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 August 31, 2013

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

Commission File Number: 0-19417

PROGRESS SOFTWARE CORPORATION

(Exact name of registrant as specified in its charter)

MASSACHUSETTS (State or other jurisdiction of incorporation or organization) 04-2746201 (I.R.S. Employer Identification No.)

14 Oak Park

Bedford, Massachusetts 01730

(Address of principal executive offices)(Zip code)

Telephone Number: (781) 280-4000

Indicate by check mark whether the registrant (1) 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 “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	¨	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 October 2, 2013, there were 51,917,408 shares of the registrant’s common stock, $.01 par value per share, outstanding.

PROGRESS SOFTWARE CORPORATION

FORM 10-Q

FOR THE NINE MONTHS ENDED AUGUST 31, 2013

INDEX

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of August 31, 2013 and November 30, 2012	3
	Condensed Consolidated Statements of Income for the three and nine months ended August 31, 2013 and 2012	4
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2013 and 2012	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended August 31, 2013 and 2012	6
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	39
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 6.	Exhibits	42
	Signatures	43

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets

(In thousands, except share data)	August 31, 2013		November 30, 2012
Assets
Current assets:
Cash and cash equivalents	$	215,342	$	301,792
Short-term investments	26,640		53,425
Total cash, cash equivalents and short-term investments	241,982		355,217
Accounts receivable (less allowances of $2,392 and $3,024, respectively)	53,620		70,793
Other current assets	27,252		16,478
Deferred tax assets	12,783		16,301
Assets held for sale	—		68,029
Total current assets	335,637		526,818
Property and equipment, net	56,889		63,071
Intangible assets, net	10,690		5,119
Goodwill	224,290		226,110
Deferred tax assets	24,197		26,565
Investments in auction rate securities	26,573		26,321
Other assets	8,314		10,973
Total assets	$	686,590	$	884,977
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	5,797		10,477
Accrued compensation and related taxes	23,813		39,105
Income taxes payable	—		21,486
Other accrued liabilities	37,626		39,876
Short-term deferred revenue	96,534		103,925
Liabilities held for sale	—		25,285
Total current liabilities	163,770		240,154
Long-term deferred revenue	1,044		2,817
Deferred tax liabilities	477		1,032
Other noncurrent liabilities	1,944		2,575
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value; authorized, 1,000,000 shares; issued, none	—		—
Common stock, $0.01 par value, and additional paid-in capital; authorized, 200,000,000 shares; issued and outstanding, 52,311,645 shares in 2013 and 59,594,961 shares in 2012	214,915		300,333
Retained earnings, including accumulated other comprehensive loss of $14,676 in 2013 and $10,764 in 2012	304,440		338,066
Total shareholders’ equity	519,355		638,399
Total liabilities and shareholders’ equity	$	686,590	$	884,977

See notes to unaudited condensed consolidated financial statements.

3

Condensed Consolidated Statements of Income

	Three Months Ended						Nine Months Ended
(In thousands, except per share data)	August 31, 2013			August 31, 2012			August 31, 2013			August 31, 2012
Revenue:
Software licenses	$	25,666		$	22,637		$	84,920		$	72,816
Maintenance and services	51,912			51,734			158,096			158,154
Total revenue	77,578			74,371			243,016			230,970
Costs of revenue:
Cost of software licenses	1,587			1,375			5,033			4,117
Cost of maintenance and services	6,403			7,974			21,043			22,013
Amortization of acquired intangibles	529			139			811			522
Total costs of revenue	8,519			9,488			26,887			26,652
Gross profit	69,059			64,883			216,129			204,318
Operating expenses:
Sales and marketing	24,554			24,970			79,086			67,085
Product development	14,615			12,631			42,908			33,330
General and administrative	13,660			14,375			42,390			47,789
Amortization of acquired intangibles	211			207			549			622
Restructuring expenses	5,401			1,411			9,127			6,147
Acquisition-related expenses	957			—			2,229			215
Total operating expenses	59,398			53,594			176,289			155,188
Income from operations	9,661			11,289			39,840			49,130
Other (expense) income:
Interest income and other	371			1,017			1,146			2,352
Foreign currency loss, net	(194		)	(660		)	(1,809		)	(1,476		)
Total other (expense) income, net	177			357			(663		)	876
Income from continuing operations before income taxes	9,838			11,646			39,177			50,006
Provision for income taxes	2,634			3,902			14,018			17,546
Income from continuing operations	7,204			7,744			25,159			32,460
Income (loss) from discontinued operations, net	17,639			(1,906		)	34,712			(21,041		)
Net income	$	24,843		$	5,838		$	59,871		$	11,419
Earnings per share:
Basic:
Continuing operations	$	0.13		$	0.12		$	0.45		$	0.52
Discontinued operations	0.33			(0.03		)	0.63			(0.33		)
Net income per share	$	0.46		$	0.09		$	1.08		$	0.18
Diluted:
Continuing operations	$	0.13		$	0.12		$	0.45		$	0.51
Discontinued operations	0.32			(0.03		)	0.62			(0.33		)
Net income per share	$	0.46		$	0.09		$	1.06		$	0.18
Weighted average shares outstanding:
Basic	53,532			63,469			55,451			62,888
Diluted	54,389			64,105			56,292			63,795

See notes to unaudited condensed consolidated financial statements.

4

Condensed Consolidated Statements of Comprehensive Income

	Three Months Ended						Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			August 31, 2013			August 31, 2012
Net income	$	24,843		$	5,838		$	59,871		$	11,419
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(1,548		)	658			(4,010		)	(1,365		)
Unrealized gain (loss) on investments, net of tax provision of $6 and $57 for the third quarter and the first nine months of 2013 and net of tax benefit of $54 and tax provision of $37 for the third quarter and first nine months of 2012, respectively	11			(93		)	98			726
Total other comprehensive (loss) income, net of tax	(1,537		)	565			(3,912		)	(639		)
Comprehensive income	$	23,306		$	6,403		$	55,959		$	10,780

See notes to unaudited condensed consolidated financial statements.

5

Condensed Consolidated Statements of Cash Flows

	Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012
Cash flows from operating activities:
Net income	$	59,871		$	11,419
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	8,402			6,990
Amortization of acquired intangibles and other	2,972			18,379
Stock-based compensation	16,360			21,504
Gain on dispositions	(70,991		)	—
Asset impairment	111			875
Deferred income taxes	2,179			888
Tax (deficiency) benefit from stock plans	(532		)	563
Excess tax benefit from stock plans	(1,188		)	(1,338		)
Allowances for accounts receivable	(123		)	774
Changes in operating assets and liabilities:
Accounts receivable	19,967			30,250
Other assets	(5,690		)	(5,412		)
Accounts payable and accrued liabilities	(17,416		)	4,201
Income taxes payable and uncertain tax positions	(22,762		)	(2,760		)
Deferred revenue	(4,439		)	(10,619		)
Net cash flows (used in) from operating activities	(13,279		)	75,714
Cash flows from investing activities:
Purchases of investments	—			(27,924		)
Sales and maturities of investments	25,685			70,185
Redemptions and sales of auction rate securities	25			2,925
Purchases of property and equipment	(2,989		)	(6,606		)
Payments for acquisitions, net of cash acquired	(9,450		)	—
Proceeds from divestitures, net	111,120			—
Increase in other noncurrent assets	835			247
Net cash flows from investing activities	125,226			38,827
Cash flows from financing activities:
Proceeds from stock-based compensation plans	49,109			24,284
Purchases of common stock related to withholding taxes from the issuance of restricted stock units	(2,823		)	(2,681		)
Repurchases of common stock	(241,184		)	—
Excess tax benefit from stock plans	1,188			1,338
Payment of long-term debt	—			(357		)
Net cash flows (used in) from financing activities	(193,710		)	22,584
Effect of exchange rate changes on cash	(4,687		)	(3,822		)
Net (decrease) increase in cash and cash equivalents	(86,450		)	133,303
Cash and cash equivalents, beginning of period	301,792			161,095
Cash and cash equivalents, end of period	$	215,342		$	294,398

6

Condensed Consolidated Statements of Cash Flows, continued

	Nine Months Ended
	August 31, 2013		August 31, 2012
Supplemental disclosure:
Cash paid for income taxes, net of refunds of $4,324 in 2013 and $632 in 2012	$	66,596	$	13,912
Non-cash financing activities:
Total fair value of restricted stock awards, restricted stock units and deferred stock units on date vested	$	9,890	$	8,669
Unsettled repurchases of common stock	$	3,301	$	—

See notes to unaudited condensed consolidated financial statements.

7

Notes to Condensed Consolidated Financial Statements

Note 1: Basis of Presentation

We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2012.

We made no significant changes in the application of our significant accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2012. We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our Annual Report on Form 10-K, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year.

During the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013, we completed the divestitures of the ten product lines which were not considered core product lines of our business: Actional, Artix, DataXtend, FuseSource, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic. The divestitures were part of the new strategic plan (the "Plan") we announced during fiscal year 2012. After the announcement of the Plan, we began reporting our results in two reportable segments: Core and non-Core. Since the non-Core segment ceased to exist during the first quarter of fiscal year 2013, after the closing of all these divestitures, we now operate as one reportable segment. In addition, the revenues and direct expenses of the product lines divested are included in discontinued operations in our condensed consolidated statements of income, including prior period amounts which have been revised to reflect the presentation.

In June 2013, we entered into a definitive purchase and sale agreement to divest our Apama product line to Software AG. The target market, deployment and sales model for the Apama product line differed significantly from those of our application development platform and the divestiture allowed us to focus entirely on providing leading cloud and mobile application development technologies through a single cohesive platform. The sale closed in July 2013 for a purchase price of $44.3 million. The revenue and direct expenses of the Apama product line are included in discontinued operations in our consolidated statements of income, including prior period amounts which have been revised to reflect the presentation.

Recent Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This new guidance is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on our financial position, results of operations or cash flows.

In March 2013, the FASB issued Accounting Standards Update No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05). ASU 2013-05 provides guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or a business within a foreign entity. ASU 2013-05 is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-05 is not expected to have a material impact on our financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulative Other Comprehensive Income (ASU 2013-02), which replaces the presentation requirements for reclassifications out of accumulated other comprehensive income in ASU 2011-05 and ASU 2011-12. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income if the amount reclassified is required to be reclassified to net income in its entirety. We adopted ASU 2013-02 in the second quarter of fiscal year 2013 and applied it prospectively. The adoption of ASU 2013-02 did not have any impact on our financial position, results of operations or cash flows.

8

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If after performing the qualitative assessment an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step goodwill impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. ASU 2011-08 is effective for us in fiscal year 2013. We adopted ASU 2011-08 during the first quarter of fiscal year 2013 for our annual impairment test, which occurs in the first quarter of our fiscal year. The adoption did not have any impact on our financial position, results of operations or cash flows.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220) – Presentation of Comprehensive Income (ASU 2011-05), to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220) – Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05 (ASU 2011-12), which defers the effective date of only those changes in ASU 2011-05 that relate to the presentation of reclassification adjustments. We adopted ASU 2011-05 in our first quarter of fiscal year 2013, and applied it retrospectively. We elected to report comprehensive income as a separate, but consecutive statement to net income. The adoption of ASU 2011-05 did not have any impact on our financial position, results of operations or cash flows.

Note 2: Cash, Cash Equivalents and Investments

A summary of our cash, cash equivalents and available-for-sale investments at August 31, 2013 is as follows (in thousands):

	Amortized Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash	$	156,428	$	—	$	—		$	156,428
Money market funds	58,914		—		—			58,914
State and municipal bond obligations	26,504		137		(1		)	26,640
Auction rate securities – municipal bonds	27,150		—		(3,443		)	23,707
Auction rate securities – student loans	3,500		—		(634		)	2,866
Total	$	272,496	$	137	$	(4,078	)	$	268,555

A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2012 is as follows (in thousands):

	Amortized Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash	$	176,201	$	—	$	—		$	176,201
Money market funds	125,591		—		—			125,591
State and municipal bond obligations	50,565		255		(2		)	50,818
Auction rate securities – municipal bonds	27,175		—		(3,755		)	23,420
Auction rate securities – student loans	3,500		—		(599		)	2,901
Corporate bonds	2,608		—		(1		)	2,607
Total	$	385,640	$	255	$	(4,357	)	$	381,538

9

Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands):

	August 31, 2013						November 30, 2012
	Cash and Equivalents		Short-Term Investments		Long-Term Investments		Cash and Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	156,428	$	—	$	—	$	176,201	$	—	$	—
Money market funds	58,914		—		—		125,591		—		—
State and municipal bond obligations	—		26,640		—		—		50,818		—
Auction rate securities – municipal bonds	—		—		23,707		—		—		23,420
Auction rate securities – student loans	—		—		2,866		—		—		2,901
Corporate bonds	—		—		—		—		2,607		—
Total	$	215,342	$	26,640	$	26,573	$	301,792	$	53,425	$	26,321

The valuation methodologies for our auction rate securities (ARS) are described in Note 4. Based on these methodologies, we determined that the fair value of our ARS investments is $26.6 million and $26.3 million at August 31, 2013 and November 30, 2012, respectively. The temporary impairment recorded in accumulated other comprehensive loss to reduce the value of our available-for-sale ARS investments was $4.1 million and $4.4 million at August 31, 2013 and November 30, 2012, respectively.

We will not be able to access the funds associated with our ARS investments until future auctions for these ARS are successful, we sell the securities in a secondary market, or they are redeemed by the issuer. As such, these remaining investments currently lack short-term liquidity and are therefore classified as long-term investments on the condensed consolidated balance sheets at August 31, 2013 and November 30, 2012.

Based on our cash, cash equivalents and short-term investments balance of $242.0 million, expected operating cash flows and the availability of funds under our revolving credit facility, we do not anticipate that the lack of liquidity associated with our ARS will adversely affect our ability to conduct business and we believe that we have the ability to hold the affected securities throughout the currently estimated recovery period. Therefore, the impairment of these securities is considered only temporary in nature. If the credit rating of either the security issuer or the third-party insurer underlying the investments deteriorates significantly, we may be required to adjust the carrying value of the ARS through an other-than-temporary impairment charge to earnings.

The fair value of debt securities by contractual maturity is as follows (in thousands):

	August 31, 2013		November 30, 2012
Due in one year or less (1)	$	39,011	$	55,001
Due after one year	14,202		24,745
Total	$	53,213	$	79,746

(1) Includes ARS which are tendered for interest-rate setting purposes periodically throughout the year. Beginning in February 2008, auctions for these securities began to fail, and therefore these investments currently lack short-term liquidity. The remaining contractual maturities of these securities range from 11 to 30 years.

10

Investments with continuous unrealized losses and their related fair values are as follows at August 31, 2013 (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal bond obligations	$	956	$	(1	)	$	—	$	—		$	956	$	(1	)
Auction rate securities – municipal bonds	—		—			23,707		(3,443		)	23,707		(3,443		)
Auction rate securities – student loans	—		—			2,866		(634		)	2,866		(634		)
Total	$	956	$	(1	)	$	26,573	$	(4,077	)	$	27,529	$	(4,078	)

Investments with continuous unrealized losses and their related fair values are as follows at November 30, 2012 (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal bond obligations	$	5,818	$	(1	)	$	472	$	(1	)	$	6,290	$	(2	)
Auction rate securities – municipal bonds	—		—			23,420		(3,755		)	23,420		(3,755		)
Auction rate securities – student loans	—		—			2,901		(599		)	2,901		(599		)
Corporate bonds	2,607		(1		)	—		—			2,607		(1		)
Total	$	8,425	$	(2	)	$	26,793	$	(4,355	)	$	35,218	$	(4,357	)

The unrealized losses associated with state and municipal bond obligations and corporate bonds are attributable to changes in interest rates. The unrealized losses associated with ARS are discussed above. Management does not believe any unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of August 31, 2013 and November 30, 2012.

Note 3: Derivative Instruments

We use forward contracts that are not designated as hedging instruments to hedge economically the impact of the variability in exchange rates on accounts receivable and collections denominated in certain foreign currencies. We generally do not hedge the net assets of our international subsidiaries. All forward contracts are recorded at fair value in other current assets on the condensed consolidated balance sheets at the end of each reporting period and expire within 90 days. In the three and nine months ended August 31, 2013, realized and unrealized gains of $1.3 million and $0.8 million, respectively, from our forward contracts were recognized in other income (expense) in the condensed consolidated statements of income. In the three and nine months ended August 31, 2012, realized and unrealized losses of $0.3 million and $0.0 million, respectively, from our forward contracts were recognized in other income (expense) in the condensed consolidated statements of income. These losses were substantially offset by realized and unrealized gains on the offsetting positions.

The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands):

	August 31, 2013					November 30, 2012
	Notional Value		Fair Value			Notional Value		Fair Value
Forward contracts to sell U.S. dollars	$	24,098	$	(38	)	$	6,453	$	4
Forward contracts to purchase U.S. dollars	19,873		(49		)	31,465		(190		)
Total	$	43,971	$	(87	)	$	37,918	$	(186	)

11

Note 4: Fair Value Measurements

Recurring Fair Value Measurements

The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at August 31, 2013 (in thousands):

				Fair Value Measurements Using
	Total Fair Value			Level 1		Level 2			Level 3
Assets
Money market funds	$	58,914		$	58,914	$	—		$	—
State and municipal bond obligations	26,640			—		26,640			—
Auction rate securities – municipal bonds	23,707			—		—			23,707
Auction rate securities – student loans	2,866			—		—			2,866
Foreign exchange derivatives	(87		)	—		(87		)	—
Liabilities
Contingent consideration	$	383		$	—	$	—		$	383

The following table details the fair value measurements within the fair value hierarchy of our financial assets at November 30, 2012 (in thousands):

				Fair Value Measurements Using
	Total Fair Value			Level 1		Level 2			Level 3
Money market funds	$	125,591		$	125,591	$	—		$	—
State and municipal bond obligations	50,818			—		50,818			—
Auction rate securities – municipal bonds	23,420			—		—			23,420
Auction rate securities – student loans	2,901			—		—			2,901
Corporate bonds	2,607			—		2,607			—
Foreign exchange derivatives	(186		)	—		(186		)	—

When developing fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices to measure fair value. The valuation technique used to measure fair value for our Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument.

The valuation technique used to measure fair value for our Level 3 assets, which consists of our ARS, is primarily an income approach, where the expected weighted average future cash flows are discounted back to present value for each asset. The significant unobservable inputs used in the fair value measurement of our ARS are the probability of earning the maximum rate until maturity, the probability of principal return prior to maturity, the probability of default, the liquidity risk premium and the recovery rate in default. Generally, interrelationships are such that a change in the assumptions used for the probability of principal return prior to maturity is accompanied by a directionally opposite change in one or more the following assumptions: the probability of earning the maximum rate until maturity, the probability of default and the liquidity risk premium. The recovery rate in default is somewhat independent and based upon the ARS' specific underlying assets and published recovery rate studies.

One issuer of our ARS is currently in default, but the underlying bond insurer is making interest payments on the issuer's behalf. In this situation, we used a market approach, where the significant unobservable inputs are the market credit default swap spread and the credit rating of the insurer.

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The following table provides additional quantitative information about the unobservable inputs used in our Level 3 asset valuations as of August 31, 2013:

	Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	Discounted cash flow	Probability of earning the maximum rate until maturity	0.2% - 9.9% (1.7%)
		Probability of principal return prior to maturity	75.7% - 95.1% (87.0%)
		Probability of default	4.1% - 24.1% (11.3%)
		Liquidity risk premium	4.0%
		Recovery rate in default	50% - 70% (56.5%)
	Market valuation	Market credit default swap spread of insurer	4.05%
		Credit rating of insurer	AA-

Significant increases or decreases in the underlying assumptions used to value the ARS could significantly increase or decrease the fair value estimates recorded in the consolidated balance sheets.

The following table reflects the activity for our financial assets measured at fair value using Level 3 inputs for each period presented (in thousands):

	Three Months Ended					Nine Months Ended
	August 31, 2013		August 31, 2012			August 31, 2013			August 31, 2012
Balance, beginning of period	$	26,500	$	31,448		$	26,321		$	33,539
Redemptions and repurchases	—		—			(25		)	(225		)
Transfer to Level 2 fair value measurement	—		—			—			(2,700		)
Unrealized gains (losses) included in accumulated other comprehensive loss	73		(163		)	277			671
Balance, end of period	$	26,573	$	31,285		$	26,573		$	31,285

During the second quarter of fiscal year 2012, we received a redemption notice for one of our ARS at par value. We transferred the ARS to a Level 2 fair value measurement, as the value at May 31, 2012 was based on observable inputs. The ARS was redeemed in the third quarter of fiscal year 2012.

We have classified contingent consideration related to the Rollbase, Inc. acquisition (Rollbase), which occurred in the second quarter of fiscal year 2013 (Note 7), within Level 3 of the fair value hierarchy because the fair value is derived using significant unobservable inputs, which include discount rates and probability-weighted cash flows. We determined the fair value of our contingent consideration obligations based on a probability-weighted income approach derived from probability assessments of the attainment of certain milestones. We establish discount rates to be utilized in our valuation models based on the cost to borrow that would be required by a market participant for similar instruments. In determining the probability of attaining certain milestones, we utilize data regarding similar milestone events from our own experience. On a quarterly basis, we reassess the probability factors associated with the milestones for our contingent consideration obligations. Significant judgment is employed in determining the appropriateness of these key assumptions as of the acquisition date and for each subsequent period.

The key assumptions as of August 31, 2013 related to the contingent consideration for the acquisition of Rollbase used in the model are probabilities in excess of 95% that the milestones associated with the contingent consideration will be achieved and a discount rate of 4.8%. A decrease in the probabilities of achievement could result in a significant decrease to the estimated fair value of the contingent consideration liability. During the three and nine months ended August 31, 2013, the change in the fair value of the liability was minimal.

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Nonrecurring Fair Value Measurements

The following table details our nonrecurring fair value measurements at November 30, 2012 (in thousands):

			Fair Value Measurements Using
	Total Fair Value		Level 1		Level 2		Level 3		Total Losses
Disposal group	$	16,487	$	—	$	16,487	$	—	$	8,601

The disposal group included the assets and liabilities held for sale of the Artix, Orbacus and Orbix product lines, which had a fair value of $16.5 million as of November 30, 2012. The carrying value at November 30, 2012 of $25.1 million was written down to fair value, less costs to sell, resulting in a loss of $8.6 million. The loss was recorded in income (loss) from discontinued operations in fiscal year 2012. The assets and liabilities held for sale were divested in the first quarter of fiscal year 2013 (Note 6).

