10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

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

For the fiscal year ended October 31, 2015

OR

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

For the transition period from                      to                     

Commission File Number 0-19807

SYNOPSYS, INC.

(Exact name of registrant as specified in its charter)

Delaware	56-1546236
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

690 East Middlefield Road, Mountain View, California 94043

(Address of principal executive offices, including zip code)

(650) 584-5000

(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	NASDAQ Global Select Market

Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ý    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  ý

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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ý

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 definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  x	Accelerated filer  ¨	Non-accelerated filer  ¨	Smaller Reporting Company  ¨
		(Do not check if a smaller reporting company)

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

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold as of the last business day of the registrant’s most recently completed second fiscal quarter was approximately $5.0 billion. Aggregate market value excludes an aggregate of approximately 56.9 million shares of common stock held by the registrant’s executive officers and directors and by each person known by the registrant to own 5% or more of the outstanding common stock on such date. Exclusion of shares held by any of these persons should not be construed to indicate that such person possesses the power, direct or indirect, to direct or cause the direction of the management or policies of the registrant, or that such person is controlled by or under common control with the registrant.

On December 10, 2015, 151,452,864 shares of the registrant’s Common Stock, $0.01 par value, were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Proxy Statement relating to the registrant’s 2016 Annual Meeting of Stockholders, scheduled to be held on March 29, 2016, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Except as expressly incorporated by reference, the registrant’s Proxy Statement shall not be deemed to be part of this report.

SYNOPSYS, INC.

ANNUAL REPORT ON FORM 10-K

Fiscal year ended October 31, 2015

TABLE OF CONTENTS

		Page No.
PART I
Item 1.	Business	2
Item 1A.	Risk Factors	11
Item 1B.	Unresolved Staff Comments	20
Item 2.	Properties	20
Item 3.	Legal Proceedings	21
Item 4.	Mine Safety Disclosures	22
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	23
Item 6.	Selected Financial Data	26
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 8.	Financial Statements and Supplementary Data	45
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	80
Item 9A.	Controls and Procedures	80
Item 9B.	Other Information	81
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	82
Item 11.	Executive Compensation	82
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	82
Item 13.	Certain Relationships and Related Transactions and Director Independence	82
Item 14.	Principal Accountant Fees and Services	82
PART IV
Item 15.	Exhibits and Financial Statement Schedules	83
SIGNATURES		87

i

Cautionary Note Regarding Forward-Looking Statements

This Annual Report on Form 10-K (this Form 10-K or Annual Report) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which are subject to the “safe harbor” created by those sections. Any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,” “project” or “continue” and the negatives of such terms are intended to identify forward-looking statements. This Form 10-K includes, among others, forward-looking statements regarding our expectations about:

• our business, product and platform strategies;

• our business outlook;

• the continuation of current industry trends towards customer and vendor consolidation, and the impact of such consolidation;

• prior and future acquisitions, including the expected benefits of completed acquisitions;

• the impact of macroeconomic conditions on our business and our customers’ businesses;

• demand for our products and our customers’ products;

• customer license renewals;

• the completion of development of our unfinished products, or further development or integration of our existing products;

• technological trends in integrated circuit design;

• our ability to successfully compete in the electronic design automation industry;

• our license mix, our business model, and variability in our revenue;

• litigation;

• our ability to protect our intellectual property rights;

• the potential impact of the unauthorized third-party access to our customer-facing license and product delivery system that began in July 2015;

• our cash, cash equivalents and cash generated from operations;

• our available-for-sale securities; and

• our future liquidity requirements.

These statements involve certain known and unknown risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in our forward-looking statements. Accordingly, we caution readers not to place undue reliance on these statements. Such risks and uncertainties include, among others, those listed in Part I, Item 1A, Risk Factors of this Form 10-K. The information included herein represents our estimates and assumptions as of the date of this filing. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. All subsequent written or oral forward-looking statements attributable to Synopsys, Inc. or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Readers are urged to carefully review and consider the various disclosures made in this report and in other documents we file from time to time with the Securities and Exchange Commission (SEC) that attempt to advise interested parties of the risks and factors that may affect our business.

Fiscal Year End

Our fiscal year ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, we have a 53-week year. Fiscal 2015, 2014, and 2013 were 52-week years ending on October 31, 2015, November 1, 2014, and November 2, 2013, respectively.

For presentation purposes, this Form 10-K refers to the closest calendar month end.

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PART I

 Item 1.     Business

Company Overview

Synopsys, Inc. provides software, intellectual property, and services used by designers along the entire silicon to software spectrum, from engineers creating advanced semiconductors to software developers seeking to ensure the quality and security of their applications. We are a global leader in supplying the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. We also offer intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. We provide software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. To complement these offerings, which are sold primarily to semiconductor and electronics companies, we provide technical services to support our solutions and help our customers develop chips and electronic systems. We are also a leading provider of software tools that developers use to improve the quality and security of software code in a wide variety of industries, including electronics, financial services, energy, and industrials.

Corporate Information

We incorporated in 1986 in North Carolina and reincorporated in Delaware in 1987. Our headquarters are located at 690 East Middlefield Road, Mountain View, California 94043, and our telephone number there is (650) 584-5000. We have approximately 110 offices worldwide.

Our annual and quarterly reports on Forms 10-K and 10-Q (including related filings in XBRL format), current reports on Form 8-K, and Proxy Statements relating to our annual meetings of stockholders, including any amendments to these reports, as well as filings made by our executive officers and directors, are available through the Investor Relations page of our Internet website (www.synopsys.com) free of charge as soon as practicable after we file them with, or furnish them to, the SEC (www.sec.gov). We use our Investor Relations page as a routine channel for distribution of important information, including news releases, analyst presentations, and financial information. The contents of our website are not part of this Form 10-K.

Background—From Silicon to Software

Recent years have seen a remarkable proliferation of consumer and wireless electronic products, particularly mobile devices. The growth of the Internet and cloud computing has provided people with new ways to create, store and share information. At the same time, the increasing use of electronics in cars, buildings, and appliances and other consumer products is creating a connected landscape of “smart” devices. Many thousands of software applications–“apps”–have been developed to expand the possibilities of these connected devices.

These developments have been fueled by innovation in the semiconductor and software industries. It is common for a single chip to combine many components (processor, communications, memory, custom logic, input/output) and embedded software into a single System-on-Chip (SoC), necessitating highly complex chip designs. The most complex chips today contain more than a billion transistors, the basic building blocks for integrated circuits, each of which may have features that are less than 1/1,000th the diameter of a human hair. At such small dimensions, the wavelength of light itself can become an obstacle to production, proving too big to create such dense features and requiring creative and complicated new approaches from designers. Designers have turned to new manufacturing techniques, such as multiple-patterning lithography and FinFET transistors, which in turn have introduced new challenges in design and production.

In addition to this increasing complexity, due to the popularity of mobile devices and other electronic products, there is increasing demand for integrated circuits and systems with greater functionality and performance, reduced size, and less power consumption. The designers of these products–our customers–are facing intense pressure to deliver innovative products at ever shorter times-to-market, as well as at lower prices. In other words, innovation in chip and system design often hinges on “better,” “sooner,” and “cheaper.”

A similar dynamic is at work in the software industry, where the pace of innovation often requires developers–our customers–to deliver high-quality software, which can include millions of lines of code, in increasingly frequent release cycles. Bugs, defects, and security vulnerabilities in code can be difficult to detect and expensive to fix. But at a time when software is prevalent in many industries and an increasing array of smart devices, it can be crucial to do so.

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Our Role

Synopsys’ products support innovators in these industries, from silicon to software, helping them to meet their design and time-to-market challenges. We provide software tools, IP, hardware systems and other technologies that designers use to create chips and systems. We also provide software tools that software developers use to detect critical flaws in their code.

The task of the chip and system designer is to determine how best to locate and connect the building blocks of chips, verifying that the resulting design behaves as intended and ensuring that the design can be manufactured efficiently and cost-effectively. This task is a complicated, multi-step process that is both expensive and time-consuming. We offer a wide range of products that help designers at different steps in the overall design process, both for the design of individual integrated circuits and for the design of larger systems. Our products can increase designer productivity and efficiency by automating tasks, keeping track of large amounts of design data, adding intelligence to the design process, facilitating reuse of past designs and reducing errors. Our IP products offer proven, high-quality pre-configured circuits that are ready-to-use in a chip design, saving customers time and enabling them to direct resources to features that differentiate their products. Our global service and support engineers also provide expert technical support and design assistance to our customers.

The task of the software developer is to write code that not only accomplishes the developer's goal as efficiently as possible but also runs securely and free of errors. We offer products that can help developers write better, more secure code by analyzing their code for quality defects and security vulnerabilities, adding intelligence and automation to the software testing process, and helping to eliminate quality and security defects in a systematic manner. To the extent developers make use of third-party components in their code, our products can help developers better manage its composition and security. Our products can enable software developers to catch flaws earlier in the development cycle, when they can be less costly to fix.

Products and Services

Revenue from our products and services is categorized into four groups:

• Core EDA, which includes our digital and custom integrated circuit (IC) design software, our verification products, and our field-programmable gate array (FPGA) design software;

• IP, Systems and Software Integrity (previously referred to as IP and Software Solutions), which includes our DesignWare® IP portfolio, our system-level design products, and our software quality and security testing solutions;

• Manufacturing Solutions; and

• Professional Services and Other.

Core EDA

The process of designing integrated circuits contains many complex steps: architecture definition, register transfer level (RTL) design, functional/RTL verification, logic design or synthesis, gate-level verification, floorplanning, and place and route, to name just a few. Designers use our Core EDA products to automate the integrated circuit design process and to reduce errors. We offer a large number of Core EDA products intended to address the process comprehensively. Our Core EDA products generally fall into the following categories:

• Digital and Custom IC Design, which includes software tools to design an integrated circuit;

• Verification, which includes technology to verify that an integrated circuit design behaves as intended; and

• FPGA Design, which includes software tools to design FPGAs, a complex, configurable form of integrated circuit.

Digital and Custom IC Design

Our Galaxy™ Design Platform provides our customers with a single, integrated chip design solution that includes industry-leading individual products and incorporates common libraries and consistent timing, delay calculation and constraints throughout the design process. The platform allows designers the flexibility to integrate internally developed and third-party tools. With this advanced functionality, common foundation and flexibility, our Galaxy Design Platform helps reduce design times, decrease integration costs and minimize the risks inherent in advanced, complex integrated circuit designs. Our products span digital, custom and analog/mixed-signal designs.

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Our principal design products, available as part of the Galaxy Design Platform or as individual point tools, are our IC Compiler™ and IC Compiler II physical design solutions, Design Compiler® logic synthesis product, Galaxy Custom Designer® and Laker® Layout custom design solutions, PrimeTime® timing analysis products, StarRC™ product for extraction, and IC Validator tool for physical verification.

Verification

Our Verification Continuum™ platform is built from our industry-leading and fastest verification technologies, providing virtual prototyping, static and formal verification, simulation, emulation, FPGA-based prototyping, and debug in a unified environment with verification IP and planning and coverage technology. By providing a consistent model and debug environment across a designer’s flow of verification tasks and enabling seamless transitions between simulation, emulation, and prototyping, the platform helps our customers accelerate software development and time-to-market for their advanced SoCs.

The individual products included in Verification Continuum span both our Core EDA and IP, Systems and Software Integrity categories. The solutions reported in Core EDA revenue include the following:

• Our Verification Compiler™ solution, which is a complete portfolio of integrated, next-generation verification technologies that include advanced debug (our Verdi® solution), simulation (our VCS® comprehensive RTL verification technology), static and formal verification technology, verification IP, and planning and coverage technology. In addition to their inclusion in our Verification Compiler solution, these verification technologies also continue to be sold as individual point tools.

• Our ZeBu® emulation systems, which use high-performance hardware to emulate SoC designs so that designers can accelerate verification of large complex SoCs and perform earlier verification of the SoC together with software.

• Our other principal individual verification solutions, including CustomSim™ FastSPICE and FineSim® SPICE/FastSPICE circuit simulation and analysis products, HSPICE® circuit simulator, Spyglass® static verification products (acquired as part of our acquisition of Atrenta Inc. in fiscal 2015), and CustomExplorer™ Ultra mixed-signal regression and analysis environment.

The virtual prototyping and FPGA-based prototyping solutions that are part of our Verification Continuum platform are included in our IP, Systems and Software Integrity category.

FPGA Design

FPGAs are complex chips that can be customized or programmed to perform a specific function after they are manufactured. For FPGA design, we offer Synplify® Pro and Premier implementation and Identify® debug software tools.

IP, Systems and Software Integrity

IP Products

As more functionality converges into a single device or even a single chip, and chip designs grow more complex, the number of third-party IP blocks incorporated into designs is rapidly increasing. Synopsys is a leading provider of high-quality, silicon-proven IP solutions for SoCs. Our broad DesignWare® IP portfolio includes:

• high-quality solutions for widely used wired and wireless interfaces such as USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth Smart;

• logic libraries and embedded memories, including SRAMs and non-volatile memory;

• configurable processor cores and application-specific instruction-set processors (ASIPs) for embedded and deeply embedded designs;

• IP subsystems for audio and sensor functionality that combine IP blocks and software into an integrated, pre-verified solution;

• security IP, which includes cryptographic cores, security protocol accelerators and co-processors, embedded security IP modules, secure boot and cryptography middleware, and content protection IP for integration into SoCs;

• analog IP for analog-to-digital data conversion and audio; and

• SoC infrastructure IP including minPower datapath components, ARM® AMBA® interconnect fabric and peripherals, and verification IP.

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Our IP Accelerated initiative augments our established, broad portfolio of silicon-proven DesignWare IP with DesignWare IP Prototyping Kits, DesignWare IP Virtual Development Kits, and customized IP subsystems to accelerate prototyping, software development, and integration of IP into SoCs.

We also offer IP portfolios for applications in specific market segments such as mobile, cloud computing, Internet of Things, digital home, digital office, and automotive that combine our DesignWare IP offerings, optimized for market requirements, with software development tools to help designers more rapidly develop SoCs and systems in these areas.

