | (1,200) | (800) |
Net cash used in investing activities | (482,101) | (572,623) | (549,030) |
Cash flows from financing activities: | |||
Repayment of debt | (2,603) | (76,838) | (28,061) |
Issuances of common stock | 252,986 | 237,956 | 210,719 |
Payments for taxes related to net share settlement of equity awards | (241,408) | (174,005) | (138,950) |
Purchase of equity forward contract | (45,000) | 0 | (35,000) |
Purchases of treasury stock | (1,160,724) | (1,100,000) | (753,081) |
Other | (122) | (3,413) | (4,375) |
Net cash used in financing activities | (1,196,871) | (1,116,300) | (748,748) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,979) | (65,296) | 2,369 |
Net change in cash, cash equivalents and restricted cash | 21,323 | (15,319) | 197,213 |
Cash, cash equivalents and restricted cash, beginning of year | 1,419,864 | 1,435,183 | 1,237,970 |
Cash, cash equivalents and restricted cash, end of year | 1,441,187 | 1,419,864 | 1,435,183 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes during the year: | 97,956 | 167,768 | 149,762 |
Interest payments during the year: | 996 | 1,258 | 3,365 |
Non-cash activities: | |||
Purchase of property and equipment included in accounts payable | 21,672 | 17,857 | 8,654 |
Conversion of notes receivable to non-marketable equity securities | $ 2,000 | $ 14,280 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Synopsys, Inc. (Synopsys, we, our or us) provides products and services used across the entire Silicon to Software spectrum to bring Smart Everything to life. From engineers creating advanced semiconductors to product teams developing advanced electronic systems to software developers seeking to ensure the security and quality of their code, our customers trust that our technologies will enable them to meet new requirements for energy efficiency, reliability, mobility, security and more. We are a global leader in supplying the electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs), also known as chips or silicon. We provide software and hardware used to validate the electronic systems that incorporate chips and the software that runs on them, including cloud-based digital design flow to boost chip-design development productivity. We also provide technical services and support to help our customers develop advanced chips and electronic systems. These products and services are part of our Design Automation segment. We also offer a broad and comprehensive portfolio of semiconductor intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. These products and services are part of our Design IP segment. We are also a leading provider of software tools and services that improve the security, quality and compliance of software in a wide variety of industries, including electronics, financial services, automotive, medicine, energy and industrials. These tools and services are part of our Software Integrity segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | Summary of Significant Accounting Policies and Basis of Presentation Basis of Presentation and Principles of Consolidation. Our fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, we have a 53-week year. When a 53-week year occurs, we include the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2023, 2022 and 2021 were 52-week years ending on October 28, 2023, October 29, 2022, and October 30, 2021, respectively. For presentation purposes, the consolidated financial statements and accompanying notes refer to the closest calendar month end. Fiscal 2024 will be a 53-week year. The consolidated financial statements include our accounts and the accounts of our wholly and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates. To prepare financial statements in conformity with U.S. generally accepted accounting principles, management must make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates and could have a material impact on our operating results and financial position. Comparability. Effective beginning of fiscal 2022, we adopted an Accounting Standards Update (ASU) to simplify the accounting for income taxes in Accounting Standards Codification (ASC) 740, Income Taxes, on a prospective basis. Effective beginning the second quarter of fiscal 2022, we early adopted an ASU, on a prospective basis, to apply revenue guidance to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination on the acquisition date, instead of measuring them at fair value. The adoption of these updates did not have a material impact on our consolidated financial statements. Effective in the first quarter of fiscal 2023, we changed our reportable segments from two reportable segments to three reportable segments, as described in Segment Reporting policy below. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation. The reclassifications, including the segment change, did not have a material impact on the prior year's consolidated balance sheets, statements of income, statements of comprehensive income and statements of cash flows. Cash Equivalents and Short-term Investments . We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Our investments in debt securities with remaining maturities greater than three months at the date of purchase are designated as available-for-sale securities as we may convert these investments into cash at any time to fund general operations, and included in short-term investments on the consolidated balance sheet. Our debt securities generally have an effective maturity term of less than three years and are carried at fair value, with unrealized gains and losses included in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). For available-for-sale debt securities in an unrealized loss position, we evaluate whether a current expected credit loss exists based on available information relevant to the credit rating of the security, current economic conditions and reasonable and supportable forecasts. The allowance for credit loss is recorded in other income (expense), net, on the consolidated statements of income, not to exceed the amount of the unrealized loss. Any excess unrealized loss other than the credit loss is recognized in accumulated other comprehensive income or loss in the stockholders' equity section of the consolidated balance sheets. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net. See Note 7. Financial Assets and Liabilities of the Notes to Consolidated Financial Statements . Investments in Equity Securities. We hold equity securities in privately held companies for the promotion of business and strategic objectives. We account for these investments using either the measurement alternative approach when the fair value of the investment is not readily determinable and we do not have the ability to exercise significant influence, or the equity method of accounting when it is determined that we have the ability to exercise significant influence. Investments accounted for using the measurement alternative approach are initially recorded at cost and adjusted for changes in fair value from observable transactions. For investments accounted for using the equity method of accounting, we record our proportionate share of the investee’s income or loss to other income (expense), net, in our consolidated statements of income. These investments are subject to a periodic impairment review, and are included in other long-term assets on the consolidated balance sheets. Accounts Receivable, Net. The balances consist of billed accounts receivable and current portion of unbilled accounts receivable. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Allowance for Credit Losses. We maintain an allowance for credit losses for expected uncollectible accounts receivable and contract assets, which is recorded as an offset to accounts receivable or contract assets and provisions for credit losses are recorded in general and administrative expense in the consolidated statements of income. The allowance for current expected credit losses is based on a review of customer accounts and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The allowance for credit losses is reviewed on a quarterly basis to assess the adequacy of the allowance. The following table presents the changes in the allowance for credit losses: Fiscal Year Balance at Provisions Write-offs/Adjustments Balance at (in thousands) 2023 $ 41,236 $ 19,932 $ (6,763) $ 54,405 2022 $ 31,605 $ 12,424 $ (2,793) $ 41,236 2021 $ 29,489 $ 18,515 $ (16,399) $ 31,605 Inventories. Inventories are computed at standard costs which approximate actual costs, on a first-in, first-out basis and valued at the lower of cost or net realizable value. Inventories primarily include components and finished goods for complex emulation and prototyping hardware systems. The valuation process includes a review of the forecasts based upon future demand and market conditions. Inventory provisions are recorded when the costs are determined to be in excess of anticipated demand or considered obsolete. Inventory provisions are impacted by market and economic conditions, technology changes, new product introductions and changes in strategic direction, and require estimates that may include uncertain elements. Fair Values of Financial Instruments. Our cash equivalents, short-term investments and foreign currency contracts are carried at fair value. The fair value of our accounts receivable and accounts payable approximates the carrying amount due to their short duration. Non-marketable equity securities are accounted for using either the measurement alternative or equity method of accounting. We perform periodic impairment analysis on these non-marketable equity securities. The carrying amount of the short-term and long-term debt approximates the estimated fair value. See Note 8. Fair Value Measurements of the Notes to Consolidated Financial Statements . Foreign Currency Contracts. We operate internationally and are exposed to potentially adverse movements in 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. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. See Note 7. Financial Assets and Liabilities of the Notes to Consolidated Financial Statements . Concentration of Credit Risk. Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash equivalents, short-term investments, foreign currency contracts, and trade accounts receivable. We maintain cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U.S. and in various overseas locations. Our short-term investments include a variety of financial instruments, such as corporate debt and municipal securities, U.S. Treasury and Government agency securities. By policy, we limit the amount of credit exposure with any one issue, issuer and type of instrument. We sell our products worldwide primarily to customers in the global electronics market. We perform on-going credit evaluations of our customers’ financial condition and do not require collateral. We establish reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented. Income Taxes. We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We account for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Assets, excluding land, are depreciated using the straight-line method over their estimated useful lives. Depreciation expenses were $145.1 million, $107.7 million and $119.1 million in fiscal 2023, 2022 and 2021, respectively. Repair and maintenance costs are expensed as incurred and such costs were $84.0 million, $72.9 million and $62.6 million in fiscal 2023, 2022 and 2021, respectively. The useful lives of depreciable assets are as follows: Useful Life in Years Computer and other equipment 3 - 8 Buildings 30 Furniture and fixtures 5 Leasehold improvements Shorter of the lease term or the estimated useful life Leases . We determine if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. A contract is or contains a lease when we have the right to control the use of an identified asset for a period of time. The commencement date of the lease is the date that the lessor makes an underlying asset available for use by the lessee. On the commencement date, leases are evaluated for classification and assets and liabilities are recognized based on the present value of lease payments over the lease term. The lease term used to calculate the lease liability includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The right of use (ROU) asset is initially measured as the amount of lease liability, adjusted for any initial lease costs, prepaid lease payments and any lease incentives. Variable lease payments, consisting primarily of reimbursement of costs incurred by lessors for common area maintenance, real estate taxes and insurance, are not included in the lease liability and are recognized as they are incurred. As most of our leases do not provide an implicit rate, we use the incremental borrowing rate at lease commencement to measure ROU assets and lease liabilities. We use a benchmark senior unsecured yield curve for debt instruments over the similar term, and consider specific credit quality, market conditions, tenor of lease arrangements, and quality of collateral to determine the incremental borrowing rate. Operating lease expense is generally recognized on a straight-line basis over the lease term. We have elected the practical expedient to account for the lease and non-lease components as a single lease component for the majority of our asset classes. For leases with an initial term of one year or less, we have elected not to record the ROU asset or liability. Business Combinations. We allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their acquisition-date fair values with the exception of contract assets and contract liabilities (deferred revenue) which are recognized and measured on the acquisition date in accordance with our “Revenue Recognition” policy. The excess of the fair value of purchase consideration over the fair value of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. We include the results of operations of the businesses that are acquired from the acquisition date. Goodwill. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by us. The carrying amount of goodwill at each reporting unit is tested for impairment annually on the first day of the fourth fiscal quarter, or more frequently if facts and circumstances warrant a review. We perform either a qualitative or quantitative assessment for goodwill impairment test. When a quantitative goodwill impairment assessment is performed, we use an income approach based on discounted cash flow analysis, a market approach based on market multiples, or a combination of both. If the fair value of a reporting unit is less than its carrying value, a goodwill impairment loss is recorded for the difference. There was no goodwill impairment in fiscal 2023, 2022 and 2021. Intangible Assets. Intangible assets consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, and capitalized software. These intangible assets are acquired through business combinations, direct purchases, or internally developed capitalized software. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from one We review the carrying values of long-lived assets including intangible assets whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. Recoverability of long-lived assets is measured by comparing the carrying value of such asset group to the future undiscounted cash flows that asset group is expected to generate. If the undiscounted future cash flow is less than the carrying amount of the asset group, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the asset group. There were no impairment charges for long-lived assets in fiscal 2023, 2022 and 2021. Redeemable Non-controlling Interest. Non-controlling interest that is not solely redeemable within our control is reported as temporary equity in our 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 remeasure the redemption value of the non-controlling interest on a quarterly basis and changes in the estimated redemption value are recognized through retained earnings and may also impact the net income or loss attributable to common stockholders of Synopsys if the redemption value falls below a stated threshold. See Note 4. Business Combinations of the Notes to Consolidated Financial Statements for more information regarding the redeemable non-controlling interests. Revenue Recognition. We recognize revenue for the transfer of services or products to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those services or products. The principle is achieved through the following five-step approach: • Identification of the contract, or contracts, with the customer • Identification of the performance obligation in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Nature of Products and Services We generate revenue from the licensing of our EDA software, IP Blocks, and Software Integrity products, as well as sale of hardware products, and maintenance and services. The various types are set forth below. Electronic Design Automation Software license revenue consists of fees associated with the licensing of our software primarily through Technology Subscription License (TSL) contracts. TSLs are time-based licenses for a finite term and generally provide the customer with limited rights to receive, or to exchange certain quantities of licensed software for, unspecified future technology. The majority of our arrangements are TSLs due to the nature of our business and customer requirements. In addition to the licenses, the arrangements also include: post-contract customer support, which includes providing frequent updates and upgrades to maintain the utility of the software due to rapid changes in technology; other intertwined services such as multiple copies of the tools; assisting our customers in applying our technology in the customers' development environment; and rights to remix licenses for other licenses. Payments are generally received in equal or near equal installments over the term of the arrangement. We have concluded that our software licenses in TSL contracts are not distinct from our obligation to provide unspecified software updates to the licensed software throughout the license term. Such updates represent inputs to a single, combined performance obligation, commencing upon the later of the arrangement effective date or transfer of control to the software license. Remix rights are not an additional promised good or service in the contract, and where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same pattern of transfer to the customer over the duration of the subscription term. Design IP Products We generally license IP under nonexclusive license agreements that provide usage rights for specific applications. Additionally, for certain IP license agreements, royalties are collected as customers sell their own products that incorporate our IP. These arrangements generally have two distinct performance obligations that consist of transferring the licensed IP and the post contract support service. Support services consist of a stand-ready obligation to provide technical support and software updates over the support term. Revenue allocated to the IP license is recognized at a point in time upon the later of the delivery date or the beginning of the license period, and revenue allocated to support services is recognized ratably over the support term. Royalties are recognized as revenue is earned, generally when the customer sells its products that incorporate our IP. Software Integrity Products Software Integrity product arrangements provide customers the right to software licenses, software updates and technical support. Under the term of these arrangements, the customer expects to receive integral updates to the software licenses that protect the customer’s software from potential security vulnerabilities. The licenses and software updates together serve to fulfill our commitment to the customer, as they represent inputs to a single, combined performance obligation that commences upon the later of the arrangement effective date or transfer of the software license. Software updates are part of the contract with the customer, and such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer . Hardware We generally have two performance obligations in arrangements involving the sale of hardware products. The first performance obligation is to transfer the hardware product, which includes embedded software integral to the functionality of the hardware product. The second performance obligation is to provide maintenance on the hardware and our embedded software, including rights to technical support, hardware repairs and software updates that are all provided over the same term and have the same time-based pattern of transfer to the customer. The portion of the transaction price allocated to the hardware product is recognized as revenue at a point in time when control of the hardware is transferred to the customer. We have concluded that control generally transfers upon shipment because the customer has the ability to direct the use of the asset and an obligation to pay for the hardware. The portion of the transaction price allocated to maintenance is recognized as revenue that is ratable over the maintenance term. Professional Services Our arrangements often include service elements (other than maintenance and support services). These services include training, design assistance, and consulting. These services are generally performed on a time and materials basis, and are recognized over time, as the customer simultaneously receives and consumes the benefit provided. Certain arrangements also include the customization or modification of licensed IP. Revenue from these contracts is recognized over time as the services are performed, when the development is specific to the customer’s needs and we have enforceable rights to payment for performance completed. Inputs such as costs incurred and hours expended are used in order to measure progress of performance. We have a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances, specification and testing requirement changes, and changes in customer delivery priorities. Payments for services are generally due upon milestones in the contract or upon consumption of the hourly resources. Flexible Spending Accounts Our customers frequently enter into non-cancelable Flexible Spending Account arrangements (FSA) whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of our products or services. These arrangements do not meet the definition of a revenue contract until the customer executes a separate order (pulldown request) to identify the required products and services that they are purchasing. The combination of the FSA arrangement and the subsequent order creates enforceable rights and obligations, thus meeting the definition of a revenue contract. Each separate order under the agreement is treated as an individual contract and accounted for based on the respective performance obligations included within the pulldown requests. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether services and products are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment . We have concluded that (1) our EDA software licenses in TSL contracts are not distinct from our obligation to provide unspecified software updates to the licensed software throughout the license term, because those promises represent inputs to a single, combined performance obligation, and (2) where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support, because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer. In reaching this conclusion, we considered the nature of the obligation to customers which is to provide an ongoing right to use the most up to date and relevant software. As EDA customers operate in a rapidly changing and competitive environment, satisfying the obligation requires providing critical updates to the existing software products, including ongoing iterative interaction with customers to make the software relevant to customers’ ability to meet the time to go to market with advanced products. Similarly, we also concluded that in our Software Integrity business, the licenses and maintenance updates serve together to fulfill our commitment to the customer as both work together to provide the functionality to the customer and represent a combined performance obligation because the updates are essential to the software’s central utility, which is to identify security vulnerabilities and other threats. Our contracts with customers can involve hundreds of products and various license rights. Customers often negotiate a broad portfolio of solutions, and favorable terms along with future purchase options to manage their overall costs. Determining whether the purchase options are considered distinct performance obligations that should be accounted for separately as material rights versus combined together may require significant judgment. Judgment is also required to determine the standalone selling price (SSP) for each distinct performance obligation. For non-software performance obligations (IP, Hardware, and services), SSP is established based on observable prices of products and services sold separately. SSP for license (and related updates and support) in a contract with multiple performance obligations is determined by applying a residual approach whereby all other non-software performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSP, using observable prices, with any residual amount of the transaction price allocated to the license because we do not sell the license separately, and the pricing is highly variable. Contract Balances The timing of revenue recognition may differ from the timing of invoicing customers, and these timing differences result in receivables (billed or unbilled), contract assets, or contract liabilities (deferred revenue) on our consolidated balance sheet. We record a contract asset when revenue is recognized prior to the right to invoice, or deferred revenue when revenue is recognized subsequent to invoicing. For time-based software agreements, customers are generally invoiced in equal, quarterly amounts, although some customers prefer to be invoiced in single or annual amounts. We record an unbilled receivable when revenue is recognized and we have an unconditional right to invoice and receive payment. Warranties and Indemnities Warranties. We generally warrant our products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for our software products and for up to six months for our hardware products. Indemnities. In addition to such warranties, in certain cases, we provide our customers with limited indemnification with respect to claims that their use of our software products infringes on patents, copyrights, trademarks or trade secrets. For example, in connection with a litigation campaign launched by Bell Semiconductor LLC (Bell Semic), a patent monetization entity, some customers have requested defense and indemnification against claims of patent infringement asserted by Bell Semic in various district court litigations and at the U.S. International Trade Commission. Bell Semic alleges that the customers’ use of one or more features of certain of our products infringes one or more of six patents held by Bell Semic. We have offered to defend some of our customers consistent with the terms of our End User License Agreement. We are unable to estimate the potential impact of these commitments on the future results of operations. Net Income Per Share. We 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 restricted stock units and awards during the period using the treasury stock method. See Note 14. Net Income Per Share of the Notes to Consolidated Financial Statements. Foreign Currency Translation. The functional currency of the majority of our active foreign subsidiaries is the foreign subsidiary’s local currency. Assets and liabilities that are not denominated in the functional currency are remeasured into the functional currency with any related gains or losses recorded in earnings. We translate assets and liabilities of our non-U.S. dollar functional currency foreign operations into the U.S. dollar reporting currency at exchange rates in effect at the balance sheet date. We translate income and expense items of such foreign operations into the U.S. dollar reporting currency at average exchange rates for the period. Accumulated translation adjustments are reported in stockholders’ equity, as a component of accumulated other comprehensive income (loss). Segment Reporting. Effective in the first quarter of fiscal 2023, we realigned our organizational structure to evaluate the results of our Design IP business separately. Our Chief Operating Decision Maker (CODM), our Chief Executive Officer (CEO), now regularly reviews disaggregated segment information, assesses performance against our key growth strategies and allocates resources based on this new organizational structure. As a result, effective in the first quarter of fiscal 2023, we changed our reportable segments from two reportable segments to the following three reportable segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, system integration products and services, digital, custom and FPGA IC design software, verification software and hardware products, manufacturing software products and other; (2) Design IP, which includes our Design IP products; and (3) Software Integrity, which includes solutions that test software code for security vulnerabilities and quality defects, as well as professional and managed services. As such, prior period reportable segment results and related disclosures have been reclassified to reflect our current reportable segments. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (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 p |
