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Summary of Significant Accounting Policies (Tables) | 3 Months Ended
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Jan. 31, 2019
Accounting Policies [Abstract] |
Schedule of Topic 606 Impact | The following table summarizes the effects of adopting ASC 606 on the unaudited condensed consolidated statements of operations for the three months ended January 31, 2019:
| As reported under ASC 606 |  | Adjustments |  | Adjusted under ASC 605
| (in thousands, except per share amounts)
Revenue: |  |  |  |  |
Time-based products | $ | 553,716 |  |  | $ | 15,856 |  |  | $ | 569,572 |
Upfront products | 130,513 |  |  | (16,786 | ) |  | 113,727 |
Maintenance and service | 136,172 |  |  | (21,414 | ) |  | 114,758 |
Total revenue | 820,401 |  |  | (22,344 | ) |  | 798,057 |
Cost of Revenue: |  |  |  |  |  |
Products | 116,620 |  |  | — |  |  | 116,620 |
Maintenance and service | 58,829 |  |  | — |  |  | 58,829 |
Amortization of intangible assets | 17,443 |  |  | — |  |  | 17,443 |
Total cost of revenue | 192,892 |  |  | — |  |  | 192,892 |
Gross margin | 627,509 |  |  | (22,344 | ) |  | 605,165 |
Operating expenses: |  |  |  |  |  |
Research and development | 271,326 |  |  | — |  |  | 271,326 |
Sales and marketing | 155,959 |  |  | 11,184 |  |  | 167,143 |
General and administrative | 42,061 |  |  | — |  |  | 42,061 |
Amortization of intangible assets | 10,784 |  |  | — |  |  | 10,784 |
Restructuring | (35 | ) |  | — |  |  | (35 | )
Total operating expenses | 480,095 |  |  | 11,184 |  |  | 491,279 |
Operating income | 147,414 |  |  | (33,528 | ) |  | 113,886 |
Other income (expense), net | (359 | ) |  | — |  |  | (359 | )
Income (loss) before provision for income taxes | 147,055 |  |  | (33,528 | ) |  | 113,527 |
Provision (benefit) for income taxes | (6,459 | ) |  | (5,670 | ) |  | (12,129 | )
Net income (loss) | $ | 153,514 |  |  | $ | (27,858 | ) |  | $ | 125,656 |
Net income (loss) per share: |  |  |  |  | — |
Basic | $ | 1.03 |  |  | $ | (0.19 | ) |  | $ | 0.84 |
Diluted | $ | 1.01 |  |  | $ | (0.19 | ) |  | $ | 0.82 |
Shares used in computing per share amounts: |  |  |  |  | — |
Basic | 149,288 |  |  |  |  | 149,288 |
Diluted | 152,661 |  |  |  |  | 152,661 |
The following table summarizes the effects of adopting ASC 606 on certain account balances of the unaudited condensed consolidated balance sheet that were impacted as of January 31, 2019:
| As reported under ASC 606 |  | Adjustments |  | Adjusted balance under ASC 605
| (in thousands)
Receivables, net | $ | 762,292 |  |  | $ | 73,234 |  |  | $ | 835,526 |
Prepaid and other current assets | 249,927 |  |  | (167,729 | ) |  | 82,198 |
Deferred income taxes | 337,824 |  |  | 70,362 |  |  | 408,186 |
Other long-term assets | 358,527 |  |  | (95,715 | ) |  | 262,812 |
Accounts payable and other accrued liabilities | 335,341 |  |  | (10,713 | ) |  | 324,628 |
Deferred revenue | 1,262,201 |  |  | 112,374 |  |  | 1,374,575 |
Long-term deferred revenue | 63,013 |  |  | 80,614 |  |  | 143,627 |
Other long-term liabilities (1) | 296,098 |  |  | (16,671 | ) |  | 279,427 |
Retained earnings | 2,820,910 |  |  | (285,452 | ) |  | 2,535,458 |
(1) Includes long-term deferred tax liabilities.
Schedule of Disaggregation of Revenue | The following table shows the percentage of revenue by product groups:
| Three Months Ended January 31,
| 2019 |  | 2018
EDA | 61 | % |  | 63 | %
IP & System Integration | 29 | % |  | 28 | %
Software Integrity Products & Services | 10 | % |  | 8 | %
Other | — | % |  | 1 | %
Total | 100 | % |  | 100 | %
Schedule of Contract Assets and Liabilities | Contract balances are as follows:
| As of January 31, 2019 |  | As of October 31, 2018
|  |  | as adjusted
| (in thousands)
Contract assets | $ | 167,729 |  |  | $ | 126,897 |
Unbilled receivables | 36,922 |  |  | 36,699 |
Deferred revenue | 1,325,214 |  |  | 1,104,110 |

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