10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(MARK ONE)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JULY 31, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                      TO

COMMISSION FILE NUMBER: 0-19807

SYNOPSYS, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	56-1546236
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

690 EAST MIDDLEFIELD ROAD

MOUNTAIN VIEW, CA 94043

(Address of principal executive offices, including zip code)

(650) 584-5000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (l) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	ý	Accelerated Filer	¨
Non-accelerated filer	¨  (Do not check if smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

As of August 20, 2015, there were 155,947,407 shares of the registrant’s common stock outstanding.

SYNOPSYS, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE FISCAL QUARTER ENDED JULY 31, 2015

TABLE OF CONTENTS

		Page
PART I.	Financial Information	1
Item 1.	Financial Statements	1
	Unaudited Condensed Consolidated Balance Sheets	1
	Unaudited Condensed Consolidated Statements of Operations	2
	Unaudited Condensed Consolidated Statements of Comprehensive Income	3
	Unaudited Condensed Consolidated Statements of Cash Flows	4
	Notes to Unaudited Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	32
Item 4.	Controls and Procedures	33
PART II.	Other Information	34
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 6.	Exhibits	47
Signatures		48

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SYNOPSYS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value amounts)

	July 31, 2015			October 31, 2014*
ASSETS
Current assets:
Cash and cash equivalents	$	986,423		$	985,762
Short-term investments	136,496			—
Total cash, cash equivalents and short-term investments	1,122,919			985,762
Accounts receivable, net	307,825			326,727
Deferred income taxes	75,939			111,449
Income taxes receivable and prepaid taxes	36,344			26,496
Prepaid and other current assets	84,510			54,301
Total current assets	1,627,537			1,504,735
Property and equipment, net	260,667			249,098
Goodwill	2,335,816			2,255,708
Intangible assets, net	318,499			365,030
Long-term prepaid taxes	13,800			17,645
Long-term deferred income taxes	211,733			208,156
Other long-term assets	185,920			175,127
Total assets	$	4,953,972		$	4,775,499
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	330,825		$	397,113
Accrued income taxes	25,750			31,404
Deferred revenue	912,768			928,242
Short-term debt	190,000			30,000
Total current liabilities	1,459,343			1,386,759
Long-term accrued income taxes	39,207			50,952
Long-term deferred revenue	90,569			77,646
Long-term debt	22,500			45,000
Other long-term liabilities	204,105			158,972
Total liabilities	1,815,724			1,719,329
Stockholders’ equity:
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding	—			—
Common stock, $0.01 par value: 400,000 shares authorized; 155,929 and 155,965 shares outstanding, respectively	1,559			1,560
Capital in excess of par value	1,604,994			1,614,603
Retained earnings	1,688,764			1,551,592
Treasury stock, at cost: 1,336 and 1,299 shares, respectively	(61,204		)	(49,496		)
Accumulated other comprehensive income (loss)	(95,865		)	(62,089		)
Total stockholders’ equity	3,138,248			3,056,170
Total liabilities and stockholders’ equity	$	4,953,972		$	4,775,499

* Derived from audited financial statements.

See accompanying notes to unaudited condensed consolidated financial statements.

1

SYNOPSYS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

	Three Months Ended   July 31,					Nine Months Ended   July 31,
	2015			2014		2015		2014
Revenue:
Time-based license	$	445,807		$	431,184	$	1,324,677	$	1,255,515
Upfront license	48,878			31,594		139,671		101,863
Maintenance and service	61,120			59,034		190,704		161,082
Total revenue	555,805			521,812		1,655,052		1,518,460
Cost of revenue:
License	77,516			68,573		218,650		198,700
Maintenance and service	25,251			20,685		82,244		62,065
Amortization of intangible assets	26,704			26,272		78,182		74,699
Total cost of revenue	129,471			115,530		379,076		335,464
Gross margin	426,334			406,282		1,275,976		1,182,996
Operating expenses:
Research and development	197,999			182,809		567,924		528,395
Sales and marketing	116,988			112,271		343,736		332,847
General and administrative	43,925			37,438		121,254		112,246
Amortization of intangible assets	6,188			6,537		19,066		18,291
Restructuring charges	(248		)	—		15,088		—
Total operating expenses	364,852			339,055		1,067,068		991,779
Operating income	61,482			67,227		208,908		191,217
Other income (expense), net	3,711			3,544		16,784		18,797
Income before income taxes	65,193			70,771		225,692		210,014
Provision (benefit) for income taxes	9,806			5,115		49,520		13,345
Net income	$	55,387		$	65,656	$	176,172	$	196,669
Net income per share:
Basic	$	0.36		$	0.42	$	1.14	$	1.27
Diluted	$	0.35		$	0.42	$	1.12	$	1.25
Shares used in computing per share amounts:
Basic	155,533			155,194		154,835		154,611
Diluted	158,584			157,622		157,850		157,253

See accompanying notes to unaudited condensed consolidated financial statements.

2

SYNOPSYS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Net income	$	55,387		$	65,656		$	176,172		$	196,669
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(10,283		)	1,713			(30,061		)	(9,502		)
Changes in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented	(41		)	—			(11		)	—
Cash flow hedges:
Deferred gains (losses), net of tax of $675 and $6,188, for the three and nine months ended July 31, 2015, respectively, and of $311 and $502 for each of the same periods in fiscal 2014, respectively	599			(831		)	(13,521		)	1,658
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(926) and $(4,334), for the three and nine months ended July 31, 2015, respectively, and of $(205) and $(1,784), for each of the same periods in fiscal 2014, respectively	2,390			(2,540		)	9,817			(4,973		)
Other comprehensive income (loss), net of tax effects	(7,335		)	(1,658		)	(33,776		)	(12,817		)
Comprehensive income	$	48,052		$	63,998		$	142,396		$	183,852

See accompanying notes to unaudited condensed consolidated financial statements.

3

SYNOPSYS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Nine Months Ended   July 31,
	2015			2014
Cash flow from operating activities:
Net income	$	176,172		$	196,669
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation	154,535			140,750
Stock compensation	63,463			58,341
Allowance for doubtful accounts	1,100			(750		)
(Gain) loss on sale of investments	(22		)	(6,538		)
Deferred income taxes	24,134			7,459
Net changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	16,976			24,834
Prepaid and other current assets	(35,836		)	982
Other long-term assets	(16,141		)	(18,847		)
Accounts payable and accrued liabilities	(25,512		)	(28,270		)
Income taxes	(20,633		)	(18,950		)
Deferred revenue	4,507			22,361
Net cash provided by operating activities	342,743			378,041
Cash flows from investing activities:
Proceeds from sales and maturities of short-term investments	48,155			—
Purchases of short-term investments	(185,402		)	—
Proceeds from sales of long-term investments	—			7,313
Purchases of property and equipment	(67,708		)	(58,085		)
Cash paid for acquisitions and intangible assets, net of cash acquired	(126,883		)	(373,513		)
Capitalization of software development costs	(2,798		)	(2,812		)
Other	900			(3,000		)
Net cash used in investing activities	(333,736		)	(430,097		)
Cash flows from financing activities:
Proceeds from credit facility	410,000			200,000
Repayment of debt	(272,924		)	(223,239		)
Issuances of common stock	56,414			45,336
Purchases of treasury stock	(180,000		)	(79,747		)
Other	(116		)	(5,008		)
Net cash provided by (used in) financing activities	13,374			(62,658		)
Effect of exchange rate changes on cash and cash equivalents	(21,720		)	(4,681		)
Net change in cash and cash equivalents	661			(119,395		)
Cash and cash equivalents, beginning of year	985,762			1,022,441
Cash and cash equivalents, end of period	$	986,423		$	903,046

See accompanying notes to unaudited condensed consolidated financial statements.

4

SYNOPSYS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Description of Business

Synopsys, Inc. (Synopsys or the Company) is a global leader in providing software, intellectual property and services used to design integrated circuits and electronic systems. The Company supplies the electronic design automation (EDA) software that engineers use to design, create prototypes for and test integrated circuits, also known as chips. The Company also offers intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. The Company provides software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. To complement these product offerings, the Company provides technical services to support these solutions and help its customers develop chips and electronic systems. The Company is also a leading provider of software tools that developers use to improve the quality, security and time-to-market of software code in a wide variety of industries, including electronics, financial services, energy, and industrials.

Note 2. Summary of Significant Accounting Policies

The Company has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnote disclosures it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its unaudited condensed consolidated balance sheets, results of operations, comprehensive income and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in Synopsys’ Annual Report on Form 10-K for the fiscal year ended October 31, 2014 as filed with the SEC on December 15, 2014.

Use of Estimates. To prepare financial statements in conformity with GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position.

Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Fiscal Year End. The Company’s fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. When a 53-week year occurs, the Company includes the additional week in the first fiscal quarter to realign fiscal quarters with calendar quarters. Fiscal 2015 and 2014 are both 52-week years. The third fiscal quarters, and first nine months, of fiscal 2015 and 2014 ended on August 1, 2015 and August 2, 2014, respectively, and the prior fiscal year ended on November 1, 2014. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end.

Subsequent Events. The Company has evaluated subsequent events through the date that these unaudited condensed consolidated financial statements were issued.

Note 3. Business Combinations

During the nine months ended July 31, 2015, the Company completed several acquisitions. The aggregated total purchase consideration was $120.8 million, net of cash acquired. The Company does not consider these acquisitions to be material, individually or in the aggregate, to the Company’s balance sheet and results of operations. The preliminary purchase price allocation was as follows: $8.4 million of net assumed liabilities based on the respective fair values at the acquisition dates, $92.2 million of goodwill, of which $2.3 million is deductible for tax purposes, and $37.1 million of acquired identifiable intangible assets valued using the income or cost methods. The intangible assets are being amortized over their respective useful lives ranging from one to six years. The acquisition-related costs totaling $4.4 million were expensed as incurred in the condensed unaudited consolidated statement of operations. The Company funded the acquisitions with existing cash.

5

The preliminary fair value estimates for the assets acquired and liabilities assumed for these acquisitions are not yet finalized and may change as additional information becomes available during the respective measurement periods. The primary areas of those preliminary estimates relate to certain tangible assets and liabilities, identifiable intangible assets, and taxes. Additional information, which existed as of the acquisition date but is yet unknown to the Company, may become known to the Company during the remainder of the measurement period not to exceed 12 months from the acquisition date. Changes to the provisional amounts recorded as assets or liabilities during the measurement period may result in an adjustment to goodwill.

Note 4. Goodwill and Intangible Assets

Goodwill as of July 31, 2015 and October 31, 2014 consisted of the following:

	(in thousands)
As of October 31, 2014	$	2,255,708
Additions	92,186
Adjustments(1)	684
Effect of foreign currency translation	(12,762		)
As of July 31, 2015	$	2,335,816

(1) Adjustments relate to changes in estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was finalized during the reporting period.

Intangible assets as of July 31, 2015 consisted of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	540,740	$	353,469	$	187,271
Customer relationships	211,611		108,957		102,654
Contract rights intangible	147,127		131,895		15,232
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	19,079		9,872		9,207
In-process research and development (IPR&D)(2)	—		—		—
Capitalized software development costs	24,627		20,492		4,135
Total	$	945,714	$	627,215	$	318,499

Intangible assets as of October 31, 2014 consisted of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	490,242	$	298,705	$	191,537
Customer relationships	210,172		92,146		118,026
Contract rights intangible	146,364		109,067		37,297
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	18,779		7,765		11,014
In-process research and development (IPR&D)(2)	3,086		—		3,086
Capitalized software development costs	21,829		17,759		4,070
Total	$	893,002	$	527,972	$	365,030

(2) IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment.

6

Amortization expense related to intangible assets consisted of the following:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Core/developed technology	$	18,822	$	18,354	$	54,639	$	51,966
Customer relationships	5,443		5,816		16,906		16,655
Contract rights intangible	7,917		7,913		23,595		22,719
Covenants not to compete	—		17		—		50
Trademarks and trade names	709		709		2,107		1,600
Capitalized software development costs(3)	916		906		2,732		2,655
Total	$	33,807	$	33,715	$	99,979	$	95,645

(3) Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed consolidated statements of operations.

The following table presents the estimated future amortization of intangible assets:

Fiscal Year	(in thousands)
Remainder of fiscal 2015	$	34,126
2016	105,173
2017	68,229
2018	50,718
2019	27,945
2020 and thereafter	32,308
Total	$	318,499

Note 5. Financial Assets and Liabilities

Cash equivalents and short-term investments. The Company classifies time deposits and other investments with maturities less than three months as cash equivalents. Debt securities and other investments with maturities longer than three months are classified as short-term investments. The Company’s investments generally have a term of less than three years and are classified as available-for-sale carried at fair value, with unrealized gains and losses included in the unaudited condensed consolidated balance sheet as a component of accumulated other comprehensive income (loss), net of tax. Those unrealized gains or losses deemed other than temporary are reflected in other income (expense), net. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net.

7

During the first quarter of fiscal 2015, the Company made investments in available-for-sale securities. As of July 31, 2015, the balances of these investments are:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Months			Gross Unrealized Losses 12 Months or Longer		Estimated Fair Value(1)
	(in thousands)
Cash equivalents:
Money market funds	$	357,485	$	—	$	—		$	—	$	357,485
Commercial paper	2,348		—		—			—		2,348
Total:	359,833		—		—			—		359,833
Short-term investments:
U.S. government agency securities	16,605		4		(2		)	—		16,607
Municipal bonds	1,403		2		—			—		1,405
Certificates of deposit	7,800		—		—			—		7,800
Commercial paper	10,287		—		—			—		10,287
Corporate debt securities	70,451		11		(22		)	—		70,440
Asset-backed securities	29,961		5		(9		)	—		29,957
Total:	136,507		22		(33		)	—		136,496

(1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments.

As of July 31, 2015, the stated maturities of the Company's short-term investments are:

	Amortized Cost		Fair Value
	(in thousands)
Due in 1 year or less	$	78,364	$	78,364
Due in 2-5 years	58,037		58,026
Due in 6-10 years	106		106
Total	$	136,507	$	136,496

Non-marketable equity securities. The Company’s strategic investment portfolio consists of non-marketable equity securities in privately-held companies. The securities accounted for under cost method investments are reported at cost net of impairment losses. Securities accounted for under equity method investments are recorded at cost plus the proportional share of the issuers’ income or loss, which is recorded in the Company’s other income (expense), net. The cost basis of securities sold is based on the specific identification method. Refer to Note 6. Fair Value Measures.

Derivatives. The Company recognizes derivative instruments as either assets or liabilities in the unaudited condensed consolidated financial statements at fair value and provides qualitative and quantitative disclosures about such derivatives. The Company operates internationally and is exposed to potentially adverse movements in foreign currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately 1 month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies.

The duration of forward contracts ranges from approximately one month to 22 months, the majority of which are short-term. The Company does not use foreign currency forward contracts for speculative or trading purposes.

8

The Company enters into foreign exchange forward contracts with high credit quality financial institutions that are rated ‘A’ or above and to date has not experienced nonperformance by counterparties. Further, the Company anticipates continued performance by all counterparties to such agreements.

The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the unaudited condensed consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting.

Cash Flow Hedging Activities

Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 22 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to the Company’s foreign currency risk, which can be up to three years. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on the hedged transactions. The effective portion of gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (OCI) in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. The Company expects a majority of the hedge balance in OCI to be reclassified to the statements of operations within the next twelve months.

Hedging effectiveness is evaluated monthly using spot rates, with any gain or loss caused by hedging ineffectiveness recorded in other income (expense), net. The premium/discount component of the forward contracts is recorded to other income (expense), net, and is not included in evaluating hedging effectiveness.

Non-designated Hedging Activities

The Company’s foreign exchange forward contracts that are used to hedge non-functional currency denominated balance sheet assets and liabilities are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the underlying assets and liabilities, which are also recorded in other income (expense), net. The duration of the forward contracts for hedging the Company’s balance sheet exposure is approximately one month.

The Company also has certain foreign exchange forward contracts for hedging certain international revenues and expenses that are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the foreign currency in operating income. The duration of these forward contracts is usually less than one year. The overall goal of the Company’s hedging program is to minimize the impact of currency fluctuations on its net income over its fiscal year.

The effects of the changes in the fair values of non-designated forward contracts are summarized as follows:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Gain (loss) recorded in other income (expense), net	$	(1,409	)	$	(53	)	$	(4,402	)	$	(667	)

The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding:

	As of July 31, 2015			As of October 31, 2014
	(in thousands)
Total gross notional amount	$	639,416		$	793,937
Net fair value	$	(501	)	$	(2,455	)

The notional amounts for derivative instruments do not represent the amount of the Company’s exposure to market gain or loss. The Company’s exposure to market gain or loss will vary over time as a function of currency

9

exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments.

The following represents the unaudited condensed consolidated balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments:

	Fair values of derivative instruments designated as hedging instruments		Fair values of derivative instruments not designated as hedging instruments
	(in thousands)
As of July 31, 2015
Other current assets	$	11,306	$	557
Accrued liabilities	$	12,329	$	34
As of October 31, 2014
Other current assets	$	9,299	$	1
Accrued liabilities	$	11,656	$	99

The following table represents the unaudited condensed consolidated statement of operations location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax:

	Location of gain (loss) recognized in OCI on derivatives	Amount of gain (loss) recognized in OCI on derivatives (effective portion)			Location of gain (loss) reclassified from OCI	Amount of gain (loss) reclassified from OCI (effective portion)
	(in thousands)
Three months ended   July 31, 2015
Foreign exchange contracts	Revenue	$	1,994		Revenue	$	4,005
Foreign exchange contracts	Operating expenses	(1,356		)	Operating expenses	(6,395		)
Total		$	638			$	(2,390	)
Three months ended   July 31, 2014
Foreign exchange contracts	Revenue	$	(40	)	Revenue	$	1,563
Foreign exchange contracts	Operating expenses	(815		)	Operating expenses	977
Total		$	(855	)		$	2,540
Nine months ended   July 31, 2015
Foreign exchange contracts	Revenue	$	5,334		Revenue	$	6,411
Foreign exchange contracts	Operating expenses	(18,855		)	Operating expenses	(16,228		)
Total		$	(13,521	)		$	(9,817	)
Nine months ended   July 31, 2014
Foreign exchange contracts	Revenue	$	3,324		Revenue	$	3,237
Foreign exchange contracts	Operating expenses	(1,707		)	Operating expenses	1,736
Total		$	1,617			$	4,973

10

The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense), net:

Foreign exchange contracts	Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)(1)		Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2)
	(in thousands)
For the three months ended July 31, 2015	$	122	$	1,189
For the three months ended July 31, 2014	$	24	$	548
For the nine months ended July 31, 2015	$	822	$	3,495
For the nine months ended July 31, 2014	$	57	$	2,950

(1) The ineffective portion includes forecast inaccuracies.

(2) The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts.

Note 6. Fair Value Measures

Accounting Standards Codification (ASC) 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes guidelines and enhances disclosure requirements for fair value measurements. The accounting guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance also establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical instruments in active markets;

Level 2—Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3—Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

On a recurring basis, the Company measures the fair value of certain of its assets and liabilities, which include cash equivalents, short-term investments, non-qualified deferred compensation plan assets, and foreign currency derivative contracts.

The Company’s cash equivalents and short-term investments are classified within Level 1 or Level 2 because they are valued using quoted market prices in an active market or alternative independent pricing sources and models utilizing market observable inputs.

The Company’s non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets and are therefore classified within Level 1.

The Company’s foreign currency derivative contracts are classified within Level 2 because these contracts are not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments.

The Company’s borrowings under its credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Refer to Note 8. Credit Facility.

11

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below as of July 31, 2015:

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	357,485	$	357,485	$	—	$	—
Commercial paper	2,348		—		2,348		—
Short-term investments:
U.S. government agency securities	16,607		—		16,607		—
Municipal bonds	1,405		—		1,405		—
Certificates of deposit	7,800		—		7,800		—
Commercial paper	10,287		—		10,287		—
Corporate debt securities	70,440		—		70,440		—
Asset-backed securities	29,957		—		29,957		—
Prepaid and other current assets:
Foreign currency derivative contracts	11,863		—		11,863		—
Other long-term assets:
Deferred compensation plan assets	161,087		161,087		—		—
Total assets	$	669,279	$	518,572	$	150,707	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	12,364	$	—	$	12,364	$	—
Total liabilities	$	12,364	$	—	$	12,364	$	—

12

Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2014:

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	409,064	$	409,064	$	—	$	—
Prepaid and other current assets:
Foreign currency derivative contracts	9,300		—		9,300		—
Other long-term assets:
Deferred compensation plan assets	145,508		145,508		—		—
Total assets	$	563,872	$	554,572	$	9,300	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	11,755	$	—	$	11,755	$	—
Total liabilities	$	11,755	$	—	$	11,755	$	—

Assets/Liabilities Measured at Fair Value on a Non-Recurring Basis

Non-Marketable Equity Securities

Equity investments in privately-held companies, also called non-marketable equity securities, are accounted for using either the cost or equity method of accounting.

The non-marketable equity securities are measured and recorded at fair value when an event or circumstance which impacts the fair value of these securities indicates an other-than-temporary decline in value has occurred.  In such events, these equity investments would be classified within Level 3 as they are valued using significant unobservable inputs or data in an inactive market, and the valuation requires management judgment due to the absence of market price and inherent lack of liquidity. The non-marketable equity securities are measured and recorded at fair value when an event or circumstance which impacts the fair value of these securities indicates an other-than-temporary decline in value has occurred. The Company monitors these investments and generally uses the income approach to assess impairments based primarily on the financial conditions of these companies.

The Company did not recognize any impairment during the three and nine months ended July 31, 2015 and 2014, respectively.

As of July 31, 2015, the fair value of the Company’s non-marketable securities was $10.6 million, of which $6.7 million and $3.9 million were accounted for under the cost method and equity method, respectively. As of October 31, 2014, the fair value of non-marketable securities was $10.9 million, of which $6.7 million and $4.2 million were accounted for under the cost method and equity method, respectively.

Note 7. Liabilities and Restructuring Charges

In November 2014, the Company initiated a restructuring program that included a voluntary retirement program (VRP) and a minimal headcount reduction program. The VRP was offered to certain eligible employees in the United States and enrollment for those employees was completed on November 21, 2014. The total cost of the restructuring program was $15.1 million, of which $0.8 million and $15.1 million were paid during the three and nine months ended July 31, 2015, respectively. As of July 31, 2015, there is no outstanding balance in restructuring charges.