System-Level Solutions

Optimizing the system-level design earlier in the development cycle, including both hardware and software components, is increasingly important for customers to meet their performance, time-to-market, and development cost goals. Our Platform Architect™ software enables early and rapid exploration of SoC architectural trade-offs. To speed the creation, implementation and verification of differentiated IP blocks, we offer SPW™ and System Studio™ tools for algorithm design, Processor Designer™ software for custom processor design, ASIP Designer software for the design of application-specific instruction-set processors, and Synphony Model™ and C Compilers for high-level synthesis. Our Saber™ platform models and simulates the behavior of power electronic and mechatronic systems.

Escalating software content and complexity in today’s electronic devices are driving the adoption of new tools and methods to accelerate software development and ease hardware-software integration and system validation. Our system-level portfolio includes prototyping technologies that can improve the productivity of both hardware and software development teams. These prototyping technologies are also an important component of our Verification Continuum platform. They include the following:

• Our Virtualizer™ tool and broad portfolio of transaction-level models enable the creation of virtual prototypes, fully functional software models of complete systems that enable engineers to start software development up to 12 months earlier than traditional methods. 

• Our HAPS® FPGA-based prototyping systems integrate high-performance hardware and software tools with real-world interfaces to enable faster hardware-software integration and full system validation.

• Our hybrid prototyping solution combines both approaches to prototyping, integrating Virtualizer virtual prototyping with HAPS FPGA-based prototyping.

Synopsys also provides a series of tools used in the design of optical systems and photonic devices. Our CODE V® solution enables engineers to model, analyze and optimize designs for optical imaging and communication systems. Our LightTools® design and analysis software allows designers to simulate and improve the performance of a broad range of illumination systems, from vehicle lighting to projector systems.

Software Integrity Products

Our Software Integrity platform includes software quality and security testing tools that help software developers reduce the risk of errors and security defects in their code before it is released. We first began offering software integrity products in fiscal 2014 with our acquisition of Coverity, Inc. Our Coverity® products include our Code Advisor solution, composed of our Quality Advisor™ and Security Advisor™ software tools, which analyze software code to find crash-causing bugs, incorrect program behavior, memory leaks and other performance-degrading flaws, security vulnerabilities, violations of security best practices, and other critical code issues, many of which may be difficult to detect by other means.

We continued to expand our software integrity offerings with our acquisitions of Codenomicon OY and the Seeker® interactive application security testing solution from Quotium Technologies SA in fiscal 2015 and our acquisition of Protecode Inc. after the end of fiscal 2015. Our Codenomicon products include the Defensics® security testing platform, which tests for security vulnerabilities in software code, particularly network protocols and file formats, by systematically sending invalid or unexpected inputs to the system under test, sometimes referred to as “fuzz testing.” Our Codenomicon AppCheck™ software tool scans binary code to identify incorporated third-party code and any known security vulnerabilities of such code, while our Protecode technology scans for the use of open source code and helps manage the associated license and security risks. Our AbuseSA™ platform aggregates, contextualizes, and visualizes security threat data from a variety of sources.

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Manufacturing Solutions

Our Manufacturing Solutions software products and technologies enable semiconductor manufacturers to more quickly develop new fabrication processes that produce production-level yields. These products are used in the early research and development phase and the production phase. In the production phase, manufacturers use these products to convert IC design layouts into the masks used to manufacture the devices.

Our Manufacturing Solutions include Sentaurus™ Technology-CAD (TCAD) device and process simulation products, Proteus™ mask synthesis tools, CATS® mask data preparation product, and Yield Explorer® and Odyssey/Yield Manager® Yield Management solutions.

Professional Services and Other

Synopsys provides consulting and design services that address all phases of the SoC development process. These services assist our customers with new tool and methodology adoption, chip architecture and specification development, functional and low-power design and verification, and physical implementation and signoff. We also provide a broad range of expert training and workshops on our latest tools and methodologies.

Customer Service and Technical Support

A high level of customer service and support is critical to the adoption and successful use of our products. We provide technical support for our products through both field-based and corporate-based application engineering teams. Customers who purchase Technology Subscription Licenses (TSLs) receive software maintenance services bundled with their license fee. Customers who purchase term licenses and perpetual licenses may purchase these services separately. See Product Sales and Licensing Agreements below.

Software maintenance services include minor product enhancements, bug fixes and access to our technical support center for primary support. Software maintenance for our EDA and IP products also includes access to the SolvNet® portal, our web-based support solution that gives customers access to Synopsys’ complete design knowledge database. Updated daily, the SolvNet portal includes documentation, design tips and answers to user questions. Customers can also engage, for additional charges, our worldwide network of applications consultants for additional support needs.

In addition, Synopsys offers training workshops designed to increase customer design proficiency and productivity with our products. Workshops cover our EDA products and methodologies used in our design and verification flows, as well as specialized modules addressing system design, logic design, physical design, simulation and test. We offer regularly scheduled public and private courses in a variety of locations worldwide, as well as Virtual Classroom on-demand and live online training.

Product Warranties

We generally warrant our products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for our software products and for up to 6 months for our hardware products. In many cases, we also provide our customers with limited indemnification with respect to claims that their use of our software products infringes on United States patents, copyrights, trademarks or trade secrets. We have not experienced material warranty or indemnity claims to date.

Support for Industry Standards

We actively create and support standards that help our EDA and IP customers increase productivity, facilitate efficient design flows, improve interoperability of tools from different vendors, and ensure connectivity, functionality and interoperability of IP building blocks. Standards in the electronic design industry can be established by formal accredited organizations, industry consortia, company licensing made available to all, de facto usage, or through open source licensing.

Synopsys’ EDA products support more than 35 standards, including the most commonly used hardware description languages: SystemVerilog, Verilog, VHDL, and SystemC. Our products utilize numerous industry standard data formats, application programming interfaces, and databases for the exchange of design data among our tools, other EDA vendors’ products, and applications that customers develop internally. We also comply with a wide range of industry standards within our IP product family to ensure usability and interconnectivity.

Our software integrity products support several existing and emerging industry standards for software coding and security, such as the MISRA coding standards for the automotive industry. In addition, our products support multiple

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major programming languages, including Objective C, Javascript and security vulnerability coverage for C#, and are compatible with numerous common industry language compilers, development environments, and data and file formats.

Sales, Distribution and Backlog

Our EDA and IP customers are primarily semiconductor and electronics systems companies. The customers for our software integrity products include many of these companies as well as companies in a wider array of industries, including financial services, energy, and industrials. We market our products and services principally through direct sales in the United States and principal foreign markets. We typically distribute our software products and documentation to customers electronically, but provide physical media (e.g., DVD-ROMs) when requested by the customer.

We maintain sales/support centers throughout the United States. Outside the United States, we maintain sales, support or service offices in Canada, multiple countries in Europe, Israel, Japan, China, Korea, Taiwan and other countries in Asia. Our international headquarters are located in Dublin, Ireland. Our offices are further described under Part I, Item 2, Properties.

In fiscal 2015, 2014 and 2013, an aggregate of 49%, 50% and 52%, respectively, of Synopsys’ total revenue was derived from sales outside of the United States. Geographic revenue, which is based on where individual "seats" or licenses to our products are located, is shown below as a percentage of total revenue for the last three fiscal years.

Additional information relating to domestic and foreign operations, including revenue and long-lived assets by geographic area, is contained in Note 13 of Notes to Consolidated Financial Statements in Part II, Item 8, Financial Statements and Supplementary Data. Risks related to our foreign operations are described in Part I, Item 1A, Risk Factors.

Our backlog was approximately $3.6 billion on October 31, 2015, an increase from backlog of $3.5 billion on October 31, 2014, which resulted primarily from business growth, and to a lesser extent, acquisitions. Backlog represents committed orders that are expected to be recognized as revenue over the following three years. We currently expect that $1.7 billion of our backlog will be recognized after fiscal 2016. Backlog may not be a reliable predictor of our future sales as business conditions may change and technologies may evolve, and customers may

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seek to renegotiate their arrangements or may default on their payment obligations. For this and other reasons, we may not be able to recognize expected revenue from backlog when anticipated.

Revenue attributable to each of our four product categories is shown below as a percentage of total revenue for the last three fiscal years.

*Our IP, Systems and Software Integrity category was referred to as IP and Software Solutions in fiscal 2014 and IP and System-Level Solutions in fiscal 2013.

Aggregate revenue derived from Intel Corporation and its subsidiaries through multiple agreements accounted for 12.8%, 10.5% and 11.3% of our total revenue in fiscal 2015, 2014 and 2013, respectively. No other customer accounted for more than 10% of our revenue during such periods.

Product Sales and Licensing Agreements

We typically license our software to customers under non-exclusive license agreements that transfer title to the media only and restrict use of our software to specified purposes within specified geographical areas. The majority of our licenses are network licenses that allow a number of individual users to access the software on a defined network, including, in some cases, regional or global networks. License fees depend on the type of license, product mix and number of copies of each product licensed.

Generally, we provide our customers the right to “re-mix” a portion of the software they initially licensed for other specified Synopsys products. For example, a customer may use our front-end design products for a portion of the license term and then exchange such products for back-end place and route software for the remainder of the term in order to complete the customer’s IC design. This practice helps assure the customer’s access to the complete design flow needed to design its product. The ability to offer this right to customers gives us an advantage over competitors who offer a narrower range of products because customers can obtain more of their design flow from a single vendor. At the same time, because in such cases the customer need not obtain a new license and pay an additional license fee for the use of the additional products, the use of these arrangements could result in reduced revenue compared to licensing the individual products separately without re-mix rights.

We currently offer our software products under various license types: renewable TSLs, term licenses and perpetual licenses. For a full discussion of these licenses, see Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates and Results of Operations—Revenue Background.

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We typically license our DesignWare Core intellectual property products under nonexclusive license agreements that provide usage rights for specific applications. Fees under these licenses are typically charged on a per design basis plus, in some cases, royalties. Royalty arrangements are not material to our total revenue.

Our hardware products, which principally consist of our prototyping and emulation systems, are either sold or leased to our customers. Hardware revenue is not material to our total revenue.

Finally, our Global Technical Services team typically provides design consulting services to our customers under consulting agreements with statements of work specific to each project.

Research and Development

Our future performance depends in large part on our ability to further enhance and extend our design and verification platforms and to expand our IP, system-level, software integrity and manufacturing product offerings. Research and development of existing and new products is primarily conducted within each product group. We also use targeted acquisitions to augment our own research and development efforts.

Our research and development expenses were $776.2 million, $718.8 million and $669.2 million in fiscal 2015, 2014 and 2013, respectively. Our capitalized software development costs were approximately $3.7 million, $3.6 million and $3.6 million in fiscal 2015, 2014 and 2013, respectively.

Competition

The EDA industry is highly competitive. We compete against other EDA vendors and against our customers’ own design tools and internal design capabilities. In general, we compete principally on technology leadership, product quality and features (including ease-of-use), license terms, price and payment terms, post-contract customer support, and interoperability with our own and other vendors’ products. No one factor drives an EDA customer’s buying decision, and we compete on all fronts to capture a higher portion of our customers’ budgets. Our competitors include EDA vendors that offer varying ranges of products and services, such as Cadence Design Systems, Inc. and Mentor Graphics Corporation. We also compete with other EDA vendors, including new entrants to the marketplace, that offer products focused on one or more discrete phases of the IC design process, as well as with customers’ internally developed design tools and capabilities.

In the area of IP products, we compete against numerous other IP providers, including Cadence Design Systems, Inc., and our customers' internally developed IP, and we generally compete on the basis of product quality and features, ease of integration with customer designs, compatibility with design tools, license terms, price and payment terms, and customer support. In the area of software integrity products, the market is still developing, and we compete with numerous tool providers, some of which focus on specific aspects of software security or quality analysis, as well as frequent new entrants, which include start-up companies as well as more established software companies.

Proprietary Rights

Synopsys primarily relies upon a combination of copyright, patent, trademark and trade secret laws and license and nondisclosure agreements to establish and protect its proprietary rights. We have a diversified portfolio of more than 2,500 United States and foreign patents issued, and we will continue to pursue additional patents in the future. Our issued patents have expiration dates through 2034. Our patents primarily relate to our products and the technology used in connection with our products. Our source code is protected both as a trade secret and as an unpublished copyrighted work. However, third parties may develop similar technology independently. In addition, effective copyright and trade secret protection may be unavailable or limited in some foreign countries. While protecting our proprietary technology is important to our success, our business as a whole is not significantly dependent upon any single patent, copyright, trademark or license.

In many cases, under our customer agreements and other license agreements, we offer to indemnify our customers if the licensed products infringe on a third party’s intellectual property rights. As a result, we may from time to time need to defend claims that our customers’ use of our products infringes on these third-party rights.

We license software and other intellectual property from third parties, including, in several instances, for inclusion in our products. Risks related to our use of third-party technology are described in Part I, Item 1A, Risk Factors.

Employees

As of October 31, 2015, Synopsys had 10,284 employees, of which 3,760 were based in the United States.

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Executive Officers of the Registrant

The executive officers of Synopsys and their ages as of December 14, 2015 were as follows:

Name	Age	Position
Aart J. de Geus	61	Co-Chief Executive Officer and Chairman of the Board of Directors
Chi-Foon Chan	66	Co-Chief Executive Officer and President
Trac Pham	46	Chief Financial Officer
Brian M. Beattie	62	Executive Vice President, Business Operations and Chief Administrative Officer
Joseph W. Logan	56	Executive Vice President, Worldwide Sales and Corporate Marketing
John F. Runkel, Jr.	60	General Counsel and Corporate Secretary

Aart J. de Geus co-founded Synopsys and has served as Chairman of our Board of Directors since February 1998 and Chief Executive Officer since January 1994. He has served as Co-Chief Executive Officer with Dr. Chi-Foon Chan since May 2012. Since the inception of Synopsys in December 1986, Dr. de Geus has held a variety of positions, including President, Senior Vice President of Engineering and Senior Vice President of Marketing. He has served as a member of Synopsys’ Board of Directors since 1986, and served as Chairman of our Board from 1986 to 1992 and again from 1998 until present. Dr. de Geus has also served on the board of directors of Applied Materials, Inc. since July 2007. Dr. de Geus holds an M.S.E.E. from the Swiss Federal Institute of Technology in Lausanne, Switzerland and a Ph.D. in Electrical Engineering from Southern Methodist University.