Revenue
Revenue | 12 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue The following table shows the percentage of revenue by product groups: Year Ended October 31, 2023 2022 2021 EDA 62.9 % 62.9 % 63.6 % Design IP 26.4 % 25.9 % 25.1 % Software Integrity 9.0 % 9.2 % 9.4 % Other 1.7 % 2.0 % 1.9 % Total 100.0 % 100.0 % 100.0 % Contract Balances The contract assets indicated below are presented as prepaid and other current assets in the 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 consolidated balance sheets. Contract balances are as follows: As of October 31, 2023 2022 (in thousands) Contract assets, net $ 389,042 $ 260,498 Unbilled receivables $ 60,016 $ 46,254 Deferred revenue $ 1,951,128 $ 2,065,294 During fiscal 2023, we recognized revenue of $1.7 billion, including previously unfulfilled contracts that have expired and are no longer subject to an implied promise to provide future services, that was included in the deferred revenue balance as of October 31, 2022. During fiscal 2022, we recognized revenue of $1.2 billion that was included in the deferred revenue balance as of October 31, 2021. Contracted but unsatisfied or partially unsatisfied performance obligations (backlog) were approximately $8.6 billion as of October 31, 2023, which includes $1.4 billion in non-cancellable Flexible Spending Account (FSA) commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date. We have elected to exclude future sales-based royalty payments from the remaining performance obligations. Approximately 40% of the backlog as of October 31, 2023, excluding non-cancellable FSA, is expected to be recognized as revenue over the next 12 months. The majority of the remaining backlog is expected to be recognized in the following three years. The backlog was approximately $7.1 billion as of October 31, 2022, which included $1.1 billion in non-cancellable FSA commitments from customers. During fiscal 2023 and 2022, we recognized $99.3 million and $137.3 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods. Costs of Obtaining a Contract with Customer The incremental costs of obtaining a contract with a customer, which consist primarily of direct sales commission earned upon execution of the contract, were capitalized in compliance with authoritative guidance, and amortized over the estimated period of which the benefit is expected to be received. As direct sales commission paid for renewals are commensurate with the amounts paid for initial contracts, the deferred incremental costs will be recognized over the contract term. Capitalized commission costs, net of accumulated amortization, as of October 31, 2023 and 2022 were $88.6 million and $96.5 million, respectively. The balances are included in other long-term assets in our consolidated balance sheets. Amortization of these assets were $82.2 million, $73.0 million and $64.7 million during fiscal 2023, 2022 and 2021, respectively, and are included in sales and marketing expense in our consolidated statements of income. |
Business Combinations
Business Combinations | 12 Months Ended |
Oct. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Fiscal 2023 During fiscal 2023, we completed several acquisitions for an aggregate purchase consideration of $295.4 million, net of cash acquired. The aggregate purchase consideration was preliminary and allocated as follows: $95.8 million to identifiable intangible assets, $229.4 million to goodwill, and $29.8 million to net tangible liabilities. The acquired identifiable intangible assets were valued using the income approach and are being amortized over their respective useful lives ranging from 1 to 8 years. The goodwill recognized from these acquisitions was assigned to the Design Automation reporting unit, of which $5.7 million was deductible for income tax purposes. We have included the financial results of the fiscal 2023 acquisitions in our consolidated financial statements from their respective acquisition date. We do not consider these acquisitions to be material, individually or in the aggregate, to our consolidated financial statements. Fiscal 2022 NTT Security AppSec Solutions Inc. On June 22, 2022, we completed the acquisition of all outstanding shares of NTT Security AppSec Solutions Inc. (which operated under the name WhiteHat Security, or WhiteHat), a provider of dynamic application security testing solutions, from NTT Security Corporation for an aggregate purchase price of $310.0 million, net of cash acquired. With this acquisition, we broadened our product offering in the application security testing market. The aggregate purchase consideration was allocated as follows: $97.5 million to identifiable intangible assets, $252.9 million to goodwill, and $40.4 million to net tangible liabilities. The goodwill was assigned to the Software Integrity reporting unit and the amount recognized was not deductible for tax purposes. The acquired identifiable intangible assets of $97.5 million were valued using the income approach and are being amortized over their respective useful lives ranging from 5 to 10 years. OpenLight Photonics, Inc. During the second quarter of fiscal 2022, we acquired a 75% equity interest in OpenLight Photonics, Inc. (OpenLight) for cash consideration of $90.0 million. The remaining 25% equity interest in OpenLight is held by Juniper Networks, Inc. (the Minority Investor) from their contribution of IP and certain tangible assets. The agreement with the Minority Investor contains redemption features whereby the interest held by the Minority Investor is redeemable either (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. The purchase price was allocated as follows: $94.0 million to identifiable intangible assets and $46.7 million to goodwill, which were attributable to the Design Automation reporting unit. There was no tax-deductible goodwill related to the acquisition. During fiscal 2023, our ownership interest in OpenLight was reduced to 73% as a result of the recognition of non-controlling interest upon issuance of OpenLight stock. During fiscal 2023, OpenLight incurred a net loss of $40.9 million, of which $10.0 million was attributable to redeemable non-controlling interest. As of October 31, 2023, the carrying value of the redeemable non-controlling interest was $31.0 million in the consolidated balance sheets. Other Fiscal 2022 Acquisitions During fiscal 2022, we completed two other acquisitions for aggregate purchase consideration of $31.8 million, net of cash acquired. The purchase price was allocated as follows: $12.7 million to identifiable intangible assets, $3.1 million to net tangible liabilities, and $22.2 million to goodwill, which were attributable to the Design Automation reporting unit . There was no tax-deductible goodwill related to the acquisitions. Fiscal 2021 During fiscal 2021, we completed several acquisitions for an aggregate consideration of $298.9 million, net of cash acquired. We do not consider these acquisitions to be material, individually or in the aggregate, to our consolidated financial statements. Total purchase consideration was allocated as follows: $109.3 million to identifiable intangible assets, $16.2 million to net tangible liabilities, and $205.8 million to goodwill, of which $150.4 million was attributable to the Design Automation reporting unit, $9.7 million was attributable to the Designed IP reporting unit, and $45.7 million was attributable to the Software Integrity reporting unit. Approximately $34.0 million of the goodwill related to the fiscal 2021 acquisitions was deductible for tax purposes. Preliminary Fair Value Estimates For all acquisitions completed in fiscal 2023, the purchase price was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their preliminary estimated fair values, which were determined using generally accepted valuation techniques based on estimates and assumptions made by management at the time of acquisition. These estimates and assumptions are subject to change as additional information becomes available during the respective measurement period, which is not expected to exceed 12 months from applicable acquisition date. The primary areas of those preliminary estimates relate to certain tangible assets and liabilities, identifiable intangible assets, and income taxes. Acquisition-Related Transaction Costs Acquisition-related transaction costs were $15.1 million, $14.1 million and $15.4 million during fiscal 2023, 2022 and 2021, respectively. These costs consist of professional fees and administrative costs and were expensed as incurred in our consolidated statements of income. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in business combinations. As a result of the change in reporting units effective in the first quarter of fiscal 2023, we have three reportable segments, and reporting units are determined to be the same as reportable segments. We performed a quantitative impairment assessment by estimating the fair value of our new reporting units and reallocating goodwill to the reporting units using a relative fair value method. No impairment of goodwill was identified before and after the change in reporting units. We also performed the required annual goodwill impairment test in the fourth quarter of fiscal 2023 and concluded that goodwill was not impaired. Goodwill activity by reportable segment consists of the following: Design Automation Design IP Software Integrity Total (in thousands) Balance at October 31, 2021 $ 2,156,732 $ 947,742 $ 471,311 $ 3,575,785 Additions 68,923 — 249,852 318,775 Adjustments 1,285 — — 1,285 Effect of foreign currency translation (50,603) (3,008) — (53,611) Balance at October 31, 2022 2,176,337 944,734 721,163 3,842,234 Additions 229,351 — — 229,351 Adjustments — — 3,097 3,097 Effect of foreign currency translation (5,006) 649 11 (4,346) Balance at October 31, 2023 $ 2,400,682 $ 945,383 $ 724,271 $ 4,070,336 Intangible Assets Intangible assets as of October 31, 2023 consists of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,135,347 $ 885,555 $ 249,792 Customer relationships 463,371 358,421 104,950 Contract rights intangible 194,930 190,670 4,260 Trademarks and trade names 52,825 37,633 15,192 Capitalized software development costs 50,795 50,795 — Total $ 1,897,268 $ 1,523,074 $ 374,194 Intangible assets as of October 31, 2022 consists of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,083,703 $ 813,226 $ 270,477 Customer relationships 426,242 333,984 92,258 Contract rights intangible 190,666 188,262 2,404 Trademarks and trade names 52,795 34,054 18,741 Capitalized software development costs 48,591 46,025 2,566 Total $ 1,801,997 $ 1,415,551 $ 386,446 Amortization expense related to intangible assets consists of the following: Year Ended October 31, 2023 2022 2021 (in thousands) Core/developed technology $ 72,412 $ 64,469 $ 46,049 Customer relationships 24,446 26,640 31,478 Contract rights intangible 2,452 2,682 2,413 Trademarks and trade names 3,579 2,899 2,440 Capitalized software development costs (1) 4,771 2,672 4,067 Total $ 107,660 $ 99,362 $ 86,447 (1) Amortization of capitalized software development costs is included in cost of products revenue in the consolidated statements of income. The following table presents the estimated future amortization of intangible assets as of October 31, 2023: Fiscal Year (in thousands) 2024 $ 103,108 2025 84,588 2026 71,406 2027 51,205 2028 25,807 2029 and thereafter 38,080 Total $ 374,194 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Oct. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components As of October 31, 2023 2022 (in thousands) Accounts receivable, net: Accounts receivable $ 929,673 $ 779,390 Unbilled accounts receivable 60,016 46,254 Total accounts receivable 989,689 825,644 Less: allowance for credit losses (42,722) (29,553) Total $ 946,967 $ 796,091 Property and equipment, net: Computer and other equipment $ 991,994 $ 870,388 Buildings 135,255 135,722 Furniture and fixtures 86,946 80,885 Land 21,598 21,598 Leasehold improvements 265,536 241,062 1,501,329 1,349,655 Less: accumulated depreciation (1) (944,068) (866,355) Total $ 557,261 $ 483,300 Other long-term assets: Deferred compensation plan assets $ 300,731 $ 279,096 Capitalized commission, net 88,614 96,509 Other 81,628 88,090 Total $ 470,973 $ 463,695 Accounts payable and accrued liabilities: Payroll and related benefits $ 583,854 $ 559,886 Accrued income taxes 226,762 35,290 Other accrued liabilities 157,254 176,647 Accounts payable 155,891 37,580 Total $ 1,123,761 $ 809,403 Other long-term liabilities: Deferred compensation plan liabilities $ 300,731 $ 279,096 Other 85,407 48,733 Total $ 386,138 $ 327,829 (1) Accumulated depreciation includes write-offs due to retirement of fully depreciated fixed assets. |
Financial Assets and Liabilitie
Financial Assets and Liabilities | 12 Months Ended |
Oct. 31, 2023 | |
Financial Assets And Liabilities [Abstract] | |
Financial Assets and Liabilities | Financial Assets and Liabilities Cash Equivalents and Short-term Investments As of October 31, 2023, the balances of our cash equivalents and short-term investments are as follows: Amortized Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 10,129 $ — $ — $ — $ 10,129 U.S. Treasury, agency & T-bills 2,994 — — — 2,994 Total: $ 13,123 $ — $ — $ — $ 13,123 Short-term investments: U.S. Treasury, agency & T-bills $ 15,752 $ — $ (61) $ (2) $ 15,689 Municipal bonds 515 — — (16) 499 Corporate debt securities 103,213 13 (455) (396) 102,375 Asset-backed securities 33,245 21 (93) (97) 33,076 Total: $ 152,725 $ 34 $ (609) $ (511) $ 151,639 (1) See Note 8. Fair Value Measurements for further discussion on fair values. Our short-term investment portfolio includes both corporate and government debt securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. Most of our unrealized losses are due to changes in market interest rates, and bond yields. We believe that we have the ability to realize the full value of all of these investments upon maturity. As of October 31, 2023, our investments that were in a continuous loss position of 12 months or more, as well as the unrealized losses on those investments, were immaterial. The contractual maturities of our available-for-sale debt securities as of October 31, 2023 are as follows: Amortized Cost Fair Value (in thousands) Less than 1 year $ 74,398 $ 73,879 1-5 years 74,604 74,104 5-10 years 1,723 1,721 >10 years 2,000 1,935 Total $ 152,725 $ 151,639 As of October 31, 2022, the balances of our cash equivalents and short-term investments are as follows: Amortized Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 77,683 $ — $ — $ — $ 77,683 Total: $ 77,683 $ — $ — $ — $ 77,683 Short-term investments: U.S. Treasury, agency & T-bills $ 25,816 $ — $ (174) $ (39) $ 25,603 Municipal bonds 2,970 — (12) (80) 2,878 Corporate debt securities 95,899 7 (747) (1,135) 94,024 Asset-backed securities 25,826 — (149) (269) 25,408 Total: $ 150,511 $ 7 $ (1,082) $ (1,523) $ 147,913 (1) See Note 8. Fair Value Measurements for further discussion on fair values. Restricted cash We include amounts generally described as restricted cash in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the consolidated statements of cash flows. Restricted cash is primarily associated with office leases and employee loan programs. The following table provides a reconciliation of cash, cash equivalents and restricted cash included in the consolidated balance sheets: As of October 31, 2023 2022 (in thousands) Cash and cash equivalents $ 1,438,913 $ 1,417,608 Restricted cash included in prepaid and other current assets 1,549 1,566 Restricted cash included in other long-term assets 725 690 Total cash, cash equivalents and restricted cash $ 1,441,187 $ 1,419,864 Non-marketable equity securities Our portfolio of non-marketable equity securities consists of strategic investments in privately held companies. There were no material impairments of non-marketable equity securities in fiscal 2023, fiscal 2022, or fiscal 2021. Derivatives We recognize derivative instruments as either assets or liabilities in the consolidated balance sheets at fair value and provide qualitative and quantitative disclosures about such derivatives. We operate internationally and are exposed to potentially adverse movements in foreign currency exchange rates. We enter into hedges in the form of foreign currency forward contracts to reduce our exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately one month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. The duration of forward contracts, the majority of which are short-term, ranges from approximately 1 month to 27 months at inception. We do not use foreign currency forward contracts for speculative or trading purposes. We enter into foreign exchange forward contracts with high credit quality financial institutions that are rated "A" or above and to date have not experienced nonperformance by counterparties. In addition, we mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty and anticipate continued performance by all counterparties to such agreements. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. The cash flow impact upon settlement of the derivative contracts is included in “net cash provided by operating activities” in the consolidated statements of cash flows. Cash Flow Hedging Activities Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 27 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to our foreign currency risk, which can be up to three years. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on the hedged transactions. The related gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (loss) (OCI) in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. We expect a majority of the hedge balance in OCI to be reclassified to the statements of income within the next 12 months. We did not record any gains or losses related to discontinuation of cash flow hedges for fiscal years 2023, 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 consolidated statements of income are summarized as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Gains (losses) recorded in other income (expense), net $ (5,899) $ (15,851) $ (855) The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: As of October 31, 2023 2022 (in thousands) Total gross notional amounts $ 1,666,758 $ 1,386,140 Net fair value $ (2,308) $ (50,080) 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 represents the 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 October 31, 2023 Other current assets $ 12,962 $ 491 Accrued liabilities $ 14,665 $ 1,096 Balance at October 31, 2022 Other current assets $ 2,315 $ 223 Accrued liabilities $ 52,171 $ 447 The following table represents the location of the amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax in the consolidated statements of income: Location of gains (losses) Amount of gains (losses) Location of gains (losses) Amount of (in thousands) Fiscal year ended October 31, 2023 Foreign exchange contracts Revenue $ 8,390 Revenue $ (9,942) Foreign exchange contracts Operating expenses 16,596 Operating expenses (15,334) Total $ 24,986 $ (25,276) Fiscal year ended October 31, 2022 Foreign exchange contracts Revenue $ (19,755) Revenue $ 10,975 Foreign exchange contracts Operating expenses (59,314) Operating expenses (15,869) Total $ (79,069) $ (4,894) Fiscal year ended October 31, 2021 Foreign exchange contracts Revenue $ 1,148 Revenue $ 4,181 Foreign exchange contracts Operating expenses 8,712 Operating expenses 10,378 Total $ 9,860 $ 14,559 Other Commitments — Credit and Term Loan On December 14, 2022, we entered into a Fifth Extension and Amendment Agreement (the Fifth Amendment), which amended and restated our previous credit agreement, dated as of January 22, 2021 (as amended and restated, the Credit Agreement). The Fifth Amendment increased the existing senior unsecured revolving credit facility (the Revolver) from $650.0 million to $850.0 million and extended the maturity date from January 22, 2024 to December 14, 2027, which could be further extended at our option. The Credit Agreement also provides an uncommitted incremental revolving loan facility of up to $150.0 million in the aggregate principal amount. The Credit Agreement contains a financial covenant requiring us to maintain a maximum consolidated leverage ratio, as well as other non-financial covenants. As of October 31, 2023, we were in compliance with the financial covenant. Borrowings bear interest at the adjusted term Secured Overnight Financing Rate (SOFR) plus an applicable margin between 0.785% and 0.975% based upon our consolidated leverage ratio. In addition, facility fees are payable on the Revolver at rates between 0.09% and 0.15% per year based on our leverage ratio on the daily amount of the revolving commitment. There was no outstanding balance under the Revolver as of October 31, 2023 and October 31, 2022. In July 2018, we entered into a 12-year 220.0 million Renminbi (approximately $33.0 million) credit agreement with a lender in China to support our facilities expansion. Borrowings bear interest at a floating rate based on the 5-year Loan Prime Rate plus 0.74%. As of October 31, 2023, we had a $18.1 million outstanding balance under the agreement. The carrying amount of the short-term and long-term debt approximates the estimated fair value. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820-10, Fair Value Measurements and Disclosures , defines fair value, establishes guidelines and enhances disclosure requirements for fair value measurements. The accounting guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance also establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement: Level 1 —Observable inputs that reflect quoted prices (unadjusted) for identical instruments in active markets; Level 2 —Observable inputs other than quoted prices for identical instruments in active markets, quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 —Unobservable inputs 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 assets and liabilities, which include cash equivalents, short-term investments, non-qualified deferred compensation plan assets, and foreign currency derivative contracts. Our cash equivalents and short-term investments are classified within Level 1 or Level 2 because they are valued using quoted market prices in an active market or alternative independent pricing sources and models utilizing market observable inputs. Our non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets and are therefore classified within Level 1. Our foreign currency derivative contracts are classified within Level 2 because these contracts are not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments. Our borrowings under our Credit and Term Loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to us for debt with similar terms and maturities. See Note 7 . Financial Assets and Liabilities of the Notes to Consolidated Financial Statements for more information on these borrowings. Assets/Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2023: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 10,129 $ 10,129 $ — $ — U.S. Treasury, agency & T-bills 2,994 2,994 — Short-term investments: U.S. Treasury, agency & T-bills 15,689 — 15,689 — Municipal bonds 499 — 499 — Corporate debt securities 102,375 — 102,375 — Asset-backed securities 33,076 — 33,076 — Prepaid and other current assets: Foreign currency derivative contracts 13,453 — 13,453 — Other long-term assets: Deferred compensation plan assets 300,731 300,731 — — Total assets $ 478,946 $ 310,860 $ 168,086 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 15,761 $ — $ 15,761 $ — Other long-term liabilities: Deferred compensation plan liabilities 300,731 300,731 — — Total liabilities $ 316,492 $ 300,731 $ 15,761 $ — Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2022: Description Total Fair Value Measurement Using Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 77,683 $ 77,683 $ — $ — Short-term investments: U.S. Treasury, agency & T-bills 25,603 — 25,603 — Municipal bonds 2,878 — 2,878 — Corporate debt securities 94,024 — 94,024 — Asset-backed securities 25,408 — 25,408 — Prepaid and other current assets: Foreign currency derivative contracts 2,538 — 2,538 — Other long-term assets: Deferred compensation plan assets 279,096 279,096 — — Total assets $ 507,230 $ 356,779 $ 150,451 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 52,618 $ — $ 52,618 $ — Other long-term liabilities: Deferred compensation plan liabilities 279,096 279,096 — — Total liabilities $ 331,714 $ 279,096 $ 52,618 $ — Assets/Liabilities Measured at Fair Value on a Non-Recurring Basis Non-Marketable Equity Securities |