13

Accounts payable and accrued liabilities consist of:

	July 31, 2015		October 31, 2014
	(in thousands)
Payroll and related benefits	$	257,342	$	302,295
Other accrued liabilities	54,793		66,666
Accounts payable	18,690		28,152
Total	$	330,825	$	397,113

Other long-term liabilities consist of:

	July 31, 2015		October 31, 2014
	(in thousands)
Deferred compensation liability	$	161,087	$	145,508
Other long-term liabilities	43,018		13,464
Total	$	204,105	$	158,972

Note 8. Credit Facility

On February 17, 2012, the Company entered into an agreement with several lenders (the Credit Agreement) providing for (i) a $350.0 million senior unsecured revolving credit facility (the Revolver) and (ii) a $150.0 million senior unsecured term loan facility (the Term Loan). Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due in October 2016. The Company can elect to make prepayments on the Term Loan, in whole or in part, without premium or penalty. On May 19, 2015, the Credit Agreement was amended and restated in order to increase the size of the Revolver from $350.0 million to $500.0 million and to extend the termination date of the Revolver from October 14, 2016 to May 19, 2020. The amended and restated Credit Agreement also replaced a financial covenant requiring the Company to maintain a minimum specified level of cash with a covenant requiring a minimum interest coverage ratio. Subject to obtaining additional commitments from lenders, the principal amount of the loans provided under the amended and restated Credit Agreement may be increased by the Company by up to an additional $150.0 million through May 2019. The amended and restated Credit Agreement contains financial covenants requiring the Company to operate within a maximum leverage ratio and a minimum interest coverage ratio, as well as other non-financial covenants.

As of July 31, 2015, the Company had a $52.5 million outstanding balance under the Term Loan, of which $22.5 million is classified as long term, and a $160.0 million outstanding balance under the Revolver, which is all considered short term. As of October 31, 2014, the Company had a $75.0 million outstanding balance under the Term Loan, of which $45.0 million was classified as long term, and no outstanding balance under the Revolver. Borrowings bear interest at a floating rate based on a margin over the Company’s choice of market observable base rates as defined in the amended and restated Credit Agreement. As of July 31, 2015, borrowings under the Term Loan bore interest at LIBOR +1.125% and the applicable interest rate for the Revolver was LIBOR +1.000%. In addition, commitment fees are payable on the Revolver at rates between 0.125% and 0.200% per year based on the Company’s leverage ratio on the daily amount of the revolving commitment.

The carrying amount of the short-term and long-term debt approximates the estimated fair value. These borrowings under the amended and restated Credit Agreement have a variable interest rate structure and are classified within Level 2 of the fair value hierarchy.

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Note 9. Accumulated Other Comprehensive Income (Loss)

Components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows:

	July 31, 2015			October 31, 2014
	(in thousands)
Cumulative currency translation adjustments	$	(81,002	)	$	(50,941	)
Unrealized gain (loss) on derivative instruments, net of taxes	(14,852		)	(11,148		)
Unrealized gain (loss) on available-for-sale securities, net of taxes	(11		)	—
Total accumulated other comprehensive income (loss)	$	(95,865	)	$	(62,089	)

The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows:

	Three Months Ended   July 31,					Nine Months Ended   July 31,
	2015			2014		2015			2014
	(in thousands)
Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statement of operations:
Gain (loss) on cash flow hedges, net of taxes
Revenues	$	4,005		$	1,563	$	6,411		$	3,237
Operating expenses	(6,395		)	977		(16,228		)	1,736
Gain (loss) on available-for-sale securities
Other income (expense)	$	5		—		22			$	—
Total reclassifications into net income	$	(2,385	)	$	2,540	$	(9,795	)	$	4,973

Note 10. Stock Repurchase Program

The Company’s Board of Directors (the Board) previously approved a stock repurchase program 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 replenished the stock repurchase program up to $500.0 million on December 3, 2013, as announced on December 4, 2013. 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, as amended (the 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 July 31, 2015, $200.3 million remained available for further repurchases under the program.

In December 2014, the Company entered into an accelerated share repurchase agreement (the 2015 ASR) to repurchase an aggregate of $180.0 million of the Company’s common stock. Pursuant to the 2015 ASR, the Company made a prepayment of $180.0 million of which an initial share value of $144.0 million was delivered in December and the $36.0 million forward equity contract was settled during the third fiscal quarter of fiscal 2015. Total shares purchased under the 2015 ASR were approximately 4.0 million shares at an average purchase price of $45.37 per share.

15

Stock repurchase activities are as follow:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Total shares repurchased	678		—		3,968		2,050
Total cost of the repurchased shares	$	36,000	$	—	$	180,000	$	79,747
Reissuance of treasury stock	1,553		931		3,931		3,519

Note 11. Stock Compensation

The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Cost of license	$	2,463		$	2,176		$	6,673		$	5,952
Cost of maintenance and service	547			684			1,574			1,646
Research and development expense	11,955			10,126			32,432			28,037
Sales and marketing expense	5,268			4,696			13,573			12,394
General and administrative expense	3,672			3,717			10,517			10,312
Stock compensation expense before taxes	23,905			21,399			64,769			58,341
Income tax benefit	(5,637		)	(4,905		)	(15,273		)	(13,372		)
Stock compensation expense after taxes	$	18,268		$	16,494		$	49,496		$	44,969

As of July 31, 2015, there was $177.8 million of unamortized share-based compensation expense, which is expected to be amortized over a weighted-average period of approximately 2.7 years.

The intrinsic values of equity awards exercised during the periods are as follows:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Intrinsic value of awards exercised	$	17,631	$	3,709	$	42,262	$	23,556

Note 12. Net Income per Share

The Company computes basic net income per share by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding, such as stock options and unvested restricted stock units and awards, during the period using the treasury stock method.

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The table below reconciles the weighted-average common shares used to calculate basic net income per share with the weighted-average common shares used to calculate diluted net income per share:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands, except per share amounts)
Numerator:
Net income	$	55,387	$	65,656	$	176,172	$	196,669
Denominator:
Weighted-average common shares for basic net income per share	155,533		155,194		154,835		154,611
Dilutive effect of potential common shares from equity-based compensation	3,051		2,428		3,015		2,642
Weighted-average common shares for diluted net income per share	158,584		157,622		157,850		157,253
Net income per share:
Basic	$	0.36	$	0.42	$	1.14	$	1.27
Diluted	$	0.35	$	0.42	$	1.12	$	1.25
Anti-dilutive employee stock-based awards excluded(1)	563		2,875		1,529		2,057

(1) These employee stock-based awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future.

Note 13. Segment Disclosure

Certain disclosures are required for operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers.

The Company operates in a single segment to provide software products and consulting services in the EDA software industry. In making operating decisions, the CODMs primarily consider consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Specifically, the CODMs consider where individual “seats” or licenses to the Company’s products are located in allocating revenue to particular geographic areas. Revenue is defined as revenues from external customers. Goodwill is not allocated since the Company operates in one reportable operating segment. Revenues related to operations in the United States and other geographic areas were:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Revenue:
United States	$	275,625	$	268,228	$	839,325	$	745,458
Europe	80,257		65,881		227,165		203,645
Japan	50,974		61,517		165,067		184,219
Asia-Pacific and Other	148,949		126,186		423,495		385,138
Consolidated	$	555,805	$	521,812	$	1,655,052	$	1,518,460

Geographic revenue data for multi-region, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and the Company’s methodology.

17

One customer accounted for 13.1% and 10.5% of the Company’s unaudited condensed consolidated revenue in the three months ended July 31, 2015 and 2014, respectively, and accounted for 12.3% and 10.7% of the Company’s unaudited condensed consolidated revenue in the nine months ended July 31, 2015 and 2014, respectively.

Note 14. Other Income (Expense), net

The following table presents the components of other income (expense), net:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Interest income	$	540		$	294		$	2,240		$	975
Interest expense	(599		)	(715		)	(2,057		)	(1,654		)
Gain (loss) on assets related to executive deferred compensation plan	1,815			3,069			7,091			7,529
Foreign currency exchange gain (loss)	1,111			80			5,317			865
Other, net	844			816			4,193			11,082
Total	$	3,711		$	3,544		$	16,784		$	18,797

Note 15. Taxes

Effective Tax Rate

The Company estimates its annual effective tax rate at the end of each fiscal quarter. The Company’s estimate takes into account estimations of annual pre-tax income, the geographic mix of pre-tax income and the Company’s interpretations of tax laws and possible outcomes of audits.

The following table presents the provision (benefit) for income taxes and the effective tax rates:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Income before income taxes	$	65,193		$	70,771		$	225,692		$	210,014
Provision (benefit) for income taxes	$	9,806		$	5,115		$	49,520		$	13,345
Effective tax rate	15.0		%	7.2		%	21.9		%	6.4		%

The Company’s effective tax rate for the three and nine months ended July 31, 2015 is lower than the statutory federal income tax rate of 35% primarily due to the lower tax rates applicable to its non-U.S. operations and U.S. federal and California research tax credits, partially offset by state taxes, non-deductible stock compensation, and the integration of acquired technologies.

The Company's effective tax rate increased in the three and nine months ended July 31, 2015, as compared to the same periods in fiscal 2014, primarily due to the net impact of the integration of acquired technologies, partially offset by the reinstatement of the U.S. federal research tax credit through December 31, 2014. The effective tax rate for the three and nine months ended July 31, 2014 was lower due to the tax benefits of statutes of limitation lapses and settlements with the Taiwan tax authorities for fiscal 2010 and 2009 and with the IRS for fiscal 2012.

On December 19, 2014, the president signed into law the Tax Increase Prevention Act of 2014 which reinstated the research tax credit retroactive to January 1, 2014 and extended the credit through December 31, 2014. As a result of the new legislation, the Company recognized a benefit in the first quarter of fiscal 2015 related to ten months of fiscal 2014 as well as a benefit to the annual effective tax rate for two months of fiscal 2015.

On July 27, 2015, the Tax Court issued an opinion (Altera Corp. et al. v. Commissioner) regarding the treatment of stock-based compensation expense in intercompany cost-sharing arrangements.  However, U.S. Treasury has not withdrawn the requirement to include stock-based compensation from its regulations.  Also, there is uncertainty related to the IRS response to the Tax Court opinion, the final resolution of this issue, and the potential favorable benefits to the Company.  As such, no impact will be recorded at this time.  The Company will

18

continue to monitor developments related to this opinion and the potential impact of those developments on the Company’s current and prior fiscal years.

The Company’s total gross unrecognized tax benefits at July 31, 2015 are $115.0 million exclusive of interest and penalties. If the total gross unrecognized tax benefits at July 31, 2015 were recognized in the future, approximately $115.0 million would decrease the effective tax rate.

The timing of the resolution of income tax examinations is highly uncertain as well as the amounts and timing of various tax payments that are part of the settlement process. This could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. The Company believes that in the coming twelve months, it is reasonably possible that either certain audits will conclude or the statute of limitations on certain state and foreign income and withholding taxes will expire, or both. Given the uncertainty as to ultimate settlement terms, the timing of payment and the impact of such settlements on other uncertain tax positions, the range of the estimated potential decrease in underlying unrecognized tax benefits is between $0 and $23 million.

IRS Examinations

In the third quarter of fiscal 2015, the Company reached final settlement with the Examination Division of the IRS on the integration of acquired technologies for fiscal 2015 and research tax credit for fiscal 2014 that resulted in $7.0 million and $3.2 million in tax benefits, respectively.

In the first quarter of fiscal 2014, the Company reached final settlement with the Examination Division of the IRS on the remaining fiscal 2012 issues and recognized approximately $10.0 million in unrecognized tax benefits.

Non-U.S. Examinations

In the first quarter of fiscal 2015, the Company reached final settlement with the Taiwan tax authorities for fiscal 2012, with regard to certain transfer pricing issues. As a result of the settlement the Company recognized approximately $1.1 million in unrecognized tax benefits.

In the second quarter of fiscal 2014, the Company reached settlements with the Taiwan tax authorities for fiscal 2010 and 2009, with regard to certain transfer pricing issues. As a result of the settlements and the application of the settlements to other open fiscal years, the Company's unrecognized tax benefits decreased by $5.1 million. The net tax benefit resulting from the settlements and the application to other open fiscal years was $3.9 million.

Note 16. Effect of New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).”  This ASU requires an entity to recognize revenue when goods are transferred or services are provided to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This ASU also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date.” With the issuance of ASU 2015-14, the new revenue guidance ASU 2014-09 will be effective for fiscal 2019, including interim periods within that reporting period, using one of two prescribed retrospective methods. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which are subject to the “safe harbor” created by those sections. Any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,” “project” or “continue,” and the negatives of such terms are intended to identify forward-looking statements. Without limiting the foregoing, forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements concerning expected growth in the semiconductor industry and the effects of industry consolidation, our business outlook, our business model, our growth strategy, the ability of our prior acquisitions (including our acquisition of Coverity, Inc.) to drive revenue growth, the sufficiency of our cash, cash equivalents and short-term investments and cash generated from operations, our future liquidity requirements, and other statements that involve certain known and unknown risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include, among others, those identified below in Part II, Item 1A. Risk Factors of this Quarterly Report on Form 10-Q. The information included herein represents our estimates and assumptions as of the date of this filing. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. All subsequent written or oral forward-looking statements attributable to Synopsys or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Readers are urged to carefully review and consider the various disclosures made in this report and in other documents we file from time to time with the Securities and Exchange Commission (SEC) that attempt to advise interested parties of the risks and factors that may affect our business.

The following summary of our financial condition and results of operations should be read together with our unaudited condensed consolidated financial statements and the related notes thereto contained in Part I, Item 1 of this report and with our audited consolidated financial statements and the related notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended October 31, 2014, as filed with the SEC on December 15, 2014.

Overview

Business Summary

Synopsys is a global leader in providing software, intellectual property and services used to design integrated circuits and electronic systems. We supply the electronic design automation (EDA) software that engineers use to design, create prototypes for and test integrated circuits, also known as chips. We also offer intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. We provide software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. To complement these product offerings, we provide technical services to support our solutions and help our customers develop chips and electronic systems. We are also a leading provider of software tools that developers use to improve the quality, security, and time-to-market of software code in a wide variety of industries, including electronics, financial services, energy, and industrials.

Our EDA and IP customers are generally semiconductor and electronics systems companies. Our solutions help them overcome the challenge of developing increasingly advanced electronics products while reducing their design and manufacturing costs. While our products are an important part of our customers’ development process, our customers’ research and development budget and spending decisions may be affected by their business outlook and their willingness to invest in new and increasingly complex chip designs. In addition, a number of consolidations have taken place in the semiconductor industry recently. While we do not believe customer consolidations have had a material impact on our results, the future impact is uncertain. Please see the risk factor titled “Consolidation among our customers, as well as within the industries in which we operate, may negatively impact our operating results.” in Part II, Item 1A. Risk Factors for a discussion of potential risks.

Despite global economic uncertainty, we have maintained profitability and positive cash flow on an annual basis in recent years. We achieved these results not only because of our solid execution, leading technology and strong customer relationships, but also because of our time-based revenue business model. Under this model, a substantial majority of our customers pay for their licenses over time and we typically recognize this revenue over the life of the contract, which averages approximately three years. Time-based revenue, which consists of time-

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based license, maintenance and service revenue, generally represents approximately 90% of our total revenue. The revenue we recognize in a particular period generally results from selling efforts in prior periods rather than the current period. Due to our business model, decreases as well as increases in customer spending do not immediately affect our revenues in a significant way.

Our growth strategy is based on building on our leadership in our EDA products, expanding and proliferating our IP offerings, and driving growth in the software quality and security market, which we entered with our acquisition of Coverity, Inc. We have continued to make investments in the software quality and security space with additional recent acquisitions, which we believe has expanded our total addressable market. As we continue to expand our product portfolio and our total addressable market, for instance in IP products, we may experience increased variability in our revenue, though we generally expect time-based revenue to continue to represent approximately 90% of our total revenue. Overall, our business outlook remains solid based on our leading technology, customer relationships, business model, diligent expense management, and acquisition strategy. We believe that these factors will help us continue to successfully execute our strategies.

Financial Performance Summary

In the third quarter of fiscal 2015, compared to the same period of fiscal 2014:

• Total revenue was $555.8 million, an increase of $34.0 million or 7%, primarily due to continued growth both organically and through prior-year acquisitions.

• Total cost of revenue and operating expenses was $494.3 million, an increase of $39.7 million or 9%, primarily due to our operational growth and prior-year acquisitions resulting in higher employee-related costs.

• Our net income of $55.4 million was lower by $10.2 million or 16% due to increase in operating expenses as a result of increase in headcount and timing of expenses.

We continued to derive more than 90% of our total revenue from time-based revenue.

New Accounting Pronouncements

See Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial results under the heading “Results of Operations” below are based on our unaudited condensed consolidated financial statements, which we have prepared in accordance with GAAP. In preparing these financial statements, we make assumptions, judgments and estimates that can affect the reported amounts of assets, liabilities, revenues and expenses and net income. On an ongoing basis, we evaluate our estimates based on historical experience and various other assumptions we believe are reasonable under the circumstances. Our actual results may differ from these estimates.

The accounting policies that most frequently require us to make assumptions, judgments and estimates, and therefore are critical to understanding our results of operations, are:

• Revenue recognition;

• Valuation of stock compensation;

• Valuation of intangible assets; and

• Income taxes.

Our critical accounting policies and estimates are discussed in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the fiscal year ended October 31, 2014, filed with the SEC on December 15, 2014.

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Results of Operations

Revenue Background

We generate our revenue from the sale of software licenses, maintenance and professional services and to a small extent, hardware products. Software license revenue consists of fees associated with the licensing of our software. Maintenance and service revenue consists of maintenance fees associated with perpetual and term licenses and professional services fees. Hardware revenue consists of FPGA-based emulation and prototyping products.

With respect to software licenses, we utilize three license types:

• Technology Subscription Licenses (TSLs). TSLs are time-based licenses for a finite term, and generally provide the customer limited rights to receive, or to exchange certain quantities of licensed software for, unspecified future technology. We bundle and do not charge separately for post-contract customer support (maintenance) for the term of the license.

• Term licenses. Term licenses are also for a finite term, but do not provide the customer any rights to receive, or to exchange licensed software for, unspecified future technology. Customers purchase maintenance separately for the first year and may renew annually for the balance of the term. The annual maintenance fee is typically calculated as a percentage of the net license fee.

• Perpetual licenses. Perpetual licenses continue as long as the customer renews maintenance plus an additional 20 years. Perpetual licenses do not provide the customer any rights to receive, or to exchange licensed software for, unspecified future technology. Customers purchase maintenance separately for the first year and may renew annually.

For the three software license types, we recognize revenue as follows:

• TSLs. We typically recognize revenue from TSL fees (which include bundled maintenance) ratably over the term of the license period, or as customer installments become due and payable, whichever is later. Revenue attributable to TSLs is reported as “time-based license revenue” in the unaudited condensed consolidated statements of operations.

• Term licenses. We recognize revenue from term licenses in full upon shipment of the software if payment terms require the customer to pay at least 75% of the license fee and 100% of the maintenance fee within one year from shipment and all other revenue recognition criteria are met. Revenue attributable to these term licenses is reported as “upfront license revenue” in the unaudited condensed consolidated statements of operations. For term licenses in which less than 75% of the license fee and 100% of the maintenance fee is payable within one year from shipment, we recognize revenue as customer payments become due and payable. Such revenue is reported as “time-based license revenue” in the unaudited condensed consolidated statements of operations.

• Perpetual licenses. We recognize revenue from perpetual licenses in full upon shipment of the software if payment terms require the customer to pay at least 75% of the license fee and 100% of the maintenance fee within one year from shipment and all other revenue recognition criteria are met. Revenue attributable to these perpetual licenses is reported as “upfront license revenue” in the unaudited condensed consolidated statements of operations. For perpetual licenses in which less than 75% of the license fee and 100% of the maintenance fee is payable within one year from shipment, we recognize revenue as customer installments become due and payable. Such revenue is reported as “time-based license revenue” in the unaudited condensed consolidated statements of operations.

Under current accounting rules and policies, we recognize revenue from orders we receive for software licenses, services and hardware products at varying times. In most instances, we recognize revenue on a TSL software license order over the license term and on a term or perpetual software license order in the quarter in which the license is delivered. The weighted-average license term of the TSLs and term licenses we entered into for the three months ended July 31, 2015 and 2014 was 2.5 and 3.1 years, respectively. Revenue on contracts requiring significant modification or development is accounted for using the percentage of completion method over the period of the development. Revenue on hardware product orders is generally recognized in full at the time the product is shipped. Contingent revenue is recognized if and when the applicable event occurs.

Revenue on maintenance orders is recognized ratably over the maintenance period (normally one year). Revenue on professional services orders is generally recognized after services are performed and accepted by the customer.

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Our revenue in any period is equal to the sum of our time-based license, upfront license, maintenance and professional services for the period. We derive time-based license revenue largely from TSL orders received and delivered in prior quarters and to a smaller extent due to contracts in which revenue is recognized as customer installments become due and payable and from contingent revenue arrangements. We derive upfront license revenue directly from term and perpetual license and hardware product orders mostly booked and shipped during the period. We derive maintenance revenue largely from maintenance orders received in prior periods since our maintenance orders generally yield revenue ratably over a term of one year. We also derive professional services revenue primarily from orders received in prior quarters, since we recognize revenue from professional services as those services are delivered and accepted or on percentage of completion for arrangements requiring significant modification of our software, and not when they are booked. Our license revenue is sensitive to the mix of TSLs and perpetual or term licenses delivered during a reporting period. A TSL order typically yields lower current quarter revenue but contributes to revenue in future periods. For example, a $120,000 order for a three-year TSL delivered on the last day of a quarter typically generates no revenue in that quarter, but $10,000 in each of the twelve succeeding quarters. Conversely, a $120,000 order for perpetual and term licenses with greater than 75% of the license fee due within one year from shipment typically generates $120,000 in revenue in the quarter the product is delivered, but no future revenue. Additionally, revenue in a particular quarter may also be impacted by perpetual and term licenses in which less than 75% of the license fees and 100% of the maintenance fees are payable within one year from shipment as the related revenue will be recognized as revenue in the period when customer payments become due and payable.

Our customer arrangements are complex, involving hundreds of products and various license rights, and our customers bargain with us over many aspects of these arrangements. For example, they often demand a broader portfolio of solutions, support and services and seek more favorable terms such as expanded license usage, future purchase rights and other unique rights at an overall lower total cost. No single factor typically drives our customers’ buying decisions, and we compete on all fronts to serve customers in a highly competitive EDA market. Customers generally negotiate the total value of the arrangement rather than just unit pricing or volumes.