Chi-Foon Chan has served as our Co-Chief Executive Officer since May 2012 and as our President and a member of our Board of Directors since February 1998. Prior to his appointment as our Co-Chief Executive Officer in May 2012, he had served as our Chief Operating Officer since April 1997. Dr. Chan joined Synopsys in May 1990 and has held various senior management positions, including Executive Vice President, Office of the President from September 1996 to February 1998 and Senior Vice President, Design Tools Group from February 1994 to April 1997. Dr. Chan has also held senior management and engineering positions at NEC Electronics and Intel Corporation. Dr. Chan holds a B.S. in Electrical Engineering from Rutgers University, and an M.S. and a Ph.D. in Computer Engineering from Case Western Reserve University.

Trac Pham is our Chief Financial Officer. Mr. Pham joined Synopsys in November 2006 as Vice President, Financial Planning and Strategy. He became our Vice President, Corporate Finance, in August 2012, assuming additional responsibility for our tax and treasury functions, before being appointed Chief Financial Officer in December 2014. Mr. Pham holds a Bachelor of Arts in Economics from the University of California, Berkeley and an MPIA (Master of Pacific International Affairs) from the University of California, San Diego. He is an active status California CPA.

Brian M. Beattie is our Executive Vice President, Business Operations and Chief Administrative Officer. Prior to his promotion to that role in December 2014, Mr. Beattie had served as our Chief Financial Officer since January 2006. From October 1999 to January 2006, he was Executive Vice President of Finance and Administration and Chief Financial Officer of SupportSoft, Inc. From May 1998 to May 1999, he served as Vice President of Finance, Mergers and Acquisitions of Nortel Networks Corporation. From July 1996 to April 1998, Mr. Beattie served as Group Vice President of Meridian Solutions of Nortel Networks Corporation. Mr. Beattie served on the board of directors of Unwired Planet, Inc. from December 2010 until November 2012. Mr. Beattie holds a Bachelor of Commerce and an M.B.A. from Concordia University in Montreal.

Joseph W. Logan serves as our Executive Vice President of Worldwide Sales and Corporate Marketing. He became Senior Vice President of Worldwide Sales in September 2006, assumed responsibility for our Corporate Marketing organization in August 2013, and became Executive Vice President in December 2013. Previously, Mr. Logan was head of sales for Synopsys’ North America East region from September 2001 to September 2006. Prior to Synopsys, Mr. Logan was head of North American Sales and Support at Avant! Corporation. Mr. Logan holds a B.S.E.E. from the University of Massachusetts, Amherst.

John F. Runkel, Jr. has served as our General Counsel and Corporate Secretary since May 2014. From October 2008 to March 2013, he was Executive Vice President, General Counsel, and Corporate Secretary of Affymetrix, Inc. He served as Senior Vice President, General Counsel and Corporate Secretary of Intuitive Surgical, Inc. from 2006 to 2007. Mr. Runkel served in several roles at VISX, Inc. from 2001 to 2005, most recently as Senior Vice President of Business Development and General Counsel. Mr. Runkel was also a partner at the law firm of Sheppard, Mullin, Richter & Hampton LLP for 11 years. He holds a Bachelor of Arts and a Juris Doctorate from the University of California, Los Angeles.

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There are no family relationships among any Synopsys executive officers or directors.

 Item 1A.     Risk Factors

A description of the risk factors associated with our business is set forth below. Investors should carefully consider these risks and uncertainties before investing in our common stock.

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

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

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

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

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

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

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

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We cannot predict when widespread global economic confidence will be restored. In addition, should further economic instability affect the banking and financial services industry and result in credit downgrades of the banks we rely on for foreign currency forward contracts, credit and banking transactions, and deposit services, or cause them to default on their obligations, it could adversely affect our financial results and our business. Accordingly, our future business and financial results are subject to uncertainty, and our stock price is at risk of volatile change. If economic conditions deteriorate in the future, or, in particular, if the semiconductor industry does not grow, our future revenues and financial results could be adversely affected. Conversely, in the event of future improvements in economic conditions for our customers, the positive impact on our revenues and financial results may be deferred due to our business model.

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

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

• Potential negative impact on our earnings per share;

• Failure of acquired products to achieve projected sales;

• Problems in integrating the acquired products with our products;

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

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

• Difficulties in retaining and integrating key employees;

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

• Failure to realize expected synergies or cost savings;

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

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

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

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

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

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

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

• Negative impact on our earnings resulting from acquisition-related costs; and

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

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

For example, we have recently acquired several providers of software quality and security testing tools, including Coverity, Inc. and Codenomicon OY. This is a new, though adjacent, technology space for us. The customers for

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these tools are diverse and include industries with which we do not have experience. We may need to develop new sales and marketing strategies and meet new customer service requirements. We will need to accurately predict, prepare for, and promptly respond to technological developments in the field, such as identifying new security vulnerabilities in software code and ensuring support for a growing number of programming languages. At the same time, we will need to compete against new and unfamiliar competitors that may have more financial resources, industry experience, brand recognition, or established customer relationships than we do. To successfully develop our software quality and security offerings, we will need to skillfully balance our investment in the space with investment in our existing products, as well as attract and retain employees with expertise in these new fields. If we fail to do so, we may not realize the expected benefits of our acquisitions, and it may have a negative effect on our earnings and financial condition.

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

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

For example, the Financial Accounting Standards Board (FASB) is currently working together with the International Accounting Standards Board (IASB) to converge certain accounting principles and facilitate more comparable financial reporting between companies that are required to follow U.S. GAAP and those that are required to follow International Financial Reporting Standards (IFRS). In connection with this initiative, the FASB issued a new accounting standard for revenue recognition in May 2014 - Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)" - that supersedes nearly all existing U.S. GAAP revenue recognition guidance and will be effective for fiscal 2019. Although we are currently in the process of evaluating the impact of ASU 2014-09 on our consolidated financial statements, it could change the way we account for certain of our sales transactions. Adoption of the standard could have a significant impact on our financial statements and may retroactively affect the accounting treatment of transactions completed before adoption.

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

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

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

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

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

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

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

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

• Our ability to implement effective cost control measures;

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

• Changes in the mix of our products sold, as increased sales of our products with lower gross margins, such as our hardware products, may reduce our overall margins;

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

• Changes to our effective tax rate;

• Delays, increased costs or quality issues resulting from our reliance on third parties to manufacture our hardware products, which include a sole supplier for certain hardware components; and

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

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

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

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

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

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

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

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

• Changes in our revenue recognition model.

These factors, or any other factors or risks discussed herein, could negatively impact our revenue or earnings and cause our stock price to decline. Additionally, our results may fail to meet or exceed the expectations of securities analysts and investors, or such analysts may change their recommendation regarding our stock, which could cause our stock price to decline. Our stock price has been, and may continue to be, volatile, which may make it harder for our stockholders to sell their shares at a time or a price that is favorable to them.

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

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

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

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

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

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

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

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

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

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

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

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

• Assert claims of infringement of our intellectual property;

• Defend our products from piracy;

• Protect our trade secrets or know-how; or

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

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

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

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

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Further changes in the tax laws of foreign jurisdictions could arise as a result of the base erosion and profit shifting (BEPS) project undertaken by the Organisation for Economic Co-operation and Development (OECD), which represents a coalition of member countries. On October 5, 2015, the OECD issued a series of reports recommending changes to numerous long-standing tax principles. It is likely that some or all of these recommendations will be adopted by various countries in which we do business and may increase our taxes in these countries. In addition, the Republic of Ireland has changed its corporate residence rules and will require changes to our tax position by January 1, 2021. Changes to these and other areas in relation to international tax reform could increase uncertainty in the corporate tax area and may adversely affect our provision for income taxes. In the U.S., a number of proposals for broad reform of the corporate tax system are under evaluation by various legislative and administrative bodies, but it is not possible to accurately determine the overall impact of such proposals on our effective tax rate at this time.

Our tax filings are subject to review or audit by the Internal Revenue Service and state, local and foreign taxing authorities. We exercise significant judgment in determining our worldwide provision for income taxes and, in the ordinary course of our business, there may be transactions and calculations where the ultimate tax determination is uncertain. We are also liable for potential tax liabilities of businesses we acquire. Although we believe our tax estimates are reasonable, the final determination in an audit may be materially different than the treatment reflected in our historical income tax provisions and accruals. An assessment of additional taxes because of an audit could adversely affect our income tax provision and net income in the periods for which that determination is made.

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

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

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

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

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

• Ineffective legal protection of intellectual property rights;

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

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

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

• Inadequate local infrastructure that could result in business disruptions;

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

• Additional taxes and penalties; and

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

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

In addition, our global operations are subject to numerous U.S. and foreign laws and regulations, including those related to anti-corruption, tax, corporate governance, imports and exports, financial and other disclosures, privacy and labor relations. These laws and regulations are complex and may have differing or conflicting legal standards, making compliance difficult and costly. If we violate these laws and regulations we could be subject to fines, penalties or criminal sanctions, and may be prohibited from conducting business in one or more countries. Although we have implemented policies and procedures to ensure compliance with these laws and regulations, there can be no assurance that our employees, contractors or agents will not violate these laws and regulations. Any violation individually or in the aggregate could have a material adverse effect on our operations and financial condition.

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

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

We store sensitive data, including intellectual property, our proprietary business information and that of our customers, and confidential employee information, in our data centers and on our networks. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions that could result in unauthorized disclosure or loss of sensitive information. 

For example, in October 2015, we discovered unauthorized third-party access, which had begun in July 2015, to our products and product license files hosted on our SolvNet customer license and product delivery system. We determined that no customer project or design data had been accessed. No personally identifiable information or payment card information is stored on the system. While we identified and closed the method used to gain access, and do not expect the incident to impact our financial results, it is possible our security measures may be circumvented again in the future, and such a breach could harm our business and reputation. The techniques used to obtain unauthorized access to networks, or to sabotage systems, change frequently and generally are not recognized until launched against a target. We may be unable to anticipate these techniques or to implement adequate preventative measures. Furthermore, in the operation of our business we also use third-party vendors that store certain sensitive data, including confidential information about our employees, and these third parties are subject to their own cybersecurity threats. While our standard vendor terms and conditions include provisions requiring the use of appropriate security measures to prevent unauthorized use or disclosure of our data, as well as other safeguards, a breach may still occur. Any security breach of our own or a third-party vendor’s systems could cause us to be non-compliant with applicable laws or regulations, subject us to legal claims or proceedings, disrupt our operations, damage our reputation, and cause a loss of confidence in our products and services, any of which could adversely affect our business.

Our software products may also be vulnerable to cyberattacks. An attack could disrupt the proper functioning of our software, cause errors in the output of our customers’ work, allow unauthorized access to our or our customers’ proprietary information, and other destructive outcomes. As a result, our reputation could suffer, customers could stop buying our products, we could face lawsuits and potential liability, and our financial performance could be negatively impacted.

We recently began offering software quality and security testing solutions as a result of our acquisitions of Coverity and Codenomicon. If we fail to identify new and increasingly sophisticated methods of cyberattack, or fail to invest sufficient resources in research and development regarding new threat vectors, our security testing products may

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fail to detect vulnerabilities in our customers’ software code. An actual or perceived failure to identify security flaws may harm the perceived reliability of our security testing products and could result in a loss of customers, sales, or an increased cost to remedy a problem. Furthermore, our acquisitions of Coverity and Codenomicon may increase our visibility as a security-focused company and may make us a more attractive target for attacks on our own information technology infrastructure. Successful attacks could damage our reputation as a security-focused company.

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

As of October 31, 2015, approximately 83.9% of our worldwide cash, cash equivalents and short-term investments balance is held by our international subsidiaries. At present, such foreign funds are considered to be indefinitely reinvested abroad, to the extent they derive from foreign earnings we have indefinitely reinvested in our foreign operations. We intend to meet our U.S. cash spending needs primarily through our existing U.S. cash balances, ongoing U.S. cash flows, and available credit under our term loan and revolving credit facilities. As of October 31, 2015, we had outstanding debt of $45.0 millionunder our $150.0 million term loan facility and $160.0 million of outstanding debt under our $500.0 million revolving credit facility. Should our cash spending needs in the U.S. rise and exceed these liquidity sources, we may be required to incur additional debt at higher than anticipated interest rates or access other funding sources, which could negatively affect our results of operations, capital structure or the market price of our common stock.

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

We are from time to time subject to claims alleging our infringement of third-party intellectual property rights, including patent rights. For example, we and Emulation & Verification Engineering S.A. (EVE), a company we acquired in October 2012, are party to ongoing patent infringement lawsuits involving Mentor Graphics Corporation. The jury in one of the lawsuits returned a verdict of approximately $36 million in assessed damages against us for patent infringement, and the court in the lawsuit has entered an injunction prohibiting certain sales activities relating to the features found by the jury to infringe. We have appealed from the injunction and the final judgment in the case. Further information regarding the EVE lawsuits is contained in Part I, Item 3, Legal Proceedings. In addition, under our customer agreements and other license agreements, we agree in many cases to indemnify our customers if our products infringe a third party’s intellectual property rights. Infringement claims can result in costly and time-consuming litigation, require us to enter into royalty arrangements, subject us to damages or injunctions restricting our sale of products, invalidate a patent or family of patents, require us to refund license fees to our customers or to forgo future payments or require us to redesign certain of our products, any one of which could harm our business and operating results.

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

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

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

We may be subject to legal claims or regulatory matters involving stockholder, consumer, employment, competition, and other issues on a global basis. Litigation is subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include monetary damages or, in cases for which injunctive relief is sought, an injunction prohibiting us from manufacturing or selling one or more products. If we were to receive an unfavorable ruling on a matter, our business and results of operations could be materially harmed. Further information regarding material pending lawsuits, other than ordinary routine litigation incidental to our business, is contained in Part I, Item 3, Legal Proceedings.

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We may not be able to continue to obtain licenses to third-party software and intellectual property on reasonable terms or at all, which may disrupt our business and harm our financial results.