Leases
Leases | 12 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We have operating lease arrangements for office space, data center, equipment and other corporate assets. These leases have various expiration dates through December 31, 2042, some of which include options to extend the leases for up to 10 years. Because we are not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term and associated potential option payments are excluded from lease payments. The components of our lease expense during the period presented are as follows: Year Ended October 31, 2023 2022 (in thousands) Operating lease expense (1) $ 96,083 $ 91,972 Variable lease expense (2) 20,789 11,649 Total lease expense $ 116,872 $ 103,621 (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 is as follows: Year Ended October 31, 2023 2022 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 88,983 $ 83,858 ROU assets obtained in exchange for operating lease liabilities $ 101,390 $ 168,095 Lease term and discount rate information related to our operating leases as of the end of the period presented are as follows: As of October 31, 2023 2022 Weighted-average remaining lease term (in years) 8.34 9.16 Weighted-average discount rate 2.50 % 2.19 % The following table represents the maturities of our future lease payments due under operating leases as of October 31, 2023: Lease Payments Fiscal year (in thousands) 2024 $ 102,297 2025 102,849 2026 92,687 2027 91,038 2028 77,010 2029 and thereafter 282,186 Total future minimum lease payments 748,067 Less: Imputed interest 78,342 Total lease liabilities $ 669,725 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 October 31, 2023, are as follows: Lease Receipts (in thousands) Fiscal year 2024 $ 24,698 2025 25,351 2026 26,230 2027 27,376 2028 27,557 2029 and thereafter 56,491 Total $ 187,703 |
Contingencies
Contingencies | 12 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings We are subject to routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The ultimate outcome of any litigation is often uncertain and unfavorable outcomes could have a negative impact on our results of operations and financial condition. We regularly review the status of each significant matter and assess its 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. Mentor Patent Litigation Prior to the legal settlement as further described below, we were engaged in complex patent litigation with Mentor Graphics Corporation (Mentor) involving several actions in different forums. We succeeded to the litigation when we acquired Emulation & Verification Engineering S.A. on October 4, 2012. Legal Settlement In March 2017, Siemens PLM Software (Siemens) acquired Mentor. On June 29, 2018, we, Siemens and Mentor settled all outstanding patent litigation between us and Mentor for a $65.0 million payment made from us to Mentor. As a result of the settlement, the litigation with Mentor was dismissed and the injunction entered in connection with that litigation was vacated. The settlement included mutual seven-year patent cross-licenses between us and Siemens, and between us and Mentor. We and Mentor also amended an existing interoperability agreement to collaborate on a wide range of EDA products for the benefit of our mutual customers. The amendment includes a one-time termination charge between $0.0 and $25.0 million, payable to Mentor under certain conditions. 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, refer to Note 15. Income Taxes of the Notes to Consolidated Financial Statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Oct. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, are as follows: As of October 31, 2023 2022 (in thousands) Cumulative currency translation adjustments $ (170,104) $ (156,192) Unrealized gains (losses) on derivative instruments, net of taxes (25,224) (75,486) Unrealized gains (losses) on available-for-sale securities, net of taxes (1,086) (2,599) Total $ (196,414) $ (234,277) The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income is as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Reclassifications: Gains (losses) on cash flow hedges, net of taxes Revenues $ (9,942) $ 10,975 $ 4,181 Operating expenses (15,334) (15,869) 10,378 Total $ (25,276) $ (4,894) $ 14,559 Amounts reclassified in fiscal 2023, 2022, and 2021 primarily consisted of gains (losses) from our cash flow hedging activities. See Note 7. Financial Assets and Liabilities of the Notes to Consolidated Financial Statements. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Oct. 31, 2023 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program In fiscal 2022, our Board of Directors approved a stock repurchase program (the Program) with authorization to purchase up to $1.5 billion of our common stock. As of October 31, 2023, $194.3 million remained available for future repurchases under the Program. In August 2023, we entered into an accelerated stock repurchase agreement (the August 2023 ASR) to repurchase an aggregate of $300.0 million of our common stock. Pursuant to the August 2023 ASR, we made a prepayment of $300.0 million to receive initial deliveries of shares valued at $255.0 million. The remaining balance of $45.0 million was settled in November 2023. Total shares purchased under the August 2023 ASR were approximately 0.6 million shares, at an average purchase price of $466.71 per share. Stock repurchase activities as well as the reissuance of treasury stock for employee stock-based compensation purposes are as follows: Year Ended October 31, 2023 (1) 2022 2021 (2) (in thousands, except per share price) Shares repurchased 2,992 3,609 2,780 Average purchase price per share $ 387.92 $ 314.51 $ 270.84 Aggregate purchase price $ 1,160,724 $ 1,135,000 $ 753,081 Reissuance of treasury stock 2,670 2,922 3,224 (1) Excludes 73,903 shares and $45.0 million equity forward contract that was settled in November 2023. (2) Excludes 107,701 shares and $35.0 million equity forward contract that was settled in November 2021. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employee Stock Purchase Plan Under our Employee Stock Purchase Plan (ESPP), participating employees are granted the right to purchase shares of common stock at a price per share that is 85% of the lesser of the fair market value of the shares at (1) the beginning of an offering period (generally, a rolling two year period) or (2) the purchase date (generally occurring at the end of each semi-annual purchase period), subject to the terms of ESPP, including a limit on the number of shares that may be purchased in a purchase period. On April 12, 2022, our stockholders approved amendments to the ESPP to increase the number of shares of common stock authorized for issuance under the plan by 2.0 million shares. During fiscal 2023, 2022 and 2021, we issued 0.6 million, 0.7 million, and 1.0 million shares, respectively, under the ESPP at average per share prices of $266.82, $195.48 and $134.26, respectively. As of October 31, 2023, 13.5 million shares of common stock were reserved for future issuance under the ESPP. Equity Compensation Plans 2006 Employee Equity Incentive Plan. On April 25, 2006, our stockholders approved the 2006 Employee Equity Incentive Plan (2006 Employee Plan), which provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights and other forms of equity compensation, including performance stock awards and performance cash awards, as determined by the plan administrator. The terms and conditions of each type of award are set forth in the 2006 Employee Plan and in the award agreements governing particular awards. Restricted stock units are granted under the 2006 Employee Plan as part of our incentive compensation program. In general, restricted stock units vest over three two On April 12, 2023, our stockholders amended the 2006 Employee Plan to, among other things, increase the number of shares of common stock reserved for future issuance under the plan by 3.3 million shares. As of October 31, 2023, an aggregate of 1.5 million stock options and 4.5 million restricted stock units were outstanding, and 13.3 million shares were available for future issuance under the 2006 Employee Plan. 2005 and 2017 Non-Employee Directors Equity Incentive Plans. On April 6, 2017, our stockholders approved the 2017 Non-Employee Directors Equity Incentive Plan (2017 Directors Plan). In connection with stockholder approval of the 2017 Directors Plan, the 2005 Non-Employee Directors Equity Incentive Plan (2005 Directors Plan) was terminated as of April 6, 2017, and no awards could be granted under the 2005 Directors Plan after that date. Under the 2005 Directors Plan, we granted options, which vest over a period of three The 2017 Directors Plan provides for equity awards to non-employee directors in the form of stock options, restricted stock units, restricted stock or a combination thereof. On April 6, 2017, our stockholders approved an aggregate of 0.45 million shares of common stock reserved under the 2017 Directors Plan. We grant restricted stock awards and options under the 2017 Directors Plan. Restricted stock awards generally vest on an annual basis and options vest over a period of three years. As of October 31, 2023, 4,806 shares of restricted stock awards were unvested and 12,792 stock options were outstanding, and a total of 368,407 shares of common stock were reserved for future issuance under the 2017 Directors Plan. Other Assumed Stock Plans through Acquisitions. We have assumed certain outstanding stock awards of acquired companies, including restricted stock units and options. If these assumed equity awards are canceled, forfeited or expire unexercised, the underlying shares do not become available for future grant. As of October 31, 2023, 31 thousand shares of our common stock remained subject to such outstanding assumed equity awards. Restricted Stock Units. The following table contains information concerning activities related to restricted stock units granted under the 2006 Employee Plan and assumed from acquisitions: Restricted Stock Units Outstanding (1) Weighted Weighted Aggregate (in thousands, except per share amounts and years) Balance at October 31, 2020 4,130 $ 134.80 1.47 Granted (2) 1,901 $ 258.58 Vested (4) (1,565) $ 122.01 $ 421,034 Forfeited (279) $ 167.76 Balance at October 31, 2021 4,187 $ 193.58 1.39 Granted (3) 2,402 $ 323.46 Vested (4) (1,589) $ 170.36 $ 529,766 Forfeited (362) $ 228.70 Balance at October 31, 2022 4,638 $ 265.76 1.32 Granted (3) 2,083 $ 394.34 Vested (4) (1,839) $ 237.19 $ 706,136 Forfeited (365) $ 283.29 Balance at October 31, 2023 4,517 $ 335.26 1.41 (1) No restricted stock units were assumed in connection with acquisitions in the last three fiscal years, but the balance at fiscal year-end includes certain restricted stock units that were previously assumed in connection with acquisitions. (2) The number of granted restricted stock units includes those granted to senior management with performance-based vesting criteria (in addition to service-based vesting criteria) (performance-based RSUs) reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied. (3) The number of granted restricted stock units includes those granted to senior management with market-based and performance-based vesting criteria (in addition to service-based vesting criteria) (market-based RSUs) reported at the maximum possible number of shares that may ultimately be issuable if all applicable market-based and performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied. (4) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. Stock Options. The following table summarizes stock option activity and includes stock options granted under all equity plans: Options Outstanding Shares Under Stock Option (1) Weighted- Weighted- Aggregate (in thousands, except per share amounts and years) Balance at October 31, 2020 3,993 $ 85.26 4.10 $ 513,845 Granted 353 $ 239.46 Exercised (1,203) $ 66.50 Canceled/forfeited/expired (36) $ 128.49 Balance at October 31, 2021 3,107 $ 109.51 3.81 $ 694,921 Granted 293 $ 342.86 Exercised (1,126) $ 86.24 Canceled/forfeited/expired (114) $ 164.46 Balance at October 31, 2022 2,160 $ 150.37 3.57 $ 328,120 Granted 294 $ 361.64 Exercised (849) $ 109.83 Canceled/forfeited/expired (90) $ 245.86 Balance at October 31, 2023 1,515 $ 208.49 3.70 $ 376,563 Vested and expected to vest as of October 31, 2023 1,515 $ 208.49 3.70 $ 376,563 Exercisable at October 31, 2023 972 $ 142.41 2.67 $ 305,738 (1) No stock options were assumed in connection with acquisitions in the last three fiscal years, but the balance at fiscal year-end includes certain stock options that were previously assumed in connection with acquisitions. The aggregate intrinsic value in the preceding table represents the pre-tax intrinsic value based on stock options with an exercise price less than our closing stock price of $457.00 as of October 31, 2023. The pre-tax intrinsic value of options exercised and their average exercise prices are: Year Ended October 31, 2023 2022 2021 (in thousands, except per share price) Intrinsic value $ 241,385 $ 273,524 $ 254,587 Average exercise price per share $ 109.83 $ 86.24 $ 66.50 Restricted Stock Units and Stock Options. The following table contains additional information concerning activities related to stock options and restricted stock units that were granted under the 2006 Employee Plan and assumed from acquisitions: Available for Grant (1)(2) (in thousands) Balance at October 31, 2020 12,129 Options granted (2) (353) Options canceled/forfeited/expired (2) 36 Restricted stock units granted (1)(3) (3,232) Restricted stock units forfeited (1) 471 Additional shares reserved 4,700 Balance at October 31, 2021 13,751 Options granted (2) (286) Options canceled/forfeited/expired (2) 114 Restricted stock units granted (1)(4) (4,083) Restricted stock units forfeited (1) 615 Additional shares reserved 3,000 Balance at October 31, 2022 13,111 Options granted (2) (294) Options canceled/forfeited/expired (2) 89 Restricted stock units granted (1)(4) (3,540) Restricted stock units forfeited (1) 620 Additional shares reserved 3,300 Balance at October 31, 2023 13,286 (1) Restricted stock units includes awards granted under the 2006 Employee Plan and assumed through acquisitions. The number of RSUs reflects the application of the award multiplier of 1.70 as described above. (2) Options granted by us are not subject to the award multiplier ratio described above. (3) The number of granted restricted stock units includes performance-based RSUs reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied. (4) The number of granted restricted stock units includes market-based RSUs reported at the maximum possible number of shares that may ultimately be issuable if all applicable market-based and performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied. Restricted Stock Awards . The following table summarizes restricted stock award activities under the 2005 Directors Plan and 2017 Directors Plan: Restricted Weighted-Average (in thousands, except per share amounts) Unvested at October 31, 2020 9 $ 140.97 Granted 5 $ 261.01 Vested (9) $ 140.97 Forfeited — $ — Unvested at October 31, 2021 5 $ 261.01 Granted 5 $ 310.02 Vested (5) $ 261.01 Forfeited — $ — Unvested at October 31, 2022 5 $ 310.02 Granted 5 $ 387.79 Vested (5) $ 310.02 Forfeited — $ — Unvested at October 31, 2023 5 $ 387.79 Valuation and Expense of Stock-Based Compensation. We estimate the fair value of stock options and employee stock purchase rights under the ESPP on the grant date. The value of awards expected to vest is recognized as expense over the applicable service periods. We use the Black-Scholes option-pricing model to determine the fair value of stock options and employee stock purchase plan rights . The Black-Scholes option-pricing model incorporates various assumptions including expected volatility, expected term and interest rates. The expected volatility for both stock options and employee stock purchase rights is estimated by a combination of implied volatility for publicly traded options of our common stock with a term of six months or longer and the historical stock price volatility over the estimated expected term of such awards, which is based on historical experience. Restricted stock units are valued based on the closing price of our common stock on the grant date. We use the straight-line attribution method to recognize stock-based compensation costs over the service period of the award except for performance-based RSUs and market-based RSUs. We estimate the probability of achievement of applicable performance goals for performance-based RSUs in each reporting period and recognize related stock-based compensation expense using the graded-vesting method. The amount of stock-based compensation expense recognized in any period can vary based on the attainment or expected attainment of the various performance goals. If such performance goals are not ultimately met, no compensation expense is recognized and any previously recognized compensation expense is reversed. We estimated the fair value of market-based RSUs on the grant date using a Monte Carlo simulation model. 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 maximum potential awards that may be earned are 187.5% of the target number of the initial awards. For market-based RSUs granted in February, May, August and December 2022, the performance period during which the achievement goals will be measured is fiscal 2022 and fiscal 2023. 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. For market-based RSUs granted in February and August 2023, the performance period during which the achievement goals will be measured is fiscal 2023, fiscal 2024 and fiscal 2025. The awards will vest in December 2025 if the TSR target, revenue growth metrics, and service conditions are achieved. The assumptions presented in the following table are used to estimate the fair value of stock options and employee stock purchase rights granted under our stock plans: Year Ended October 31, 2023 2022 2021 Stock Options: Expected life (in years) 4.1 4.1 4.1 Risk-free interest rate 3.80%- 4.80% 1.07% - 4.42% 0.35% - 1.00% Volatility 32.74% -36.16% 32.28% - 37.04% 29.19%- 32.28% Weighted average estimated fair value $120.33 $98.07 $61.58 ESPP: Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 4.85% - 5.38% 0.67% - 3.44% 0.00% - 0.19% Volatility 28.03% - 35.27% 34.51% - 38.69% 28.02% - 39.68% Weighted average estimated fair value $120.82 $102.63 $89.82 The grant date fair value of the market-based RSUs and the assumptions used in the Monte Carlo simulation model to determine the grant date fair value during the periods are as follows: Year Ended October 31, 2023 2022 2021 (1) Expected life (in years) 0.90 - 2.70 1.16 - 1.69 — Risk-free interest rate 4.36% - 4.80% 1.33% - 3.46% — Volatility 34.79% - 42.86% 33.01% - 37.80% — Grant date fair value $357.29 - $465.79 $280.52 - $412.2 — (1) No market-based RSUs were granted in fiscal 2021. The compensation cost recognized in the consolidated statements of income for our stock compensation arrangements is as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Cost of products $ 65,221 $ 55,134 $ 38,345 Cost of maintenance and service 29,572 24,146 13,817 Research and development expense 294,154 241,978 171,013 Sales and marketing expense 106,574 81,617 61,940 General and administrative expense 67,771 56,154 60,157 Stock-based compensation expense before taxes 563,292 459,029 345,272 Income tax benefit (90,915) (74,271) (53,483) Stock-based compensation expense after taxes $ 472,377 $ 384,758 $ 291,789 As of October 31, 2023, we had $1.2 billion of total unrecognized stock-based compensation expense relating to options, RSUs and restricted stock awards, which is expected to be recognized over a weighted average period of 1.7 years. As of October 31, 2023, we had $42.3 million of total unrecognized stock-based compensation expense relating to the ESPP, which is expected to be recognized over a period of 2.0 years. Deferred Compensation Plan. We maintain the Synopsys Deferred Compensation Plan (Deferred Plan), which permits eligible employees to defer up to 50% of their annual cash base compensation and up to 100% of their eligible cash variable compensation. Amounts may be withdrawn from the Deferred Plan pursuant to elections made by the employees in accordance with the terms of the plan. Since the inception of the Deferred Plan, we have not made any matching or discretionary contributions to the Deferred Plan. There are no Deferred Plan provisions that provide for any guarantees or minimum return on investments. Undistributed amounts under the Deferred Plan are subject to the claims of our creditors. Deferred plan assets and liabilities are as follows: As of October 31, 2023 2022 (in thousands) Plan assets recorded in other long-term assets $ 300,731 $ 279,096 Plan liabilities recorded in other long-term liabilities (1) $ 300,731 $ 279,096 (1) Undistributed deferred compensation balances due to participants. Income or loss from the change in fair value of the Deferred Plan assets is recorded in other income (expense), net. The increase or decrease in the fair value of the undistributed Deferred Plan obligation is recorded in total cost of revenue and operating expense. The following table summarizes the impact of the Deferred Plan: Year Ended October 31, 2023 2022 2021 (in thousands) Increase (reduction) to cost of revenue and operating expense $ 20,488 $ (68,778) $ 71,603 Other income (expense), net 20,488 (68,778) 71,603 Net increase (decrease) to net income $ — $ — $ — Other Retirement Plans. We sponsor various defined contribution retirement plans for our eligible U.S. and non-U.S. employees. Total contributions to these plans were $59.2 million, $51.2 million, and $49.4 million in fiscal 2023, 2022, and 2021, respectively. For employees in the United States and Canada, we match pre-tax employee contributions up to a maximum of U.S. $3,000 and Canadian $4,000, respectively, per participant per year. Certain of our international subsidiaries sponsor defined benefit retirement plans. The unfunded projected benefit obligation for these defined benefit retirement plans as of October 31, 2023 and 2022 was immaterial and recorded in other long-term liabilities in our consolidated balance sheets. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The table below reconciles the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share: Year Ended October 31, 2023 2022 2021 (in thousands, except per share amounts) Numerator: Net income attributed to Synopsys $ 1,229,888 $ 984,594 $ 757,516 Denominator: Weighted average common shares for basic net income per share 152,146 153,002 152,698 Dilutive effect of common share equivalents from equity-based compensation 3,049 3,483 4,642 Weighted average common shares for diluted net income per share 155,195 156,485 157,340 Net income per share attributed to Synopsys: Basic $ 8.08 $ 6.44 $ 4.96 Diluted $ 7.92 $ 6.29 $ 4.81 Anti-dilutive employee stock-based awards excluded 475 281 408 |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of our total income (loss) before provision for income taxes are as follows: Year Ended October 31, 2023 2022 2021 (in thousands) United States $ 1,142,132 $ 1,036,279 $ 640,531 Foreign 159,650 79,235 164,983 Total income (loss) before provision for income taxes $ 1,301,782 $ 1,115,514 $ 805,514 The components of the provision (benefit) for income taxes are as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Current: Federal $ 244,523 $ 105,493 $ 85,950 State 22,193 23,201 11,898 Foreign 27,986 45,297 79,890 294,702 173,991 177,738 Deferred: Federal (192,762) (42,086) (108,530) State (1,842) 1,519 1,796 Foreign (16,441) 3,654 (21,849) (211,045) (36,913) (128,583) Provision (benefit) for income taxes $ 83,657 $ 137,078 $ 49,155 The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Statutory federal tax $ 273,374 $ 234,257 $ 168,745 State tax (benefit), net of federal effect 617 (2,514) (2,419) Federal tax credits (65,878) (61,582) (45,503) Tax (benefit) on foreign earnings (12,454) 25,930 7,988 Foreign-derived intangible income deduction (82,436) (38,924) (31,214) Tax settlements (23,752) — (7,134) Stock-based compensation (43,153) (52,625) (62,620) Changes in valuation allowance 29,631 19,794 15,232 Other 7,708 12,742 6,080 Provision (benefit) for income taxes $ 83,657 $ 137,078 $ 49,155 On December 22, 2017, the Tax Cuts and Jobs Act (Tax Act) was enacted, which significantly changed prior U.S. tax law and includes numerous provisions that affect our business. Effective in our fiscal 2023 year, the Tax Act requires that research and development expenditures are capitalized and amortized instead of being deducted when incurred. Domestic research is capitalized over five years and foreign research is capitalized over fifteen years. For fiscal 2023, this resulted in a significant increase to our current cash tax liabilities; however, the tax payment deadline was extended until November 16, 2023, due to IRS tax relief for the California winter storms. Capitalization of research and development expenditures also results in a corresponding deferred tax benefit and decreased our effective tax rate due to increasing the foreign-derived intangible income deduction. We have provided for foreign withholding taxes on undistributed earnings of certain of our foreign subsidiaries to the extent such earnings are no longer considered to be indefinitely reinvested in the operations of those subsidiaries. Where foreign subsidiaries are considered indefinitely reinvested, and if the tax effect of undistributed earnings and other outside basis differences were recognized, the nature of taxes expected would be primarily be withholding taxes, taxes in non-conforming states, and taxes on intermediate holding companies outside of the U.S., net of foreign tax credits where available. As of October 31, 2023, the taxes due, after allowable foreign tax credits, are not expected to be material. The significant components of deferred tax assets and liabilities are as follows: As of October 31, 2023 2022 (in thousands) Net deferred tax assets: Deferred tax assets: Deferred revenue 37,641 41,941 Deferred compensation 69,824 67,782 Intangible and depreciable assets 94,564 119,791 Capitalized research and development costs 592,536 231,733 Stock-based compensation 65,039 60,537 Tax loss carryovers 62,779 59,754 Foreign tax credit carryovers 41,972 27,153 Research and other tax credit carryovers 182,999 316,650 Operating Lease Liabilities 118,679 119,575 Accruals and reserves 27,636 — Other — 16,887 Gross deferred tax assets 1,293,669 1,061,803 Valuation allowance (229,259) (198,213) Total deferred tax assets 1,064,410 863,590 Deferred tax liabilities: Intangible assets 116,465 102,796 Operating lease Right-of-Use-Assets 94,068 96,598 Accruals and reserves — 5,998 Undistributed earnings of foreign subsidiaries 8,900 1,000 Other 18,006 — Total deferred tax liabilities 237,439 206,392 Net deferred tax assets $ 826,971 $ 657,198 It is more likely than not that the results of future operations will be able to generate sufficient taxable income to realize the net deferred tax assets. The valuation allowance provided against our deferred tax assets as of October 31, 2023 is mainly attributable to foreign tax credits available to non-U.S. subsidiaries and the California research credits. The valuation allowance increased by a net of $31.0 million in fiscal 2023 primarily related to the net increase of valuation allowance on California research credits. We have the following tax loss and credit carryforwards available to offset future income tax liabilities: Carryforward Amount Expiration (in thousands) Federal net operating loss carryforward $ 156,991 2024-2042 Federal research credit carryforward 14,705 2024-2038 Federal foreign tax credit carryforward 27,522 2027-2033 International foreign tax credit carryforward 10,929 Indefinite International net operating loss carryforward 48,823 2027-Indefinite California research credit carryforward 243,960 Indefinite Other state research credit carryforward 25,176 2025-2043 State net operating loss carryforward 236,391 2024-2045 The federal and state net operating loss carryforward is from acquired companies and the annual use of such loss is subject to significant limitations under Internal Revenue Code Section 382 and certain provisions of the Tax Act. Foreign tax credits may only be used to offset tax attributable to foreign source income. The gross unrecognized tax benefits decreased by approximately $6.8 million during fiscal 2023 resulting in gross unrecognized tax benefits of $74.4 million as of October 31, 2023. A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows: As of October 31, 2023 2022 (in thousands) Beginning balance $ 81,183 $ 82,360 Increases in unrecognized tax benefits related to prior year tax positions 211 435 Decreases in unrecognized tax benefits related to prior year tax positions (25,678) (9,791) Increases in unrecognized tax benefits related to current year tax positions 8,223 6,794 Decreases in unrecognized tax benefits related to settlements with taxing authorities — (1,104) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (249) (2,601) Increases in unrecognized tax benefits acquired 165 14,121 Changes in unrecognized tax benefits due to foreign currency translation 10,504 (9,031) Ending balance $ 74,359 $ 81,183 As of October 31, 2023 and 2022, approximately $74.4 million and $81.2 million, respectively, of the unrecognized tax benefits would affect our effective tax rate if recognized upon resolution of the uncertain tax positions. Interest and penalties related to estimated obligations for tax positions taken in our tax returns are recognized as a component of income tax expense (benefit) in the consolidated statements of income and totaled approximately $(10.6) million , $0.8 million and $0.4 million for fiscal years 2023, 2022 and 2021, respectively. As of October 31, 2023 and 2022, the combined amount of accrued interest and penalties related to tax positions taken on our tax returns were approximately $2.1 million and $12.7 million, respectively. 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 $0.0 and $10.0 million. We and/or our subsidiaries remain subject to tax examination in the following jurisdictions: Jurisdiction Year(s) Subject to Examination United States Fiscal years after 2020 California Fiscal years after 2018 Hungary Fiscal years after 2018 Ireland Fiscal years after 2018 Japan Fiscal years after 2017 Korea and Taiwan Fiscal years after 2021 China Fiscal years after 2013 India Fiscal years after 2019 In addition, we have made acquisitions with operations in several of our significant jurisdictions which may have years subject to examination different from the years indicated in the above table. IRS Examinations In fiscal 2021, the Examination Division of the IRS completed its pre-filing review for fiscal 2020 and as a result we recognized approximately $7.1 million in unrecognized tax benefits, primarily due to the allowance of research tax credits. Non-U.S. Examinations Hungarian Tax Authority In 2017, the Hungarian Tax Authority (the HTA) assessed withholding taxes of approximately $25.0 million and interest and penalties of $11.0 million, against our Hungary subsidiary (Synopsys Hungary). Synopsys Hungary contested the assessment with the Hungarian Administrative Court (Administrative Court). In 2019, as required under Hungarian law, Synopsys Hungary paid the assessment and recorded a tax expense due to an unrecognized tax benefit of $17.4 million, which is net of estimated U.S. foreign tax credits. During 2021 and 2022 a series of appeals, hearings and re-hearings occurred at the Administrative Court and Hungarian Supreme Court. Hearings with the Administrative Court were held on June 30, 2022, September 22, 2022 and April 25, 2023. The Administrative Court issued its written decision in favor of Synopsys Hungary on May 17, 2023, and subsequently refunded Synopsys Hungary the tax, penalty and interest paid in fiscal 2018, as well as additional interest all totaling $39.1 million (including the effect of currency movement). The refunded tax, penalty and interest was recognized as an income tax benefit. The HTA had until July 14, 2023, to file an appeal with the Hungarian Supreme Court and the HTA did not appeal. This concludes the litigation. During the third quarter of fiscal 2023, Synopsys released its unrecognized tax benefit and offsetting U.S. foreign tax credits, resulting in a net benefit of $23.8 million. We are also under examination by the tax authorities in certain other jurisdictions. No material assessments have been proposed in these examinations. Legislative Developments On August 16, 2022, the Inflation Reduction Act of 2022 (the IR Act) was enacted in the United States. The IR Act includes a 15% minimum tax based primarily on global consolidated U.S. GAAP profits with a $1 billion minimum threshold. The tax takes effect in fiscal 2024, with the $1 billion threshold measured as an average over three years commencing in the current fiscal year. Computation of the tax includes adjustments which, among others, provide for an offset of income taxes paid or accrued in non-U.S. jurisdictions. The details of the computation will be subject to regulations to be issued by the U.S. Department of the Treasury. Synopsys will monitor regulatory developments and will continue to evaluate the impact, if any, of the minimum tax. The IR Act imposes a 1% excise tax on the fair market value of stock repurchases made by covered corporations after December 31, 2022. The total taxable value of shares repurchased is reduced by the fair market value of any newly issued shares during the taxable year. As of October 31, 2023, this does not have any impact on our consolidated financial statements. On August 9, 2022, the CHIPS and Science Act of 2022 (the CHIPS Act) was enacted in the United States. The CHIPS Act provides financial incentives to the semiconductor industry which are primarily directed at manufacturing activities within the United States. We are evaluating potential opportunities related to the CHIPS Act. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Oct. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net The following table presents the components of other income (expense), net: Year Ended October 31, 2023 2022 2021 (in thousands) Interest income $ 36,674 $ 8,545 $ 2,442 Interest expense (1,178) (1,698) (3,365) Gains (losses) on assets related to deferred compensation plan 20,488 (68,778) 71,603 Foreign currency exchange gains (losses) (1,529) 4,694 5,292 Other, net (21,932) 10,713 (5,248) Total $ 32,523 $ (46,524) $ 70,724 |
Segment Disclosure
Segment Disclosure | 12 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Disclosure | Segment Disclosure Segment reporting is based upon the “management approach,” i.e., how management organizes our operating segments for which separate financial information is (1) available and (2) evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance. Our CODM is our CEO. As described in Note 2. Summary of Significant Accounting Policies and Basis of Presentation of the Notes to Consolidated Financial Statements, effective in the first quarter of fiscal 2023, we realigned our organizational structure to evaluate the results of our Design IP business separately. Our CODM now regularly reviews disaggregated segment information, assesses performance against our key growth strategies and allocates resources based on this new organizational structure. As a result, effective in the first quarter of fiscal 2023, we changed our reportable segments from two reportable segments to the following three reportable segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, system integration products and services, digital, custom and FPGA IC design software, verification software and hardware products, manufacturing software products and other; (2) Design IP, which includes our Design IP products; and (3) Software Integrity, which includes solutions that test software code for security vulnerabilities and quality defects, as well as professional and managed services. As such, prior period reportable segment results and related disclosures have been reclassified to reflect our current reportable segments. The financial information provided to and used by the CODM to assist in making operational decisions, allocating resources, and assessing performance includes consolidated financial information as well as revenue, adjusted operating income, and adjusted operating margin information for the Design Automation, Design IP and Software Integrity segments, accompanied by disaggregated information relating to revenue by geographic region. Information by reportable segment is as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Total Segments: Revenue $ 5,842,619 $ 5,081,542 $ 4,204,193 Adjusted operating income 2,048,045 1,675,102 1,281,389 Adjusted operating margin 35 % 33 % 30 % Design Automation: Revenue $ 3,775,287 $ 3,300,173 $ 2,754,737 Adjusted operating income 1,439,666 1,206,561 924,605 Adjusted operating margin 38 % 37 % 34 % Design IP: Revenue $ 1,542,726 $ 1,315,541 $ 1,055,672 Adjusted operating income 532,055 421,547 318,473 Adjusted operating margin 34 % 32 % 30 % Software Integrity: Revenue $ 524,606 $ 465,828 $ 393,784 Adjusted operating income 76,324 46,994 38,311 Adjusted operating margin 15 % 10 % 10 % Certain operating expenses are not allocated to the segments and are managed at a consolidated level. The unallocated expenses managed at a consolidated level, including amortization of intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan, restructuring charges, and certain other operating expenses, are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income: Year Ended October 31, 2023 2022 2021 (in thousands) Total segment adjusted operating income $ 2,048,045 $ 1,675,102 $ 1,281,389 Reconciling items: Amortization of intangible assets (102,889) (96,690) (82,380) Stock-based compensation expense (563,292) (459,029) (345,272) Deferred compensation plan (20,488) 68,778 (71,603) Restructuring charges (77,002) (12,057) (33,405) Other (15,115) (14,066) (13,939) Total operating income $ 1,269,259 $ 1,162,038 $ 734,790 The CODM does not use total assets by segment to evaluate segment performance or allocate resources. As a result, total assets by segment are not disclosed. In allocating revenue to particular geographic areas, the CODM considers where individual “seats” or licenses to our products are located. Revenue is defined as revenue from external customers. Revenue and property and equipment, net, related to operations in the United States and other geographic areas are: Year Ended October 31, 2023 2022 2021 (in thousands) Revenue: United States $ 2,786,064 $ 2,349,766 $ 1,951,964 Europe 595,634 493,430 440,825 China 886,256 795,405 562,711 Korea 634,802 531,542 427,471 Other 939,863 911,399 821,222 Consolidated $ 5,842,619 $ 5,081,542 $ 4,204,193 As of October 31, 2023 2022 (in thousands) Property and Equipment, net: United States $ 338,260 $ 297,780 Other 219,001 185,520 Total $ 557,261 $ 483,300 Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology. One customer, including its subsidiaries, accounted for 12.4%, 11.7%, and 10.6% of our consolidated revenue in fiscal 2023, 2022, and 2021, respectively. One customer accounted for 10.9% of our accounts receivable as of October 31, 2023. No customer accounted for over 10% of our accounts receivable as of October 31, 2022. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Oct. 31, 2023 | |
Payables and Accruals [Abstract] | |
Restructuring Charges | Restructuring Charges In the first quarter of fiscal 2023, we initiated a restructuring plan for involuntary employee terminations as part of a business reorganization (the 2023 Plan). The 2023 Plan was substantially completed in the third quarter of fiscal 2023 and total charges under the 2023 Plan were $77.0 million consisting primarily of severance costs and facility exit costs. During fiscal 2023, we made payments of $68.3 million under the 2023 Plan. As of October 31, 2023, the payroll and related benefits liabilities of $4.2 million were recorded in accounts payable and accrued liabilities, and the remaining outstanding restructuring related liabilities of $4.5 million were recorded in other long-term liabilities in the consolidated balance sheets. During fiscal 2022, we recorded restructuring charges of $12.1 million and made payments of $26.3 million under the 2021 restructuring plan (the 2021 Plan) initiated in the third quarter of fiscal 2021.There was no outstanding balance under the 2021 Plan as of October 31, 2022. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Oct. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In November 2023, we completed the sale of a strategic equity investment in a privately-held company, and expect to recognize a gain ranging from $50.0 million to $60.0 million in the first quarter of fiscal 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 1,229,888 | $ 984,594 | $ 757,516 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Oct. 31, 2023 shares | Oct. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | None of our directors or officers informed us of the adoption, modification or termination of a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" (as those terms are defined in Item 408(c) of Regulation S-K) during the quarterly period covered by this report, except as described in the table below: Name and Title Action Date Adopted Character of Trading Arrangement (1) Aggregate Number of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement Expiration Date (2) Sassine Ghazi Adoption 9/21/2023 Rule 10b5-1 Trading Arrangement Up to 30,881 shares to be sold 9/20/2024 President, Chief Operating Officer and Director Mercedes Johnson Adoption 8/18/2023 Rule 10b5-1 Trading Arrangement Up to 7,500 shares to be sold 1/19/2024 Director Rick Mahoney Adoption 9/13/2023 Rule 10b5-1 Trading Arrangement (3) 9/13/2024 Chief Revenue Officer John F. Runkel, Jr. Adoption 9/29/2023 Rule 10b5-1 Trading Arrangement Up to 5,902 shares to be sold 7/19/2024 General Counsel and Corporate Secretary (1) Except as indicated by footnote, each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” is intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended (the Rule). (2) Except as indicated by footnote, each trading arrangement permitted or permits transactions through and including the earlier to occur of (a) the completion of all purchases or sales or (b) the date listed in the table. Each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” only permitted or only permits transactions upon expiration of the applicable mandatory cooling-off period under the Rule. (3) The aggregate number of common stock to be sold pursuant to Mr. Mahoney's Rule 10b5-1 Trading Arrangement includes: a. 5,956 shares of common stock held by Mr. Mahoney; b. 75% of net after-tax shares of common stock received upon the payout of 7,833 performance-based restricted stock units (PRSUs), which were granted in fiscal 2022. The number of shares that will be earned will depend on our performance. See the Compensation Discussion and Analysis in our most recent proxy statement, which was filed on February 17, 2023 for more information. In addition, the actual number of shares that will be released to Mr. Mahoney in connection with the 2022 PRSUs and sold under the Rule 10b5-1 Trading Arrangement will be net of the number of shares withheld to satisfy tax withholding obligations arising from the vesting of such shares and is not yet determinable; and c. 75% of the net after-tax shares received upon the vesting of 7,832 restricted stock units, which represents1/4th of a grant of restricted stock units of 31,329 shares. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Sassine Ghazi [Member] | ||
Trading Arrangements, by Individual | ||
Name | Sassine Ghazi | |
Title | President, Chief Operating Officer and Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 9/21/2023 | |
Arrangement Duration | 365 days | |
Aggregate Available | 30,881 | 30,881 |
Mercedes Johnson [Member] | ||
Trading Arrangements, by Individual | ||
Name | Mercedes Johnson | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 8/18/2023 | |
Arrangement Duration | 154 days | |
Aggregate Available | 7,500 | 7,500 |
Rick Mahoney [Member] | ||
Trading Arrangements, by Individual | ||
Name | Rick Mahoney | |
Title | Chief Revenue Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 9/13/2023 | |
Arrangement Duration | 366 days | |
John F. Runkel, Jr. [Member] | ||
Trading Arrangements, by Individual | ||
Name | John F. Runkel, Jr. | |
Title | General Counsel and Corporate Secretary | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 9/29/2023 | |
Arrangement Duration | 294 days | |
Aggregate Available | 5,902 | 5,902 |
Rick Mahoney Trading Arrangement, Common Stock [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 5,956 | 5,956 |
Rick Mahoney Trading Arrangement, Performance-Based Restricted Stock Units Payout, 75% Net After-Tax Shares Of Common Stock [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 7,833 | 7,833 |
Rick Mahoney Trading Arrangement, One Fourth Grant Restricted Stock Units Vesting, 75% Net After-Tax Shares Of Common Stock [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 7,832 | 7,832 |
Rick Mahoney Trading Arrangement, Grant of Restricted Stock Units [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 31,329 | 31,329 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year End | Our fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, we have a 53-week year. When a 53-week year occurs, we include the additional week in the first quarter to realign fiscal quarters with calendar quarters. Fiscal 2023, 2022 and 2021 were 52-week years ending on October 28, 2023, October 29, 2022, and October 30, 2021, respectively. For presentation purposes, the consolidated financial statements and accompanying notes refer to the closest calendar month end. Fiscal 2024 will be a 53-week year. |
Principles of Consolidation | The consolidated financial statements include our accounts and the accounts of our wholly and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates. To prepare financial statements in conformity with U.S. generally accepted accounting principles, management must make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates and could have a material impact on our operating results and financial position. |
Comparability | Comparability. Effective beginning of fiscal 2022, we adopted an Accounting Standards Update (ASU) to simplify the accounting for income taxes in Accounting Standards Codification (ASC) 740, Income Taxes, on a prospective basis. Effective beginning the second quarter of fiscal 2022, we early adopted an ASU, on a prospective basis, to apply revenue guidance to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination on the acquisition date, instead of measuring them at fair value. The adoption of these updates did not have a material impact on our consolidated financial statements. Effective in the first quarter of fiscal 2023, we changed our reportable segments from two reportable segments to three reportable segments, as described in Segment Reporting policy below. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation. The reclassifications, including the segment change, did not have a material impact on the prior year's consolidated balance sheets, statements of income, statements of comprehensive income and statements of cash flows. |
Cash Equivalents and Short-term Investments | Cash Equivalents and Short-term Investments . We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Our investments in debt securities with remaining maturities greater than three months at the date of purchase are designated as available-for-sale securities as we may convert these investments into cash at any time to fund general operations, and included in short-term investments on the consolidated balance sheet. Our debt securities generally have an effective maturity term of less than three years and are carried at fair value, with unrealized gains and losses included in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). For available-for-sale debt securities in an unrealized loss position, we evaluate whether a current expected credit loss exists based on available information relevant to the credit rating of the security, current economic conditions and reasonable and supportable forecasts. The allowance for credit loss is recorded in other income (expense), net, on the consolidated statements of income, not to exceed the amount of the unrealized loss. Any excess unrealized loss other than the credit loss is recognized in accumulated other comprehensive income or loss in the stockholders' equity section of the consolidated balance sheets. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net. See Note 7. Financial Assets and Liabilities of the Notes to Consolidated Financial Statements . |
Investments in Equity Securities | Investments in Equity Securities. |
Accounts Receivable, Net | Accounts Receivable, Net. The balances consist of billed accounts receivable and current portion of unbilled accounts receivable. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. |
Allowance for Credit Losses | Allowance for Credit Losses. |
Inventories | Inventories. Inventories are computed at standard costs which approximate actual costs, on a first-in, first-out basis and valued at the lower of cost or net realizable value. Inventories primarily include components and finished goods for complex emulation and prototyping hardware systems. The valuation process includes a review of the forecasts based upon future demand and market conditions. Inventory provisions are recorded when the costs are determined to be in excess of anticipated demand or considered obsolete. Inventory provisions are impacted by market and economic conditions, technology changes, new product introductions and changes in strategic direction, and require estimates that may include uncertain elements. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments. Our cash equivalents, short-term investments and foreign currency contracts are carried at fair value. The fair value of our accounts receivable and accounts payable approximates the carrying amount due to their short duration. Non-marketable equity securities are accounted for using either the measurement alternative or equity method of accounting. We perform periodic impairment analysis on these non-marketable equity securities. The carrying amount of the short-term and long-term debt approximates the estimated fair value. See Note 8. Fair Value Measurements of the Notes to Consolidated Financial Statements . |
