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v3.19.2

Summary of Significant Accounting Policies (Tables) | 9 Months Ended
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Jul. 31, 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 July 31, 2019:
| As reported under ASC 606 |  | Adjustments |  | Adjusted balance under ASC 605
| (in thousands)
Receivables, net | $ | 457,390 |  |  | $ | 64,122 |  |  | $ | 521,512 |
Prepaid and other current assets | 288,616 |  |  | (205,822 | ) |  | 82,794 |
Deferred income taxes | 339,354 |  |  | 76,891 |  |  | 416,245 |
Other long-term assets | 383,509 |  |  | (94,626 | ) |  | 288,883 |
Accounts payable and other accrued liabilities | 471,629 |  |  | (10,413 | ) |  | 461,216 |
Deferred revenue | 1,138,993 |  |  | 132,450 |  |  | 1,271,443 |
Long-term deferred revenue | 91,229 |  |  | 41,585 |  |  | 132,814 |
Other long-term liabilities (1) | 338,928 |  |  | (16,671 | ) |  | 322,257 |
Retained earnings | 3,003,430 |  |  | (306,386 | ) |  | 2,697,044 |
(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 nine months ended July 31, 2019:
| Three Months Ended July 31, 2019 |  | Nine Months Ended July 31, 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 | $ | 537,569 |  |  | $ | 55,604 |  |  | $ | 593,173 |  |  | $ | 1,649,590 |  |  | $ | 158,222 |  |  | $ | 1,807,812 |
Upfront products | 177,552 |  |  | (73,267 | ) |  | 104,285 |  |  | 451,466 |  |  | (151,110 | ) |  | 300,356 |
Maintenance and service | 137,849 |  |  | (26,914 | ) |  | 110,935 |  |  | 408,557 |  |  | (57,707 | ) |  | 350,850 |
Total revenue | 852,970 |  |  | (44,577 | ) |  | 808,393 |  |  | 2,509,613 |  |  | (50,595 | ) |  | 2,459,018 |
Cost of Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |
Products | 113,533 |  |  | — |  |  | 113,533 |  |  | 346,163 |  |  | — |  |  | 346,163 |
Maintenance and service | 59,496 |  |  | — |  |  | 59,496 |  |  | 178,113 |  |  | — |  |  | 178,113 |
Amortization of intangible assets | 13,603 |  |  | — |  |  | 13,603 |  |  | 45,927 |  |  | — |  |  | 45,927 |
Total cost of revenue | 186,632 |  |  | — |  |  | 186,632 |  |  | 570,203 |  |  | — |  |  | 570,203 |
Gross margin | 666,338 |  |  | (44,577 | ) |  | 621,761 |  |  | 1,939,410 |  |  | (50,595 | ) |  | 1,888,815 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Research and development | 284,804 |  |  | — |  |  | 284,804 |  |  | 846,429 |  |  | — |  |  | 846,429 |
Sales and marketing | 157,109 |  |  | (2,731 | ) |  | 154,378 |  |  | 471,720 |  |  | 10,395 |  |  | 482,115 |
General and administrative | 67,382 |  |  | — |  |  | 67,382 |  |  | 165,794 |  |  | — |  |  | 165,794 |
Amortization of intangible assets | 10,111 |  |  | — |  |  | 10,111 |  |  | 31,211 |  |  | — |  |  | 31,211 |
Restructuring | 19,338 |  |  | — |  |  | 19,338 |  |  | 33,746 |  |  | — |  |  | 33,746 |
Total operating expenses | 538,744 |  |  | (2,731 | ) |  | 536,013 |  |  | 1,548,900 |  |  | 10,395 |  |  | 1,559,295 |
Operating income | 127,594 |  |  | (41,846 | ) |  | 85,748 |  |  | 390,510 |  |  | (60,990 | ) |  | 329,520 |
Other income (expense), net | 5,317 |  |  | — |  |  | 5,317 |  |  | 23,373 |  |  | — |  |  | 23,373 |
Income before provision for income taxes | 132,911 |  |  | (41,846 | ) |  | 91,065 |  |  | 413,883 |  |  | (60,990 | ) |  | 352,893 |
Provision (benefit) for income taxes | 32,982 |  |  | (9,127 | ) |  | 23,855 |  |  | 42,230 |  |  | (12,198 | ) |  | 30,032 |
Net income | $ | 99,929 |  |  | $ | (32,719 | ) |  | $ | 67,210 |  |  | $ | 371,653 |  |  | $ | (48,792 | ) |  | $ | 322,861 |
Net income per share: |  |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 0.67 |  |  | $ | (0.22 | ) |  | $ | 0.45 |  |  | $ | 2.48 |  |  | $ | (0.32 | ) |  | $ | 2.16 |
Diluted | $ | 0.65 |  |  | $ | (0.22 | ) |  | $ | 0.43 |  |  | $ | 2.42 |  |  | $ | (0.32 | ) |  | $ | 2.10 |
Shares used in computing per share amounts: |  |  |  |  |  |  |  |  |  |  |  |
Basic | 150,123 |  |  |  |  | 150,123 |  |  | 149,708 |  |  |  |  | 149,708 |
Diluted | 154,600 |  |  |  |  | 154,600 |  |  | 153,859 |  |  |  |  | 153,859 |
Schedule of Disaggregation of Revenue | The following table shows the percentage of revenue by product groups:
| Three Months Ended July 31, |  | Nine Months Ended July 31,
| 2019 |  | 2018 |  | 2019 |  | 2018
EDA | 57 | % |  | 64 | % |  | 59 | % |  | 63 | %
IP & System Integration | 33 | % |  | 27 | % |  | 31 | % |  | 28 | %
Software Integrity Products & Services | 10 | % |  | 9 | % |  | 10 | % |  | 9 | %
Other | — | % |  | — | % |  | — | % |  | — | %
Total | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
Schedule of Contract Assets and Liabilities | Contract balances are as follows:
| As of July 31, 2019 |  | As of October 31, 2018
|  |  | as adjusted
| (in thousands)
Contract assets | $ | 205,822 |  |  | $ | 126,897 |
Unbilled receivables | 38,965 |  |  | 36,699 |
Deferred revenue | 1,230,222 |  |  | 1,104,110 |

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