COVER
COVER - shares | 3 Months Ended | |
Jan. 31, 2024 | Feb. 21, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-19807 | |
Entity Registrant Name | SYNOPSYS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-1546236 | |
Entity Address, Address Line One | 675 ALMANOR AVE | |
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 $0.01 per share) | |
Trading Symbol | SNPS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 152,543,690 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000883241 | |
Current Fiscal Year End Date | --10-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,118,944 | $ 1,438,913 |
Short-term investments | 154,490 | 151,639 |
Total cash, cash equivalents and short-term investments | 1,273,434 | 1,590,552 |
Accounts receivable, net | 1,064,135 | 946,967 |
Inventories | 382,727 | 325,590 |
Prepaid and other current assets | 687,632 | 567,515 |
Total current assets | 3,407,928 | 3,430,624 |
Property and equipment, net | 567,038 | 557,261 |
Operating lease right-of-use assets, net | 551,452 | 568,829 |
Goodwill | 4,131,418 | 4,070,336 |
Intangible assets, net | 377,415 | 374,194 |
Deferred income taxes | 954,495 | 860,914 |
Other long-term assets | 568,513 | 470,973 |
Total assets | 10,558,259 | 10,333,131 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 699,474 | 1,123,761 |
Operating lease liabilities | 89,194 | 85,690 |
Deferred revenue | 1,855,839 | 1,776,000 |
Total current liabilities | 2,644,507 | 2,985,451 |
Long-term operating lease liabilities | 563,815 | 584,035 |
Long-term deferred revenue | 189,841 | 175,128 |
Long-term debt | 16,951 | 18,078 |
Other long-term liabilities | 436,528 | 386,138 |
Total liabilities | 3,851,642 | 4,148,830 |
Redeemable non-controlling interest | 31,043 | 31,043 |
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; 152,536 and 152,053 shares outstanding, respectively | 1,525 | 1,521 |
Capital in excess of par value | 1,183,473 | 1,276,152 |
Retained earnings | 7,188,550 | 6,741,699 |
Treasury stock, at cost: 4,725 and 5,207 shares, respectively | (1,539,340) | (1,675,650) |
Accumulated other comprehensive income (loss) | (163,224) | (196,414) |
Total Synopsys stockholders’ equity | 6,670,984 | 6,147,308 |
Non-controlling interest | 4,590 | 5,950 |
Total stockholders’ equity | 6,675,574 | 6,153,258 |
Total liabilities, redeemable non-controlling interest and stockholders’ equity | $ 10,558,259 | $ 10,333,131 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Jan. 31, 2024 | Oct. 31, 2023 |
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) | 152,536,000 | 152,053,000 |
Treasury stock, shares (in shares) | 4,725,000 | 5,207,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Revenue: | ||
Total revenue | $ 1,649,230 | $ 1,361,340 |
Cost of revenue: | ||
Amortization of acquired intangible assets | 20,456 | 18,640 |
Total cost of revenue | 329,175 | 284,354 |
Gross margin | 1,320,055 | 1,076,986 |
Operating expenses: | ||
Research and development | 552,056 | 465,329 |
Sales and marketing | 263,408 | 210,785 |
General and administrative | 138,374 | 97,364 |
Amortization of acquired intangible assets | 6,597 | 6,717 |
Restructuring charges | 0 | 40,859 |
Total operating expenses | 960,435 | 821,054 |
Operating income | 359,620 | 255,932 |
Interest and other income (expense), net | 105,484 | 23,292 |
Income before income taxes | 465,104 | 279,224 |
Provision (benefit) for income taxes | 18,897 | 10,597 |
Net income | 446,207 | 268,627 |
Net income (loss) attributed to non-controlling interest and redeemable non-controlling interest | (2,905) | (2,909) |
Net income attributed to Synopsys | $ 449,112 | $ 271,536 |
Net income per share attributed to Synopsys: | ||
Basic (in USD per share) | $ 2.95 | $ 1.78 |
Diluted (in USD per share) | $ 2.89 | $ 1.75 |
Shares used in computing per share amounts: | ||
Basic (shares) | 152,311 | 152,401 |
Diluted (shares) | 155,334 | 155,076 |
Product | ||
Revenue: | ||
Total revenue | $ 1,352,241 | $ 1,118,971 |
Cost of revenue: | ||
Cost of revenue | 193,638 | 174,367 |
Time-based products | ||
Revenue: | ||
Total revenue | 904,378 | 782,313 |
Upfront products | ||
Revenue: | ||
Total revenue | 447,863 | 336,658 |
Maintenance and service | ||
Revenue: | ||
Total revenue | 296,989 | 242,369 |
Cost of revenue: | ||
Cost of revenue | $ 115,081 | $ 91,347 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 446,207 | $ 268,627 |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | 18,290 | 40,317 |
Change in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented | 1,012 | 1,158 |
Cash flow hedges: | ||
Deferred gains (losses), net of tax $(3,003) and $(14,807), respectively. | 10,610 | 42,112 |
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(1,690) and $(3,099), respectively. | 3,278 | 8,357 |
Other comprehensive income (loss), net of tax effects | 33,190 | 91,944 |
Comprehensive income | 479,397 | 360,571 |
Less: Net income (loss) attributed to non-controlling interest and redeemable non-controlling interest | (2,905) | (2,909) |
Comprehensive income attributed to Synopsys | $ 482,302 | $ 363,480 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Change in unrealized gains (losses) on available-for-sale securities, tax | $ 0 | $ 0 |
Deferred gains (losses), tax | (3,003) | (14,807) |
Reclassification adjustment on deferred (gains) losses included in net income, tax | $ (1,690) | $ (3,099) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Total Synopsys Stockholders’ Equity | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Balance (in shares) at Oct. 31, 2022 | 152,375 | |||||||
Beginning 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 | 271,242 | 271,536 | 271,536 | (294) | ||||
Other comprehensive income (loss), net of tax effects | $ 91,944 | 91,944 | 91,944 | |||||
Purchases of treasury stock (in shares) | (806) | (806) | ||||||
Purchases of treasury stock | $ (260,724) | (260,724) | $ (8) | 8 | (260,724) | |||
Equity forward contract, net | $ (45,000) | (45,000) | (45,000) | |||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 811 | 811 | ||||||
Common stock issued, net of shares withheld for employee taxes | $ (69,513) | (69,513) | $ 8 | (282,020) | 212,499 | |||
Stock-based compensation | 134,227 | 132,786 | 132,786 | 1,441 | ||||
Balance (in shares) at Jan. 31, 2023 | 152,380 | |||||||
Ending balance at Jan. 31, 2023 | $ 5,642,702 | 5,636,754 | $ 1,524 | 1,292,900 | 5,805,843 | (1,321,180) | (142,333) | 5,948 |
Balance (in shares) at Oct. 31, 2023 | 152,053 | 152,053 | ||||||
Beginning 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 448,468 | 449,112 | 449,112 | (644) | ||||
Other comprehensive income (loss), net of tax effects | $ 33,190 | 33,190 | 33,190 | |||||
Purchases of treasury stock (in shares) | (74) | (74) | ||||||
Purchases of treasury stock | $ (45,000) | (45,000) | $ (1) | 1 | (45,000) | |||
Equity forward contract, net | $ 45,000 | 45,000 | 45,000 | |||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 557 | 557 | ||||||
Common stock issued, net of shares withheld for employee taxes | $ (137,201) | (137,201) | $ 5 | (318,516) | 181,310 | |||
Stock-based compensation | 180,652 | 179,338 | 179,338 | 1,314 | ||||
Adjustments to redeemable non-controlling interest | (2,261) | (2,261) | (2,261) | |||||
Recognition of non-controlling interest upon issuance of subsidiary stock | $ (532) | 1,498 | 1,498 | (2,030) | ||||
Balance (in shares) at Jan. 31, 2024 | 152,536 | 152,536 | ||||||
Ending balance at Jan. 31, 2024 | $ 6,675,574 | $ 6,670,984 | $ 1,525 | $ 1,183,473 | $ 7,188,550 | $ (1,539,340) | $ (163,224) | $ 4,590 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 446,207 | $ 268,627 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Amortization and depreciation | 62,888 | 57,294 |
Reduction of operating lease right-of-use assets | 24,376 | 23,903 |
Amortization of capitalized costs to obtain revenue contracts | 18,726 | 18,850 |
Stock-based compensation | 180,652 | 134,227 |
Allowance for credit losses | 6,059 | 3,700 |
Gain on sale of strategic investments | (55,077) | 0 |
Amortization of bridge financing costs | 1,000 | 0 |
Deferred income taxes | (101,332) | (65,495) |
Other non-cash | (786) | 4,535 |
Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities: | ||
Accounts receivable | (119,571) | (237,360) |
Inventories | (60,883) | (8,610) |
Prepaid and other current assets | (96,916) | (355) |
Other long-term assets | (72,096) | (54,196) |
Accounts payable and accrued liabilities | (266,704) | (144,258) |
Operating lease liabilities | (23,569) | (17,629) |
Income taxes | (117,798) | 50,416 |
Deferred revenue | 87,034 | 81,102 |
Net cash provided by (used in) operating activities | (87,790) | 114,751 |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of short-term investments | 24,559 | 30,971 |
Purchases of short-term investments | (25,612) | (28,829) |
Proceeds from sales of strategic investments | 55,696 | 5,735 |
Purchases of strategic investments | (822) | 0 |
Purchases of property and equipment | (40,391) | (43,500) |
Acquisitions, net of cash acquired | (67,827) | 0 |
Capitalization of software development costs | 0 | (624) |
Net cash used in investing activities | (54,397) | (36,247) |
Cash flows from financing activities: | ||
Repayment of debt | (1,303) | (1,294) |
Payment of bridge financing costs | (48,000) | 0 |
Issuances of common stock | 9,483 | 22,338 |
Payments for taxes related to net share settlement of equity awards | (147,330) | (92,095) |
Purchase of equity forward contract | 0 | (45,000) |
Purchases of treasury stock | 0 | (260,724) |
Net cash used in financing activities | (187,150) | (376,775) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 9,320 | 35,675 |
Net change in cash, cash equivalents and restricted cash | (320,017) | (262,596) |
Cash, cash equivalents and restricted cash, beginning of year | 1,441,187 | 1,419,864 |
Cash, cash equivalents and restricted cash, end of period | $ 1,121,170 | $ 1,157,268 |
Description of Business
Description of Business | 3 Months Ended |
Jan. 31, 2024 | |
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 | 3 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | Summary of Significant Accounting Policies and Basis of Presentation We have prepared the accompanying condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Pursuant to these rules and regulations, we have condensed or omitted certain information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The condensed consolidated financial statements are unaudited but, in management’s opinion, we have made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our quarterly results. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended October 31, 2023 as filed with the SEC on December 12, 2023 (our Annual Report). Use of Estimates. To prepare financial statements in conformity with U.S. GAAP, management must make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and could have a material impact on our operating results and financial position. Principles of Consolidation. The condensed consolidated financial statements include our accounts and the accounts of our wholly and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year and Fiscal Quarter End. Our fiscal year 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 2024 is a 53-week year ending on November 2, 2024, which impacts our revenue, expenses and operating results. Fiscal 2023 was a 52-week year and ended on October 28, 2023. Our results of operations for the first quarter of fiscal 2024 and 2023 included 14 weeks and 13 weeks, respectively, and ended on February 3, 2024 and January 28, 2023, respectively. For presentation purposes, the condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. Significant Accounting Policies. There have been no material changes to our significant accounting policies included in our Annual Report . Recently Issued Accounting Pronouncements In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03), which applies to all equity securities measured at fair value that are subject to contractual sale restrictions. This change prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. The standard will become effective for us beginning on November 1, 2024 and will be applied prospectively. Early adoption is permitted. Any future impact from the adoption of this guidance will depend on the facts and circumstances of future transactions. 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 Chief Operating Decision Maker (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 our annual reports beginning in the fiscal year 2025, and interim period reports beginning in the first quarter of the fiscal year 2026 on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. The standard will become effective for us beginning on November 1, 2025 and will be applied on a prospective ba sis, with a retrospective option. Early adoption is permitted. |
Pending Acquisition of Ansys
Pending Acquisition of Ansys | 3 Months Ended |