We license third-party software and other intellectual property for use in product research and development and, in several instances, for inclusion in our products. We also license third-party software, including the software of our competitors, to test the interoperability of our products with other industry products and in connection with our professional services. These licenses may need to be renegotiated or renewed from time to time, or we may need to obtain new licenses in the future. Third parties may stop adequately supporting or maintaining their technology, or they or their technology may be acquired by our competitors. If we are unable to obtain licenses to this third-party software and intellectual property on reasonable terms or at all, we may not be able to sell the affected products, our customers’ use of the products may be interrupted, or our product development process and professional services offerings may be disrupted, which could in turn harm our financial results, our customers, and our reputation.

The inclusion of third-party intellectual property in our products can also subject us and our customers to infringement claims. Although we seek to mitigate this risk contractually, we may not be able to sufficiently limit our potential liability. Regardless of outcome, infringement claims may require us to use significant resources and may divert management attention.

Some of our products and technology, including those we acquire, may include software licensed under open source licenses. Some open source licenses could require us, under certain circumstances, to make available or grant licenses to any modifications or derivative works we create based on the open source software. Although we have tools and processes to monitor and restrict our use of open source software, the risks associated with open source usage may not be eliminated and may, if not properly addressed, result in unanticipated obligations that harm our business.

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

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

We issue stock options and restricted stock units and maintain employee stock purchase plans as a key component of our overall compensation. We face pressure to limit the use of such equity-based compensation due to its dilutive effect on stockholders. If we are unable to grant attractive equity-based packages in the future, it could limit our ability to attract and retain key employees.

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

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

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

Regardless of how well designed and operated it is, a control system can provide only reasonable assurance that its objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues

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and instances of fraud, if any, have been detected. Moreover, although we have implemented compliance programs and compliance training for employees, such measures may not prevent our employees, contractors or agents from breaching or circumventing our policies or violating applicable laws and regulations. Failure of our control systems and compliance programs to prevent error, fraud or violations of law could have a material adverse impact on our business.

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

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

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

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

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

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

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

 Item 1B.     Unresolved Staff Comments

None.

 Item 2.     Properties

Our principal offices are located in two adjacent buildings in Mountain View, California, which together provide approximately 341,000 square feet of available space. This space is leased through August 2030, and we have two options to extend the lease term, the first to extend the term by ten years, followed by a second option to extend by approximately nine additional years. We also lease approximately 238,000 square feet of space in three separate

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buildings in Sunnyvale, California, with lease expiration dates ranging from September 2019 to October 2019. We own one building in Sunnyvale, California with approximately 120,000 square feet of space. These buildings in Mountain View and Sunnyvale are used for research and development, sales and support, marketing, and administrative activities.

We currently lease 29 other offices throughout the United States, and own 2 office buildings in Oregon, one of which is leased to a tenant. These offices are used primarily for sales and support activities as well as research and development.

International Facilities

We lease additional space for sales, service and research and development activities in approximately 25 countries throughout the world, including 25,000 square feet in Dublin, Ireland for our international headquarters, as well as significant sites in Yerevan, Armenia, Bangalore, India and Shanghai, China. In addition, we own two buildings in Hsinchu, Taiwan with approximately 212,000 square feet of combined space.

We believe that our existing facilities, including both owned and leased properties, are in good condition and suitable for the current conduct of our business.

 Item 3.     Legal Proceedings

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

Mentor Patent Litigation

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

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

The Oregon Action

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

The Oregon Action went to trial on the remaining Mentor patent, and a jury reached a verdict on October 10, 2014 finding that certain features of the ZeBu products infringed the ‘376 patent and assessing damages of approximately $36 million. On March 12, 2015, the court entered an injunction prohibiting certain sales activities

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relating to the features found by the jury to infringe. Synopsys has released a new version of ZeBu software that does not include such features. Both parties have appealed from the final judgment.

The California Action

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

PTO Proceedings

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

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

 Item 4.     Mine Safety Disclosures

Not applicable.

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PART II

 Item 5.     Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Common Stock Market Price

Our common stock trades on the NASDAQ Global Select Market under the symbol “SNPS.” The following table sets forth for the periods indicated the high and low sale prices of our common stock, as reported by the NASDAQ Global Select Market.

	Quarter Ended
	January 31,		April 30,		July 31,		October 31,
2015
High	$	44.65	$	47.96	$	51.15	$	52.30
Low	$	41.16	$	43.19	$	46.62	$	44.98
2014
High	$	41.57	$	41.10	$	39.37	$	41.75
Low	$	35.72	$	36.38	$	36.84	$	37.28

As of December 10, 2015, we had 330 stockholders of record. To date, we have paid no cash dividends on our capital stock and have no current intention to do so.

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Performance Graph

The following graph compares the five-year total return to stockholders of our common stock relative to the cumulative total returns of the S&P 500 Index, the S&P Information Technology Index and the NASDAQ Composite Index. The graph assumes that $100 was invested in Synopsys common stock on October 29, 2010 (the last trading day before the beginning of our fifth preceding fiscal year) and in each of the indexes on October 29, 2010 (the closest month end) and that all dividends were reinvested. No cash dividends were declared on our common stock during such time. The comparisons in the table are required by the SEC and are not intended to forecast or be indicative of possible future performance of our common stock.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*

*$100 invested on 10/29/10 in stock or index, including reinvestment of dividends.

Indexes calculated on month-end basis. Stock calculated on fiscal year-end basis.

Copyright© 2015 S&P, a division of McGraw-Hill Financial. All rights reserved.

The information presented above in the stock performance graph shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, except to the extent that we subsequently specifically request that such information be treated as soliciting material or specifically incorporate it by reference into a filing under the Securities Act or Exchange Act.

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Stock Repurchase Program

Our Board of Directors (Board) approved a stock repurchase program in 2002 pursuant to which we were authorized to purchase up to $500.0 million of our common stock, and has periodically replenished the stock repurchase program to such amount. Our Board last replenished the stock repurchase program up to $500.0 million on September 1, 2015, as announced on the same date. The program does not obligate Synopsys to acquire any particular amount of common stock, and the program may be suspended or terminated at any time by our Chief Financial Officer or our Board. We repurchase shares to offset dilution caused by ongoing stock issuances from existing equity plans for equity compensation awards and issuances related to acquisitions, and when management believes it is a good use of cash. Repurchases are transacted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (Exchange Act) and may be made through any means including, but not limited to, open market purchases, plans executed under Rule 10b5-1(c) of the Exchange Act and structured transactions. As of October 31, 2015, $500 million remained available for further repurchases under the program.

In August 2015, we entered into an accelerated share repurchase agreement (the August 2015 ASR) to repurchase an aggregate of $100.0 million of our common stock. Pursuant to the August 2015 ASR, we made a prepayment of $100.0 million and received an initial share delivery of shares valued at $80.0 million with an average purchase price of $46.94 per share. The remaining balance of $20.0 million is included within stockholders' equity during fiscal 2015 and was settled in the first quarter of fiscal 2016. The total shares purchased under the August 2015 ASR were approximately 2.1 million shares, at an average purchase price of $48.06 per share.

The table below sets forth information regarding our repurchases of our common stock during the three months ended October 31, 2015:

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced programs	Maximum dollar value of shares that may yet be purchased under the programs(1)
Month #1
August 2, 2015 through September 5, 2015	1,704,303	$	46.9400	1,704,303	$	500,000,000
Month #2
September 6, 2015 through October 3, 2015	—	$	—	—	$	500,000,000
Month #3
October 4, 2015 through October 31, 2015	—	$	—	—	$	500,000,000
Total	1,704,303	$	46.9400	1,704,303	$	500,000,000

(1) Does not include $20.0 million equity forward contract related to the August 2015 ASR referenced above. As of October 31, 2015, $500 million remained available for future repurchases under the program.

See Note 9 of Notes to Consolidated Financial Statements for further information regarding our stock repurchase program including ASRs entered into in December 2015.

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 Item 6.     Selected Financial Data

	Fiscal Year Ended October 31,(1)
	2015			2014		2013		2012			2011
	(in thousands, except per share data)
Revenue	$	2,242,211		$	2,057,472	$	1,962,214	$	1,756,017		$	1,535,643
Income before provisions for income taxes	281,610			272,142		275,666		201,135			219,113
Provision (benefit) for income taxes(2)	55,676			13,018		27,866		18,733			(2,251		)
Net income	225,934			259,124		247,800		182,402			221,364
Net income per share:
Basic	1.46			1.67		1.62		1.24			1.51
Diluted	1.43			1.64		1.58		1.21			1.47
Working capital	(14,552		)	117,976		225,058		(111,983		)	327,735
Total assets	5,045,739			4,775,499		4,358,935		4,147,656			3,368,844
Long-term debt	—			45,000		75,000		105,000			—
Stockholders’ equity	3,133,989			3,056,170		2,788,277		2,543,971			2,101,300

(1) Our fiscal year ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, we have a 53-week year. Fiscal 2015, 2014, 2013, and 2011 were 52-week years ending on October 31, 2015, November 1, 2014, November 2, 2013, and October 29, 2011, respectively. Fiscal 2012was a 53-week year ending on November 3, 2012.

(2) Includes $6.3 million, $19.6 million, $1.1 million, $36.9 million, and $32.8 million in tax benefits from tax settlements received in fiscal years 2015, 2014, 2013, 2012, and 2011, respectively. See Note 11 of Notes to Consolidated Financial Statements.

 Item 7.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

The following summary of our financial condition and results of operations is qualified in its entirety by the more complete discussion contained in this Item 7 and by the risk factors set forth in Item 1A of this Annual Report. Please also see the cautionary language at the beginning of Part I of this Annual Report regarding forward-looking statements.

Business Summary

Synopsys, Inc. provides software, intellectual property, and services used by designers along the entire silicon to software spectrum, from engineers creating advanced semiconductors to software developers seeking to ensure the quality and security of their applications. We are a global leader in supplying the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. We also offer intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. We provide software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. To complement these offerings, which are sold primarily to semiconductor and electronics companies, we provide technical services to support our solutions and help our customers develop chips and electronic systems. We are also a leading provider of software tools that developers use to improve the quality and security of software code in a wide variety of industries, including electronics, financial services, energy, and industrials.

Our EDA and IP customers are generally semiconductor and electronics systems companies. Our solutions help them overcome the challenge of developing increasingly advanced electronics products while reducing their design and manufacturing costs. While our products are an important part of our customers’ development process, our customers’ research and development budget and spending decisions may be affected by their business outlook and their willingness to invest in new and increasingly complex chip designs. In addition, a number of consolidations

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have taken place in the semiconductor industry recently. While we do not believe customer consolidations have had a material impact on our results, the future impact is uncertain. Please see the risk factor titled “Consolidation among our customers, as well as within the industries in which we operate, may negatively impact our operating results.” in Part I, Item 1A, Risk Factors for a discussion of potential risks.

Despite global economic uncertainty, we have maintained profitability and positive cash flow on an annual basis in recent years. We achieved these results not only because of our solid execution, leading technology and strong customer relationships, but also because of our time-based revenue business model. Under this model, a substantial majority of our customers pay for their licenses over time and we typically recognize this revenue over the life of the contract, which averages approximately three years. Time-based revenue, which consists of time-based license, maintenance and service revenue, generally represents approximately 90% of our total revenue. The revenue we recognize in a particular period generally results from selling efforts in prior periods rather than the current period. Due to our business model, decreases as well as increases in customer spending do not immediately affect our revenues in a significant way.

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

Fiscal Year End

Our fiscal year ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, we have a 53-week year. Fiscal 2015, 2014, and 2013 were 52-week years ending on October 31, 2015, November 1, 2014, and November 2, 2013, respectively.

For presentation purposes, this Form 10-K refers to the closest calendar month end.

Fiscal 2015 Financial Performance Summary

In fiscal 2015, compared to fiscal 2014, our financial performance reflects the following:

• Total revenue of $2.2 billion, an increase of $184.7 million or 9%, reflecting organic growth and several acquisitions,

• Total cost of revenue and operating expenses of $2.0 billion, an increase of $167.0 million or 9%, primarily due to our operational growth and acquisitions resulting in higher employee-related costs,

• Higher operating income of $266.5 million, an increase of $17.7 million or 7%, and

• Higher provision for income taxes of $55.7 million, an increase of $42.7 million or 328%, primarily due to the integration of acquired technologies during fiscal 2015 and higher tax settlements in fiscal 2014, resulting in lower net income.

We continued to derive more than 90% of our revenue from time-based revenue in fiscal 2015.

New Accounting Pronouncements

See Note 14 of the Notes to Consolidated Financial Statements.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial results under Results of Operations below are based on our audited results of operations, which we have prepared in accordance with U.S. GAAP. In preparing these financial statements, we make assumptions, judgments and estimates that can affect the reported amounts of assets, liabilities, revenues and expenses and net income. On an ongoing basis, we evaluate our estimates based on historical experience and various other assumptions we believe are reasonable under the circumstances. Our actual results may differ from these estimates. For further information on our significant accounting policies, see Note 2 of Notes to Consolidated Financial Statements.

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

• Revenue recognition;

• Valuation of business combinations;

• Valuation of intangible assets; and

• Income taxes.

Revenue Recognition

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

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

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

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

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

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

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

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

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

Our maintenance and service revenue consists of maintenance fees associated with perpetual and term software licenses and professional services fees. We recognize revenue from maintenance arrangements ratably over the maintenance period to the extent cash has been received or fees become due and payable, and recognize revenue from professional services and training fees as such services are performed and accepted by the customer.

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Revenue attributable to maintenance, professional services and training is reported as “maintenance and service revenue” in the consolidated statements of operations.

Hardware revenue consists of sales of FPGA-based emulation and prototyping products. We recognize revenue from sales of hardware products in full upon shipment if all other revenue recognition criteria are met. Revenue attributable to these sales is reported as “upfront license revenue” in the consolidated statements of operations and is not material to our total revenue.

We also enter into arrangements in which portions of revenue are contingent upon the occurrence of uncertain future events, for example, royalty arrangements. We refer to this revenue as “contingent revenue.” Contingent revenue is recognized if and when the applicable event occurs. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. These arrangements are not material to our total revenue.

We infrequently enter into multiple-element arrangements that contain both software and non-software deliverables such as hardware. We have determined that the software and non-software deliverables in our contracts are separate units of accounting. We recognize revenue for the separate units of accounting when all revenue recognition criteria are met. Revenue allocated to hardware units of accounting is recognized upon shipment when all other revenue recognition criteria are met. Revenue allocated to software units of accounting is recognized depending on the software license type (TSL, term license or perpetual license). Such arrangements have not had a material effect on our consolidated financial statements and are not expected to have a material effect in future periods.