Foreign Currency Contracts | Foreign Currency Contracts. We operate internationally and are exposed to potentially adverse movements in 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. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. See Note 7. Financial Assets and Liabilities of the Notes to Consolidated Financial Statements . |
Concentration of Credit Risk | Concentration of Credit Risk. Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash equivalents, short-term investments, foreign currency contracts, and trade accounts receivable. We maintain cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U.S. and in various overseas locations. Our short-term investments include a variety of financial instruments, such as corporate debt and municipal securities, U.S. Treasury and Government agency securities. By policy, we limit the amount of credit exposure with any one issue, issuer and type of instrument. We sell our products worldwide primarily to customers in the global electronics market. We perform on-going credit evaluations of our customers’ financial condition and do not require collateral. We establish reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented. |
Income Taxes | Income Taxes. We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We account for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. |
Property and Equipment | Property and Equipment. |
Leases | Leases . We determine if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. A contract is or contains a lease when we have the right to control the use of an identified asset for a period of time. The commencement date of the lease is the date that the lessor makes an underlying asset available for use by the lessee. On the commencement date, leases are evaluated for classification and assets and liabilities are recognized based on the present value of lease payments over the lease term. The lease term used to calculate the lease liability includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The right of use (ROU) asset is initially measured as the amount of lease liability, adjusted for any initial lease costs, prepaid lease payments and any lease incentives. Variable lease payments, consisting primarily of reimbursement of costs incurred by lessors for common area maintenance, real estate taxes and insurance, are not included in the lease liability and are recognized as they are incurred. As most of our leases do not provide an implicit rate, we use the incremental borrowing rate at lease commencement to measure ROU assets and lease liabilities. We use a benchmark senior unsecured yield curve for debt instruments over the similar term, and consider specific credit quality, market conditions, tenor of lease arrangements, and quality of collateral to determine the incremental borrowing rate. Operating lease expense is generally recognized on a straight-line basis over the lease term. We have elected the practical expedient to account for the lease and non-lease components as a single lease component for the majority of our asset classes. For leases with an initial term of one year or less, we have elected not to record the ROU asset or liability. |
Business Combination | Business Combinations. We allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their acquisition-date fair values with the exception of contract assets and contract liabilities (deferred revenue) which are recognized and measured on the acquisition date in accordance with our “Revenue Recognition” policy. The excess of the fair value of purchase consideration over the fair value of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. We include the results of operations of the businesses that are acquired from the acquisition date. |
Goodwill | Goodwill. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by us. The carrying amount of goodwill at each reporting unit is tested for impairment annually on the first day of the fourth fiscal quarter, or more frequently if facts and circumstances warrant a review. We perform either a qualitative or quantitative assessment for goodwill impairment test. When a quantitative goodwill impairment assessment is performed, we use an income approach based on discounted cash flow analysis, a market approach based on market multiples, or a combination of both. If the fair value of a reporting unit is less than its carrying value, a goodwill impairment loss is recorded for the difference. |
Intangible Assets | Intangible Assets. Intangible assets consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, and capitalized software. These intangible assets are acquired through business combinations, direct purchases, or internally developed capitalized software. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from one |
Redeemable Non-controlling Interest | Redeemable Non-controlling Interest. Non-controlling interest that is not solely redeemable within our control is reported as temporary equity in our 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 remeasure the redemption value of the non-controlling interest on a quarterly basis and changes in the estimated redemption value are recognized through retained earnings and may also impact the net income or loss attributable to common stockholders of Synopsys if the redemption value falls below a stated threshold. See Note 4. Business Combinations of the Notes to Consolidated Financial Statements |
Revenue Recognition | Revenue Recognition. We recognize revenue for the transfer of services or products to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those services or products. The principle is achieved through the following five-step approach: • Identification of the contract, or contracts, with the customer • Identification of the performance obligation in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Nature of Products and Services We generate revenue from the licensing of our EDA software, IP Blocks, and Software Integrity products, as well as sale of hardware products, and maintenance and services. The various types are set forth below. Electronic Design Automation Software license revenue consists of fees associated with the licensing of our software primarily through Technology Subscription License (TSL) contracts. TSLs are time-based licenses for a finite term and generally provide the customer with limited rights to receive, or to exchange certain quantities of licensed software for, unspecified future technology. The majority of our arrangements are TSLs due to the nature of our business and customer requirements. In addition to the licenses, the arrangements also include: post-contract customer support, which includes providing frequent updates and upgrades to maintain the utility of the software due to rapid changes in technology; other intertwined services such as multiple copies of the tools; assisting our customers in applying our technology in the customers' development environment; and rights to remix licenses for other licenses. Payments are generally received in equal or near equal installments over the term of the arrangement. We have concluded that our software licenses in TSL contracts are not distinct from our obligation to provide unspecified software updates to the licensed software throughout the license term. Such updates represent inputs to a single, combined performance obligation, commencing upon the later of the arrangement effective date or transfer of control to the software license. Remix rights are not an additional promised good or service in the contract, and where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same pattern of transfer to the customer over the duration of the subscription term. Design IP Products We generally license IP under nonexclusive license agreements that provide usage rights for specific applications. Additionally, for certain IP license agreements, royalties are collected as customers sell their own products that incorporate our IP. These arrangements generally have two distinct performance obligations that consist of transferring the licensed IP and the post contract support service. Support services consist of a stand-ready obligation to provide technical support and software updates over the support term. Revenue allocated to the IP license is recognized at a point in time upon the later of the delivery date or the beginning of the license period, and revenue allocated to support services is recognized ratably over the support term. Royalties are recognized as revenue is earned, generally when the customer sells its products that incorporate our IP. Software Integrity Products Software Integrity product arrangements provide customers the right to software licenses, software updates and technical support. Under the term of these arrangements, the customer expects to receive integral updates to the software licenses that protect the customer’s software from potential security vulnerabilities. The licenses and software updates together serve to fulfill our commitment to the customer, as they represent inputs to a single, combined performance obligation that commences upon the later of the arrangement effective date or transfer of the software license. Software updates are part of the contract with the customer, and such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer . Hardware We generally have two performance obligations in arrangements involving the sale of hardware products. The first performance obligation is to transfer the hardware product, which includes embedded software integral to the functionality of the hardware product. The second performance obligation is to provide maintenance on the hardware and our embedded software, including rights to technical support, hardware repairs and software updates that are all provided over the same term and have the same time-based pattern of transfer to the customer. The portion of the transaction price allocated to the hardware product is recognized as revenue at a point in time when control of the hardware is transferred to the customer. We have concluded that control generally transfers upon shipment because the customer has the ability to direct the use of the asset and an obligation to pay for the hardware. The portion of the transaction price allocated to maintenance is recognized as revenue that is ratable over the maintenance term. Professional Services Our arrangements often include service elements (other than maintenance and support services). These services include training, design assistance, and consulting. These services are generally performed on a time and materials basis, and are recognized over time, as the customer simultaneously receives and consumes the benefit provided. Certain arrangements also include the customization or modification of licensed IP. Revenue from these contracts is recognized over time as the services are performed, when the development is specific to the customer’s needs and we have enforceable rights to payment for performance completed. Inputs such as costs incurred and hours expended are used in order to measure progress of performance. We have a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances, specification and testing requirement changes, and changes in customer delivery priorities. Payments for services are generally due upon milestones in the contract or upon consumption of the hourly resources. Flexible Spending Accounts Our customers frequently enter into non-cancelable Flexible Spending Account arrangements (FSA) whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of our products or services. These arrangements do not meet the definition of a revenue contract until the customer executes a separate order (pulldown request) to identify the required products and services that they are purchasing. The combination of the FSA arrangement and the subsequent order creates enforceable rights and obligations, thus meeting the definition of a revenue contract. Each separate order under the agreement is treated as an individual contract and accounted for based on the respective performance obligations included within the pulldown requests. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether services and products are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment . We have concluded that (1) our EDA software licenses in TSL contracts are not distinct from our obligation to provide unspecified software updates to the licensed software throughout the license term, because those promises represent inputs to a single, combined performance obligation, and (2) where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support, because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer. In reaching this conclusion, we considered the nature of the obligation to customers which is to provide an ongoing right to use the most up to date and relevant software. As EDA customers operate in a rapidly changing and competitive environment, satisfying the obligation requires providing critical updates to the existing software products, including ongoing iterative interaction with customers to make the software relevant to customers’ ability to meet the time to go to market with advanced products. Similarly, we also concluded that in our Software Integrity business, the licenses and maintenance updates serve together to fulfill our commitment to the customer as both work together to provide the functionality to the customer and represent a combined performance obligation because the updates are essential to the software’s central utility, which is to identify security vulnerabilities and other threats. Our contracts with customers can involve hundreds of products and various license rights. Customers often negotiate a broad portfolio of solutions, and favorable terms along with future purchase options to manage their overall costs. Determining whether the purchase options are considered distinct performance obligations that should be accounted for separately as material rights versus combined together may require significant judgment. Judgment is also required to determine the standalone selling price (SSP) for each distinct performance obligation. For non-software performance obligations (IP, Hardware, and services), SSP is established based on observable prices of products and services sold separately. SSP for license (and related updates and support) in a contract with multiple performance obligations is determined by applying a residual approach whereby all other non-software performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSP, using observable prices, with any residual amount of the transaction price allocated to the license because we do not sell the license separately, and the pricing is highly variable. Contract Balances The timing of revenue recognition may differ from the timing of invoicing customers, and these timing differences result in receivables (billed or unbilled), contract assets, or contract liabilities (deferred revenue) on our consolidated balance sheet. We record a contract asset when revenue is recognized prior to the right to invoice, or deferred revenue when revenue is recognized subsequent to invoicing. For time-based software agreements, customers are generally invoiced in equal, quarterly amounts, although some customers prefer to be invoiced in single or annual amounts. We record an unbilled receivable when revenue is recognized and we have an unconditional right to invoice and receive payment. |
Warranties and Indemnities | Warranties and Indemnities Warranties. We generally warrant our products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for our software products and for up to six months for our hardware products. Indemnities. |
Net Income Per Share | Net Income Per Share. We 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 restricted stock units and awards during the period using the treasury stock method. See Note 14. Net Income Per Share of the Notes to Consolidated Financial Statements. |
Foreign Currency Translation | Foreign Currency Translation. The functional currency of the majority of our active foreign subsidiaries is the foreign subsidiary’s local currency. Assets and liabilities that are not denominated in the functional currency are remeasured into the functional currency with any related gains or losses recorded in earnings. We translate assets and liabilities of our non-U.S. dollar functional currency foreign operations into the U.S. dollar reporting currency at exchange rates in effect at the balance sheet date. We translate income and expense items of such foreign operations into the U.S. dollar reporting currency at average exchange rates for the period. Accumulated translation adjustments are reported in stockholders’ equity, as a component of accumulated other comprehensive income (loss). |
Segment Reporting | Segment Reporting. Effective in the first quarter of fiscal 2023, we realigned our organizational structure to evaluate the results of our Design IP business separately. Our Chief Operating Decision Maker (CODM), our Chief Executive Officer (CEO), now regularly reviews disaggregated segment information, assesses performance against our key growth strategies and allocates resources based on this new organizational structure. As a result, effective in the first quarter of fiscal 2023, we changed our reportable segments from two reportable segments to the following three reportable segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, system integration products and services, digital, custom and FPGA IC design software, verification software and hardware products, manufacturing software products and other; (2) Design IP, which includes our Design IP products; and (3) Software Integrity, which includes solutions that test software code for security vulnerabilities and quality defects, as well as professional and managed services. As such, prior period reportable segment results and related disclosures have been reclassified to reflect our current reportable segments. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (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 did not have a material impact on our consolidated financial statements. Beginning in fiscal 2021, we adopted ASC 326, which was issued by the FASB in June 2016 as ASU 2016-13 Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU replaced previous incurred loss impairment guidance and established a single expected credit losses allowance framework for financial assets carried at amortized cost. It also eliminated the concept of other-than-temporary impairment and requires credit losses related to certain available-for-sale debt securities to be recorded through an allowance for credit losses. We adopted ASC 326 using the modified retrospective method, which requires a cumulative-effect adjustment to the opening balance of retained earnings to be recognized on the date of adoption and, accordingly, recorded a net decrease of $3.2 million to retained earnings as of beginning of fiscal 2021. Please see the “Allowance for Credit Losses” accounting policy above. 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 on a prospective basis, and the adoption did not have a material impact on our consolidated financial statements. There have been no recently adopted accounting pronouncements during fiscal 2023 that are of significance to us. Recent Accounting Pronouncements Not Yet Adopted In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03), which applies to all equity securities measured at fair value that are subject to contractual sale restrictions. This change prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. The standard will become effective for us beginning on November 1, 2024 and will be applied prospectively. Early adoption is permitted. Any future impact from the adoption of this guidance will depend on the facts and circumstances of future transactions. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The ASU is effective for us beginning on November 1, 2024 and will be applied retrospectively. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. |
Restricted cash | Restricted cash We include amounts generally described as restricted cash in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the consolidated statements of cash flows. Restricted cash is primarily associated with office leases and employee loan programs. |
Fair Value Measurement | 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 for identical instruments in active markets, quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 —Unobservable inputs derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Changes in Allowance for Credit Losses | The following table presents the changes in the allowance for credit losses: Fiscal Year Balance at Provisions Write-offs/Adjustments Balance at (in thousands) 2023 $ 41,236 $ 19,932 $ (6,763) $ 54,405 2022 $ 31,605 $ 12,424 $ (2,793) $ 41,236 2021 $ 29,489 $ 18,515 $ (16,399) $ 31,605 |
Useful Lives of Depreciable Assets | The useful lives of depreciable assets are as follows: Useful Life in Years Computer and other equipment 3 - 8 Buildings 30 Furniture and fixtures 5 Leasehold improvements Shorter of the lease term or the estimated useful life |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table shows the percentage of revenue by product groups: Year Ended October 31, 2023 2022 2021 EDA 62.9 % 62.9 % 63.6 % Design IP 26.4 % 25.9 % 25.1 % Software Integrity 9.0 % 9.2 % 9.4 % Other 1.7 % 2.0 % 1.9 % Total 100.0 % 100.0 % 100.0 % |
Schedule of Contract Assets and Liabilities | Contract balances are as follows: As of October 31, 2023 2022 (in thousands) Contract assets, net $ 389,042 $ 260,498 Unbilled receivables $ 60,016 $ 46,254 Deferred revenue $ 1,951,128 $ 2,065,294 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | Goodwill activity by reportable segment consists of the following: Design Automation Design IP Software Integrity Total (in thousands) Balance at October 31, 2021 $ 2,156,732 $ 947,742 $ 471,311 $ 3,575,785 Additions 68,923 — 249,852 318,775 Adjustments 1,285 — — 1,285 Effect of foreign currency translation (50,603) (3,008) — (53,611) Balance at October 31, 2022 2,176,337 944,734 721,163 3,842,234 Additions 229,351 — — 229,351 Adjustments — — 3,097 3,097 Effect of foreign currency translation (5,006) 649 11 (4,346) Balance at October 31, 2023 $ 2,400,682 $ 945,383 $ 724,271 $ 4,070,336 |
Summary of Intangible Assets | Intangible assets as of October 31, 2023 consists of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,135,347 $ 885,555 $ 249,792 Customer relationships 463,371 358,421 104,950 Contract rights intangible 194,930 190,670 4,260 Trademarks and trade names 52,825 37,633 15,192 Capitalized software development costs 50,795 50,795 — Total $ 1,897,268 $ 1,523,074 $ 374,194 Intangible assets as of October 31, 2022 consists of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,083,703 $ 813,226 $ 270,477 Customer relationships 426,242 333,984 92,258 Contract rights intangible 190,666 188,262 2,404 Trademarks and trade names 52,795 34,054 18,741 Capitalized software development costs 48,591 46,025 2,566 Total $ 1,801,997 $ 1,415,551 $ 386,446 |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets consists of the following: Year Ended October 31, 2023 2022 2021 (in thousands) Core/developed technology $ 72,412 $ 64,469 $ 46,049 Customer relationships 24,446 26,640 31,478 Contract rights intangible 2,452 2,682 2,413 Trademarks and trade names 3,579 2,899 2,440 Capitalized software development costs (1) 4,771 2,672 4,067 Total $ 107,660 $ 99,362 $ 86,447 (1) Amortization of capitalized software development costs is included in cost of products revenue in the consolidated statements of income. |
Estimated Future Amortization of Intangible Assets | The following table presents the estimated future amortization of intangible assets as of October 31, 2023: Fiscal Year (in thousands) 2024 $ 103,108 2025 84,588 2026 71,406 2027 51,205 2028 25,807 2029 and thereafter 38,080 Total $ 374,194 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Balance Sheets Components | As of October 31, 2023 2022 (in thousands) Accounts receivable, net: Accounts receivable $ 929,673 $ 779,390 Unbilled accounts receivable 60,016 46,254 Total accounts receivable 989,689 825,644 Less: allowance for credit losses (42,722) (29,553) Total $ 946,967 $ 796,091 Property and equipment, net: Computer and other equipment $ 991,994 $ 870,388 Buildings 135,255 135,722 Furniture and fixtures 86,946 80,885 Land 21,598 21,598 Leasehold improvements 265,536 241,062 1,501,329 1,349,655 Less: accumulated depreciation (1) (944,068) (866,355) Total $ 557,261 $ 483,300 Other long-term assets: Deferred compensation plan assets $ 300,731 $ 279,096 Capitalized commission, net 88,614 96,509 Other 81,628 88,090 Total $ 470,973 $ 463,695 Accounts payable and accrued liabilities: Payroll and related benefits $ 583,854 $ 559,886 Accrued income taxes 226,762 35,290 Other accrued liabilities 157,254 176,647 Accounts payable 155,891 37,580 Total $ 1,123,761 $ 809,403 Other long-term liabilities: Deferred compensation plan liabilities $ 300,731 $ 279,096 Other 85,407 48,733 Total $ 386,138 $ 327,829 (1) Accumulated depreciation includes write-offs due to retirement of fully depreciated fixed assets. |
Financial Assets and Liabilit_2
Financial Assets and Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Financial Assets And Liabilities [Abstract] | |