We evaluate all of our assets held for sale using undiscounted cash flow models or other valuation models, such as comparative transactions and market multiples, to determine their fair values. However, a market approach was more heavily used to value the assets held for sale related to the divestitures of our non-core product lines. As bid and transaction values became apparent as we moved through the marketing and divestiture process, the fair values of the assets held for sale were established. The impairment loss recorded for the Artix, Orbacus and Orbix product lines was primarily based on our expectations of a sale price as compared to our estimation of the net assets to be sold at closing.

Note 5: Intangible Assets and Goodwill

Intangible Assets

Intangible assets are comprised of the following significant classes (in thousands):

	August 31, 2013							November 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	44,730	$	(36,117	)	$	8,613	$	42,520	$	(40,066	)	$	2,454
Customer-related and other	19,537		(17,460		)	2,077		26,477		(23,812		)	2,665
Total	$	64,267	$	(53,577	)	$	10,690	$	68,997	$	(63,878	)	$	5,119

As a result of the Rollbase acquisition in the second quarter of fiscal year 2013 (Note 7), we recorded $7.8 million of purchased technology and $0.2 million of customer relationships as intangible assets during the nine months ended August 31, 2013. As of the date of acquisition, the acquired intangible assets have a weighted average amortization period of 4.9 years. This was offset by a decrease in the gross carrying amount of our intangible assets due to the disposition of the Apama product line (Note 6).

In the three and nine months ended August 31, 2013, amortization expense related to intangible assets was $0.7 million and $1.4 million, respectively. In the three and nine months ended August 31, 2012, amortization expense related to intangible assets was $0.3 million and $1.1 million, respectively.

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Future amortization expense for intangible assets as of August 31, 2013, is as follows (in thousands):

Remainder of 2013	$	739
2014	2,638
2015	2,409
2016	1,906
2017	1,906
Thereafter	1,092
Total	$	10,690

Goodwill

Changes in the carrying amount of goodwill for the nine months ended August 31, 2013, are as follows (in thousands):

Balance, November 30, 2012	$	226,110
Addition	4,798
Disposal	(6,377		)
Translation adjustments	(241		)
Balance, August 31, 2013	$	224,290

The addition to goodwill during fiscal year 2013 is related to the acquisition of Rollbase (Note 7). The disposal is related to the sale of the Apama product line (Note 6).

During the first quarter of fiscal year 2013, we completed our annual testing for impairment of goodwill and, based on those tests, concluded that no impairment of goodwill existed as of December 15, 2012. During the second quarter of fiscal year 2013, we evaluated the impact of the disposition of the Apama product line, which was part of our single reportable segment, on goodwill and concluded that no impairment existed. Through the date and time our condensed consolidated financial statements were issued, no other trigger events have occurred that would indicate a potential impairment of goodwill exists.

Note 6: Divestitures

Under the Plan, we announced that we would divest all product lines which were not considered core product lines of our business: Actional, Artix, DataXtend, FuseSource, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic. The FuseSource and Shadow product lines were divested in fiscal year 2012. The remaining product lines were divested in the first quarter of fiscal year 2013.

In the second quarter of fiscal year 2013, we entered into a definitive purchase and sale agreement to divest our Apama product line to Software AG. The sale closed in July 2013 for a purchase price of $44.3 million.

Revenues and direct expenses of the divested product lines have been reclassified as discontinued operations for all periods presented. The fiscal year 2012 results include revenues and direct expenses of all divested product lines, since we earned revenues and incurred direct expenses for all or part of fiscal year 2012 for each of those product lines. The fiscal year 2013 results include the revenues and direct expenses of the product lines which had not been divested prior to the start of fiscal year 2013.

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The components included in discontinued operations on the condensed consolidated statements of income are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	August 31, 2013			August 31, 2012			August 31, 2013			August 31, 2012
Revenue	$	537		$	37,610		$	16,143		$	120,033
Income (loss) before income taxes	(6,221		)	(979		)	(9,338		)	(30,697		)
Income tax (benefit) provision	(1,790		)	927			(2,223		)	(9,656		)
Gain on sale, net of tax	22,070			—			41,827			—
Income (loss) from discontinued operations, net	$	17,639		$	(1,906	)	$	34,712		$	(21,041	)

Apama

In the second quarter of fiscal year 2013, we entered into a definitive purchase and sale agreement to divest our Apama product line to Software AG. The sale closed in July 2013 for a purchase price of $44.3 million. Of the total consideration, $4.5 million is held in escrow to secure indemnification claims, if any, for up to 18 months. As of August 31, 2013, the escrow is included in other assets on the consolidated balance sheet. In connection with the sale, we also entered into a three year distributor license agreement with Software AG for $0.7 million for one of our DataDirect products. The distributor license agreement does not constitute direct cash flows or significant continuing involvement of the Apama product line, and thus does not preclude us from discontinued operations treatment.

The gain on the sale of the Apama product line is calculated as follows (in thousands):

Purchase price	$	44,268
Less: transaction costs	2,029
Less: net assets
Accounts receivable	2,426
Other current assets	428
Goodwill and intangible assets	6,991
Other long-term assets	426
Deferred revenue	(3,917		)
Gain on sale	35,885
Tax provision	13,815
Gain on sale, net of tax	$	22,070

Artix, Orbacus and Orbix

In the first quarter of fiscal year 2013, we entered into a definitive purchase and sale agreement to divest our Artix, Orbacus and Orbix product lines to a subsidiary of Micro Focus International plc (Micro Focus). The divestiture of these product lines was part of the Plan. The sale closed in February 2013 for total consideration of $15.0 million.

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The gain on sale of the Artix, Orbacus and Orbix product lines is calculated as follows (in thousands):

Purchase price	$	15,000
Less: transaction costs	826
Less: indemnification obligation	1,000
Less: net assets
Accounts receivables	2,300
Goodwill and intangible assets	24,325
Other assets	20
Impairment reserve	(8,601		)
Deferred revenue	(5,893		)
Gain on sale	1,023
Tax provision	—
Gain on sale, net of tax	$	1,023

In February 2013, upon the closing of the sale of Artix, Orbacus and Orbix, we amended the definitive purchase and sale agreement with Micro Focus to provide an additional indemnification obligation with respect to a specified vendor. The fair value of the indemnification obligation on the date the sale closed and the carrying value at August 31, 2013 is $1.0 million, and is included in other accrued liabilities in the condensed consolidated balance sheet. Our maximum indemnification obligation with respect to this matter is $11.3 million. The term of the indemnification is indefinite; however, we expect the matter to be substantially resolved within the next six months.

In the fourth quarter of fiscal year 2012, we recorded an $8.6 million impairment loss on the Artix, Orbacus and Orbix assets held for sale based on our expectations of a sales price as compared to our estimation of the net assets to be sold at closing. The impairment loss was recorded as a reserve against the assets held for sale as of November 30, 2012. The gain recorded in the first quarter of fiscal year 2013 was the result of differences in our estimation of net assets to be sold at closing versus the actual value of the net assets sold at closing.

Actional, DataXtend, ObjectStore, Savvion and Sonic

In the fourth quarter of fiscal year 2012, we entered into a definitive purchase and sale agreement to divest our Actional, DataXtend, Savvion and Sonic product lines to the investment arm of Trilogy Enterprises. In December 2012, the agreement was amended to include the sale of our ObjectStore product line. The divestiture of these product lines was part of the Plan. The sale closed in December 2012 for total consideration of $60.5 million.

The gain on sale of the Actional, DataXtend, ObjectStore, Savvion and Sonic product lines is calculated as follows (in thousands):

Purchase price	$	60,500
Less: transaction costs	1,211
Less: net assets
Accounts receivables	12,004
Goodwill and intangible assets	31,693
Other assets	976
Deferred revenue	(19,168		)
Other liabilities	(299		)
Gain on sale	34,083
Tax provision	15,349
Gain on sale, net of tax	$	18,734

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Note 7: Business Combinations

On May 24, 2013, we acquired 100% of the equity interests in Rollbase, Inc. (Rollbase), a privately held software vendor based in Saratoga, California, for $9.9 million. The purchase consideration consisted of $9.5 million in cash paid and $0.4 million of contingent consideration, expected to be paid out over a two year period. The fair value of the contingent consideration was estimated to be $0.4 million at the date of acquisition. Rollbase provides Application Platform-as-a-Service (aPaas) technology that allows the rapid design, development and deployment of on-demand business applications. The purpose of the acquisition was to further the Plan in which we intend to become a leading provider of a next-generation, context-aware application development and deployment platform in the Cloud for the aPaas market. The acquisition was accounted for as a business combination, and accordingly, the results of operations of Rollbase are included in our operating results from the date of acquisition. We paid the purchase price in cash from available funds.

The allocation of the purchase price is as follows (in thousands):

	Total			Life
Cash	$	50
Acquired intangible assets	7,960			1 to 5 years
Goodwill	4,798
Deferred taxes	(2,921		)
Accounts payable and other liabilities	(8		)
Net assets acquired	$	9,879

The purchase consideration includes contingent consideration payable by the Company based on the achievement of certain milestones. The Company determined the fair value of the contingent consideration obligations by calculating the probability-weighted earn-out payments based on the assessment of the likelihood that the milestones will be achieved. The probability-weighted earn-out payments were then discounted using a discount rate commensurate with the credit risk of the Company. During the three and nine months ended August 31, 2013, the change in the fair value of the contingent consideration payable was minimal.

The stock purchase agreement included contingent earn-out provisions requiring the Company to make payments to former Rollbase owners now employed by the Company. We have concluded that the earn-out provisions for the individuals now employed by the Company, which total approximately $5.0 million, are compensation arrangements and we will accrue the maximum payouts ratably over the two year performance period, as we believe it is probable that the criteria will be met. We have incurred $1.0 million of expense related to the contingent earn-out provisions for the three and nine months ended August 31, 2013. These amounts are recorded as acquisition-related expenses in our consolidated statement of operations.

We recorded the excess of the purchase price over the identified tangible and intangible assets as goodwill. We believe that the investment value of the future enhancement of our product and solution offerings created as a result of this acquisition has principally contributed to a purchase price that resulted in the recognition of $4.8 million of goodwill, which is not deductible for tax purposes. The allocation of the purchase price was completed in the third quarter of fiscal year 2013 upon the finalization of our valuation of identifiable intangible assets and acquired deferred tax liabilities.

We incurred $1.0 million and $2.2 million of acquisition-related costs which are included in acquisition-related expenses in our consolidated statement of operations for the three and nine months ended August 31, 2013, respectively. The acquisition-related expenses for the nine months ended August 31, 2013 includes a $1.0 million termination fee related to a pre-existing license arrangement between Rollbase and another third-party.

We have not disclosed the amount of revenues and earnings of Rollbase since acquisition, nor pro forma financial information, as those amounts are not significant to our condensed consolidated financial statements.

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Note 8: Line of Credit

Our credit facility provides for a revolving line of credit in the amount of $150.0 million, with a sublimit for the issuance of standby letters of credit in a face amount up to $25.0 million and swing line loans up to $20.0 million. The credit facility also permits us to increase the revolving line of credit by up to an additional $75.0 million subject to receiving further commitments from lenders and certain other conditions. As of August 31, 2013, there were no amounts outstanding under the revolving line and $0.4 million of letters of credit.

Note 9: Common Stock Repurchases

We repurchased and retired 10.3 million shares of our common stock for $237.4 million in the nine months ended August 31, 2013. The shares were repurchased as part of our Board of Directors authorized return of capital to shareholders in the form of share repurchases through December 31, 2013 of $360.0 million. No shares were repurchased in the nine months ended August 31, 2012.

Note 10: Stock-Based Compensation

Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using either the current market price of the stock or the Black-Scholes option valuation model. The Black-Scholes option valuation model incorporates assumptions as to stock price volatility, the expected life of options, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense on a straight-line basis over the service period of the award, which is generally 4 or 5 years for options and 3 years for restricted stock units and restricted stock awards.

The following table provides the classification of stock-based compensation as reflected in our condensed consolidated statements of income (in thousands):

	Three Months Ended				Nine Months Ended
	August 31, 2013		August 31, 2012		August 31, 2013		August 31, 2012
Cost of software licenses	$	—	$	4	$	—	$	7
Cost of maintenance and services	133		153		500		582
Sales and marketing	748		701		2,668		2,848
Product development	999		861		3,687		2,375
General and administrative	2,720		3,040		7,215		8,246
Stock-based compensation from continuing operations	4,600		4,759		14,070		14,058
Income (loss) from discontinued operations	973		2,985		2,290		7,446
Total stock-based compensation	$	5,573	$	7,744	$	16,360	$	21,504

During the second quarter of fiscal year 2013, in connection with the divestiture of the Apama product line, we entered into transition agreements with five executives. As part of the agreements, the executives were entitled to accelerated vesting of certain stock-based awards upon the completion of the divestiture. All employees associated with the Apama product line were also entitled to accelerated vesting of certain stock-based awards upon the completion of the divestiture. Due to the accelerated vesting, we recognized additional stock-based compensation of $0.8 million and $1.4 million in the three and nine months ended August 31, 2013, respectively, in discontinued operations.

During the nine months ended August 31, 2012, the employment of three of our executives terminated. As part of the separation agreements, the executives were entitled to accelerated vesting of certain stock-based awards. Due to the separation and accelerated vesting, we recognized additional stock-based compensation of $1.8 million in the nine months ended August 31, 2012.

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Note 11: Accumulated Other Comprehensive Loss

The following table summarizes the changes in accumulated balances of other comprehensive loss during the nine months ended August 31, 2013 (in thousands):

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on investments			Accumulated Other Comprehensive Loss
Balance, December 1, 2012	$	(8,183	)	$	(2,581	)	$	(10,764	)
Other comprehensive income (loss) before reclassifications, net of tax	(4,010		)	98			(3,912		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—
Balance, August 31, 2013	$	(12,193	)	$	(2,483	)	$	(14,676	)

The tax effect on accumulated unrealized losses on investments was $1.4 million and $1.5 million as of August 31, 2013 and November 30, 2012, respectively.

Note 12: Restructuring Charges

2013 Restructuring

During the third quarter of fiscal year 2013, our management approved, committed to and initiated plans to restructure and improve efficiencies in our operations as a result of the sale of the Apama product line and the divestitures completed during the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013. We reduced our global workforce primarily within the administrative and sales organizations. This workforce reduction was conducted across all geographies and also resulted in the closing of certain facilities.

Restructuring expenses primarily relate to employee costs, including severance, health benefits, outplacement services and transition divestiture arrangements, but excluding stock-based compensation. Facilities costs include fees to terminate lease agreements and costs for unused space, net of sublease assumptions. Other costs include costs to terminate automobile leases of employees included in the workforce reduction, asset impairment charges for assets no longer deployed as part of cost reduction strategies, costs for unused software licenses as part of the workforce reduction and other costs directly associated with the restructuring actions taken.

As part of the 2013 restructuring, for the three and nine months ended August 31, 2013, we incurred expenses totaling $6.1 million, of which $0.4 million represents excess facilities and other costs and $5.7 million represents employee severance and related benefits. The expenses are recorded as restructuring expenses in the condensed consolidated statements of income, with the exception of $0.4 million included in income (loss) from discontinued operations for the three and nine months ended August 31, 2013. We expect to incur additional costs with respect to the 2013 restructuring through the remainder of fiscal year 2013. The total cost of the 2013 restructuring is expected to be approximately $1.3 million for excess facilities and other costs and approximately $6.5 million for employee severance and related benefits. The estimated costs not yet recorded in the condensed consolidated statement of income relate to excess facilities costs, net of sublease assumptions, and employee severance-related costs.

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A summary of activity for the 2013 restructuring action is as follows (in thousands):

	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	—		$	—		$	—
Costs incurred	388			5,716			6,104
Cash disbursements	(20		)	(1,020		)	(1,040		)
Asset impairment	—			—			—
Translation adjustments and other	—			14			14
Balance, August 31, 2013	$	368		$	4,710		$	5,078

Cash disbursements for expenses incurred to date under the 2013 restructuring are expected to be made through the first quarter of fiscal year 2014. The restructuring reserve of $5.1 million is included in other accrued liabilities on the condensed consolidated balance sheet at August 31, 2013.

2012 Restructuring

In the second quarter of fiscal year 2012, our management approved, committed to and initiated certain operational restructuring initiatives to reduce annual costs, including the simplification of our organizational structure and the consolidation of facilities. In addition, as part of the Plan, we have divested the product lines not considered core to our business. Our restructuring actions include both our cost reduction efforts and qualifying costs associated with our divestitures.

As part of the 2012 restructuring, for the nine months ended August 31, 2013, we incurred expenses totaling $4.0 million, of which $1.2 million represents excess facilities and other costs and $2.8 million represents employee severance and related benefits. The expenses are recorded as restructuring expenses in the condensed consolidated statements of income, with the exception of $0.6 million included in income (loss) from discontinued operations for the nine months ended August 31, 2013. Cumulative expenses of the 2012 restructuring through the first nine months of fiscal year 2013 are $23.1 million, of which $3.9 million represents excess facilities and other costs and $19.2 million represents employee severance and related benefits. We do not expect to incur additional material costs with respect to the 2012 restructuring.

A summary of activity for the 2012 restructuring action during the nine months ended August 31, 2013, is as follows (in thousands):

	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	603		$	6,429		$	7,032
Costs incurred	1,213			2,844			4,057
Cash disbursements	(668		)	(8,544		)	(9,212		)
Asset impairment	(111		)	—			(111		)
Translation adjustments and other	(5		)	27			22
Balance, August 31, 2013	$	1,032		$	756		$	1,788

Cash disbursements under the 2012 restructuring are expected to be made through fiscal year 2016. The short-term portion of the restructuring reserve of $1.6 million is included in other accrued liabilities and the long-term portion of $0.2 million is included in other noncurrent liabilities on the condensed consolidated balance sheet at August 31, 2013.

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Note 13: Income Taxes

Our income tax provision for the third quarter of fiscal year 2013 and 2012 reflects our estimates of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events which are recorded in the period they occur. The estimates are reevaluated each quarter based on our estimated tax expense for the full fiscal year.

The research and development credit was retroactively reinstated in January 2013. As a result, in the first quarter of fiscal year 2013 we recorded a tax benefit of $0.4 million related to qualifying research and development activities for the period from January 2012 to November 2012.

The Internal Revenue Service finalized its examination of our U.S. Federal income tax returns for fiscal years 2009 and 2010 during the second quarter of fiscal year 2013. In the first quarter of fiscal year 2013, we had effectively settled certain unrecognized tax benefits which had been reserved in previous periods, reducing our unrecognized tax benefits liability by $1.2 million.

Our Federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2011, and we are no longer subject to audit for those periods. State taxing authorities are currently examining our income tax returns for years through fiscal year 2010. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2005, and we are no longer subject to audit for those periods.

Tax authorities for certain non-U.S. jurisdictions are also examining returns affecting unrecognized tax benefits, none of which are material to our condensed consolidated balance sheets, cash flows or statements of income. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2007.

Note 14: Earnings Per Share

We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units and deferred stock units, using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share from continuing operations on an interim basis (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	August 31, 2013		August 31, 2012		August 31, 2013		August 31, 2012
Income from continuing operations	$	7,204	$	7,744	$	25,159	$	32,460
Weighted average shares outstanding	53,532		63,469		55,451		62,888
Dilutive impact from common stock equivalents	857		636		841		907
Diluted weighted average shares outstanding	54,389		64,105		56,292		63,795
Basic earnings per share from continuing operations	$	0.13	$	0.12	$	0.45	$	0.52
Diluted earnings per share from continuing operations	$	0.13	$	0.12	$	0.45	$	0.51

We excluded stock awards representing approximately 455,000 shares, 875,000 shares, 3,098,000 shares and 1,386,000 shares of common stock from the calculation of diluted earnings per share in the three and nine months ended August 31, 2013 and 2012, respectively, because these awards were anti-dilutive.

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

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 contains certain safe harbor provisions regarding forward-looking statements. This Form 10-Q, and other information provided by us or statements made by our directors, officers or employees from time to time, may contain “forward-looking” statements and information, which involve risks and uncertainties. Actual future results may differ materially. Statements indicating that we “expect,” “estimate,” “believe,” “are planning” or “plan to” are forward-looking, as are other statements concerning future financial results, product offerings or other events that have not yet occurred. There are various factors that could cause actual results or events to differ materially from those anticipated by the forward-looking statements, including but not limited to the following: the receipt and shipment of new orders; the timely release and market acceptance of new products and/or enhancements to our existing products; the growth rates of certain market segments; the positioning of our products in those market segments; the customer demand and acceptance of any new product initiative; variations in the demand for professional services and technical support; pricing pressures and the competitive environment in the software industry; the continued uncertainty in the U.S. and international economies, which could result in fewer sales of our products and may otherwise harm our business; business and consumer use of the Internet; our ability to complete and integrate acquisitions; our ability to realize the expected benefits and anticipated synergies from acquired businesses; our ability to penetrate international markets and manage our international operations; our ability to execute on the strategic and operational initiatives we are currently undertaking, including any resulting disruption to our business, employees, customers and the manner in which we finance our operations; our ability to absorb allocated costs, primarily general and administrative, into our operations subsequent to the divestitures occurring; and those factors discussed in Part II, Item 1A (Risk Factors) in this Quarterly Report on Form 10-Q, and in Part I, Item 1A (Risk Factors) in our Annual Report on Form 10-K for the fiscal year ended November 30, 2012. Although we have sought to identify the most significant risks to our business, we cannot predict whether, or to what extent, any of such risks may be realized. We also cannot assure you that we have identified all possible issues which we might face. We undertake no obligation to update any forward-looking statements that we make.

Use of Constant Currency

Revenue from our international operations has historically represented more than half of our total revenue. As a result, our revenue results have been impacted, and we expect will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, if the local currencies of our foreign subsidiaries weaken, our consolidated results stated in U.S. dollars are negatively impacted.

As exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of revenue growth rates on a constant currency basis enhances the understanding of our revenue results and evaluation of our performance in comparison to prior periods. The constant currency information presented is calculated by translating current period results using prior period weighted average foreign currency exchange rates. These results should be considered in addition to, not as a substitute for, results reported in accordance with accounting principles generally accepted in the United States of America (GAAP).