We also enter into arrangements to deliver software products, either alone or together with other products or services that require significant modification, or customization of the software. We account for such arrangements using the percentage of completion method as we have the ability to make reasonably dependable estimates that relate to the extent of progress toward completion, contract revenues and costs. We measure the progress towards completion using the labor hours incurred to complete the project. Revenue attributable to these arrangements is reported as maintenance and service revenue in the consolidated statements of operations.

We determine the fair value of each element in multiple element software arrangements that only contain software and software-related deliverables based on vendor-specific objective evidence (VSOE). We limit our assessment of VSOE of fair value for each element to the price charged when such element is sold separately. We have analyzed all of the elements included in our multiple-element software arrangements and have determined that we have sufficient VSOE to allocate revenue to the maintenance components of our perpetual and term license products and to professional services. Accordingly, assuming all other revenue recognition criteria are met, we recognize license revenue from perpetual and term licenses upon delivery using the residual method, recognize revenue from maintenance ratably over the maintenance term, and recognize revenue from professional services as services are performed and accepted by the customer. We recognize revenue from TSLs ratably over the term of the license, assuming all other revenue recognition criteria are met, since there is not sufficient VSOE to allocate the TSL fee between license and maintenance services.

We make judgments related to revenue recognition. Specifically, in connection with each transaction involving our products, we must evaluate whether: (1) persuasive evidence of an arrangement exists, (2) delivery of software or services has occurred, (3) the fee for such software or services is fixed or determinable, and (4) collectability of the full license or service fee is probable. All four of these criteria must be met in order for us to recognize revenue with respect to a particular arrangement. We apply these revenue recognition criteria as follows:

• Persuasive Evidence of an Arrangement Exists. Prior to recognizing revenue on an arrangement, our customary policy is to have a written contract, signed by both the customer and by us or a purchase order from those customers that have previously negotiated a standard end-user license arrangement or purchase agreement.

• Delivery Has Occurred. We deliver our products to our customers electronically or physically. For electronic deliveries, delivery occurs when we provide access to our customers to take immediate possession of the software through downloading it to the customer’s hardware. For physical deliveries, the standard transfer terms are typically Freight on Board (FOB) shipping point. We generally ship our products or license keys promptly after acceptance of customer orders. However, a number of factors can affect the timing of product shipments and, as a result, timing of revenue recognition, including the delivery dates requested by customers and our operational capacity to fulfill product orders at the end of a fiscal quarter.

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• The Fee Is Fixed or Determinable. Our determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. Our standard payment terms for perpetual and term licenses require 75% or more of the license fee and 100% of the maintenance fee to be paid within one year. If the arrangement includes these terms, we regard the fee as fixed or determinable, and recognize all license revenue under the arrangement in full upon delivery (assuming all other revenue recognition criteria are met). If the arrangement does not include these terms, we do not consider the fee to be fixed or determinable and generally recognize revenue when customer installments are due and payable. In the case of a TSL, because of the right to exchange products or receive unspecified future technology and because VSOE for maintenance services does not exist for a TSL, we recognize revenue ratably over the term of the license, but not in advance of when customers’ installments become due and payable.

• Collectability Is Probable. We judge collectability of the arrangement fees on a customer-by-customer basis pursuant to our credit review policy. We typically sell to customers with whom we have a history of successful collection. For a new customer, or when an existing customer substantially expands its commitments, we evaluate the customer’s financial position and ability to pay and typically assign a credit limit based on that review. We increase the credit limit only after we have established a successful collection history with the customer. If we determine at any time that collectability is not probable under a particular arrangement based upon our credit review process or the customer’s payment history, we recognize revenue under that arrangement as customer payments are actually received.

Valuation of Business Combinations:

We are required to allocate the purchase price to tangible assets, liabilities and contingencies assumed, and intangible assets acquired in a business combination. Any residual purchase price is recorded as goodwill.  The allocation of the purchase price requires management to make estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets which are amortized over various estimated useful lives. Our estimates may include, but are not limited to, future cash flows of an acquired business, the appropriate discounted rate, and the cost savings expected to be derived from an acquisition. These estimates are inherently difficult, subjective and unpredictable, and if different estimates were used, the purchase price allocation to the acquired assets and liabilities could be different. In addition, we make judgments and estimates when we assign useful lives to intangible assets identified as part of our acquisitions. These estimates are also inherently uncertain and if we used different estimates, the useful life over which we amortize intangible assets would be different. Therefore, our assessment of the estimated fair value of each of these assets and liabilities can have a material effect on our Consolidated Financial Statements.

Valuation of Intangible Assets

We evaluate our intangible assets for indications of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Intangible assets consist of purchased technology, contract rights intangibles, customer relationships, trademarks and trade names, covenants not to compete, capitalized software development, and in-process research and development. Factors that could trigger an impairment review include significant under-performance relative to expected historical or projected future operating results, significant changes in the manner of our use of the acquired assets or the strategy for our overall business or significant negative industry or economic trends. If this evaluation indicates that the value of the intangible asset may be impaired, we make an assessment of the recoverability of the net carrying value of the asset over its remaining useful life. If this assessment indicates that the intangible asset is not recoverable, based on the estimated undiscounted future cash flows of the technology over the remaining useful life, we reduce the net carrying value of the related intangible asset to fair value. Any such impairment charge could be significant and could have a material adverse effect on our reported financial results. We did not record any impairment charges on our intangible assets during fiscal 2015, 2014 or 2013.

Income Taxes

Our estimates and assumptions made in our tax provisions may differ from the actual results as reflected in our income tax returns and we record the required adjustments when they are identified or resolved.

We recognize deferred tax assets and liabilities for the temporary differences between the book and tax bases of assets and liabilities using enacted tax rates in effect for the year in which we expect the differences to reverse, and for tax loss and credit carryovers. We record a valuation allowance to reduce the deferred tax assets to the amount

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that is more likely than not to be realized. In evaluating our ability to utilize our deferred tax assets, we consider all available positive and negative evidence, including our past operating results, our forecast of future taxable income on a jurisdiction by jurisdiction basis, as well as feasible and prudent tax planning strategies. These assumptions require judgment about the forecasts of future taxable income and are consistent with the plans and estimates we are using to manage the underlying businesses. We believe that the net deferred tax assets of approximately $272.0 million that are recorded on our balance sheet as of October 31, 2015 will ultimately be realized. However, if we determine in the future that it is more likely than not we will not be able to realize a portion or the full amount of deferred tax assets, we would record an adjustment to the deferred tax asset valuation allowance as a charge to earnings in the period such determination is made.

We apply a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied.

The calculation of tax liabilities involves inherent uncertainty associated with the application of complex tax laws, significant assumptions, judgments and estimates including forward-looking financial projections and geographical mix of earnings.  We are also subject to examination by various taxing authorities.  We believe we have adequately provided in our financial statements for potential additional taxes.  If we ultimately determine that these amounts are not owed, we would reverse the liability and recognize the tax benefit in the period in which we determine that the liability is no longer necessary.  If an ultimate tax assessment exceeds our estimate of tax liabilities, we would record an additional charge to earnings.

Results of Operations

Revenue Background

We generate our revenue from the sale of software licenses, maintenance and professional services, and to a small extent, hardware products. Under current accounting rules and policies, we recognize revenue from orders we receive for software licenses, services and hardware products at varying times.

• In most instances, we recognize revenue on a TSL software license order over the license term and on a term or perpetual software license order in the quarter in which the license is delivered. The weighted average license term of the TSLs and term licenses we entered into in fiscal 2015, 2014, and 2013 was 2.7 years, 2.9 years and 3.6 years, respectively.

• Revenue on contracts requiring significant modification or development is accounted for using the percentage of completion method over the period of the development.

• Revenue on hardware product orders is generally recognized in full at the time the product is shipped.

• Contingent revenue is recognized if and when the applicable event occurs.

• Revenue on maintenance orders is recognized ratably over the maintenance period (normally one year).

• Revenue on professional services orders is generally recognized after services are performed and accepted by the customer.

Our revenue in any period is equal to the sum of our time-based license, upfront license, maintenance and professional services for the period. We derive time-based license revenue largely from TSL orders received and delivered in prior quarters and to a smaller extent due to contracts in which revenue is recognized as customer installments become due and payable and from contingent revenue arrangements. We derive upfront license revenue directly from term and perpetual license and hardware product orders mostly booked and shipped during the period. We derive maintenance revenue largely from maintenance orders received in prior periods since our maintenance orders generally yield revenue ratably over a term of one year. We also derive professional services revenue primarily from orders received in prior quarters, since we recognize revenue from professional services as those services are delivered and accepted or on percentage of completion for arrangements requiring significant modification of our software, and not when they are booked.

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Our license revenue is sensitive to the mix of TSLs and perpetual or term licenses delivered during a reporting period. A TSL order typically yields lower current quarter revenue but contributes to revenue in future periods. For example, a $120,000 order for a three-year TSL delivered on the last day of a quarter typically generates no revenue in that quarter, but $10,000 in each of the 12 succeeding quarters. Conversely, a $120,000 order for perpetual and term licenses with greater than 75% of the license fee due within one year from shipment typically generates $120,000 in revenue in the quarter the product is delivered, but no future revenue. Additionally, revenue in a particular quarter may also be impacted by perpetual and term licenses in which less than 75% of the license fees and 100% of the maintenance fees are payable within one year from shipment as the related revenue will be recognized as revenue in the period when customer payments become due and payable.

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

Total Revenue

Year Ended October 31,						$ Change		% Change		$ Change		% Change
2015		2014		2013		2014 to 2015				2013 to 2014
(dollars in millions)
$	2,242.2	$	2,057.5	$	1,962.2	$	184.7	9	%	$	95.3	5	%

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

The sequential increase in total revenue from fiscal 2013 through fiscal 2015 was due to our overall organic growth and revenues from acquired companies. The increases were primarily in time-based license revenue and hardware sales.

Time-Based License Revenue

	Year Ended October 31,									$ Change		% Change		$ Change		% Change
	2015			2014			2013			2014 to 2015				2013 to 2014
	(dollars in millions)
	$	1,792.2		$	1,699.1		$	1,599.5		$	93.1	5	%	$	99.6	6	%
Percentage of total revenue	80		%	83		%	82		%

The increase in time-based license revenue for fiscal 2015 compared to fiscal 2014, and for fiscal 2014 compared to fiscal 2013, was primarily attributable to an increase in TSL license revenue due to our overall growth, including contributions of revenue from acquired companies.

Upfront License Revenue

	Year Ended October 31,									$ Change		% Change		$ Change		% Change
	2015			2014			2013			2014 to 2015				2013 to 2014
	(dollars in millions)
	$	197.3		$	135.8		$	132.0		$	61.5	45	%	$	3.8	3	%
Percentage of total revenue	9		%	7		%	7		%

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

The increase in upfront license revenue for fiscal 2015 compared to fiscal 2014 was primarily attributable to an increase in the sale of hardware products.

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Upfront license revenue for fiscal 2014 compared to fiscal 2013 was relatively flat with a slight increase in the sale of perpetual licenses to IP, Systems and Software Integrity products.

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

Maintenance and Service Revenue

	Year Ended October 31,									$ Change			% Change		$ Change			% Change
	2015			2014			2013			2014 to 2015					2013 to 2014
	(dollars in millions)
Maintenance revenue	$	70.1		$	74.3		$	79.2		$	(4.2	)	(6	)%	$	(4.9	)	(6	)%
Professional service and other revenue	182.6			148.3			151.5			$	34.3		23	%	$	(3.2	)	(2	)%
Total	$	252.7		$	222.6		$	230.7		$	30.1		14	%	$	(8.1	)	(4	)%
Percentage of total revenue	11		%	11		%	12		%

Changes in maintenance revenue are generally attributable to the timing of contract renewals and the type of contracts that bundle maintenance.

The decrease in maintenance revenue for fiscal 2015 compared to fiscal 2014, and in fiscal 2014 compared to fiscal 2013, was primarily due to the timing of contract renewals and the type of contracts that bundle maintenance.

The increase in professional services and other revenue for fiscal 2015 compared to fiscal 2014 was primarily due to the increase in, and timing of, IP customization projects that are accounted for using the percentage of completion method.

The decrease in professional services and other revenue for fiscal 2014 compared to fiscal 2013 was primarily due to the timing of IP customization projects that are accounted for using the percentage of completion method.

Cost of Revenue and Operating Expenses

	Year Ended October 31,									$ Change		% Change		$ Change		% Change
	2015			2014			2013			2014 to 2015				2013 to 2014
	(dollars in millions)
Cost of revenue	$	518.9		$	456.9		$	453.6		$	62.0	14	%	$	3.3	1	%
Operating expenses	1,456.8			1,351.9			1,262.2			$	104.9	8	%	$	89.7	7	%
Total	$	1,975.7		$	1,808.8		$	1,715.8		$	166.9	9	%	$	93.0	5	%
Total expenses as a percentage of total revenue	88		%	88		%	87		%

Our expenses are generally impacted by changes in personnel-related costs including salaries, benefits, stock compensation and variable compensation; changes in amortization; and changes in selling and marketing expenses. The increase in our expenses compared to prior fiscal years was primarily due to an increase in personnel-related costs, driven by increased headcount from our organic growth and acquisitions, and related fixed charges including facilities; amortization of intangible assets; and depreciation. We allocate certain human resource programs, information technology and facility expenses among our functional income statement categories based on headcount within each functional area. Annually, or upon a significant change in headcount (such as a workforce reduction, realignment or acquisition) or other factors, management reviews the allocation methodology and expenses included in the allocation pool.

Foreign currency fluctuations, net of hedging, did not have a significant impact on expenses during fiscal 2015 as compared to fiscal 2014, or fiscal 2014 as compared to fiscal 2013. See Note 5 of Notes to Consolidated Financial Statements for details on our foreign exchange hedging programs.