Jan. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Pending Acquisition of Ansys | Pending Acquisition of Ansys On January 15, 2024, we entered into an Agreement and Plan of Merger (the Merger Agreement) to acquire all of the outstanding shares of ANSYS, Inc. (Ansys), a provider of broad engineering simulation and analysis software and services, in a cash-and-stock transaction (the Ansys Merger) that values Ansys at approximately $35.0 billion, based on the closing price of Synopsys common stock on December 21, 2023. Under the terms of the Merger Agreement, at the effective time of the Ansys Merger (the Effective Time), each share of Ansys common stock issued and outstanding immediately prior to the Effective Time (with certain exceptions set forth in the Merger Agreement) will be converted into the right to receive 0.3450 (the Exchange Ratio) of a share of Synopsys common stock and $197.00 in cash, without interest. The Merger Agreement also provides for Synopsys’ assumption of certain outstanding Ansys options and other unvested Ansys equity awards held by continuing Ansys employees. If the stock consideration to be issued by Synopsys in connection with the Ansys Merger would exceed 19.9999% of the shares of Synopsys common stock issued and outstanding immediately prior to the Effective Time, the Exchange Ratio will be reduced to the minimum extent necessary to ensure that the aggregate number of shares of Synopsys common stock to be issued in connection with the Ansys Merger does not exceed such threshold, and the cash consideration will be correspondingly increased to offset such adjustment. The Ansys Merger, which is anticipated to close in the first half of calendar year 2025, is subject to the satisfaction or waiver of customary closing conditions, including adoption of the Merger Agreement by holders of a majority of the outstanding shares of Ansys common stock, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended, the clearance of the Ansys Merger under certain other antitrust and foreign investment regimes and the effectiveness of a registration statement on Form S-4 to be filed by us. We and Ansys each have termination rights under the Merger Agreement. A fee of $1.5 billion may be payable by us to Ansys, or a fee of $950.0 million may be payable by Ansys to us, upon termination of the Merger Agreement under specified circumstances, each as more fully described in the Merger Agreement. In connection with the execution of the Merger Agreement, we entered into a commitment letter on January 15, 2024 (the Bridge Commitment Letter) with certain financial institutions that committed to provide, subject to the satisfaction of customary closing conditions, a senior unsecured bridge facility (the Bridge Commitment) in an aggregate principal amount of up to $16.0 billion (which we subsequently reduced to $11.7 billion in connection with our entry into the Term Loan Agreement as further described below). On February 13, 2024 , we entered into a term loan facility credit agreement (the Term Loan Agreement), which provides us with the ability to borrow up to $4.3 billion at the closing of the Ansys Merger, subject to the satisfaction of customary closing conditions for similar facilities, for the purpose of financing a portion of the cash consideration to be paid in the Ansys Merger and paying related fees and expenses in connection with the Ansys Merger and the other transactions contemplated by the Merger Agreement. Effective February 13, 2024, we terminated $4.3 billion of the original $16.0 billion of commitments under the Bridge Commitment, in lieu of which we expect to borrow the committed amounts available under the Term Loan Agreement. See Note 10. Bridge Commitment Letter, Term Loan and Revolving Credit Facilities of the Notes to Condensed Consolidated Financial Statements for more information on the Bridge Commitment and the Term Loan Agreement. During the three months ended January 31, 2024, we completed one acquisition for aggregate purchase consideration of $67.8 million, net of cash acquired. The purchase consideration was allocated as follows: $29.4 million to identifiable intangible assets, $48.0 million to goodwill, and $9.6 million to net tangible liabilities. The total purchase consideration is preliminary, and as additional information becomes available, we may further revise it during the remainder of the measurement period, which will not exceed 12 months from the closing of the acquisition. The goodwill recognized from this acquisition was assigned to the Design Automation reporting unit, and was not deductible for income tax purposes. We have included the financial results of this acquisition in our condensed consolidated financial statements from the date of acquisition. These results were not material to our condensed consolidated financial statements. Transaction costs were $31.9 million during the three months ended January 31, 2024 . These costs mainly consisted of professional fees and administrative costs for closed and pending acquisitions and were expensed as incurred in our condensed consolidated statements of income. |
Business Combination
Business Combination | 3 Months Ended |
Jan. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Pending Acquisition of Ansys On January 15, 2024, we entered into an Agreement and Plan of Merger (the Merger Agreement) to acquire all of the outstanding shares of ANSYS, Inc. (Ansys), a provider of broad engineering simulation and analysis software and services, in a cash-and-stock transaction (the Ansys Merger) that values Ansys at approximately $35.0 billion, based on the closing price of Synopsys common stock on December 21, 2023. Under the terms of the Merger Agreement, at the effective time of the Ansys Merger (the Effective Time), each share of Ansys common stock issued and outstanding immediately prior to the Effective Time (with certain exceptions set forth in the Merger Agreement) will be converted into the right to receive 0.3450 (the Exchange Ratio) of a share of Synopsys common stock and $197.00 in cash, without interest. The Merger Agreement also provides for Synopsys’ assumption of certain outstanding Ansys options and other unvested Ansys equity awards held by continuing Ansys employees. If the stock consideration to be issued by Synopsys in connection with the Ansys Merger would exceed 19.9999% of the shares of Synopsys common stock issued and outstanding immediately prior to the Effective Time, the Exchange Ratio will be reduced to the minimum extent necessary to ensure that the aggregate number of shares of Synopsys common stock to be issued in connection with the Ansys Merger does not exceed such threshold, and the cash consideration will be correspondingly increased to offset such adjustment. The Ansys Merger, which is anticipated to close in the first half of calendar year 2025, is subject to the satisfaction or waiver of customary closing conditions, including adoption of the Merger Agreement by holders of a majority of the outstanding shares of Ansys common stock, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended, the clearance of the Ansys Merger under certain other antitrust and foreign investment regimes and the effectiveness of a registration statement on Form S-4 to be filed by us. We and Ansys each have termination rights under the Merger Agreement. A fee of $1.5 billion may be payable by us to Ansys, or a fee of $950.0 million may be payable by Ansys to us, upon termination of the Merger Agreement under specified circumstances, each as more fully described in the Merger Agreement. In connection with the execution of the Merger Agreement, we entered into a commitment letter on January 15, 2024 (the Bridge Commitment Letter) with certain financial institutions that committed to provide, subject to the satisfaction of customary closing conditions, a senior unsecured bridge facility (the Bridge Commitment) in an aggregate principal amount of up to $16.0 billion (which we subsequently reduced to $11.7 billion in connection with our entry into the Term Loan Agreement as further described below). On February 13, 2024 , we entered into a term loan facility credit agreement (the Term Loan Agreement), which provides us with the ability to borrow up to $4.3 billion at the closing of the Ansys Merger, subject to the satisfaction of customary closing conditions for similar facilities, for the purpose of financing a portion of the cash consideration to be paid in the Ansys Merger and paying related fees and expenses in connection with the Ansys Merger and the other transactions contemplated by the Merger Agreement. Effective February 13, 2024, we terminated $4.3 billion of the original $16.0 billion of commitments under the Bridge Commitment, in lieu of which we expect to borrow the committed amounts available under the Term Loan Agreement. See Note 10. Bridge Commitment Letter, Term Loan and Revolving Credit Facilities of the Notes to Condensed Consolidated Financial Statements for more information on the Bridge Commitment and the Term Loan Agreement. During the three months ended January 31, 2024, we completed one acquisition for aggregate purchase consideration of $67.8 million, net of cash acquired. The purchase consideration was allocated as follows: $29.4 million to identifiable intangible assets, $48.0 million to goodwill, and $9.6 million to net tangible liabilities. The total purchase consideration is preliminary, and as additional information becomes available, we may further revise it during the remainder of the measurement period, which will not exceed 12 months from the closing of the acquisition. The goodwill recognized from this acquisition was assigned to the Design Automation reporting unit, and was not deductible for income tax purposes. We have included the financial results of this acquisition in our condensed consolidated financial statements from the date of acquisition. These results were not material to our condensed consolidated financial statements. Transaction costs were $31.9 million during the three months ended January 31, 2024 . These costs mainly consisted of professional fees and administrative costs for closed and pending acquisitions and were expensed as incurred in our condensed consolidated statements of income. |
Revenue
Revenue | 3 Months Ended |
Jan. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue The following table shows the percentage of revenue by product groups: Three Months Ended 2024 2023 EDA 58.9 % 64.3 % Design IP 31.9 % 25.2 % Software Integrity 8.4 % 9.4 % Other 0.8 % 1.1 % Total 100.0 % 100.0 % Contract Balances The contract assets indicated below are presented as prepaid and other current assets in the condensed consolidated balance sheets. The contract assets are transferred to receivables when the rights to invoice and receive payment become unconditional. Unbilled receivables are presented as accounts receivable, net, in the condensed consolidated balance sheets. Contract balances are as follows: As of January 31, 2024 October 31, 2023 (in thousands) Contract assets, net $ 469,002 $ 389,042 Unbilled receivables $ 40,522 $ 60,016 Deferred revenue $ 2,045,680 $ 1,951,128 During the three months ended January 31, 2024, we recognized revenue of $846.7 million that was included in the deferred revenue balance as of October 31, 2023, including previously unfulfilled contracts that have expired and are no longer subject to an implied promise to provide future services. Contracted but unsatisfied or partially unsatisfied performance obligations (backlog) were approximately $8.2 billion as of January 31, 2024, which includes $1.3 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 January 31, 2024, excluding non-cancellable FSA, is expected to be recognized as revenue over the next 12 months, with the remainder recognized thereafter. The majority of the remaining backlog is expected to be recognized in the following three years. During the three months ended January 31, 2024 and 2023, we recognized $25.4 million and $24.7 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods. Costs of Obtaining a Contract with Customer |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jan. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill during the three months ended January 31, 2024 are as follows: (in thousands) Balance at October 31, 2023 $ 4,070,336 Additions 47,994 Adjustments 138 Effect of foreign currency translation 12,950 Balance at January 31, 2024 $ 4,131,418 Intangible Assets Intangible assets as of January 31, 2024 consist of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,158,892 $ 904,829 $ 254,063 Customer relationships 469,340 364,328 105,012 Contract rights intangible 195,879 191,984 3,895 Trademarks and trade names 52,825 38,380 14,445 Total $ 1,876,936 $ 1,499,521 $ 377,415 Intangible assets as of October 31, 2023 consist 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 Amortization expense related to intangible assets consists of the following: Three Months Ended 2024 2023 (in thousands) Core/developed technology $ 19,265 $ 18,269 Customer relationships 5,850 5,824 Contract rights intangible 1,191 371 Trademarks and trade names 747 893 Capitalized software development costs (1) — 559 Total $ 27,053 $ 25,916 (1) Amortization of capitalized software development costs is included in cost of products revenue in the condensed consolidated statements of income. The following table presents the estimated future amortization of acquired intangible assets as of January 31, 2024: Fiscal year (in thousands) Remainder of fiscal 2024 $ 79,696 2025 88,515 2026 75,333 2027 54,888 2028 29,467 2029 and thereafter 49,516 Total $ 377,415 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Jan. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components As of January 31, 2024 October 31, 2023 (in thousands) Other long-term assets: Deferred compensation plan assets $ 349,003 $ 300,731 Capitalized commission, net 88,463 88,614 Other 131,047 81,628 Total $ 568,513 $ 470,973 Accounts payable and accrued liabilities: Payroll and related benefits $ 370,626 $ 583,854 Accrued income taxes 124,287 226,762 Other accrued liabilities 127,753 157,254 Accounts payable 76,808 155,891 Total $ 699,474 $ 1,123,761 Other long-term liabilities: Deferred compensation plan liabilities $ 349,003 $ 300,731 Other 87,525 85,407 Total $ 436,528 $ 386,138 |