Revised Prior Period Amounts

Our financial results for prior periods have been revised, in accordance with GAAP, to reflect certain changes to the business. Prior period amounts have been revised for the impact of discontinued operations due to the sales of our product lines not considered core to our business and the Apama product line. Refer to Note 6 of Item 1 of this Quarterly Report on Form 10-Q for an additional description of this item.

Overview

We are a global software company that simplifies and enables the development, deployment and management of business applications on-premise or on any Cloud, on any platform and on any device with minimal IT complexity and low total cost of ownership. In April 2012, we announced a new strategic plan (the "Plan") in which we stated our intention to become a leading provider of anext-generation, context-aware application development and deployment platform in the Cloud for the Application Platform- as-a-Service (aPaas) market. We stated that we would accomplish this objective by investing in our OpenEdge, DataDirect and Decision Analytics product lines and integrating them into a single, cohesive offering.

The Plan is being executed in two phases. In the first phase, we invested in our OpenEdge and DataDirect product lines to make them more Cloud-ready. We also divested ten product lines which we did not consider core to our business: Actional,

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Artix, DataXtend, FuseSource, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic. In the second half of fiscal year 2012, we also executed on cost reductions as part of the Plan, including the reduction of 11% of our workforce.

Our financial results for fiscal year 2012 were adversely impacted by factors related to the planning, announcement and execution of the first phase of the Plan, which also included the undertaking of large restructuring efforts and the marketing for divestiture and actual sale of the ten non-core product lines. These factors contributed to a very uncertain environment for our company, partners, customers and employees. In particular, during the second and third quarters of fiscal year 2012, customer purchasing decisions were delayed, which caused deal slippage at a greater rate than usual. This was caused both by uncertainty surrounding the Plan and generally deteriorating macroeconomic conditions, primarily in Europe.

In fiscal year 2012 and the first quarter of fiscal year 2013, we entered into definitive purchase and sale agreements to divest the product lines which we did not consider core to our business. All divestitures were completed by the end of the first quarter of fiscal year 2013. The aggregate purchase price was approximately $130.0 million. As a result of the divestitures of all the product lines not considered core to our business, we ceased reporting the results of those operations as a separate reportable segment. Beginning in fiscal year 2013, we now operate as one reportable segment.

In June 2013, we entered into a definitive purchase and sale agreement to divest our Apama product line to Software AG. The target market, deployment and sales model for the Apama product line differed significantly from those of our aPaas strategy and the divestiture allowed us to focus entirely on providing leading cloud and mobile application development technologies through a single cohesive platform. The sale closed in July 2013 for a purchase price of $44.3 million. Our operating performance was adversely impacted by temporarily higher expense levels and restructuring costs as we transitioned away from the product lines we divested.

In the second phase of the Plan, we have begun to unify the product capabilities of our core product lines, which will refine and enhance our next generation, feature-rich application development and deployment solution targeting the new market category of aPaaS. To that end, during the first nine months of fiscal year 2013, we added new functionalities to our existing products in furtherance of the Plan. We also completed the acquisition of Rollbase, Inc., a provider of Application Platform-as-a-Service (aPaas) technology that allows the rapid design, development and deployment of on-demand business applications. Lastly, in July 2013, we announced the release of Progress Pacific, an easy-to-use platform for building and managing "connected apps" on any cloud, mobile or social platform, combining Rollbase with our existing Open Edge, DataDirect and Corticon products in a single platform.

As a result of the enhancements to our existing products and renewed focus on our core products, we have experienced improved financial performance during the first nine months of fiscal year 2013. However, we are still in the early stages of our transition to becoming a leading vendor in the cloud-based aPaas market. As a result, we anticipate continued reinvestment in our products will be necessary and sustainable increases in revenue may not be foreseeable in the near term. Overall, our investments to improve our product lines require time to impact performance. Until these investments are realized, our operating margins will be adversely impacted.

In addition, our new business focus and new strategy has required us to restructure our organization and the way we go to market, how we implement product roadmaps and how we operate and report our financial results, all of which caused additional disruption and could cause additional disruption in the future as we implement our new go to market plans. Our cloud strategy will require continued investment in product development and cloud operations as well as a change in the way we price and deliver our products. Over time, we may experience some shift from perpetual license sales and distribution of our software if our customers desire the right to access certain of our software in a hosted environment or use downloaded software for a specified subscription period.

Our Board of Directors also authorized us to repurchase $360.0 million of our common stock through December 2013. In October 2012, under the authorization, we announced the adoption of a 10b5-1 plan to repurchase up to $250.0 million of our common stock through June 30, 2013, or earlier. We completed the 10b5-1 plan in May 2013, having repurchased 11.7 million shares of our common stock for $250.0 million.

In June 2013, we announced the adoption of a Rule 10b5-1 share repurchase plan for the purpose of repurchasing up to $100.0 million of our common stock as part of our previously announced repurchase authorization. The plan will be active from July 1, 2013 until December 31, 2013 or, if earlier, upon the repurchase of $100.0 million of our common stock under the plan. Through August 31, 2013, we have repurchased 2.7 million shares for $67.9 million under this plan. As of October 2, 2013, we have repurchased 3.4 million shares of our common stock for $84.7 million under the 10b5-1 plan.

We derive a significant portion of our revenue from international operations, which are primarily conducted in foreign

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currencies. As a result, changes in the value of these foreign currencies relative to the U.S. dollar have significantly impacted our results of operations and may impact our future results of operations.

We believe that existing cash balances, together with funds generated from operations and amounts available under our revolving credit line will be sufficient to finance our operations and meet our foreseeable cash requirements, including our plans to repurchase shares of our common stock, through at least the next twelve months.

Results of Operations

The following table sets forth certain income and expense items as a percentage of total revenue, and the percentage change in dollar amounts of such items compared with the corresponding period in the previous fiscal year:

	Percentage of Total Revenue								Percentage Change
	Three Months Ended				Nine Months Ended				Three Months Ended		Nine Months Ended
	August 31, 2013		August 31, 2012		August 31, 2013		August 31, 2012
Revenue:
Software licenses	33	%	30	%	35	%	32	%	13	%	17	%
Maintenance and services	67		70		65		68		—		—
Total revenue	100		100		100		100		4		5
Costs of revenue:
Cost of software licenses	2		2		2		2		15		22
Cost of maintenance and services	8		11		9		10		(20	)	(4	)
Amortization of acquired intangibles	1		—		—		—		281		55
Total costs of revenue	11		13		11		12		(10	)	1
Gross profit	89		87		89		88		6		6
Operating expenses:
Sales and marketing	32		34		33		29		(2	)	18
Product development	19		17		18		14		16		29
General and administrative	18		19		17		21		(5	)	(11	)
Amortization of acquired intangibles	—		—		—		—		2		(12	)
Restructuring expenses	7		2		4		3		283		48
Acquisition-related expenses	1		—		1		—		100		937
Total operating expenses	77		72		73		67		11		14
Income from operations	12		15		16		21		(14	)	(19	)
Other (expense) income	—		—		—		—		(50	)	(176	)
Income from continuing operations before income taxes	12		15		16		21		(16	)	(22	)
Provision for income taxes	3		5		6		8		(32	)	(20	)
Income from continuing operations	9		10		10		13		(7	)	(22	)
Income (loss) from discontinued operations, net	23		(3	)	14		(9	)	1,025		265
Net income	32	%	7	%	24	%	4	%	326	%	424	%

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Revenue

	Three Months Ended				Percentage Change
(In thousands)	August 31, 2013		August 31, 2012		As Reported		Constant Currency
Revenue	$	77,578	$	74,371	4	%	4	%

	Nine Months Ended				Percentage Change
(In thousands)	August 31, 2013		August 31, 2012		As Reported		Constant Currency
Revenue	$	243,016	$	230,970	5	%	6	%

Total revenue increased$3.2 million, or 4% on an actual and constant currency basis, in the third quarter of fiscal year 2013 as compared to the same quarter last year and increased$12.0 million, or 6% on a constant currency basis and 5% using actual exchange rates, in the first nine months of fiscal year 2013 as compared to the same period in the prior year. The increase was primarily a result of an increase in license revenue as further described below.

Changes in prices from fiscal year 2012 to 2013 did not have a significant impact on our revenue. Changes in foreign currency exchange rates did not significantly impact our reported revenues on a consolidated basis.

License Revenue

	Three Months Ended						Percentage Change
(In thousands)	August 31, 2013			August 31, 2012			As Reported		Constant Currency
License	$	25,666		$	22,637		13	%	13	%
As a percentage of total revenue	33		%	30		%

	Nine Months Ended						Percentage Change
(In thousands)	August 31, 2013			August 31, 2012			As Reported		Constant Currency
License	$	84,920		$	72,816		17	%	17	%
As a percentage of total revenue	35		%	32		%

License revenue increased$3.0 million, or 13%, in the third quarter of fiscal year 2013 as compared to the same quarter last year, and increased$12.1 million, or 17%, in the first nine months of fiscal year 2013 as compared to the same period last year. The increase in license revenue for the third quarter of fiscal year 2013 was primarily driven by higher revenue for our OpenEdge and Corticon products in the EMEA and Asia Pacific regions, offset by lower revenue for DataDirect products due to timing of deal closures and revenue recognition on multi-year OEM agreements. The increase in license revenue for the first nine months of fiscal year 2013 was primarily driven by higher revenue for our OpenEdge and Corticon products in the North America, EMEA and Asia Pacific regions, offset by lower revenue for DataDirect products due to timing of deal closures and revenue recognition on multi-year OEM agreements.

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Maintenance and Services Revenue

	Three Months Ended						Percentage Change
(In thousands)	August 31, 2013			August 31, 2012			As Reported		Constant Currency
Maintenance	$	49,752		$	50,285		(1	)%	(1	)%
As a percentage of total revenue	64		%	68		%
Professional services	2,160			1,449			49	%	47	%
As a percentage of total revenue	3		%	2		%
Total maintenance and services revenue	$	51,912		$	51,734		—	%	—	%
As a percentage of total revenue	67		%	70		%

	Nine Months Ended						Percentage Change
(In thousands)	August 31, 2013			August 31, 2012			As Reported		Constant Currency
Maintenance	$	151,627		$	151,800		—	%	—	%
As a percentage of total revenue	62		%	66		%
Professional services	6,469			6,354			2	%	2	%
As a percentage of total revenue	3		%	2		%
Total maintenance and services revenue	$	158,096		$	158,154		—	%	—	%
As a percentage of total revenue	65		%	68		%

Maintenance and services revenue increased$0.2 million in the third quarter of fiscal year 2013 as compared to the same quarter last year. Maintenance revenue decreased1% and professional services revenue increased49% in the third quarter of fiscal year 2013 as compared to the third quarter of fiscal year 2012.

Maintenance and services revenue was flat in the first nine months of fiscal year 2013 as compared to the same period last year. Professional services revenue increased2% in the first nine months of fiscal year 2013 as compared to the first nine months of fiscal year 2012.

Maintenance revenue remained flat in the third quarter of fiscal year 2013 and the first nine months of fiscal year 2013 compared to the same time periods of the previous year as the loss of revenue from non-renewing customers offset the growth in maintenance revenue associated with new license sales. Professional services revenue increased in the third quarter of fiscal year 2013 compared to the same time period of the previous year due to the timing of professional services engagements.

Revenue by Region

	Three Months Ended						Percentage Change
(In thousands)	August 31, 2013			August 31, 2012			As Reported		Constant Currency
North America	$	34,596		$	34,548		—	%	—	%
As a percentage of total revenue	45		%	47		%
EMEA	$	32,315		$	28,155		15	%	10	%
As a percentage of total revenue	42		%	38		%
Latin America	$	5,496		$	6,905		(20	)%	(13	)%
As a percentage of total revenue	7		%	9		%
Asia Pacific	$	5,171		$	4,763		9	%	18	%
As a percentage of total revenue	6		%	6		%

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	Nine Months Ended						Percentage Change
(In thousands)	August 31, 2013			August 31, 2012			As Reported		Constant Currency
North America	$	111,446		$	103,480		8	%	8	%
As a percentage of total revenue	46		%	45		%
EMEA	$	98,344		$	92,352		6	%	5	%
As a percentage of total revenue	40		%	40		%
Latin America	$	18,844		$	20,951		(10	)%	(2	)%
As a percentage of total revenue	8		%	9		%
Asia Pacific	$	14,382		$	14,187		1	%	6	%
As a percentage of total revenue	6		%	6		%

Total revenue generated in North America was flat compared to the same quarter last year, and represented 45% and 47% of total revenue in the third quarter of fiscal years 2013 and 2012, respectively. Total revenue generated in markets outside North America increased$3.2 million, or 7% on a constant currency basis and 8% using actual exchange rates, in the third quarter of fiscal year 2013 as compared to the same quarter last year, and represented 55% and 53% of total revenue in the third quarter of fiscal year 2013 and 2012, respectively. If exchange rates had remained constant in the third quarter of fiscal year 2013 as compared to the exchange rates in effect in the third quarter of fiscal year 2012, total revenue generated in markets outside North America would have represented 55% of total revenue.

Total revenue generated in North America increased$8.0 million, or 8%, as compared to the same period last year, and represented 46% and 45% of total revenue in the first nine months of fiscal year 2013 and 2012, respectively. Total revenue generated in markets outside North America increased$4.1 million, or 4% on a constant currency basis and 3% using actual exchange rates, in the first nine months of fiscal year 2013 as compared to the same period last year, and represented 54% and 55% of total revenue in the first nine months of fiscal 2013 and 2012, respectively. If exchange rates had remained constant in the first nine months of fiscal year 2013 as compared to the exchange rates in effect in the first nine months of fiscal year 2012, total revenue generated in markets outside North America would have represented 54% of total revenue.

In the third quarter of fiscal year 2013, EMEA was helped by stronger local currencies. In the third quarter and first nine months of fiscal year 2013, Latin America and Asia Pacific were hurt by weaker local currencies.

Cost of Software Licenses

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Cost of software licenses	$	1,587		$	1,375		15	%	$	5,033		$	4,117		22	%
As a percentage of software license revenue	6		%	6		%			6		%	6		%
As a percentage of total revenue	2		%	2		%			2		%	2		%

Cost of software licenses consists primarily of costs of royalties, electronic software distribution, duplication and packaging. Cost of software licenses increased $0.2 million, or 15%, in the third quarter of fiscal year 2013 as compared to the same quarter last year, and remained consistent as a percentage of software license revenue at 6%. Cost of software licenses increased$0.9 million, or 22%, in the first nine months of fiscal year 2013 as compared to the same period last year, and remained consistent as a percentage of software license revenue at 6%. The increase in the third quarter and first nine months of fiscal year 2013 was primarily due to higher royalty expense for products and technologies licensed or resold from third parties. Cost of software licenses as a percentage of software license revenue varies from period to period depending upon the relative product mix.

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Cost of Maintenance and Services

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Cost of maintenance and services	$	6,403		$	7,974		(20	)%	$	21,043		$	22,013		(4	)%
As a percentage of maintenance and services revenue	12		%	15		%			13		%	14		%
As a percentage of total revenue	8		%	11		%			9		%	10		%

Cost of maintenance and services consists primarily of costs of providing customer support, consulting and education. Cost of maintenance and services decreased$1.6 million, or 20%, in the third quarter of fiscal year 2013 as compared to the same quarter last year, and decreased as a percentage of maintenance and services revenue from 15% to 12%. Cost of maintenance and services decreased$1.0 million, or 4%, in the first nine months of fiscal year 2013 as compared to the same period last year, and decreased as a percentage of maintenance and services revenue from 14% to 13%. The decrease in cost of maintenance and services in the third quarter and first nine months of fiscal year 2013 as compared to the same periods last year is the result of cost savings due to our restructuring actions which were initiated in the second half of fiscal year 2012.

Amortization of Acquired Intangibles

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Amortization of acquired intangibles	$	529		$	139		281	%	$	811		$	522		55	%
As a percentage of total revenue	1		%	—		%			—		%	—		%

Amortization of acquired intangibles included in costs of revenue primarily represents the amortization of the value assigned to technology-related intangible assets obtained in business combinations. Amortization of acquired intangibles increased $0.4 million, or 281%, in the third quarter of fiscal year 2013 as compared to the same quarter last year, and increased$0.3 million, or 55%, in the first nine months of fiscal year 2013 as compared to the same period last year. The increase in the third quarter and first nine months of fiscal year 2013 was due to amortization of intangible assets associated with the Rollbase acquisition completed during the second quarter of fiscal year 2013.

Gross Profit

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Gross profit	$	69,059		$	64,883		6	%	$	216,129		$	204,318		6	%
As a percentage of total revenue	89		%	87		%			89		%	88		%

Our gross profit increased$4.2 million, or 6%, in the third quarter of fiscal year 2013 as compared to the same quarter last year, and increased$11.8 million, or 6%, in the first nine months of fiscal year 2013 as compared to the same period last year. Our gross profit as a percentage of total revenue increased from 87% in the third quarter of fiscal year 2012 to 89% in the third quarter of fiscal year 2013 and increased from 88% in the first nine months of 2012 to 89% in the first nine months of fiscal year 2013, respectively. The increase in our gross profit was primarily due to higher license revenue and lower cost of maintenance and services.

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Sales and Marketing

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Sales and marketing	$	24,554		$	24,970		(2	)%	$	79,086		$	67,085		18	%
As a percentage of total revenue	32		%	34		%			33		%	29		%

Sales and marketing expenses decreased$0.4 million, or 2%, in the third quarter of fiscal year 2013 as compared to the same quarter last year, and decreased as a percentage of total revenue from 34% to 32%. Sales and marketing expenses increased$12.0 million, or 18%, in the first nine months of fiscal year 2013 as compared to the same period last year, and increased as a percentage of total revenue from 29% to 33%. The decrease in sales and marketing expenses in the third quarter of fiscal year 2013 is primarily due to lower spending on marketing programs and cost savings due to our restructuring actions which were initiated in the second half of fiscal year 2012. The increase in sales and marketing expenses in the first nine months of fiscal year 2013 was primarily due to the absorption into our continuing operations of costs previously required to support our divested product lines. The increase was offset by lower compensation-related costs in the first nine months of fiscal year 2013 as a result of the headcount reduction actions, which occurred in the second half of fiscal year 2012. The increase was also offset by incremental compensation-related expenses of $1.4 million recognized in the first nine months of fiscal year 2012 due to the separation of one of our sales and marketing executives.

Product Development

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Product development	$	14,615		$	12,631		16	%	$	42,908		$	33,330		29	%
As a percentage of total revenue	19		%	17		%			18		%	14		%

Product development expenses increased$2.0 million, or 16%, in the third quarter of fiscal year 2013 as compared to the same quarter last year, and increased as a percentage of revenue from 17% to 19%. Product development expenses increased$9.6 million, or 29%, in the first nine months of fiscal year 2013 as compared to the same period last year, and increased as a percentage of revenue from 14% to 18%. The increase was primarily due to the absorption into our continuing operations of costs previously required to support our divested product lines. The increase is also attributed to higher costs related to our new product development strategy, including higher expenses related to building our Progress Pacific platform. The increase was offset by lower compensation-related costs in the first nine months of fiscal year 2013 as a result of the headcount reduction actions, which occurred in the second half of fiscal year 2012.

General and Administrative

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
General and administrative	$	13,660		$	14,375		(5	)%	$	42,390		$	47,789		(11	)%
As a percentage of total revenue	18		%	19		%			17		%	21		%

General and administrative expenses include the costs of our finance, human resources, legal, information systems and administrative departments. General and administrative expenses decreased$0.7 million, or 5%, in the third quarter of fiscal year 2013 as compared to the same quarter in the prior year, and decreased as a percentage of revenue from 19% to 18%. General and administrative expenses decreased$5.4 million, or 11%, in the first nine months of fiscal year 2013 as compared to the same period in the prior year, and decreased as a percentage of revenue from 21% to 17%. The decrease in the third quarter of fiscal year 2013 is the result of cost savings due to our restructuring actions which were initiated in the second half of fiscal year 2012. The decrease in the first nine months of fiscal year 2013 was primarily due to incremental costs incurred in the first nine months of fiscal year 2012 for stock-based compensation associated with the hiring of a new Chief Executive Officer in December 2011, $0.9 million for a litigation settlement, and $3.2 million of proxy contest-related costs. The decrease is also

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the result of costs savings in fiscal year 2013 from our restructuring actions and other cost control measures, which were initiated in the second half of fiscal year 2012.

Amortization of Acquired Intangibles

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Amortization of acquired intangibles	$	211		$	207		2	%	$	549		$	622		(12	)%
As a percentage of total revenue	—		%	—		%			—		%	—		%

Amortization of acquired intangibles included in operating expenses primarily represents the amortization of value assigned to intangible assets obtained in business combinations other than assets identified as purchased technology. Amortization of acquired intangibles increased2% in the third quarter of fiscal year 2013 as compared to the same quarter last year, and decreased12% in the first first nine months of fiscal year 2013 as compared to the same period last year. The increase in the third quarter of fiscal year 2013 is due to the amortization of intangible assets associated with the Rollbase acquisition completed during the second quarter of fiscal year 2013. The decrease in the first nine months of fiscal year 2013 is due to the completion of amortization of certain intangible assets acquired in prior years.

Restructuring Expenses

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Restructuring expenses	$	5,401		$	1,411		283	%	$	9,127		$	6,147		48	%
As a percentage of total revenue	7		%	2		%			4		%	3		%

Restructuring expenses recorded in the third quarter and first nine months of fiscal year 2013 relate to the restructuring activities occurring in fiscal year 2013 and 2012. See Note 12 to the condensed consolidated financial statements for additional details, including types of expenses incurred and the timing of future expenses and cash payments. See also the Liquidity and Capital Resources section of this Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Acquisition-Related Expenses

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Acquisition-related expenses	$	957		$	—		100	%	$	2,229		$	215		937	%
As a percentage of total revenue	1		%	—		%			1		%	—		%

Acquisition-related expenses increased $1.0 million in the third quarter of fiscal year 2013 compared to the same quarter last year due to expenses related to earn-out provisions which were part of the Rollbase acquisition (see Note 7) completed in the second quarter of fiscal year 2013. Acquisition-related expenses increased $2.0 million for the first nine months of fiscal year 2013 as compared to the first nine months of fiscal year 2012 due to the aforementioned Rollbase earn-out provisions, plus a $1.0 million termination fee for a pre-existing license arrangement between Rollbase and another third-party.