Total Revenue

	July 31,
	2015		2014		$ Change		% Change
	(dollars in millions)
Three months ended	$	555.8	$	521.8	$	34.0	7	%
Nine months ended	$	1,655.1	$	1,518.5	$	136.6	9	%

Our revenues are subject to fluctuations, primarily due to customer requirements, including payment terms and the timing and value of contract renewals. For example, we experience variability in our quarterly revenue due to factors such as the timing of IP consulting projects and royalties, and certain contracts where revenue is recognized when customer installment payments are due, as well as variability in hardware sales.

The increase in total revenue for the three and nine months ended July 31, 2015 compared to the same periods in fiscal 2014 was due to our overall growth, higher hardware sales and, to a lesser extent, contributions from acquisitions.

Time-Based License Revenue

	July 31,
	2015			2014			$ Change		% Change
	(dollars in millions)
Three months ended	$	445.8		$	431.2		$	14.6	3	%
Percentage of total revenue	80		%	83		%
Nine months ended	$	1,324.7		$	1,255.5		$	69.2	6	%
Percentage of total revenue	80		%	83		%

The increase in time-based license revenue for the three and nine months ended July 31, 2015 compared to the same periods in fiscal 2014 was primarily attributable to an increase in TSL license revenue due to our overall growth and, to a lesser extent, contributions from acquisitions.

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Upfront License Revenue

	July 31,
	2015			2014			$ Change		% Change
	(dollars in millions)
Three months ended	$	48.9		$	31.6		$	17.3	55	%
Percentage of total revenue	9		%	6		%
Nine months ended	$	139.7		$	101.9		$	37.8	37	%
Percentage of total revenue	8		%	7		%

Changes in upfront license revenue are generally attributable to normal fluctuations in customer requirements, which can drive the amount of upfront orders and revenue in any particular period.

The increase in upfront license revenue for the three and nine months ended July 31, 2015 compared to the same periods in fiscal 2014 was primarily attributable to an increase in the sale of hardware products.

As our sales of hardware products grow, upfront license revenue may increase as a percentage of total revenue, but we expect it to remain consistent with our business model in which approximately 90% of our total revenue consists of time-based revenue.

Maintenance and Service Revenue

	July 31,
	2015			2014			$ Change			% Change
	(dollars in millions)
Three months ended
Maintenance revenue	$	17.7		$	18.0		$	(0.3	)	(2	)%
Professional services and other revenue	43.4			41.0			2.4			6	%
Total maintenance and service revenue	$	61.1		$	59.0		$	2.1		4	%
Percentage of total revenue	11		%	11		%
Nine months ended
Maintenance revenue	$	51.7		$	56.1		$	(4.4	)	(8	)%
Professional services and other revenue	139.0			105.0			34.0			32	%
Total maintenance and service revenue	$	190.7		$	161.1		$	29.6		18	%
Percentage of total revenue	12		%	11		%

Changes in maintenance revenue are generally attributable to timing of contract renewals and type of contracts that bundle maintenance. Maintenance revenue for the three and nine months ended July 31, 2015 compared to the same periods in fiscal 2014 was lower primarily due to the timing of renewals.

The changes in professional services and other revenue for the three and nine months ended July 31, 2015 compared to the same periods in fiscal 2014 were primarily due to the increase in, and timing of, IP consulting projects that are accounted for using the percentage of completion method.

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Cost of Revenue

	July 31,
	2015			2014			$ Change		% Change
	(dollars in millions)
Three months ended
Cost of license revenue	$	77.5		$	68.5		$	9.0	13	%
Cost of maintenance and service revenue	25.3			20.7			4.6		22	%
Amortization of intangible assets	26.7			26.3			0.4		2	%
Total	$	129.5		$	115.5		$	14.0	12	%
Percentage of total revenue	23		%	22		%
Nine months ended
Cost of license revenue	$	218.7		$	198.7		$	20.0	10	%
Cost of maintenance and service revenue	82.2			62.1			20.1		32	%
Amortization of intangible assets	78.2			74.7			3.5		5	%
Total	$	379.1		$	335.5		$	43.6	13	%
Percentage of total revenue	23		%	22		%

We divide cost of revenue into three categories: cost of license revenue, cost of maintenance and service revenue, and amortization of intangible assets. We segregate expenses directly associated with consulting and training services from cost of license revenue associated with internal functions providing license delivery and post-customer contract support services. We then allocate these group costs between cost of license revenue and cost of maintenance and service revenue based on license and maintenance and service revenue reported.

Cost of license revenue. Cost of license revenue includes costs related to products sold and software licensed, allocated operating costs related to product support and distribution costs, royalties paid to third-party vendors, and the amortization of capitalized research and development costs associated with software products that have reached technological feasibility.

Cost of maintenance and service revenue. Cost of maintenance and service revenue includes operating costs related to maintaining the infrastructure necessary to operate our services and training organization, and costs associated with the delivery of our consulting services, such as hotline and on-site support, production services and documentation of maintenance updates.

Amortization of intangible assets. Amortization of intangible assets, which is recorded to cost of revenue and operating expenses, includes the amortization of core/developed technology, trademarks, trade names, customer relationships, covenants not to compete, and certain contract rights related to acquisitions.

The increase in cost of revenue for the three months ended July 31, 2015 compared to the same period in fiscal 2014 was primarily due to increases of $6.3 million in product costs due to increased sales, $4.7 million in costs related to our professional services revenue, and $1.6 million in personnel-related costs driven by higher headcount.

The increase in cost of revenue for the nine months ended July 31, 2015 compared to the same period in fiscal 2014 was primarily due to increases of $18.8 million in costs related to our professional services revenue, $8.9 million in product costs due to increased sales, $8.6 million in personnel-related costs driven by higher headcount, including those from acquisitions, and $3.5 million in amortization of intangible assets.

Changes in other cost of revenue categories for the above-mentioned periods were not individually material.

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Operating Expenses

Research and Development

	July 31,
	2015			2014			$ Change		% Change
	(dollars in millions)
Three months ended	$	198.0		$	182.8		$	15.2	8	%
Percentage of total revenue	36		%	35		%
Nine months ended	$	567.9		$	528.4		$	39.5	7	%
Percentage of total revenue	34		%	35		%

The increase in research and development expenses for the three months ended July 31, 2015 compared to the same period in fiscal 2014 was primarily due to an increase of $10.5 million in personnel-related costs principally as a result of headcount increases, including those from acquisitions, and $2.4 million higher functionally allocated expenses.

The increase in research and development expenses for the nine months ended July 31, 2015 compared to the same period in fiscal 2014 was primarily due to an increase of $25.7 million in personnel-related costs principally as a result of headcount increases, including those from acquisitions, and $10.4 million higher functionally allocated expenses.

Changes in other research and development expense categories for the above-mentioned periods were not individually material.

Sales and Marketing

	July 31,
	2015			2014			$ Change		% Change
	(dollars in millions)
Three months ended	$	117.0		$	112.3		$	4.7	4	%
Percentage of total revenue	21		%	22		%
Nine months ended	$	343.7		$	332.8		$	10.9	3	%
Percentage of total revenue	21		%	22		%

The increase in sales and marketing expenses for the three months ended July 31, 2015 compared to the same period in fiscal 2014 was primarily due to increases of $2.5 million in personnel-related costs as a result of headcount increases, including those from acquisitions.

The increase in sales and marketing expenses for the nine months ended July 31, 2015 compared to the same period in fiscal 2014 was primarily due to increases of $9.4 million in personnel-related costs as a result of headcount increases, including those from acquisitions, and $1.4 million in variable compensation due to higher sales.

Changes in other sales and marketing expense categories for the above-mentioned periods were not individually material.

General and Administrative

	July 31,
	2015			2014			$ Change		% Change
	(dollars in millions)
Three months ended	$	43.9		$	37.4		$	6.5	17	%
Percentage of total revenue	8		%	7		%
Nine months ended	$	121.3		$	112.2		$	9.1	8	%
Percentage of total revenue	7		%	7		%

The increase in general and administrative expenses for the three months ended July 31, 2015 compared to the same period in fiscal 2014 was primarily due to increases of $5.2 million in facilities and depreciation expenses,

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including those from acquisitions, and $4.2 million in acquisition-related professional services costs, which were partially offset by higher allocations of $4.1 million in expenses to other functions.

The increase in general and administrative expenses for the nine months ended July 31, 2015 compared to the same period in fiscal 2014 was primarily due to increases of $17.5 million in facilities and depreciation expenses including those from acquisitions, $4.4 million in personnel-related costs primarily due to higher headcount, including those from acquisitions, and $4.0 million in acquisition-related professional services costs, which were partially offset by higher allocations of $17.6 million in expenses to other functions.

Changes in other general and administrative expense categories for the above-mentioned periods were not individually material.

Amortization of Intangible Assets

	July 31,
	2015			2014			$ Change			% Change
	(dollars in millions)
Three months ended
Included in cost of revenue	$	26.7		$	26.3		$	0.4		2	%
Included in operating expenses	6.2			6.5			(0.3		)	(5	)%
Total	$	32.9		$	32.8		$	0.1		—	%
Percentage of total revenue	6		%	6		%
Nine months ended
Included in cost of revenue	$	78.2		$	74.7		$	3.5		5	%
Included in operating expenses	19.1			18.3			0.8			4	%
Total	$	97.3		$	93.0		$	4.3		5	%
Percentage of total revenue	6		%	6		%

The increase in amortization of intangible assets for the three and nine months ended July 31, 2015 compared to the same periods in fiscal 2014 was primarily due to the additions of intangible assets acquired, including from our fiscal 2015 acquisitions, which were partially offset by certain intangible assets being fully amortized. See Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements for a schedule of future amortization amounts.

Restructuring Charges

In November 2014, we initiated a restructuring program that included a voluntary retirement program (VRP) and a minimal headcount reduction program. The VRP was offered to certain eligible employees in the United States and enrollment for those employees was completed on November 21, 2014. The restructuring program is substantially complete and summarized below.  See Note 7 of the Notes to Unaudited Condensed Consolidated Financial Statements. As of July 31, 2015, the program is substantially completed, and no additional adjustments to this program are anticipated.

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The following is a summary of our restructuring activities:

	Balance at Beginning of Period		Costs Incurred (Reduced)			Cash Payments			Balance at End of Period
	(in millions)
Three months ended July 31, 2015	$	1.0	$	(0.2	)	$	(0.8	)	$	—
Nine months ended July 31, 2015	$	—	$	15.1		$	(15.1	)	$	—

Other Income (Expense), net

	July 31,
	2015			2014			$ Change			% Change
	(dollars in millions)
Three months ended
Interest income	$	0.5		$	0.3		$	0.2		67	%
Interest (expense)	(0.6		)	(0.7		)	0.1			(14	)%
Gain on assets related to executive deferred compensation plan assets	1.8			3.1			(1.3		)	(42	)%
Foreign currency exchange gain (loss)	1.1			0.1			1.0			1,000	%
Other, net	0.9			0.7			0.2			29	%
Total	$	3.7		$	3.5		$	0.2		6	%
Nine months ended
Interest income	$	2.2		$	1.0		$	1.2		120	%
Interest (expense)	(2.1		)	(1.7		)	(0.4		)	24	%
Gain on assets related to executive deferred compensation plan assets	7.1			7.5			(0.4		)	(5	)%
Foreign currency exchange gain (loss)	5.3			0.9			4.4			489	%
Other, net	4.3			11.1			(6.8		)	(61	)%
Total	$	16.8		$	18.8		$	(2.0	)	(11	)%

Other income (expense), net, for the three months ended July 31, 2015 compared to the same period in fiscal 2014 was flat as higher foreign currency exchange gains were offset by lower gains due to market value changes in our executive deferred compensation plan assets.

Other income (expense), net, for the nine months ended July 31, 2015 was lower compared to the same period in fiscal 2014 primarily due to a gain from the sale of a non-marketable equity investment in the first quarter of fiscal 2014, which was partially offset by (1) increased foreign currency exchange gains in the current year as a result of the strengthened U.S. dollar against the related foreign currencies and (2) higher interest income, net of interest expense, in the current period.

Taxes

Our effective tax rate increased in the three and nine months ended July 31, 2015, as compared to the same periods in fiscal 2014, primarily due to the net impact of the integration of acquired technologies, partially offset by the reinstatement of the U.S. federal research tax credit through December 31, 2014. The effective tax rate for the three and nine months ended July 31, 2014 was lower due to the tax benefits of statutes of limitation lapses and settlements with the Taiwan tax authorities for fiscal 2010 and 2009 and with the IRS for fiscal 2012. For further discussion of the provision for income taxes, see Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements.

Liquidity and Capital Resources

Our sources of cash, cash equivalents and short-term investments are funds generated from our business operations and funds that may be drawn down under our revolving credit and term loan facilities.

As of July 31, 2015, we held an aggregate of $346.0 million in cash, cash equivalents and short-term investments in the United States and an aggregate of $777.0 million in our foreign subsidiaries. Funds held in our

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foreign subsidiaries are generated from revenue outside North America. At present, such foreign funds are considered to be indefinitely reinvested in foreign countries to the extent of indefinitely reinvested foreign earnings. However, in the event funds from foreign operations were needed to fund cash needs in the U.S. and if U.S. taxes have not already been previously accrued, we would be required to accrue and pay additional U.S. taxes in order to repatriate these funds.

The following sections discuss changes in our unaudited condensed consolidated balance sheets and statements of cash flow, and other commitments of our liquidity and capital resources during the nine months ended July 31, 2015.

Cash, Cash Equivalents and Short-Term Investments

	July 31, 2015		October 31, 2014		$ Change		% Change
	(dollars in millions)
Cash and cash equivalents	$	986.4	$	985.8	$	0.6	—	%
Short-term investments	$	136.5	$	—	$	136.5	100	%
Total	$	1,122.9	$	985.8	$	137.1	14	%

Cash, cash equivalents and short-term investments increased primarily due to higher cash collections and proceeds from our senior unsecured revolving credit facility, which were partially offset by cash used for stock repurchases under our accelerated stock repurchase agreement entered into in December 2014 (the 2015 ASR), debt repayments, and cash paid for acquisitions and intangible assets.

Cash Flows

	July 31,
	2015			2014			$ Change
	(dollars in millions)
Nine months ended
Cash provided by operating activities	$	342.7		$	378.0		$	(35.3	)
Cash used in investing activities	(333.7		)	(430.1		)	96.4
Cash provided by (used in) financing activities	13.4			(62.7		)	76.1

We expect cash from our operating activities to fluctuate as a result of a number of factors, including the timing of our billings and collections, our operating results, and the timing and amount of tax and other liability payments. Cash provided by our operations is dependent primarily upon the payment terms of our license agreements. We generally receive cash from upfront arrangements much sooner than from time-based license revenue, in which the license fee is typically paid either quarterly or annually over the term of the license.

Cash provided by operating activities. Cash provided by operating activities for the nine months ended July 31, 2015 was lower compared to the same period in fiscal 2014 primarily due to higher disbursements to vendors and lower net income.

Cash used in investing activities. Cash used in investing activities for the nine months ended July 31, 2015 was lower compared to the same period in fiscal 2014, primarily due to a decrease of $246.6 million in cash paid for acquisitions and intangible assets, net of cash acquired, which was offset by net purchases of short-term investments of $137.2 million.

Cash provided by (used in) financing activities. Cash provided by financing activities for the nine months ended July 31, 2015 was higher compared to the same period in fiscal 2014 primarily due to an increase of $210.0 million in the proceeds from our senior unsecured revolving credit facility, which was partially offset by an increase of $100.3 million in cash used for share repurchases and an increase of $49.7 million for debt repayments.

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Accounts Receivable, net

	July 31, 2015		October 31, 2014		$ Change			% Change
	(dollars in millions)
Accounts Receivable, net	$	307.8	$	326.7	$	(18.9	)	(6	)%

Our accounts receivable and days sales outstanding (DSO) are primarily driven by our billing and collections activities. Our DSO was 50 days at July 31, 2015, and 55 days at October 31, 2014. Accounts receivable decreased primarily due to the timing of billings to customers and collections.

Working Capital. Working capital is comprised of current assets less current liabilities, as shown on our unaudited condensed consolidated balance sheets:

	July 31, 2015		October 31, 2014		$ Change		% Change
	(dollars in millions)
Current assets	$	1,627.5	$	1,504.7	$	122.8	8	%
Current liabilities	1,459.3		1,386.8		72.5		5	%
Working capital	$	168.2	$	117.9	$	50.3	43	%

Increases in our working capital were primarily due to (1) an increase of $136.5 million in short-term investments, (2) a decrease of $66.3 million in accounts payable and accrued liabilities due to timing of disbursements, and (3) an increase of $30.2 million in prepaid and other current assets. These increases in working capital were partially offset by (1) an increase of $160.0 million in short-term debt and (2) a decrease of $35.5 million in deferred income taxes.

Other Commitments—Credit Facility

On February 17, 2012, we entered into an agreement with several lenders (the Credit Agreement) providing for (i) a $350.0 million senior unsecured revolving credit facility (the Revolver) and (ii) a $150.0 million senior unsecured term loan facility (the Term Loan). Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due in October 2016. We can elect to make prepayments on the Term Loan, in whole or in part, without premium or penalty. On May 19, 2015, the Credit Agreement was amended and restated in order to increase the size of the Revolver from $350.0 million to $500.0 million and to extend the termination date of the Revolver from October 14, 2016 to May 19, 2020. The amended and restated Credit Agreement also replaced a financial covenant requiring us to maintain a minimum specified level of cash with a covenant requiring a minimum interest coverage ratio. Subject to obtaining additional commitments from lenders, the principal amount of the loans provided under the amended and restated Credit Agreement may be increased by us by up to an additional $150.0 million through May 2019. The amended and restated Credit Agreement contains financial covenants requiring us to operate within a maximum leverage ratio and a minimum interest coverage ratio, as well as other non-financial covenants.

As of July 31, 2015, we had a $52.5 million outstanding balance under the Term Loan, of which $22.5 million is classified as long term, and a $160.0 million outstanding balance under the Revolver, which is all considered short term. As of October 31, 2014, we had a $75.0 million outstanding balance under the Term Loan, of which $45.0 million was classified as long term, and no outstanding balance under the Revolver. Borrowings bear interest at a floating rate based on a margin over our choice of market observable base rates as defined in the amended and restated Credit Agreement. As of July 31, 2015, borrowings under the Term Loan bore interest at LIBOR +1.125% and the applicable interest rate for the Revolver was LIBOR +1.000%. In addition, commitment fees are payable on the Revolver at rates between 0.125% and 0.200% per year based on our leverage ratio on the daily amount of the revolving commitment.

Other

Our available-for-sale securities as of July 31, 2015 consist of investment-grade U.S. government agency securities, asset-backed securities, corporate debt securities, commercial paper, certificates of deposit, money market funds, and others. We follow an established investment policy and set of guidelines to monitor, manage and limit our exposure to interest rate and credit risk. The policy sets forth credit quality standards and limits our exposure to any one issuer. As of July 31, 2015, we had no direct holdings in structured investment vehicles, sub-prime mortgage-backed securities or collateralized debt obligations and no exposure to these financial instruments

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through our indirect holdings in money market mutual funds. During the nine months ended July 31, 2015, we had no impairment charge associated with our available-for-sale securities portfolio. While we cannot predict future market conditions or market liquidity, we regularly review our investments and associated risk profiles, which we believe will allow us to effectively manage the risks of our investment portfolio.

We proactively manage our cash equivalents and short-term investments balances and closely monitor our capital and stock repurchase expenditures to ensure ample liquidity. Additionally, we believe the overall credit quality of our portfolio is strong, with our global excess cash, and our cash equivalents and fixed income portfolio invested in banks and securities with a weighted-average credit rating exceeding AA. The majority of our investments are classified as Level 1 or Level 2 investments, as measured under fair value guidance. See Notes 5 and 6 of the Notes to Unaudited Condensed Consolidated Financial Statements.

We believe that our current cash and cash equivalents, short-term investments, cash generated from operations, and available credit under our Revolver will satisfy our routine business requirements for at least the next twelve months and the foreseeable future.

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Item  3. Quantitative and Qualitative Disclosures about Market Risk

See Other Commitments—Credit Facility, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, regarding borrowings under our senior unsecured revolving credit facility.

Interest Rate Risk. Our exposure to market risk for changes in interest rates has changed since October 31, 2014, due to the addition of our investments in the first quarter of fiscal 2015, which are classified as cash equivalents or short-term investments. The primary objective of our investment activities is to preserve the principal while at the same time maximizing yields without significantly increasing the risk. To achieve this objective, we maintain our portfolio of investments in a mix of tax-exempt and taxable instruments that meet high credit quality standards, as specified in our investment policy. None of these investments are held for trading purposes. Our policy also limits the amount of credit exposure to any one issue, issuer and type of instrument.

As of July 31, 2015, the stated maturities of our short-term investments are:

	Fair Value
	(in thousands)
Due in 1 year or less	$	78,364
Due in 2-5 years	58,026
Due in 6-10 years	106
Total	$	136,496

Actual maturities may differ from the stated maturities because borrowers may have the right to call or prepay certain obligations. These investments are classified as available-for-sale and are recorded on the balance sheet at fair market value with unrealized gains or losses, net of tax, reported as a component of accumulated other comprehensive income (loss), or OCI. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net. Realized gains and losses on sales of available-for-sale securities have not been material in any period presented. The following table presents the amounts of our short-term investments that are subject to interest rate risk by fiscal year of effective maturity and average book yield:

	Maturing in Year Ending October 31,
	2015			2016			2017			2018			Total		Fair Value
	(in thousands)
Short-term investments (variable rate)	$	—		$	2,151		$	2,653		$	600		$	5,404	$	5,404
Average interest rate	—		%	0.55		%	0.60		%	0.81		%
Short-term investments (fixed rate)	$	45,309		$	73,429		$	12,354		$	—		$	131,092	$	131,092
Average interest rate	0.40		%	0.61		%	0.91		%	—		%

As of July 31, 2015, our exposure to market risk has not changed materially other than for the short-term investments discussed above, since October 31, 2014. For more information on financial market risks related to changes in interest rates, reference is made to Item 7A. Quantitative and Qualitative Disclosure about Market Risk contained in Part II of our Annual Report on Form 10-K for the fiscal year ended October 31, 2014, filed with the SEC on December 15, 2014.