Schedule of Cash Equivalents and Investments | As of October 31, 2023, the balances of our cash equivalents and short-term investments are as follows: Amortized Cost Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 10,129 $ — $ — $ — $ 10,129 U.S. Treasury, agency & T-bills 2,994 — — — 2,994 Total: $ 13,123 $ — $ — $ — $ 13,123 Short-term investments: U.S. Treasury, agency & T-bills $ 15,752 $ — $ (61) $ (2) $ 15,689 Municipal bonds 515 — — (16) 499 Corporate debt securities 103,213 13 (455) (396) 102,375 Asset-backed securities 33,245 21 (93) (97) 33,076 Total: $ 152,725 $ 34 $ (609) $ (511) $ 151,639 (1) See Note 8. Fair Value Measurements for further discussion on fair values. The contractual maturities of our available-for-sale debt securities as of October 31, 2023 are as follows: Amortized Cost Fair Value (in thousands) Less than 1 year $ 74,398 $ 73,879 1-5 years 74,604 74,104 5-10 years 1,723 1,721 >10 years 2,000 1,935 Total $ 152,725 $ 151,639 As of October 31, 2022, the balances of our cash equivalents and short-term investments are as follows: Amortized Gross Gross Gross Estimated (1) (in thousands) Cash equivalents: Money market funds $ 77,683 $ — $ — $ — $ 77,683 Total: $ 77,683 $ — $ — $ — $ 77,683 Short-term investments: U.S. Treasury, agency & T-bills $ 25,816 $ — $ (174) $ (39) $ 25,603 Municipal bonds 2,970 — (12) (80) 2,878 Corporate debt securities 95,899 7 (747) (1,135) 94,024 Asset-backed securities 25,826 — (149) (269) 25,408 Total: $ 150,511 $ 7 $ (1,082) $ (1,523) $ 147,913 (1) See Note 8. Fair Value Measurements for further discussion on fair values. |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash included in the consolidated balance sheets: As of October 31, 2023 2022 (in thousands) Cash and cash equivalents $ 1,438,913 $ 1,417,608 Restricted cash included in prepaid and other current assets 1,549 1,566 Restricted cash included in other long-term assets 725 690 Total cash, cash equivalents and restricted cash $ 1,441,187 $ 1,419,864 |
Effects on Changes in Fair Values of Non-Designated Forward Contracts | The effects of the non-designated derivative instruments on our consolidated statements of income are summarized as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Gains (losses) recorded in other income (expense), net $ (5,899) $ (15,851) $ (855) |
Notional Amounts of Derivative Instruments | The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: As of October 31, 2023 2022 (in thousands) Total gross notional amounts $ 1,666,758 $ 1,386,140 Net fair value $ (2,308) $ (50,080) |
Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet | The following table represents the 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 October 31, 2023 Other current assets $ 12,962 $ 491 Accrued liabilities $ 14,665 $ 1,096 Balance at October 31, 2022 Other current assets $ 2,315 $ 223 Accrued liabilities $ 52,171 $ 447 |
Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax | The following table represents the location of the amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax in the consolidated statements of income: Location of gains (losses) Amount of gains (losses) Location of gains (losses) Amount of (in thousands) Fiscal year ended October 31, 2023 Foreign exchange contracts Revenue $ 8,390 Revenue $ (9,942) Foreign exchange contracts Operating expenses 16,596 Operating expenses (15,334) Total $ 24,986 $ (25,276) Fiscal year ended October 31, 2022 Foreign exchange contracts Revenue $ (19,755) Revenue $ 10,975 Foreign exchange contracts Operating expenses (59,314) Operating expenses (15,869) Total $ (79,069) $ (4,894) Fiscal year ended October 31, 2021 Foreign exchange contracts Revenue $ 1,148 Revenue $ 4,181 Foreign exchange contracts Operating expenses 8,712 Operating expenses 10,378 Total $ 9,860 $ 14,559 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2023: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 10,129 $ 10,129 $ — $ — U.S. Treasury, agency & T-bills 2,994 2,994 — Short-term investments: U.S. Treasury, agency & T-bills 15,689 — 15,689 — Municipal bonds 499 — 499 — Corporate debt securities 102,375 — 102,375 — Asset-backed securities 33,076 — 33,076 — Prepaid and other current assets: Foreign currency derivative contracts 13,453 — 13,453 — Other long-term assets: Deferred compensation plan assets 300,731 300,731 — — Total assets $ 478,946 $ 310,860 $ 168,086 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 15,761 $ — $ 15,761 $ — Other long-term liabilities: Deferred compensation plan liabilities 300,731 300,731 — — Total liabilities $ 316,492 $ 300,731 $ 15,761 $ — Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2022: Description Total Fair Value Measurement Using Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 77,683 $ 77,683 $ — $ — Short-term investments: U.S. Treasury, agency & T-bills 25,603 — 25,603 — Municipal bonds 2,878 — 2,878 — Corporate debt securities 94,024 — 94,024 — Asset-backed securities 25,408 — 25,408 — Prepaid and other current assets: Foreign currency derivative contracts 2,538 — 2,538 — Other long-term assets: Deferred compensation plan assets 279,096 279,096 — — Total assets $ 507,230 $ 356,779 $ 150,451 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 52,618 $ — $ 52,618 $ — Other long-term liabilities: Deferred compensation plan liabilities 279,096 279,096 — — Total liabilities $ 331,714 $ 279,096 $ 52,618 $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Lease Cost and Supplemental Cash Flow Information | The components of our lease expense during the period presented are as follows: Year Ended October 31, 2023 2022 (in thousands) Operating lease expense (1) $ 96,083 $ 91,972 Variable lease expense (2) 20,789 11,649 Total lease expense $ 116,872 $ 103,621 (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 is as follows: Year Ended October 31, 2023 2022 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 88,983 $ 83,858 ROU assets obtained in exchange for operating lease liabilities $ 101,390 $ 168,095 |
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 are as follows: As of October 31, 2023 2022 Weighted-average remaining lease term (in years) 8.34 9.16 Weighted-average discount rate 2.50 % 2.19 % |
Lessee, Operating Lease, Liability, Maturity | The following table represents the maturities of our future lease payments due under operating leases as of October 31, 2023: Lease Payments Fiscal year (in thousands) 2024 $ 102,297 2025 102,849 2026 92,687 2027 91,038 2028 77,010 2029 and thereafter 282,186 Total future minimum lease payments 748,067 Less: Imputed interest 78,342 Total lease liabilities $ 669,725 |
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 October 31, 2023, are as follows: Lease Receipts (in thousands) Fiscal year 2024 $ 24,698 2025 25,351 2026 26,230 2027 27,376 2028 27,557 2029 and thereafter 56,491 Total $ 187,703 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, are as follows: As of October 31, 2023 2022 (in thousands) Cumulative currency translation adjustments $ (170,104) $ (156,192) Unrealized gains (losses) on derivative instruments, net of taxes (25,224) (75,486) Unrealized gains (losses) on available-for-sale securities, net of taxes (1,086) (2,599) Total $ (196,414) $ (234,277) |
Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income | The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income is as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Reclassifications: Gains (losses) on cash flow hedges, net of taxes Revenues $ (9,942) $ 10,975 $ 4,181 Operating expenses (15,334) (15,869) 10,378 Total $ (25,276) $ (4,894) $ 14,559 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase And Reissuance Activities | Stock repurchase activities as well as the reissuance of treasury stock for employee stock-based compensation purposes are as follows: Year Ended October 31, 2023 (1) 2022 2021 (2) (in thousands, except per share price) Shares repurchased 2,992 3,609 2,780 Average purchase price per share $ 387.92 $ 314.51 $ 270.84 Aggregate purchase price $ 1,160,724 $ 1,135,000 $ 753,081 Reissuance of treasury stock 2,670 2,922 3,224 (1) Excludes 73,903 shares and $45.0 million equity forward contract that was settled in November 2023. (2) Excludes 107,701 shares and $35.0 million equity forward contract that was settled in November 2021. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Stock Units | The following table contains information concerning activities related to restricted stock units granted under the 2006 Employee Plan and assumed from acquisitions: Restricted Stock Units Outstanding (1) Weighted Weighted Aggregate (in thousands, except per share amounts and years) Balance at October 31, 2020 4,130 $ 134.80 1.47 Granted (2) 1,901 $ 258.58 Vested (4) (1,565) $ 122.01 $ 421,034 Forfeited (279) $ 167.76 Balance at October 31, 2021 4,187 $ 193.58 1.39 Granted (3) 2,402 $ 323.46 Vested (4) (1,589) $ 170.36 $ 529,766 Forfeited (362) $ 228.70 Balance at October 31, 2022 4,638 $ 265.76 1.32 Granted (3) 2,083 $ 394.34 Vested (4) (1,839) $ 237.19 $ 706,136 Forfeited (365) $ 283.29 Balance at October 31, 2023 4,517 $ 335.26 1.41 (1) No restricted stock units were assumed in connection with acquisitions in the last three fiscal years, but the balance at fiscal year-end includes certain restricted stock units that were previously assumed in connection with acquisitions. (2) The number of granted restricted stock units includes those granted to senior management with performance-based vesting criteria (in addition to service-based vesting criteria) (performance-based RSUs) reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied. (3) The number of granted restricted stock units includes those granted to senior management with market-based and performance-based vesting criteria (in addition to service-based vesting criteria) (market-based RSUs) reported at the maximum possible number of shares that may ultimately be issuable if all applicable market-based and performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied. (4) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. |
Stock Options | The following table summarizes stock option activity and includes stock options granted under all equity plans: Options Outstanding Shares Under Stock Option (1) Weighted- Weighted- Aggregate (in thousands, except per share amounts and years) Balance at October 31, 2020 3,993 $ 85.26 4.10 $ 513,845 Granted 353 $ 239.46 Exercised (1,203) $ 66.50 Canceled/forfeited/expired (36) $ 128.49 Balance at October 31, 2021 3,107 $ 109.51 3.81 $ 694,921 Granted 293 $ 342.86 Exercised (1,126) $ 86.24 Canceled/forfeited/expired (114) $ 164.46 Balance at October 31, 2022 2,160 $ 150.37 3.57 $ 328,120 Granted 294 $ 361.64 Exercised (849) $ 109.83 Canceled/forfeited/expired (90) $ 245.86 Balance at October 31, 2023 1,515 $ 208.49 3.70 $ 376,563 Vested and expected to vest as of October 31, 2023 1,515 $ 208.49 3.70 $ 376,563 Exercisable at October 31, 2023 972 $ 142.41 2.67 $ 305,738 (1) No stock options were assumed in connection with acquisitions in the last three fiscal years, but the balance at fiscal year-end includes certain stock options that were previously assumed in connection with acquisitions. Year Ended October 31, 2023 2022 2021 (in thousands, except per share price) Intrinsic value $ 241,385 $ 273,524 $ 254,587 Average exercise price per share $ 109.83 $ 86.24 $ 66.50 |
Restricted Stock Units and Stock Options | The following table contains additional information concerning activities related to stock options and restricted stock units that were granted under the 2006 Employee Plan and assumed from acquisitions: Available for Grant (1)(2) (in thousands) Balance at October 31, 2020 12,129 Options granted (2) (353) Options canceled/forfeited/expired (2) 36 Restricted stock units granted (1)(3) (3,232) Restricted stock units forfeited (1) 471 Additional shares reserved 4,700 Balance at October 31, 2021 13,751 Options granted (2) (286) Options canceled/forfeited/expired (2) 114 Restricted stock units granted (1)(4) (4,083) Restricted stock units forfeited (1) 615 Additional shares reserved 3,000 Balance at October 31, 2022 13,111 Options granted (2) (294) Options canceled/forfeited/expired (2) 89 Restricted stock units granted (1)(4) (3,540) Restricted stock units forfeited (1) 620 Additional shares reserved 3,300 Balance at October 31, 2023 13,286 (1) Restricted stock units includes awards granted under the 2006 Employee Plan and assumed through acquisitions. The number of RSUs reflects the application of the award multiplier of 1.70 as described above. (2) Options granted by us are not subject to the award multiplier ratio described above. (3) The number of granted restricted stock units includes performance-based RSUs reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied. (4) The number of granted restricted stock units includes market-based RSUs reported at the maximum possible number of shares that may ultimately be issuable if all applicable market-based and performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied. |
Summary of Restricted Stock Award Activities Under 2005 Directors Plan | Restricted Stock Awards . The following table summarizes restricted stock award activities under the 2005 Directors Plan and 2017 Directors Plan: Restricted Weighted-Average (in thousands, except per share amounts) Unvested at October 31, 2020 9 $ 140.97 Granted 5 $ 261.01 Vested (9) $ 140.97 Forfeited — $ — Unvested at October 31, 2021 5 $ 261.01 Granted 5 $ 310.02 Vested (5) $ 261.01 Forfeited — $ — Unvested at October 31, 2022 5 $ 310.02 Granted 5 $ 387.79 Vested (5) $ 310.02 Forfeited — $ — Unvested at October 31, 2023 5 $ 387.79 |
Stock Option Plans and Stock Purchase Rights Granted Under ESPP | The assumptions presented in the following table are used to estimate the fair value of stock options and employee stock purchase rights granted under our stock plans: Year Ended October 31, 2023 2022 2021 Stock Options: Expected life (in years) 4.1 4.1 4.1 Risk-free interest rate 3.80%- 4.80% 1.07% - 4.42% 0.35% - 1.00% Volatility 32.74% -36.16% 32.28% - 37.04% 29.19%- 32.28% Weighted average estimated fair value $120.33 $98.07 $61.58 ESPP: Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 4.85% - 5.38% 0.67% - 3.44% 0.00% - 0.19% Volatility 28.03% - 35.27% 34.51% - 38.69% 28.02% - 39.68% Weighted average estimated fair value $120.82 $102.63 $89.82 |
Schedule of Share-Based Payment Award, Restricted Stock Units, Valuation Assumptions | The grant date fair value of the market-based RSUs and the assumptions used in the Monte Carlo simulation model to determine the grant date fair value during the periods are as follows: Year Ended October 31, 2023 2022 2021 (1) Expected life (in years) 0.90 - 2.70 1.16 - 1.69 — Risk-free interest rate 4.36% - 4.80% 1.33% - 3.46% — Volatility 34.79% - 42.86% 33.01% - 37.80% — Grant date fair value $357.29 - $465.79 $280.52 - $412.2 — (1) No market-based RSUs were granted in fiscal 2021. |
Stock Compensation Expense | The compensation cost recognized in the consolidated statements of income for our stock compensation arrangements is as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Cost of products $ 65,221 $ 55,134 $ 38,345 Cost of maintenance and service 29,572 24,146 13,817 Research and development expense 294,154 241,978 171,013 Sales and marketing expense 106,574 81,617 61,940 General and administrative expense 67,771 56,154 60,157 Stock-based compensation expense before taxes 563,292 459,029 345,272 Income tax benefit (90,915) (74,271) (53,483) Stock-based compensation expense after taxes $ 472,377 $ 384,758 $ 291,789 |
Deferred Plan Assets and Liabilities | Deferred plan assets and liabilities are as follows: As of October 31, 2023 2022 (in thousands) Plan assets recorded in other long-term assets $ 300,731 $ 279,096 Plan liabilities recorded in other long-term liabilities (1) $ 300,731 $ 279,096 (1) Undistributed deferred compensation balances due to participants. |
Summary of Impact of Deferred Plan | The following table summarizes the impact of the Deferred Plan: Year Ended October 31, 2023 2022 2021 (in thousands) Increase (reduction) to cost of revenue and operating expense $ 20,488 $ (68,778) $ 71,603 Other income (expense), net 20,488 (68,778) 71,603 Net increase (decrease) to net income $ — $ — $ — |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted-Average Common Shares Used to Calculate Net Income Per Share | The table below reconciles the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share: Year Ended October 31, 2023 2022 2021 (in thousands, except per share amounts) Numerator: Net income attributed to Synopsys $ 1,229,888 $ 984,594 $ 757,516 Denominator: Weighted average common shares for basic net income per share 152,146 153,002 152,698 Dilutive effect of common share equivalents from equity-based compensation 3,049 3,483 4,642 Weighted average common shares for diluted net income per share 155,195 156,485 157,340 Net income per share attributed to Synopsys: Basic $ 8.08 $ 6.44 $ 4.96 Diluted $ 7.92 $ 6.29 $ 4.81 Anti-dilutive employee stock-based awards excluded 475 281 408 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Total Income Before Provision for Income Tax | The domestic and foreign components of our total income (loss) before provision for income taxes are as follows: Year Ended October 31, 2023 2022 2021 (in thousands) United States $ 1,142,132 $ 1,036,279 $ 640,531 Foreign 159,650 79,235 164,983 Total income (loss) before provision for income taxes $ 1,301,782 $ 1,115,514 $ 805,514 |
Components of (Benefit) Provision for Income Taxes | The components of the provision (benefit) for income taxes are as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Current: Federal $ 244,523 $ 105,493 $ 85,950 State 22,193 23,201 11,898 Foreign 27,986 45,297 79,890 294,702 173,991 177,738 Deferred: Federal (192,762) (42,086) (108,530) State (1,842) 1,519 1,796 Foreign (16,441) 3,654 (21,849) (211,045) (36,913) (128,583) Provision (benefit) for income taxes $ 83,657 $ 137,078 $ 49,155 |
Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate | The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Statutory federal tax $ 273,374 $ 234,257 $ 168,745 State tax (benefit), net of federal effect 617 (2,514) (2,419) Federal tax credits (65,878) (61,582) (45,503) Tax (benefit) on foreign earnings (12,454) 25,930 7,988 Foreign-derived intangible income deduction (82,436) (38,924) (31,214) Tax settlements (23,752) — (7,134) Stock-based compensation (43,153) (52,625) (62,620) Changes in valuation allowance 29,631 19,794 15,232 Other 7,708 12,742 6,080 Provision (benefit) for income taxes $ 83,657 $ 137,078 $ 49,155 |
Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities are as follows: As of October 31, 2023 2022 (in thousands) Net deferred tax assets: Deferred tax assets: Deferred revenue 37,641 41,941 Deferred compensation 69,824 67,782 Intangible and depreciable assets 94,564 119,791 Capitalized research and development costs 592,536 231,733 Stock-based compensation 65,039 60,537 Tax loss carryovers 62,779 59,754 Foreign tax credit carryovers 41,972 27,153 Research and other tax credit carryovers 182,999 316,650 Operating Lease Liabilities 118,679 119,575 Accruals and reserves 27,636 — Other — 16,887 Gross deferred tax assets 1,293,669 1,061,803 Valuation allowance (229,259) (198,213) Total deferred tax assets 1,064,410 863,590 Deferred tax liabilities: Intangible assets 116,465 102,796 Operating lease Right-of-Use-Assets 94,068 96,598 Accruals and reserves — 5,998 Undistributed earnings of foreign subsidiaries 8,900 1,000 Other 18,006 — Total deferred tax liabilities 237,439 206,392 Net deferred tax assets $ 826,971 $ 657,198 |
Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities | We have the following tax loss and credit carryforwards available to offset future income tax liabilities: Carryforward Amount Expiration (in thousands) Federal net operating loss carryforward $ 156,991 2024-2042 Federal research credit carryforward 14,705 2024-2038 Federal foreign tax credit carryforward 27,522 2027-2033 International foreign tax credit carryforward 10,929 Indefinite International net operating loss carryforward 48,823 2027-Indefinite California research credit carryforward 243,960 Indefinite Other state research credit carryforward 25,176 2025-2043 State net operating loss carryforward 236,391 2024-2045 |
Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit | A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows: As of October 31, 2023 2022 (in thousands) Beginning balance $ 81,183 $ 82,360 Increases in unrecognized tax benefits related to prior year tax positions 211 435 Decreases in unrecognized tax benefits related to prior year tax positions (25,678) (9,791) Increases in unrecognized tax benefits related to current year tax positions 8,223 6,794 Decreases in unrecognized tax benefits related to settlements with taxing authorities — (1,104) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (249) (2,601) Increases in unrecognized tax benefits acquired 165 14,121 Changes in unrecognized tax benefits due to foreign currency translation 10,504 (9,031) Ending balance $ 74,359 $ 81,183 |
Subsidiaries Remain Subject to Tax Examination | We and/or our subsidiaries remain subject to tax examination in the following jurisdictions: Jurisdiction Year(s) Subject to Examination United States Fiscal years after 2020 California Fiscal years after 2018 Hungary Fiscal years after 2018 Ireland Fiscal years after 2018 Japan Fiscal years after 2017 Korea and Taiwan Fiscal years after 2021 China Fiscal years after 2013 India Fiscal years after 2019 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Components of Other Income (Expense), Net | The following table presents the components of other income (expense), net: Year Ended October 31, 2023 2022 2021 (in thousands) Interest income $ 36,674 $ 8,545 $ 2,442 Interest expense (1,178) (1,698) (3,365) Gains (losses) on assets related to deferred compensation plan 20,488 (68,778) 71,603 Foreign currency exchange gains (losses) (1,529) 4,694 5,292 Other, net (21,932) 10,713 (5,248) Total $ 32,523 $ (46,524) $ 70,724 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information by reportable segment is as follows: Year Ended October 31, 2023 2022 2021 (in thousands) Total Segments: Revenue $ 5,842,619 $ 5,081,542 $ 4,204,193 Adjusted operating income 2,048,045 1,675,102 1,281,389 Adjusted operating margin 35 % 33 % 30 % Design Automation: Revenue $ 3,775,287 $ 3,300,173 $ 2,754,737 Adjusted operating income 1,439,666 1,206,561 924,605 Adjusted operating margin 38 % 37 % 34 % Design IP: Revenue $ 1,542,726 $ 1,315,541 $ 1,055,672 Adjusted operating income 532,055 421,547 318,473 Adjusted operating margin 34 % 32 % 30 % Software Integrity: Revenue $ 524,606 $ 465,828 $ 393,784 Adjusted operating income 76,324 46,994 38,311 Adjusted operating margin 15 % 10 % 10 % |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The unallocated expenses managed at a consolidated level, including amortization of intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan, restructuring charges, and certain other operating expenses, are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income: Year Ended October 31, 2023 2022 2021 (in thousands) Total segment adjusted operating income $ 2,048,045 $ 1,675,102 $ 1,281,389 Reconciling items: Amortization of intangible assets (102,889) (96,690) (82,380) Stock-based compensation expense (563,292) (459,029) (345,272) Deferred compensation plan (20,488) 68,778 (71,603) Restructuring charges (77,002) (12,057) (33,405) Other (15,115) (14,066) (13,939) Total operating income $ 1,269,259 $ 1,162,038 $ 734,790 |
Revenues Related to Operations by Geographic Areas | Revenue and property and equipment, net, related to operations in the United States and other geographic areas are: Year Ended October 31, 2023 2022 2021 (in thousands) Revenue: United States $ 2,786,064 $ 2,349,766 $ 1,951,964 Europe 595,634 493,430 440,825 China 886,256 795,405 562,711 Korea 634,802 531,542 427,471 Other 939,863 911,399 821,222 Consolidated $ 5,842,619 $ 5,081,542 $ 4,204,193 |
Property and Equipment by Geographic Areas | As of October 31, 2023 2022 (in thousands) Property and Equipment, net: United States $ 338,260 $ 297,780 Other 219,001 185,520 Total $ 557,261 $ 483,300 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2023 segment | Oct. 31, 2023 USD ($) segment | Oct. 31, 2022 USD ($) segment | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | segment | 3 | 3 | 2 | ||
Cash and cash equivalent maturity period, months | 3 months | ||||
Debt securities and other investments, minimum short term maturity, period | 3 months | ||||
Debt securities and other investments, maximum maturity, period | 3 years | ||||
Depreciation expenses | $ 145,100,000 | $ 107,700,000 | $ 119,100,000 | ||
Repair and maintenance costs | 84,000,000 | 72,900,000 | 62,600,000 | ||
Goodwill impairment loss | 0 | 0 | 0 | ||
Long-lived assets impairment loss | $ 0 | 0 | 0 | ||
Software product warranty period (in days) | 90 days | ||||
Stockholders' equity | $ (6,153,258,000) | (5,520,526,000) | (5,298,943,000) | $ (4,912,367,000) | |
Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Stockholders' equity | $ (6,741,699,000) | $ (5,534,307,000) | $ (4,549,713,000) | (3,795,397,000) | |
Cumulative Effect, Period Of Adoption, Adjustment | Adjustment Due To Adoption Of Accounting Standards Related To Credit Losses | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Stockholders' equity | 3,200,000 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Adjustment Due To Adoption Of Accounting Standards Related To Credit Losses | Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Stockholders' equity | $ 3,200,000 | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Hardware product warranty period (in months) | 6 months | ||||
Intangible Assets | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 1 year | ||||
Intangible Assets | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Basis of Presentation - Changes in Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | $ 41,236 | $ 31,605 | $ 29,489 |
Provisions | 19,932 | 12,424 | 18,515 |
Write-offs/Adjustments | (6,763) | (2,793) | (16,399) |
Balance at End of Period | $ 54,405 | $ 41,236 | $ 31,605 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Basis of Presentation - Useful Lives of Depreciable Assets (Detail) | Oct. 31, 2023 |
Computer and other equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of depreciable assets, (in years) | 3 years |
Computer and other equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of depreciable assets, (in years) | 8 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful lives of depreciable assets, (in years) | 30 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful lives of depreciable assets, (in years) | 5 years |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - Revenues - Product Concentration Risk | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue percentage by product group | 100% | 100% | 100% |