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Income From Operations

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Income from operations	$	9,661		$	11,289		(14	)%	$	39,840		$	49,130		(19	)%
As a percentage of total revenue	12		%	15		%			16		%	21		%

Income from operations decreased$1.6 million, or 14%, in the third quarter of fiscal year 2013 as compared to the same quarter last year, and decreased$9.3 million, or 19%, in the first nine months of fiscal year 2013 as compared to the first nine months of fiscal year 2012. The decrease in the third quarter of fiscal year 2013 was primarily the result of higher operating expenses, most notably product development, restructuring and acquisition-related expenses. The decrease in the first nine months of fiscal year 2013 was primarily the result of the absorption into our continuing operations of costs previously required to support our divested product lines, as previously discussed.

Other (Expense) Income

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Interest income and other	$	371		$	1,017		(64	)%	$	1,146		$	2,352		(51	)%
Foreign currency loss, net	(194		)	(660		)	71	%	(1,809		)	(1,476		)	(23	)%
Total other (expense) income, net	$	177		$	357		(50	)%	$	(663	)	$	876		(176	)%
As a percentage of total revenue	—		%	—		%			—		%	—		%

Other income decreased$0.2 million in the third quarter of fiscal year 2013 as compared to the same quarter last year, and decreased$1.5 million in the first nine months of fiscal year 2013 as compared to the first nine months of fiscal year 2012. The decrease in interest income is due to lower cash balances and lower interest rates in certain countries during fiscal year 2013 and additional interest income on tax credits during fiscal year 2012. The change in foreign currency losses is a result of movements in exchange rates and the impact on our intercompany receivables and payables denominated in currencies other than local currencies.

Provision for Income Taxes

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Provision for income taxes	$	2,634		$	3,902		(32	)%	$	14,018		$	17,546		(20	)%
As a percentage of total revenue	3		%	5		%			6		%	8		%

Our effective tax rate was 27% in the third quarter of fiscal year 2013 compared to 34% in the third quarter of fiscal year 2012. The decrease was primarily due to an increase in favorable discrete tax items in the third quarter of fiscal year 2013.

Our effective tax rate was 36% in the first nine months of fiscal year 2013 compared to 35% in the first nine months of fiscal year 2012. The increase is primarily due to a change in the mix of income from various jurisdictions.

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Net Income

	Three Months Ended								Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012			Percentage Change		August 31, 2013			August 31, 2012			Percentage Change
Income from continuing operations	$	7,204		$	7,744		(7	)%	$	25,159		$	32,460		(22	)%
Income (loss) from discontinued operations	17,639			(1,906		)	1,025	%	34,712			(21,041		)	265	%
Net income	$	24,843		$	5,838		326	%	$	59,871		$	11,419		424	%
As a percentage of total revenue	32		%	7		%			24		%	4		%

Income (loss) from discontinued operations includes the revenues and direct expenses of the product lines we divested in fiscal year 2012 and the first quarter of fiscal year 2013 and the Apama product line, which was sold in July 2013. In the three and nine months ended August 31, 2013, the income from discontinued operations includes the pre-tax gain on the sale of the Apama product line of $35.9 million. For the nine months ended August 31, 2013, the income from discontinued operations also includes the pre-tax gains on the sales of our Actional, Artix, DataXtend, ObjectStore, Orbacus, Orbix, Savvion and Sonic product lines of $35.1 million. See Note 6 of Item 1 of this Quarterly Report for additional information related to our divested product lines.

Liquidity and Capital Resources

Cash, Cash Equivalents and Short-Term Investments

(In thousands)	August 31, 2013		November 30, 2012
Cash and cash equivalents	$	215,342	$	301,792
Short-term investments	26,640		53,425
Total cash, cash equivalents and short-term investments	$	241,982	$	355,217

The decrease in cash, cash equivalents and short-term investments of $113.2 million from the end of fiscal year 2012 was primarily due to repurchases of our common stock of $241.2 million, the payment, net of cash acquired, for the acquisition of Rollbase of $9.5 million and cash outflows from operations of $13.3 million. The decrease was partially offset by proceeds from the sales of our Actional, Artix, DataXtend, ObjectStore, Orbacus, Orbix, Savvion, Sonic and Apama product lines of $111.1 million and issuances of common stock upon exercise of stock options and employee stock purchases of $49.1 million. There are no restrictions on our ability to access our cash, cash equivalents and short-term investments.

As of August 31, 2013, $119.8 million of our cash, cash equivalents and short-term investments was held by our foreign subsidiaries.  A portion of this amount relates to the net undistributed earnings of our foreign subsidiaries which are considered to be permanently reinvested, and as such, they are not available to fund our domestic operations, though they do fund our international operations. If we were to repatriate the earnings, they would be subject to taxation in the U.S., but would be offset by foreign tax credits. We do not believe this has a material impact on our liquidity.

Share Repurchase Program

During the second quarter of fiscal year 2012, as part of the Plan, the Board of Directors authorized a $350.0 million return of capital to shareholders in the form of a share repurchase through fiscal year 2013. In October 2012, we announced the adoption of a 10b5-1 plan, under the Board of Directors previous authorization, to repurchase up to $250.0 million of our common stock through June 30, 2013, or earlier. We completed the plan in May 2013, having repurchased 11.7 million shares for $250.0 million.

In June 2013, we announced the adoption of a Rule 10b5-1 share repurchase plan for the purpose of repurchasing up to $100.0 million of our common stock as part of our previously announced repurchase authorization, which the Board of Directors increased by $10.0 million to $360.0 million. The plan will be active from July 1, 2013 until December 31, 2013 or, if earlier, upon the repurchase of $100.0 million of our common stock under the plan. Through August 31, 2013, we have repurchased 2.7 million shares for $67.9 million under this plan. As of October 2, 2013, we have repurchased 3.4 million shares of our common stock for $84.7 million under this 10b5-1 plan.

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Through August 31, 2013, we have repurchased a total of 14.8 million shares for $325.8 million under the $360.0 million authorization.

Divestiture of Product Lines

In fiscal year 2012 and the first quarter of fiscal year 2013, we entered into definitive purchase and sale agreements to divest the ten product lines which were not considered core to our business and all of the divestitures were completed by the end of the first quarter of fiscal year 2013. The aggregate purchase price was approximately $130.0 million. In June 2013, we entered into a definitive purchase and sale agreement to divest our Apama product line to Software AG. The sale closed in July 2013 for a purchase price of $44.3 million.

The cash flows of our continuing and discontinued operations have not been segregated in our statements of cash flows. The divestitures of these product lines will reduce our cash flows in future periods, including our operating cash flows, due to the loss of revenue offset by the elimination of direct expenses associated with the divested product lines and other cost savings actions.

Restructuring Activities

During the third quarter of fiscal year 2013, our management approved, committed to and initiated plans to restructure and improve efficiencies in our operations as a result of the sale of the Apama product line and the divestitures completed during the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013. We reduced our global workforce primarily within the administrative and sales organizations. This workforce reduction was conducted across all geographies and also resulted in the closing of certain facilities.

The total costs of the restructuring primarily relate to employee costs, including severance, health benefits, outplacement services and transition divestiture incentives, but excluding stock-based compensation. Facilities costs include fees to terminate lease agreements and costs for unused space, net of sublease assumptions. Other costs include costs to terminate automobile leases of employees included in the workforce reduction, asset impairment charges for assets no longer deployed as part of cost reduction strategies, costs for unused software licenses as part of the workforce reduction and other costs directly associated with the restructuring actions taken.

As part of the 2013 restructuring, for the three and nine months ended August 31, 2013, we incurred expenses totaling $6.1 million, of which $0.4 million represents excess facilities and other costs and $5.7 million represents employee severance and related benefits. The expenses are recorded as restructuring expenses in the condensed consolidated statements of income, with the exception of $0.4 million included in income (loss) from discontinued operations for the three and nine months ended August 31, 2013. We expect to incur additional costs with respect to the 2013 restructuring through the remainder of fiscal year 2013, which we estimate to be $0.9 million for excess facilities and other costs and $0.8 million for employee severance and related benefits. The estimated costs not yet recorded in the condensed consolidated statement of income relate to excess facilities costs, net of sublease assumptions, and employee severance-related costs.

As of August 31, 2013, $5.1 million of the cumulative expenses recognized under the 2013 restructuring remains unpaid. The restructuring liability does not include the estimated $1.7 million of additional expenses we expect to incur through fiscal year 2013. We expect to pay the restructuring liability in the next twelve months, however, additional expenses expected to be incurred under the 2013 restructuring may continue through future fiscal years.

In the second quarter of fiscal year 2012, as part of the Plan, our management approved, committed to and initiated certain operational restructuring initiatives to reduce annual costs, including the simplification of our organizational structure and the consolidation of facilities.

As part of the 2012 restructuring, we incurred expenses in the first nine months of fiscal year 2013 totaling $4.0 million, of which $1.2 million represents excess facilities and other costs and $2.8 million represents employee severance and related benefits. We do not expect to incur additional material costs with respect to the 2012 restructuring.

As of August 31, 2013, $1.8 million of the cumulative expenses recognized under the 2012 restructuring remains unpaid. We expect to pay the majority of the restructuring liability in the next twelve months, however, excess facilities costs will continue through fiscal year 2016.

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Revolving Credit Facility

On August 15, 2011, we entered into a credit agreement (the "Credit Agreement") for an unsecured credit facility with J.P. Morgan and other lenders that matures on August 15, 2016, at which time all amounts outstanding must be repaid. The credit facility provides for a revolving line of credit in the amount of $150.0 million, with a sublimit for the issuance of standby letters of credit in a face amount up to $25.0 million and swing line loans up to $20.0 million. The credit facility also permits us to increase the revolving line of credit by up to an additional $75.0 million subject to receiving further commitments from lenders and certain other conditions. We intend to utilize the line of credit for general corporate purposes, including acquisitions, stock repurchases and working capital.

Revolving loans accrue interest at a per annum rate based on our choice of either (i) the LIBOR rate plus a margin ranging from 1.25% to 1.75% or (ii) the base rate plus a margin ranging from 0.25% to 0.75%, both depending on our consolidated leverage ratio. The base rate is defined as the highest of (i) the administrative agent’s prime rate (ii) the federal funds rate plus 1/2 of 1.00%, and (iii) the LIBOR rate for a one month interest period plus a margin equal to 1.00%. A quarterly commitment fee on the undrawn portion of the revolving credit facility is required, at a per annum rate ranging from 0.25% to 0.35%, depending on our consolidated leverage ratio. The loan origination fee and issuance costs incurred upon consummation of the Credit Agreement are being amortized through interest expense using the effective interest rate method, over the five-year term of the facility. Other customary fees and letter of credit fees may be charged and will be expensed as they are incurred.

Accrued interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of each interest rate period (or at each three month interval in the case of loans with interest periods greater than three months) with respect to LIBOR rate loans. We may prepay, terminate or reduce the loan commitments in whole or in part at any time, without premium or penalty, subject to certain conditions and reimbursement of certain costs in the case of LIBOR rate loans.

The Credit Agreement contains customary affirmative and negative covenants, including a requirement to maintain a balance of at least $100.0 million in cash and cash equivalents while repurchasing shares of our common stock or making other restricted equity-related payments (e.g. cash dividend distributions). We are also required to maintain compliance with a consolidated leverage ratio of no greater than 3.00 to 1.00 and a consolidated interest coverage ratio of at least 3.00 to 1.00. As of August 31, 2013, there were no amounts outstanding under the revolving line and $0.4 million of letters of credit outstanding. We are in compliance with our covenants by a significant margin.

Auction Rate Securities

In addition to the $242.0 million of cash, cash equivalents and short-term investments, we had investments with a fair value of $26.6 million related to auction rate securities (ARS). These ARS are floating rate securities with longer-term maturities that were marketed by financial institutions with auction reset dates at primarily 28 or 35 day intervals to provide short-term liquidity. The remaining contractual maturities of these securities range from 11 to 30 years. The underlying collateral of the ARS consist of municipal bonds, which are insured by monoline insurance companies, and student loans, which are supported by the federal government as part of the Federal Family Education Loan Program (FFELP) and by the monoline insurance companies.

Beginning in February 2008, auctions for these securities began to fail, and the interest rates for these ARS reset to the maximum rate per the applicable investment offering document. At August 31, 2013, our ARS investments totaled $30.7 million at par value. These ARS are classified as available-for-sale securities.

For each of our ARS classified as available-for-sale for which the issuer is not in default, we evaluated the risks related to the structure, collateral and liquidity of the investment, and forecasted the probability of issuer default, auction failure and a successful auction at par or a redemption at par for each future auction period. The weighted average cash flow for each period was then discounted back to present value for each security. One issuer of our ARS is currently in default, but the underlying bond insurer is making interest payments on the issuers' behalf. In this situation, we evaluated the credit strength of the insurer and used a market approach. Based on these methodologies, we determined that the fair value of our ARS investments is $26.6 million at August 31, 2013, and we have recorded a temporary impairment charge in accumulated other comprehensive loss of $4.1 million to reduce the value of our available-for-sale ARS investments.

We will not be able to access the funds associated with our ARS until future auctions for these ARS are successful, we sell the securities in a secondary market, or they are redeemed by the issuer. As such, these remaining investments currently lack short-term liquidity and are therefore classified as long-term investments on our condensed consolidated balance sheet at August 31, 2013.

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Based on our cash, cash equivalents and short-term investments balance of $242.0 million, expected operating cash flows and the availability of funds under our revolving credit facility, we do not anticipate the lack of liquidity associated with these ARS to adversely affect our ability to conduct business and believe we have the ability to hold the affected securities throughout the currently estimated recovery period. Therefore, the impairment of these securities is considered only temporary in nature. If the credit rating of either the security issuer or the third-party insurer underlying the investments deteriorates significantly, we may be required to adjust the carrying value of the ARS through an impairment charge.

Cash Flows from Operating Activities

	Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012
Net income	$	59,871		$	11,419
Non-cash reconciling items included in net income	(42,810		)	48,635
Changes in operating assets and liabilities	(30,340		)	15,660
Net cash flows (used in) from operating activities	$	(13,279	)	$	75,714

The decrease in cash generated from operations in the first nine months of fiscal year 2013 as compared to the first nine months of fiscal year 2012 was primarily due to $56.3 million in payments made for income taxes related to the divestitures of the product lines occurring in the fourth quarter of fiscal year 2012 and the first and third quarter of fiscal year 2013. Total net tax payments made in the first nine months of fiscal year 2013 were $66.6 million, compared to $13.9 million in the first nine months of fiscal year 2012. The decrease is also attributable to an increase in annual bonus payments made in the first quarter of fiscal year 2013 as compared to fiscal year 2012.

Our gross accounts receivable as of August 31, 2013decreased by $17.8 million from the end of fiscal year 2012. Days sales outstanding (DSO) in accounts receivable from continuing operations was 62 days, down from 70 days at the end of fiscal year 2012, which contributed to the decrease in gross accounts receivable from the end of fiscal year 2012. We target a DSO range of 60 to 80 days.

Cash Flows from Investing Activities

	Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012
Net investment activity	$	25,710		$	45,186
Purchases of property and equipment	(2,989		)	(6,606		)
Payments for acquisitions, net of cash acquired	(9,450		)	—
Proceeds from divestitures, net	111,120			—
Other investing activities	835			247
Net cash flows from investing activities	$	125,226		$	38,827

Net cash inflows and outflows of our net investment activity is primarily a result of the timing of our purchases and maturities of securities which are classified as cash equivalents or short-term securities. We purchased $3.0 million of property and equipment in the first nine months of fiscal year 2013 as compared to $6.6 million in the first nine months of fiscal year 2012. Spending slowed throughout fiscal year 2012 as we neared the implementation of the upgrades to our order management system in the first quarter of fiscal year 2013. Overall purchases consisted primarily of computer equipment and software and building and leasehold improvements.

In the second quarter of fiscal year 2013, we acquired 100% of the equity interests in Rollbase, a privately held software vendor for $9.9 million, which included $9.5 million in cash paid. In the first quarter of fiscal year 2013, we completed the divestitures of our Actional, Artix, DataXtend, ObjectStore, Orbacus, Orbix, Savvion and Sonic product lines, and received proceeds of $75.5 million, which were offset by direct transactions costs. During the third quarter of fiscal year 2013, we completed the divestiture of the Apama product line for a purchase price of $44.3 million, of which $4.5 million is held in escrow to secure indemnification claims, if any, for up to 18 months. The proceeds from the Apama divestiture were also offset by direct transaction costs.

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Cash Flows from Financing Activities

	Nine Months Ended
(In thousands)	August 31, 2013			August 31, 2012
Proceeds from stock-based compensation plans	$	49,109		$	24,284
Repurchases of common stock	(241,184		)	—
Other financing activities	(1,635		)	(1,700		)
Net cash flows (used in) from financing activities	$	(193,710	)	$	22,584

We received $49.1 million in the first nine months of fiscal year 2013 from the exercise of stock options and the issuance of shares under our employee stock purchase plan as compared to $24.3 million in the first nine months of fiscal year 2012. In the first nine months of fiscal year 2013, we repurchased $241.2 million of our common stock under our share repurchase plan.

Indemnification Obligations

We include standard intellectual property indemnification provisions in our licensing agreements in the ordinary course of business. Pursuant to our product license agreements, we will indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally business partners or customers, in connection with certain patent, copyright or other intellectual property infringement claims by third parties with respect to our products. Other agreements with our customers provide indemnification for claims relating to property damage or personal injury resulting from the performance of services by us or our subcontractors. Historically, our costs to defend lawsuits or settle claims relating to such indemnity agreements have been insignificant. Accordingly, the estimated fair value of these indemnification provisions is immaterial.

In addition, in connection with the divestitures of the product lines not considered core to our business, we have agreed to indemnify the buyers of those product lines with respect to breaches of representations and warranties contained in the definitive purchase and sale agreements we entered into with those buyers.  Our indemnification obligations under these agreements are typically limited in time, amount and scope.  Accordingly, the estimated fair value of these indemnification provisions is immaterial.

Liquidity Outlook

We believe that existing cash balances, together with funds generated from operations and amounts available under the Credit Agreement, will be sufficient to finance our operations and meet our foreseeable cash requirements through at least the next twelve months, and does not contemplate a need for any foreign repatriation of the earnings which we have deemed permanently reinvested. Our foreseeable cash needs include our planned capital expenditures and share repurchases, lease commitments, restructuring obligations and other long-term obligations.

Revenue Backlog

(In thousands)	August 31, 2013		August 31, 2012
Deferred revenue, primarily related to unexpired maintenance and support contracts (1)	$	97,578	$	140,356
Multi-year licensing arrangements (2)	13,713		20,919
Open software license orders received but not shipped (2)	—		—
Total revenue backlog	$	111,291	$	161,275

(1) Deferred revenue as of August 31, 2012 included the deferred revenue of the 10 product lines we sold in the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013, and the deferred revenue of the Apama product line, which we sold in the third quarter of fiscal year 2013. Since these product lines were divested prior to August 31, 2013, the deferred revenue balance as of August 31, 2013 is not comparable to the prior period presented.

(2) Our backlog of orders not included on the balance sheet is not subject to our normal accounting controls for information that is either reported in or derived from our basic financial statements.

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We typically fulfill most of our software license orders within 30 days of acceptance of a purchase order. Assuming all other revenue recognition criteria have been met, we recognize software license revenue upon shipment of the product, or if delivered electronically, when the customer has the right to access the software. Because there are many elements governing when revenue is recognized, including when orders are shipped, credit approval obtained, completion of internal control processes over revenue recognition and other factors, management has some control in determining the period in which certain revenue is recognized. We had in the past and may have in the future open software license orders which have not shipped or have otherwise not met all the required criteria for revenue recognition. Although the amount of open software license orders may vary at any time, we generally do not believe that the amount, if any, of such software license orders at the end of a particular quarter is a reliable indicator of future performance. In addition, there is no industry standard for the definition of backlog and there may be an element of estimation in determining the amount. As such, direct comparisons with other companies may be difficult or potentially misleading.

Legal and Other Regulatory Matters

See discussion regarding legal and other regulatory matters in Part II, Item 1. Legal Proceedings.

Off-Balance Sheet Arrangements

Our only significant off-balance sheet commitments relate to operating lease obligations. Future annual minimum rental lease payments are detailed in Note 10 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended November 30, 2012. We have no “off-balance sheet arrangements” within the meaning of Item 303(a)(4) of Regulation S-K.

Recent Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This new guidance is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on our financial position, results of operations or cash flows.

In March 2013, the FASB issued Accounting Standards Update No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05). ASU 2013-05 provides guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or a business within a foreign entity. ASU 2013-05 is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-05 is not expected to have a material impact on our financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulative Other Comprehensive Income (ASU 2013-02), which replaces the presentation requirements for reclassifications out of accumulated other comprehensive income in ASU 2011-05 and ASU 2011-12. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income if the amount reclassified is required to be reclassified to net income in its entirety. We adopted ASU 2013-02 in the second quarter of fiscal year 2013 and applied it prospectively. The adoption of ASU 2013-02 did not have any impact on our financial position, results of operations or cash flows.

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In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If after performing the qualitative assessment an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step goodwill impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. ASU 2011-08 is effective for us in fiscal year 2013. We adopted ASU 2011-08 during the first quarter of fiscal year 2013 for our annual impairment test, which occurs in the first quarter of our fiscal year. The adoption did not have any impact on our financial position, results of operations or cash flows.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220) – Presentation of Comprehensive Income (ASU 2011-05), to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220) – Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05 (ASU 2011-12), which defers the effective date of only those changes in ASU 2011-05 that relate to the presentation of reclassification adjustments. We adopted ASU 2011-05 in our first quarter of fiscal year 2013, and applied it retrospectively. We elected to report comprehensive income as a separate, but consecutive statement to net income. The adoption of ASU 2011-05 did not have any impact on our financial position, results of operations or cash flows.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

During the third quarter of fiscal year 2013, there were no significant changes to our quantitative and qualitative disclosures about market risk. Please refer to Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk included in our Annual Report on Form 10-K for our fiscal year ended November 30, 2012 for a more complete discussion of the market risks we encounter.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures,” as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q.  Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were not effective at the reasonable assurance level to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure, due to a material weakness.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.  Based on this definition, as of November 30, 2012, management concluded we had a material weakness in our internal control over financial reporting because we failed to maintain effective controls necessary to ensure all terms and conditions being agreed to by our sales personnel with our customers and partners were properly documented within our contractual arrangements with such customers and partners, resulting in improper recognition of revenue. We determined that as a result of this deficiency, the timing of revenue recognized was improper on certain transactions that were immaterial to our financial statements.