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Item  4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures. As of July 31, 2015, Synopsys carried out an evaluation under the supervision and with the participation of Synopsys’ management, including the Co-Chief Executive Officers and Chief Financial Officer, of the effectiveness of the design and operation of Synopsys’ disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable, not absolute, assurance of achieving their control objectives. Our Co-Chief Executive Officers and Chief Financial Officer have concluded that, as of July 31, 2015, Synopsys’ disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports Synopsys files and submits under the Exchange Act is recorded, processed, summarized and reported as and when required, and that such information is accumulated and communicated to Synopsys’ management, including the Co-Chief Executive Officers and Chief Financial Officer, to allow timely decisions regarding its required disclosure.

(b) Changes in Internal Control over Financial Reporting. There were no changes in Synopsys’ internal control over financial reporting during the three months ended July 31, 2015 that have materially affected, or are reasonably likely to materially affect, Synopsys’ internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are subject to routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The ultimate outcome of any litigation is uncertain and unfavorable outcomes could have a negative impact on our results of operations and financial condition. Regardless of outcome, litigation can have an adverse impact on Synopsys because of the defense costs, diversion of management resources and other factors.

Mentor Patent Litigation

We are engaged in complex patent litigation with Mentor Graphics Corporation (Mentor) involving several actions in different forums. We acquired Emulation & Verification Engineering S.A. (EVE) on October 4, 2012. At the time of the acquisition, EVE and EVE-USA, Inc. (collectively, the EVE Parties) were defendants in three patent infringement lawsuits filed by Mentor. Mentor filed suit against the EVE Parties in federal district court in the District of Oregon on August 16, 2010 alleging that EVE’s ZeBu products infringed Mentor’s United States Patent No. 6,876,962. Mentor filed an additional suit in federal district court in the District of Oregon on August 17, 2012 alleging that EVE’s ZeBu products infringed Mentor’s United States Patent No. 6,947,882. Both cases sought compensatory damages, including lost profits and royalties, and a permanent injunction. Mentor also filed a patent infringement lawsuit against Nihon EVE K.K. in Tokyo District Court in 2010 alleging that certain ZeBu products infringe Mentor’s Japanese Patent No. P3,588,324. This case seeks compensatory damages, a permanent injunction and destruction of inventory. On May 15, 2015, the Tokyo District Court ruled that such products did not infringe Mentor's patent. Mentor has appealed the decision.

On September 27, 2012, Synopsys and the EVE Parties filed an action for declaratory relief against Mentor in federal district court in the Northern District of California, seeking a determination that Mentor’s United States Patents Nos. 6,009,531; 5,649,176 and 6,240,376, which were the subject of a patent infringement lawsuit filed by Mentor against EVE in 2006 and settled in the same year, are invalid and not infringed by EVE’s products, and that Mentor is without right or authority to threaten or maintain suit against the plaintiffs on such patents. Mentor asserted patent infringement counterclaims in this action based on the same three patents and sought compensatory damages, including lost profits and royalties, and a permanent injunction. In April 2013, this action was transferred to the federal district court in Oregon and consolidated with the two Mentor lawsuits in that district (the Oregon Action).

The Oregon Action

In the Oregon Action, Synopsys and the EVE Parties further asserted patent infringement counterclaims against Mentor based on Synopsys’ United States Patents Nos. 6,132,109 and 7,069,526, seeking compensatory damages and a permanent injunction. After pre-trial summary judgment rulings, the only patent remaining at issue in the Oregon Action was Mentor’s ‘376 patent.

The Oregon Action went to trial on the remaining Mentor patent, and a jury reached a verdict on October 10, 2014 finding that certain features of the ZeBu products infringed the ‘376 patent and assessing damages of approximately $36 million. On March 12, 2015, the court entered an injunction prohibiting certain sales activities relating to the features found by the jury to infringe. Synopsys has released a new version of ZeBu software that does not include such features. Both parties have appealed from the final judgment.

The California Action

On December 21, 2012, Synopsys filed an action for patent infringement against Mentor in federal district court in the Northern District of California, alleging that Mentor’s Veloce products infringe Synopsys’ United States Patents Nos. 5,748,488, 5,530,841, 5,680,318 and 6,836,420 (the California Action). This case seeks compensatory damages and a permanent injunction. The court stayed the action as to the ‘420 patent pending the U.S. Patent and Trademark Office's inter partes review of that patent (discussed below). On January 20, 2015, the court granted Mentor's motion for summary judgment on the '488, '841, and '318 patents, finding that such patents were invalid. Synopsys has appealed the court's ruling.

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PTO Proceedings

On September 26, 2012, Synopsys filed two inter partes review requests with the U.S. Patent and Trademark Office (the PTO) challenging the validity of Mentor’s ‘376 and ‘882 patents. The PTO granted review of the ‘376 patent and denied review of the ‘882 patent. On February 19, 2014, the PTO issued its final decision in the review of the ‘376 patent, finding some of the challenged claims invalid and some of the challenged claims valid. On April 22, 2014, Synopsys appealed to the Federal Circuit from the PTO’s decision. Mentor filed a cross-appeal on May 2, 2014.

On December 21, 2013, Mentor filed an inter partes review request with the PTO challenging the validity of Synopsys’ ‘420 patent. On June 11, 2015, the PTO issued its final decision in the review, finding all of the challenged claims invalid. On August 12, 2015, Synopsys appealed to the Federal Circuit from the PTO’s decision.

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Item 1A. Risk Factors

We describe our risk factors below.

The continued uncertainty in the global economy, and its potential impact on the semiconductor and electronics industries in particular, may negatively affect our business, operating results and financial condition.

While the global economy has shown improvement, there are still uncertainties surrounding the strength of the recovery in many regions. Weakness in the global economy has adversely affected consumer confidence and the growth of the semiconductor industry in recent years, causing semiconductor companies to behave cautiously and focus on their costs, including their research and development budgets, which capture spending on electronic design automation (EDA) products and services. Further uncertainty caused by a global recession could lead some of our customers to postpone their decision-making, decrease their spending and/or delay their payments to us. Continuing caution by semiconductor companies could, among other things, limit our ability to maintain or increase our sales or recognize revenue from committed contracts and in turn could adversely affect our business, operating results and financial condition.

We cannot predict when widespread global economic confidence will be restored. Events such as the timing and execution of the tapering of asset purchases by the U.S. Federal Reserve may continue to drive stock market and interest rate volatility, consumer confidence and product demand. In addition, should further economic instability affect the banking and financial services industry and result in credit downgrades of the banks we rely on for foreign currency forward contracts, credit and banking transactions, and deposit services, or cause them to default on their obligations, it could adversely affect our financial results and our business. Accordingly, our future business and financial results are subject to uncertainty, and our stock price is at risk of volatile change. If economic conditions deteriorate in the future, or, in particular, if the semiconductor industry does not grow, our future revenues and financial results could be adversely affected. Conversely, in the event of future improvements in economic conditions for our customers, the positive impact on our revenues and financial results may be deferred due to our business model.

The growth of our business depends on the semiconductor and electronics industries.

The growth of the EDA industry as a whole, and our EDA and IP product sales in particular, is dependent on the semiconductor and electronics industries. A substantial portion of our business and revenue depends upon the commencement of new design projects by semiconductor manufacturers and their customers. The increasing complexity of designs of systems-on-chips and integrated circuits, and customers’ concerns about managing costs, have previously led and in the future could lead to a decrease in design starts and design activity in general, with some customers focusing more on one discrete phase of the design process or opting for less advanced, but less risky, manufacturing processes that may not require the most advanced EDA products. Demand for our products and services could decrease and our financial condition and results of operations could be adversely affected if growth in the semiconductor and electronics industries slows or stalls. Additionally, as the EDA industry matures, consolidation may result in stronger competition from companies better able to compete as sole source vendors. This increased competition may cause our revenue growth rate to decline and exert downward pressure on our operating margins, which may have an adverse effect on our business and financial condition.

Furthermore, the semiconductor and electronics industries have become increasingly complex ecosystems. Many of our customers outsource the manufacture of their semiconductor designs to foundries. Our customers also frequently incorporate third-party intellectual property (IP), whether provided by us or other vendors, into their designs to improve the efficiency of their design process. We work closely with major foundries to ensure that our EDA, IP, and manufacturing solutions are compatible with their manufacturing processes. Similarly, we work closely with other major providers of semiconductor IP, particularly microprocessor IP, to optimize our EDA tools for use with their IP designs and to assure that their IP and our own IP products, which may each provide for the design of separate components on the same chip, work effectively together. If we fail to optimize our EDA and IP solutions for use with major foundries’ manufacturing processes or major IP providers’ products, or if our access to such foundry processes or third-party IP products is hampered, then our solutions may become less desirable to our customers, resulting in an adverse effect on our business and financial condition.

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We may not be able to realize the potential financial or strategic benefits of the acquisitions we complete, or find suitable target businesses and technology to acquire, which could hurt our ability to grow our business, develop new products or sell our products.

Acquisitions are an important part of our growth strategy. We have completed a significant number of acquisitions in recent years. We expect to make additional acquisitions in the future, but we may not find suitable acquisition targets or we may not be able to consummate desired acquisitions due to unfavorable credit markets, commercially unacceptable terms, or other risks, which could harm our operating results. Acquisitions are difficult, time-consuming, and pose a number of risks, including:

• Potential negative impact on our earnings per share;

• Failure of acquired products to achieve projected sales;

• Problems in integrating the acquired products with our products;

• Difficulties entering into new markets in which we are not experienced or where competitors may have stronger positions;

• Potential downward pressure on operating margins due to lower operating margins of acquired businesses, increased headcount costs and other expenses associated with adding and supporting new products;

• Difficulties in retaining and integrating key employees;

• Substantial reductions of our cash resources and/or the incurrence of debt;

• Failure to realize expected synergies or cost savings;

• Difficulties in integrating or expanding sales, marketing and distribution functions and administrative systems, including information technology and human resources systems;

• Dilution of our current stockholders through the issuance of common stock as part of the merger consideration;

• Assumption of unknown liabilities, including tax and litigation, and the related expenses and diversion of resources;

• Disruption of ongoing business operations, including diversion of management’s attention and uncertainty for employees and customers, particularly during the post-acquisition integration process;

• Potential negative impact on our relationships with customers, distributors and business partners;

• Exposure to new operational risks, regulations, and business customs to the extent acquired businesses are located in regions where we are not currently conducting business;

• The need to implement controls, processes and policies appropriate for a public company at acquired companies that may have lacked such controls, processes and policies;

• Negative impact on our earnings resulting from the application of Accounting Standards Codification (ASC) 805, Business Combinations; and

• Requirements imposed by government regulators in connection with their review of an acquisition, including required divestitures or restrictions on the conduct of our business or the acquired business.

If we do not manage these risks, the acquisitions that we complete may have an adverse effect on our business and financial condition.

For example, we have recently acquired several providers of software quality, testing, and security tools, including Coverity, Inc. and Codenomicon OY. This is a new, though adjacent, technology space for us. The customers for these tools are diverse and include industries with which we do not have experience. We may need to develop new sales and marketing strategies and meet new customer service requirements. At the same time, we will need to compete against new and unfamiliar competitors that may have more financial resources, industry experience or established customer relationships than we do. To successfully develop our software quality, testing, and security offerings, we will need to skillfully balance our investment in the space with investment in our existing products, as well as attract and retain employees with expertise in these new fields. If we fail to do so, we may not realize the expected benefits of our acquisitions, and it may have a negative effect on our earnings and financial condition.

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Consolidation among our customers, as well as within the industries in which we operate, may negatively impact our operating results.

A number of business combinations, including mergers, asset acquisitions and strategic partnerships, among our customers and in the semiconductor and electronics industries have occurred recently, and more could occur in the future. Consolidation among our customers could lead to fewer customers or the loss of customers, increased customer bargaining power, or reduced customer spending on software and services. The loss of customers or reduced customer spending could adversely affect our business and financial condition. In addition, we and our competitors from time to time acquire businesses and technologies to complement and expand our respective product offerings. If any of our competitors consolidate or acquire businesses and technologies which we do not offer, they may be able to offer a larger technology portfolio, a larger support and service capability, or lower prices, which could negatively impact our business and operating results.

Changes in accounting principles or standards, or in the way they are applied, could result in unfavorable accounting charges or effects and unexpected financial reporting fluctuations, and could adversely affect our reported operating results.

We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP). These principles are subject to interpretation by the Securities and Exchange Commission (SEC) and various bodies formed to interpret and create appropriate accounting principles and guidance. A change in existing principles, standards or guidance can have a significant effect on our reported results, may retroactively affect previously reported results, could cause unexpected financial reporting fluctuations, and may require us to make costly changes to our operational processes.

For example, the Financial Accounting Standards Board (FASB) is currently working together with the International Accounting Standards Board (IASB) to converge certain accounting principles and facilitate more comparable financial reporting between companies that are required to follow U.S. GAAP and those that are required to follow International Financial Reporting Standards (IFRS). In connection with this initiative, the FASB issued a new accounting standard for revenue recognition in May 2014 – Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)" – that supersedes nearly all existing U.S. GAAP revenue recognition guidance. Although we are currently in the process of evaluating the impact of ASU 2014-09 on our consolidated financial statements, it could change the way we account for certain of our sales transactions. Adoption of the standard could have a significant impact on our financial statements and may retroactively affect the accounting treatment of transactions completed before adoption.

Further efforts by the FASB and IASB to converge U.S. GAAP and IFRS accounting principles may have a material impact on the way we report financial results in areas including, but not limited to, lease accounting and financial statement presentation. In addition, the SEC may make a determination in the future regarding the incorporation of IFRS into the financial reporting system for U.S. companies. Changes in accounting principles from U.S. GAAP to IFRS, or to converged accounting principles, may have a material impact on our financial statements and may retroactively affect the accounting treatment of previously reported transactions.

Our operating results may fluctuate in the future, which may adversely affect our stock price.

Our operating results are subject to quarterly and annual fluctuations, which may adversely affect our stock price. Our historical results should not be viewed as indicative of our future performance due to these periodic fluctuations.

Many factors may cause our revenue or earnings to fluctuate, including:

• Changes in demand for our products due to fluctuations in demand for our customers’ products and due to constraints in our customers’ budgets for research and development and EDA products and services;

• Product competition in the EDA industry, which can change rapidly due to industry or customer consolidation and technological innovation;

• Our ability to innovate and introduce new products and services or effectively integrate products and technologies that we acquire;

• Failures or delays in completing sales due to our lengthy sales cycle, which often includes a substantial customer evaluation and approval process because of the complexity of our products and services;

• Our ability to implement effective cost control measures;

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• Our dependence on a relatively small number of large customers, and on such customers continuing to renew licenses and purchase additional products from us, for a large portion of our revenue;

• Expenses related to our acquisition and integration of businesses and technology;

• Changes to our effective tax rate;

• Delays, increased costs or quality issues resulting from our reliance on third parties to manufacture our hardware products; and

• General economic and political conditions that affect the semiconductor and electronics industries.

The timing of revenue recognition may also cause our revenue and earnings to fluctuate, due to factors that include:

• Cancellations or changes in levels of license orders or the mix between upfront license revenue and time-based license revenue;

• Delay of one or more orders for a particular period, particularly orders generating upfront license revenue;

• Delay in the completion of professional services projects that require significant modification or customization and are accounted for using the percentage of completion method;

• Delay in the completion and delivery of IP products in development that customers have paid for early access to;

• Customer contract amendments or renewals that provide discounts or defer revenue to later periods;

• The levels of our hardware revenues, which are recognized upfront and are primarily dependent upon our ability to provide the latest technology and meet customer requirements, and which may also impact our levels of excess and obsolete inventory expenses; and

• Changes in or challenges to our revenue recognition model.

These factors, or any other factors or risks discussed herein, could negatively impact our revenue or earnings and cause our stock price to decline. Additionally, our results may fail to meet or exceed the expectations of securities analysts and investors, or such analysts may change their recommendation regarding our stock, which could cause our stock price to decline.

We operate in highly competitive industries, and if we do not continue to meet our customers’ demand for innovative technology at lower costs, our business and financial condition will be harmed.

We compete against EDA vendors that offer a variety of products and services, such as Cadence Design Systems, Inc. and Mentor Graphics Corporation. We also compete with other EDA vendors, including frequent new entrants to the marketplace, that offer products focused on one or more discrete phases of the integrated circuit (IC) design process, as well as vendors of IP products and system-level solutions. Moreover, our customers internally develop design tools and capabilities that compete with our products.

The industries in which we operate are highly competitive and the demand for our products and services is dynamic and depends on a number of factors, including demand for our customers’ products, design starts and our customers’ budgetary constraints. Technology in these industries evolves rapidly and is characterized by frequent product introductions and improvements and changes in industry standards and customer requirements. Semiconductor device functionality requirements continually increase while feature widths decrease, substantially increasing the complexity, cost and risk of chip design and manufacturing. At the same time, our customers and potential customers continue to demand an overall lower total cost of design, which can lead to the consolidation of their purchases with one vendor. In order to succeed in this environment, we must successfully meet our customers’ technology requirements and increase the value of our products, while also striving to reduce their overall costs and our own operating costs.

We compete principally on the basis of technology, product quality and features (including ease-of-use), license or usage terms, post-contract customer support, interoperability among products, and price and payment terms. Specifically, we believe the following competitive factors affect our success:

• Our ability to anticipate and lead critical development cycles and technological shifts, innovate rapidly and efficiently, improve our existing products, and successfully develop or acquire new products;

• Our ability to offer products that provide both a high level of integration into a comprehensive platform and a high level of individual product performance;

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• Our ability to enhance the value of our offerings through more favorable terms such as expanded license usage, future purchase rights, price discounts and other unique rights, such as multiple tool copies, post-contract customer support, “re-mix” rights that allow customers to exchange the software they initially licensed for other Synopsys products, and the ability to purchase pools of technology; and

• Our ability to compete on the basis of payment terms.

If we fail to successfully manage these competitive factors, fail to successfully balance the conflicting demands for innovative technology and lower overall costs, or fail to address new competitive forces, our business and financial condition will be adversely affected.

If we fail to protect our proprietary technology, our business will be harmed.

Our success depends in part upon protecting our proprietary technology. Our efforts to protect our technology may be costly and unsuccessful. We rely on agreements with customers, employees and others and on intellectual property laws worldwide to protect our proprietary technology. These agreements may be breached, and we may not have adequate remedies for any breach. Additionally, despite our measures to prevent piracy, other parties may attempt to illegally copy or use our products, which could result in lost revenue. Some foreign countries do not currently provide effective legal protection for intellectual property and our ability to prevent the unauthorized use of our products in those countries is therefore limited. Our trade secrets may also be stolen, otherwise become known, or be independently developed by competitors.

We may need to commence litigation or other legal proceedings in order to:

• Assert claims of infringement of our intellectual property;

• Defend our products from piracy;

• Protect our trade secrets or know-how; or

• Determine the enforceability, scope and validity of the propriety rights of others.

If we do not obtain or maintain appropriate patent, copyright or trade secret protection, for any reason, or cannot fully defend our intellectual property rights in some jurisdictions, our business and operating results would be harmed. In addition, intellectual property litigation is lengthy, expensive and uncertain and legal fees related to such litigation will increase our operating expenses and may reduce our net income.

Our operating results could be adversely affected by an increase in our effective tax rate as a result of tax law changes, changes in our geographical earnings mix, an unfavorable government review of our tax returns, or by material differences between our forecasted and actual annual effective tax rates.

Our operations are subject to income and transaction taxes in the United States and in multiple foreign jurisdictions, with a significant amount of our foreign earnings generated by our subsidiaries organized in Ireland and Hungary. Because we have a wide range of statutory tax rates in the multiple jurisdictions in which we operate, any changes in our geographical earnings mix, including those resulting from our intercompany transfer pricing or from changes in the rules governing transfer pricing, could materially impact our effective tax rate. For example, a recent U.S. Tax Court ruling may change the way stock-based compensation costs are treated in cost sharing arrangements with subsidiaries, which if upheld, could impact our effective tax rate. Furthermore, a change in the tax law of the jurisdictions where we do business, including an increase in tax rates or an adverse change in the treatment of an item of income or expense, could result in a material increase in our tax expense. In addition, U.S. income taxes and foreign withholding taxes have not been provided for on undistributed earnings for certain of our non-U.S. subsidiaries to the extent such earnings are considered to be indefinitely reinvested in the operations of those subsidiaries.

Further changes in the tax laws of foreign jurisdictions could arise as a result of the base erosion and profit shifting (BEPS) project being undertaken by the Organisation for Economic Co-operation and Development (OECD). The OECD, which represents a coalition of member countries, is contemplating changes to numerous long-standing tax principles. These contemplated changes, if finalized and adopted by countries, could increase tax uncertainty and may adversely affect our provision for income taxes. In the U.S., a number of proposals for broad reform of the corporate tax system are under evaluation by various legislative and administrative bodies, but it is not possible to accurately determine the overall impact of such proposals on our effective tax rate at this time.

Our tax filings are subject to review or audit by the Internal Revenue Service and state, local and foreign taxing authorities. We exercise significant judgment in determining our worldwide provision for income taxes and, in

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the ordinary course of our business, there may be transactions and calculations where the ultimate tax determination is uncertain. We are also liable for potential tax liabilities of businesses we acquire. Although we believe our tax estimates are reasonable, the final determination in an audit may be materially different than the treatment reflected in our historical income tax provisions and accruals. An assessment of additional taxes because of an audit could adversely affect our income tax provision and net income in the periods for which that determination is made.

Forecasting our annual effective tax rate is highly complex, as it depends on forward-looking financial projections of our annual income and geographical mix of earnings, our interpretations of the tax laws of numerous jurisdictions, and the possible outcomes of tax audits, among other estimates and assumptions. Some items cannot be forecasted or may be treated as discrete to the future periods when they occur. If our estimates and assumptions prove incorrect, then there may be a material difference between our forecasted and actual effective tax rates, which could have a material impact on our results of operations. In addition, we maintain significant deferred tax assets related to federal research credits and certain state tax credits. Our ability to use these credits is dependent upon having sufficient future taxable income in the relevant jurisdiction. Changes in our forecasts of future income could result in an adjustment to the deferred tax asset and a related charge to earnings that could materially affect our financial results.

We may have to invest more resources in research and development than anticipated, which could increase our operating expenses and negatively affect our operating results.