Financial Assets and Liabilitie
Financial Assets and Liabilities | 3 Months Ended |
Jan. 31, 2024 | |
Financial Assets And Liabilities [Abstract] | |
Financial Assets and Liabilities | Financial Assets and Liabilities Cash Equivalents and Short-term Investments As of January 31, 2024, 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 $ 44,751 $ — $ — $ — $ 44,751 U.S. Treasury, agency & T-bills 2,886 — — — 2,886 Total: $ 47,637 $ — $ — $ — $ 47,637 Short-term investments: U.S. Treasury, agency & T-bills $ 16,778 $ 6 $ (29) $ — $ 16,755 Municipal bonds 515 — — (9) 506 Corporate debt securities 102,108 208 (81) (173) 102,062 Asset-backed securities 35,163 71 (12) (55) 35,167 Total: $ 154,564 $ 285 $ (122) $ (237) $ 154,490 (1) See Note 9. Fair Value Measurements for further discussion on fair values. The contractual maturities of our available-for-sale debt securities as of January 31, 2024 are as follows: Amortized Cost Fair Value (in thousands) less than 1 year $ 75,193 $ 74,999 1-5 years 75,224 75,359 5-10 years 2,798 2,812 >10 years 1,349 1,320 Total $ 154,564 $ 154,490 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 9. Fair Value Measurements for further discussion on fair values. Restricted cash. We include amounts generally described as restricted cash in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the condensed consolidated statements of cash flows. Restricted cash is primarily associated with office leases and employee loan programs. The following table provides a reconciliation of cash, cash equivalents and restricted cash included in the condensed consolidated balance sheets: As of January 31, 2024 October 31, 2023 (in thousands) Cash and cash equivalents $ 1,118,944 $ 1,438,913 Restricted cash included in prepaid and other current assets 1,490 1,549 Restricted cash included in other long-term assets 736 725 Total cash, cash equivalents and restricted cash $ 1,121,170 $ 1,441,187 Non-marketable equity securities. Our portfolio of non-marketable equity securities consists of strategic investments in privately held companies. In November 2023, we completed the sale of strategic investments in privately-held companies. The gain recognized from the sales was $55.1 million and included in interest and other income (expense), net, in our condensed consolidated statements of income. There were no material impairments of non-marketable equity securities during the three months ended January 31, 2024 and 2023. Derivatives We recognize derivative instruments as either assets or liabilities in the condensed consolidated balance sheets at fair value and provide qualitative and quantitative disclosures about such derivatives. We operate internationally and are exposed to potentially adverse movements in foreign currency exchange rates. We enter into hedges in the form of foreign currency forward contracts to reduce our exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately one month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. The duration of forward contracts, the majority of which are short-term, ranges from approximately 3 months to 27 months at inception. We do not use foreign currency forward contracts for speculative or trading purposes. We enter into foreign exchange forward contracts with high credit quality financial institutions that are rated "A" or above and to date have not experienced nonperformance by counterparties. In addition, we mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty and anticipate continued performance by all counterparties to such agreements. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the condensed consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. The cash flow impact upon settlement of the derivative contracts is included in net cash provided by operating activities in the condensed consolidated statements of cash flows. Cash Flow Hedging Activities Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 27 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to our foreign currency risk, which can be up to three years. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on the hedged transactions. The related gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (loss) (OCI) in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. We expect a majority of the hedge balance in OCI to be reclassified to the statements of income within the next 12 months. We did not record any gains or losses related to discontinuation of cash flow hedges during the three months ended January 31, 2024 and 2023. 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 interest and 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 interest and 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 interest and other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the foreign currency in operating income. The duration of these forward contracts is usually less than one year. The overall goal of our hedging program is to minimize the impact of currency fluctuations on the net income over the fiscal year. The effects of the non-designated derivative instruments on the condensed consolidated statements of income are summarized as follows: Three Months Ended 2024 2023 (in thousands) Gains (losses) recorded in Interest and other income (expense), net $ 3,290 $ 8,221 The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: As of January 31, 2024 October 31, 2023 (in thousands) Total gross notional amounts $ 1,680,619 $ 1,666,758 Net fair value $ 11,452 $ (2,308) 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 condensed consolidated balance sheets location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: Fair values of Fair values of (in thousands) Balance at January 31, 2024 Other current assets $ 15,912 $ 577 Accrued liabilities $ 4,174 $ 863 Balance at October 31, 2023 Other current assets $ 12,962 $ 491 Accrued liabilities $ 14,665 $ 1,096 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 condensed consolidated statements of income: Location of Amount of Location of Amount of (in thousands) Three months ended Foreign exchange contracts Revenue $ (58) Revenue $ (3,263) Foreign exchange contracts Operating expenses 10,668 Operating expenses (15) Total $ 10,610 $ (3,278) Three months ended Foreign exchange contracts Revenue $ 5,267 Revenue $ (3,967) Foreign exchange contracts Operating expenses 36,845 Operating expenses (4,390) Total $ 42,112 $ (8,357) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jan. 31, 2024 | |
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 10. Bridge Commitment Letter, Term Loan and Revolving Credit Facilities of the Notes to Condensed Consolidated Financial Statements for more information on these borrowings. Assets/Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below as of January 31, 2024: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 44,751 44,751 $ — $ — U.S. Treasury, agency & T-bills 2,886 — 2,886 — Short-term investments: U.S. Treasury, agency & T-bills 16,755 — 16,755 — Municipal bonds 506 — 506 — Corporate debt securities 102,062 — 102,062 — Asset-backed securities 35,167 — 35,167 — Prepaid and other current assets: Foreign currency derivative contracts 16,489 — 16,489 — Other long-term assets: Deferred compensation plan assets 349,003 349,003 — — Total assets $ 567,619 $ 393,754 $ 173,865 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 5,037 $ — $ 5,037 $ — Other long-term liabilities: Deferred compensation plan liabilities 349,003 349,003 — — Total liabilities $ 354,040 $ 349,003 $ 5,037 $ — 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/Liabilities Measured at Fair Value on a Non-Recurring Basis Non-Marketable Equity Securities Non-marketable equity securities are classified within Level 3 as they are valued using a combination of observable transaction price and unobservable inputs or data in an inactive market due to the absence of market price and inherent lack of liquidity. |
Bridge Commitment Letter, Term
Bridge Commitment Letter, Term Loan and Revolving Credit Facilities | 3 Months Ended |
Jan. 31, 2024 | |
Debt Disclosure [Abstract] | |
Bridge Commitment Letter, Term Loan and Revolving Credit Facilities | Bridge Commitment Letter, Term Loan and Revolving Credit Facilities On January 15, 2024, we entered into the Bridge Commitment Letter with certain financial institutions that committed to provide, subject to the satisfaction of customary closing conditions, the Bridge Commitment in an aggregate principal amount of up to $16.0 billion (which we subsequently reduced to $11.7 billion in connection with our entry into the Term Loan Agreement as further described below). The proceeds of any borrowing under the Bridge Commitment would be used for the purpose of financing a portion of the cash consideration to be paid in the Ansys Merger and paying related fees and expenses in connection with the Ansys Merger and the other transactions contemplated by the Merger Agreement. The commitments to provide the Bridge Commitment may be terminated in whole or reduced in part, at our discretion. In addition, the Bridge Commitment Letter provides that net cash proceeds received from certain debt and equity issuances or the sale of certain businesses and assets, as well as term loan commitments under certain qualifying term loan facilities, will result in mandatory commitment reductions under the Bridge Commitment. On February 13, 2024, we entered into the Term Loan Agreement, which provides us with the ability to borrow up to $4.3 billion at the closing of the Ansys Merger, subject to the satisfaction of customary closing conditions for similar facilities, for the purpose of financing a portion of the cash consideration to be paid in the Ansys Merger and paying related fees and expenses in connection with the Ansys Merger and the other transactions contemplated by the Merger Agreement. Effective February 13, 2024, we terminated $4.3 billion of the original $16.0 billion of commitments under the Bridge Commitment, in lieu of which Synopsys expects to borrow the committed amounts available under the Term Loan Agreement. The Term Loan Agreement provides for two tranches of senior unsecured term loans: a $1.45 billion tranche (Tranche 1) that matures two years after funding and a $2.85 billion tranche (Tranche 2) that matures three years after funding. The Term Loan Agreement contains a financial covenant requiring that Synopsys maintain a maximum consolidated leverage ratio commencing the last day of the first fiscal quarter ending on or after the completion of the Ansys Merger, as well as other non-financial covenants. Under the Term Loan Agreement, borrowings will bear interest on the principal amount outstanding at a floating rate based on, at Synopsys’ election, (i) the Adjusted Term SOFR Rate (as defined in the Term Loan Agreement) plus an applicable margin based on the credit ratings of Synopsys ranging from 0.875% to 1.375% (in the case of Tranche 1) or 1.000% to 1.500% (in the case of Tranche 2) or (ii) the ABR (as defined in the Term Loan Agreement) plus an applicable margin based on the credit ratings of Synopsys ranging from 0.000% to 0.375% (in the case of Tranche 1) or 0.000% to 0.500% (in the case of Tranche 2). We will also pay a ticking fee under the Term Loan Agreement in an amount equal to a rate per annum equal to 0.10% times the actual daily undrawn portion of the commitments in respect of the term loan facility, from and including May 14, 2024 to but excluding the earlier of (i) termination or expiration of the commitments under the term loan facility or (ii) the funding of the commitments. On February 13, 2024, we entered into a Sixth Amendment Agreement (the Sixth Amendment), which amended and restated our previous revolving credit agreement, dated as of December 14, 2022 (as amended and restated, the Revolving Credit Agreement). The Revolving Credit Agreement provides an unsecured $850.0 million committed multicurrency revolving credit facility and an unsecured uncommitted incremental revolving loan facility of up to $150.0 million. The maturity date of the revolving credit facility is December 14, 2027, which may be extended at our option. Under the Sixth Amendment, certain amendments became effective on February 13, 2024 and certain additional amendments will become effective upon the completion of the Ansys Merger. Upon the