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(b) Changes in internal control over financial reporting

As a result of the material weakness described above, we have implemented changes to our internal control over financial reporting in accordance with our remediation plan.  These changes have included the following:

• The termination of employment of various sales representatives and a former regional sales director determined to be in violation of our revenue recognition policy and code of conduct;

• The enhancement of communications from senior management, including the Chief Executive Officer, Senior Vice President of Global Field Operations and General Counsel and Chief Compliance Officer, regarding inappropriate business arrangements;

• The expansion of our existing sales employee certification process to include all Global Field Operations personnel, revenue operations personnel and commercial legal support personnel;

• Additional revenue recognition and compliance training to sales employees;

• The expansion of our existing quarterly pyramid certification process to include all direct reports of the CEO staff;

• Additional code of conduct training and certification procedures;

• The enhancement of processes with respect to the assessment of existing customer and partner credit worthiness;

• The enhancement of communications from senior management to our partners and resellers regarding our revenue recognition requirements; and

• The implementation of deal specific certifications over a predetermined threshold.

As of the date of this Quarterly Report on Form 10-Q, all planned remediation steps have been designed and implemented in accordance with the remediation plan. Although all planned remediation steps have been designed and implemented in accordance with the remediation plan, management will continue to evaluate the effectiveness of the remediation plan through the end of the fiscal year ended November 30, 2013. Accordingly, the material weakness will not be considered remediated until we have sufficient evidence that the new processes and related controls are operating effectively.

In addition, during the nine months ended August 31, 2013, we implemented a new order management system.  Management has made changes to internal controls as a result of the implementation, as appropriate. There have been no other changes to our internal controls that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe that the outcome of any of these other legal matters will have a material effect on our financial position, results of operations or cash flows.

Item 1A. Risk Factors

We operate in a rapidly changing environment that involves certain risks and uncertainties, some of which are beyond our control. In addition to the information provided in this report, please refer to Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended November 30, 2012 for a more complete discussion regarding certain factors that could materially affect our business, financial condition or future results.

If we fail to successfully manage transitions to new business models and markets, our results of operations could be negatively impacted.We are devoting significant resources to the development of technologies and service offerings in markets where we have a limited operating history.  To accelerate the growth of our business, we launched Progress Pacific, our cloud-based Application as a Service platform in July 2013.  Our cloud strategy requires continued investment in product development and cloud operations as well as a change in the way we price and deliver our products.  For example, over time, we may experience some shift from perpetual license sales and distribution of our software if our customers desire the right to access certain of our software in a hosted environment or use downloaded software for a specified subscription period.  Many of our competitors may have advantages over us due to their larger presence, larger developer network, deeper experience in the cloud-based computing market, and greater sales and marketing resources.  It is uncertain whether these strategies will prove successful or whether we will be able to develop the infrastructure and business models more quickly than our competitors. 

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

Items 2(a) and 2(b) are not applicable.

(c) Stock Repurchases

Information related to the repurchases of our common stock by month in the third quarter of fiscal year 2013 is as follows (in thousands, except per share data):

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (1)
June 2013	—	$	—	—	$	—
July 2013	1,697	25.12		1,697	59,529
August 2013	1,008	25.14		1,008	34,197
Total	2,705	$	25.12	2,705	$	34,197

(1) In April 2012, the Board of Directors authorized a $350.0 million return of capital to shareholders in the form of share repurchases through fiscal year 2013, and in October 2012 we launched a 10b5-1 to repurchase up to $250.0 million of our common stock through June 30, 2013, under the authorization. We completed this 10b5-1 in May 2013. In July 2013, we launched a 10b5-1 under the previous authorization, which the Board of Directors increased to $360.0 million, to repurchase up to $100.0 million of our common stock through December 31, 2013.

41

Item 6. Exhibits

The following exhibits are filed or furnished as part of this Quarterly Report on Form 10-Q:

Exhibit No.	Description
31.1*	Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act – Philip M. Pead
31.2*	Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act – Chris E. Perkins
32.1**	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
101***	The following materials from Progress Software Corporation’s Quarterly Report on Form 10-Q for the three months ended August 31, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of August 31, 2013 and November 30, 2012; (ii) Condensed Consolidated Statements of Income for the three and nine months ended August 31, 2013 and August 31, 2012; (iii) Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2013 and August 31, 2012; (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended August 31, 2013 and August 31, 2012; and (v) Notes to Condensed Consolidated Financial Statements.

*	Filed herewith
**	Furnished herewith
***	Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

42

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.

PROGRESS SOFTWARE CORPORATION

(Registrant)

Dated:	October 9, 2013	/s/ PHILIP M. PEAD
		Philip M. Pead
		President and Chief Executive Officer
		(Principal Executive Officer)
Dated:	October 9, 2013	/s/ CHRIS E. PERKINS
		Chris E. Perkins
		Senior Vice President, Finance and Administration and Chief Financial Officer
		(Principal Financial Officer)
Dated:	October 9, 2013	/s/ PAUL A. JALBERT
		Paul A. Jalbert
		Vice President, Corporate Controller and Chief Accounting Officer
		(Principal Accounting Officer)

43

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Philip M. Pead, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Progress Software Corporation;

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 officer 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 control 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 officer 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 registrant’s board of directors (or persons performing the equivalent function):

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: October 9, 2013

/s/ PHILIP M. PEAD

Philip M. Pead

President and Chief Executive Officer

(Principal Executive Officer)

1

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Chris E. Perkins, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Progress Software Corporation;

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 officer 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 control 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 officer 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 registrant’s board of directors (or persons performing the equivalent function):

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: October 9, 2013

/s/ CHRIS E. PERKINS

Chris E. Perkins

Senior Vice President, Finance and Administration and Chief Financial Officer

(Principal Financial Officer)

1

EX-32.1

Exhibit 32.1

Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Progress Software Corporation (the Company) for the three months ended August 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the Report), each of the undersigned, Philip M. Pead, President and Chief Executive Officer, and Chris E. Perkins, Senior Vice President, Finance and Administration and Chief Financial Officer, of the Company, certifies, to the best knowledge and belief of the signatory, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ PHILIP M. PEAD		/s/ CHRIS E. PERKINS
President and Chief Executive Officer		Senior Vice President, Finance and Administration
		and Chief Financial Officer
Date:	October 9, 2013	Date:	October 9, 2013

1

XML

Common Stock Repurchases

9 Months Ended

Aug. 31, 2013

Common Stock Repurchases [Abstract]

Common Stock Repurchases

Common Stock Repurchases

We repurchased and retired 10.3 million shares of our common stock for $237.4 million in the nine months ended August 31, 2013. The shares were repurchased as part of our Board of Directors authorized return of capital to shareholders in the form of share repurchases through December 31, 2013 of $360.0 million. No shares were repurchased in the nine months ended August 31, 2012.

XML

Divestitures (Gain on Sale) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		1 Months Ended	9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012	Jul. 31, 2013 Apama [Member]	Aug. 31, 2013 Apama [Member]	Aug. 31, 2013 Artix, Orbacus and Orbix [Member]	Aug. 31, 2013 Actional, DataXtend, ObjectStore, Savvion, and Sonic [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price					$ 44,268	$ 44,268	$ 15,000	$ 60,500
Less: transaction costs						2,029	826	1,211
Less: indemnification obligation							1,000
Less: net assets
Accounts receivables						2,426	2,300	12,004
Disposal Group, Including Discontinued Operation, Consideration Transferred, Other Current Assets						428
Goodwill and intangible assets						6,991	24,325	31,693
Disposal Group, Including Discontinued Operation, Consideration Transferred, Other Noncurrent Assets						426
Other assets							20	976
Impairment reserve							(8,601)
Deferred revenue						(3,917)	(5,893)	(19,168)
Other liabilities								(299)
Gain on sale			70,991	0		35,885	1,023	34,083
Tax provision						13,815	0	15,349
Gain on sale, net of tax	$ 22,070	$ 0	$ 41,827	$ 0		$ 22,070	$ 1,023	$ 18,734

XML

Condensed Consolidated Statements Of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Revenue:
Software licenses	$ 25,666	$ 22,637	$ 84,920	$ 72,816
Maintenance and services	51,912	51,734	158,096	158,154
Total revenue	77,578	74,371	243,016	230,970
Costs of revenue:
Cost of software licenses	1,587	1,375	5,033	4,117
Cost of maintenance and services	6,403	7,974	21,043	22,013
Amortization of acquired intangibles	529	139	811	522
Total costs of revenue	8,519	9,488	26,887	26,652
Gross profit	69,059	64,883	216,129	204,318
Operating expenses:
Sales and marketing	24,554	24,970	79,086	67,085
Product development	14,615	12,631	42,908	33,330
General and administrative	13,660	14,375	42,390	47,789
Amortization of acquired intangibles	211	207	549	622
Restructuring expenses	5,401	1,411	9,127	6,147
Acquisition-related expenses	957	0	2,229	215
Total operating expenses	59,398	53,594	176,289	155,188
Income from operations	9,661	11,289	39,840	49,130
Other (expense) income:
Interest income and other	371	1,017	1,146	2,352
Foreign currency loss, net	(194)	(660)	(1,809)	(1,476)
Total other (expense) income, net	177	357	(663)	876
Income from continuing operations before income taxes	9,838	11,646	39,177	50,006
Provision for income taxes	2,634	3,902	14,018	17,546
Income from continuing operations	7,204	7,744	25,159	32,460
Income (loss) from discontinued operations, net	17,639	(1,906)	34,712	(21,041)
Net income	$ 24,843	$ 5,838	$ 59,871	$ 11,419
Basic:
Continuing operations (in dollars per share)	$ 0.13	$ 0.12	$ 0.45	$ 0.52
Discontinued operations (in dollars per share)	$ 0.33	$ (0.03)	$ 0.63	$ (0.33)
Net income per share (in dollars per share)	$ 0.46	$ 0.09	$ 1.08	$ 0.18
Diluted:
Continuing operations (in dollars per share)	$ 0.13	$ 0.12	$ 0.45	$ 0.51
Discontinued operations (in dollars per share)	$ 0.32	$ (0.03)	$ 0.62	$ (0.33)
Net income per share (in dollars per share)	$ 0.46	$ 0.09	$ 1.06	$ 0.18
Weighted average shares outstanding:
Basic (in shares)	53,532	63,469	55,451	62,888
Diluted (in shares)	54,389	64,105	56,292	63,795

XML

Cash, Cash Equivalents and Investments

9 Months Ended

Aug. 31, 2013

Investments and Cash [Abstract]

Cash, Cash Equivalents And Investments

Cash, Cash Equivalents and Investments

A summary of our cash, cash equivalents and available-for-sale investments at August 31, 2013 is as follows (in thousands):

	Amortized Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash	$	156,428	$	—	$	—		$	156,428
Money market funds	58,914		—		—			58,914
State and municipal bond obligations	26,504		137		(1		)	26,640
Auction rate securities – municipal bonds	27,150		—		(3,443		)	23,707
Auction rate securities – student loans	3,500		—		(634		)	2,866
Total	$	272,496	$	137	$	(4,078	)	$	268,555

A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2012 is as follows (in thousands):

	Amortized Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash	$	176,201	$	—	$	—		$	176,201
Money market funds	125,591		—		—			125,591
State and municipal bond obligations	50,565		255		(2		)	50,818
Auction rate securities – municipal bonds	27,175		—		(3,755		)	23,420
Auction rate securities – student loans	3,500		—		(599		)	2,901
Corporate bonds	2,608		—		(1		)	2,607
Total	$	385,640	$	255	$	(4,357	)	$	381,538

Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands):

	August 31, 2013						November 30, 2012
	Cash and Equivalents		Short-Term Investments		Long-Term Investments		Cash and Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	156,428	$	—	$	—	$	176,201	$	—	$	—
Money market funds	58,914		—		—		125,591		—		—
State and municipal bond obligations	—		26,640		—		—		50,818		—
Auction rate securities – municipal bonds	—		—		23,707		—		—		23,420
Auction rate securities – student loans	—		—		2,866		—		—		2,901
Corporate bonds	—		—		—		—		2,607		—
Total	$	215,342	$	26,640	$	26,573	$	301,792	$	53,425	$	26,321

The valuation methodologies for our auction rate securities (ARS) are described in Note 4. Based on these methodologies, we determined that the fair value of our ARS investments is $26.6 million and $26.3 million at August 31, 2013 and November 30, 2012, respectively. The temporary impairment recorded in accumulated other comprehensive loss to reduce the value of our available-for-sale ARS investments was $4.1 million and $4.4 million at August 31, 2013 and November 30, 2012, respectively.

We will not be able to access the funds associated with our ARS investments until future auctions for these ARS are successful, we sell the securities in a secondary market, or they are redeemed by the issuer. As such, these remaining investments currently lack short-term liquidity and are therefore classified as long-term investments on the condensed consolidated balance sheets at August 31, 2013 and November 30, 2012.

Based on our cash, cash equivalents and short-term investments balance of $242.0 million, expected operating cash flows and the availability of funds under our revolving credit facility, we do not anticipate that the lack of liquidity associated with our ARS will adversely affect our ability to conduct business and we believe that we have the ability to hold the affected securities throughout the currently estimated recovery period. Therefore, the impairment of these securities is considered only temporary in nature. If the credit rating of either the security issuer or the third-party insurer underlying the investments deteriorates significantly, we may be required to adjust the carrying value of the ARS through an other-than-temporary impairment charge to earnings.

The fair value of debt securities by contractual maturity is as follows (in thousands):

	August 31, 2013		November 30, 2012
Due in one year or less (1)	$	39,011	$	55,001
Due after one year	14,202		24,745
Total	$	53,213	$	79,746

(1) Includes ARS which are tendered for interest-rate setting purposes periodically throughout the year. Beginning in February 2008, auctions for these securities began to fail, and therefore these investments currently lack short-term liquidity. The remaining contractual maturities of these securities range from 11 to 30 years.

Investments with continuous unrealized losses and their related fair values are as follows at August 31, 2013 (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal bond obligations	$	956	$	(1	)	$	—	$	—		$	956	$	(1	)
Auction rate securities – municipal bonds	—		—			23,707		(3,443		)	23,707		(3,443		)
Auction rate securities – student loans	—		—			2,866		(634		)	2,866		(634		)
Total	$	956	$	(1	)	$	26,573	$	(4,077	)	$	27,529	$	(4,078	)

Investments with continuous unrealized losses and their related fair values are as follows at November 30, 2012 (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal bond obligations	$	5,818	$	(1	)	$	472	$	(1	)	$	6,290	$	(2	)
Auction rate securities – municipal bonds	—		—			23,420		(3,755		)	23,420		(3,755		)
Auction rate securities – student loans	—		—			2,901		(599		)	2,901		(599		)
Corporate bonds	2,607		(1		)	—		—			2,607		(1		)
Total	$	8,425	$	(2	)	$	26,793	$	(4,355	)	$	35,218	$	(4,357	)

The unrealized losses associated with state and municipal bond obligations and corporate bonds are attributable to changes in interest rates. The unrealized losses associated with ARS are discussed above. Management does not believe any unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of August 31, 2013 and November 30, 2012.

XML

Cash, Cash Equivalents and Investments (Tables)

9 Months Ended

Aug. 31, 2013

Investments and Cash [Abstract]

Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments

A summary of our cash, cash equivalents and available-for-sale investments at August 31, 2013 is as follows (in thousands):

	Amortized Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash	$	156,428	$	—	$	—		$	156,428
Money market funds	58,914		—		—			58,914
State and municipal bond obligations	26,504		137		(1		)	26,640
Auction rate securities – municipal bonds	27,150		—		(3,443		)	23,707
Auction rate securities – student loans	3,500		—		(634		)	2,866
Total	$	272,496	$	137	$	(4,078	)	$	268,555

A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2012 is as follows (in thousands):

	Amortized Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash	$	176,201	$	—	$	—		$	176,201
Money market funds	125,591		—		—			125,591
State and municipal bond obligations	50,565		255		(2		)	50,818
Auction rate securities – municipal bonds	27,175		—		(3,755		)	23,420
Auction rate securities – student loans	3,500		—		(599		)	2,901
Corporate bonds	2,608		—		(1		)	2,607
Total	$	385,640	$	255	$	(4,357	)	$	381,538

Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments by Balance Sheet Classification

Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands):

	August 31, 2013						November 30, 2012
	Cash and Equivalents		Short-Term Investments		Long-Term Investments		Cash and Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	156,428	$	—	$	—	$	176,201	$	—	$	—
Money market funds	58,914		—		—		125,591		—		—
State and municipal bond obligations	—		26,640		—		—		50,818		—
Auction rate securities – municipal bonds	—		—		23,707		—		—		23,420
Auction rate securities – student loans	—		—		2,866		—		—		2,901
Corporate bonds	—		—		—		—		2,607		—
Total	$	215,342	$	26,640	$	26,573	$	301,792	$	53,425	$	26,321

Fair Value of Debt Securities by Contractual Maturity

The fair value of debt securities by contractual maturity is as follows (in thousands):

	August 31, 2013		November 30, 2012
Due in one year or less (1)	$	39,011	$	55,001
Due after one year	14,202		24,745
Total	$	53,213	$	79,746

(1) Includes ARS which are tendered for interest-rate setting purposes periodically throughout the year. Beginning in February 2008, auctions for these securities began to fail, and therefore these investments currently lack short-term liquidity. The remaining contractual maturities of these securities range from 11 to 30 years.

Investments with Continuous Unrealized Losses and Their Related Fair Values

Investments with continuous unrealized losses and their related fair values are as follows at August 31, 2013 (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal bond obligations	$	956	$	(1	)	$	—	$	—		$	956	$	(1	)
Auction rate securities – municipal bonds	—		—			23,707		(3,443		)	23,707		(3,443		)
Auction rate securities – student loans	—		—			2,866		(634		)	2,866		(634		)
Total	$	956	$	(1	)	$	26,573	$	(4,077	)	$	27,529	$	(4,078	)

Investments with continuous unrealized losses and their related fair values are as follows at November 30, 2012 (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal bond obligations	$	5,818	$	(1	)	$	472	$	(1	)	$	6,290	$	(2	)
Auction rate securities – municipal bonds	—		—			23,420		(3,755		)	23,420		(3,755		)
Auction rate securities – student loans	—		—			2,901		(599		)	2,901		(599		)
Corporate bonds	2,607		(1		)	—		—			2,607		(1		)
Total	$	8,425	$	(2	)	$	26,793	$	(4,355	)	$	35,218	$	(4,357	)

XML

Line of Credit (Narrative) (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Aug. 31, 2013
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Unsecured credit facility	$ 150.0
Additional borrowing capacity	75.0
Line of credit facility outstanding amount	0
Standby letters of credit [Member]
Line of Credit Facility [Line Items]
Additional borrowing capacity	25.0
Letters of credit outstanding amount	0.4
Swing line loans [Member]
Line of Credit Facility [Line Items]
Additional borrowing capacity	$ 20.0

XML

Stock-Based Compensation

9 Months Ended

Aug. 31, 2013

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

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using either the current market price of the stock or the Black-Scholes option valuation model. The Black-Scholes option valuation model incorporates assumptions as to stock price volatility, the expected life of options, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense on a straight-line basis over the service period of the award, which is generally 4 or 5 years for options and 3 years for restricted stock units and restricted stock awards.

The following table provides the classification of stock-based compensation as reflected in our condensed consolidated statements of income (in thousands):

	Three Months Ended				Nine Months Ended
	August 31, 2013		August 31, 2012		August 31, 2013		August 31, 2012
Cost of software licenses	$	—	$	4	$	—	$	7
Cost of maintenance and services	133		153		500		582
Sales and marketing	748		701		2,668		2,848
Product development	999		861		3,687		2,375
General and administrative	2,720		3,040		7,215		8,246
Stock-based compensation from continuing operations	4,600		4,759		14,070		14,058
Income (loss) from discontinued operations	973		2,985		2,290		7,446
Total stock-based compensation	$	5,573	$	7,744	$	16,360	$	21,504

During the second quarter of fiscal year 2013, in connection with the divestiture of the Apama product line, we entered into transition agreements with five executives. As part of the agreements, the executives were entitled to accelerated vesting of certain stock-based awards upon the completion of the divestiture. All employees associated with the Apama product line were also entitled to accelerated vesting of certain stock-based awards upon the completion of the divestiture. Due to the accelerated vesting, we recognized additional stock-based compensation of $0.8 million and $1.4 million in the three and nine months ended August 31, 2013, respectively, in discontinued operations.

During the nine months ended August 31, 2012, the employment of three of our executives terminated. As part of the separation agreements, the executives were entitled to accelerated vesting of certain stock-based awards. Due to the separation and accelerated vesting, we recognized additional stock-based compensation of $1.8 million in the nine months ended August 31, 2012.

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Intangible Assets and Goodwill (Schedule Of Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 64,267	$ 68,997
Accumulated Amortization	(53,577)	(63,878)
Net Book Value	10,690	5,119
Purchased technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	44,730	42,520
Accumulated Amortization	(36,117)	(40,066)
Net Book Value	8,613	2,454
Customer-related and other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	19,537	26,477
Accumulated Amortization	(17,460)	(23,812)
Net Book Value	$ 2,077	$ 2,665

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Common Stock Repurchases (Details) (USD $) In Millions, except Share data, unless otherwise specified	9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012
Common Stock Repurchases [Abstract]
Common stock repurchased and retired (in shares)	10,300,000	0
Common stock repurchased and retired	$ 237.4
Authorized amount for share repurchase programs	$ 360.0

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Cash, Cash Equivalents and Investments (Fair Value of Debt Securities by Contractual Maturity) (Details) (USD $) In Thousands, unless otherwise specified					3 Months Ended
	Aug. 31, 2013		Nov. 30, 2012		Aug. 31, 2013 Minimum [Member]	Aug. 31, 2013 Maximum [Member]
Cash, Cash Equivalents and Investments [Line Items]
Due in one year or less	$ 39,011	[1]	$ 55,001	[1]
Due after one year	14,202		24,745
Total	$ 53,213		$ 79,746
Remaining contractual maturity of investments (in years)					11 years	30 years

[1] Includes ARS which are tendered for interest-rate setting purposes periodically throughout the year. Beginning in February 2008, auctions for these securities began to fail, and therefore these investments currently lack short-term liquidity. The remaining contractual maturities of these securities range from 11 to 30 years.

