Summary of Significant Accounting Policies (Tables)

3 Months Ended

Jan. 31, 2019

Accounting Policies [Abstract]

Schedule of Topic 606 Impact

The following table summarizes the effects of adopting ASC 606 on the unaudited condensed consolidated statements of operations for the three months ended January 31, 2019:

	As reported under ASC 606			Adjustments			Adjusted under ASC 605
	(in thousands, except per share amounts)
Revenue:
Time-based products	$	553,716		$	15,856		$	569,572
Upfront products	130,513			(16,786		)	113,727
Maintenance and service	136,172			(21,414		)	114,758
Total revenue	820,401			(22,344		)	798,057
Cost of Revenue:
Products	116,620			—			116,620
Maintenance and service	58,829			—			58,829
Amortization of intangible assets	17,443			—			17,443
Total cost of revenue	192,892			—			192,892
Gross margin	627,509			(22,344		)	605,165
Operating expenses:
Research and development	271,326			—			271,326
Sales and marketing	155,959			11,184			167,143
General and administrative	42,061			—			42,061
Amortization of intangible assets	10,784			—			10,784
Restructuring	(35		)	—			(35		)
Total operating expenses	480,095			11,184			491,279
Operating income	147,414			(33,528		)	113,886
Other income (expense), net	(359		)	—			(359		)
Income (loss) before provision for income taxes	147,055			(33,528		)	113,527
Provision (benefit) for income taxes	(6,459		)	(5,670		)	(12,129		)
Net income (loss)	$	153,514		$	(27,858	)	$	125,656
Net income (loss) per share:							—
Basic	$	1.03		$	(0.19	)	$	0.84
Diluted	$	1.01		$	(0.19	)	$	0.82
Shares used in computing per share amounts:							—
Basic	149,288						149,288
Diluted	152,661						152,661

The following table summarizes the effects of adopting ASC 606 on certain account balances of the unaudited condensed consolidated balance sheet that were impacted as of January 31, 2019:

	As reported under ASC 606		Adjustments			Adjusted balance under ASC 605
	(in thousands)
Receivables, net	$	762,292	$	73,234		$	835,526
Prepaid and other current assets	249,927		(167,729		)	82,198
Deferred income taxes	337,824		70,362			408,186
Other long-term assets	358,527		(95,715		)	262,812
Accounts payable and other accrued liabilities	335,341		(10,713		)	324,628
Deferred revenue	1,262,201		112,374			1,374,575
Long-term deferred revenue	63,013		80,614			143,627
Other long-term liabilities (1)	296,098		(16,671		)	279,427
Retained earnings	2,820,910		(285,452		)	2,535,458

(1) Includes long-term deferred tax liabilities.

Schedule of Disaggregation of Revenue

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

	Three Months Ended   January 31,
	2019		2018
EDA	61	%	63	%
IP & System Integration	29	%	28	%
Software Integrity Products & Services	10	%	8	%
Other	—	%	1	%
Total	100	%	100	%

Schedule of Contract Assets and Liabilities

Contract balances are as follows:

	As of January 31, 2019		As of October 31, 2018
			as adjusted
	(in thousands)
Contract assets	$	167,729	$	126,897
Unbilled receivables	36,922		36,699
Deferred revenue	1,325,214		1,104,110