effective date, the Sixth Amendment amended the financial covenant to allow netting of the cash proceeds of certain debt incurred to finance the Ansys Merger as well as certain other modifications set forth therein. Upon the completion of the Ansys Merger, the Sixth Amendment, among other things: (i) amends the applicable margin used to determine the interest that accrues on loans and the facility fee payable under the revolving credit facility to be based on our credit ratings, (ii) amends the financial covenant thresholds under the financial covenant in the Revolving Credit Agreement requiring us to maintain a maximum consolidated leverage ratio and (iii) amends certain conditions to borrowing, other non-financial covenants and events of default. The Revolving Credit Agreement contains a financial covenant requiring us to maintain a maximum consolidated leverage ratio, as well as other non-financial covenants. As of January 31, 2024, we were in compliance with the financial covenant. Interest accrues on dollar-denominated loans at a floating rate based on, at Synopsys’ election, (i) the Adjusted Term SOFR Rate (as defined in the Revolving Credit Agreement) plus an applicable margin or (ii) the ABR (as defined in the Revolving Credit Agreement) plus an applicable margin. The applicable margin for Adjusted Term SOFR Rate based loans ranges from 0.785% to 0.975%, based upon Synopsys’ consolidated leverage ratio. The applicable margin for ABR based loans is 0.000%. In addition to the interest on any outstanding loans, Synopsys is also required to pay a facility fee on the entire portion of the revolving credit facility ranging from 0.09% to 0.15% based on Synopsys’ consolidated leverage ratio on the daily amount of the revolving commitment. Subject to the completion of the Ansys Merger, interest under the Revolving Credit Agreement will accrue on dollar-denominated loans at a floating rate based on, at Synopsys’ election, (i) the Adjusted Term SOFR Rate plus an applicable margin based on our credit ratings ranging from 0.795% to 1.200% or (ii) the ABR plus an applicable margin based on our credit ratings ranging from 0.000% to 0.200%. In addition to the interest on any outstanding loans, Synopsys will also be required to pay a facility fee on the entire portion of the revolving credit facility ranging from 0.080% to 0.175% based on the credit ratings of Synopsys on the daily amount of the revolving commitment. There was no outstanding balance under the Revolving Credit Agreement as of January 31, 2024 and October 31, 2023. 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 January 31, 2024, we had $17.0 million outstanding balance under the agreement. The carrying amount of the short-term and long-term debt approximates the estimated fair value. |
Leases
Leases | 3 Months Ended |
Jan. 31, 2024 | |
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: Three Months Ended January 31, 2024 2023 (in thousands) Operating lease expense (1) $ 23,595 $ 24,348 Variable lease expense (2) 5,627 4,325 Total lease expense $ 29,222 $ 28,673 (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: Three Months Ended January 31, 2024 2023 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 24,172 $ 21,053 ROU assets obtained in exchange for operating lease liabilities $ 5,004 $ 44,339 Lease term and discount rate information related to our operating leases as of the end of the period presented are as follows: As of January 31, 2024 October 31, 2023 Weighted-average remaining lease term (in years) 8.15 8.34 Weighted-average discount rate 2.52 % 2.50 % The following table represents the maturities of our future lease payments due under operating leases as of January 31, 2024: Lease Payments Fiscal year (in thousands) Remainder of fiscal 2024 $ 76,588 2025 105,503 2026 94,057 2027 91,465 2028 77,332 2029 and thereafter 282,776 Total future minimum lease payments 727,721 Less: Imputed interest 74,712 Total lease liabilities $ 653,009 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 January 31, 2024 are as follows: Lease Receipts Fiscal year (in thousands) Remainder of fiscal 2024 $ 18,518 2025 25,351 2026 26,230 2027 27,376 2028 27,557 2029 and thereafter 56,491 Total $ 181,523 |
Redeemable Non-controlling Inte
Redeemable Non-controlling Interest | 3 Months Ended |
Jan. 31, 2024 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-controlling Interest | Redeemable Non-controlling Interest 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 (1) at the option of the Minority Investor on or after the third anniversary of the acquisition or sooner in certain circumstances or (2) at our option beginning on the third anniversary of the acquisition. This option is exercisable at the greater of fair value at the time of redemption or $30.0 million and was valued at $10.1 million, resulting in a total consideration of $100.1 million. During the three months ended January 31, 2024 , our ownership interest in OpenLight was reduced to 71% as a result of the recognition of non-controlling interest upon issuance of OpenLight stock. During the three months ended January 31, 2024, OpenLight incurred a net loss of $9.4 million, of which $2.3 million was attributable to redeemable non-controlling interest. As of January 31, 2024, the carrying value of the redeemable non-controlling interest was recorded at its estimated fair value of $31.0 million in the condensed consolidated balance sheets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Jan. 31, 2024 | |
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 January 31, 2024 October 31, 2023 (in thousands) Cumulative currency translation adjustments $ (151,814) $ (170,104) Unrealized gains (losses) on derivative instruments, net of taxes (11,336) (25,224) Unrealized gains (losses) on available-for-sale securities, net of taxes (74) (1,086) Total $ (163,224) $ (196,414) The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income is as follows: Three Months Ended 2024 2023 (in thousands) Reclassifications: Gains (losses) on cash flow hedges, net of taxes Revenues $ (3,263) $ (3,967) Operating expenses (15) (4,390) Total $ (3,278) $ (8,357) Amounts reclassified during the three months ended January 31, 2024 and 2023 primarily consisted of gains (losses) from our cash flow hedging activities. See Note 8. Financial Assets and Liabilities of the Notes to Condensed Consolidated Financial Statements. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Jan. 31, 2024 | |
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 January 31, 2024, $194.3 million remained available for future repurchases under the Program. Stock repurchase activities as well as the reissuance of treasury stock for employee stock-based compensation purposes are as follows: Three Months Ended 2024 (1) 2023 (2) (in thousands) Total shares repurchased 74 806 Total cost of the repurchased shares $ 45,000 $ 260,724 Reissuance of treasury stock 557 811 (1) Included the 73,903 shares and $45.0 million equity forward contract from the August 2023 Accelerated Share Repurchase (ASR) settled in November 2023. (2) Excluded the 107,020 shares and $45.0 million equity forward contract from the December 2022 ASR settled in February 2023. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jan. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The compensation cost recognized in the condensed consolidated statements of income for our stock compensation arrangements is as follows: Three Months Ended 2024 2023 (in thousands) Cost of products $ 20,680 $ 16,029 Cost of maintenance and service 9,176 7,155 Research and development expense 94,888 69,231 Sales and marketing expense 35,353 24,907 General and administrative expense 20,555 16,905 Stock-based compensation expense before taxes 180,652 134,227 Income tax benefit (29,410) (21,570) Stock-based compensation expense after taxes $ 151,242 $ 112,657 During the three months ended January 31, 2024 and 2023, we recognized stock-based compensation expense relating to restricted stock units (RSUs) granted to senior executives with certain market, performance and service conditions (market-based RSUs). The grant date fair value of the market-based RSUs and the assumptions used in the Monte Carlo simulation model to determine the grant date fair value during the periods were as follows: Three Months Ended 2024 2023 Expected life (in years) 2.89 years 0.90 years Risk-free interest rate 4.41 % 4.63 % Volatility 34.03 % 42.86 % Grant date fair value $ 600.29 $ 408.55 As of January 31, 2024, we had $1.6 billion of total unrecognized stock-based compensation expense relating to options, RSUs and restricted stock awards, which is expected to be recognized over a weighted-average period of 2.7 years. As of January 31, 2024, we had $27.5 million of unrecognized stock-based compensation expense relating to our Employee Stock Purchase Plan, which is expected to be recognized over a period of approximately 2.0 years. The intrinsic values of equity awards exercised during the periods are as follows: Three Months Ended 2024 2023 (in thousands) Intrinsic value of awards exercised $ 27,855 $ 54,776 |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jan. 31, 2024 | |
Earnings Per Share [Abstract] | |
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 RSUs and awards during the period using the treasury stock method. The table below reconciles the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share: Three Months Ended 2024 2023 (in thousands, except per share amounts) Numerator: Net income attributed to Synopsys $ 449,112 $ 271,536 Denominator: Weighted average common shares for basic net income per share 152,311 152,401 Dilutive effect of common share equivalents from equity-based compensation 3,023 2,675 Weighted average common shares for diluted net income per share 155,334 155,076 Net income per share attributed to Synopsys: Basic $ 2.95 $ 1.78 Diluted $ 2.89 $ 1.75 Anti-dilutive employee stock-based awards excluded 702 527 |
Segment Disclosure
Segment Disclosure | 3 Months Ended |
Jan. 31, 2024 | |
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. We have three reportable segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, system integration products and services, digital, custom and field programmable gate array (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. 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: Three Months Ended 2024 2023 (in thousands) Total Segments: Revenue $ 1,649,230 $ 1,361,340 Adjusted operating income 638,358 479,167 Adjusted operating margin 39 % 35 % Design Automation: Revenue $ 985,339 $ 889,846 Adjusted operating income 364,883 346,009 Adjusted operating margin 37 % 39 % Design IP: Revenue $ 525,650 $ 343,651 Adjusted operating income 249,494 117,625 Adjusted operating margin 47 % 34 % Software Integrity: Revenue $ 138,241 $ 127,843 Adjusted operating income 23,981 15,533 Adjusted operating margin 17 % 12 % 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 acquired intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan, restructuring charges, and acquisition/divestiture related items, are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income: Three Months Ended 2024 2023 (in thousands) Total segment adjusted operating income $ 638,358 $ 479,167 Reconciling items: Amortization of acquired intangible assets (27,053) (25,357) Stock-based compensation expense (180,652) (134,227) Deferred compensation plan (40,101) (20,197) Restructuring charges — (40,859) Acquisition/divestiture related items (30,932) (2,595) Total operating income $ 359,620 $ 255,932 The CODM does not use total assets by segment to evaluate segment performance or allocate resources. As a result, total assets by segment are not disclosed. In allocating revenue to particular geographic areas, the CODM considers where individual “seats” or licenses to our products are located. Revenue is defined as revenue from external customers. Revenue related to operations in the United States and other geographic areas are: Three Months Ended 2024 2023 (in thousands) Revenue: United States $ 807,618 $ 671,782 Europe 159,113 135,007 China 249,975 197,778 Korea 184,600 145,792 Other 247,924 210,981 Consolidated $ 1,649,230 $ 1,361,340 Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology. |
Interest and Other Income (Expe
Interest and Other Income (Expense), Net | 3 Months Ended |