EDA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage by product group | 62.90% | 62.90% | 63.60% |
Design IP | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage by product group | 26.40% | 25.90% | 25.10% |
Software Integrity | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage by product group | 9% | 9.20% | 9.40% |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage by product group | 1.70% | 2% | 1.90% |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net | $ 389,042 | $ 260,498 |
Unbilled receivables | 60,016 | 46,254 |
Deferred revenue | $ 1,951,128 | $ 2,065,294 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Contract with customer, liability, revenue recognized | $ 1,700 | $ 1,200 | |
Revenue, remaining performance obligation, amount | 8,600 | 7,100 | |
Revenue, remaining performance obligation, non-cancellable, amount | 1,400 | 1,100 | |
Capitalized contract cost, net | 88.6 | 96.5 | |
Amortization of capitalized costs to obtain revenue contracts | $ 82.2 | 73 | $ 64.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Revenue, remaining performance obligation, percentage | 40% | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-01 | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 years | ||
Sales Based Royalties | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Contract with customer, liability, revenue recognized | $ 99.3 | $ 137.3 |
Business Combinations (Details)
Business Combinations (Details) | 3 Months Ended | 12 Months Ended | |||
Jun. 22, 2022 USD ($) | Apr. 30, 2022 USD ($) | Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) acquisition | Oct. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 4,070,336,000 | $ 3,842,234,000 | $ 3,575,785,000 | ||
Redeemable non-controlling interest | 31,043,000 | 38,664,000 | |||
Acquisition-related costs | $ 15,100,000 | 14,100,000 | 15,400,000 | ||
OpenLight | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 73% | ||||
Design Automation | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,400,682,000 | 2,176,337,000 | 2,156,732,000 | ||
Design IP | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 945,383,000 | 944,734,000 | 947,742,000 | ||
Software Integrity | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 724,271,000 | 721,163,000 | 471,311,000 | ||
Series of Individually Immaterial Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Total purchase consideration | 295,400,000 | 31,800,000 | 298,900,000 | ||
Identifiable intangible assets | 95,800,000 | 12,700,000 | 109,300,000 | ||
Goodwill | 205,800,000 | ||||
Net tangible liabilities | 29,800,000 | 3,100,000 | 16,200,000 | ||
Goodwill, expected tax deductible amount | 5,700,000 | $ 0 | 34,000,000 | ||
Number of acquisitions | acquisition | 2 | ||||
Series of Individually Immaterial Business Acquisitions | Design Automation | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 229,400,000 | $ 22,200,000 | 150,400,000 | ||
Series of Individually Immaterial Business Acquisitions | Design IP | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 9,700,000 | ||||
Series of Individually Immaterial Business Acquisitions | Software Integrity | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 45,700,000 | ||||
Series of Individually Immaterial Business Acquisitions | Minimum | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 1 year | ||||
Series of Individually Immaterial Business Acquisitions | Maximum | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 8 years | ||||
NTT Security AppSec Solutions Inc | |||||
Business Acquisition [Line Items] | |||||
Total purchase consideration | $ 310,000,000 | ||||
Identifiable intangible assets | 97,500,000 | ||||
Net tangible liabilities | 40,400,000 | ||||
Goodwill, expected tax deductible amount | 0 | ||||
NTT Security AppSec Solutions Inc | Software Integrity | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 252,900,000 | ||||
NTT Security AppSec Solutions Inc | Minimum | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | ||||
NTT Security AppSec Solutions Inc | Maximum | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | ||||
OpenLight | |||||
Business Acquisition [Line Items] | |||||
Total purchase consideration | $ 90,000,000 | ||||
Identifiable intangible assets | 94,000,000 | ||||
Goodwill, expected tax deductible amount | $ 0 | ||||
Percent of company acquired | 75% | ||||
Percentage of equity interests held by non-controlling interest | 25% | ||||
Redeemable noncontrolling interest, redemption value | $ 30,000,000 | ||||
Redeemable noncontrolling interest, put option value | 10,100,000 | ||||
Consideration transferred including redeemable noncontrolling interest | 100,100,000 | ||||
Net loss of acquiree | $ 40,900,000 | ||||
Net loss of acquiree attributable to redeemable non-controlling interest | 10,000,000 | ||||
Redeemable non-controlling interest | $ 31,000,000 | ||||
OpenLight | Design Automation | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 46,700,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Textual (Details) | 12 Months Ended | ||
Oct. 31, 2023 USD ($) segment | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of reporting units | segment | 3 | ||
Goodwill impairment loss | $ | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 3,842,234 | $ 3,575,785 |
Additions | 229,351 | 318,775 |
Adjustments | 3,097 | 1,285 |
Effect of foreign currency translation | (4,346) | (53,611) |
Ending balance | 4,070,336 | 3,842,234 |
Design Automation | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 2,176,337 | 2,156,732 |
Additions | 229,351 | 68,923 |
Adjustments | 0 | 1,285 |
Effect of foreign currency translation | (5,006) | (50,603) |
Ending balance | 2,400,682 | 2,176,337 |
Design IP | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 944,734 | 947,742 |
Additions | 0 | 0 |
Adjustments | 0 | 0 |
Effect of foreign currency translation | 649 | (3,008) |
Ending balance | 945,383 | 944,734 |
Software Integrity | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 721,163 | 471,311 |
Additions | 0 | 249,852 |
Adjustments | 3,097 | 0 |
Effect of foreign currency translation | 11 | 0 |
Ending balance | $ 724,271 | $ 721,163 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,897,268 | $ 1,801,997 |
Accumulated Amortization | 1,523,074 | 1,415,551 |
Net Amount | 374,194 | 386,446 |
Core/developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,135,347 | 1,083,703 |
Accumulated Amortization | 885,555 | 813,226 |
Net Amount | 249,792 | 270,477 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 463,371 | 426,242 |
Accumulated Amortization | 358,421 | 333,984 |
Net Amount | 104,950 | 92,258 |
Contract rights intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 194,930 | 190,666 |
Accumulated Amortization | 190,670 | 188,262 |
Net Amount | 4,260 | 2,404 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 52,825 | 52,795 |
Accumulated Amortization | 37,633 | 34,054 |
Net Amount | 15,192 | 18,741 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50,795 | 48,591 |
Accumulated Amortization | 50,795 | 46,025 |
Net Amount | $ 0 | $ 2,566 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible expense | $ 107,660 | $ 99,362 | $ 86,447 |
Core/developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible expense | 72,412 | 64,469 | 46,049 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible expense | 24,446 | 26,640 | 31,478 |
Contract rights intangible | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible expense | 2,452 | 2,682 | 2,413 |
Trademarks and trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible expense | 3,579 | 2,899 | 2,440 |
Capitalized software development costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible expense | $ 4,771 | $ 2,672 | $ 4,067 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2024 | $ 103,108 | |
2025 | 84,588 | |
2026 | 71,406 | |
2027 | 51,205 | |
2028 | 25,807 | |
2029 and thereafter | 38,080 | |
Net Amount | $ 374,194 | $ 386,446 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Balance Sheet (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Accounts receivable, net: | ||
Accounts receivable | $ 929,673 | $ 779,390 |
Unbilled accounts receivable | 60,016 | 46,254 |
Total accounts receivable | 989,689 | 825,644 |
Less: allowance for credit losses | (42,722) | (29,553) |
Total | 946,967 | 796,091 |
Property and equipment, net: | ||
Computer and other equipment | 991,994 | 870,388 |
Buildings | 135,255 | 135,722 |
Furniture and fixtures | 86,946 | 80,885 |
Land | 21,598 | 21,598 |
Leasehold improvements | 265,536 | 241,062 |
Property and equipment gross | 1,501,329 | 1,349,655 |
Less accumulated depreciation | (944,068) | (866,355) |
Total | 557,261 | 483,300 |
Other long-term assets: | ||
Deferred compensation plan assets | 300,731 | 279,096 |
Capitalized commission, net | 88,614 | 96,509 |
Other | 81,628 | 88,090 |
Total | 470,973 | 463,695 |
Accounts payable and accrued liabilities: | ||
Payroll and related benefits | 583,854 | 559,886 |
Accrued income taxes | 226,762 | 35,290 |
Other accrued liabilities | 157,254 | 176,647 |
Accounts payable | 155,891 | 37,580 |
Total | 1,123,761 | 809,403 |
Other long-term liabilities: | ||
Deferred compensation plan liabilities | 300,731 | 279,096 |
Other | 85,407 | 48,733 |
Total | $ 386,138 | $ 327,829 |
Financial Assets and Liabilit_3
Financial Assets and Liabilities - Summary of Cash, Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Cash, Cash Equivalents and Investments [Line Items] | ||
Total | $ 152,725 | $ 150,511 |
Gross Unrealized Gains | 34 | 7 |
Gross Unrealized Losses Less Than 12 Continuous Months | (609) | (1,082) |
Gross Unrealized Losses 12 Continuous Months or Longer | (511) | (1,523) |
Estimated fair value | 151,639 | 147,913 |
Cash equivalents: | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Total | 13,123 | 77,683 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | 0 |
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 |
Estimated fair value | 13,123 | 77,683 |
Cash equivalents: | Money market funds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Total | 10,129 | 77,683 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | 0 |
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | 0 |
Estimated fair value | 10,129 | 77,683 |
Cash equivalents: | U.S. Treasury, agency & T-bills | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Total | 2,994 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | |
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | |
Estimated fair value | 2,994 | |
Short-term Investments | U.S. Treasury, agency & T-bills | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Total | 15,752 | 25,816 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less Than 12 Continuous Months | (61) | (174) |
Gross Unrealized Losses 12 Continuous Months or Longer | (2) | (39) |
Estimated fair value | 15,689 | 25,603 |
Short-term Investments | Municipal bonds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Total | 515 | 2,970 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | (12) |
Gross Unrealized Losses 12 Continuous Months or Longer | (16) | (80) |
Estimated fair value | 499 | 2,878 |
Short-term Investments | Corporate debt securities | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Total | 103,213 | 95,899 |
Gross Unrealized Gains | 13 | 7 |
Gross Unrealized Losses Less Than 12 Continuous Months | (455) | (747) |
Gross Unrealized Losses 12 Continuous Months or Longer | (396) | (1,135) |
Estimated fair value | 102,375 | 94,024 |
Short-term Investments | Asset-backed securities | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Total | 33,245 | 25,826 |
Gross Unrealized Gains | 21 | 0 |
Gross Unrealized Losses Less Than 12 Continuous Months | (93) | (149) |
Gross Unrealized Losses 12 Continuous Months or Longer | (97) | (269) |
Estimated fair value | $ 33,076 | $ 25,408 |
Financial Assets and Liabilit_4
Financial Assets and Liabilities - Additional Information (Detail) ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2018 USD ($) | Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Dec. 14, 2022 USD ($) | Jan. 22, 2021 USD ($) | Jul. 31, 2018 CNY (¥) | |
Financial Assets And Liabilities [Line Items] | |||||||
Impairment of non-marketable equity securities | $ 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 | ||||||
Gain (loss) related to discontinuing of cash flow hedge | $ 0 | 0 | $ 0 | ||||
Maximum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Short-term investments, term | 3 years | ||||||
Fair values of derivative instruments not designated as hedging instruments | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Forward contracts terms (in months) | 1 month | ||||||
Foreign currency derivative contracts | Minimum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Derivative maturity period | 1 month | ||||||
Foreign currency derivative contracts | Maximum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Derivative maturity period | 27 months | ||||||
Foreign currency derivative contracts | Cash Flow Hedging | Maximum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Derivative maturity period | 3 years | ||||||
Foreign Exchange Forward | Cash Flow Hedging | Maximum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Derivative maturity period | 27 months | ||||||
Foreign Exchange Contracts | Maximum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Non-designated foreign exchange forward contract remaining maturity | 1 year | ||||||
Unsecured Debt | Senior Revolving Credit Facility | Fifth Amendment | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 850,000,000 | $ 650,000,000 | |||||
Unsecured Debt | Uncommitted Incremental Loan Facility | Fifth Amendment | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 150,000,000 | ||||||
Unsecured Debt | Revolving Credit Facility | The Credit Agreement | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Line of credit, current | $ 0 | $ 0 | |||||
Unsecured Debt | Revolving Credit Facility | The Credit Agreement | Minimum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Commitment fees percentage | 0.09% | ||||||
Unsecured Debt | Revolving Credit Facility | The Credit Agreement | Maximum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Commitment fees percentage | 0.15% | ||||||
Foreign Line of Credit | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 33,000,000 | ¥ 220 | |||||
Line of credit, current | $ 18,100,000 | ||||||
Debt instrument, term | 12 years | ||||||
Prime Rate | Foreign Line of Credit | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Borrowings, interest rate | 0.74% | ||||||
Debt instrument, term | 5 years | ||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Unsecured Debt | Revolving Credit Facility | The Credit Agreement | Minimum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Borrowings, interest rate | 0.785% | ||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Unsecured Debt | Revolving Credit Facility | The Credit Agreement | Maximum | |||||||
Financial Assets And Liabilities [Line Items] | |||||||
Borrowings, interest rate | 0.975% |
Financial Assets and Liabilit_5
Financial Assets and Liabilities - Schedule of Maturity for Short-Term Available for Sale Securities (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Amortized Cost | ||
Less than 1 year | $ 74,398 | |
1-5 years | 74,604 | |
5-10 years | 1,723 | |
>10 years | 2,000 | |
Total | 152,725 | $ 150,511 |
Fair Value | ||
Less than 1 year | 73,879 | |
1-5 years | 74,104 | |
5-10 years | 1,721 | |
>10 years | 1,935 | |
Total | $ 151,639 | $ 147,913 |
Financial Assets and Liabilit_6
Financial Assets and Liabilities - Schedule of Cash, Cash Equivalents And Restricted Cash (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Financial Assets And Liabilities [Abstract] | ||||
Cash and cash equivalents | $ 1,438,913 | $ 1,417,608 | ||
Restricted cash included in prepaid and other current assets | 1,549 | 1,566 | ||
Restricted cash included in other long-term assets | 725 | 690 | ||
Cash, Cash Equivalents, and Restricted Cash | $ 1,441,187 | $ 1,419,864 | $ 1,435,183 | $ 1,237,970 |
Financial Assets and Liabilit_7
Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Financial Assets And Liabilities [Abstract] | |||
Gains (losses) recorded in other income (expense), net | $ (5,899) | $ (15,851) | $ (855) |
Financial Assets and Liabilit_8
Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Financial Assets And Liabilities [Abstract] | ||
Total gross notional amounts | $ 1,666,758 | $ 1,386,140 |
Net fair value | $ (2,308) | $ (50,080) |
Financial Assets and Liabilit_9
Financial Assets and Liabilities - Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Fair values of derivative instruments designated as hedging instruments | Other current assets | ||
Financial Assets And Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | $ 12,962 | $ 2,315 |
Fair values of derivative instruments designated as hedging instruments | Accrued liabilities | ||
Financial Assets And Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | 14,665 | 52,171 |
Fair values of derivative instruments not designated as hedging instruments | Other current assets | ||
Financial Assets And Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | 491 | 223 |
Fair values of derivative instruments not designated as hedging instruments | Accrued liabilities | ||
Financial Assets And Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | $ 1,096 | $ 447 |
Financial Assets and Liabili_10
Financial Assets and Liabilities - Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) - Foreign Exchange Contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Financial Assets And Liabilities [Line Items] | |||
Amount of gains (losses) recognized in OCI on derivatives (effective portion) | $ 24,986 | $ (79,069) | $ 9,860 |
Amount of gains (losses) reclassified from OCI (effective portion) | (25,276) | (4,894) | 14,559 |
Revenue | |||
Financial Assets And Liabilities [Line Items] | |||
Amount of gains (losses) recognized in OCI on derivatives (effective portion) | 8,390 | (19,755) | 1,148 |
Amount of gains (losses) reclassified from OCI (effective portion) | (9,942) | 10,975 | 4,181 |
Operating expenses | |||
Financial Assets And Liabilities [Line Items] | |||
Amount of gains (losses) recognized in OCI on derivatives (effective portion) | 16,596 | (59,314) | 8,712 |
Amount of gains (losses) reclassified from OCI (effective portion) | $ (15,334) | $ (15,869) | $ 10,378 |
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 | Oct. 31, 2023 | Oct. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 478,946 | $ 507,230 |
Total liabilities | 316,492 | 331,714 |
Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 300,731 | 279,096 |
Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 13,453 | 2,538 |
Accounts payable and accrued liabilities | 15,761 | 52,618 |
Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 300,731 | 279,096 |
Money market funds | Cash equivalents: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 10,129 | 77,683 |
U.S. Treasury, agency & T-bills | Cash equivalents: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,994 | |
U.S. Treasury, agency & T-bills | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 15,689 | 25,603 |
Municipal bonds | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 499 | 2,878 |
Corporate debt securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 102,375 | 94,024 |
Asset-backed securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 33,076 | 25,408 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 310,860 | 356,779 |
Total liabilities | 300,731 | 279,096 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 300,731 | 279,096 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 300,731 | 279,096 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | Cash equivalents: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 10,129 | 77,683 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury, agency & T-bills | Cash equivalents: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury, agency & T-bills | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 168,086 | 150,451 |
Total liabilities | 15,761 | 52,618 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 13,453 | 2,538 |
Accounts payable and accrued liabilities | 15,761 | 52,618 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | Cash equivalents: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury, agency & T-bills | Cash equivalents: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,994 | |
Significant Other Observable Inputs (Level 2) | U.S. Treasury, agency & T-bills | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 15,689 | 25,603 |
Significant Other Observable Inputs (Level 2) | Municipal bonds | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 499 | 2,878 |
Significant Other Observable Inputs (Level 2) | Corporate debt securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 102,375 | 94,024 |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 33,076 | 25,408 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | Cash equivalents: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. Treasury, agency & T-bills | Cash equivalents: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Significant Unobservable Inputs (Level 3) | U.S. Treasury, agency & T-bills | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal bonds | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate debt securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Asset-backed securities | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | $ 0 | $ 0 |
Leases - Components of Leases E
Leases - Components of Leases Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 96,083 | $ 91,972 |
Variable lease expense | 20,789 | 11,649 |
Total lease expense | $ 116,872 | $ 103,621 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 88,983 | $ 83,858 |
ROU assets obtained in exchange for operating lease liabilities | $ 101,390 | $ 168,095 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate Information (Details) | Oct. 31, 2023 | Oct. 31, 2022 |
Leases [Abstract] | ||
Weighted Average remaining lease term (in years) | 8 years 4 months 2 days | 9 years 1 month 28 days |
Weighted Average discount rate | 2.50% | 2.19% |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Details) $ in Thousands | Oct. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 102,297 |
2025 | 102,849 |
2026 | 92,687 |
2027 | 91,038 |
2028 | 77,010 |
2029 and thereafter | 282,186 |
Total future minimum lease payments | 748,067 |
Less: Imputed interest | 78,342 |
Total lease liabilities | $ 669,725 |
Leases - Non-cancellable Operat
Leases - Non-cancellable Operating Leases (Details) $ in Thousands | Oct. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 24,698 |
2025 | 25,351 |
2026 | 26,230 |
2027 | 27,376 |
2028 | 27,557 |
2029 and thereafter | 56,491 |
Total | $ 187,703 |
Leases (Details)
Leases (Details) | Oct. 31, 2023 |
Leases [Abstract] | |
Lessee, operating lease, renewal term (up to) | 10 years |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) | Jun. 29, 2018 USD ($) |
Loss Contingencies [Line Items] | |
Payments for legal settlements | $ 65,000,000 |
Patent cross-license | 7 years |
Minimum | |
Loss Contingencies [Line Items] | |
Potential one-time termination charge | $ 0 |
Maximum | |
Loss Contingencies [Line Items] | |
Potential one-time termination charge | $ 25,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (196,414) | $ (234,277) |
Cumulative currency translation adjustments | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | (170,104) | (156,192) |
Unrealized gains (losses) on derivative instruments, net of taxes | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | (25,224) | (75,486) |
Unrealized gains (losses) on available-for-sale securities, net of taxes | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (1,086) | $ (2,599) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | |||
Total revenue | $ 5,842,619 | $ 5,081,542 | $ 4,204,193 |
Operating expenses | (3,351,167) | (2,855,807) | (2,607,626) |
Net income | 1,229,888 | 984,594 | 757,516 |
Amount of gains (losses) reclassified from OCI (effective portion) | Unrealized gains (losses) on derivative instruments, net of taxes | |||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | |||
Total revenue | (9,942) | 10,975 | 4,181 |
Operating expenses | (15,334) | (15,869) | 10,378 |
Net income | $ (25,276) | $ (4,894) | $ 14,559 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 4 Months Ended | 12 Months Ended | |||
Nov. 30, 2023 | Aug. 31, 2023 | Nov. 30, 2023 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program authorized amount | $ 1,500,000,000 | |||||
Remaining amount available for further repurchases | $ 194,300,000 | |||||
Purchases of treasury stock (in shares) | 2,992 | 3,609 | 2,780 | |||
Average purchase price (in USD per share) | $ 387.92 | $ 314.51 | $ 270.84 | |||
Accelerated Share Repurchase Program August 2023 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program authorized amount | $ 300,000,000 | |||||
Prepayment during period | 300,000,000 | |||||
Initial share delivery, amount | $ 255,000,000 | |||||
Accelerated Share Repurchase Program August 2023 | Subsequent Event | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Prepayment during prior period, derivative settlement | $ 45,000,000 | |||||
Purchases of treasury stock (in shares) | 600 | |||||
Average purchase price (in USD per share) | $ 466.71 |
Stock Repurchase Program - Stoc
Stock Repurchase Program - Stock Repurchase Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2023 | Nov. 30, 2021 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Stock Repurchase Program | |||||
Shares repurchased (in shares) | 2,992,000 | 3,609,000 | 2,780,000 | ||
Average purchase price per share (in USD per share) | $ 387.92 | $ 314.51 | $ 270.84 | ||
Aggregate purchase price | $ 1,160,724 | $ 1,135,000 | $ 753,081 | ||
Reissuance of treasury stock (in shares) | 2,670,000 | 2,922,000 | 3,224,000 | ||
Share repurchases settlement of equity forward (in shares) | 107,701 | ||||
Stock repurchase program, prepayment during period, derivative settlement | $ 35,000 | ||||
Subsequent Event | |||||
Stock Repurchase Program | |||||