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Cost of Revenue

	Year Ended October 31,									$ Change		% Change		$ Change			% Change
	2015			2014			2013			2014 to 2015				2013 to 2014
	(dollars in millions)
Cost of license revenue	$	303.6		$	268.4		$	268.9		$	35.2	13	%	$	(0.5	)	—	%
Cost of maintenance and service revenue	105.3			87.2			80.4			$	18.1	21	%	$	6.8		8	%
Amortization of intangible assets	110.0			101.3			104.3			$	8.7	9	%	$	(3.0	)	(3	)%
Total	$	518.9		$	456.9		$	453.6		$	62.0	14	%	$	3.3		1	%
Percentage of total revenue	23		%	22		%	23		%

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

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

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

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

The increase of cost of revenue for fiscal 2015 compared to fiscal 2014 was primarily due to increases of $19.8 million in product costs due to increased sales, $16.8 million in costs related to our professional services revenue, $11.4 million in personnel-related costs driven by higher headcount, including those from acquisitions, $8.7 million in amortization of intangible assets, and higher functionally allocated expenses of $2.6 million.

Cost of revenue remained relatively flat in fiscal 2014 compared to fiscal 2013 as increases in personnel-related costs of $20.4 million, driven by higher headcount and increases in consulting services, were partially offset by lower product costs of $15.3 million, primarily due to purchase accounting adjustments that were recorded in fiscal 2013, and a decrease of $3.0 million in amortization of intangible assets due to certain intangible assets being fully amortized.

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

Operating Expenses

Research and Development

	Year Ended October 31,									$ Change		% Change		$ Change		% Change
	2015			2014			2013			2014 to 2015				2013 to 2014
	(dollars in millions)
	$	776.2		$	718.8		$	669.2		$	57.4	8	%	$	49.6	7	%
Percentage of total revenue	35		%	35		%	34		%

The increase in research and development expense in fiscal 2015 compared to fiscal 2014 was primarily due to an increase of $39.6 million in personnel-related costs driven by headcount increases, including those from acquisitions, and functionally allocated expenses that were higher by $12.0 million.

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The increase in research and development expense in fiscal 2014 compared to fiscal 2013 was primarily due to an increase of $36.5 million in personnel-related costs driven by headcount increases, including those from acquisitions, functionally allocated expenses that were higher by $12.2 million, and a $3.2 million increase in consultant and contractor costs.

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

Sales and Marketing

	Year Ended October 31,									$ Change		% Change		$ Change		% Change
	2015			2014			2013			2014 to 2015				2013 to 2014
	(dollars in millions)
	$	474.4		$	453.1		$	426.0		$	21.3	5	%	$	27.1	6	%
Percentage of total revenue	21		%	22		%	22		%

Changes in commissions and other variable compensation are generally attributable to the volume of contracts and timing of shipments based on contract requirements.

The increase in sales and marketing expense for fiscal 2015 compared with fiscal 2014 was primarily due to an increase of $13.5 million in personnel-related costs driven by headcount increases, including those from acquisitions, $2.4 million in variable compensation due to higher shipments and higher functionally allocated expenses of $2.7 million.

The increase in sales and marketing expense for fiscal 2014 compared with fiscal 2013 was primarily due to an increase of $21.2 million in personnel-related costs driven by headcount increases, including those from acquisitions, an increase of $4.0 million in variable compensation due to higher shipments and higher functionally allocated expenses of $2.0 million.

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

General and Administrative

	Year Ended October 31,									$ Change		% Change		$ Change		% Change
	2015			2014			2013			2014 to 2015				2013 to 2014
	(dollars in millions)
	$	165.1		$	155.2		$	143.8		$	9.9	6	%	$	11.4	8	%
Percentage of total revenue	7		%	8		%	7		%

The increase in general and administrative expenses for fiscal 2015 compared with fiscal 2014 was primarily due to increases of $20.0 million in facilities and depreciation expenses including those from acquisitions, $3.9 million in personnel-related costs primarily due to higher headcount, and $5.2 million in acquisition-related professional services costs. The increases were partially offset by higher allocations of $20.5 million in expenses to other functions compared to the same period in fiscal 2014, due to increased spending in allocated costs, resulting from increased headcount.

The increase in general and administrative expenses for fiscal 2014 compared with fiscal 2013 was primarily due to increases of $10.4 million in facilities and depreciation expenses, $9.8 million in professional service costs, $2.4 million of acquisition-related costs, and $1.2 million in personnel-related costs. The increases were partially offset by higher allocations of $15.3 million in expenses to other functions compared to the same period in fiscal 2013, due to increased spending in allocated costs, resulting from increased headcount.

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

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Change in Fair Value of Deferred Compensation

The income or loss arising from the change in fair value of our non-qualified deferred compensation plan obligation is recorded in cost of sales and each functional operating expense, with the offsetting change in the fair value of the related assets recorded in other income (expense), net. These assets are classified as trading securities. There is no overall impact to our net income from the income or loss of our deferred compensation plan obligation and asset.

Acquired In-Process Research and Development

In-process research and development (IPR&D) costs relate to in-process technologies acquired in acquisitions. The value assigned to IPR&D is determined by considering the importance of each project to our overall development plan, estimating costs to develop the IPR&D into commercially viable products, estimating the resulting net cash flows from such projects when completed and discounting the net cash flows back to their present value. The utilized discount rate is our weighted average cost of capital, taking into account the inherent uncertainties in future revenue estimates and the profitability of such technology, the successful development of the IPR&D, its useful life and the uncertainty of technological advances, all of which are unknown at the time of determination.

Upon completion of development, the underlying intangible asset is amortized over its estimated useful life and recorded in cost of revenue. IPR&D projects acquired are anticipated to be completed over a period of one to three years from the date of the acquisition. See Note 4 of Notes to Consolidated Financial Statements.

Amortization of Intangible Assets

Amortization of intangible assets includes the amortization of contract rights and the amortization of core/developed technology, trademarks, trade names, customer relationships, covenants not to compete, and in-process research and development related to acquisitions completed in prior years. Amortization expense is included in the consolidated statements of operations as follows:

	Year Ended October 31,									$ Change		% Change		$ Change			% Change
	2015			2014			2013			2014 to 2015				2013 to 2014
	(dollars in millions)
Included in cost of revenue	$	110.0		$	101.3		$	104.3		$	8.7	9	%	$	(3.0	)	(3	)%
Included in operating expenses	26.0			24.8			23.2			$	1.2	5	%	$	1.6		7	%
Total	$	136.0		$	126.1		$	127.5		$	9.9	8	%	$	(1.4	)	(1	)%
Percentage of total revenue	6		%	6		%	6		%

Amortization of capitalized software development costs is not presented in the above table and is included in cost of license revenue in the consolidated statements of operations.

The increase in amortization of intangible assets for fiscal 2015 compared with fiscal 2014 was primarily due to the additions of acquired intangible assets, including from our fiscal 2015 acquisitions, which were partially offset by certain intangible assets being fully amortized.

Amortization of intangible assets was relatively flat for fiscal 2014 compared with fiscal 2013 as the full amortization of certain intangible assets was offset by additions of intangible assets in fiscal 2014.

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Restructuring Charges

In November 2014, we initiated a restructuring program that included a voluntary retirement program (VRP) and a minimal headcount reduction program. The VRP was offered to certain eligible employees in the United States and enrollment for those employees was completed on November 21, 2014. As of October 31, 2015, the program has been completed, and no further charges are anticipated.

The following is a summary of our restructuring activities:

	Balance at Beginning of Period		Costs Incurred (Reduced)		Cash Payments			Balance at End of Period
	(in millions)
Fiscal 2015	$	—	$	15.1	$	(15.1	)	$	—

See Note 2 of the Notes to Consolidated Financial Statements.

Other Income (Expense), Net

	Year Ended October 31,									$ Change			% Change		$ Change			% Change
	2015			2014			2013			2014 to 2015					2013 to 2014
	(dollars in millions)
Interest income	$	2.8		$	1.3		$	1.9		$	1.5		115	%	$	(0.6	)	(32	)%
Interest expense	(2.8		)	(1.9		)	(1.7		)	(0.9		)	47	%	(0.2		)	12	%
Gain (loss) on assets related to executive deferred compensation plan	3.7			10.8			18.5			(7.1		)	(66	)%	(7.7		)	(42	)%
Foreign currency exchange gain (loss)	6.3			1.2			6.0			5.1			425	%	(4.8		)	(80	)%
Other, net	5.1			12.0			4.5			(6.9		)	(58	)%	7.5			167	%
Total	$	15.1		$	23.4		$	29.2		$	(8.3	)	(35	)%	$	(5.8	)	(20	)%

The net decrease in other income (expense) in fiscal 2015 as compared to fiscal 2014 was primarily due to a gain from the sale of a non-marketable equity investment in fiscal 2014, and lower gains in the market value of our executive deferred compensation plan assets, which were partially offset by increased foreign currency exchange gains in the current year as a result of the strengthened U.S. dollar against the related foreign currencies.

The net decrease in other income (expense) in fiscal 2014 as compared to fiscal 2013 was primarily due to lower gains in the market value of our executive deferred compensation plan assets and decreased foreign currency exchange gains as a result of less movement in foreign currency exchange rates. The decreases were partially offset by a gain from the sale of a non-marketable equity investment in fiscal 2014 that was recorded in other, net.

Income Taxes

Our effective tax rate for fiscal 2015 included tax expense from the integration of acquired technologies of $33.0 million partially offset by tax benefits from the reinstatement of the U.S. federal research tax credit of approximately $12.4 million, a settlement with the Internal Revenue Service (IRS) of $4.0 million for fiscal 2014, and a settlement with the Taiwan tax authorities of $2.3 million (net tax benefit resulting from fiscal years 2012 and 2013). The reinstatement of the research tax credit resulted in an additional tax credit for ten months of fiscal 2014 as well as two months of fiscal 2015, which was recorded in fiscal 2015. Our effective tax rate for fiscal 2014 included tax benefits from a settlement with the IRS of $15.5 million (for fiscal years 2012 through 2013), from federal statute of limitations lapses of $6.7 million, and a settlement with the Taiwan tax authorities of $3.9 million (net tax benefit resulting from fiscal years 2009 and 2010 and application of settlements to other open fiscal years). Our effective tax rate for fiscal 2013 included tax benefits from the reinstatement of the U.S. federal research tax credit of approximately $19.0 million, reversal of deferred taxes resulting from the merger of a foreign affiliate of $6.8 million, and settlement with the IRS of certain issues related to fiscal 2012 of $1.1 million. The reinstatement of the research tax credit resulted in an additional tax credit for ten months of fiscal 2012 as well as a full year credit for fiscal 2013, compared to only two months of credit in fiscal 2014 as a result of the expiration of the credit on December 31, 2013. For further discussion of the provision for income taxes and settlements, see Note 11 of the Notes to Consolidated Financial Statements.

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Liquidity and Capital Resources

Our sources of cash, cash equivalents and short-term investments are funds generated from our business operations and funds that may be drawn down under our revolving credit and term loan facilities. As of October 31, 2015, we held an aggregate of $155.5 million in cash, cash equivalents and short-term investments in the United States and an aggregate of $809.4 million in our foreign subsidiaries. Funds held in our foreign subsidiaries are mostly generated from revenue outside North America. At present, such foreign funds are considered to be indefinitely reinvested in foreign countries to the extent of indefinitely reinvested foreign earnings. However, in the event funds from foreign subsidiaries were needed to fund cash needs in the U.S. and if U.S. taxes have not already been previously accrued, we would be required to accrue and pay additional U.S. taxes in order to repatriate these funds.

The following sections discuss changes in our balance sheet, cash flows, and other commitments on our liquidity and capital resources during fiscal 2015.

Cash and Cash Equivalents

	Year Ended October 31,				$ Change			% Change
	2015		2014
	(dollars in millions)
Cash and cash equivalents	$	836.2	$	985.8	$	(149.6	)	(15	)%

Our cash decreased primarily due to cash used for stock repurchases under our accelerated stock repurchase agreements entered into in December 2014 (the December 2014 ASR) and August 2015 (the August 2015 ASR), debt repayments, and cash paid for acquisitions and intangible assets. The decrease was partially offset by funds generated from our operations and proceeds from our senior unsecured revolving credit facility.

Cash Flows

	Year Ended October 31,									$ Change			$ Change
	2015			2014			2013			2014 to 2015			2013 to 2014
	(dollars in millions)
Cash provided by operating activities	$	495.2		$	551.0		$	496.7		$	(55.8	)	$	54.3
Cash used in investing activities	(559.6		)	(497.3		)	(66.1		)	(62.3		)	(431.2		)
Cash used in financing activities	(62.1		)	(73.7		)	(98.0		)	11.6			24.3

Cash Provided by Operating Activities

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

Fiscal 2015compared to fiscal 2014. The decrease in cash provided by operating activities was primarily driven by higher disbursements for operations, including vendors, which were partially offset by higher cash collections.

Fiscal 2014compared to fiscal 2013. The increase in cash provided by operating activities was primarily driven by higher cash collections, which were partially offset by higher disbursements for operations, including vendors.

Cash Used in Investing Activities

Fiscal 2015compared to fiscal 2014. The increase in cash used in investing activities was primarily driven by purchases of short-term investments, net of proceeds from the sales of our short-term investments, of $129.7 million, partially offset by a decrease in cash paid for acquisitions and intangible assets, net of cash acquired, of $54.5 million.

Fiscal 2014compared to fiscal 2013. The increase in cash used in investing activities was primarily driven by cash paid for acquisitions and intangible assets, net of cash acquired, of $394.6 million

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Cash Used in Financing Activities

Fiscal 2015compared to fiscal 2014. The decrease in cash used in financing activities was primarily due to an increase of proceeds from our senior unsecured revolving credit facility of $260.0 million which was partially offset by an increase of $160.3 million for our stock repurchase activities and an increase of $99.5 million for repayment of debt.

Fiscal 2014compared to fiscal 2013. The decrease in cash used in financing activities was primarily due to the acquisition of a non-controlling interest in SpringSoft, Inc. for $44.0 million in fiscal 2013 and a decrease of $25.3 million in purchases of treasury stock, partially offset by a decrease of $49.8 million in proceeds from issuances of common stock. We repaid our senior unsecured revolving credit facility balance of $200.0 million in the third quarter of fiscal 2014, which had been drawn down during the second quarter of fiscal 2014.