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Intangible Assets and Goodwill (Tables)

9 Months Ended

Aug. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Intangible Assets

Intangible assets are comprised of the following significant classes (in thousands):

	August 31, 2013							November 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	44,730	$	(36,117	)	$	8,613	$	42,520	$	(40,066	)	$	2,454
Customer-related and other	19,537		(17,460		)	2,077		26,477		(23,812		)	2,665
Total	$	64,267	$	(53,577	)	$	10,690	$	68,997	$	(63,878	)	$	5,119

Schedule Of Future Amortization Expense From Intangible Assets Held

Future amortization expense for intangible assets as of August 31, 2013, is as follows (in thousands):

Remainder of 2013	$	739
2014	2,638
2015	2,409
2016	1,906
2017	1,906
Thereafter	1,092
Total	$	10,690

Schedule of Goodwill

Changes in the carrying amount of goodwill for the nine months ended August 31, 2013, are as follows (in thousands):

Balance, November 30, 2012	$	226,110
Addition	4,798
Disposal	(6,377		)
Translation adjustments	(241		)
Balance, August 31, 2013	$	224,290

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Fair Value Measurements (Tables)

9 Months Ended

Aug. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements within the Fair Value Hierarchy of the Financial Assets

The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at August 31, 2013 (in thousands):

				Fair Value Measurements Using
	Total Fair Value			Level 1		Level 2			Level 3
Assets
Money market funds	$	58,914		$	58,914	$	—		$	—
State and municipal bond obligations	26,640			—		26,640			—
Auction rate securities – municipal bonds	23,707			—		—			23,707
Auction rate securities – student loans	2,866			—		—			2,866
Foreign exchange derivatives	(87		)	—		(87		)	—
Liabilities
Contingent consideration	$	383		$	—	$	—		$	383

The following table details the fair value measurements within the fair value hierarchy of our financial assets at November 30, 2012 (in thousands):

				Fair Value Measurements Using
	Total Fair Value			Level 1		Level 2			Level 3
Money market funds	$	125,591		$	125,591	$	—		$	—
State and municipal bond obligations	50,818			—		50,818			—
Auction rate securities – municipal bonds	23,420			—		—			23,420
Auction rate securities – student loans	2,901			—		—			2,901
Corporate bonds	2,607			—		2,607			—
Foreign exchange derivatives	(186		)	—		(186		)	—

Quantitative Information about Unobservable Inputs

The following table provides additional quantitative information about the unobservable inputs used in our Level 3 asset valuations as of August 31, 2013:

	Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	Discounted cash flow	Probability of earning the maximum rate until maturity	0.2% - 9.9% (1.7%)
		Probability of principal return prior to maturity	75.7% - 95.1% (87.0%)
		Probability of default	4.1% - 24.1% (11.3%)
		Liquidity risk premium	4.0%
		Recovery rate in default	50% - 70% (56.5%)
	Market valuation	Market credit default swap spread of insurer	4.05%
		Credit rating of insurer	AA-

Activity for Financial Assets Measured at Fair Value Using Level 3 Inputs

The following table reflects the activity for our financial assets measured at fair value using Level 3 inputs for each period presented (in thousands):

	Three Months Ended					Nine Months Ended
	August 31, 2013		August 31, 2012			August 31, 2013			August 31, 2012
Balance, beginning of period	$	26,500	$	31,448		$	26,321		$	33,539
Redemptions and repurchases	—		—			(25		)	(225		)
Transfer to Level 2 fair value measurement	—		—			—			(2,700		)
Unrealized gains (losses) included in accumulated other comprehensive loss	73		(163		)	277			671
Balance, end of period	$	26,573	$	31,285		$	26,573		$	31,285

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table details our nonrecurring fair value measurements at November 30, 2012 (in thousands):

			Fair Value Measurements Using
	Total Fair Value		Level 1		Level 2		Level 3		Total Losses
Disposal group	$	16,487	$	—	$	16,487	$	—	$	8,601

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Fair Value Measurements (Nonrecurring Measurements) (Details) (USD $)							12 Months Ended
	Aug. 31, 2013	Nov. 30, 2012	Nov. 30, 2012 Fair Value, Measurements, Nonrecurring [Member]	Nov. 30, 2012 Fair Value, Measurements, Nonrecurring [Member] Level 1 [Member]	Nov. 30, 2012 Fair Value, Measurements, Nonrecurring [Member] Level 2 [Member]	Nov. 30, 2012 Fair Value, Measurements, Nonrecurring [Member] Level 3 [Member]	Nov. 30, 2012 Artix, Orbacus and Orbix [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held for sale	$ 0	$ 68,029,000	$ 16,487,000	$ 0	$ 16,487,000	$ 0
Impairment loss on assets held for sale							8,601,000
Assets held for sale, at fair value							16,500,000
Assets held for sale, at carrying value							$ 25,100,000

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Basis of Presentation (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended	9 Months Ended	1 Months Ended	9 Months Ended
	Aug. 31, 2012 Segments	Feb. 28, 2013 product_lines	Aug. 31, 2013 Segments	Jul. 31, 2013 Apama [Member]	Aug. 31, 2013 Apama [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of product lines divested		10
Number of reportable segments	2		1
Sale of Apama product line, sales price				$ 44,268	$ 44,268

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Derivative Instruments (Narrative) (Details) (Forward Contracts [Member], USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Forward Contracts [Member]
Derivative [Line Items]
Maximum maturity period, foreign currency derivative (in days)			90 days
Gains (losses) on foreign currency forward contracts	$ 1.3	$ (0.3)	$ 0.8	$ 0

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Intangible Assets and Goodwill (Schedule Of Future Amortization Expense From Intangible Assets Held) (Details) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2013	$ 739
2014	2,638
2015	2,409
2016	1,906
2017	1,906
Thereafter	1,092
Net Book Value	$ 10,690	$ 5,119

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Aug. 31, 2013

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated balances of other comprehensive loss during the nine months ended August 31, 2013 (in thousands):

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on investments			Accumulated Other Comprehensive Loss
Balance, December 1, 2012	$	(8,183	)	$	(2,581	)	$	(10,764	)
Other comprehensive income (loss) before reclassifications, net of tax	(4,010		)	98			(3,912		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—
Balance, August 31, 2013	$	(12,193	)	$	(2,483	)	$	(14,676	)

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Earnings Per Share (Calculation of Basic and Diluted Earnings Per Share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Earnings Per Share [Abstract]
Income from continuing operations (in dollars)	$ 7,204	$ 7,744	$ 25,159	$ 32,460
Weighted average shares outstanding	53,532	63,469	55,451	62,888
Dilutive impact from common stock equivalents	857	636	841	907
Diluted weighted average shares outstanding	54,389	64,105	56,292	63,795
Basic earnings per share from continuing operations (in dollars per share)	$ 0.13	$ 0.12	$ 0.45	$ 0.52
Diluted earnings per share from continuing operations (in dollars per share)	$ 0.13	$ 0.12	$ 0.45	$ 0.51

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Income Taxes (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Feb. 28, 2013
Income Tax Disclosure [Abstract]
Tax benefit of qualifiying research and development activities	$ 0.4
Decrease to unrecognized tax benefits related to settlements with taxing authorities	$ 1.2

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Fair Value Measurements Fair Value Measurments (Quantitative Information about Unobservable Inputs) (Details)	9 Months Ended
	Aug. 31, 2013
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Liquidity risk premium	4.00%
Market credit default swap spread	4.05%
Credit rating of insurer (in credit rating)	AA-
Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Probability of earning maximum rate until maturity	0.20%
Probability of principal returned prior to maturity	75.70%
Probability of default	4.10%
Recovery rate in default	50.00%
Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Probability of earning maximum rate until maturity	9.90%
Probability of principal returned prior to maturity	95.10%
Probability of default	24.10%
Recovery rate in default	70.00%
Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Probability of earning maximum rate until maturity	1.70%
Probability of principal returned prior to maturity	87.00%
Probability of default	11.30%
Recovery rate in default	56.50%

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Derivative Instruments (Tables)

9 Months Ended

Aug. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding Foreign Currency Forward Contracts

The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands):

	August 31, 2013					November 30, 2012
	Notional Value		Fair Value			Notional Value		Fair Value
Forward contracts to sell U.S. dollars	$	24,098	$	(38	)	$	6,453	$	4
Forward contracts to purchase U.S. dollars	19,873		(49		)	31,465		(190		)
Total	$	43,971	$	(87	)	$	37,918	$	(186	)

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Condensed Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Statement of Other Comprehensive Income [Abstract]
Tax provision (benefit) included in accumulated unrealized gains on investments	$ 6	$ (54)	$ 57	$ 37

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Condensed Consolidated Statements Of Cash Flows (Parenthetical) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012
Statement of Cash Flows [Abstract]
Proceeds from income tax refunds	$ 4,324	$ 632

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Derivative Instruments

9 Months Ended

Aug. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

We use forward contracts that are not designated as hedging instruments to hedge economically the impact of the variability in exchange rates on accounts receivable and collections denominated in certain foreign currencies. We generally do not hedge the net assets of our international subsidiaries. All forward contracts are recorded at fair value in other current assets on the condensed consolidated balance sheets at the end of each reporting period and expire within 90 days. In the three and nine months ended August 31, 2013, realized and unrealized gains of $1.3 million and $0.8 million, respectively, from our forward contracts were recognized in other income (expense) in the condensed consolidated statements of income. In the three and nine months ended August 31, 2012, realized and unrealized losses of $0.3 million and $0.0 million, respectively, from our forward contracts were recognized in other income (expense) in the condensed consolidated statements of income. These losses were substantially offset by realized and unrealized gains on the offsetting positions.

The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands):

	August 31, 2013					November 30, 2012
	Notional Value		Fair Value			Notional Value		Fair Value
Forward contracts to sell U.S. dollars	$	24,098	$	(38	)	$	6,453	$	4
Forward contracts to purchase U.S. dollars	19,873		(49		)	31,465		(190		)
Total	$	43,971	$	(87	)	$	37,918	$	(186	)

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Basis of Presentation

9 Months Ended

Aug. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2012.

We made no significant changes in the application of our significant accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2012. We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our Annual Report on Form 10-K, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year.

During the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013, we completed the divestitures of the ten product lines which were not considered core product lines of our business: Actional, Artix, DataXtend, FuseSource, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic. The divestitures were part of the new strategic plan (the "Plan") we announced during fiscal year 2012. After the announcement of the Plan, we began reporting our results in two reportable segments: Core and non-Core. Since the non-Core segment ceased to exist during the first quarter of fiscal year 2013, after the closing of all these divestitures, we now operate as one reportable segment. In addition, the revenues and direct expenses of the product lines divested are included in discontinued operations in our condensed consolidated statements of income, including prior period amounts which have been revised to reflect the presentation.

In June 2013, we entered into a definitive purchase and sale agreement to divest our Apama product line to Software AG. The target market, deployment and sales model for the Apama product line differed significantly from those of our application development platform and the divestiture allowed us to focus entirely on providing leading cloud and mobile application development technologies through a single cohesive platform. The sale closed in July 2013 for a purchase price of $44.3 million. The revenue and direct expenses of the Apama product line are included in discontinued operations in our consolidated statements of income, including prior period amounts which have been revised to reflect the presentation.

Recent Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This new guidance is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on our financial position, results of operations or cash flows.

In March 2013, the FASB issued Accounting Standards Update No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05). ASU 2013-05 provides guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or a business within a foreign entity. ASU 2013-05 is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-05 is not expected to have a material impact on our financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulative Other Comprehensive Income (ASU 2013-02), which replaces the presentation requirements for reclassifications out of accumulated other comprehensive income in ASU 2011-05 and ASU 2011-12. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income if the amount reclassified is required to be reclassified to net income in its entirety. We adopted ASU 2013-02 in the second quarter of fiscal year 2013 and applied it prospectively. The adoption of ASU 2013-02 did not have any impact on our financial position, results of operations or cash flows.

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If after performing the qualitative assessment an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step goodwill impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. ASU 2011-08 is effective for us in fiscal year 2013. We adopted ASU 2011-08 during the first quarter of fiscal year 2013 for our annual impairment test, which occurs in the first quarter of our fiscal year. The adoption did not have any impact on our financial position, results of operations or cash flows.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220) – Presentation of Comprehensive Income (ASU 2011-05), to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220) – Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05 (ASU 2011-12), which defers the effective date of only those changes in ASU 2011-05 that relate to the presentation of reclassification adjustments. We adopted ASU 2011-05 in our first quarter of fiscal year 2013, and applied it retrospectively. We elected to report comprehensive income as a separate, but consecutive statement to net income. The adoption of ASU 2011-05 did not have any impact on our financial position, results of operations or cash flows.

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Derivative Instruments (Outstanding Foreign Currency Forward Contracts) (Details) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012
Derivative [Line Items]
Total, Notional Value	$ 43,971	$ 37,918
Total, Fair Value	(87)	(186)
Forward contracts to sell U.S. dollars [Member]
Derivative [Line Items]
Foreign currency derivative contracts to sell U.S. dollars, Notional Value	24,098	6,453
Foreign currency derivative contracts to purchase U.S. dollars, Fair Value	(38)	4
Forward contracts to purchase U.S. dollars [Member]
Derivative [Line Items]
Foreign currency derivative contracts to purchase U.S. dollars, Notional Value	19,873	31,465
Foreign currency derivative contracts to purchase U.S. dollars, Fair Value	$ (49)	$ (190)

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Divestitures (Tables)

9 Months Ended

Aug. 31, 2013

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The components included in discontinued operations on the condensed consolidated statements of income are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	August 31, 2013			August 31, 2012			August 31, 2013			August 31, 2012
Revenue	$	537		$	37,610		$	16,143		$	120,033
Income (loss) before income taxes	(6,221		)	(979		)	(9,338		)	(30,697		)
Income tax (benefit) provision	(1,790		)	927			(2,223		)	(9,656		)
Gain on sale, net of tax	22,070			—			41,827			—
Income (loss) from discontinued operations, net	$	17,639		$	(1,906	)	$	34,712		$	(21,041	)

Apama [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The gain on the sale of the Apama product line is calculated as follows (in thousands):

Purchase price	$	44,268
Less: transaction costs	2,029
Less: net assets
Accounts receivable	2,426
Other current assets	428
Goodwill and intangible assets	6,991
Other long-term assets	426
Deferred revenue	(3,917		)
Gain on sale	35,885
Tax provision	13,815
Gain on sale, net of tax	$	22,070

Artix, Orbacus and Orbix [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Gain on Disposal Groups, Including Discontinued Operations

The gain on sale of the Artix, Orbacus and Orbix product lines is calculated as follows (in thousands):

Purchase price	$	15,000
Less: transaction costs	826
Less: indemnification obligation	1,000
Less: net assets
Accounts receivables	2,300
Goodwill and intangible assets	24,325
Other assets	20
Impairment reserve	(8,601		)
Deferred revenue	(5,893		)
Gain on sale	1,023
Tax provision	—
Gain on sale, net of tax	$	1,023

Actional, DataXtend, ObjectStore, Savvion, and Sonic [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Gain on Disposal Groups, Including Discontinued Operations

The gain on sale of the Actional, DataXtend, ObjectStore, Savvion and Sonic product lines is calculated as follows (in thousands):

Purchase price	$	60,500
Less: transaction costs	1,211
Less: net assets
Accounts receivables	12,004
Goodwill and intangible assets	31,693
Other assets	976
Deferred revenue	(19,168		)
Other liabilities	(299		)
Gain on sale	34,083
Tax provision	15,349
Gain on sale, net of tax	$	18,734

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Restructuring Charges (Tables)

9 Months Ended

Aug. 31, 2013

2013 Restructuring Activities [Member]

Restructuring Cost and Reserve [Line Items]

Summary of Restructuring Activity

A summary of activity for the 2013 restructuring action is as follows (in thousands):

	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	—		$	—		$	—
Costs incurred	388			5,716			6,104
Cash disbursements	(20		)	(1,020		)	(1,040		)
Asset impairment	—			—			—
Translation adjustments and other	—			14			14
Balance, August 31, 2013	$	368		$	4,710		$	5,078

2012 Restructuring Activities [Member]

Restructuring Cost and Reserve [Line Items]

Summary of Restructuring Activity

A summary of activity for the 2012 restructuring action during the nine months ended August 31, 2013, is as follows (in thousands):

	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	603		$	6,429		$	7,032
Costs incurred	1,213			2,844			4,057
Cash disbursements	(668		)	(8,544		)	(9,212		)
Asset impairment	(111		)	—			(111		)
Translation adjustments and other	(5		)	27			22
Balance, August 31, 2013	$	1,032		$	756		$	1,788

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Cash, Cash Equivalents and Investments (Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments by Balance Sheet Classification) (Details) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012	Aug. 31, 2012	Nov. 30, 2011
Cash, Cash Equivalents and Investments [Line Items]
Cash and Equivalents	$ 215,342	$ 301,792	$ 294,398	$ 161,095
Short-Term Investments	26,640	53,425
Long-Term Investments	26,573	26,321
State and municipal bond obligations [Member]
Cash, Cash Equivalents and Investments [Line Items]
Short-Term Investments	26,640	50,818
Long-Term Investments	0	0
Auction rate securities - municipal bonds [Member]
Cash, Cash Equivalents and Investments [Line Items]
Short-Term Investments	0	0
Long-Term Investments	23,707	23,420
Auction rate securities - student loans [Member]
Cash, Cash Equivalents and Investments [Line Items]
Short-Term Investments	0	0
Long-Term Investments	2,866	2,901
Corporate bonds [Member]
Cash, Cash Equivalents and Investments [Line Items]
Short-Term Investments	0	2,607
Long-Term Investments	0	0
Cash [Member]
Cash, Cash Equivalents and Investments [Line Items]
Cash and Equivalents	156,428	176,201
Money market funds [Member]
Cash, Cash Equivalents and Investments [Line Items]
Cash and Equivalents	$ 58,914	$ 125,591

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Business Combinations (Schedule of Net Assets Acquired) (Details) (USD $) In Thousands, unless otherwise specified				9 Months Ended
	Aug. 31, 2013	Nov. 30, 2012	May 24, 2013 Rollbase [Member]	Aug. 31, 2013 Customer Relationships [Member] Rollbase [Member]	Aug. 31, 2013 Purchased Technology [Member] Rollbase [Member]
Business Acquisition [Line Items]
Cash			$ 50
Acquired intangible assets			7,960
Goodwill	224,290	226,110	4,798
Deferred taxes			(2,921)
Accounts payable and other liabilities			(8)
Net assets acquired			$ 9,879
Acquired intangible assets, Life				1 year	5 years

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Intangible Assets and Goodwill Intangible Assets and Goodwill (Schedule of Goodwill) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Aug. 31, 2013
Goodwill [Roll Forward]
Balance, November 30, 2012	$ 226,110
Addition	4,798
Disposal	6,377
Translation adjustments	(241)
Balance, August 31, 2013	$ 224,290

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Fair Value Measurements (Activity for Financial Assets Measured at Fair Value Using Level 3 Inputs) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Fair Value, Assets Measured on Recurring Basis, Level 3 Reconciliation [Roll Forward]
Balance, beginning of period	$ 26,500	$ 31,448	$ 26,321	$ 33,539
Redemptions and repurchases	0	0	(25)	(225)
Transfer to Level 2 fair value measurement	0	0	0	(2,700)
Unrealized gains (losses) included in accumulated other comprehensive loss	73	(163)	277	671
Balance, end of period	$ 26,573	$ 31,285	$ 26,573	$ 31,285

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012
Assets
Allowance for accounts receivable (in dollars)	$ 2,392	$ 3,024
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	52,311,645	59,594,961
Common stock, shares outstanding	52,311,645	59,594,961
Accumulated other comprehensive losses (in dollars)	$ (14,676)	$ (10,764)

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Divestitures

9 Months Ended

Aug. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Divestitures

Under the Plan, we announced that we would divest all product lines which were not considered core product lines of our business: Actional, Artix, DataXtend, FuseSource, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic. The FuseSource and Shadow product lines were divested in fiscal year 2012. The remaining product lines were divested in the first quarter of fiscal year 2013.

In the second quarter of fiscal year 2013, we entered into a definitive purchase and sale agreement to divest our Apama product line to Software AG. The sale closed in July 2013 for a purchase price of $44.3 million.

Revenues and direct expenses of the divested product lines have been reclassified as discontinued operations for all periods presented. The fiscal year 2012 results include revenues and direct expenses of all divested product lines, since we earned revenues and incurred direct expenses for all or part of fiscal year 2012 for each of those product lines. The fiscal year 2013 results include the revenues and direct expenses of the product lines which had not been divested prior to the start of fiscal year 2013.

The components included in discontinued operations on the condensed consolidated statements of income are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	August 31, 2013			August 31, 2012			August 31, 2013			August 31, 2012
Revenue	$	537		$	37,610		$	16,143		$	120,033
Income (loss) before income taxes	(6,221		)	(979		)	(9,338		)	(30,697		)
Income tax (benefit) provision	(1,790		)	927			(2,223		)	(9,656		)
Gain on sale, net of tax	22,070			—			41,827			—
Income (loss) from discontinued operations, net	$	17,639		$	(1,906	)	$	34,712		$	(21,041	)

Apama

In the second quarter of fiscal year 2013, we entered into a definitive purchase and sale agreement to divest our Apama product line to Software AG. The sale closed in July 2013 for a purchase price of $44.3 million. Of the total consideration, $4.5 million is held in escrow to secure indemnification claims, if any, for up to 18 months. As of August 31, 2013, the escrow is included in other assets on the consolidated balance sheet. In connection with the sale, we also entered into a three year distributor license agreement with Software AG for $0.7 million for one of our DataDirect products. The distributor license agreement does not constitute direct cash flows or significant continuing involvement of the Apama product line, and thus does not preclude us from discontinued operations treatment.

The gain on the sale of the Apama product line is calculated as follows (in thousands):

Purchase price	$	44,268
Less: transaction costs	2,029
Less: net assets
Accounts receivable	2,426
Other current assets	428
Goodwill and intangible assets	6,991
Other long-term assets	426
Deferred revenue	(3,917		)
Gain on sale	35,885
Tax provision	13,815
Gain on sale, net of tax	$	22,070

Artix, Orbacus and Orbix

In the first quarter of fiscal year 2013, we entered into a definitive purchase and sale agreement to divest our Artix, Orbacus and Orbix product lines to a subsidiary of Micro Focus International plc (Micro Focus). The divestiture of these product lines was part of the Plan. The sale closed in February 2013 for total consideration of $15.0 million.