Jan. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income (Expense), Net | Interest and Other Income (Expense), Net The following table presents the components of interest and other income (expense), net: Three Months Ended 2024 2023 (in thousands) Interest income $ 13,150 $ 6,899 Interest expense (1,324) (264) Gains (losses) on assets related to deferred compensation plan 40,101 20,197 Foreign currency exchange gains (losses) 3,365 2,700 Gain on sale of strategic investments 55,077 — Other, net (4,885) (6,240) Total $ 105,484 $ 23,292 |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate We estimate our annual effective tax rate at the end of each fiscal quarter. The effective tax rate takes into account our estimations of annual pre-tax income, the geographic mix of pre-tax income and interpretations of tax laws and possible outcomes of audits. The following table presents the provision for income taxes and the effective tax rates: Three Months Ended 2024 2023 (in thousands) Income before income taxes $ 465,104 $ 279,224 Provision (benefit) for income taxes $ 18,897 $ 10,597 Effective tax rate 4.1 % 3.8 % Our effective tax rate for the three months ended January 31, 2024, is lower than the statutory federal corporate tax rate of 21% primarily due to U.S. federal research tax credits, foreign-derived intangible income deduction, excess tax benefits from stock-based compensation and U.S. foreign tax credits, partially offset by state taxes and the effect of non-deductible stock-based compensation. Our effective tax rate increased in the three months ended January 31, 2024, as compared to the same period in fiscal 2023, primarily due to a reduced benefit from U.S. federal research tax credits partially offset by increased excess tax benefits from stock-based compensation. The timing of the resolution of income tax examinations, and the amounts and timing of various tax payments that are part of the settlement process, are highly uncertain. Variations in such amounts and/or timing could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. We believe that in the coming 12 months, it is reasonably possible that either certain audits and ongoing tax litigation will conclude or the statute of limitations on certain state and foreign income and withholding taxes will expire, or both. Given the uncertainty as to ultimate settlement terms, the timing of payment and the impact of such settlements on other uncertain tax positions, the range of the estimated potential decrease in underlying unrecognized tax benefits is between $0 and $5.4 million. Non-U.S. Examinations Hungarian Tax Authority In 2017, the Hungarian Tax Authority (the HTA) assessed withholding taxes of approximately $25.0 million and interest and penalties of $11.0 million against our Hungary subsidiary (Synopsys Hungary). Synopsys Hungary contested the assessment with the Hungarian Administrative Court (Administrative Court). In fiscal 2018, Synopsys Hungary paid the assessment. Following years of litigation, the Administrative Court issued its written decision in favor of Synopsys Hungary on May 17, 2023, and the HTA subsequently refunded Synopsys Hungary the tax, penalty and interest paid in fiscal 2018, as well as additional interest totaling $39.1 million (including foreign currency effects). 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 Effective our fiscal 2024, we are subject to the new 15% corporate alternative minimum tax (CAMT) enacted as part of the Inflation Reduction Act of 2022. The Company does not expect any impact of CAMT in fiscal 2024. On January 31, 2024, the House of Representatives has passed the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) which would defer the requirement of capitalizing research and development, based in the United States, until tax years starting after December 31, 2025. The proposed legislation would have a beneficial impact on our cash tax liabilities, if enacted. Synopsys will continue to monitor the status of this legislation. |
Contingencies
Contingencies | 3 Months Ended |
Jan. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Proceedings We are subject to routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The ultimate outcome of any litigation is often uncertain and unfavorable outcomes could have a negative impact on our results of operations and financial condition. We regularly review the status of each significant matter and assess our potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount is estimable, we accrue a liability for the estimated loss. Legal proceedings are inherently uncertain and, as circumstances change, it is possible that the amount of any accrued liability may increase, decrease or be eliminated. We have determined that, except as set forth below, no disclosure of estimated loss is required for a claim against us because: (1) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (2) a reasonably possible loss or range of loss cannot be estimated; or (3) such estimate is immaterial. Legal Settlement There have been no changes to the disclosure related to Mentor Graphics Corporation (now part of Siemens AG) since our Annual Report. See Note 10. Contingencies of the Notes to Consolidated Financial Statements in our Annual Report for further information. Tax Matters We undergo examination from time to time by U.S. and foreign authorities for non-income based taxes, such as sales, use and value-added taxes, and are currently under examination by tax authorities in certain jurisdictions. If the potential loss from such examinations is considered probable and the amount or the range of loss could be estimated, we would accrue a liability for the estimated expense. In addition to the foregoing, we are, from time to time, party to various other claims and legal proceedings in the ordinary course of our business, including with tax and other governmental authorities. For a description of certain of these other matters, see Note 19. Income Taxes of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 449,112 | $ 271,536 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jan. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 3 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. To prepare financial statements in conformity with U.S. GAAP, management must make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and could have a material impact on our operating results and financial position. |
Principles of Consolidation | Principles of Consolidation. The condensed consolidated financial statements include our accounts and the accounts of our wholly and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year and Fiscal Quarter End | Fiscal Year and Fiscal Quarter End. Our fiscal year 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 2024 is a 53-week year ending on November 2, 2024, which impacts our revenue, expenses and operating results. Fiscal 2023 was a 52-week year and ended on October 28, 2023. Our results of operations for the first quarter of fiscal 2024 and 2023 included 14 weeks and 13 weeks, respectively, and ended on February 3, 2024 and January 28, 2023, respectively. For presentation purposes, the condensed consolidated financial statements and accompanying notes refer to the closest calendar month end. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03), which applies to all equity securities measured at fair value that are subject to contractual sale restrictions. This change prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. The standard will become effective for us beginning on November 1, 2024 and will be applied prospectively. Early adoption is permitted. Any future impact from the adoption of this guidance will depend on the facts and circumstances of future transactions. 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 Chief Operating Decision Maker (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 our annual reports beginning in the fiscal year 2025, and interim period reports beginning in the first quarter of the fiscal year 2026 on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. The standard will become effective for us beginning on November 1, 2025 and will be applied on a prospective ba sis, with a retrospective option. Early adoption is permitted. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table shows the percentage of revenue by product groups: Three Months Ended 2024 2023 EDA 58.9 % 64.3 % Design IP 31.9 % 25.2 % Software Integrity 8.4 % 9.4 % Other 0.8 % 1.1 % Total 100.0 % 100.0 % |
Schedule of Contract Assets and Liabilities | Contract balances are as follows: As of January 31, 2024 October 31, 2023 (in thousands) Contract assets, net $ 469,002 $ 389,042 Unbilled receivables $ 40,522 $ 60,016 Deferred revenue $ 2,045,680 $ 1,951,128 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the three months ended January 31, 2024 are as follows: (in thousands) Balance at October 31, 2023 $ 4,070,336 Additions 47,994 Adjustments 138 Effect of foreign currency translation 12,950 Balance at January 31, 2024 $ 4,131,418 |
Schedule of Intangible Assets | Intangible assets as of January 31, 2024 consist of the following: Gross Carrying Amount Accumulated Net Amount (in thousands) Core/developed technology $ 1,158,892 $ 904,829 $ 254,063 Customer relationships 469,340 364,328 105,012 Contract rights intangible 195,879 191,984 3,895 Trademarks and trade names 52,825 38,380 14,445 Total $ 1,876,936 $ 1,499,521 $ 377,415 Intangible assets as of October 31, 2023 consist 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 |
Schedule of Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets consists of the following: Three Months Ended 2024 2023 (in thousands) Core/developed technology $ 19,265 $ 18,269 Customer relationships 5,850 5,824 Contract rights intangible 1,191 371 Trademarks and trade names 747 893 Capitalized software development costs (1) — 559 Total $ 27,053 $ 25,916 (1) Amortization of capitalized software development costs is included in cost of products revenue in the condensed consolidated statements of income. |
Schedule of Estimated Future Amortization of Acquired Intangible Assets | The following table presents the estimated future amortization of acquired intangible assets as of January 31, 2024: Fiscal year (in thousands) Remainder of fiscal 2024 $ 79,696 2025 88,515 2026 75,333 2027 54,888 2028 29,467 2029 and thereafter 49,516 Total $ 377,415 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Balance Sheets Components | As of January 31, 2024 October 31, 2023 (in thousands) Other long-term assets: Deferred compensation plan assets $ 349,003 $ 300,731 Capitalized commission, net 88,463 88,614 Other 131,047 81,628 Total $ 568,513 $ 470,973 Accounts payable and accrued liabilities: Payroll and related benefits $ 370,626 $ 583,854 Accrued income taxes 124,287 226,762 Other accrued liabilities 127,753 157,254 Accounts payable 76,808 155,891 Total $ 699,474 $ 1,123,761 Other long-term liabilities: Deferred compensation plan liabilities $ 349,003 $ 300,731 Other 87,525 85,407 Total $ 436,528 $ 386,138 |
Financial Assets and Liabilit_2
Financial Assets and Liabilities (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Financial Assets And Liabilities [Abstract] | |
Schedule of Cash Equivalents and Short-Term Investments | As of January 31, 2024, 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 $ 44,751 $ — $ — $ — $ 44,751 U.S. Treasury, agency & T-bills 2,886 — — — 2,886 Total: $ 47,637 $ — $ — $ — $ 47,637 Short-term investments: U.S. Treasury, agency & T-bills $ 16,778 $ 6 $ (29) $ — $ 16,755 Municipal bonds 515 — — (9) 506 Corporate debt securities 102,108 208 (81) (173) 102,062 Asset-backed securities 35,163 71 (12) (55) 35,167 Total: $ 154,564 $ 285 $ (122) $ (237) $ 154,490 (1) See Note 9. Fair Value Measurements for further discussion on fair values. The contractual maturities of our available-for-sale debt securities as of January 31, 2024 are as follows: Amortized Cost Fair Value (in thousands) less than 1 year $ 75,193 $ 74,999 1-5 years 75,224 75,359 5-10 years 2,798 2,812 >10 years 1,349 1,320 Total $ 154,564 $ 154,490 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 9. 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 condensed consolidated balance sheets: As of January 31, 2024 October 31, 2023 (in thousands) Cash and cash equivalents $ 1,118,944 $ 1,438,913 Restricted cash included in prepaid and other current assets 1,490 1,549 Restricted cash included in other long-term assets 736 725 Total cash, cash equivalents and restricted cash $ 1,121,170 $ 1,441,187 |
Schedule of Effects on Changes in Fair Values of Non-Designated Forward Contracts | The effects of the non-designated derivative instruments on the condensed consolidated statements of income are summarized as follows: Three Months Ended 2024 2023 (in thousands) Gains (losses) recorded in Interest and other income (expense), net $ 3,290 $ 8,221 |
Schedule of Notional Amounts of Derivative Instruments | The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding: As of January 31, 2024 October 31, 2023 (in thousands) Total gross notional amounts $ 1,680,619 $ 1,666,758 Net fair value $ 11,452 $ (2,308) |
Schedule of Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet | The following table represents the condensed consolidated balance sheets location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments: Fair values of Fair values of (in thousands) Balance at January 31, 2024 Other current assets $ 15,912 $ 577 Accrued liabilities $ 4,174 $ 863 Balance at October 31, 2023 Other current assets $ 12,962 $ 491 Accrued liabilities $ 14,665 $ 1,096 |