We devote substantial resources to research and development. New competitors, technological advances in the semiconductor industry or by competitors, our acquisitions, our entry into new markets, or other competitive factors may require us to invest significantly greater resources than we anticipate. If we are required to invest significantly greater resources than anticipated without a corresponding increase in revenue, our operating results could decline. Additionally, our periodic research and development expenses may be independent of our level of revenue, which could negatively impact our financial results. Finally, there can be no guarantee that our research and development investments will result in products that create significant, or even any, revenue.

The global nature of our operations exposes us to increased risks and compliance obligations that may adversely affect our business.

We derive more than half of our revenue from sales outside the United States, and we expect our orders and revenue to continue to depend on sales to customers outside the U.S. In addition, we have expanded our non-U.S. operations significantly in the past several years. This strategy requires us to recruit and retain qualified technical and managerial employees, manage multiple remote locations performing complex software development projects and ensure intellectual property protection outside of the U.S. Our international operations and sales subject us to a number of increased risks, including:

• Ineffective legal protection of intellectual property rights;

• International economic and political conditions, such as political tensions between countries in which we do business;

• Difficulties in adapting to cultural differences in the conduct of business, which may include business practices that we are prohibited from engaging in by the Foreign Corrupt Practices Act or other anti-corruption laws;

• Financial risks such as longer payment cycles and difficulty in collecting accounts receivable;

• Inadequate local infrastructure that could result in business disruptions;

• Government trade restrictions, including tariffs, export licenses, or other trade barriers;

• Additional taxes and penalties; and

• Other factors beyond our control such as natural disasters, terrorism, civil unrest, war and infectious diseases.

If any of the foreign economies in which we do business deteriorate or if we fail to effectively manage our global operations, our business and results of operations will be harmed.

In addition, our global operations are subject to numerous U.S. and foreign laws and regulations, including those related to anti-corruption, tax, corporate governance, imports and exports, financial and other disclosures, privacy and labor relations. These laws and regulations are complex and may have differing or conflicting legal standards, making compliance difficult and costly. If we violate these laws and regulations we could be subject to

41

fines, penalties or criminal sanctions, and may be prohibited from conducting business in one or more countries. Although we have implemented policies and procedures to ensure compliance with these laws and regulations, there can be no assurance that our employees, contractors or agents will not violate these laws and regulations. Any violation individually or in the aggregate could have a material adverse effect on our operations and financial condition.

Our financial statements are also affected by fluctuations in foreign currency exchange rates. A weakening U.S. dollar relative to other currencies increases expenses of our foreign subsidiaries when they are translated into U.S. dollars in our consolidated statement of operations. Likewise, a strengthening U.S. dollar relative to other currencies, especially the Japanese Yen, reduces revenue of our foreign subsidiaries upon translation and consolidation. Exchange rates are subject to significant and rapid fluctuations, and therefore we cannot predict the prospective impact of exchange rate fluctuations. Although we engage in foreign currency hedging activity, we may be unable to hedge all of our foreign currency risk, which could have a negative impact on our results of operations.

Liquidity requirements in our U.S. operations may require us to raise cash in uncertain capital markets, which could negatively affect our financial condition.

As of July 31, 2015, approximately 69.2% of our worldwide cash, cash equivalents and short-term investments balance is held by our international subsidiaries. At present, such foreign funds are considered to be indefinitely reinvested abroad, to the extent they derive from foreign earnings we have indefinitely reinvested in our foreign operations. We intend to meet our U.S. cash spending needs through our existing U.S. cash balances, ongoing U.S. cash flows, and available credit under our term loan and revolving credit facilities. As of July 31, 2015, we had outstanding debt of $52.5 million under our $150 million term loan facility and $160.0 million outstanding debt under our $350 million revolving credit facility. Should our cash spending needs in the U.S. rise and exceed these liquidity sources, we may be required to incur additional debt at higher than anticipated interest rates or access other funding sources, which could negatively affect our results of operations, capital structure or the market price of our common stock.

From time to time we are subject to claims that our products infringe on third-party intellectual property rights.

We are from time to time subject to claims alleging our infringement of third-party intellectual property rights, including patent rights. For example, we and Emulation & Verification Engineering S.A. (EVE), a company we acquired in October 2012, are party to ongoing patent infringement lawsuits involving Mentor Graphics Corporation. The jury in one of the lawsuits returned a verdict of approximately $36 million in assessed damages against us for patent infringement, and the court in the lawsuit has entered an injunction prohibiting certain sales activities relating to the features found by the jury to infringe. We have appealed from the injunction and the final judgment in the case. Further information regarding the EVE lawsuits is contained in Part II, Item 1, Legal Proceedings. In addition, under our customer agreements and other license agreements, we agree in many cases to indemnify our customers if our products infringe a third party’s intellectual property rights. Infringement claims can result in costly and time-consuming litigation, require us to enter into royalty arrangements, subject us to damages or injunctions restricting our sale of products, invalidate a patent or family of patents, require us to refund license fees to our customers or to forgo future payments or require us to redesign certain of our products, any one of which could harm our business and operating results.

Product errors or defects could expose us to liability and harm our reputation and we could lose market share.

Software products frequently contain errors or defects, especially when first introduced, when new versions are released or when integrated with technologies developed by acquired companies. Product errors could affect the performance or interoperability of our products, could delay the development or release of new products or new versions of products and could adversely affect market acceptance or perception of our products. In addition, allegations of manufacturability issues resulting from use of our IP products could, even if untrue, adversely affect our reputation and our customers’ willingness to license IP products from us. Any such errors or delays in releasing new products or new versions of products or allegations of unsatisfactory performance could cause us to lose customers, increase our service costs, subject us to liability for damages and divert our resources from other tasks, any one of which could materially and adversely affect our business and operating results.

42

Cybersecurity threats or other security breaches could compromise sensitive information belonging to us or our customers and could harm our business and our reputation, particularly that of our security testing solutions.

We store sensitive data, including intellectual property, our proprietary business information and that of our customers, and confidential employee information, in our data centers and on our networks. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions that could result in unauthorized disclosure or loss of sensitive information. Because the techniques used to obtain unauthorized access to networks, or to sabotage systems, change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures. Furthermore, in the operation of our business we also use third-party vendors that store certain sensitive data, including confidential information about our employees, and these third parties are subject to their own cybersecurity threats. Any security breach of our own or a third-party vendor’s systems could cause us to be non-compliant with applicable laws or regulations, subject us to legal claims or proceedings, disrupt our operations, damage our reputation, and cause a loss of confidence in our products and services, any of which could adversely affect our business.

We recently began offering software quality and security testing solutions as a result of our acquisitions of Coverity and Codenomicon. Cybersecurity attacks are increasingly sophisticated, change frequently, and often go undetected until after an attack has been launched. If we fail to identify these new and complex methods of attack, or fail to invest sufficient resources in research and development regarding new threat vectors, our security testing products may fail to detect vulnerabilities in our customers’ software code. An actual or perceived failure to identify security flaws may harm the perceived reliability of our security testing products and could result in a loss of customers, sales, or an increased cost to remedy a problem. Furthermore, our acquisitions of Coverity and Codenomicon may increase our visibility as a security-focused company and may make us a more attractive target for attacks on our own information technology infrastructure.

We may be subject to litigation proceedings that could harm our business.

We may be subject to legal claims or regulatory matters involving stockholder, consumer, employment, competition, and other issues on a global basis. Litigation is subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include monetary damages or, in cases for which injunctive relief is sought, an injunction prohibiting us from manufacturing or selling one or more products. If we were to receive an unfavorable ruling on a matter, our business and results of operations could be materially harmed. Further information regarding material pending lawsuits, other than ordinary routine litigation incidental to our business, is contained in Part II, Item 1, Legal Proceedings.

If we fail to timely recruit and retain senior management and key employees, our business may be harmed.

We depend in large part upon the services of key members of our senior management team to drive our future success. If we were to lose the services of any member of our senior management team, our business could be adversely affected. To be successful, we must also attract and retain key technical, sales and managerial employees, including those who join Synopsys in connection with acquisitions. There are a limited number of qualified EDA and IC design engineers, and competition for these individuals is intense and has increased. Our employees are often recruited aggressively by our competitors and our customers. Any failure to recruit and retain key technical, sales and managerial employees could harm our business, results of operations and financial condition. Additionally, efforts to recruit and retain qualified employees could be costly and negatively impact our operating expenses.

We issue stock options and restricted stock units and maintain employee stock purchase plans as a key component of our overall compensation. We face pressure to limit the use of such equity-based compensation due to its dilutive effect on stockholders. In addition, we are required under U.S. GAAP to recognize compensation expense in our results of operations for employee share-based equity compensation under our equity grants and our employee stock purchase plan, which increases the pressure to limit equity-based compensation. These factors may make it more difficult for us to grant attractive equity-based packages in the future, which could limit our ability to attract and retain key employees.

43

Our business is subject to evolving corporate governance and public disclosure regulations that have increased both our compliance costs and the risk of noncompliance, which could have an adverse effect on our stock price.

We are subject to changing rules and regulations promulgated by a number of governmental and self-regulatory organizations, including the SEC, the NASDAQ Stock Market, and the FASB. These rules and regulations continue to evolve in scope and complexity and many new requirements have been created in response to laws enacted by Congress, making compliance more difficult and uncertain. For example, our efforts to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act and other new regulations, including "conflict minerals" regulations affecting our hardware products, have resulted in, and are likely to continue to result in, increased general and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities.

There are inherent limitations on the effectiveness of our controls and compliance programs.

Regardless of how well designed and operated it is, a control system can provide only reasonable assurance that its objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Moreover, although we have implemented compliance programs and compliance training for employees, such measures may not prevent our employees, contractors or agents from breaching or circumventing our policies or violating applicable laws and regulations. Failure of our control systems and compliance programs to prevent error, fraud or violations of law could have a material adverse impact on our business.

Our investment portfolio may be impaired by the deterioration of capital markets.

Our cash equivalent and short-term investment portfolio currently consists of investment-grade U.S. government agency securities, asset-backed securities, corporate debt securities, commercial paper, certificates of deposit, money market funds, municipal securities and other securities, and bank deposits. Our investment portfolio carries both interest rate risk and credit risk. Fixed rate debt securities may have their market value adversely impacted due to a credit downgrade or a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall or a credit downgrade occurs. As a result of capital pressures on certain banks, especially in Europe, and the continuing low interest rate environment, some of our financial instruments may become impaired.

Our future investment income may fall short of expectations due to changes in interest rates or if the decline in fair value of investments held by us is judged to be other-than-temporary. In addition, we may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in the issuer’s credit quality or changes in interest rates.

In preparing our financial statements we make certain assumptions, judgments and estimates that affect amounts reported in our consolidated financial statements, which, if not accurate, may significantly impact our financial results.

We make assumptions, judgments and estimates for a number of items, including the fair value of financial instruments, goodwill, long-lived assets and other intangible assets, the realizability of deferred tax assets, the recognition of revenue and the fair value of stock awards. We also make assumptions, judgments and estimates in determining the accruals for employee-related liabilities, including commissions and variable compensation, and in determining the accruals for uncertain tax positions, allowances for doubtful accounts, and legal contingencies. These assumptions, judgments and estimates are drawn from historical experience and various other factors that we believe are reasonable under the circumstances as of the date of the consolidated financial statements. Actual results could differ materially from our estimates, and such differences could significantly impact our financial results.

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Catastrophic events may disrupt our business and harm our operating results.

Due to the global nature of our business, our operating results may be negatively impacted by catastrophic events throughout the world. We rely on a global network of infrastructure applications, enterprise applications and technology systems for our development, marketing, operational, support and sales activities. A disruption or failure of these systems in the event of a major earthquake, fire, telecommunications failure, cybersecurity attack, terrorist attack, epidemic, or other catastrophic event could cause system interruptions, delays in our product development and loss of critical data and could prevent us from fulfilling our customers’ orders. Moreover, our corporate headquarters, a significant portion of our research and development activities, our data centers, and certain other critical business operations are located in California, near major earthquake faults. A catastrophic event that results in the destruction or disruption of our data centers or our critical business or information technology systems would severely affect our ability to conduct normal business operations and, as a result, our operating results would be adversely affected.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In December 2014, we entered into an accelerated share repurchase agreement (the 2015 ASR) to repurchase an aggregate of $180.0 million of our common stock. Pursuant to the 2015 ASR, we made a prepayment of $180.0 million and received an initial share delivery of shares valued at $144.0 million with an average purchase price of $43.77 per share. The remaining balance of $36.0 million was included within stockholders' equity as a forward instrument that met the criteria in the FASB authoritative guidance for equity treatment. The forward instrument was settled during the third quarter of fiscal 2015. In all, the average purchase price for the 2015 ASR was $45.37 per share, and the total shares purchased were approximately 4.0 million.

The table below sets forth information regarding repurchases of Synopsys' common stock by Synopsys during the three months ended July 31, 2015:

Period (1)	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced programs	Maximum dollar value of shares that may yet be purchased under the programs (1)
Month #1
May 3, 2015 through June 6, 2015	677,813	$	45.3659	677,813	$	200,252,833
Month #2
June 7, 2015 through July 4, 2015	—	$	—	—	$	200,252,833
Month #3
July 5, 2015 through August 1, 2015	—	$	—	—	$	200,252,833
Total	677,813	$	45.3659	677,813	$	200,252,833

(1) As of July 31, 2015, $200.3 million remained available for future repurchases under the program.

See Note 10 of Notes to Unaudited Condensed Consolidated Financial Statements for further information regarding our stock repurchase program.

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Item  6. Exhibits

Exhibit Number		Incorporated By Reference				Filed Herewith
	Exhibit Description	Form	File No.	Exhibit	Filing Date
3.1	Amended and Restated Certificate of Incorporation	10-Q	000-19807	3.1	9/15/2003
3.2	Amended and Restated Bylaws	8-K	000-19807	3.2	5/23/2012
4.1	Specimen Common Stock Certificate	S-1	33-45138	4.3	2/24/92 (effective date)
10.15	Amended and Restated Credit Agreement, dated May 19, 2015, among Synopsys as Borrower; the several Lenders from time to time parties thereto; Bank of America, N.A. and Wells Fargo Bank, N.A. as Co-Syndication Agents; HSBC Bank USA, N.A., U.S. Bank, N.A., and MUFG Union Bank, N.A., as Co-Documentation Agents; and JPMorgan Chase Bank, N.A., as Administrative Agent.	8-K	000-19807	10.15	5/20/2015
31.1	Certification of Co-Principal Executive Officer furnished pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
31.2	Certification of Co-Principal Executive Officer furnished pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
31.3	Certification of Principal Financial Officer furnished pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
32.1	Certification of Co-Principal Executive Officers and Principal Financial Officer furnished pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code					X
101.INS	XBRL Instance Document					X
101.SCH	XBRL Taxonomy Extension Schema Document					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document					X

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SYNOPSYS, INC.
Date: August 24, 2015	By:	/s/    TRAC PHAM
		Trac Pham Chief Financial Officer (Principal Financial Officer)

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EXHIBIT INDEX

Exhibit Number		Incorporated By Reference				Filed Herewith
	Exhibit Description	Form	File No.	Exhibit	Filing Date
3.1	Amended and Restated Certificate of Incorporation	10-Q	000-19807	3.1	9/15/2003
3.2	Amended and Restated Bylaws	8-K	000-19807	3.2	5/23/2012
4.1	Specimen Common Stock Certificate	S-1	33-45138	4.3	2/24/92 (effective date)
10.15	Amended and Restated Credit Agreement, dated May 19, 2015, among Synopsys as Borrower; the several Lenders from time to time parties thereto; Bank of America, N.A. and Wells Fargo Bank, N.A. as Co-Syndication Agents; HSBC Bank USA, N.A., U.S. Bank, N.A., and MUFG Union Bank, N.A., as Co-Documentation Agents; and JPMorgan Chase Bank, N.A., as Administrative Agent.	8-K	000-19807	10.15	5/20/2015
31.1	Certification of Co-Principal Executive Officer furnished pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
31.2	Certification of Co-Principal Executive Officer furnished pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
31.3	Certification of Principal Financial Officer furnished pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
32.1	Certification of Co-Principal Executive Officers and Principal Financial Officer furnished pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code					X
101.INS	XBRL Instance Document					X
101.SCH	XBRL Taxonomy Extension Schema Document					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document					X

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Aart J. de Geus, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Synopsys, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 24, 2015	/s/ Aart J. de Geus
	Aart J. de Geus   Co-Chief Executive Officer and Chairman   (Co-Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Chi-Foon Chan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Synopsys, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 24, 2015	/s/ Chi-Foon Chan
	Chi-Foon Chan   Co-Chief Executive Officer and President   (Co-Principal Executive Officer)

EX-31.3

Exhibit 31.3

CERTIFICATION

I, Trac Pham, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Synopsys, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 24, 2015	/s/ Trac Pham
	Trac Pham   Chief Financial Officer   (Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 1350, Chapter 63 of Title 18 of the United States Code (18 U.S.C-§1350), each of Aart J. de Geus, Co-Chief Executive Officer and Chairman of Synopsys, Inc., a Delaware corporation (the “Company”), Chi-Foon Chan, Co-Chief Executive Officer and President of the Company, and Trac Pham, Chief Financial Officer of the Company, does hereby certify, to such officer’s knowledge that:

The Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2015 (the “Form 10-Q”) to which this Certification is attached as Exhibit 32.1 fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act. The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

IN WITNESS WHEREOF, the undersigned have set their hands hereto as of August 24, 2015.

/s/ Aart J. de Geus

Aart J. de Geus

Co-Chief Executive Officer and Chairman

/s/ Chi-Foon Chan

Chi-Foon Chan

Co-Chief Executive Officer and President

/s/ Trac Pham

Trac Pham

Chief Financial Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and is not deemed filed with the Securities and Exchange Commission as part of the Form 10-Q or as a separate disclosure document and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

XML

Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Finite Lived Intangible Assets Amortization Expense [Line Items]
Amortization expense of intangible assets		$ 33,807	$ 33,715	$ 99,979	$ 95,645
Core/developed technology
Finite Lived Intangible Assets Amortization Expense [Line Items]
Amortization expense of intangible assets		18,822	18,354	54,639	51,966
Customer relationships
Finite Lived Intangible Assets Amortization Expense [Line Items]
Amortization expense of intangible assets		5,443	5,816	16,906	16,655
Contract rights intangible
Finite Lived Intangible Assets Amortization Expense [Line Items]
Amortization expense of intangible assets		7,917	7,913	23,595	22,719
Covenants not to compete
Finite Lived Intangible Assets Amortization Expense [Line Items]
Amortization expense of intangible assets		0	17	0	50
Trademarks and trade names
Finite Lived Intangible Assets Amortization Expense [Line Items]
Amortization expense of intangible assets		709	709	2,107	1,600
Capitalized software development costs
Finite Lived Intangible Assets Amortization Expense [Line Items]
Amortization expense of intangible assets	[1]	$ 916	$ 906	$ 2,732	$ 2,655

[1] Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed consolidated statements of operations.

XML

Credit Facility - Additional Information (Detail) - USD ($)			9 Months Ended
	May. 19, 2015	Feb. 17, 2012	Jul. 31, 2015	Oct. 31, 2014
Debt Instrument [Line Items]
Debt instrument quarterly principal payment		$ 7,500,000
Senior unsecured term loan facility long term			$ 22,500,000	$ 45,000,000	[1]
Unsecured Debt
Debt Instrument [Line Items]
Senior unsecured revolving credit facility entered date		Feb. 17, 2012
Payment schedule for term loan		Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due in October 2016.
Unsecured Debt | Revolver | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity	$ 500,000,000	$ 350,000,000
Maturity date	May 19, 2020	Oct. 14, 2016
Additional borrowings from credit facility	$ 150,000,000
Amount outstanding			$ 160,000,000	0
Unsecured Debt | Revolver | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Commitment fees percentage			0.125%
Unsecured Debt | Revolver | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Commitment fees percentage			0.20%
Unsecured Debt | Revolver | Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Borrowings, interest rate			1.00%
Unsecured Debt | Term Loan
Debt Instrument [Line Items]
Senior unsecured term loan facility, face amount		$ 150,000,000
Total Outstanding senior unsecured term loan facility			$ 52,500,000	75,000,000
Senior unsecured term loan facility long term			$ 22,500,000	$ 45,000,000	[1]
Unsecured Debt | Term Loan | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Borrowings, interest rate			1.125%

[1] Derived from audited financial statements.

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Financial Assets and Liabilities - Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) (Detail) - Foreign Exchange Contracts - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Financial Assets and Liabilities [Line Items]
Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)	[1]	$ 122	$ 24	$ 822	$ 57
Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)	[2]	$ 1,189	$ 548	$ 3,495	$ 2,950

[1] The ineffective portion includes forecast inaccuracies.

[2] The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts.

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Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Cumulative currency translation adjustments	$ (81,002)	$ (50,941)
Unrealized gain (loss) on derivative instruments, net of taxes	(14,852)	(11,148)
Unrealized gain (loss) on available-for-sale securities, net of taxes	(11)	0
Total accumulated other comprehensive income (loss)	$ (95,865)	$ (62,089)	[1]

[1] Derived from audited financial statements.

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Financial Assets and Liabilities - Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Designated As Hedging Instrument | Other current assets
Financial Assets and Liabilities [Line Items]
Fair values of derivative instruments, assets	$ 11,306	$ 9,299
Designated As Hedging Instrument | Accrued liabilities
Financial Assets and Liabilities [Line Items]
Fair values of derivative instruments, liabilities	12,329	11,656
Non-Designated Hedging Instrument | Other current assets
Financial Assets and Liabilities [Line Items]
Fair values of derivative instruments, assets	557	1
Non-Designated Hedging Instrument | Accrued liabilities
Financial Assets and Liabilities [Line Items]
Fair values of derivative instruments, liabilities	$ 34	$ 99

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Segment Disclosure (Tables)

9 Months Ended

Jul. 31, 2015

Segment Reporting [Abstract]

Revenues Related to Operations by Geographic Areas

Revenues related to operations in the United States and other geographic areas were:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Revenue:
United States	$	275,625	$	268,228	$	839,325	$	745,458
Europe	80,257		65,881		227,165		203,645
Japan	50,974		61,517		165,067		184,219
Asia-Pacific and Other	148,949		126,186		423,495		385,138
Consolidated	$	555,805	$	521,812	$	1,655,052	$	1,518,460

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Stock Repurchase Program - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended	8 Months Ended
	Dec. 31, 2014	Jul. 31, 2015	Jul. 31, 2015	Dec. 03, 2013
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program authorized amount		$ 500,000,000	$ 500,000,000	$ 500,000,000
Remaining amount available for further repurchases		200,300,000	200,300,000
Accelerated Share Repurchase Program 2015
Equity, Class of Treasury Stock [Line Items]
Prepayment amount			180,000,000
Prepayment amount, initial share value	$ 144,000,000
Prepayment amount, forward equity contract settled		$ 36,000,000
Shares purchased under agreement			$ 4,000,000
Average purchase price of shares purchased under agreement			$ 45.37
Accelerated Share Repurchase Program 2015 | Common Stock
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program authorized amount	$ 180,000,000

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Jul. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill

Goodwill as of July 31, 2015 and October 31, 2014 consisted of the following:

	(in thousands)
As of October 31, 2014	$	2,255,708
Additions	92,186
Adjustments(1)	684
Effect of foreign currency translation	(12,762		)
As of July 31, 2015	$	2,335,816

(1) Adjustments relate to changes in estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was finalized during the reporting period.