Accounts Receivable, net

Year Ended October 31,
2015	2014	$ Change	% Change
(dollars in millions)
$385.7	$326.7	$59.0	18%

Our accounts receivable and days sales outstanding (DSO) are primarily driven by our billing and collections activities. Our DSO was 60 days at October 31, 2015 and 55 days at October 31, 2014. The increase in DSO is attributable to the growth in our business and timing of billings at the end of fiscal 2015.

Working Capital

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

	Year Ended October 31,
	2015			2014		$ Change			% Change
	(dollars in millions)
Current assets	$	1,563.8		$	1,504.7	$	59.1		4	%
Current liabilities	1,578.4			1,386.8		$	191.6		14	%
Working capital	$	(14.6	)	$	117.9	$	(132.5	)	(112	)%

Working capital at the end of fiscal 2015 was lower than at the end of fiscal 2014 primarily due to (1) a $174.7 million increase in short-term debt, (2) a $149.6 million decrease in cash and cash equivalents, and (3) a $40.0 million increase in deferred revenue due to timing. These changes in working capital were partially offset by (1) a $128.7 million increase in short-term investments, (2) a $59.0 million increase in accounts receivable due to the timing of our billings at the end of fiscal 2015, and (3) a $20.2 million increase in income taxes receivable and prepaid taxes.

Other

Our available-for-sale securities as of October 31, 2015 consisted of investment-grade U.S. government agency securities, asset-backed securities, corporate debt securities, commercial paper, certificates of deposit, money market funds, and others. We follow an established investment policy and set of guidelines to monitor, manage and limit our exposure to interest rate and credit risk. The policy sets forth credit quality standards and limits our exposure to any one issuer. As of October 31, 2015, we had no direct holdings in structured investment vehicles, sub-prime mortgage-backed securities or collateralized debt obligations and no exposure to these financial instruments through our indirect holdings in money market mutual funds. During fiscal 2015, we had no impairment charge associated with our available-for-sale securities portfolio. While we cannot predict future market conditions or market liquidity, we regularly review our investments and associated risk profiles, which we believe will allow us to effectively manage the risks of our investment portfolio.

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

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We believe that our current cash and cash equivalents, short-term investments, cash generated from operations, and available credit under our Revolver (defined below) will satisfy our routine business requirements for at least the next 12 months and the foreseeable future.

Other Commitments

On February 17, 2012, we entered into an agreement with several lenders (the Credit Agreement) providing for (i) a $350.0 million senior unsecured revolving credit facility (the Revolver) and (ii) a $150.0 million senior unsecured term loan facility (the Term Loan). Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due in October 2016. We can elect to make prepayments on the Term Loan, in whole or in part, without premium or penalty. On May 19, 2015, the Credit Agreement was amended and restated in order to increase the size of the Revolver from $350.0 million to $500.0 million and to extend the termination date of the Revolver from October 14, 2016 to May 19, 2020. The amended and restated Credit Agreement also replaced a financial covenant requiring us to maintain a minimum specified level of cash with a covenant requiring a minimum interest coverage ratio. Subject to obtaining additional commitments from lenders, the principal amount of the loans provided under the amended and restated Credit Agreement may be increased by us by up to an additional $150.0 million through May 2019. The amended and restated Credit Agreement contains financial covenants requiring us to operate within a maximum leverage ratio and a minimum interest coverage ratio, as well as other non-financial covenants. As of October 31, 2015, we were in compliance with all financial covenants.

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

Contractual Obligations

The following table summarizes our contractual obligations as of October 31, 2015:

	Total		Fiscal 2016		Fiscal 2017/ Fiscal 2018		Fiscal 2019/ Fiscal 2020		Thereafter		Other
	(in thousands)
Lease Obligations:
Capital Lease	$	6	$	6	$	—	$	—	$	—	$	—
Operating Leases(1)	366,641		52,266		88,674		60,970		164,731		—
Purchase Obligations(2)	128,003		123,799		4,169		35		—		—
Revolver(3)	160,000		160,000		—		—		—		—
Term Loan(3)	45,000		45,000		—		—		—		—
Other Long-Term Obligations(4)	3,115		675		1,350		1,090		—		—
Long term accrued income taxes(5)	37,763		—		—		—		—		37,763
Total	$	740,528	$	381,746	$	94,193	$	62,095	$	164,731	$	37,763

(1) See Note 7 of Notes to Consolidated Financial Statements.

(2) Purchase obligations represent an estimate of all open purchase orders and contractual obligations in the ordinary course of business for which we have not received the goods or services as of October 31, 2015. Although open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule and adjust our requirements based on our business needs prior to the delivery of goods or performance of services.

(3) These commitments relate to the principal of the Revolver or the Term Loan as discussed in Other Commitments above.

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(4) These other obligations include fees associated with our Term Loan and Revolver.

(5) Long-term accrued income taxes represent uncertain tax benefits as of October 31, 2015. Currently, a reasonably reliable estimate of timing of payments in individual years beyond fiscal 2015 cannot be made due to uncertainties in timing of the commencement and settlement of potential tax audits.

The expected timing of payments of the obligations discussed above is estimated based on current information. Timing of payment and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations.

Off-Balance Sheet Arrangements

As of October 31, 2015, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.

 Item 7A.     Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk. Our exposure to market risk for changes in interest rates relates to our cash, cash equivalents short-term investments and outstanding debt. As of October 31, 2015, all of our cash, cash equivalents and debt were at short-term variable and fixed interest rates. While par value generally approximates fair value on variable instruments, rising interest rates over time would increase both our interest income and our interest expense. The primary objective of our investment activities is to preserve the principal while at the same time maximizing yields without significantly increasing the risk. To achieve this objective, we maintain our portfolio of investments in a mix of tax-exempt and taxable instruments that meet high credit quality standards, as specified in our investment policy. None of these investments are held for trading purposes. Our policy also limits the amount of credit exposure to any one issue, issuer and type of instrument.

The following tables present our cash equivalents, short-term investments and debt by fiscal year of expected maturity and average interest rates:

As of October 31, 2015

	Maturing in Year Ending October 31,
	2016			2017			2018			Total		Fair Value
	(in thousands)
Cash & Cash equivalent (variable rate)	$	584,446		$	—		$	—		$	584,446	$	584,446
Average interest rate	0.23		%	—		%	—		%
Short-term investments (variable rate)	$	2,150		$	3,352		$	1,198		$	6,700	$	6,700
Average interest rate	0.59		%	0.69		%	0.73		%
Short-term investments (fixed rate)	$	98,014		$	23,334		$	699		$	122,047	$	122,047
Average interest rate	0.60		%	1.04		%	1.17		%
Short-term debt (variable rate)
Term Loan	$	45,000		$	—		$	—		$	45,000	$	45,000
Average interest rate	LIBOR + 1.125%			—		%	—		%
Revolver	$	160,000		$	—		$	—		$	160,000	$	160,000
Average interest rate	LIBOR + 1.000%			—		%	—		%

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As of October 31, 2015, the stated maturities of our short-term investments which are classified as available for sale securities are:

	Fair Value
	(in thousands)
Due in 1 year or less	$	76,784
Due in 2-5 years	51,871
Due in 5-10 years	92
Total	$	128,747

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

Foreign Currency Risk. We operate internationally and are exposed to potentially adverse movements in currency exchange rates. The functional currency of the majority of our active foreign subsidiaries is the foreign subsidiary’s local currency. We enter into hedges in the form of foreign currency forward contracts to reduce our exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions including: (1) certain assets and liabilities, (2) shipments forecasted to occur within approximately one month, (3) future billings and revenue on previously shipped orders, and (4) certain future intercompany invoices denominated in foreign currencies. The foreign currency contracts are carried at fair value and denominated in various currencies as listed in the tables below. The duration of forward contracts usually ranges from one month to 22 months. A description of our accounting for foreign currency contracts is included in Note 2 and Note 5 of Notes to Consolidated Financial Statements.

The success of our hedging activities depends upon the accuracy of our estimates of various balances and transactions denominated in non-functional currencies. To the extent our estimates are correct, gains and losses on our foreign currency contracts will be offset by corresponding losses and gains on the underlying transactions. For example, if the Euro were to depreciate by 10% compared to the U.S. dollar prior to the settlement of the Euro forward contracts listed in the table below providing information as of October 31, 2015, the fair value of the contracts would decrease by approximately $9.8 million, and we would be required to pay approximately $9.8 million to the counterparty upon contract maturity. At the same time, the U.S. dollar value of our Euro-based expenses would decline, resulting in a gain and positive cash flow of approximately $9.8 million that would offset the loss and negative cash flow on the maturing forward contracts.

Net unrealized losses of approximately $14.8 million and $11.1 million, net of tax, are included in accumulated other comprehensive income (loss) in our consolidated balance sheets as of October 31, 2015 and 2014, respectively.

If estimates of our balances and transactions prove inaccurate, we will not be completely hedged, and we will record a gain or loss, depending upon the nature and extent of such inaccuracy.

We do not use foreign currency forward contracts for speculative or trading purposes. We enter into foreign exchange forward contracts with financial institutions and have not experienced nonperformance by counterparties. Further, we anticipate performance by all counterparties to such agreements.

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The following table provides information about the gross notional values of our foreign currency contracts as of October 31, 2015:

	Gross Notional Amount in U.S. Dollars		Average Contract Rate
	(in thousands)
Forward Contract Values:
Japanese yen	$	268,129	118.975
Euro	97,571		0.871
Chinese renminbi	94,913		6.390
Taiwanese dollar	65,727		31.392
Indian Rupee	83,275		67.259
Canadian dollar	46,467		1.268
Korean won	19,692		1,166.980
British pound sterling	27,649		0.650
Israeli shekel	23,829		3.886
Armenian dram	15,929		470.089
Swiss franc	8,305		0.956
Swedish krona	897		8.494
Singapore dollar	8,071		1.402
Chilean peso	2,423		704.640
Hungarian forint	18,875		282.234
	$	781,752

The following table provides information about the gross notional values of our foreign currency contracts as of October 31, 2014:

	Gross Notional Amount in U.S. Dollars		Average Contract Rate
	(in thousands)
Forward Contract Values:
Japanese yen	$	319,063	105.058
Euro	117,547		0.749
Chinese renminbi	88,557		6.195
Taiwanese dollar	66,484		29.808
Indian Rupee	62,118		65.072
Canadian dollar	34,890		1.099
Korean won	20,843		1,036.368
British pound sterling	19,884		0.607
Israeli shekel	18,481		3.578
Armenian dram	15,968		394.548
Swiss franc	8,600		0.908
Swedish krona	7,337		7.204
Singapore dollar	6,910		1.259
Chilean peso	2,882		594.037
Russian ruble	2,624		38.273
Hungarian forint	1,749		243.531
	$	793,937

Equity Risk. We have approximately $10.3 million and $10.9 million of non-marketable equity securities in privately held companies as of October 31, 2015 and 2014, respectively. These investments are accounted for under the cost or equity methods. The cost basis of securities sold is based on the specific identification method. The securities of privately held companies are reported at carrying value. Investments are written down to the fair value

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if there are any events or changes in circumstances that indicate any other than temporary decline in the value. During fiscal 2015 and 2014, we had no impairments to our investment portfolio. None of our investments are held for speculation purposes.

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 Item 8.     Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders

Synopsys, Inc.:

We have audited the accompanying consolidated balance sheets of Synopsys, Inc. and subsidiaries (the Company) as of October 31, 2015 and November 1, 2014, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended October 31, 2015. We also have audited the internal control over financial reporting of Synopsys, Inc. as of October 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting appearing under item 9A(b). Our responsibility is to express an opinion on these consolidated financial statements and an opinion on internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Synopsys, Inc. and subsidiaries as of October 31, 2015 and November 1, 2014, and the results of their operations and their cash flows for each of the years in the three-year period ended October 31, 2015, in conformity with U.S. generally accepted accounting principles. Also in our opinion, Synopsys, Inc. maintained, in all material respects, effective internal control over financial reporting as of October 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

/s/ KPMG LLP

Santa Clara, California

December 14, 2015

45

SYNOPSYS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value amounts)

	October 31,
	2015			2014
ASSETS
Current assets:
Cash and cash equivalents	$	836,188		$	985,762
Short-term investments	128,747			—
Total cash, cash equivalents and short-term investments	964,935			985,762
Accounts receivable, net of allowances of $2,561 and $2,026, respectively	385,694			326,727
Deferred income taxes	94,994			111,449
Income taxes receivable and prepaid taxes	46,732			26,496
Prepaid and other current assets	71,446			54,301
Total current assets	1,563,801			1,504,735
Property and equipment, net	263,077			249,098
Goodwill	2,471,241			2,255,708
Intangible assets, net	363,659			365,030
Long-term prepaid taxes	18,736			17,645
Long-term deferred income taxes	178,915			208,156
Other long-term assets	186,310			175,127
Total assets	$	5,045,739		$	4,775,499
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	385,542		$	397,113
Accrued income taxes	19,565			31,404
Deferred revenue	968,246			928,242
Short-term debt	205,000			30,000
Total current liabilities	1,578,353			1,386,759
Long-term accrued income taxes	37,763			50,952
Long-term deferred revenue	93,613			77,646
Long-term debt	—			45,000
Other long-term liabilities	202,021			158,972
Total liabilities	1,911,750			1,719,329
Stockholders’ equity:
Preferred Stock, $0.01 par value: 2,000 shares authorized; none outstanding	—			—
Common Stock, $0.01 par value: 400,000 shares authorized; 155,157 and 155,965 shares outstanding, respectively	1,552			1,560
Capital in excess of par value	1,610,460			1,614,603
Retained earnings	1,725,727			1,551,592
Treasury stock, at cost: 2,107 and 1,299 shares, respectively	(98,375		)	(49,496		)
Accumulated other comprehensive income (loss)	(105,375		)	(62,089		)
Total stockholders’ equity	3,133,989			3,056,170
Total liabilities and stockholders’ equity	$	5,045,739		$	4,775,499

See accompanying notes to consolidated financial statements.