Schedule of 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 condensed consolidated statements of income: Location of Amount of Location of Amount of (in thousands) Three months ended Foreign exchange contracts Revenue $ (58) Revenue $ (3,263) Foreign exchange contracts Operating expenses 10,668 Operating expenses (15) Total $ 10,610 $ (3,278) Three months ended Foreign exchange contracts Revenue $ 5,267 Revenue $ (3,967) Foreign exchange contracts Operating expenses 36,845 Operating expenses (4,390) Total $ 42,112 $ (8,357) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below as of January 31, 2024: Fair Value Measurement Using Description Total Quoted Prices in Significant Other Significant (in thousands) Assets Cash equivalents: Money market funds $ 44,751 44,751 $ — $ — U.S. Treasury, agency & T-bills 2,886 — 2,886 — Short-term investments: U.S. Treasury, agency & T-bills 16,755 — 16,755 — Municipal bonds 506 — 506 — Corporate debt securities 102,062 — 102,062 — Asset-backed securities 35,167 — 35,167 — Prepaid and other current assets: Foreign currency derivative contracts 16,489 — 16,489 — Other long-term assets: Deferred compensation plan assets 349,003 349,003 — — Total assets $ 567,619 $ 393,754 $ 173,865 $ — Liabilities Accounts payable and accrued liabilities: Foreign currency derivative contracts $ 5,037 $ — $ 5,037 $ — Other long-term liabilities: Deferred compensation plan liabilities 349,003 349,003 — — Total liabilities $ 354,040 $ 349,003 $ 5,037 $ — 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 $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Leases [Abstract] | |
Schedule of Lease, Cost | The components of our lease expense during the period presented are as follows: Three Months Ended January 31, 2024 2023 (in thousands) Operating lease expense (1) $ 23,595 $ 24,348 Variable lease expense (2) 5,627 4,325 Total lease expense $ 29,222 $ 28,673 (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: Three Months Ended January 31, 2024 2023 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 24,172 $ 21,053 ROU assets obtained in exchange for operating lease liabilities $ 5,004 $ 44,339 |
Schedule of 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 January 31, 2024 October 31, 2023 Weighted-average remaining lease term (in years) 8.15 8.34 Weighted-average discount rate 2.52 % 2.50 % |
Schedule of Lessee, Operating Lease, Liability, Maturity | The following table represents the maturities of our future lease payments due under operating leases as of January 31, 2024: Lease Payments Fiscal year (in thousands) Remainder of fiscal 2024 $ 76,588 2025 105,503 2026 94,057 2027 91,465 2028 77,332 2029 and thereafter 282,776 Total future minimum lease payments 727,721 Less: Imputed interest 74,712 Total lease liabilities $ 653,009 |
Schedule of 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 January 31, 2024 are as follows: Lease Receipts Fiscal year (in thousands) Remainder of fiscal 2024 $ 18,518 2025 25,351 2026 26,230 2027 27,376 2028 27,557 2029 and thereafter 56,491 Total $ 181,523 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of 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 January 31, 2024 October 31, 2023 (in thousands) Cumulative currency translation adjustments $ (151,814) $ (170,104) Unrealized gains (losses) on derivative instruments, net of taxes (11,336) (25,224) Unrealized gains (losses) on available-for-sale securities, net of taxes (74) (1,086) Total $ (163,224) $ (196,414) |
Schedule of 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: Three Months Ended 2024 2023 (in thousands) Reclassifications: Gains (losses) on cash flow hedges, net of taxes Revenues $ (3,263) $ (3,967) Operating expenses (15) (4,390) Total $ (3,278) $ (8,357) |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Stock Repurchase Program [Abstract] | |
Schedule of 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: Three Months Ended 2024 (1) 2023 (2) (in thousands) Total shares repurchased 74 806 Total cost of the repurchased shares $ 45,000 $ 260,724 Reissuance of treasury stock 557 811 (1) Included the 73,903 shares and $45.0 million equity forward contract from the August 2023 Accelerated Share Repurchase (ASR) settled in November 2023. (2) Excluded the 107,020 shares and $45.0 million equity forward contract from the December 2022 ASR settled in February 2023. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Compensation Arrangements | The compensation cost recognized in the condensed consolidated statements of income for our stock compensation arrangements is as follows: Three Months Ended 2024 2023 (in thousands) Cost of products $ 20,680 $ 16,029 Cost of maintenance and service 9,176 7,155 Research and development expense 94,888 69,231 Sales and marketing expense 35,353 24,907 General and administrative expense 20,555 16,905 Stock-based compensation expense before taxes 180,652 134,227 Income tax benefit (29,410) (21,570) Stock-based compensation expense after taxes $ 151,242 $ 112,657 |
Schedule of Share-Based Payment Award, Restricted Stock Units, Valuation Assumptions | The grant date fair value of the market-based RSUs and the assumptions used in the Monte Carlo simulation model to determine the grant date fair value during the periods were as follows: Three Months Ended 2024 2023 Expected life (in years) 2.89 years 0.90 years Risk-free interest rate 4.41 % 4.63 % Volatility 34.03 % 42.86 % Grant date fair value $ 600.29 $ 408.55 |
Schedule of Intrinsic Value of Equity Awards Exercised | The intrinsic values of equity awards exercised during the periods are as follows: Three Months Ended 2024 2023 (in thousands) Intrinsic value of awards exercised $ 27,855 $ 54,776 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Weighted-Average Common Shares Used to Calculate Net Income Per Share | The table below reconciles the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share: Three Months Ended 2024 2023 (in thousands, except per share amounts) Numerator: Net income attributed to Synopsys $ 449,112 $ 271,536 Denominator: Weighted average common shares for basic net income per share 152,311 152,401 Dilutive effect of common share equivalents from equity-based compensation 3,023 2,675 Weighted average common shares for diluted net income per share 155,334 155,076 Net income per share attributed to Synopsys: Basic $ 2.95 $ 1.78 Diluted $ 2.89 $ 1.75 Anti-dilutive employee stock-based awards excluded 702 527 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information by reportable segment is as follows: Three Months Ended 2024 2023 (in thousands) Total Segments: Revenue $ 1,649,230 $ 1,361,340 Adjusted operating income 638,358 479,167 Adjusted operating margin 39 % 35 % Design Automation: Revenue $ 985,339 $ 889,846 Adjusted operating income 364,883 346,009 Adjusted operating margin 37 % 39 % Design IP: Revenue $ 525,650 $ 343,651 Adjusted operating income 249,494 117,625 Adjusted operating margin 47 % 34 % Software Integrity: Revenue $ 138,241 $ 127,843 Adjusted operating income 23,981 15,533 Adjusted operating margin 17 % 12 % |
Schedule of Reconciliation of Operating Income From Segment Consolidation | The unallocated expenses managed at a consolidated level, including amortization of acquired intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan, restructuring charges, and acquisition/divestiture related items, are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income: Three Months Ended 2024 2023 (in thousands) Total segment adjusted operating income $ 638,358 $ 479,167 Reconciling items: Amortization of acquired intangible assets (27,053) (25,357) Stock-based compensation expense (180,652) (134,227) Deferred compensation plan (40,101) (20,197) Restructuring charges — (40,859) Acquisition/divestiture related items (30,932) (2,595) Total operating income $ 359,620 $ 255,932 |
Schedule of Revenues Related to Operations by Geographic Areas | Revenue related to operations in the United States and other geographic areas are: Three Months Ended 2024 2023 (in thousands) Revenue: United States $ 807,618 $ 671,782 Europe 159,113 135,007 China 249,975 197,778 Korea 184,600 145,792 Other 247,924 210,981 Consolidated $ 1,649,230 $ 1,361,340 |
Interest and Other Income (Ex_2
Interest and Other Income (Expense), Net (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Components of Interest and Other Income (Expense), Net | The following table presents the components of interest and other income (expense), net: Three Months Ended 2024 2023 (in thousands) Interest income $ 13,150 $ 6,899 Interest expense (1,324) (264) Gains (losses) on assets related to deferred compensation plan 40,101 20,197 Foreign currency exchange gains (losses) 3,365 2,700 Gain on sale of strategic investments 55,077 — Other, net (4,885) (6,240) Total $ 105,484 $ 23,292 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Incomes Taxes and Effective Tax Rates | The following table presents the provision for income taxes and the effective tax rates: Three Months Ended 2024 2023 (in thousands) Income before income taxes $ 465,104 $ 279,224 Provision (benefit) for income taxes $ 18,897 $ 10,597 Effective tax rate 4.1 % 3.8 % |
Pending Acquisition of Ansys (D
Pending Acquisition of Ansys (Details) $ / shares in Units, $ in Millions | Jun. 30, 2025 USD ($) $ / shares | Feb. 13, 2024 USD ($) | Jan. 15, 2024 USD ($) |
Bridge Commitment | Bridge Loan | Line of Credit | |||
Business Acquisition [Line Items] | |||
Credit facility maximum borrowing capacity | $ 16,000 | ||
Bridge Commitment | Bridge Loan | Line of Credit | Subsequent Event | |||
Business Acquisition [Line Items] | |||
Credit facility maximum borrowing capacity | $ 11,700 | ||
Amount terminated | 4,300 | ||
Term Loan Agreement | Line of Credit | Subsequent Event | |||
Business Acquisition [Line Items] | |||
Credit facility maximum borrowing capacity | $ 4,300 | ||
ANSYS, Inc. | Forecast | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 35,000 | ||
Business acquisition, exchange ratio | 0.3450 | ||
Business acquisition, share price | $ / shares | $ 197 | ||
Business acquisition, maximum stock to be issued as a percentage of stock issued and outstanding | 19.9999% | ||
Termination fee payable | $ 1,500 | ||
Termination fee receivable | $ 950 |
Business Combination (Details)
Business Combination (Details) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 USD ($) acquisition | Oct. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | ||
Number of acquisitions | acquisition | 1 | |
Goodwill | $ 4,131,418 | $ 4,070,336 |
Transaction costs | 31,900 | |
Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Consideration transferred | 67,800 | |
Intangible assets | 29,400 | |
Goodwill | 48,000 | |
Net tangible liabilities | 9,600 | |
Goodwill, expected tax deductible amount | $ 0 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - Product Concentration Risk - Revenue | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue percentage by product group | 100% | 100% |
EDA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue percentage by product group | 58.90% | 64.30% |
Design IP | ||
Disaggregation of Revenue [Line Items] | ||
Revenue percentage by product group | 31.90% | 25.20% |
Software Integrity | ||
Disaggregation of Revenue [Line Items] | ||
Revenue percentage by product group | 8.40% | 9.40% |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue percentage by product group | 0.80% | 1.10% |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net | $ 469,002 | $ 389,042 |
Unbilled receivables | 40,522 | 60,016 |
Deferred revenue | $ 2,045,680 | $ 1,951,128 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Contract with customer, liability, revenue recognized | $ 846.7 | |
Revenue, remaining performance obligation, amount | 8,200 | |
Revenue, remaining performance obligation, non-cancellable, amount | $ 1,300 | |
Revenue, remaining performance obligation, percentage | 40% | |
Capitalized contract cost, net | $ 88.5 | |
Amortization of capitalized costs to obtain revenue contracts | $ 18.7 | $ 18.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01 | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-02-01 | ||
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 | $ 25.4 | $ 24.7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes of Goodwill (Details) $ in Thousands | 3 Months Ended |
Jan. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 4,070,336 |
Additions | 47,994 |
Adjustments | 138 |
Effect of foreign currency translation | 12,950 |
Ending Balance | $ 4,131,418 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,876,936 | $ 1,897,268 |
Accumulated Amortization | 1,499,521 | 1,523,074 |
Net Amount | 377,415 | 374,194 |
Core/developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,158,892 | 1,135,347 |
Accumulated Amortization | 904,829 | 885,555 |
Net Amount | 254,063 | 249,792 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 469,340 | 463,371 |
Accumulated Amortization | 364,328 | 358,421 |
Net Amount | 105,012 | 104,950 |
Contract rights intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 195,879 | 194,930 |
Accumulated Amortization | 191,984 | 190,670 |
Net Amount | 3,895 | 4,260 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 52,825 | 52,825 |
Accumulated Amortization | 38,380 | 37,633 |
Net Amount | $ 14,445 | 15,192 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50,795 | |
Accumulated Amortization | 50,795 | |
Net Amount | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization expense of intangible assets | $ 27,053 | $ 25,916 |
Core/developed technology | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization expense of intangible assets | 19,265 | 18,269 |