Summary of Intangible Assets

Intangible assets as of July 31, 2015 consisted of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	540,740	$	353,469	$	187,271
Customer relationships	211,611		108,957		102,654
Contract rights intangible	147,127		131,895		15,232
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	19,079		9,872		9,207
In-process research and development (IPR&D)(2)	—		—		—
Capitalized software development costs	24,627		20,492		4,135
Total	$	945,714	$	627,215	$	318,499

Intangible assets as of October 31, 2014 consisted of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	490,242	$	298,705	$	191,537
Customer relationships	210,172		92,146		118,026
Contract rights intangible	146,364		109,067		37,297
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	18,779		7,765		11,014
In-process research and development (IPR&D)(2)	3,086		—		3,086
Capitalized software development costs	21,829		17,759		4,070
Total	$	893,002	$	527,972	$	365,030

(2) IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment.

Amortization Expense Related to Intangible Assets

Amortization expense related to intangible assets consisted of the following:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Core/developed technology	$	18,822	$	18,354	$	54,639	$	51,966
Customer relationships	5,443		5,816		16,906		16,655
Contract rights intangible	7,917		7,913		23,595		22,719
Covenants not to compete	—		17		—		50
Trademarks and trade names	709		709		2,107		1,600
Capitalized software development costs(3)	916		906		2,732		2,655
Total	$	33,807	$	33,715	$	99,979	$	95,645

(3) Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed consolidated statements of operations.

Estimated Future Amortization of Intangible Assets

The following table presents the estimated future amortization of intangible assets:

Fiscal Year	(in thousands)
Remainder of fiscal 2015	$	34,126
2016	105,173
2017	68,229
2018	50,718
2019	27,945
2020 and thereafter	32,308
Total	$	318,499

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Fair Value Measures - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014	Oct. 31, 2014
Fair Value Measures [Line Items]
Other-than-temporary impairment	$ 0.0	$ 0.0	$ 0.0	$ 0.0
Non-marketable equity securities	10.6		10.6		$ 10.9
Cost Method Investments
Fair Value Measures [Line Items]
Non-marketable equity securities	6.7		6.7		6.7
Equity Method Investments
Fair Value Measures [Line Items]
Non-marketable equity securities	$ 3.9		$ 3.9		$ 4.2

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Financial Assets and Liabilities - Short-term investments (Details) $ in Thousands		Jul. 31, 2015 USD ($)
Cash equivalents
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		$ 359,833
Gross unrealized gains		0
Gross unrealized losses less than 12 months		0
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	359,833
Cash equivalents | Money market funds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		357,485
Gross unrealized gains		0
Gross unrealized losses less than 12 months		0
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	357,485
Cash equivalents | Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		2,348
Gross unrealized gains		0
Gross unrealized losses less than 12 months		0
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	2,348
Short-term investments
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		136,507
Gross unrealized gains		22
Gross unrealized losses less than 12 months		(33)
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	136,496
Short-term investments | Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		10,287
Gross unrealized gains		0
Gross unrealized losses less than 12 months		0
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	10,287
Short-term investments | U.S. government agency securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		16,605
Gross unrealized gains		4
Gross unrealized losses less than 12 months		(2)
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	16,607
Short-term investments | Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		1,403
Gross unrealized gains		2
Gross unrealized losses less than 12 months		0
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	1,405
Short-term investments | Certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		7,800
Gross unrealized gains		0
Gross unrealized losses less than 12 months		0
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	7,800
Short-term investments | Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		70,451
Gross unrealized gains		11
Gross unrealized losses less than 12 months		(22)
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	70,440
Short-term investments | Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, cost		29,961
Gross unrealized gains		5
Gross unrealized losses less than 12 months		(9)
Gross unrealized losses 12 months or longer		0
Estimated fair value	[1]	$ 29,957

[1] See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments.

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Goodwill and Intangible Assets - Summary of Goodwill (Detail) $ in Thousands		9 Months Ended
		Jul. 31, 2015 USD ($)
Goodwill [Roll Forward]
As of October 31, 2014	[1]	$ 2,255,708
Additions		92,186
Adjustments	[2]	684
Effect of foreign currency translation		(12,762)
As of July 31, 2015		$ 2,335,816

[1] Derived from audited financial statements.

[2] Adjustments relate to changes in estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was finalized during the reporting period.

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Liabilities and Restructuring Charges - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Payables and Accruals [Abstract]
Payroll and related benefits	$ 257,342	$ 302,295
Other accrued liabilities	54,793	66,666
Accounts payable	18,690	28,152
Total	$ 330,825	$ 397,113	[1]

[1] Derived from audited financial statements.

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Taxes - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jan. 31, 2014	Jul. 31, 2015
Taxes [Line Items]
Statutory federal income tax rate	35.00%			35.00%
Gross unrecognized tax benefits	$ 115,000,000			$ 115,000,000
Unrecognized tax benefits that would affect effective tax rate	115,000,000			115,000,000
Estimated potential decrease in underlying unrecognized tax benefits, minimum	0			0
Estimated potential decrease in underlying unrecognized tax benefits, maximum	23,000,000			23,000,000
Fiscal Year 2015 | IRS
Taxes [Line Items]
Tax Adjustments, Settlements, and Unusual Provisions	7,000,000
Fiscal Year 2014 | IRS
Taxes [Line Items]
Tax Adjustments, Settlements, and Unusual Provisions	$ 3,200,000
Fiscal Year 2012 | IRS
Taxes [Line Items]
Unrecognized tax benefits decrease resulting from settlement			$ 10,000,000
Fiscal Year 2012 | Taiwan
Taxes [Line Items]
Unrecognized tax benefits decrease resulting from settlement				$ 1,100,000
Fiscal Year 2009 and 2010 | Taiwan
Taxes [Line Items]
Tax Adjustments, Settlements, and Unusual Provisions		$ 3,900,000
Unrecognized tax benefits decrease resulting from settlement		$ 5,100,000

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Stock Compensation - Schedule of Intrinsic Value of Equity Awards Exercised (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Stock Compensation [Abstract]
Intrinsic value of awards exercised	$ 17,631	$ 3,709	$ 42,262	$ 23,556

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Financial Assets and Liabilities - Unaudited Condensed Consolidated Statement of Operations Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Financial Assets and Liabilities [Line Items]
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	$ 638	$ (855)	$ (13,521)	$ 1,617
Amount of gain (loss) reclassified from OCI (effective portion)	(2,390)	2,540	(9,817)	4,973
Foreign Exchange Contracts | Revenues
Financial Assets and Liabilities [Line Items]
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	1,994	(40)	5,334	3,324
Amount of gain (loss) reclassified from OCI (effective portion)	4,005	1,563	6,411	3,237
Foreign Exchange Contracts | Operating Expenses
Financial Assets and Liabilities [Line Items]
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	(1,356)	(815)	(18,855)	(1,707)
Amount of gain (loss) reclassified from OCI (effective portion)	$ (6,395)	$ 977	$ (16,228)	$ 1,736

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Summary of Significant Accounting Policies

9 Months Ended

Jul. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The Company has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnote disclosures it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its unaudited condensed consolidated balance sheets, results of operations, comprehensive income and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in Synopsys’ Annual Report on Form 10-K for the fiscal year ended October 31, 2014 as filed with the SEC on December 15, 2014.

Use of Estimates. To prepare financial statements in conformity with GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position.

Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Fiscal Year End. The Company’s fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. When a 53-week year occurs, the Company includes the additional week in the first fiscal quarter to realign fiscal quarters with calendar quarters. Fiscal 2015 and 2014 are both 52-week years. The third fiscal quarters, and first nine months, of fiscal 2015 and 2014 ended on August 1, 2015 and August 2, 2014, respectively, and the prior fiscal year ended on November 1, 2014. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end.

Subsequent Events. The Company has evaluated subsequent events through the date that these unaudited condensed consolidated financial statements were issued.

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Net Income per Share - Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Earnings Per Share [Abstract]
Net income		$ 55,387	$ 65,656	$ 176,172	$ 196,669
Weighted-average common shares for basic net income per share (shares)		155,533	155,194	154,835	154,611
Dilutive effect of potential common shares from equity-based compensation (shares)		3,051	2,428	3,015	2,642
Weighted-average common shares for diluted net income per share (shares)		158,584	157,622	157,850	157,253
Basic (in USD per share)		$ 0.36	$ 0.42	$ 1.14	$ 1.27
Diluted (in USD per share)		$ 0.35	$ 0.42	$ 1.12	$ 1.25
Anti-dilutive employee stock-based awards excluded (shares)	[1]	563	2,875	1,529	2,057

[1] These employee stock-based awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future.

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Financial Assets and Liabilities - Investments Maturity Table (Details) $ in Thousands	Jul. 31, 2015 USD ($)
Amortized Cost
Due in 1 year or less	$ 78,364
Due in 1-5 years	58,037
Due in 6-10 years	106
Total	136,507
Fair Value
Due in 1 year or less	78,364
Due in 2-5 years	58,026
Due in 6-10 years	106
Total	$ 136,496

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Jul. 31, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Components of Accumulated Other Comprehensive Income (Loss)

Components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows:

	July 31, 2015			October 31, 2014
	(in thousands)
Cumulative currency translation adjustments	$	(81,002	)	$	(50,941	)
Unrealized gain (loss) on derivative instruments, net of taxes	(14,852		)	(11,148		)
Unrealized gain (loss) on available-for-sale securities, net of taxes	(11		)	—
Total accumulated other comprehensive income (loss)	$	(95,865	)	$	(62,089	)

Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income

The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows:

	Three Months Ended   July 31,					Nine Months Ended   July 31,
	2015			2014		2015			2014
	(in thousands)
Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statement of operations:
Gain (loss) on cash flow hedges, net of taxes
Revenues	$	4,005		$	1,563	$	6,411		$	3,237
Operating expenses	(6,395		)	977		(16,228		)	1,736
Gain (loss) on available-for-sale securities
Other income (expense)	$	5		—		22			$	—
Total reclassifications into net income	$	(2,385	)	$	2,540	$	(9,795	)	$	4,973

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Liabilities and Restructuring Charges (Tables)

9 Months Ended

Jul. 31, 2015

Liabilities and Restructuring Charges [Abstract]

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of:

	July 31, 2015		October 31, 2014
	(in thousands)
Payroll and related benefits	$	257,342	$	302,295
Other accrued liabilities	54,793		66,666
Accounts payable	18,690		28,152
Total	$	330,825	$	397,113

Other Long-Term Liabilities

Other long-term liabilities consist of:

	July 31, 2015		October 31, 2014
	(in thousands)
Deferred compensation liability	$	161,087	$	145,508
Other long-term liabilities	43,018		13,464
Total	$	204,105	$	158,972

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Accumulated Other Comprehensive Income (Loss) - Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) - Reclassification out of accumulated other comprehensive income (loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications into net income	$ (2,385)	$ 2,540	$ (9,795)	$ 4,973
Revenues | Gain (loss) on cash flow hedges, net of taxes
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications into net income	4,005	1,563	6,411	3,237
Operating Expenses | Gain (loss) on cash flow hedges, net of taxes
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications into net income	6,395	977	16,228	1,736
Other Income (Expense) | Gain (loss) on available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications into net income	$ 5	$ 0	$ 22	$ 0

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Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Financial Assets And Liabilities [Abstract]
Gain (loss) recorded in other income (expense), net	$ (1,409)	$ (53)	$ (4,402)	$ (667)

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Stock Repurchase Program (Tables)

9 Months Ended

Jul. 31, 2015

Stock Repurchase Program [Abstract]

Stock Repurchase And Reissuance Activities

Stock repurchase activities are as follow:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Total shares repurchased	678		—		3,968		2,050
Total cost of the repurchased shares	$	36,000	$	—	$	180,000	$	79,747
Reissuance of treasury stock	1,553		931		3,931		3,519

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Stock Compensation (Tables)

9 Months Ended

Jul. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Arrangements

The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Cost of license	$	2,463		$	2,176		$	6,673		$	5,952
Cost of maintenance and service	547			684			1,574			1,646
Research and development expense	11,955			10,126			32,432			28,037
Sales and marketing expense	5,268			4,696			13,573			12,394
General and administrative expense	3,672			3,717			10,517			10,312
Stock compensation expense before taxes	23,905			21,399			64,769			58,341
Income tax benefit	(5,637		)	(4,905		)	(15,273		)	(13,372		)
Stock compensation expense after taxes	$	18,268		$	16,494		$	49,496		$	44,969

Schedule of Intrinsic Value of Equity Awards Exercised

The intrinsic values of equity awards exercised during the periods are as follows:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Intrinsic value of awards exercised	$	17,631	$	3,709	$	42,262	$	23,556

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Description of Business

9 Months Ended

Jul. 31, 2015

Accounting Policies [Abstract]

Description of Business

Description of Business

Synopsys, Inc. (Synopsys or the Company) is a global leader in providing software, intellectual property and services used to design integrated circuits and electronic systems. The Company supplies the electronic design automation (EDA) software that engineers use to design, create prototypes for and test integrated circuits, also known as chips. The Company also offers intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. The Company provides software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. To complement these product offerings, the Company provides technical services to support these solutions and help its customers develop chips and electronic systems. The Company is also a leading provider of software tools that developers use to improve the quality, security and time-to-market of software code in a wide variety of industries, including electronics, financial services, energy, and industrials.

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Net Income per Share (Tables)

9 Months Ended

Jul. 31, 2015

Earnings Per Share [Abstract]

Reconciliation of Weighted-Average Common Shares Used to Calculate Net Income Per Share

The table below reconciles the weighted-average common shares used to calculate basic net income per share with the weighted-average common shares used to calculate diluted net income per share:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands, except per share amounts)
Numerator:
Net income	$	55,387	$	65,656	$	176,172	$	196,669
Denominator:
Weighted-average common shares for basic net income per share	155,533		155,194		154,835		154,611
Dilutive effect of potential common shares from equity-based compensation	3,051		2,428		3,015		2,642
Weighted-average common shares for diluted net income per share	158,584		157,622		157,850		157,253
Net income per share:
Basic	$	0.36	$	0.42	$	1.14	$	1.27
Diluted	$	0.35	$	0.42	$	1.12	$	1.25
Anti-dilutive employee stock-based awards excluded(1)	563		2,875		1,529		2,057

(1) These employee stock-based awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future.

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Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) $ in Thousands	Jul. 31, 2015 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2015	$ 34,126
2016	105,173
2017	68,229
2018	50,718
2019	27,945
2020 and thereafter	32,308
Total	$ 318,499

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Liabilities and Restructuring Charges - Components of Other Long Term Liabilities (Detail) - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Liabilities, Other than Long-term Debt, Noncurrent [Abstract]
Deferred compensation liability	$ 161,087	$ 145,508
Other long-term liabilities	43,018	13,464
Total	$ 204,105	$ 158,972	[1]

[1] Derived from audited financial statements.

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Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014	[1]
Current assets:
Cash and cash equivalents	$ 986,423	$ 985,762
Short-term investments	136,496	0
Total cash, cash equivalents and short-term investments	1,122,919	985,762
Accounts receivable, net	307,825	326,727
Deferred income taxes	75,939	111,449
Income taxes receivable and prepaid taxes	36,344	26,496
Prepaid and other current assets	84,510	54,301
Total current assets	1,627,537	1,504,735
Property and equipment, net	260,667	249,098
Goodwill	2,335,816	2,255,708
Intangible assets, net	318,499	365,030
Long-term prepaid taxes	13,800	17,645
Long-term deferred income taxes	211,733	208,156
Other long-term assets	185,920	175,127
Total assets	4,953,972	4,775,499
Current liabilities:
Accounts payable and accrued liabilities	330,825	397,113
Accrued income taxes	25,750	31,404
Deferred revenue	912,768	928,242
Short-term debt	190,000	30,000
Total current liabilities	1,459,343	1,386,759
Long-term accrued income taxes	39,207	50,952
Long-term deferred revenue	90,569	77,646
Long-term debt	22,500	45,000
Other long-term liabilities	204,105	158,972
Total liabilities	1,815,724	1,719,329
Stockholders’ equity:
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding	0	0
Common stock, $0.01 par value: 400,000 shares authorized; 155,929 and 155,965 shares outstanding, respectively	1,559	1,560
Capital in excess of par value	1,604,994	1,614,603
Retained earnings	1,688,764	1,551,592
Treasury stock, at cost: 1,336 and 1,299 shares, respectively	(61,204)	(49,496)
Accumulated other comprehensive income (loss)	(95,865)	(62,089)
Total stockholders’ equity	3,138,248	3,056,170
Total liabilities and stockholders’ equity	$ 4,953,972	$ 4,775,499

[1] Derived from audited financial statements.

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Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Financial Assets And Liabilities [Abstract]
Total gross notional amount	$ 639,416	$ 793,937
Net fair value	$ (501)	$ (2,455)

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Unaudited Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Statement of Comprehensive Income [Abstract]
Deferred gains (losses), tax	$ 675	$ 311	$ 6,188	$ 502
Reclassification adjustment on deferred (gains) losses included in net income, tax	(926)	(205)	(4,334)	(1,784)
Changes in unrealized gains (losses) on available-for-sale securities, tax	$ 0	$ 0	$ 0	$ 0

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Stock Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	$ 23,905	$ 21,399	$ 64,769	$ 58,341
Income tax benefit	(5,637)	(4,905)	(15,273)	(13,372)
Stock compensation expense after taxes	18,268	16,494	49,496	44,969
Cost of license
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	2,463	2,176	6,673	5,952
Cost of maintenance and service
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	547	684	1,574	1,646
Research and development expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	11,955	10,126	32,432	28,037
Sales and marketing expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	5,268	4,696	13,573	12,394
General and administrative expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	$ 3,672	$ 3,717	$ 10,517	$ 10,312

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Taxes (Tables)

9 Months Ended

Jul. 31, 2015

Income Tax Disclosure [Abstract]

Provision for Income Taxes and Effective Tax Rates

The following table presents the provision (benefit) for income taxes and the effective tax rates:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Income before income taxes	$	65,193		$	70,771		$	225,692		$	210,014
Provision (benefit) for income taxes	$	9,806		$	5,115		$	49,520		$	13,345
Effective tax rate	15.0		%	7.2		%	21.9		%	6.4		%

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Other Income (Expense), net - Components of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Other Nonoperating Income (Expense)
Interest income	$ 540	$ 294	$ 2,240	$ 975
Interest expense	(599)	(715)	(2,057)	(1,654)
Gain (loss) on assets related to executive deferred compensation plan	1,815	3,069	7,091	7,529
Foreign currency exchange gain (loss)	1,111	80	5,317	865
Other, net	844	816	4,193	11,082
Total	$ 3,711	$ 3,544	$ 16,784	$ 18,797

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Taxes

9 Months Ended

Jul. 31, 2015

Income Tax Disclosure [Abstract]

Taxes

Taxes

Effective Tax Rate

The Company estimates its annual effective tax rate at the end of each fiscal quarter. The Company’s estimate takes into account estimations of annual pre-tax income, the geographic mix of pre-tax income and the Company’s interpretations of tax laws and possible outcomes of audits.

The following table presents the provision (benefit) for income taxes and the effective tax rates:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Income before income taxes	$	65,193		$	70,771		$	225,692		$	210,014
Provision (benefit) for income taxes	$	9,806		$	5,115		$	49,520		$	13,345
Effective tax rate	15.0		%	7.2		%	21.9		%	6.4		%

The Company’s effective tax rate for the three and nine months ended July 31, 2015 is lower than the statutory federal income tax rate of 35% primarily due to the lower tax rates applicable to its non-U.S. operations and U.S. federal and California research tax credits, partially offset by state taxes, non-deductible stock compensation, and the integration of acquired technologies.

The Company's effective tax rate increased in the three and nine months ended July 31, 2015, as compared to the same periods in fiscal 2014, primarily due to the net impact of the integration of acquired technologies, partially offset by the reinstatement of the U.S. federal research tax credit through December 31, 2014. The effective tax rate for the three and nine months ended July 31, 2014 was lower due to the tax benefits of statutes of limitation lapses and settlements with the Taiwan tax authorities for fiscal 2010 and 2009 and with the IRS for fiscal 2012.

On December 19, 2014, the president signed into law the Tax Increase Prevention Act of 2014 which reinstated the research tax credit retroactive to January 1, 2014 and extended the credit through December 31, 2014. As a result of the new legislation, the Company recognized a benefit in the first quarter of fiscal 2015 related to ten months of fiscal 2014 as well as a benefit to the annual effective tax rate for two months of fiscal 2015.

On July 27, 2015, the Tax Court issued an opinion (Altera Corp. et al. v. Commissioner) regarding the treatment of stock-based compensation expense in intercompany cost-sharing arrangements.  However, U.S. Treasury has not withdrawn the requirement to include stock-based compensation from its regulations.  Also, there is uncertainty related to the IRS response to the Tax Court opinion, the final resolution of this issue, and the potential favorable benefits to the Company.  As such, no impact will be recorded at this time.  The Company will continue to monitor developments related to this opinion and the potential impact of those developments on the Company’s current and prior fiscal years.

The Company’s total gross unrecognized tax benefits at July 31, 2015 are $115.0 million exclusive of interest and penalties. If the total gross unrecognized tax benefits at July 31, 2015 were recognized in the future, approximately $115.0 million would decrease the effective tax rate.

The timing of the resolution of income tax examinations is highly uncertain as well as the amounts and timing of various tax payments that are part of the settlement process. This could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. The Company believes that in the coming twelve months, it is reasonably possible that either certain audits will conclude or the statute of limitations on certain state and foreign income and withholding taxes will expire, or both. Given the uncertainty as to ultimate settlement terms, the timing of payment and the impact of such settlements on other uncertain tax positions, the range of the estimated potential decrease in underlying unrecognized tax benefits is between $0 and $23 million.

