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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Apr. 30, 2019

Accounting Policies [Abstract]

Schedule of Topic 606 Impact

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 April 30, 2019:

	As reported under ASC 606				Adjustments				Adjusted balance under ASC 605
	(in thousands)
Receivables, net	$	526,691			$	61,849			$	588,540
Prepaid and other current assets	259,849				(168,487		)		91,362
Deferred income taxes	352,667				67,763				420,430
Other long-term assets	380,682				(96,441		)		284,241
Accounts payable and other accrued liabilities	365,848				(9,499		)		356,349
Deferred revenue	1,194,404				91,067				1,285,471
Long-term deferred revenue	60,825				73,454				134,279
Other long-term liabilities (1)	324,217				(16,671		)		307,546
Retained earnings	2,912,811				(273,667		)		2,639,144

(1) Includes long-term deferred tax liabilities.

The following table summarizes the effects of adopting ASC 606 on the unaudited condensed consolidated statements of operations for the three and six months ended April 30, 2019:

	Three Months Ended   April 30, 2019												Six Months Ended   April 30, 2019
	As reported under ASC 606				Adjustments				Adjusted under ASC 605				As reported under ASC 606				Adjustments				Adjusted under ASC 605
	(in thousands, except per share amounts)
Revenue:
Time-based products	$	558,305			$	86,762			$	645,067			$	1,112,021			$	102,618			$	1,214,639
Upfront products	143,401				(61,057		)		82,344				273,914				(77,843		)		196,071
Maintenance and service	134,536				(9,379		)		125,157				270,708				(30,793		)		239,915
Total revenue	836,242				16,326				852,568				1,656,643				(6,018		)		1,650,625
Cost of Revenue:
Products	116,010				—				116,010				232,630				—				232,630
Maintenance and service	59,788				—				59,788				118,617				—				118,617
Amortization of intangible assets	14,881				—				14,881				32,324				—				32,324
Total cost of revenue	190,679				—				190,679				383,571				—				383,571
Gross margin	645,563				16,326				661,889				1,273,072				(6,018		)		1,267,054
Operating expenses:
Research and development	290,299				—				290,299				561,625				—				561,625
Sales and marketing	158,652				1,942				160,594				314,611				13,126				327,737
General and administrative	56,351				—				56,351				98,412				—				98,412
Amortization of intangible assets	10,316				—				10,316				21,100				—				21,100
Restructuring	14,443				—				14,443				14,408				—				14,408
Total operating expenses	530,061				1,942				532,003				1,010,156				13,126				1,023,282
Operating income	115,502				14,384				129,886				262,916				(19,144		)		243,772
Other income (expense), net	18,415				—				18,415				18,056				—				18,056
Income before provision for income taxes	133,917				14,384				148,301				280,972				(19,144		)		261,828
Provision (benefit) for income taxes	15,707				2,599				18,306				9,248				(3,071		)		6,177
Net income	$	118,210			$	11,785			$	129,995			$	271,724			$	(16,073	)		$	255,651
Net income per share:
Basic	$	0.79			$	0.08			$	0.87			$	1.82			$	(0.11	)		$	1.71
Diluted	$	0.77			$	0.07			$	0.84			$	1.77			$	(0.10	)		$	1.67
Shares used in computing per share amounts:
Basic	149,712								149,712				149,500								149,500
Diluted	153,904								153,904				153,383								153,383

Schedule of Disaggregation of Revenue

The following table shows the percentage of revenue by product groups:

	Three Months Ended   April 30, 2019						Six Months Ended   April 30, 2019
	2019			2018			2019			2018
EDA	58	%		62	%		59	%		63	%
IP & System Integration	31	%		29	%		30	%		29	%
Software Integrity Products & Services	10	%		9	%		10	%		8	%
Other	1	%		—	%		1	%		—	%
Total	100	%		100	%		100	%		100	%

Schedule of Contract Assets and Liabilities

Contract balances are as follows:

	As of April 30, 2019				As of October 31, 2018
					as adjusted
	(in thousands)
Contract assets	$	168,487			$	126,897
Unbilled receivables	38,133				36,699
Deferred revenue	1,255,229				1,104,110

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