Share repurchases settlement of equity forward (in shares) | 73,903 | ||||
Stock repurchase program, prepayment during period, derivative settlement | $ 45,000 |
Employee Benefit Plans (Employe
Employee Benefit Plans (Employee Stock Purchase Plan) - Additional Information (Detail) - $ / shares shares in Millions | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Apr. 12, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Threshold for employee stock purchases under ESPP, maximum value | 85% | |||
ESPP offering period (in years) | 2 years | |||
Increase in number of shares authorized for issuance under plan (in shares) | 2 | |||
Shares issued (in shares) | 0.6 | 0.7 | 1 | |
Weighted average purchase price of stock purchased (in USD per share) | $ 266.82 | $ 195.48 | $ 134.26 | |
Shares reserved for future issuance under the ESPP (in shares) | 13.5 |
Employee Benefit Plans (Equity
Employee Benefit Plans (Equity Compensation Plans) - Additional Information (Detail) | 12 Months Ended | |||||
Apr. 12, 2023 shares | Oct. 31, 2023 shares | Oct. 31, 2022 shares | Oct. 31, 2021 shares | Oct. 31, 2020 shares | Apr. 06, 2017 shares | |
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate restricted stock units outstanding (in shares) | 4,517,000 | 4,638,000 | 4,187,000 | 4,130,000 | ||
Restricted Stock Units (RSUs), Market-based | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, (in years) | 2 years | |||||
Restricted Stock Units (RSUs), Market-based | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, (in years) | 3 years | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate restricted stock units outstanding (in shares) | 5,000 | 5,000 | 5,000 | 9,000 | ||
2006 Employee Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, (in years) | 4 years | |||||
Share reserve ratio | 1.70 | |||||
Share based compensation arrangement for options contractual term (in years) | 7 years | |||||
Additional reserved for future issuance under the 2006 Employee Plan (in shares) | 3,300,000 | |||||
Shares available for future grant (in shares) | 13,286,000 | 13,111,000 | 13,751,000 | 12,129,000 | ||
2006 Employee Equity Incentive Plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate restricted stock units outstanding (in shares) | 4,500,000 | |||||
2006 Employee Equity Incentive Plan | Restricted Stock Units (RSUs) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, (in years) | 3 years | |||||
2006 Employee Equity Incentive Plan | Restricted Stock Units (RSUs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, (in years) | 4 years | |||||
2006 Employee Equity Incentive Plan | Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate stock options outstanding (in shares) | 1,500,000 | |||||
2005 Non Employee Directors Plan | Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate stock options outstanding (in shares) | 7,500 | |||||
2005 Non Employee Directors Plan | Stock Option | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, (in years) | 3 years | |||||
2005 Non Employee Directors Plan | Stock Option | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, (in years) | 4 years | |||||
2017 Directors Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Reserved for future issuance (in shares) | 368,407 | 450,000 | ||||
2017 Directors Plan | Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate stock options outstanding (in shares) | 12,792 | |||||
2017 Directors Plan | Stock Option | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, (in years) | 3 years | |||||
2017 Directors Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate restricted stock units outstanding (in shares) | 4,806 | |||||
Other Assumed Stock Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Assumed shares remaining outstanding (in shares) | 31,000 |
Employee Benefit Plans (Restric
Employee Benefit Plans (Restricted Stock Units) - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Oct. 31, 2023 USD ($) $ / shares | |
Schedule Of Restricted Stock [Line Items] | |
Closing stock price (in USD per share) | $ / shares | $ 457 |
Unamortized share-based compensation expense | $ 1,200 |
Weighted-average period of total compensation costs to be recognized over a period in years | 1 year 8 months 12 days |
Employee Stock Purchase Plan | |
Schedule Of Restricted Stock [Line Items] | |
Unamortized share-based compensation expense | $ 42.3 |
Weighted-average period of total compensation costs to be recognized over a period in years | 2 years |
Employee Benefit Plans - Restri
Employee Benefit Plans - Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 4,638 | 4,187 | 4,130 | |
Granted (in shares) | 2,083 | 2,402 | 1,901 | |
Vested (in shares) | (1,839) | (1,589) | (1,565) | |
Forfeited (in shares) | (365) | (362) | (279) | |
Ending balance (in shares) | 4,517 | 4,638 | 4,187 | 4,130 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Grant Date Fair Value, Beginning balance (in USD per share) | $ 265.76 | $ 193.58 | $ 134.80 | |
Granted (in USD per share) | 394.34 | 323.46 | 258.58 | |
Vested (in USD per share) | 237.19 | 170.36 | 122.01 | |
Forfeited (in USD per share) | 283.29 | 228.70 | 167.76 | |
Weighted Average Grant Date Fair Value, Ending balance (in USD per share) | $ 335.26 | $ 265.76 | $ 193.58 | $ 134.80 |
Weighted Average Remaining Contractual Life (In Years) | 1 year 4 months 28 days | 1 year 3 months 25 days | 1 year 4 months 20 days | 1 year 5 months 19 days |
Aggregate Fair Value | $ 706,136 | $ 529,766 | $ 421,034 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Options (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Weighted- Average Exercise Price per Share, Options exercised (in USD per share) | $ 109.83 | $ 86.24 | $ 66.50 | |
Stock Option | All Stock Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, beginning balance (in shares) | 2,160 | 3,107 | 3,993 | |
Options Outstanding, Options granted (in shares) | 294 | 293 | 353 | |
Options Outstanding, Options exercised (in shares) | (849) | (1,126) | (1,203) | |
Options Outstanding, Options canceled/forfeited/expired (in shares) | (90) | (114) | (36) | |
Options outstanding, ending balance (in shares) | 1,515 | 2,160 | 3,107 | 3,993 |
Options outstanding, vested and expected to vest (in shares) | 1,515 | |||
Options Outstanding, Exercisable (in shares) | 972 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Weighted- Average Exercise Price per Share, Beginning balance (in USD per share) | $ 150.37 | $ 109.51 | $ 85.26 | |
Weighted- Average Exercise Price per Share, Options granted (in USD per share) | 361.64 | 342.86 | 239.46 | |
Weighted- Average Exercise Price per Share, Options exercised (in USD per share) | 109.83 | 86.24 | 66.50 | |
Weighted- Average Exercise Price per Share, Options canceled/forfeited/expired (in USD per share) | 245.86 | 164.46 | 128.49 | |
Weighted- Average Exercise Price per Share, Ending balance (in USD per share) | 208.49 | $ 150.37 | $ 109.51 | $ 85.26 |
Weighted- Average Exercise Price per Share, Vested and expected to vest (in USD per share) | 208.49 | |||
Weighted- Average Exercise Price per Share, Exercisable (in USD per share) | $ 142.41 | |||
Weighted Average Remaining Contractual Life, options outstanding | 3 years 8 months 12 days | 3 years 6 months 25 days | 3 years 9 months 21 days | 4 years 1 month 6 days |
Weighted Average Remaining Contractual Life, options outstanding, vested and expected to vest | 3 years 8 months 12 days | |||
Weighted-Average Remaining Contractual Life , Exercisable | 2 years 8 months 1 day | |||
Aggregate Intrinsic Value, Beginning balance | $ 328,120 | $ 694,921 | $ 513,845 | |
Aggregate Intrinsic Value, ending Balance | 376,563 | $ 328,120 | $ 694,921 | $ 513,845 |
Aggregate Intrinsic Value, vested and expected to vest | 376,563 | |||
Aggregate Intrinsic Value, Exercisable | $ 305,738 |
Employee Benefit Plans - Pretax
Employee Benefit Plans - Pretax Intrinsic Value of Options Exercised and Their Average Exercise Prices (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Intrinsic value | $ 241,385 | $ 273,524 | $ 254,587 |
Average exercise price per share (in USD per share) | $ 109.83 | $ 86.24 | $ 66.50 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Options and Restricted Stock Units Under all Equity Plans (Except 2005 Director's Plan) (Detail) - 2006 Employee Equity Incentive Plan shares in Thousands | 12 Months Ended | ||
Oct. 31, 2023 shares | Oct. 31, 2022 shares | Oct. 31, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Available for grant, beginning balance (in shares) | 13,111 | 13,751 | 12,129 |
Available for Grant, Additional shares reserved (in shares) | 3,300 | 3,000 | 4,700 |
Available for grants, ending balance (in shares) | 13,286 | 13,111 | 13,751 |
Share reserve ratio | 1.70 | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Available for Grant, Options granted (in shares) | (294) | (286) | (353) |
Available for Grant, Options canceled/forfeited/expired (in shares) | 89 | 114 | 36 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Available for Grant, Restricted stock units granted (in shares) | (3,540) | (4,083) | (3,232) |
Available for Grant, Restricted stock units forfeited (in shares) | 620 | 615 | 471 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Restricted Stock Award Activities Under Twenty Zero Five Directors Plan (Detail) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Restricted shares | |||
Beginning balance (in shares) | 5 | 5 | 9 |
Granted (in shares) | 5 | 5 | 5 |
Vested (in shares) | (5) | (5) | (9) |
Forfeited (in shares) | 0 | 0 | 0 |
Ending balance (in shares) | 5 | 5 | 5 |
Weighted Average Grant Date Fair Value | |||
Weighted Average Grant Date Fair Value, Beginning balance (in USD per share) | $ 310.02 | $ 261.01 | $ 140.97 |
Granted (in USD per share) | 387.79 | 310.02 | 261.01 |
Vested (in USD per share) | 310.02 | 261.01 | 140.97 |
Forfeited (in USD per share) | 0 | 0 | 0 |
Weighted Average Grant Date Fair Value, Ending balance (in USD per share) | $ 387.79 | $ 310.02 | $ 261.01 |
Employee Benefit Plans - Valuat
Employee Benefit Plans - Valuation and Expense of Stock-Based Compensation (Details) | 12 Months Ended |
Oct. 31, 2023 | |
Restricted Stock Units (RSUs), Market-based | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum potential awards (as a percent) | 187.50% |
Employee Benefit Plans - Stoc_3
Employee Benefit Plans - Stock Option Plans and Stock Purchase Rights Granted Under ESPP (Detail) - $ / shares | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Stock Option | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Expected life (in years) | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 1 month 6 days |
Risk-free interest rate, minimum | 3.80% | 1.07% | 0.35% |
Risk-free interest rate, maximum | 4.80% | 4.42% | 1% |
Volatility, minimum | 32.74% | 32.28% | 29.19% |
Volatility, maximum | 36.16% | 37.04% | 32.28% |
Weighted average estimated fair value (in USD per share) | $ 120.33 | $ 98.07 | $ 61.58 |
Employee Stock Purchase Plan | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Risk-free interest rate, minimum | 4.85% | 0.67% | 0% |
Risk-free interest rate, maximum | 5.38% | 3.44% | 0.19% |
Volatility, minimum | 28.03% | 34.51% | 28.02% |
Volatility, maximum | 35.27% | 38.69% | 39.68% |
Weighted average estimated fair value (in USD per share) | $ 120.82 | $ 102.63 | $ 89.82 |
Employee Stock Purchase Plan | Minimum | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Expected life (in years) | 6 months | 6 months | 6 months |
Employee Stock Purchase Plan | Maximum | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Expected life (in years) | 2 years | 2 years | 2 years |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Share-Based Payment Award, Restricted Stock Units, Valuation Assumptions (Details) - Restricted Stock Units (RSUs), Market-based - $ / shares | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Minimum | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Expected life (in years) | 10 months 24 days | 1 year 1 month 28 days |
Risk-free interest rate | 4.36% | 1.33% |
Volatility | 34.79% | 33.01% |
Granted (in USD per share) | $ 357.29 | $ 280.52 |
Maximum | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Expected life (in years) | 2 years 8 months 12 days | 1 year 8 months 8 days |
Risk-free interest rate | 4.80% | 3.46% |
Volatility | 42.86% | 37.80% |
Granted (in USD per share) | $ 465.79 | $ 412.2 |
Employee Benefit Plans - Stoc_4
Employee Benefit Plans - Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | $ 563,292 | $ 459,029 | $ 345,272 |
Income tax benefit | (90,915) | (74,271) | (53,483) |
Stock compensation expense after taxes | 472,377 | 384,758 | 291,789 |
Cost of products | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | 65,221 | 55,134 | 38,345 |
Cost of maintenance and service | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | 29,572 | 24,146 | 13,817 |
Research and development expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | 294,154 | 241,978 | 171,013 |
Sales and marketing expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | 106,574 | 81,617 | 61,940 |
General and administrative expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock compensation expense before taxes | $ 67,771 | $ 56,154 | $ 60,157 |
Employee Benefit Plans - Deferr
Employee Benefit Plans - Deferred Plan Assets and Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Share-Based Payment Arrangement [Abstract] | ||
Plan assets recorded in other long-term assets | $ 300,731 | $ 279,096 |
Plan liabilities recorded in other long-term liabilities | $ 300,731 | $ 279,096 |
Employee Benefit Plans - (Other
Employee Benefit Plans - (Other Retirement Plans) - Additional Information (Detail) | 12 Months Ended | |||
Oct. 31, 2023 USD ($) | Oct. 31, 2023 CAD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Other Retirement Plans [Line Items] | ||||
Deferred percentage of annual cash base compensation | 50% | 50% | ||
Deferred percentage of variable cash compensation | 100% | 100% | ||
Other Retirement Plans, Defined, Contribution Plan | ||||
Other Retirement Plans [Line Items] | ||||
Employer contribution | $ 59,200,000 | $ 51,200,000 | $ 49,400,000 | |
Maximum pretax annual company contribution match per employee | $ 3,000 | $ 4,000 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Impact of Deferred Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Increase (reduction) to cost of revenue and operating expense | $ 20,488 | $ (68,778) | $ 71,603 |
Other income (expense), net | 20,488 | (68,778) | 71,603 |
Net increase (decrease) to net income | $ 0 | $ 0 | $ 0 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income attributed to Synopsys | $ 1,229,888 | $ 984,594 | $ 757,516 |
Weighted average common shares for basic net income per share (in shares) | 152,146 | 153,002 | 152,698 |
Dilutive effect of common share equivalents from equity-based compensation (in shares) | 3,049 | 3,483 | 4,642 |
Weighted average common shares for diluted net income per share (in shares) | 155,195 | 156,485 | 157,340 |
Basic (in USD per share) | $ 8.08 | $ 6.44 | $ 4.96 |
Diluted (in USD per share) | $ 7.92 | $ 6.29 | $ 4.81 |
Anti-dilutive employee stock-based awards excluded (in shares) | 475 | 281 | 408 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Total Income Before Provision for Income Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,142,132 | $ 1,036,279 | $ 640,531 |
Foreign | 159,650 | 79,235 | 164,983 |
Income before income taxes | $ 1,301,782 | $ 1,115,514 | $ 805,514 |
Income Taxes - Components of (B
Income Taxes - Components of (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 244,523 | $ 105,493 | $ 85,950 |
State | 22,193 | 23,201 | 11,898 |
Foreign | 27,986 | 45,297 | 79,890 |
Current income tax expense (benefit), total | 294,702 | 173,991 | 177,738 |
Federal | (192,762) | (42,086) | (108,530) |
State | (1,842) | 1,519 | 1,796 |
Foreign | (16,441) | 3,654 | (21,849) |
Deferred income tax expense (benefit), total | (211,045) | (36,913) | (128,583) |
Provision (benefit) for income taxes | $ 83,657 | $ 137,078 | $ 49,155 |
Income Taxes - Rate Reconciliat
Income Taxes - Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax | $ 273,374 | $ 234,257 | $ 168,745 |
State tax (benefit), net of federal effect | 617 | (2,514) | (2,419) |
Federal tax credits | (65,878) | (61,582) | (45,503) |
Tax (benefit) on foreign earnings | (12,454) | 25,930 | 7,988 |
Foreign-derived intangible income deduction | (82,436) | (38,924) | (31,214) |
Tax settlements | (23,752) | 0 | (7,134) |
Stock-based compensation | (43,153) | (52,625) | (62,620) |
Changes in valuation allowance | 29,631 | 19,794 | 15,232 |
Other | 7,708 | 12,742 | 6,080 |
Provision (benefit) for income taxes | $ 83,657 | $ 137,078 | $ 49,155 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Deferred tax assets: | ||
Deferred revenue | $ 37,641 | $ 41,941 |
Deferred compensation | 69,824 | 67,782 |
Intangible and depreciable assets | 94,564 | 119,791 |
Capitalized research and development costs | 592,536 | 231,733 |
Stock-based compensation | 65,039 | 60,537 |
Tax loss carryovers | 62,779 | 59,754 |
Foreign tax credit carryovers | 41,972 | 27,153 |
Research and other tax credit carryovers | 182,999 | 316,650 |
Operating Lease Liabilities | 118,679 | 119,575 |
Accruals and reserves | 27,636 | 0 |
Other | 0 | 16,887 |
Gross deferred tax assets | 1,293,669 | 1,061,803 |
Valuation allowance | (229,259) | (198,213) |
Total deferred tax assets | 1,064,410 | 863,590 |
Deferred tax liabilities: | ||
Intangible assets | 116,465 | 102,796 |
Operating lease Right-of-Use-Assets | 94,068 | 96,598 |
Accruals and reserves | 0 | 5,998 |
Undistributed earnings of foreign subsidiaries | 8,900 | 1,000 |
Other | 18,006 | 0 |
Total deferred tax liabilities | 237,439 | 206,392 |
Net deferred tax assets | $ 826,971 | $ 657,198 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2023 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2019 | Oct. 31, 2017 | May 17, 2023 | |
Taxes [Line Items] | |||||||
Increase in valuation allowance | $ 31,000 | ||||||
Decrease in gross unrecognized tax benefits | 6,800 | ||||||
Gross unrecognized tax benefits | 74,359 | $ 81,183 | $ 82,360 | ||||
Unrecognized tax benefits affecting effective tax rate | 74,400 | 81,200 | |||||
Interest and penalties expense (benefit) | (10,600) | 800 | 400 | ||||
The amount of estimated penalties and interest accrued as of the balance sheet date arising from income tax examinations | 2,100 | 12,700 | |||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 0 | $ 1,104 | |||||
Internal Revenue Service (IRS) | Fiscal Year 2020 | |||||||
Taxes [Line Items] | |||||||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | $ 7,100 | ||||||
Foreign Tax Authority | Subsidiaries | Hungarian Tax Authority | Tax Year 2011 Through Tax Year 2013 | |||||||
Taxes [Line Items] | |||||||
Interest and penalties expense (benefit) | $ 11,000 | ||||||
Aggregate tax assessment (refund) | $ 25,000 | $ (39,100) | |||||
Proposed tax assessment | $ 17,400 | ||||||
Effective Income Tax Rate Reconciliation, Tax Settlement and Tax Credit, Foreign, Amount | $ 23,800 | ||||||
Minimum | |||||||
Taxes [Line Items] | |||||||
Estimated potential decrease in underlying unrecognized tax benefits, minimum | 0 | ||||||
Maximum | |||||||
Taxes [Line Items] | |||||||
Estimated potential decrease in underlying unrecognized tax benefits, minimum | $ 10,000 |
Income Taxes - Tax Loss and Cre
Income Taxes - Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities (Detail) $ in Thousands | Oct. 31, 2023 USD ($) |
Federal | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Net operating loss carryforward | $ 156,991 |
Credit carryforward | 14,705 |
Federal foreign tax credit carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Credit carryforward | 27,522 |
International foreign tax credit carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Net operating loss carryforward | 48,823 |
Credit carryforward | 10,929 |
California research credit carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Credit carryforward | 243,960 |
Other state research credit carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Credit carryforward | 25,176 |
State net operating loss carryforward | |
Net Operating Loss and Tax Credit Carryforward [Line Items] | |
Net operating loss carryforward | $ 236,391 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Beginning balance | $ 81,183 | $ 82,360 |
Increases in unrecognized tax benefits related to prior year tax positions | 211 | 435 |
Decreases in unrecognized tax benefits related to prior year tax positions | (25,678) | (9,791) |
Increases in unrecognized tax benefits related to current year tax positions | 8,223 | 6,794 |
Decreases in unrecognized tax benefits related to settlements with taxing authorities | 0 | (1,104) |
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations | (249) | (2,601) |
Increases in unrecognized tax benefits acquired | 165 | 14,121 |
Changes in unrecognized tax benefits due to foreign currency translation | 10,504 | (9,031) |
Ending Balance | $ 74,359 | $ 81,183 |
Other Income (Expense), Net - C
Other Income (Expense), Net - Components of Other Income (expense), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 36,674 | $ 8,545 | $ 2,442 |
Interest expense | (1,178) | (1,698) | (3,365) |
Gains (losses) on assets related to deferred compensation plan | 20,488 | (68,778) | 71,603 |
Foreign currency exchange gains (losses) | (1,529) | 4,694 | 5,292 |
Other, net | (21,932) | 10,713 | (5,248) |
Total | $ 32,523 | $ (46,524) | $ 70,724 |
Segment Disclosure - Additional
Segment Disclosure - Additional information (Detail) - segment | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 3 | 3 | 2 | |
Customer Concentration Risk | Revenues | Customer One | ||||
Segment Reporting Information [Line Items] | ||||
Percentage contributed by major customers | 12.40% | 11.70% | 10.60% | |
Customer Concentration Risk | Accounts Receivable | Customer One | ||||
Segment Reporting Information [Line Items] | ||||
Percentage contributed by major customers | 10.90% |
Segment Disclosure - Reportable
Segment Disclosure - Reportable Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,842,619 | $ 5,081,542 | $ 4,204,193 |
Adjusted operating income | 1,269,259 | 1,162,038 | 734,790 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,842,619 | 5,081,542 | 4,204,193 |
Adjusted operating income | $ 2,048,045 | $ 1,675,102 | $ 1,281,389 |
Adjusted operating margin | 35% | 33% | 30% |
Operating Segments | Design Automation | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 3,775,287 | $ 3,300,173 | $ 2,754,737 |
Adjusted operating income | $ 1,439,666 | $ 1,206,561 | $ 924,605 |
Adjusted operating margin | 38% | 37% | 34% |
Operating Segments | Design IP | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,542,726 | $ 1,315,541 | $ 1,055,672 |
Adjusted operating income | $ 532,055 | $ 421,547 | $ 318,473 |
Adjusted operating margin | 34% | 32% | 30% |
Operating Segments | Software Integrity | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 524,606 | $ 465,828 | $ 393,784 |
Adjusted operating income | $ 76,324 | $ 46,994 | $ 38,311 |
Adjusted operating margin | 15% | 10% | 10% |
Segment Disclosure - Reportab_2
Segment Disclosure - Reportable Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 1,269,259 | $ 1,162,038 | $ 734,790 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 2,048,045 | 1,675,102 | 1,281,389 |
Segment Reconciling Items | Amortization of intangible assets | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (102,889) | (96,690) | (82,380) |
Segment Reconciling Items | Stock-based compensation expense | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (563,292) | (459,029) | (345,272) |
Segment Reconciling Items | Deferred compensation plan | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (20,488) | 68,778 | (71,603) |
Segment Reconciling Items | Restructuring charges | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (77,002) | (12,057) | (33,405) |
Segment Reconciling Items | Other | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ (15,115) | $ (14,066) | $ (13,939) |
Segment Disclosure - Revenues R
Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Schedule of Revenues from External Customers [Line Items] | |||
Total revenue | $ 5,842,619 | $ 5,081,542 | $ 4,204,193 |
United States | |||
Schedule of Revenues from External Customers [Line Items] | |||
Total revenue | 2,786,064 | 2,349,766 | 1,951,964 |
Europe | |||
Schedule of Revenues from External Customers [Line Items] | |||
Total revenue | 595,634 | 493,430 | 440,825 |
China | |||
Schedule of Revenues from External Customers [Line Items] | |||
Total revenue | 886,256 | 795,405 | 562,711 |
Korea | |||
Schedule of Revenues from External Customers [Line Items] | |||
Total revenue | 634,802 | 531,542 | 427,471 |
Other | |||
Schedule of Revenues from External Customers [Line Items] | |||
Total revenue | $ 939,863 | $ 911,399 | $ 821,222 |
Segment Disclosure - Property a
Segment Disclosure - Property and Equipment By Geographic Areas (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Long-Lived Assets by Geographical Areas [Line Items] | ||
Property and equipment, net | $ 557,261 | $ 483,300 |
United States | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Property and equipment, net | 338,260 | 297,780 |
Non-US | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Property and equipment, net | $ 219,001 | $ 185,520 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 77,002 | $ 12,057 | $ 33,405 |
2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, cost incurred to date | 77,000 | ||
Payments for restructuring charges | 68,300 | ||
Restructuring reserve, current | 4,200 | ||
Restructuring reserve, noncurrent | $ 4,500 | ||
2021 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for restructuring charges | 26,300 | 19,200 | |
Restructuring reserve, current | 14,200 | ||
Restructuring charges | 12,100 | $ 33,400 | |
Restructuring reserve | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - Forecast $ in Millions | 3 Months Ended |
Jan. 31, 2024 USD ($) | |
Minimum | |
Subsequent Event [Line Items] | |
Gain on sale of equity investment | $ 50 |
Maximum | |
Subsequent Event [Line Items] | |
Gain on sale of equity investment | $ 60 |