IRS Examinations

In the third quarter of fiscal 2015, the Company reached final settlement with the Examination Division of the IRS on the integration of acquired technologies for fiscal 2015 and research tax credit for fiscal 2014 that resulted in $7.0 million and $3.2 million in tax benefits, respectively.

In the first quarter of fiscal 2014, the Company reached final settlement with the Examination Division of the IRS on the remaining fiscal 2012 issues and recognized approximately $10.0 million in unrecognized tax benefits.

Non-U.S. Examinations

In the first quarter of fiscal 2015, the Company reached final settlement with the Taiwan tax authorities for fiscal 2012, with regard to certain transfer pricing issues. As a result of the settlement the Company recognized approximately $1.1 million in unrecognized tax benefits.

In the second quarter of fiscal 2014, the Company reached settlements with the Taiwan tax authorities for fiscal 2010 and 2009, with regard to certain transfer pricing issues. As a result of the settlements and the application of the settlements to other open fiscal years, the Company's unrecognized tax benefits decreased by $5.1 million. The net tax benefit resulting from the settlements and the application to other open fiscal years was $3.9 million.

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Business Combinations (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2015	Oct. 31, 2014	[1]
Business Acquisition [Line Items]
Goodwill	$ 2,335,816	$ 2,255,708
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	120,800
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	8,400
Goodwill	92,200
Business Acquisition, Goodwill, Expected Tax Deductible Amount	2,300
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	37,100
Business Combination, Acquisition Related Costs	$ 4,400
Series of Individually Immaterial Business Acquisitions | Minimum
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	1 year
Series of Individually Immaterial Business Acquisitions | Maximum
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	6 years

[1] Derived from audited financial statements.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jul. 31, 2015

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates. To prepare financial statements in conformity with GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position.

Principles of Consolidation

Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Fiscal Year End

Fiscal Year End. The Company’s fiscal year generally ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. When a 53-week year occurs, the Company includes the additional week in the first fiscal quarter to realign fiscal quarters with calendar quarters. Fiscal 2015 and 2014 are both 52-week years. The third fiscal quarters, and first nine months, of fiscal 2015 and 2014 ended on August 1, 2015 and August 2, 2014, respectively, and the prior fiscal year ended on November 1, 2014. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end.

Subsequent Events

Subsequent Events. The Company has evaluated subsequent events through the date that these unaudited condensed consolidated financial statements were issued.

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).”  This ASU requires an entity to recognize revenue when goods are transferred or services are provided to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This ASU also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date.” With the issuance of ASU 2015-14, the new revenue guidance ASU 2014-09 will be effective for fiscal 2019, including interim periods within that reporting period, using one of two prescribed retrospective methods. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting.

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Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2015		Jul. 31, 2014
Cash flow from operating activities:
Net income	$ 176,172		$ 196,669
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation	154,535		140,750
Stock compensation	63,463		58,341
Allowance for doubtful accounts	1,100		(750)
(Gain) loss on sale of investments	(22)		(6,538)
Deferred income taxes	24,134		7,459
Net changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	16,976		24,834
Prepaid and other current assets	(35,836)		982
Other long-term assets	(16,141)		(18,847)
Accounts payable and accrued liabilities	(25,512)		(28,270)
Income taxes	(20,633)		(18,950)
Deferred revenue	4,507		22,361
Net cash provided by operating activities	342,743		378,041
Cash flows from investing activities:
Proceeds from sales and maturities of short-term investments	48,155		0
Purchases of short-term investments	(185,402)		0
Proceeds from sales of long-term investments	0		7,313
Purchases of property and equipment	(67,708)		(58,085)
Cash paid for acquisitions and intangible assets, net of cash acquired	(126,883)		(373,513)
Capitalization of software development costs	(2,798)		(2,812)
Other	900		(3,000)
Net cash used in investing activities	(333,736)		(430,097)
Cash flows from financing activities:
Proceeds from credit facility	410,000		200,000
Repayment of debt	(272,924)		(223,239)
Issuances of common stock	56,414		45,336
Purchases of treasury stock	(180,000)		(79,747)
Other	(116)		(5,008)
Net cash provided by (used in) financing activities	13,374		(62,658)
Effect of exchange rate changes on cash and cash equivalents	(21,720)		(4,681)
Net change in cash and cash equivalents	661		(119,395)
Cash and cash equivalents, beginning of year	985,762	[1]	1,022,441
Cash and cash equivalents, end of period	$ 986,423		$ 903,046

[1] Derived from audited financial statements.

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Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2015	Oct. 31, 2014	[1]
Statement of Financial Position [Abstract]
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	2,000,000	2,000,000
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	400,000,000	400,000,000
Common Stock, shares outstanding	155,929,000	155,965,000
Treasury stock, shares	1,336,000	1,299,000

[1] Derived from audited financial statements.

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Stock Repurchase Program

9 Months Ended

Jul. 31, 2015

Stock Repurchase Program [Abstract]

Stock Repurchase Program

Stock Repurchase Program

The Company’s Board of Directors (the Board) previously approved a stock repurchase program 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 replenished the stock repurchase program up to $500.0 million on December 3, 2013, as announced on December 4, 2013. 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, as amended (the 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 July 31, 2015, $200.3 million remained available for further repurchases under the program.

In December 2014, the Company entered into an accelerated share repurchase agreement (the 2015 ASR) to repurchase an aggregate of $180.0 million of the Company’s common stock. Pursuant to the 2015 ASR, the Company made a prepayment of $180.0 million of which an initial share value of $144.0 million was delivered in December and the $36.0 million forward equity contract was settled during the third fiscal quarter of fiscal 2015. Total shares purchased under the 2015 ASR were approximately 4.0 million shares at an average purchase price of $45.37 per share.

Stock repurchase activities are as follow:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Total shares repurchased	678		—		3,968		2,050
Total cost of the repurchased shares	$	36,000	$	—	$	180,000	$	79,747
Reissuance of treasury stock	1,553		931		3,931		3,519

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Document and Entity Information - shares	9 Months Ended
	Jul. 31, 2015	Aug. 20, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	SNPS
Entity Registrant Name	SYNOPSYS INC
Entity Central Index Key	0000883241
Current Fiscal Year End Date	--10-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		155,947,407

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Stock Compensation

9 Months Ended

Jul. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation

Stock Compensation

The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Cost of license	$	2,463		$	2,176		$	6,673		$	5,952
Cost of maintenance and service	547			684			1,574			1,646
Research and development expense	11,955			10,126			32,432			28,037
Sales and marketing expense	5,268			4,696			13,573			12,394
General and administrative expense	3,672			3,717			10,517			10,312
Stock compensation expense before taxes	23,905			21,399			64,769			58,341
Income tax benefit	(5,637		)	(4,905		)	(15,273		)	(13,372		)
Stock compensation expense after taxes	$	18,268		$	16,494		$	49,496		$	44,969

As of July 31, 2015, there was $177.8 million of unamortized share-based compensation expense, which is expected to be amortized over a weighted-average period of approximately 2.7 years.

The intrinsic values of equity awards exercised during the periods are as follows:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Intrinsic value of awards exercised	$	17,631	$	3,709	$	42,262	$	23,556

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Unaudited Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Revenue:
Time-based license	$ 445,807	$ 431,184	$ 1,324,677	$ 1,255,515
Upfront license	48,878	31,594	139,671	101,863
Maintenance and service	61,120	59,034	190,704	161,082
Total revenue	555,805	521,812	1,655,052	1,518,460
Cost of revenue:
License	77,516	68,573	218,650	198,700
Maintenance and service	25,251	20,685	82,244	62,065
Amortization of intangible assets	26,704	26,272	78,182	74,699
Total cost of revenue	129,471	115,530	379,076	335,464
Gross margin	426,334	406,282	1,275,976	1,182,996
Operating expenses:
Research and development	197,999	182,809	567,924	528,395
Sales and marketing	116,988	112,271	343,736	332,847
General and administrative	43,925	37,438	121,254	112,246
Amortization of intangible assets	6,188	6,537	19,066	18,291
Restructuring charges	(248)	0	15,088	0
Total operating expenses	364,852	339,055	1,067,068	991,779
Operating income	61,482	67,227	208,908	191,217
Other income (expense), net	3,711	3,544	16,784	18,797
Income before income taxes	65,193	70,771	225,692	210,014
Provision (benefit) for income taxes	9,806	5,115	49,520	13,345
Net income	$ 55,387	$ 65,656	$ 176,172	$ 196,669
Net income per share:
Basic (in USD per share)	$ 0.36	$ 0.42	$ 1.14	$ 1.27
Diluted (in USD per share)	$ 0.35	$ 0.42	$ 1.12	$ 1.25
Shares used in computing per share amounts:
Basic (shares)	155,533	155,194	154,835	154,611
Diluted (shares)	158,584	157,622	157,850	157,253

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Financial Assets and Liabilities

9 Months Ended

Jul. 31, 2015

Financial Assets And Liabilities [Abstract]

Financial Assets and Liabilities

Financial Assets and Liabilities

Cash equivalents and short-term investments. The Company classifies time deposits and other investments with maturities less than three months as cash equivalents. Debt securities and other investments with maturities longer than three months are classified as short-term investments. The Company’s investments generally have a term of less than three years and are classified as available-for-sale carried at fair value, with unrealized gains and losses included in the unaudited condensed consolidated balance sheet as a component of accumulated other comprehensive income (loss), net of tax. Those unrealized gains or losses deemed other than temporary are reflected in other income (expense), net. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net.

During the first quarter of fiscal 2015, the Company made investments in available-for-sale securities. As of July 31, 2015, the balances of these investments are:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Months			Gross Unrealized Losses 12 Months or Longer		Estimated Fair Value(1)
	(in thousands)
Cash equivalents:
Money market funds	$	357,485	$	—	$	—		$	—	$	357,485
Commercial paper	2,348		—		—			—		2,348
Total:	359,833		—		—			—		359,833
Short-term investments:
U.S. government agency securities	16,605		4		(2		)	—		16,607
Municipal bonds	1,403		2		—			—		1,405
Certificates of deposit	7,800		—		—			—		7,800
Commercial paper	10,287		—		—			—		10,287
Corporate debt securities	70,451		11		(22		)	—		70,440
Asset-backed securities	29,961		5		(9		)	—		29,957
Total:	136,507		22		(33		)	—		136,496

(1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments.

As of July 31, 2015, the stated maturities of the Company's short-term investments are:

	Amortized Cost		Fair Value
	(in thousands)
Due in 1 year or less	$	78,364	$	78,364
Due in 2-5 years	58,037		58,026
Due in 6-10 years	106		106
Total	$	136,507	$	136,496

Non-marketable equity securities. The Company’s strategic investment portfolio consists of non-marketable equity securities in privately-held companies. The securities accounted for under cost method investments are reported at cost net of impairment losses. Securities accounted for under equity method investments are recorded at cost plus the proportional share of the issuers’ income or loss, which is recorded in the Company’s other income (expense), net. The cost basis of securities sold is based on the specific identification method. Refer to Note 6. Fair Value Measures.

Derivatives. The Company recognizes derivative instruments as either assets or liabilities in the unaudited condensed consolidated financial statements at fair value and provides qualitative and quantitative disclosures about such derivatives. The Company operates internationally and is exposed to potentially adverse movements in foreign currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately 1 month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies.

The duration of forward contracts ranges from approximately one month to 22 months, the majority of which are short-term. The Company does not use foreign currency forward contracts for speculative or trading purposes. The Company enters into foreign exchange forward contracts with high credit quality financial institutions that are rated ‘A’ or above and to date has not experienced nonperformance by counterparties. Further, the Company anticipates continued performance by all counterparties to such agreements.

The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the unaudited condensed consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting.

Cash Flow Hedging Activities

Certain foreign exchange forward contracts are designated and qualify as cash flow hedges. These contracts have durations of approximately 22 months or less. Certain forward contracts are rolled over periodically to capture the full length of exposure to the Company’s foreign currency risk, which can be up to three years. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on the hedged transactions. The effective portion of gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (OCI) in stockholders’ equity and reclassified into revenue or operating expenses, as appropriate, at the time the hedged transactions affect earnings. The Company expects a majority of the hedge balance in OCI to be reclassified to the statements of operations within the next twelve months.

Hedging effectiveness is evaluated monthly using spot rates, with any gain or loss caused by hedging ineffectiveness recorded in other income (expense), net. The premium/discount component of the forward contracts is recorded to other income (expense), net, and is not included in evaluating hedging effectiveness.

Non-designated Hedging Activities

The Company’s foreign exchange forward contracts that are used to hedge non-functional currency denominated balance sheet assets and liabilities are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the underlying assets and liabilities, which are also recorded in other income (expense), net. The duration of the forward contracts for hedging the Company’s balance sheet exposure is approximately one month.

The Company also has certain foreign exchange forward contracts for hedging certain international revenues and expenses that are not designated as hedging instruments. Accordingly, any gains or losses from changes in the fair value of the forward contracts are recorded in other income (expense), net. The gains and losses on these forward contracts generally offset the gains and losses associated with the foreign currency in operating income. The duration of these forward contracts is usually less than one year. The overall goal of the Company’s hedging program is to minimize the impact of currency fluctuations on its net income over its fiscal year.

The effects of the changes in the fair values of non-designated forward contracts are summarized as follows:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Gain (loss) recorded in other income (expense), net	$	(1,409	)	$	(53	)	$	(4,402	)	$	(667	)

The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding:

	As of July 31, 2015			As of October 31, 2014
	(in thousands)
Total gross notional amount	$	639,416		$	793,937
Net fair value	$	(501	)	$	(2,455	)

The notional amounts for derivative instruments do not represent the amount of the Company’s exposure to market gain or loss. The Company’s exposure to market gain or loss will vary over time as a function of currency exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments.

The following represents the unaudited condensed consolidated balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments:

	Fair values of derivative instruments designated as hedging instruments		Fair values of derivative instruments not designated as hedging instruments
	(in thousands)
As of July 31, 2015
Other current assets	$	11,306	$	557
Accrued liabilities	$	12,329	$	34
As of October 31, 2014
Other current assets	$	9,299	$	1
Accrued liabilities	$	11,656	$	99

The following table represents the unaudited condensed consolidated statement of operations location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax:

	Location of gain (loss) recognized in OCI on derivatives	Amount of gain (loss) recognized in OCI on derivatives (effective portion)			Location of gain (loss) reclassified from OCI	Amount of gain (loss) reclassified from OCI (effective portion)
	(in thousands)
Three months ended   July 31, 2015
Foreign exchange contracts	Revenue	$	1,994		Revenue	$	4,005
Foreign exchange contracts	Operating expenses	(1,356		)	Operating expenses	(6,395		)
Total		$	638			$	(2,390	)
Three months ended   July 31, 2014
Foreign exchange contracts	Revenue	$	(40	)	Revenue	$	1,563
Foreign exchange contracts	Operating expenses	(815		)	Operating expenses	977
Total		$	(855	)		$	2,540
Nine months ended   July 31, 2015
Foreign exchange contracts	Revenue	$	5,334		Revenue	$	6,411
Foreign exchange contracts	Operating expenses	(18,855		)	Operating expenses	(16,228		)
Total		$	(13,521	)		$	(9,817	)
Nine months ended   July 31, 2014
Foreign exchange contracts	Revenue	$	3,324		Revenue	$	3,237
Foreign exchange contracts	Operating expenses	(1,707		)	Operating expenses	1,736
Total		$	1,617			$	4,973

The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense), net:

Foreign exchange contracts	Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)(1)		Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2)
	(in thousands)
For the three months ended July 31, 2015	$	122	$	1,189
For the three months ended July 31, 2014	$	24	$	548
For the nine months ended July 31, 2015	$	822	$	3,495
For the nine months ended July 31, 2014	$	57	$	2,950

(1) The ineffective portion includes forecast inaccuracies.

(2) The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts.

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Goodwill and Intangible Assets

9 Months Ended

Jul. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill as of July 31, 2015 and October 31, 2014 consisted of the following:

	(in thousands)
As of October 31, 2014	$	2,255,708
Additions	92,186
Adjustments(1)	684
Effect of foreign currency translation	(12,762		)
As of July 31, 2015	$	2,335,816

(1) Adjustments relate to changes in estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was finalized during the reporting period.

Intangible assets as of July 31, 2015 consisted of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	540,740	$	353,469	$	187,271
Customer relationships	211,611		108,957		102,654
Contract rights intangible	147,127		131,895		15,232
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	19,079		9,872		9,207
In-process research and development (IPR&D)(2)	—		—		—
Capitalized software development costs	24,627		20,492		4,135
Total	$	945,714	$	627,215	$	318,499

Intangible assets as of October 31, 2014 consisted of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	490,242	$	298,705	$	191,537
Customer relationships	210,172		92,146		118,026
Contract rights intangible	146,364		109,067		37,297
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	18,779		7,765		11,014
In-process research and development (IPR&D)(2)	3,086		—		3,086
Capitalized software development costs	21,829		17,759		4,070
Total	$	893,002	$	527,972	$	365,030

(2) IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment.

Amortization expense related to intangible assets consisted of the following:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Core/developed technology	$	18,822	$	18,354	$	54,639	$	51,966
Customer relationships	5,443		5,816		16,906		16,655
Contract rights intangible	7,917		7,913		23,595		22,719
Covenants not to compete	—		17		—		50
Trademarks and trade names	709		709		2,107		1,600
Capitalized software development costs(3)	916		906		2,732		2,655
Total	$	33,807	$	33,715	$	99,979	$	95,645

(3) Amortization of capitalized software development costs is included in cost of license revenue in the unaudited condensed consolidated statements of operations.

The following table presents the estimated future amortization of intangible assets:

Fiscal Year	(in thousands)
Remainder of fiscal 2015	$	34,126
2016	105,173
2017	68,229
2018	50,718
2019	27,945
2020 and thereafter	32,308
Total	$	318,499

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Effect of New Accounting Pronouncements

9 Months Ended

Jul. 31, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Effect of New Accounting Pronouncements

Effect of New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).”  This ASU requires an entity to recognize revenue when goods are transferred or services are provided to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This ASU also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date.” With the issuance of ASU 2015-14, the new revenue guidance ASU 2014-09 will be effective for fiscal 2019, including interim periods within that reporting period, using one of two prescribed retrospective methods. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting.

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Net Income per Share

9 Months Ended

Jul. 31, 2015

Earnings Per Share [Abstract]

Net Income per Share

Net Income per Share

The Company computes basic net income per share by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding, such as stock options and unvested restricted stock units and awards, during the period using the treasury stock method.

The table below reconciles the weighted-average common shares used to calculate basic net income per share with the weighted-average common shares used to calculate diluted net income per share:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands, except per share amounts)
Numerator:
Net income	$	55,387	$	65,656	$	176,172	$	196,669
Denominator:
Weighted-average common shares for basic net income per share	155,533		155,194		154,835		154,611
Dilutive effect of potential common shares from equity-based compensation	3,051		2,428		3,015		2,642
Weighted-average common shares for diluted net income per share	158,584		157,622		157,850		157,253
Net income per share:
Basic	$	0.36	$	0.42	$	1.14	$	1.27
Diluted	$	0.35	$	0.42	$	1.12	$	1.25
Anti-dilutive employee stock-based awards excluded(1)	563		2,875		1,529		2,057

(1) These employee stock-based awards were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future.

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Credit Facility

9 Months Ended

Jul. 31, 2015

Debt Disclosure [Abstract]

Credit Facility

Credit Facility

On February 17, 2012, the Company entered into an agreement with several lenders (the Credit Agreement) providing for (i) a $350.0 million senior unsecured revolving credit facility (the Revolver) and (ii) a $150.0 million senior unsecured term loan facility (the Term Loan). Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due in October 2016. The Company can elect to make prepayments on the Term Loan, in whole or in part, without premium or penalty. On May 19, 2015, the Credit Agreement was amended and restated in order to increase the size of the Revolver from $350.0 million to $500.0 million and to extend the termination date of the Revolver from October 14, 2016 to May 19, 2020. The amended and restated Credit Agreement also replaced a financial covenant requiring the Company to maintain a minimum specified level of cash with a covenant requiring a minimum interest coverage ratio. Subject to obtaining additional commitments from lenders, the principal amount of the loans provided under the amended and restated Credit Agreement may be increased by the Company by up to an additional $150.0 million through May 2019. The amended and restated Credit Agreement contains financial covenants requiring the Company to operate within a maximum leverage ratio and a minimum interest coverage ratio, as well as other non-financial covenants.

As of July 31, 2015, the Company had a $52.5 million outstanding balance under the Term Loan, of which $22.5 million is classified as long term, and a $160.0 million outstanding balance under the Revolver, which is all considered short term. As of October 31, 2014, the Company had a $75.0 million outstanding balance under the Term Loan, of which $45.0 million was classified as long term, and no outstanding balance under the Revolver. Borrowings bear interest at a floating rate based on a margin over the Company’s choice of market observable base rates as defined in the amended and restated Credit Agreement. As of July 31, 2015, borrowings under the Term Loan bore interest at LIBOR +1.125% and the applicable interest rate for the Revolver was LIBOR +1.000%. In addition, commitment fees are payable on the Revolver at rates between 0.125% and 0.200% per year based on the Company’s leverage ratio on the daily amount of the revolving commitment.

The carrying amount of the short-term and long-term debt approximates the estimated fair value. These borrowings under the amended and restated Credit Agreement have a variable interest rate structure and are classified within Level 2 of the fair value hierarchy.

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Stock Compensation - Additional Information (Detail) - Jul. 31, 2015 - USD ($) $ in Millions	Total
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unamortized share-based compensation expense	$ 177.8
Weighted-average period of total compensation costs to be recognized in years	2 years 8 months 12 days

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Fair Value Measures

9 Months Ended

Jul. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measures

Fair Value Measures

Accounting Standards Codification (ASC) 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes guidelines and enhances disclosure requirements for fair value measurements. The accounting guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance also establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical instruments in active markets;

Level 2—Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3—Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

On a recurring basis, the Company measures the fair value of certain of its assets and liabilities, which include cash equivalents, short-term investments, non-qualified deferred compensation plan assets, and foreign currency derivative contracts.

The Company’s cash equivalents and short-term investments are classified within Level 1 or Level 2 because they are valued using quoted market prices in an active market or alternative independent pricing sources and models utilizing market observable inputs.

The Company’s non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets and are therefore classified within Level 1.

