Subsequent Events (Notes)

12 Months Ended

Jan. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On February 18, 2016 we entered into an agreement to repurchase 8,060 shares of Mentor Graphics common stock beneficially owned by Carl C. Icahn and certain of his affiliates, at a purchase price of $18.12 per share, the NASDAQ closing price of Mentor Graphics common stock on February 18, 2016. The total purchase price for the shares was $146,050 and was funded from Mentor Graphics cash and cash equivalents on hand. This share repurchase was made outside of the existing share repurchase program. The transaction was completed on February 25, 2016.

In order to facilitate the share repurchase we paid an intercompany dividend on February 23, 2016 from foreign subsidiaries of $150,000. As the earnings associated with these funds were not treated as permanently reinvested, any U.S. tax consequences had already been included in our tax provision in prior periods.

Also to facilitate this repurchase effective February 24, 2016 our revolving credit facility was amended to increase the limit on the amount of common stock we can repurchase and dividends we can pay from $50,000 plus 70% of our cumulative net income for periods after January 31, 2011 (a total of $112,038 as of January 31, 2016) to $200,000 plus 70% of our cumulative net income for periods ending after February 1, 2016.