Customer relationships | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization expense of intangible assets | 5,850 | 5,824 |
Contract rights intangible | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization expense of intangible assets | 1,191 | 371 |
Trademarks and trade names | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization expense of intangible assets | 747 | 893 |
Capitalized software development costs | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization expense of intangible assets | $ 0 | $ 559 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of fiscal 2024 | $ 79,696 | |
2025 | 88,515 | |
2026 | 75,333 | |
2027 | 54,888 | |
2028 | 29,467 | |
2029 and thereafter | 49,516 | |
Net Amount | $ 377,415 | $ 374,194 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Other long-term assets: | ||
Deferred compensation plan assets | $ 349,003 | $ 300,731 |
Capitalized commission, net | 88,463 | 88,614 |
Other | 131,047 | 81,628 |
Total | 568,513 | 470,973 |
Accounts payable and accrued liabilities: | ||
Payroll and related benefits | 370,626 | 583,854 |
Accrued income taxes | 124,287 | 226,762 |
Other accrued liabilities | 127,753 | 157,254 |
Accounts payable | 76,808 | 155,891 |
Total | 699,474 | 1,123,761 |
Other long-term liabilities: | ||
Deferred compensation plan liabilities | 349,003 | 300,731 |
Other | 87,525 | 85,407 |
Total | $ 436,528 | $ 386,138 |
Financial Assets and Liabilit_3
Financial Assets and Liabilities - Short-term investments (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Cash Equivalents and Short-term Investments [Line Items] | ||
Total | $ 154,564 | $ 152,725 |
Gross Unrealized Gains | 285 | 34 |
Gross Unrealized Losses Less Than 12 Continuous Months | (122) | (609) |
Gross Unrealized Losses 12 Continuous Months or Longer | (237) | (511) |
Estimated fair value | 154,490 | 151,639 |
Cash equivalents | ||
Cash Equivalents and Short-term Investments [Line Items] | ||
Total | 47,637 | 13,123 |
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 | 47,637 | 13,123 |
Cash equivalents | Money market funds | ||
Cash Equivalents and Short-term Investments [Line Items] | ||
Total | 44,751 | 10,129 |
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 | 44,751 | 10,129 |
Cash equivalents | U.S. Treasury, agency & T-bills | ||
Cash Equivalents and Short-term Investments [Line Items] | ||
Total | 2,886 | 2,994 |
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 | 2,886 | 2,994 |
Short-term Investments | U.S. Treasury, agency & T-bills | ||
Cash Equivalents and Short-term Investments [Line Items] | ||
Total | 16,778 | 15,752 |
Gross Unrealized Gains | 6 | 0 |
Gross Unrealized Losses Less Than 12 Continuous Months | (29) | (61) |
Gross Unrealized Losses 12 Continuous Months or Longer | 0 | (2) |
Estimated fair value | 16,755 | 15,689 |
Short-term Investments | Municipal bonds | ||
Cash Equivalents and Short-term Investments [Line Items] | ||
Total | 515 | 515 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less Than 12 Continuous Months | 0 | 0 |
Gross Unrealized Losses 12 Continuous Months or Longer | (9) | (16) |
Estimated fair value | 506 | 499 |
Short-term Investments | Corporate debt securities | ||
Cash Equivalents and Short-term Investments [Line Items] | ||
Total | 102,108 | 103,213 |
Gross Unrealized Gains | 208 | 13 |
Gross Unrealized Losses Less Than 12 Continuous Months | (81) | (455) |
Gross Unrealized Losses 12 Continuous Months or Longer | (173) | (396) |
Estimated fair value | 102,062 | 102,375 |
Short-term Investments | Asset-backed securities | ||
Cash Equivalents and Short-term Investments [Line Items] | ||
Total | 35,163 | 33,245 |
Gross Unrealized Gains | 71 | 21 |
Gross Unrealized Losses Less Than 12 Continuous Months | (12) | (93) |
Gross Unrealized Losses 12 Continuous Months or Longer | (55) | (97) |
Estimated fair value | $ 35,167 | $ 33,076 |
Financial Assets and Liabilit_4
Financial Assets and Liabilities - Schedule of Maturity for Short-Term Available for Sale Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Amortized Cost | ||
less than 1 year | $ 75,193 | |
1-5 years | 75,224 | |
5-10 years | 2,798 | |
>10 years | 1,349 | |
Total | 154,564 | $ 152,725 |
Fair Value | ||
less than 1 year | 74,999 | |
1-5 years | 75,359 | |
5-10 years | 2,812 | |
>10 years | 1,320 | |
Total | $ 154,490 | $ 151,639 |
Financial Assets and Liabilit_5
Financial Assets and Liabilities - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 | Jan. 31, 2023 | Oct. 31, 2022 |
Financial Assets And Liabilities [Abstract] | ||||
Cash and cash equivalents | $ 1,118,944 | $ 1,438,913 | ||
Restricted cash included in prepaid and other current assets | 1,490 | 1,549 | ||
Restricted cash included in other long-term assets | 736 | 725 | ||
Total cash, cash equivalents and restricted cash | $ 1,121,170 | $ 1,441,187 | $ 1,157,268 | $ 1,419,864 |
Financial Assets and Liabilit_6
Financial Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | |
Financial Assets and Liabilities [Line Items] | |||
Gain on sale of strategic investments | $ 55,100 | $ 55,077 | $ 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 | ||
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 | 3 months | ||
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 | Fair values of derivative instruments not designated as hedging instruments | Maximum | |||
Financial Assets and Liabilities [Line Items] | |||
Non-designated foreign exchange forward contract remaining maturity | 1 year |
Financial Assets and Liabilit_7
Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Financial Assets And Liabilities [Abstract] | ||
Gains (losses) recorded in Interest and other income (expense), net | $ 3,290 | $ 8,221 |
Financial Assets and Liabilit_8
Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Financial Assets And Liabilities [Abstract] | ||
Total gross notional amounts | $ 1,680,619 | $ 1,666,758 |
Net fair value | $ 11,452 | $ (2,308) |
Financial Assets and Liabilit_9
Financial Assets and Liabilities - Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Fair values of derivative instruments designated as hedging instruments | Other current assets | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, assets | $ 15,912 | $ 12,962 |
Fair values of derivative instruments designated as hedging instruments | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | 4,174 | 14,665 |
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 | 577 | 491 |
Fair values of derivative instruments not designated as hedging instruments | Accrued liabilities | ||
Financial Assets and Liabilities [Line Items] | ||
Fair values of derivative instruments, liabilities | $ 863 | $ 1,096 |
Financial Assets and Liabili_10
Financial Assets and Liabilities - Unaudited Condensed Consolidated Statement of Operations Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) - Foreign Exchange Contracts - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Financial Assets and Liabilities [Line Items] | ||
Amount of gains (losses) recognized in OCI on derivatives (effective portion) | $ 10,610 | $ 42,112 |
Amount of gains (losses) reclassified from OCI (effective portion) | (3,278) | (8,357) |
Revenue | ||
Financial Assets and Liabilities [Line Items] | ||
Amount of gains (losses) recognized in OCI on derivatives (effective portion) | (58) | 5,267 |
Amount of gains (losses) reclassified from OCI (effective portion) | (3,263) | (3,967) |
Operating expenses | ||
Financial Assets and Liabilities [Line Items] | ||
Amount of gains (losses) recognized in OCI on derivatives (effective portion) | 10,668 | 36,845 |
Amount of gains (losses) reclassified from OCI (effective portion) | $ (15) | $ (4,390) |
Fair Value Measurements (Detail
Fair Value Measurements (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 567,619 | $ 478,946 |
Total liabilities | 354,040 | 316,492 |
Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 349,003 | 300,731 |
Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 16,489 | 13,453 |
Accounts payable and accrued liabilities | 5,037 | 15,761 |
Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 44,751 | 10,129 |
Cash equivalents | U.S. Treasury, agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,886 | 2,994 |
Short-term Investments | U.S. Treasury, agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 16,755 | 15,689 |
Short-term Investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 506 | 499 |
Short-term Investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 102,062 | 102,375 |
Short-term Investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 35,167 | 33,076 |
Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 349,003 | 300,731 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 393,754 | 310,860 |
Total liabilities | 349,003 | 300,731 |
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 | 349,003 | 300,731 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 44,751 | 10,129 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash equivalents | U.S. Treasury, agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | U.S. Treasury, agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 349,003 | 300,731 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 173,865 | 168,086 |
Total liabilities | 5,037 | 15,761 |
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 | 16,489 | 13,453 |
Accounts payable and accrued liabilities | 5,037 | 15,761 |
Significant Other Observable Inputs (Level 2) | Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Cash equivalents | U.S. Treasury, agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,886 | 2,994 |
Significant Other Observable Inputs (Level 2) | Short-term Investments | U.S. Treasury, agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 16,755 | 15,689 |
Significant Other Observable Inputs (Level 2) | Short-term Investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 506 | 499 |
Significant Other Observable Inputs (Level 2) | Short-term Investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 102,062 | 102,375 |
Significant Other Observable Inputs (Level 2) | Short-term Investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 35,167 | 33,076 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Foreign currency derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Cash equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Cash equivalents | U.S. Treasury, agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term Investments | U.S. Treasury, agency & T-bills | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term Investments | Municipal bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term Investments | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term Investments | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term assets | $ 0 | $ 0 |
Bridge Commitment Letter, Ter_2
Bridge Commitment Letter, Term Loan and Revolving Credit Facilities (Detail) ¥ in Millions, $ in Millions | 1 Months Ended | ||||||
Jun. 30, 2025 | Feb. 13, 2024 USD ($) | Jul. 31, 2018 USD ($) | Jan. 31, 2024 USD ($) | Jan. 15, 2024 USD ($) | Oct. 31, 2023 USD ($) | Jul. 31, 2018 CNY (¥) | |
Foreign Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 33 | ¥ 220 | |||||
Debt instrument, term | 12 years | ||||||
Borrowings, interest rate | 0.74% | ||||||
Amount outstanding | $ 17 | ||||||
Bridge Commitment | Line of Credit | Bridge Loan | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 16,000 | ||||||
Bridge Commitment | Line of Credit | Bridge Loan | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 11,700 | ||||||
Amount terminated | 4,300 | ||||||
Term Loan Agreement | Line of Credit | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | 4,300 | ||||||
Term Loan Agreement | Line of Credit | Unsecured Debt | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 4,300 | ||||||
Commitment fees percentage | 0.10% | ||||||
Term Loan Agreement, Tranche One | Line of Credit | Unsecured Debt | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 1,450 | ||||||
Debt instrument, term | 2 years | ||||||
Term Loan Agreement, Tranche One | Line of Credit | Unsecured Debt | Secured Overnight Financing Rate (SOFR) | Minimum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0.875% | ||||||
Term Loan Agreement, Tranche One | Line of Credit | Unsecured Debt | Secured Overnight Financing Rate (SOFR) | Maximum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 1.375% | ||||||
Term Loan Agreement, Tranche One | Line of Credit | Unsecured Debt | ABR | Minimum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0% | ||||||
Term Loan Agreement, Tranche One | Line of Credit | Unsecured Debt | ABR | Maximum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0.375% | ||||||
Term Loan Agreement, Tranche Two | Line of Credit | Unsecured Debt | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 2,850 | ||||||
Debt instrument, term | 3 years | ||||||
Term Loan Agreement, Tranche Two | Line of Credit | Unsecured Debt | Secured Overnight Financing Rate (SOFR) | Minimum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 1% | ||||||
Term Loan Agreement, Tranche Two | Line of Credit | Unsecured Debt | Secured Overnight Financing Rate (SOFR) | Maximum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 1.50% | ||||||