The Company’s foreign currency derivative contracts are classified within Level 2 because these contracts are not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments.

The Company’s borrowings under its credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Refer to Note 8. Credit Facility.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below as of July 31, 2015:

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	357,485	$	357,485	$	—	$	—
Commercial paper	2,348		—		2,348		—
Short-term investments:
U.S. government agency securities	16,607		—		16,607		—
Municipal bonds	1,405		—		1,405		—
Certificates of deposit	7,800		—		7,800		—
Commercial paper	10,287		—		10,287		—
Corporate debt securities	70,440		—		70,440		—
Asset-backed securities	29,957		—		29,957		—
Prepaid and other current assets:
Foreign currency derivative contracts	11,863		—		11,863		—
Other long-term assets:
Deferred compensation plan assets	161,087		161,087		—		—
Total assets	$	669,279	$	518,572	$	150,707	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	12,364	$	—	$	12,364	$	—
Total liabilities	$	12,364	$	—	$	12,364	$	—

Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2014:

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	409,064	$	409,064	$	—	$	—
Prepaid and other current assets:
Foreign currency derivative contracts	9,300		—		9,300		—
Other long-term assets:
Deferred compensation plan assets	145,508		145,508		—		—
Total assets	$	563,872	$	554,572	$	9,300	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	11,755	$	—	$	11,755	$	—
Total liabilities	$	11,755	$	—	$	11,755	$	—

Assets/Liabilities Measured at Fair Value on a Non-Recurring Basis

Non-Marketable Equity Securities

Equity investments in privately-held companies, also called non-marketable equity securities, are accounted for using either the cost or equity method of accounting.

The non-marketable equity securities are measured and recorded at fair value when an event or circumstance which impacts the fair value of these securities indicates an other-than-temporary decline in value has occurred.  In such events, these equity investments would be classified within Level 3 as they are valued using significant unobservable inputs or data in an inactive market, and the valuation requires management judgment due to the absence of market price and inherent lack of liquidity. The non-marketable equity securities are measured and recorded at fair value when an event or circumstance which impacts the fair value of these securities indicates an other-than-temporary decline in value has occurred. The Company monitors these investments and generally uses the income approach to assess impairments based primarily on the financial conditions of these companies.

The Company did not recognize any impairment during the three and nine months ended July 31, 2015 and 2014, respectively.

As of July 31, 2015, the fair value of the Company’s non-marketable securities was $10.6 million, of which $6.7 million and $3.9 million were accounted for under the cost method and equity method, respectively. As of October 31, 2014, the fair value of non-marketable securities was $10.9 million, of which $6.7 million and $4.2 million were accounted for under the cost method and equity method, respectively.

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Liabilities and Restructuring Charges

9 Months Ended

Jul. 31, 2015

Liabilities and Restructuring Charges [Abstract]

Liabilities and Restructuring Charges

Liabilities and Restructuring Charges

In November 2014, the Company initiated a restructuring program that included a voluntary retirement program (VRP) and a minimal headcount reduction program. The VRP was offered to certain eligible employees in the United States and enrollment for those employees was completed on November 21, 2014. The total cost of the restructuring program was $15.1 million, of which $0.8 million and $15.1 million were paid during the three and nine months ended July 31, 2015, respectively. As of July 31, 2015, there is no outstanding balance in restructuring charges.

Accounts payable and accrued liabilities consist of:

	July 31, 2015		October 31, 2014
	(in thousands)
Payroll and related benefits	$	257,342	$	302,295
Other accrued liabilities	54,793		66,666
Accounts payable	18,690		28,152
Total	$	330,825	$	397,113

Other long-term liabilities consist of:

	July 31, 2015		October 31, 2014
	(in thousands)
Deferred compensation liability	$	161,087	$	145,508
Other long-term liabilities	43,018		13,464
Total	$	204,105	$	158,972

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Jul. 31, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows:

	July 31, 2015			October 31, 2014
	(in thousands)
Cumulative currency translation adjustments	$	(81,002	)	$	(50,941	)
Unrealized gain (loss) on derivative instruments, net of taxes	(14,852		)	(11,148		)
Unrealized gain (loss) on available-for-sale securities, net of taxes	(11		)	—
Total accumulated other comprehensive income (loss)	$	(95,865	)	$	(62,089	)

The effect of amounts reclassified out of each component of accumulated other comprehensive income (loss) into net income was as follows:

	Three Months Ended   July 31,					Nine Months Ended   July 31,
	2015			2014		2015			2014
	(in thousands)
Reclassifications from accumulated other comprehensive income (loss) into unaudited condensed consolidated statement of operations:
Gain (loss) on cash flow hedges, net of taxes
Revenues	$	4,005		$	1,563	$	6,411		$	3,237
Operating expenses	(6,395		)	977		(16,228		)	1,736
Gain (loss) on available-for-sale securities
Other income (expense)	$	5		—		22			$	—
Total reclassifications into net income	$	(2,385	)	$	2,540	$	(9,795	)	$	4,973

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Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Consolidated	$ 555,805	$ 521,812	$ 1,655,052	$ 1,518,460
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Consolidated	275,625	268,228	839,325	745,458
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Consolidated	80,257	65,881	227,165	203,645
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Consolidated	50,974	61,517	165,067	184,219
Asia-Pacific And Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Consolidated	$ 148,949	$ 126,186	$ 423,495	$ 385,138

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Taxes - Provision for Income Taxes and Effective Tax Rates (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Income Tax Disclosure [Abstract]
Income before income taxes	$ 65,193	$ 70,771	$ 225,692	$ 210,014
Provision (benefit) for income tax	$ 9,806	$ 5,115	$ 49,520	$ 13,345
Effective tax rate	15.00%	7.20%	21.90%	6.40%

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Segment Disclosure - Additional information (Detail)	3 Months Ended		9 Months Ended
	Jul. 31, 2015 Segment Customer	Jul. 31, 2014 Segment Customer	Jul. 31, 2015 Segment Customer	Jul. 31, 2014 Segment Customer
Segment Reporting Information [Line Items]
Number of reportable operating segment | Segment	1	1	1	1
Number of major customers	1	1	1	1
Customer concentration risk | Revenues
Segment Reporting Information [Line Items]
Percentage of revenues contributed by major customers	13.10%	10.50%	12.30%	10.70%

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Other Income (Expense), net (Tables)

9 Months Ended

Jul. 31, 2015

Other Income and Expenses [Abstract]

Components of Other Income (Expense), Net

The following table presents the components of other income (expense), net:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Interest income	$	540		$	294		$	2,240		$	975
Interest expense	(599		)	(715		)	(2,057		)	(1,654		)
Gain (loss) on assets related to executive deferred compensation plan	1,815			3,069			7,091			7,529
Foreign currency exchange gain (loss)	1,111			80			5,317			865
Other, net	844			816			4,193			11,082
Total	$	3,711		$	3,544		$	16,784		$	18,797

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Liabilities and Restructuring Charges - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Restructuring Charges [Abstract]
Restructuring charges	$ (248)	$ 0	$ 15,088	$ 0
Voluntary Retirement Program and Headcount Reduction Program
Restructuring Charges [Abstract]
Restructuring charges			15,100
Restructuring charges paid during period	800		15,100
Payroll and related benefits liabilities	$ 0		$ 0

XML

Other Income (Expense), net

9 Months Ended

Jul. 31, 2015

Other Income and Expenses [Abstract]

Other Income (Expense), net

Other Income (Expense), net

The following table presents the components of other income (expense), net:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Interest income	$	540		$	294		$	2,240		$	975
Interest expense	(599		)	(715		)	(2,057		)	(1,654		)
Gain (loss) on assets related to executive deferred compensation plan	1,815			3,069			7,091			7,529
Foreign currency exchange gain (loss)	1,111			80			5,317			865
Other, net	844			816			4,193			11,082
Total	$	3,711		$	3,544		$	16,784		$	18,797

XML

Financial Assets and Liabilities (Tables)

9 Months Ended

Jul. 31, 2015

Financial Assets And Liabilities [Abstract]

Summary of Available-for-Sale Securities

During the first quarter of fiscal 2015, the Company made investments in available-for-sale securities. As of July 31, 2015, the balances of these investments are:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Months			Gross Unrealized Losses 12 Months or Longer		Estimated Fair Value(1)
	(in thousands)
Cash equivalents:
Money market funds	$	357,485	$	—	$	—		$	—	$	357,485
Commercial paper	2,348		—		—			—		2,348
Total:	359,833		—		—			—		359,833
Short-term investments:
U.S. government agency securities	16,605		4		(2		)	—		16,607
Municipal bonds	1,403		2		—			—		1,405
Certificates of deposit	7,800		—		—			—		7,800
Commercial paper	10,287		—		—			—		10,287
Corporate debt securities	70,451		11		(22		)	—		70,440
Asset-backed securities	29,961		5		(9		)	—		29,957
Total:	136,507		22		(33		)	—		136,496

(1) See Note 6. Fair Value Measures for further discussion on fair values of cash equivalents and short-term investments.

Maturities of Available-for-Sale securities

As of July 31, 2015, the stated maturities of the Company's short-term investments are:

	Amortized Cost		Fair Value
	(in thousands)
Due in 1 year or less	$	78,364	$	78,364
Due in 2-5 years	58,037		58,026
Due in 6-10 years	106		106
Total	$	136,507	$	136,496

Effects on Changes in Fair Values of Non-Designated Forward Contracts

The effects of the changes in the fair values of non-designated forward contracts are summarized as follows:

	Three Months Ended   July 31,						Nine Months Ended   July 31,
	2015			2014			2015			2014
	(in thousands)
Gain (loss) recorded in other income (expense), net	$	(1,409	)	$	(53	)	$	(4,402	)	$	(667	)

Notional Amounts of Derivative Instruments

The notional amounts in the table below for derivative instruments provide one measure of the transaction volume outstanding:

	As of July 31, 2015			As of October 31, 2014
	(in thousands)
Total gross notional amount	$	639,416		$	793,937
Net fair value	$	(501	)	$	(2,455	)

Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet

The following represents the unaudited condensed consolidated balance sheet location and amount of derivative instrument fair values segregated between designated and non-designated hedge instruments:

	Fair values of derivative instruments designated as hedging instruments		Fair values of derivative instruments not designated as hedging instruments
	(in thousands)
As of July 31, 2015
Other current assets	$	11,306	$	557
Accrued liabilities	$	12,329	$	34
As of October 31, 2014
Other current assets	$	9,299	$	1
Accrued liabilities	$	11,656	$	99

Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax

The following table represents the unaudited condensed consolidated statement of operations location and amount of gains and losses on derivative instrument fair values for designated hedge instruments, net of tax:

	Location of gain (loss) recognized in OCI on derivatives	Amount of gain (loss) recognized in OCI on derivatives (effective portion)			Location of gain (loss) reclassified from OCI	Amount of gain (loss) reclassified from OCI (effective portion)
	(in thousands)
Three months ended   July 31, 2015
Foreign exchange contracts	Revenue	$	1,994		Revenue	$	4,005
Foreign exchange contracts	Operating expenses	(1,356		)	Operating expenses	(6,395		)
Total		$	638			$	(2,390	)
Three months ended   July 31, 2014
Foreign exchange contracts	Revenue	$	(40	)	Revenue	$	1,563
Foreign exchange contracts	Operating expenses	(815		)	Operating expenses	977
Total		$	(855	)		$	2,540
Nine months ended   July 31, 2015
Foreign exchange contracts	Revenue	$	5,334		Revenue	$	6,411
Foreign exchange contracts	Operating expenses	(18,855		)	Operating expenses	(16,228		)
Total		$	(13,521	)		$	(9,817	)
Nine months ended   July 31, 2014
Foreign exchange contracts	Revenue	$	3,324		Revenue	$	3,237
Foreign exchange contracts	Operating expenses	(1,707		)	Operating expenses	1,736
Total		$	1,617			$	4,973

Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses)

The following table represents the ineffective portions and portions excluded from effectiveness testing of the hedge gains (losses) for derivative instruments designated as hedging instruments, which are recorded in other income (expense), net:

Foreign exchange contracts	Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)(1)		Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2)
	(in thousands)
For the three months ended July 31, 2015	$	122	$	1,189
For the three months ended July 31, 2014	$	24	$	548
For the nine months ended July 31, 2015	$	822	$	3,495
For the nine months ended July 31, 2014	$	57	$	2,950

(1) The ineffective portion includes forecast inaccuracies.

(2) The portion excluded from effectiveness testing includes the discount earned or premium paid for the contracts.

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Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jul. 31, 2015	Oct. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	$ 669,279	$ 563,872
Total liabilities	12,364	11,755
Foreign currency derivative contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Prepaid and other current assets	11,863	9,300
Accounts payable and accrued liabilities	12,364	11,755
Deferred compensation plan assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other long-term assets	161,087	145,508
Money market funds | Cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	357,485	409,064
Commercial paper | Cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,348
Commercial paper | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	10,287
U.S. government agency securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	16,607
Municipal bonds | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	1,405
Certificates of deposit | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	7,800
Corporate debt securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	70,440
Asset-backed securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	29,957
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	518,572	554,572
Total liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency derivative contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Prepaid and other current assets	0	0
Accounts payable and accrued liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation plan assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other long-term assets	161,087	145,508
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | Cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	357,485	409,064
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | Cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agency securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	150,707	9,300
Total liabilities	12,364	11,755
Significant Other Observable Inputs (Level 2) | Foreign currency derivative contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Prepaid and other current assets	11,863	9,300
Accounts payable and accrued liabilities	12,364	11,755
Significant Other Observable Inputs (Level 2) | Deferred compensation plan assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other long-term assets	0	0
Significant Other Observable Inputs (Level 2) | Money market funds | Cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Significant Other Observable Inputs (Level 2) | Commercial paper | Cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,348
Significant Other Observable Inputs (Level 2) | Commercial paper | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	10,287
Significant Other Observable Inputs (Level 2) | U.S. government agency securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	16,607
Significant Other Observable Inputs (Level 2) | Municipal bonds | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	1,405
Significant Other Observable Inputs (Level 2) | Certificates of deposit | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	7,800
Significant Other Observable Inputs (Level 2) | Corporate debt securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	70,440
Significant Other Observable Inputs (Level 2) | Asset-backed securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	29,957
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	0	0
Total liabilities	0	0
Significant Unobservable Inputs (Level 3) | Foreign currency derivative contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Prepaid and other current assets	0	0
Accounts payable and accrued liabilities	0	0
Significant Unobservable Inputs (Level 3) | Deferred compensation plan assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other long-term assets	0	0
Significant Unobservable Inputs (Level 3) | Money market funds | Cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	$ 0
Significant Unobservable Inputs (Level 3) | Commercial paper | Cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Significant Unobservable Inputs (Level 3) | Commercial paper | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Significant Unobservable Inputs (Level 3) | U.S. government agency securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Significant Unobservable Inputs (Level 3) | Municipal bonds | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Significant Unobservable Inputs (Level 3) | Certificates of deposit | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Significant Unobservable Inputs (Level 3) | Corporate debt securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0
Significant Unobservable Inputs (Level 3) | Asset-backed securities | Short-term investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	$ 0

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Financial Assets and Liabilities - Additional Information (Details)	9 Months Ended
	Jul. 31, 2015
Financial Assets and Liabilities [Line Items]
Shipments period using hedges (in months)	1 month
Period for hedge balance in OCI to be reclassified to statement of operations (in months)	12 months
Foreign Exchange Contracts | Maximum
Financial Assets and Liabilities [Line Items]
Duration of foreign exchange forward contracts	1 year
Non-Designated Hedging Instrument
Financial Assets and Liabilities [Line Items]
Forward contracts terms (in months)	1 month
Cash Flow Hedging | Foreign Exchange Forward contracts | Maximum
Financial Assets and Liabilities [Line Items]
Derivative maturity period	22 months
Foreign currency derivative contracts | Minimum
Financial Assets and Liabilities [Line Items]
Derivative maturity period	1 month
Foreign currency derivative contracts | Maximum
Financial Assets and Liabilities [Line Items]
Derivative maturity period	22 months
Foreign currency derivative contracts | Cash Flow Hedging | Maximum
Financial Assets and Liabilities [Line Items]
Derivative maturity period	3 years

XML

Unaudited Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 55,387	$ 65,656	$ 176,172	$ 196,669
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(10,283)	1,713	(30,061)	(9,502)
Changes in unrealized gains (losses) on available-for-sale securities, net of tax of $0 for periods presented	(41)	0	(11)	0
Cash flow hedges:
Deferred gains (losses), net of tax of $675 and $6,188, for the three and nine months ended July 31, 2015, respectively, and of $311 and $502 for each of the same periods in fiscal 2014, respectively	599	(831)	(13,521)	1,658
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(926) and $(4,334), for the three and nine months ended July 31, 2015, respectively, and of $(205) and $(1,784), for each of the same periods in fiscal 2014, respectively	2,390	(2,540)	9,817	(4,973)
Other comprehensive income (loss), net of tax effects	(7,335)	(1,658)	(33,776)	(12,817)
Comprehensive income	$ 48,052	$ 63,998	$ 142,396	$ 183,852

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Business Combinations

9 Months Ended

Jul. 31, 2015

Business Combinations [Abstract]

Business Combinations

Business Combinations

During the nine months ended July 31, 2015, the Company completed several acquisitions. The aggregated total purchase consideration was $120.8 million, net of cash acquired. The Company does not consider these acquisitions to be material, individually or in the aggregate, to the Company’s balance sheet and results of operations. The preliminary purchase price allocation was as follows: $8.4 million of net assumed liabilities based on the respective fair values at the acquisition dates, $92.2 million of goodwill, of which $2.3 million is deductible for tax purposes, and $37.1 million of acquired identifiable intangible assets valued using the income or cost methods. The intangible assets are being amortized over their respective useful lives ranging from one to six years. The acquisition-related costs totaling $4.4 million were expensed as incurred in the condensed unaudited consolidated statement of operations. The Company funded the acquisitions with existing cash.

The preliminary fair value estimates for the assets acquired and liabilities assumed for these acquisitions are not yet finalized and may change as additional information becomes available during the respective measurement periods. The primary areas of those preliminary estimates relate to certain tangible assets and liabilities, identifiable intangible assets, and taxes. Additional information, which existed as of the acquisition date but is yet unknown to the Company, may become known to the Company during the remainder of the measurement period not to exceed 12 months from the acquisition date. Changes to the provisional amounts recorded as assets or liabilities during the measurement period may result in an adjustment to goodwill.

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Stock Repurchase Program - Stock Repurchase Activities (Detail) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Stock Repurchase Program
Shares repurchased (in shares)	678	0	3,968	2,050
Total cost of the repurchase shares	$ 36,000	$ 0	$ 180,000	$ 79,747
Reissuance of treasury stock (in shares)	1,553	931	3,931	3,519

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Fair Value Measures (Tables)

9 Months Ended

Jul. 31, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below as of July 31, 2015:

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	357,485	$	357,485	$	—	$	—
Commercial paper	2,348		—		2,348		—
Short-term investments:
U.S. government agency securities	16,607		—		16,607		—
Municipal bonds	1,405		—		1,405		—
Certificates of deposit	7,800		—		7,800		—
Commercial paper	10,287		—		10,287		—
Corporate debt securities	70,440		—		70,440		—
Asset-backed securities	29,957		—		29,957		—
Prepaid and other current assets:
Foreign currency derivative contracts	11,863		—		11,863		—
Other long-term assets:
Deferred compensation plan assets	161,087		161,087		—		—
Total assets	$	669,279	$	518,572	$	150,707	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	12,364	$	—	$	12,364	$	—
Total liabilities	$	12,364	$	—	$	12,364	$	—

Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2014:

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	409,064	$	409,064	$	—	$	—
Prepaid and other current assets:
Foreign currency derivative contracts	9,300		—		9,300		—
Other long-term assets:
Deferred compensation plan assets	145,508		145,508		—		—
Total assets	$	563,872	$	554,572	$	9,300	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	11,755	$	—	$	11,755	$	—
Total liabilities	$	11,755	$	—	$	11,755	$	—

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Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands		Jul. 31, 2015	Oct. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Assets		$ 945,714	$ 893,002
Accumulated Amortization		627,215	527,972
Net Assets		318,499	365,030	[1]
Core/developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Assets		540,740	490,242
Accumulated Amortization		353,469	298,705
Net Assets		187,271	191,537
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Assets		211,611	210,172
Accumulated Amortization		108,957	92,146
Net Assets		102,654	118,026
Contract rights intangible
Finite-Lived Intangible Assets [Line Items]
Gross Assets		147,127	146,364
Accumulated Amortization		131,895	109,067
Net Assets		15,232	37,297
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Gross Assets		2,530	2,530
Accumulated Amortization		2,530	2,530
Net Assets		0	0
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross Assets		19,079	18,779
Accumulated Amortization		9,872	7,765
Net Assets		9,207	11,014
In-process research and development (IPR&D)
Finite-Lived Intangible Assets [Line Items]
Gross Assets	[2]	0	3,086
Accumulated Amortization	[2]	0	0
Net Assets	[2]	0	3,086
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Gross Assets		24,627	21,829
Accumulated Amortization		20,492	17,759
Net Assets		$ 4,135	$ 4,070

[1] Derived from audited financial statements.

[2] IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment.

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Segment Disclosure

9 Months Ended

Jul. 31, 2015

Segment Reporting [Abstract]

Segment Disclosure

Segment Disclosure

Certain disclosures are required for operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers.

The Company operates in a single segment to provide software products and consulting services in the EDA software industry. In making operating decisions, the CODMs primarily consider consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Specifically, the CODMs consider where individual “seats” or licenses to the Company’s products are located in allocating revenue to particular geographic areas. Revenue is defined as revenues from external customers. Goodwill is not allocated since the Company operates in one reportable operating segment. Revenues related to operations in the United States and other geographic areas were:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Revenue:
United States	$	275,625	$	268,228	$	839,325	$	745,458
Europe	80,257		65,881		227,165		203,645
Japan	50,974		61,517		165,067		184,219
Asia-Pacific and Other	148,949		126,186		423,495		385,138
Consolidated	$	555,805	$	521,812	$	1,655,052	$	1,518,460

Geographic revenue data for multi-region, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and the Company’s methodology.

One customer accounted for 13.1% and 10.5% of the Company’s unaudited condensed consolidated revenue in the three months ended July 31, 2015 and 2014, respectively, and accounted for 12.3% and 10.7% of the Company’s unaudited condensed consolidated revenue in the nine months ended July 31, 2015 and 2014, respectively.