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Income Taxes (Tables) | 12 Months Ended
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Oct. 31, 2015
Income Tax Disclosure [Abstract] |
Domestic and Foreign Components of Total Income Before Provision for Income Tax | The domestic and foreign components of the Company’s total income (loss) before provision for income taxes are as follows:
| Year Ended October 31,
| 2015 |  | 2014 |  | 2013
| (in thousands)
United States | $ | 42,571 |  |  | $ | (7,638 | ) |  | $ | 61,818 |
Foreign | 239,039 |  |  | 279,780 |  |  | 213,848 |
| $ | 281,610 |  |  | $ | 272,142 |  |  | $ | 275,666 |
Components of (Benefit) Provision for Income Taxes | The components of the (benefit) provision for income taxes were as follows:
| Year Ended October 31,
| 2015 |  | 2014 |  | 2013
| (in thousands)
Current: |  |  |  |  |
Federal | $ | (21,911 | ) |  | $ | (14,951 | ) |  | $ | 11,692 |
State | 1,385 |  |  | 279 |  |  | (5,949 | )
Foreign | 39,319 |  |  | 42,085 |  |  | 29,428 |
| 18,793 |  |  | 27,413 |  |  | 35,171 |
Deferred: |  |  |  |  |
Federal | 44,462 |  |  | (4,612 | ) |  | 4,969 |
State | (2,282 | ) |  | (4,141 | ) |  | 933 |
Foreign | (5,297 | ) |  | (5,642 | ) |  | (13,207 | )
| 36,883 |  |  | (14,395 | ) |  | (7,305 | )
Provision (Benefit) for income taxes | $ | 55,676 |  |  | $ | 13,018 |  |  | $ | 27,866 |
Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate | The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows:
| Year Ended October 31,
| 2015 |  | 2014 |  | 2013
| (in thousands)
Statutory federal tax | $ | 98,564 |  |  | $ | 95,251 |  |  | $ | 96,483 |
State tax (benefit), net of federal effect | (4,764 | ) |  | (4,306 | ) |  | (2,697 | )
Tax credits (1) | (13,301 | ) |  | (5,153 | ) |  | (24,972 | )
Tax on foreign earnings less than U.S. statutory tax | (56,536 | ) |  | (61,376 | ) |  | (40,156 | )
Deferred tax reversal resulting from merger of foreign affiliate | — |  |  | — |  |  | (6,808 | )
Tax settlements | (6,251 | ) |  | (19,645 | ) |  | (1,130 | )
Stock based compensation | 5,406 |  |  | 5,675 |  |  | 4,671 |
Changes in valuation allowance | (216 | ) |  | (235 | ) |  | (776 | )
Federal statute lapses | (2,265 | ) |  | (6,746 | ) |  | — |
Integration of acquired technologies | 33,015 |  |  | 4,715 |  |  | 3,486 |
Other | 2,024 |  |  | 4,838 |  |  | (235 | )
| $ | 55,676 |  |  | $ | 13,018 |  |  | $ | 27,866 |
(1) | As a result of the reinstatement of the U.S. federal research tax credit in fiscal 2013, the Company reflected a tax benefit of approximately $19.0 million in the above amount for the period January 1, 2012 through October 31, 2013. The credit expired on December 31, 2013, resulting in only two months of credit for fiscal 2014. The credit was reinstated in fiscal 2015, resulting in a tax benefit of approximately $12.4 million in the above amount for the period January 1 through December 31, 2014.
Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities were as follows:
| October 31,
| 2015 |  | 2014
| (in thousands)
Net deferred tax assets: |  |  |
Deferred tax assets: |  |  |
Accruals and reserves | $ | 40,373 |  |  | $ | 28,608 |
Deferred revenue | 36,460 |  |  | 42,766 |
Deferred compensation | 69,716 |  |  | 56,920 |
Capitalized costs | 60,998 |  |  | 66,616 |
Capitalized research and development costs | 24,748 |  |  | 32,710 |
Stock compensation | 18,001 |  |  | 18,508 |
Tax loss carryovers | 50,987 |  |  | 64,273 |
Foreign tax credit carryovers | 1,064 |  |  | 18,846 |
Research and other tax credit carryovers | 80,327 |  |  | 110,247 |
Other | 5,340 |  |  | 4,689 |
Gross deferred tax assets | 388,014 |  |  | 444,183 |
Valuation allowance | (48,700 | ) |  | (45,996 | )
Total deferred tax assets | 339,314 |  |  | 398,187 |
Deferred tax liabilities: |  |  |
Intangible assets | 66,345 |  |  | 81,218 |
Undistributed earnings of foreign subsidiaries | 933 |  |  | 726 |
Total deferred tax liabilities | 67,278 |  |  | 81,944 |
Net deferred tax assets | $ | 272,036 |  |  | $ | 316,243 |
Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities | The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities:
Carryforward | Amount |  | Expiration Date
| (in thousands) |  |
Federal net operating loss carryforward | $ | 108,533 |  |  | 2016-2034
Federal research credit carryforward | 120,243 |  |  | 2019-2035
Federal foreign tax credit carryforward | 4,586 |  |  | 2017-2023
International foreign tax credit carryforward | 10,104 |  |  | Indefinite
California research credit carryforward | 135,858 |  |  | Indefinite
Other state research credit carryforward | 5,395 |  |  | 2016-2030
State net operating loss carryforward | 217,914 |  |  | 2016-2035
Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit | reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows:
| As of October 31, 2015 |  | As of October 31, 2014
| (in thousands)
Beginning balance | $ | 124,102 |  |  | $ | 117,760 |
Increases in unrecognized tax benefits related to prior year tax positions | 10,922 |  |  | 2,037 |
Decreases in unrecognized tax benefits related to prior year tax positions | (7,526 | ) |  | (23,271 | )
Increases in unrecognized tax benefits related to current year tax positions | 13,232 |  |  | 35,277 |
Decreases in unrecognized tax benefits related to settlements with taxing authorities | — |  |  | (1,858 | )
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations | (5,996 | ) |  | (8,816 | )
Increases in unrecognized tax benefits acquired | 976 |  |  | 3,575 |
Changes in unrecognized tax benefits due to foreign currency translation | (3,656 | ) |  | (602 | )
| $ | 132,054 |  |  | $ | 124,102 |
Subsidiaries Remain Subject to Tax Examination | The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions:
Jurisdiction | Year(s) Subject to Examination
United States—Synopsys | Fiscal 2015
United States—Magma Design Automation | Fiscal 2012
California—Synopsys | Fiscal years after 2010
California—Magma Design Automation | Fiscal years after 2010
Hungary | Fiscal years after 2008
Ireland, Japan, and Taiwan | Fiscal years after 2009

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 + Details
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