The gain on sale of the Artix, Orbacus and Orbix product lines is calculated as follows (in thousands):

Purchase price	$	15,000
Less: transaction costs	826
Less: indemnification obligation	1,000
Less: net assets
Accounts receivables	2,300
Goodwill and intangible assets	24,325
Other assets	20
Impairment reserve	(8,601		)
Deferred revenue	(5,893		)
Gain on sale	1,023
Tax provision	—
Gain on sale, net of tax	$	1,023

In February 2013, upon the closing of the sale of Artix, Orbacus and Orbix, we amended the definitive purchase and sale agreement with Micro Focus to provide an additional indemnification obligation with respect to a specified vendor. The fair value of the indemnification obligation on the date the sale closed and the carrying value at August 31, 2013 is $1.0 million, and is included in other accrued liabilities in the condensed consolidated balance sheet. Our maximum indemnification obligation with respect to this matter is $11.3 million. The term of the indemnification is indefinite; however, we expect the matter to be substantially resolved within the next six months.

In the fourth quarter of fiscal year 2012, we recorded an $8.6 million impairment loss on the Artix, Orbacus and Orbix assets held for sale based on our expectations of a sales price as compared to our estimation of the net assets to be sold at closing. The impairment loss was recorded as a reserve against the assets held for sale as of November 30, 2012. The gain recorded in the first quarter of fiscal year 2013 was the result of differences in our estimation of net assets to be sold at closing versus the actual value of the net assets sold at closing.

Actional, DataXtend, ObjectStore, Savvion and Sonic

In the fourth quarter of fiscal year 2012, we entered into a definitive purchase and sale agreement to divest our Actional, DataXtend, Savvion and Sonic product lines to the investment arm of Trilogy Enterprises. In December 2012, the agreement was amended to include the sale of our ObjectStore product line. The divestiture of these product lines was part of the Plan. The sale closed in December 2012 for total consideration of $60.5 million.

The gain on sale of the Actional, DataXtend, ObjectStore, Savvion and Sonic product lines is calculated as follows (in thousands):

Purchase price	$	60,500
Less: transaction costs	1,211
Less: net assets
Accounts receivables	12,004
Goodwill and intangible assets	31,693
Other assets	976
Deferred revenue	(19,168		)
Other liabilities	(299		)
Gain on sale	34,083
Tax provision	15,349
Gain on sale, net of tax	$	18,734

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Condendsed Consolidated Statements of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Statement of Other Comprehensive Income [Abstract]
Net income	$ 24,843	$ 5,838	$ 59,871	$ 11,419
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(1,548)	658	(4,010)	(1,365)
Unrealized gain (loss) on investments, net of tax provision of $6 and $57 for the third quarter and the first nine months of 2013 and net of tax benefit of $54 and tax provision of $37 for the third quarter and first nine months of 2012, respectively	11	(93)	98	726
Total other comprehensive (loss) income, net of tax	(1,537)	565	(3,912)	(639)
Comprehensive income	$ 23,306	$ 6,403	$ 55,959	$ 10,780

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Stock-Based Compensation (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012 Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 5,573,000	$ 7,744,000	$ 16,360,000	$ 21,504,000
Number of executives whose employment was terminated				3
Additional stock-based compensation expenses related to separation and acceleration vesting (in dollars)				1,800,000
Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation award service period (in years)			4 years
Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation award service period (in years)			5 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation award service period (in years)			3 years
Accelerated Vesting [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 800,000		$ 1,400,000

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012
Assets
Cash and cash equivalents	$ 215,342	$ 301,792
Short-term investments	26,640	53,425
Total cash, cash equivalents and short-term investments	241,982	355,217
Accounts receivable (less allowances of $2,392 and $3,024, respectively)	53,620	70,793
Other current assets	27,252	16,478
Deferred tax assets	12,783	16,301
Assets held for sale	0	68,029
Total current assets	335,637	526,818
Property and equipment, net	56,889	63,071
Intangible assets, net	10,690	5,119
Goodwill	224,290	226,110
Deferred tax assets	24,197	26,565
Investments in auction rate securities	26,573	26,321
Other assets	8,314	10,973
Total assets	686,590	884,977
Liabilities and shareholders’ equity
Accounts payable	5,797	10,477
Accrued compensation and related taxes	23,813	39,105
Income taxes payable	0	21,486
Other accrued liabilities	37,626	39,876
Short-term deferred revenue	96,534	103,925
Liabilities held for sale	0	25,285
Total current liabilities	163,770	240,154
Long-term deferred revenue	1,044	2,817
Deferred tax liabilities	477	1,032
Other noncurrent liabilities	1,944	2,575
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value; authorized, 1,000,000 shares; issued, none	0	0
Common stock, $0.01 par value, and additional paid-in capital; authorized, 200,000,000 shares; issued and outstanding, 52,311,645 shares in 2013 and 59,594,961 shares in 2012	214,915	300,333
Retained earnings, including accumulated other comprehensive loss of $14,676 in 2013 and $10,764 in 2012	304,440	338,066
Total shareholders’ equity	519,355	638,399
Total liabilities and shareholders’ equity	$ 686,590	$ 884,977

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Divestitures (Narrative) (Details) (USD $)	1 Months Ended	9 Months Ended		12 Months Ended	9 Months Ended
	Jul. 31, 2013 Apama [Member]	Aug. 31, 2013 Apama [Member]	Aug. 31, 2013 Artix, Orbacus and Orbix [Member]	Nov. 30, 2012 Artix, Orbacus and Orbix [Member]	Aug. 31, 2013 Actional, DataXtend, ObjectStore, Savvion, and Sonic [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total consideration	$ 44,268,000	$ 44,268,000	$ 15,000,000		$ 60,500,000
Disposal Group, Including Discontinued Operations, Consideration Held in Escrow	4,500,000
Carrying value of indemnification obligation			1,000,000
Period to be held in escrow to secure indemnification claims	18 months
Period of distributor license agreement		3 years
Reduction of purchase price	700,000
Indemnification obligation, maximum potential exposure			11,300,000
Impairment loss on assets held for sale				$ 8,601,000

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Business Combinations (Tables)

9 Months Ended

Aug. 31, 2013

Business Combinations [Abstract]

Schedule of Allocation of the Purchase Price

The allocation of the purchase price is as follows (in thousands):

	Total			Life
Cash	$	50
Acquired intangible assets	7,960			1 to 5 years
Goodwill	4,798
Deferred taxes	(2,921		)
Accounts payable and other liabilities	(8		)
Net assets acquired	$	9,879

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Basis of Presentation (Policies)

9 Months Ended

Aug. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting

We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2012.

We made no significant changes in the application of our significant accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2012. We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our Annual Report on Form 10-K, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year.

During the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013, we completed the divestitures of the ten product lines which were not considered core product lines of our business: Actional, Artix, DataXtend, FuseSource, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic. The divestitures were part of the new strategic plan (the "Plan") we announced during fiscal year 2012. After the announcement of the Plan, we began reporting our results in two reportable segments: Core and non-Core. Since the non-Core segment ceased to exist during the first quarter of fiscal year 2013, after the closing of all these divestitures, we now operate as one reportable segment. In addition, the revenues and direct expenses of the product lines divested are included in discontinued operations in our condensed consolidated statements of income, including prior period amounts which have been revised to reflect the presentation.

In June 2013, we entered into a definitive purchase and sale agreement to divest our Apama product line to Software AG. The target market, deployment and sales model for the Apama product line differed significantly from those of our application development platform and the divestiture allowed us to focus entirely on providing leading cloud and mobile application development technologies through a single cohesive platform. The sale closed in July 2013 for a purchase price of $44.3 million. The revenue and direct expenses of the Apama product line are included in discontinued operations in our consolidated statements of income, including prior period amounts which have been revised to reflect the presentation.

Recent Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This new guidance is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on our financial position, results of operations or cash flows.

In March 2013, the FASB issued Accounting Standards Update No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05). ASU 2013-05 provides guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or a business within a foreign entity. ASU 2013-05 is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-05 is not expected to have a material impact on our financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulative Other Comprehensive Income (ASU 2013-02), which replaces the presentation requirements for reclassifications out of accumulated other comprehensive income in ASU 2011-05 and ASU 2011-12. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income if the amount reclassified is required to be reclassified to net income in its entirety. We adopted ASU 2013-02 in the second quarter of fiscal year 2013 and applied it prospectively. The adoption of ASU 2013-02 did not have any impact on our financial position, results of operations or cash flows.

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If after performing the qualitative assessment an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step goodwill impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. ASU 2011-08 is effective for us in fiscal year 2013. We adopted ASU 2011-08 during the first quarter of fiscal year 2013 for our annual impairment test, which occurs in the first quarter of our fiscal year. The adoption did not have any impact on our financial position, results of operations or cash flows.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220) – Presentation of Comprehensive Income (ASU 2011-05), to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220) – Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05 (ASU 2011-12), which defers the effective date of only those changes in ASU 2011-05 that relate to the presentation of reclassification adjustments. We adopted ASU 2011-05 in our first quarter of fiscal year 2013, and applied it retrospectively. We elected to report comprehensive income as a separate, but consecutive statement to net income. The adoption of ASU 2011-05 did not have any impact on our financial position, results of operations or cash flows.

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Fair Value Measurements (Quantitative Information about Unobservable Inputs, Liabilities) (Details) (Contingent Consideration [Member])	9 Months Ended
	Aug. 31, 2013
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration, discount rate	4.80%
Minimum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Probability milestones associated with contingent consideration will be achieved	95.00%

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Business Combinations (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended			0 Months Ended	3 Months Ended	9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012	Nov. 30, 2012	May 24, 2013 Rollbase [Member]	Aug. 31, 2013 Rollbase [Member]	Aug. 31, 2013 Rollbase [Member]
Business Acquisition [Line Items]
Equity interests in Rollbase, Inc.						100.00%
Total purchase consideration						$ 9,900,000
Purchase consideration, cash						9,500,000
Purchase consideration, contingent consideration						400,000
Expected payout period						2 years
Earn-out provision						5,000,000
Expense recognized related to contingent earn-out provisions							1,000,000	1,000,000
Goodwill	224,290,000		224,290,000		226,110,000	4,798,000
Acquisition-related expenses	957,000	0	2,229,000	215,000
Termination fee related to pre-existing license arrangement						$ 1,000,000

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Earnings Per Share (Narrative) (Details) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Earnings Per Share [Abstract]
Number of shares excluded from the calculation of diluted earnings per share	455	3,098	875	1,386

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Cash, Cash Equivalents and Investments (Investments with Continuous Unrealized Losses and Their Related Fair Values) (Details) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less Than 12 Months	$ 956	$ 8,425
Unrealized Losses, Less Than 12 Months	(1)	(2)
Fair Value, 12 Months or Greater	26,573	26,793
Unrealized Losses, 12 Months or Greater	(4,077)	(4,355)
Total, Fair Value	27,529	35,218
Total, Unrealized Losses	(4,078)	(4,357)
State and municipal bond obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less Than 12 Months	956	5,818
Unrealized Losses, Less Than 12 Months	(1)	(1)
Fair Value, 12 Months or Greater	0	472
Unrealized Losses, 12 Months or Greater	0	(1)
Total, Fair Value	956	6,290
Total, Unrealized Losses	(1)	(2)
Auction rate securities - municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less Than 12 Months	0	0
Unrealized Losses, Less Than 12 Months	0	0
Fair Value, 12 Months or Greater	23,707	23,420
Unrealized Losses, 12 Months or Greater	(3,443)	(3,755)
Total, Fair Value	23,707	23,420
Total, Unrealized Losses	(3,443)	(3,755)
Auction rate securities - student loans [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less Than 12 Months	0	0
Unrealized Losses, Less Than 12 Months	0	0
Fair Value, 12 Months or Greater	2,866	2,901
Unrealized Losses, 12 Months or Greater	(634)	(599)
Total, Fair Value	2,866	2,901
Total, Unrealized Losses	(634)	(599)
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less Than 12 Months		2,607
Unrealized Losses, Less Than 12 Months		(1)
Fair Value, 12 Months or Greater		0
Unrealized Losses, 12 Months or Greater		0
Total, Fair Value		2,607
Total, Unrealized Losses		$ (1)

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Cash, Cash Equivalents and Investments (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012
Cash, Cash Equivalents and Investments [Line Items]
Investments in auction rate securities	$ 26,573	$ 26,321
Gross unrealized losses	4,078	4,357
Cash and short-term investments balance	241,982	355,217
Auction Rate Securities [Member]
Cash, Cash Equivalents and Investments [Line Items]
Investments in auction rate securities	26,600	26,300
Gross unrealized losses	$ 4,100	$ 4,400

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Cash, Cash Equivalents and Investments (Summary Of Cash, Cash Equivalents And Trading And Available-For-Sale Investments) (Details) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012
Cash, Cash Equivalents and Investments [Line Items]
Amortized Cost Basis	$ 272,496	$ 385,640
Unrealized Gains	137	255
Unrealized Losses	(4,078)	(4,357)
Fair Value	268,555	381,538
Cash [Member]
Cash, Cash Equivalents and Investments [Line Items]
Amortized Cost Basis	156,428	176,201
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	156,428	176,201
Money market funds [Member]
Cash, Cash Equivalents and Investments [Line Items]
Amortized Cost Basis	58,914	125,591
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	58,914	125,591
State and municipal bond obligations [Member]
Cash, Cash Equivalents and Investments [Line Items]
Amortized Cost Basis	26,504	50,565
Unrealized Gains	137	255
Unrealized Losses	(1)	(2)
Fair Value	26,640	50,818
Auction rate securities - municipal bonds [Member]
Cash, Cash Equivalents and Investments [Line Items]
Amortized Cost Basis	27,150	27,175
Unrealized Gains	0	0
Unrealized Losses	(3,443)	(3,755)
Fair Value	23,707	23,420
Auction rate securities - student loans [Member]
Cash, Cash Equivalents and Investments [Line Items]
Amortized Cost Basis	3,500	3,500
Unrealized Gains	0	0
Unrealized Losses	(634)	(599)
Fair Value	2,866	2,901
Corporate bonds [Member]
Cash, Cash Equivalents and Investments [Line Items]
Amortized Cost Basis		2,608
Unrealized Gains		0
Unrealized Losses		(1)
Fair Value		$ 2,607

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Intangible Assets and Goodwill

9 Months Ended

Aug. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Intangible Assets

Intangible assets are comprised of the following significant classes (in thousands):

	August 31, 2013							November 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	44,730	$	(36,117	)	$	8,613	$	42,520	$	(40,066	)	$	2,454
Customer-related and other	19,537		(17,460		)	2,077		26,477		(23,812		)	2,665
Total	$	64,267	$	(53,577	)	$	10,690	$	68,997	$	(63,878	)	$	5,119

As a result of the Rollbase acquisition in the second quarter of fiscal year 2013 (Note 7), we recorded $7.8 million of purchased technology and $0.2 million of customer relationships as intangible assets during the nine months ended August 31, 2013. As of the date of acquisition, the acquired intangible assets have a weighted average amortization period of 4.9 years. This was offset by a decrease in the gross carrying amount of our intangible assets due to the disposition of the Apama product line (Note 6).

In the three and nine months ended August 31, 2013, amortization expense related to intangible assets was $0.7 million and $1.4 million, respectively. In the three and nine months ended August 31, 2012, amortization expense related to intangible assets was $0.3 million and $1.1 million, respectively.

Future amortization expense for intangible assets as of August 31, 2013, is as follows (in thousands):

Remainder of 2013	$	739
2014	2,638
2015	2,409
2016	1,906
2017	1,906
Thereafter	1,092
Total	$	10,690

Goodwill

Changes in the carrying amount of goodwill for the nine months ended August 31, 2013, are as follows (in thousands):

Balance, November 30, 2012	$	226,110
Addition	4,798
Disposal	(6,377		)
Translation adjustments	(241		)
Balance, August 31, 2013	$	224,290

The addition to goodwill during fiscal year 2013 is related to the acquisition of Rollbase (Note 7). The disposal is related to the sale of the Apama product line (Note 6).

During the first quarter of fiscal year 2013, we completed our annual testing for impairment of goodwill and, based on those tests, concluded that no impairment of goodwill existed as of December 15, 2012. During the second quarter of fiscal year 2013, we evaluated the impact of the disposition of the Apama product line, which was part of our single reportable segment, on goodwill and concluded that no impairment existed. Through the date and time our condensed consolidated financial statements were issued, no other trigger events have occurred that would indicate a potential impairment of goodwill exists.

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Restructuring Charges (Summary of Restructuring Activity) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Restructuring Reserve [Roll Forward]
Costs incurred	$ 5,401	$ 1,411	$ 9,127	$ 6,147
2013 Restructuring Activities [Member]
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			0
Costs incurred			6,104
Cash disbursements			(1,040)
Asset impairment			0
Translation adjustments and other			14
Balance at the end of the period	5,078		5,078
2013 Restructuring Activities [Member] | Excess Facilities and Other Costs [Member]
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			0
Costs incurred			388
Cash disbursements			(20)
Asset impairment			0
Translation adjustments and other			0
Balance at the end of the period	368		368
2013 Restructuring Activities [Member] | Employee Severance and Related Benefits [Member]
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			0
Costs incurred			5,716
Cash disbursements			(1,020)
Asset impairment			0
Translation adjustments and other			14
Balance at the end of the period	4,710		4,710
2012 Restructuring Activities [Member]
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			7,032
Costs incurred			4,057
Cash disbursements			(9,212)
Asset impairment			(111)
Translation adjustments and other			22
Balance at the end of the period	1,788		1,788
2012 Restructuring Activities [Member] | Excess Facilities and Other Costs [Member]
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			603
Costs incurred			1,213
Cash disbursements			(668)
Asset impairment			(111)
Translation adjustments and other			(5)
Balance at the end of the period	1,032		1,032
2012 Restructuring Activities [Member] | Employee Severance and Related Benefits [Member]
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			6,429
Costs incurred			2,844
Cash disbursements			(8,544)
Asset impairment			0
Translation adjustments and other			27
Balance at the end of the period	$ 756		$ 756

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Stock-Based Compensation (Tables)

9 Months Ended

Aug. 31, 2013

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

Classification of Stock-Based Compensation

The following table provides the classification of stock-based compensation as reflected in our condensed consolidated statements of income (in thousands):

	Three Months Ended				Nine Months Ended
	August 31, 2013		August 31, 2012		August 31, 2013		August 31, 2012
Cost of software licenses	$	—	$	4	$	—	$	7
Cost of maintenance and services	133		153		500		582
Sales and marketing	748		701		2,668		2,848
Product development	999		861		3,687		2,375
General and administrative	2,720		3,040		7,215		8,246
Stock-based compensation from continuing operations	4,600		4,759		14,070		14,058
Income (loss) from discontinued operations	973		2,985		2,290		7,446
Total stock-based compensation	$	5,573	$	7,744	$	16,360	$	21,504

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Fair Value Measurements (Fair Value Measurements within the Fair Value Hierarchy of the Financial Assets) (Details) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Nov. 30, 2012
Contingent consideration [Member] | Total Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial liabilities	$ 383
Contingent consideration [Member] | Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial liabilities	0
Contingent consideration [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial liabilities	0
Contingent consideration [Member] | Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial liabilities	383
Money market funds [Member] | Total Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	58,914	125,591
Money market funds [Member] | Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	58,914	125,591
Money market funds [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	0	0
Money market funds [Member] | Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	0	0
State and municipal bond obligations [Member] | Total Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	26,640	50,818
State and municipal bond obligations [Member] | Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	0	0
State and municipal bond obligations [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	26,640	50,818
State and municipal bond obligations [Member] | Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	0	0
Auction rate securities - municipal bonds [Member] | Total Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	23,707	23,420
Auction rate securities - municipal bonds [Member] | Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	0	0
Auction rate securities - municipal bonds [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	0	0
Auction rate securities - municipal bonds [Member] | Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	23,707	23,420
Auction rate securities - student loans [Member] | Total Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	2,866	2,901
Auction rate securities - student loans [Member] | Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	0	0
Auction rate securities - student loans [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	0	0
Auction rate securities - student loans [Member] | Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	2,866	2,901
Corporate bonds [Member] | Total Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets		2,607
Corporate bonds [Member] | Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets		0
Corporate bonds [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets		2,607
Corporate bonds [Member] | Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets		0
Foreign exchange contract [Member] | Total Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	(87)	(186)
Foreign exchange contract [Member] | Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	0	0
Foreign exchange contract [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	(87)	(186)
Foreign exchange contract [Member] | Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of financial assets	$ 0	$ 0

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Line of Credit

9 Months Ended

Aug. 31, 2013

Line of Credit Facility [Abstract]

Line of Credit

Line of Credit

Our credit facility provides for a revolving line of credit in the amount of $150.0 million, with a sublimit for the issuance of standby letters of credit in a face amount up to $25.0 million and swing line loans up to $20.0 million. The credit facility also permits us to increase the revolving line of credit by up to an additional $75.0 million subject to receiving further commitments from lenders and certain other conditions. As of August 31, 2013, there were no amounts outstanding under the revolving line and $0.4 million of letters of credit.

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Fair Value Measurements

9 Months Ended

Aug. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Recurring Fair Value Measurements

The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at August 31, 2013 (in thousands):

				Fair Value Measurements Using
	Total Fair Value			Level 1		Level 2			Level 3
Assets
Money market funds	$	58,914		$	58,914	$	—		$	—
State and municipal bond obligations	26,640			—		26,640			—
Auction rate securities – municipal bonds	23,707			—		—			23,707
Auction rate securities – student loans	2,866			—		—			2,866
Foreign exchange derivatives	(87		)	—		(87		)	—
Liabilities
Contingent consideration	$	383		$	—	$	—		$	383

The following table details the fair value measurements within the fair value hierarchy of our financial assets at November 30, 2012 (in thousands):

				Fair Value Measurements Using
	Total Fair Value			Level 1		Level 2			Level 3
Money market funds	$	125,591		$	125,591	$	—		$	—
State and municipal bond obligations	50,818			—		50,818			—
Auction rate securities – municipal bonds	23,420			—		—			23,420
Auction rate securities – student loans	2,901			—		—			2,901
Corporate bonds	2,607			—		2,607			—
Foreign exchange derivatives	(186		)	—		(186		)	—

When developing fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices to measure fair value. The valuation technique used to measure fair value for our Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument.

