Stock Repurchase Program

The Company’s Board of Directors (Board) approved a stock repurchase program in 2002 pursuant to which the Company was authorized to purchase up to $500.0 million of its common stock, and has periodically replenished the stock repurchase program to such amount. The Board last replenished the stock repurchase program up to $500.0 million on August 31, 2016. The program does not obligate Synopsys to acquire any particular amount of common stock, and the program may be suspended or terminated at any time by Synopsys’ Chief Financial Officer or the Board. The Company repurchases shares to offset dilution caused by ongoing stock issuances from existing equity plans for equity compensation awards and issuances related to acquisitions, and when management believes it is a good use of cash. Repurchases are transacted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934 (Exchange Act) and may be made through any means including, but not limited to, open market purchases, plans executed under Rule 10b5-1(c) of the Exchange Act and structured transactions. As of October 31, 2016, $435.5 million remained available for further repurchases under the program.

In August 2015, the Company entered into an accelerated share repurchase agreement (the August 2015 ASR) to repurchase an aggregate of $100.0 million of the Company’s common stock. Pursuant to the August 2015 ASR, the Company made a prepayment of $100.0 million and received an initial share delivery of shares valued at $80.0 million. The remaining balance of $20.0 million was settled in the first quarter of fiscal 2016. Total shares purchased under the August 2015 ASR were approximately 2.1 million shares, at an average purchase price of $48.06 per share.

In December 2015, the Company entered into two simultaneous accelerated share repurchase agreements (December 2015 ASRs) to repurchase an aggregate of $200.0 million of the Company’s common stock. Pursuant to the December 2015 ASRs, the Company made a prepayment of $200.0 million and received initial share deliveries of shares valued at $160.0 million. The December 2015 ASRs expired on April 29, 2016 with $20.0 million settled in April 2016 and the final $20.0 million settled in May 2016. Total shares purchased under the December 2015 ASRs were approximately 4.5 million shares, at an average purchase price of $44.40 per share.

In May 2016, the Company entered into an accelerated share repurchase agreement (the May 2016 ASR) to repurchase an aggregate of $125.0 million of the Company’s common stock. Pursuant to the May 2016 ASR, the Company made a prepayment of $125.0 million and received initial share deliveries of shares valued at $100.0 million. The remaining balance of $25.0 million was settled in August 2016. Total shares purchased under the May 2016 ASR were approximately 2.4 million shares, at an average purchase price of $52.98 per share.

In December 2016, the Company entered into an accelerated share repurchase agreement (the December 2016 ASR) to repurchase an aggregate of $100.0 million of the Company’s common stock. Pursuant to the December 2016 ASR, the Company made a prepayment of $100.0 million and received initial share deliveries of shares valued at $80.0 million. The remaining balance of $20.0 million is anticipated to be settled on or before February 16, 2017, upon completion of the repurchase. Under the terms of the December 2016 ASR, the specific number of shares that the Company ultimately repurchases will be based on the volume-weighted average share price of the Company’s common stock during the repurchase period, less a discount.

The following table summarizes stock repurchase activities as well as the reissuance of treasury stock for employee stock compensation purposes:



	Year Ended October 31,
	2016		2015		2014
	(in thousands, except per share price)
Shares repurchased	8,506		5,672		3,092
Average purchase price per share	$	49.37	$	45.84	$	38.72
Aggregate purchase price	$	420,000	$	260,000	$	119,747
Reissuance of treasury stock	4,803		4,864		4,888