Term Loan Agreement, Tranche Two | Line of Credit | Unsecured Debt | ABR | Minimum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0% | ||||||
Term Loan Agreement, Tranche Two | Line of Credit | Unsecured Debt | ABR | Maximum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0.50% | ||||||
Senior Unsecured Committed Multicurrency Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 850 | ||||||
Unsecured Uncommitted Incremental Revolving Loan Facility | Line of Credit | Revolving Credit Facility | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 150 | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Amount outstanding | $ 0 | $ 0 | |||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | Minimum | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fees percentage | 0.08% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | Minimum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fees percentage | 0.09% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | Maximum | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fees percentage | 0.175% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | Maximum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fees percentage | 0.15% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0.795% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0.785% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 1.20% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0.975% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | ABR | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | ABR | Minimum | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0% | ||||||
Revolving Credit Agreement | Line of Credit | Revolving Credit Facility | ABR | Maximum | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, interest rate | 0.20% |
Leases - Additional Information
Leases - Additional Information (Details) | Jan. 31, 2024 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term | 10 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Leases [Abstract] | ||
Operating lease expense | $ 23,595 | $ 24,348 |
Variable lease expense | 5,627 | 4,325 |
Total lease expense | $ 29,222 | $ 28,673 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 24,172 | $ 21,053 |
ROU assets obtained in exchange for operating lease liabilities | $ 5,004 | $ 44,339 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate Information (Details) | Jan. 31, 2024 | Oct. 31, 2023 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 8 years 1 month 24 days | 8 years 4 months 2 days |
Weighted-average discount rate | 2.52% | 2.50% |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Details) $ in Thousands | Jan. 31, 2024 USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2024 | $ 76,588 |
2025 | 105,503 |
2026 | 94,057 |
2027 | 91,465 |
2028 | 77,332 |
2029 and thereafter | 282,776 |
Total future minimum lease payments | 727,721 |
Less: Imputed interest | 74,712 |
Total lease liabilities | $ 653,009 |
Leases - Lease Receipts (Detail
Leases - Lease Receipts (Details) $ in Thousands | Jan. 31, 2024 USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2024 | $ 18,518 |
2025 | 25,351 |
2026 | 26,230 |
2027 | 27,376 |
2028 | 27,557 |
2029 and thereafter | 56,491 |
Total | $ 181,523 |
Redeemable Non-controlling In_2
Redeemable Non-controlling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2024 | Apr. 30, 2022 | Oct. 31, 2023 | |
Noncontrolling Interest [Line Items] | |||
Redeemable non-controlling interest | $ 31,043 | $ 31,043 | |
OpenLight | |||
Noncontrolling Interest [Line Items] | |||
Percent of company acquired | 75% | ||
Payment to acquire business | $ 90,000 | ||
Redeemable noncontrolling interest, redemption value | 30,000 | ||
Redeemable noncontrolling interest, put option value | 10,100 | ||
Consideration transferred including redeemable noncontrolling interest | $ 100,100 | ||
Current ownership percentage | 71% | ||
Net loss incurred by OpenLight | $ 9,400 | ||
Net loss, attributable to redeemable non-controlling interest | 2,300 | ||
Redeemable non-controlling interest | $ 31,000 | ||
OpenLight | Juniper Networks, Inc | |||
Noncontrolling Interest [Line Items] | |||
Percent of equity interests held by non-controlling interest | 25% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (163,224) | $ (196,414) |
Cumulative currency translation adjustments | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | (151,814) | (170,104) |
Unrealized gains (losses) on derivative instruments, net of taxes | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income (loss) | (11,336) | (25,224) |
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) | $ (74) | $ (1,086) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) - Reclassification out of Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications into net income | $ (3,278) | $ (8,357) |
Revenues | Unrealized gains (losses) on derivative instruments, net of taxes | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications into net income | (3,263) | (3,967) |
Operating expenses | Unrealized gains (losses) on derivative instruments, net of taxes | ||
Reclassification Adjustment Balance In Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications into net income | $ (15) | $ (4,390) |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ in Millions | Jan. 31, 2024 | Oct. 31, 2022 |
Stock Repurchase Program [Abstract] | ||
Stock repurchase program authorized amount | $ 1,500 | |
Remaining amount available for further repurchases | $ 194.3 |
Stock Repurchase Program - Stoc
Stock Repurchase Program - Stock Repurchase Activities (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2023 | Feb. 28, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | |
Accelerated Share Repurchases [Line Items] | ||||
Total shares repurchased (in shares) | 74,000 | 806,000 | ||
Total cost of the repurchased shares | $ 45,000 | $ 260,724 | ||
Reissuance of treasury stock | 557,000 | 811,000 | ||
Accelerated Share Repurchase Program August 2023 | ||||
Accelerated Share Repurchases [Line Items] | ||||
Share repurchases settlement of equity forward (in shares) | 73,903 | |||
Stock repurchase program, prepayment during period, derivative settlement | $ 45,000 | |||
Accelerated Share Repurchase Program December 2022 | ||||
Accelerated Share Repurchases [Line Items] | ||||
Share repurchases settlement of equity forward (in shares) | 107,020 | |||
Stock repurchase program, prepayment during period, derivative settlement | $ 45,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | $ 180,652 | $ 134,227 |
Income tax benefit | (29,410) | (21,570) |
Stock-based compensation expense after taxes | 151,242 | 112,657 |
Cost of products | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | 20,680 | 16,029 |
Cost of maintenance and service | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | 9,176 | 7,155 |
Research and development expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | 94,888 | 69,231 |
Sales and marketing expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | 35,353 | 24,907 |
General and administrative expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | $ 20,555 | $ 16,905 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-Based Payment Award, Restricted Stock Units, Valuation Assumptions (Details) - Restricted Stock Units (RSUs), Market-based - $ / shares | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Expected life (in years) | 2 years 10 months 20 days | 10 months 24 days |
Risk-free interest rate | 4.41% | 4.63% |
Volatility | 34.03% | 42.86% |
Grant date fair value (in usd per share) | $ 600.29 | $ 408.55 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 3 Months Ended |
Jan. 31, 2024 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized share-based compensation expense | $ 1,600 |
Weighted-average period of total compensation costs to be recognized in years | 2 years 8 months 12 days |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized share-based compensation expense | $ 27.5 |
Weighted-average period of total compensation costs to be recognized in years | 2 years |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Intrinsic Value of Equity Awards Exercised (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Stock Compensation [Abstract] | ||
Intrinsic value of awards exercised | $ 27,855 | $ 54,776 |
Net Income Per Share (Detail)
Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Numerator: | ||
Net income | $ 449,112 | $ 271,536 |
Denominator: | ||
Weighted-average common shares for basic net income per share (shares) | 152,311 | 152,401 |
Dilutive effect of common share equivalents from equity-based compensation (shares) | 3,023 | 2,675 |
Weighted-average common shares for diluted net income per share (shares) | 155,334 | 155,076 |
Net income per share attributed to Synopsys: | ||
Basic (in USD per share) | $ 2.95 | $ 1.78 |
Diluted (in USD per share) | $ 2.89 | $ 1.75 |
Anti-dilutive employee stock-based awards excluded (shares) | 702 | 527 |
Segment Disclosure - Additional
Segment Disclosure - Additional information (Detail) | 3 Months Ended |
Jan. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segment | 3 |
Segment Disclosure - Schedule o
Segment Disclosure - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 1,649,230 | $ 1,361,340 |
Adjusted operating income | 359,620 | 255,932 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Adjusted operating income | $ 638,358 | $ 479,167 |
Adjusted operating margin | 39% | 35% |
Operating Segments | Design Automation: | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 985,339 | $ 889,846 |
Adjusted operating income | $ 364,883 | $ 346,009 |
Adjusted operating margin | 37% | 39% |
Operating Segments | Design IP: | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 525,650 | $ 343,651 |
Adjusted operating income | $ 249,494 | $ 117,625 |
Adjusted operating margin | 47% | 34% |
Operating Segments | Software Integrity: | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 138,241 | $ 127,843 |
Adjusted operating income | $ 23,981 | $ 15,533 |
Adjusted operating margin | 17% | 12% |
Segment Disclosure - Schedule_2
Segment Disclosure - Schedule of Segment Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Operating income | $ 359,620 | $ 255,932 |
Amortization of acquired intangible assets | (27,053) | (25,916) |
Stock-based compensation expense | (180,652) | (134,227) |
Deferred compensation plan | 40,101 | 20,197 |
Restructuring charges | 0 | (40,859) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income | 638,358 | 479,167 |
Reconciling items: | ||
Segment Reporting Information [Line Items] | ||
Amortization of acquired intangible assets | (27,053) | (25,357) |
Stock-based compensation expense | (180,652) | (134,227) |
Deferred compensation plan | (40,101) | (20,197) |
Restructuring charges | 0 | (40,859) |
Acquisition/divestiture related items | $ (30,932) | $ (2,595) |
Segment Disclosure - Revenues R
Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Schedule of Revenues from External Customers [Line Items] | ||
Total revenue | $ 1,649,230 | $ 1,361,340 |
United States | ||
Schedule of Revenues from External Customers [Line Items] | ||
Total revenue | 807,618 | 671,782 |
Europe | ||
Schedule of Revenues from External Customers [Line Items] | ||
Total revenue | 159,113 | 135,007 |
China | ||
Schedule of Revenues from External Customers [Line Items] | ||
Total revenue | 249,975 | 197,778 |
Korea | ||
Schedule of Revenues from External Customers [Line Items] | ||
Total revenue | 184,600 | 145,792 |
Other | ||
Schedule of Revenues from External Customers [Line Items] | ||
Total revenue | $ 247,924 | $ 210,981 |
Interest and Other Income (Ex_3
Interest and Other Income (Expense), Net - Components of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | |
Other Income (Expense) | |||
Interest income | $ 13,150 | $ 6,899 | |
Interest expense | (1,324) | (264) | |
Gains (losses) on assets related to deferred compensation plan | 40,101 | 20,197 | |
Foreign currency exchange gains (losses) | 3,365 | 2,700 | |
Gain on sale of strategic investments | $ 55,100 | 55,077 | 0 |
Other, net | (4,885) | (6,240) | |
Total | $ 105,484 | $ 23,292 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes and Effective Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 465,104 | $ 279,224 |
Provision (benefit) for income taxes | $ 18,897 | $ 10,597 |
Effective tax rate | 4.10% | 3.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2024 | Jul. 31, 2023 | Oct. 31, 2017 | May 17, 2023 | |
Taxes [Line Items] | ||||
Statutory federal income tax rate | 21% | |||
Minimum | ||||
Taxes [Line Items] | ||||
Estimated potential decrease in underlying unrecognized tax benefits | $ 0 | |||
Maximum | ||||
Taxes [Line Items] | ||||
Estimated potential decrease in underlying unrecognized tax benefits | $ 5.4 | |||
Synopsys Hungary | Foreign Tax Authority | Tax Year 2011 - Tax Year 2013 | Hungarian Tax Authority | ||||
Taxes [Line Items] | ||||
Aggregate tax assessment (refund) | $ 25 | $ (39.1) | ||
Estimate of additional penalties and interest | $ 11 | |||
Release of unrecognized tax benefit and offsetting foreign tax credits, net benefit | $ 23.8 |