The valuation technique used to measure fair value for our Level 3 assets, which consists of our ARS, is primarily an income approach, where the expected weighted average future cash flows are discounted back to present value for each asset. The significant unobservable inputs used in the fair value measurement of our ARS are the probability of earning the maximum rate until maturity, the probability of principal return prior to maturity, the probability of default, the liquidity risk premium and the recovery rate in default. Generally, interrelationships are such that a change in the assumptions used for the probability of principal return prior to maturity is accompanied by a directionally opposite change in one or more the following assumptions: the probability of earning the maximum rate until maturity, the probability of default and the liquidity risk premium. The recovery rate in default is somewhat independent and based upon the ARS' specific underlying assets and published recovery rate studies.

One issuer of our ARS is currently in default, but the underlying bond insurer is making interest payments on the issuer's behalf. In this situation, we used a market approach, where the significant unobservable inputs are the market credit default swap spread and the credit rating of the insurer.

The following table provides additional quantitative information about the unobservable inputs used in our Level 3 asset valuations as of August 31, 2013:

	Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	Discounted cash flow	Probability of earning the maximum rate until maturity	0.2% - 9.9% (1.7%)
		Probability of principal return prior to maturity	75.7% - 95.1% (87.0%)
		Probability of default	4.1% - 24.1% (11.3%)
		Liquidity risk premium	4.0%
		Recovery rate in default	50% - 70% (56.5%)
	Market valuation	Market credit default swap spread of insurer	4.05%
		Credit rating of insurer	AA-

Significant increases or decreases in the underlying assumptions used to value the ARS could significantly increase or decrease the fair value estimates recorded in the consolidated balance sheets.

The following table reflects the activity for our financial assets measured at fair value using Level 3 inputs for each period presented (in thousands):

	Three Months Ended					Nine Months Ended
	August 31, 2013		August 31, 2012			August 31, 2013			August 31, 2012
Balance, beginning of period	$	26,500	$	31,448		$	26,321		$	33,539
Redemptions and repurchases	—		—			(25		)	(225		)
Transfer to Level 2 fair value measurement	—		—			—			(2,700		)
Unrealized gains (losses) included in accumulated other comprehensive loss	73		(163		)	277			671
Balance, end of period	$	26,573	$	31,285		$	26,573		$	31,285

During the second quarter of fiscal year 2012, we received a redemption notice for one of our ARS at par value. We transferred the ARS to a Level 2 fair value measurement, as the value at May 31, 2012 was based on observable inputs. The ARS was redeemed in the third quarter of fiscal year 2012.

We have classified contingent consideration related to the Rollbase, Inc. acquisition (Rollbase), which occurred in the second quarter of fiscal year 2013 (Note 7), within Level 3 of the fair value hierarchy because the fair value is derived using significant unobservable inputs, which include discount rates and probability-weighted cash flows. We determined the fair value of our contingent consideration obligations based on a probability-weighted income approach derived from probability assessments of the attainment of certain milestones. We establish discount rates to be utilized in our valuation models based on the cost to borrow that would be required by a market participant for similar instruments. In determining the probability of attaining certain milestones, we utilize data regarding similar milestone events from our own experience. On a quarterly basis, we reassess the probability factors associated with the milestones for our contingent consideration obligations. Significant judgment is employed in determining the appropriateness of these key assumptions as of the acquisition date and for each subsequent period.

The key assumptions as of August 31, 2013 related to the contingent consideration for the acquisition of Rollbase used in the model are probabilities in excess of 95% that the milestones associated with the contingent consideration will be achieved and a discount rate of 4.8%. A decrease in the probabilities of achievement could result in a significant decrease to the estimated fair value of the contingent consideration liability. During the three and nine months ended August 31, 2013, the change in the fair value of the liability was minimal.

Nonrecurring Fair Value Measurements

The following table details our nonrecurring fair value measurements at November 30, 2012 (in thousands):

			Fair Value Measurements Using
	Total Fair Value		Level 1		Level 2		Level 3		Total Losses
Disposal group	$	16,487	$	—	$	16,487	$	—	$	8,601

The disposal group included the assets and liabilities held for sale of the Artix, Orbacus and Orbix product lines, which had a fair value of $16.5 million as of November 30, 2012. The carrying value at November 30, 2012 of $25.1 million was written down to fair value, less costs to sell, resulting in a loss of $8.6 million. The loss was recorded in income (loss) from discontinued operations in fiscal year 2012. The assets and liabilities held for sale were divested in the first quarter of fiscal year 2013 (Note 6).

We evaluate all of our assets held for sale using undiscounted cash flow models or other valuation models, such as comparative transactions and market multiples, to determine their fair values. However, a market approach was more heavily used to value the assets held for sale related to the divestitures of our non-core product lines. As bid and transaction values became apparent as we moved through the marketing and divestiture process, the fair values of the assets held for sale were established. The impairment loss recorded for the Artix, Orbacus and Orbix product lines was primarily based on our expectations of a sale price as compared to our estimation of the net assets to be sold at closing.

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Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012
Cash flows from operating activities:
Net income	$ 59,871	$ 11,419
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	8,402	6,990
Amortization of acquired intangibles and other	2,972	18,379
Stock-based compensation	16,360	21,504
Gain on dispositions	(70,991)	0
Asset impairment	111	875
Deferred income taxes	2,179	888
Tax (deficiency) benefit from stock plans	(532)	563
Excess tax benefit from stock plans	(1,188)	(1,338)
Allowances for accounts receivable	(123)	774
Changes in operating assets and liabilities:
Accounts receivable	19,967	30,250
Other assets	(5,690)	(5,412)
Accounts payable and accrued liabilities	(17,416)	4,201
Income taxes payable and uncertain tax positions	(22,762)	(2,760)
Deferred revenue	(4,439)	(10,619)
Net cash flows (used in) from operating activities	(13,279)	75,714
Cash flows from investing activities:
Purchases of investments	0	(27,924)
Sales and maturities of investments	25,685	70,185
Redemptions and sales of auction rate securities	25	2,925
Purchases of property and equipment	(2,989)	(6,606)
Payments for acquisitions, net of cash acquired	(9,450)	0
Proceeds from divestitures, net	111,120	0
Increase in other noncurrent assets	835	247
Net cash flows from investing activities	125,226	38,827
Cash flows from financing activities:
Proceeds from stock-based compensation plans	49,109	24,284
Purchases of common stock related to withholding taxes from the issuance of restricted stock units	(2,823)	(2,681)
Repurchases of common stock	(241,184)	0
Excess tax benefit from stock plans	1,188	1,338
Payment of long-term debt	0	(357)
Net cash flows (used in) from financing activities	(193,710)	22,584
Effect of exchange rate changes on cash	(4,687)	(3,822)
Net (decrease) increase in cash and cash equivalents	(86,450)	133,303
Cash and cash equivalents, beginning of period	301,792	161,095
Cash and cash equivalents, end of period	215,342	294,398
Supplemental disclosure:
Cash paid for income taxes, net of refunds of $4,324 in 2013 and $632 in 2012	66,596	13,912
Non-cash financing activities:
Total fair value of restricted stock awards, restricted stock units and deferred stock units on date vested	9,890	8,669
Unsettled repurchases of common stock	$ 3,301	$ 0

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Divestitures (Income (Loss) from Discontinued Operations) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Discontinued Operations and Disposal Groups [Abstract]
Revenue	$ 537	$ 37,610	$ 16,143	$ 120,033
Income (loss) before income taxes	(6,221)	(979)	(9,338)	(30,697)
Income tax (benefit) provision	(1,790)	927	(2,223)	(9,656)
Gain on sale, net of tax	22,070	0	41,827	0
Income (loss) from discontinued operations, net	$ 17,639	$ (1,906)	$ 34,712	$ (21,041)

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Intangible Assets and Goodwill (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended
	May 24, 2013	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, weighted average useful life	4 years 10 months 24 days
Intangible assets, amortization expense		$ 700,000	$ 300,000	$ 1,400,000	$ 1,100,000
Goodwill impairment loss				0
Purchased Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible asset, amount		7,800,000		7,800,000
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible asset, amount		$ 200,000		$ 200,000

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Earnings Per Share (Tables)

9 Months Ended

Aug. 31, 2013

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Earnings Per Share

The following table sets forth the calculation of basic and diluted earnings per share from continuing operations on an interim basis (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	August 31, 2013		August 31, 2012		August 31, 2013		August 31, 2012
Income from continuing operations	$	7,204	$	7,744	$	25,159	$	32,460
Weighted average shares outstanding	53,532		63,469		55,451		62,888
Dilutive impact from common stock equivalents	857		636		841		907
Diluted weighted average shares outstanding	54,389		64,105		56,292		63,795
Basic earnings per share from continuing operations	$	0.13	$	0.12	$	0.45	$	0.52
Diluted earnings per share from continuing operations	$	0.13	$	0.12	$	0.45	$	0.51

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Stock-Based Compensation (Classification of Stock-Based Compensation) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 5,573	$ 7,744	$ 16,360	$ 21,504
Cost of software licenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	0	4	0	7
Cost of maintenance and services [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	133	153	500	582
Sales and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	748	701	2,668	2,848
Product development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	999	861	3,687	2,375
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2,720	3,040	7,215	8,246
Stock-based compensation from continuing operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	4,600	4,759	14,070	14,058
Income (loss) from discontinued operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 973	$ 2,985	$ 2,290	$ 7,446

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Accumulated Other Comprehensive Loss

9 Months Ended

Aug. 31, 2013

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The following table summarizes the changes in accumulated balances of other comprehensive loss during the nine months ended August 31, 2013 (in thousands):

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on investments			Accumulated Other Comprehensive Loss
Balance, December 1, 2012	$	(8,183	)	$	(2,581	)	$	(10,764	)
Other comprehensive income (loss) before reclassifications, net of tax	(4,010		)	98			(3,912		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—
Balance, August 31, 2013	$	(12,193	)	$	(2,483	)	$	(14,676	)

The tax effect on accumulated unrealized losses on investments was $1.4 million and $1.5 million as of August 31, 2013 and November 30, 2012, respectively.

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Business Combinations

9 Months Ended

Aug. 31, 2013

Business Combinations [Abstract]

Business Combinations

Business Combinations

On May 24, 2013, we acquired 100% of the equity interests in Rollbase, Inc. (Rollbase), a privately held software vendor based in Saratoga, California, for $9.9 million. The purchase consideration consisted of $9.5 million in cash paid and $0.4 million of contingent consideration, expected to be paid out over a two year period. The fair value of the contingent consideration was estimated to be $0.4 million at the date of acquisition. Rollbase provides Application Platform-as-a-Service (aPaas) technology that allows the rapid design, development and deployment of on-demand business applications. The purpose of the acquisition was to further the Plan in which we intend to become a leading provider of a next-generation, context-aware application development and deployment platform in the Cloud for the aPaas market. The acquisition was accounted for as a business combination, and accordingly, the results of operations of Rollbase are included in our operating results from the date of acquisition. We paid the purchase price in cash from available funds.

The allocation of the purchase price is as follows (in thousands):

	Total			Life
Cash	$	50
Acquired intangible assets	7,960			1 to 5 years
Goodwill	4,798
Deferred taxes	(2,921		)
Accounts payable and other liabilities	(8		)
Net assets acquired	$	9,879

The purchase consideration includes contingent consideration payable by the Company based on the achievement of certain milestones. The Company determined the fair value of the contingent consideration obligations by calculating the probability-weighted earn-out payments based on the assessment of the likelihood that the milestones will be achieved. The probability-weighted earn-out payments were then discounted using a discount rate commensurate with the credit risk of the Company. During the three and nine months ended August 31, 2013, the change in the fair value of the contingent consideration payable was minimal.

The stock purchase agreement included contingent earn-out provisions requiring the Company to make payments to former Rollbase owners now employed by the Company. We have concluded that the earn-out provisions for the individuals now employed by the Company, which total approximately $5.0 million, are compensation arrangements and we will accrue the maximum payouts ratably over the two year performance period, as we believe it is probable that the criteria will be met. We have incurred $1.0 million of expense related to the contingent earn-out provisions for the three and nine months ended August 31, 2013. These amounts are recorded as acquisition-related expenses in our consolidated statement of operations.

We recorded the excess of the purchase price over the identified tangible and intangible assets as goodwill. We believe that the investment value of the future enhancement of our product and solution offerings created as a result of this acquisition has principally contributed to a purchase price that resulted in the recognition of $4.8 million of goodwill, which is not deductible for tax purposes. The allocation of the purchase price was completed in the third quarter of fiscal year 2013 upon the finalization of our valuation of identifiable intangible assets and acquired deferred tax liabilities.

We incurred $1.0 million and $2.2 million of acquisition-related costs which are included in acquisition-related expenses in our consolidated statement of operations for the three and nine months ended August 31, 2013, respectively. The acquisition-related expenses for the nine months ended August 31, 2013 includes a $1.0 million termination fee related to a pre-existing license arrangement between Rollbase and another third-party.

We have not disclosed the amount of revenues and earnings of Rollbase since acquisition, nor pro forma financial information, as those amounts are not significant to our condensed consolidated financial statements.

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Earnings Per Share

9 Months Ended

Aug. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units and deferred stock units, using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share from continuing operations on an interim basis (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	August 31, 2013		August 31, 2012		August 31, 2013		August 31, 2012
Income from continuing operations	$	7,204	$	7,744	$	25,159	$	32,460
Weighted average shares outstanding	53,532		63,469		55,451		62,888
Dilutive impact from common stock equivalents	857		636		841		907
Diluted weighted average shares outstanding	54,389		64,105		56,292		63,795
Basic earnings per share from continuing operations	$	0.13	$	0.12	$	0.45	$	0.52
Diluted earnings per share from continuing operations	$	0.13	$	0.12	$	0.45	$	0.51

We excluded stock awards representing approximately 455,000 shares, 875,000 shares, 3,098,000 shares and 1,386,000 shares of common stock from the calculation of diluted earnings per share in the three and nine months ended August 31, 2013 and 2012, respectively, because these awards were anti-dilutive.

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Restructuring Charges

9 Months Ended

Aug. 31, 2013

Restructuring Charges [Abstract]

Restructuring Charges

Restructuring Charges

2013 Restructuring

During the third quarter of fiscal year 2013, our management approved, committed to and initiated plans to restructure and improve efficiencies in our operations as a result of the sale of the Apama product line and the divestitures completed during the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013. We reduced our global workforce primarily within the administrative and sales organizations. This workforce reduction was conducted across all geographies and also resulted in the closing of certain facilities.

Restructuring expenses primarily relate to employee costs, including severance, health benefits, outplacement services and transition divestiture arrangements, but excluding stock-based compensation. Facilities costs include fees to terminate lease agreements and costs for unused space, net of sublease assumptions. Other costs include costs to terminate automobile leases of employees included in the workforce reduction, asset impairment charges for assets no longer deployed as part of cost reduction strategies, costs for unused software licenses as part of the workforce reduction and other costs directly associated with the restructuring actions taken.

As part of the 2013 restructuring, for the three and nine months ended August 31, 2013, we incurred expenses totaling $6.1 million, of which $0.4 million represents excess facilities and other costs and $5.7 million represents employee severance and related benefits. The expenses are recorded as restructuring expenses in the condensed consolidated statements of income, with the exception of $0.4 million included in income (loss) from discontinued operations for the three and nine months ended August 31, 2013. We expect to incur additional costs with respect to the 2013 restructuring through the remainder of fiscal year 2013. The total cost of the 2013 restructuring is expected to be approximately $1.3 million for excess facilities and other costs and approximately $6.5 million for employee severance and related benefits. The estimated costs not yet recorded in the condensed consolidated statement of income relate to excess facilities costs, net of sublease assumptions, and employee severance-related costs.

A summary of activity for the 2013 restructuring action is as follows (in thousands):

	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	—		$	—		$	—
Costs incurred	388			5,716			6,104
Cash disbursements	(20		)	(1,020		)	(1,040		)
Asset impairment	—			—			—
Translation adjustments and other	—			14			14
Balance, August 31, 2013	$	368		$	4,710		$	5,078

Cash disbursements for expenses incurred to date under the 2013 restructuring are expected to be made through the first quarter of fiscal year 2014. The restructuring reserve of $5.1 million is included in other accrued liabilities on the condensed consolidated balance sheet at August 31, 2013.

2012 Restructuring

In the second quarter of fiscal year 2012, our management approved, committed to and initiated certain operational restructuring initiatives to reduce annual costs, including the simplification of our organizational structure and the consolidation of facilities. In addition, as part of the Plan, we have divested the product lines not considered core to our business. Our restructuring actions include both our cost reduction efforts and qualifying costs associated with our divestitures.

As part of the 2012 restructuring, for the nine months ended August 31, 2013, we incurred expenses totaling $4.0 million, of which $1.2 million represents excess facilities and other costs and $2.8 million represents employee severance and related benefits. The expenses are recorded as restructuring expenses in the condensed consolidated statements of income, with the exception of $0.6 million included in income (loss) from discontinued operations for the nine months ended August 31, 2013. Cumulative expenses of the 2012 restructuring through the first nine months of fiscal year 2013 are $23.1 million, of which $3.9 million represents excess facilities and other costs and $19.2 million represents employee severance and related benefits. We do not expect to incur additional material costs with respect to the 2012 restructuring.

A summary of activity for the 2012 restructuring action during the nine months ended August 31, 2013, is as follows (in thousands):

	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	603		$	6,429		$	7,032
Costs incurred	1,213			2,844			4,057
Cash disbursements	(668		)	(8,544		)	(9,212		)
Asset impairment	(111		)	—			(111		)
Translation adjustments and other	(5		)	27			22
Balance, August 31, 2013	$	1,032		$	756		$	1,788

Cash disbursements under the 2012 restructuring are expected to be made through fiscal year 2016. The short-term portion of the restructuring reserve of $1.6 million is included in other accrued liabilities and the long-term portion of $0.2 million is included in other noncurrent liabilities on the condensed consolidated balance sheet at August 31, 2013.

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Document And Entity Information	9 Months Ended
	Aug. 31, 2013	Oct. 02, 2013
Document And Entity Information [Abstract]
Entity Registrant Name	PROGRESS SOFTWARE CORP /MA
Entity Central Index Key	0000876167
Document Type	10-Q
Document Period End Date	Aug. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--11-30
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		51,917,408

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Income Taxes

9 Months Ended

Aug. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our income tax provision for the third quarter of fiscal year 2013 and 2012 reflects our estimates of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events which are recorded in the period they occur. The estimates are reevaluated each quarter based on our estimated tax expense for the full fiscal year.

The research and development credit was retroactively reinstated in January 2013. As a result, in the first quarter of fiscal year 2013 we recorded a tax benefit of $0.4 million related to qualifying research and development activities for the period from January 2012 to November 2012.

The Internal Revenue Service finalized its examination of our U.S. Federal income tax returns for fiscal years 2009 and 2010 during the second quarter of fiscal year 2013. In the first quarter of fiscal year 2013, we had effectively settled certain unrecognized tax benefits which had been reserved in previous periods, reducing our unrecognized tax benefits liability by $1.2 million.

Our Federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2011, and we are no longer subject to audit for those periods. State taxing authorities are currently examining our income tax returns for years through fiscal year 2010. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2005, and we are no longer subject to audit for those periods.

Tax authorities for certain non-U.S. jurisdictions are also examining returns affecting unrecognized tax benefits, none of which are material to our condensed consolidated balance sheets, cash flows or statements of income. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2007.

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Restructuring Charges (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended				3 Months Ended	9 Months Ended			9 Months Ended			9 Months Ended		9 Months Ended			9 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013 2013 Restructuring Activities [Member]	Nov. 30, 2012 2013 Restructuring Activities [Member]	Aug. 31, 2013 2013 Restructuring Activities [Member] Income (loss) from discontinued operations [Member]	Aug. 31, 2013 2013 Restructuring Activities [Member] Income (loss) from discontinued operations [Member]	Aug. 31, 2013 2013 Restructuring Activities [Member] Excess Facilities and Other Costs [Member]	Nov. 30, 2012 2013 Restructuring Activities [Member] Excess Facilities and Other Costs [Member]	Aug. 31, 2013 2013 Restructuring Activities [Member] Employee Severance and Related Benefits [Member]	Nov. 30, 2012 2013 Restructuring Activities [Member] Employee Severance and Related Benefits [Member]	Aug. 31, 2013 2013 Restructuring Activities [Member] Other accrued liabilities [Member]	Aug. 31, 2013 2012 Restructuring Activities [Member]	Nov. 30, 2012 2012 Restructuring Activities [Member]	Aug. 31, 2013 2012 Restructuring Activities [Member] Income (loss) from discontinued operations [Member]	Aug. 31, 2013 2012 Restructuring Activities [Member] Excess Facilities and Other Costs [Member]	Nov. 30, 2012 2012 Restructuring Activities [Member] Excess Facilities and Other Costs [Member]	Aug. 31, 2013 2012 Restructuring Activities [Member] Employee Severance and Related Benefits [Member]	Nov. 30, 2012 2012 Restructuring Activities [Member] Employee Severance and Related Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 5,401,000	$ 1,411,000	$ 9,127,000	$ 6,147,000	$ 6,104,000		$ 400,000	$ 400,000	$ 388,000		$ 5,716,000			$ 4,057,000		$ 600,000	$ 1,213,000		$ 2,844,000
Expected restructuring costs									1,300,000		6,500,000
Restructuring reserve					5,078,000	0			368,000	0	4,710,000	0	5,100,000	1,788,000	7,032,000		1,032,000	603,000	756,000	6,429,000
Restructuring cumulative expenses														23,100,000			3,900,000		19,200,000
Short-term restructuring reserves														1,600,000
Long-term restructuring reserves														$ 200,000

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Accumulated Other Comprehensive Loss (Details) (USD $)	9 Months Ended
	Aug. 31, 2013	Nov. 30, 2012
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 1, 2012	$ (10,764,000)
Other comprehensive income (loss) before reclassification, net of tax	(3,912,000)
Amounts reclassified from accumulated other comprehensive income	0
Balance, August 31, 2013	(14,676,000)
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 1, 2012	(8,183,000)
Other comprehensive income (loss) before reclassification, net of tax	(4,010,000)
Amounts reclassified from accumulated other comprehensive income	0
Balance, August 31, 2013	(12,193,000)
Unrealized Gains (Losses) on Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 1, 2012	(2,581,000)
Other comprehensive income (loss) before reclassification, net of tax	98,000
Amounts reclassified from accumulated other comprehensive income	0
Balance, August 31, 2013	(2,483,000)
Tax effect on accumulated unrealized losses on investments	$ 1,400,000	$ 1,500,000