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SYNOPSYS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

	Year Ended October 31,
	2015		2014		2013
Revenue:
Time-based license	$	1,792,212	$	1,699,135	$	1,599,464
Upfront license	197,325		135,757		132,018
Maintenance and service	252,674		222,580		230,732
Total revenue	2,242,211		2,057,472		1,962,214
Cost of revenue:
License	303,633		268,348		268,910
Maintenance and service	105,242		87,226		80,338
Amortization of intangible assets	110,045		101,311		104,304
Total cost of revenue	518,920		456,885		453,552
Gross margin	1,723,291		1,600,587		1,508,662
Operating expenses:
Research and development	776,229		718,768		669,197
Sales and marketing	474,407		453,079		425,982
General and administrative	165,097		155,215		143,791
Amortization of intangible assets	26,004		24,808		23,199
Restructuring charges	15,088		—		—
Total operating expenses	1,456,825		1,351,870		1,262,169
Operating income	266,466		248,717		246,493
Other income (expense), net	15,144		23,425		29,173
Income before provision for income taxes	281,610		272,142		275,666
Provision (benefit) for income taxes	55,676		13,018		27,866
Net income	$	225,934	$	259,124	$	247,800
Net income per share:
Basic	$	1.46	$	1.67	$	1.62
Diluted	$	1.43	$	1.64	$	1.58
Shares used in computing per share amounts:
Basic	154,957		155,054		153,319
Diluted	158,065		157,710		156,601

See accompanying notes to consolidated financial statements.

47

SYNOPSYS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

	Year Ended October 31,
	2015			2014			2013
Net income	$	225,934		$	259,124		$	247,800
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(39,567		)	(24,093		)	(12,726		)
Change in unrealized gains (losses) on investments, net of tax of $0, for fiscal 2015	(28		)	—			—
Cash flow hedges:
Deferred gains (losses), net of tax of $7,107, $(3,108), and $2,999 for fiscal years 2015, 2014 and 2013, respectively	(18,614		)	(5,419		)	6,057
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(6,212), $(125), and $(540) for fiscal years 2015, 2014 and 2013, respectively	14,923			(3,882		)	(6,565		)
Other comprehensive income (loss), net of tax effects	(43,286		)	(33,394		)	(13,234		)
Comprehensive income	$	182,648		$	225,730		$	234,566

See accompanying notes to consolidated financial statements.

48

SYNOPSYS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

	Common Stock					Capital in Excess of Par Value			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total  Synopsys Stockholders’ Equity			Non-controlling Interest			Total Equity
	Shares		Amount
Balance at October 31, 2012	150,899		$	1,509		$	1,585,034		$	1,098,694		$	(168,090	)	$	(15,461	)	$	2,501,686		$	42,285		$	2,543,971
Net income									247,800									247,800						247,800
Other comprehensive income (loss), net of tax effects															(13,234		)	(13,234		)				(13,234		)
Purchases of treasury stock	(3,996	)	(40		)	40						(145,016		)				(145,016		)				(145,016		)
Common stock issued	7,266		73			(55,312		)	(21,640		)	206,438						129,559						129,559
Stock-based compensation						67,482												67,482						67,482
Acquisition of non-controlling interest																					(42,285		)	(42,285		)
Balance at October 31, 2013	154,169		$	1,542		$	1,597,244		$	1,324,854		$	(106,668	)	$	(28,695	)	$	2,788,277		$	—		$	2,788,277
Net income									259,124									259,124						259,124
Other comprehensive income (loss), net of tax effects															(33,394		)	(33,394		)				(33,394		)
Purchases of treasury stock	(3,092	)	(31		)	31						(119,747		)				(119,747		)				(119,747		)
Common stock issued	4,888		49			(62,112		)	(32,386		)	176,919						82,470						82,470
Stock-based compensation						79,440												79,440						79,440
Balance at October 31, 2014	155,965		$	1,560		$	1,614,603		$	1,551,592		$	(49,496	)	$	(62,089	)	$	3,056,170		$	—		$	3,056,170
Net income									225,934									225,934						225,934
Other comprehensive income (loss), net of tax effects															(43,286		)	(43,286		)				(43,286		)
Purchases of treasury stock	(5,672	)	(57		)	57						(260,000		)				(260,000		)				(260,000		)
Equity forward contract						(20,000		)										(20,000		)				(20,000		)
Common stock issued	4,864		49			(74,845		)	(51,799		)	211,121						84,526						84,526
Stock-based compensation						86,400												86,400						86,400
Tax benefit from stock-based compensation						4,245												4,245						4,245
Balance at October 31, 2015	155,157		$	1,552		$	1,610,460		$	1,725,727		$	(98,375	)	$	(105,375	)	$	3,133,989		$	—		$	3,133,989

See accompanying notes to consolidated financial statements.

49

SYNOPSYS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Year Ended October 31,
	2015			2014			2013
Cash flow from operating activities:
Net income	$	225,934		$	259,124		$	247,800
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation	211,821			192,826			187,404
Stock compensation	86,400			79,440			67,511
Allowance for doubtful accounts	1,300			(1,250		)	102
(Gain) loss on sale of investments	(109		)	(6,999		)	(868		)
Excess tax benefits from stock-based compensation	(4,245		)	—			—
Deferred income taxes	36,883			(17,100		)	(676		)
Net changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	(56,533		)	(65,018		)	37,590
Prepaid and other current assets	(23,106		)	1,836			(12,063		)
Other long-term assets	(16,259		)	(23,270		)	(27,468		)
Accounts payable and accrued liabilities	27,568			40,645			(1,135		)
Income taxes	(44,633		)	(9,095		)	(2,306		)
Deferred revenue	50,139			99,814			814
Net cash provided by operating activities	495,160			550,953			496,705
Cash flows from investing activities:
Proceeds from sales and maturities of short-term investments	109,173			—			—
Purchases of short-term investments	(238,902		)	—			—
Proceeds from sales of long-term investments	—			7,774			989
Proceeds from sale of property and equipment	—			—			2,000
Purchases of property and equipment	(86,965		)	(103,275		)	(65,459		)
Cash paid for acquisitions and intangible assets, net of cash acquired	(340,153		)	(394,623		)	—
Capitalization of software development costs	(3,682		)	(3,638		)	(3,609		)
Other	900			(3,488		)	—
Net cash used in investing activities	(559,629		)	(497,250		)	(66,079		)
Cash flows from financing activities:
Acquisition of non-controlling interests	—			—			(44,004		)
Proceeds from credit facility	460,000			200,000			—
Repayment of debt	(330,425		)	(230,968		)	(30,712		)
Issuances of common stock	84,904			82,083			131,914
Purchase of equity forward contract	(20,000		)	—			—
Purchases of treasury stock	(260,000		)	(119,747		)	(145,016		)
Excess tax benefits from stock-based compensation	4,245			—			—
Other	(794		)	(5,057		)	(10,167		)
Net cash used in financing activities	(62,070		)	(73,689		)	(97,985		)
Effect of exchange rate changes on cash and cash equivalents	(23,035		)	(16,693		)	(10,582		)
Net change in cash and cash equivalents	(149,574		)	(36,679		)	322,059
Cash and cash equivalents, beginning of year	985,762			1,022,441			700,382
Cash and cash equivalents, end of year	$	836,188		$	985,762		$	1,022,441
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes during the year:	$	59,731		$	40,741		$	31,326
Interest payments during the year:	$	2,710		$	1,904		$	1,761

See accompanying notes to consolidated financial statements.

50

SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Description of Business

Synopsys, Inc. (Synopsys or the Company) provides software, intellectual property and services used by designers along the entire silicon to software spectrum, from engineers creating advanced semiconductors to software developers seeking to ensure the quality and security of their applications. The Company is a global leader in supplying the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. The Company also offers intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. The Company provides software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. To complement these offerings, which are sold primarily to semiconductor and electronics companies, the Company provides technical services to support these solutions and help its customers develop chips and electronic systems. The Company is also a leading provider of software tools that developers use to improve the quality and security of software code in a wide variety of industries, including electronics, financial services, energy, and industrials.

Note 2. Summary of Significant Accounting Policies

Fiscal Year End. The Company’s fiscal year ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. Fiscal 2015, 2014, and 2013 were 52-week years ending on October 31, 2015, November 1, 2014, and November 2, 2013, respectively. For presentation purposes, the consolidated financial statements and accompanying notes refer to the closest calendar month end.

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

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

Foreign Currency Translation. The functional currency of the majority of the Company’s active foreign subsidiaries is the foreign subsidiary’s local currency. Assets and liabilities that are not denominated in the functional currency are remeasured into the functional currency with any related gain or loss recorded in earnings. The Company translates assets and liabilities of its non-U.S. dollar functional currency foreign operations into the U.S. dollar reporting currency at exchange rates in effect at the balance sheet date. The Company translates income and expense items of such foreign operations into U.S. dollars reporting currency at average exchange rates for the period. Accumulated translation adjustments are reported in stockholders’ equity, as a component of accumulated other comprehensive income (loss).

Foreign Currency Contracts. The Company operates internationally and is exposed to potentially adverse movements in currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheet.

The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. See Note 5. Financial Assets and Liabilities.

Fair Values of Financial Instruments. The Company’s cash equivalents, short-term investments and foreign currency contracts are carried at fair value. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. Non-marketable equity securities are carried at cost, net of impairments. The Company performs periodic impairment analysis over these non-marketable equity securities. The carrying amount of the short-term and long-term debt approximates the estimated fair value. See Note 6. Fair Value Measures.

Cash, Cash Equivalents and Short-term Investments. The Company classifies investments with original maturities of three months or less when acquired as cash equivalents. All of the Company’s short-term investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses included in

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SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

stockholders’ equity as a component of accumulated other comprehensive income (loss), net of tax. Those unrealized gains or losses deemed other than temporary are reflected in other income (expense), net. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net. See Note 5. Financial Assets and Liabilities.

Concentration of Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign currency contracts, and accounts receivable from trade customers. The Company maintains cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U.S. and in various overseas locations.

The Company sells its products worldwide primarily to customers in the global electronics market. The Company performs on-going credit evaluations of its customers’ financial condition and does not require collateral. The Company establishes reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented.

Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains allowances for doubtful accounts to reduce the Company’s receivables to their estimated net realizable value. The Company provides a general reserve on all accounts receivable based on a review of customer accounts. The following table presents the changes in the allowance for doubtful accounts:

Fiscal Year	Balance at Beginning of Period		Provisions			Write-offs(1)			Balance at End of Period
	(in thousands)
2015	$	2,026	$	1,300		$	(765	)	$	2,561
2014	$	4,253	$	(1,250	)	$	(977	)	$	2,026
2013	$	6,072	$	102		$	(1,921	)	$	4,253

(1) Balances written off, net of recoveries.

Income Taxes. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied.

Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Assets, excluding land, are depreciated using the straight-line method over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over the remaining term of the lease or the economic useful life of the asset, whichever is shorter. Depreciation expenses were $71.1 million, $63.1 million and $56.7 million in fiscal 2015, 2014 and 2013, respectively. Repair and maintenance costs are expensed as incurred and such costs were $32.3 million, $28.7 million and $26.3 million in fiscal 2015, 2014 and 2013, respectively.

52

SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

A summary of property and equipment, at cost less accumulated depreciation and amortization, as of October 31, 2015 and 2014 is as follows:

	October 31,
	2015			2014
	(in thousands)
Computer and other equipment	$	436,425		$	419,951
Buildings	67,943			68,871
Furniture and fixtures	50,075			41,089
Land	20,414			20,414
Leasehold improvements	142,275			136,513
	717,132			686,838
Less accumulated depreciation and amortization(1)	(454,055		)	(437,740		)
Total	$	263,077		$	249,098

(1) Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets.

The useful lives of depreciable assets are as follows:

	Useful Life in Years
Computer and other equipment	3-5
Buildings	30
Furniture and fixtures	5
Leasehold improvements (average)	5

Goodwill. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment annually as of October 31 or more frequently if facts and circumstances warrant a review. The Company determined that it is a single reporting unit for the purpose of goodwill impairment tests. For purposes of assessing the impairment of goodwill, the Company estimates the value of the reporting unit using its market capitalization as the best evidence of fair value. This fair value is then compared to the carrying value of the reporting unit. During fiscal 2015, 2014 and 2013, there were no indicators of impairment to goodwill.

Intangible Assets. Intangible assets consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, covenants not to compete, capitalized software, and in-process research and development. These intangible assets are either acquired through business combinations, direct purchases, or internally developed capitalized software. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from one to ten years.

The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment and intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such asset group will be recovered through the undiscounted future cash flow. If the undiscounted future cash flow is less than the carrying amount of the asset group, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the asset group. The Company had no impairments of any long-lived assets in fiscal 2015, 2014 or 2013.

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

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SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

Accounts Payable and Accrued Liabilities. The balance consists of:

	October 31,
	2015		2014
	(in thousands)
Payroll and related benefits	$	315,078	$	302,295
Other accrued liabilities	60,545		66,666
Accounts payable	9,919		28,152
Total	$	385,542	$	397,113

Other Long-term Liabilities. The balance consists of:

	October 31,
	2015		2014
	(in thousands)
Deferred compensation liability (See Note 10)	$	158,462	$	145,508
Other long-term liabilities	43,559		13,464
Total	$	202,021	$	158,972

Other Comprehensive Income (Loss). Other comprehensive income (loss) (OCI) includes all changes in equity during a period, such as accumulated net translation adjustments, unrealized gain (loss) on certain foreign currency forward contracts that qualify as cash flow hedges, reclassification adjustments related to cash flow hedges and unrealized gain (loss) on investments. See Note 8. Accumulated Other Comprehensive Income (Loss).

Revenue Recognition. The Company derives revenue from the sale of software license arrangements. Software license revenue consists of fees associated with the licensing of the Company’s software licenses, maintenance and professional services and to a small extent, hardware products. Maintenance and professional service revenue consists of maintenance fees associated with perpetual and term licenses and professional services fees. Hardware revenue consists of sales of Field Programmable Gate Array (FPGA)-based emulation and prototyping products.

With respect to software licenses, the Company utilizes three license types:

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

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

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

For the three software license types, the Company recognizes revenue as follows:

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

• Term licenses. The Company recognizes revenue from term licenses in full upon shipment of the software if payment terms require the customer to pay at least 75% of the license fee and 100% of the maintenance fee within one year from shipment and all other revenue recognition criteria are met. Revenue attributable to these term licenses is reported as “upfront license revenue” in the consolidated statements of operations. For term licenses in which less than 75% of the license fee

54

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

and 100% of the maintenance fee is payable within one year from shipment, the Company recognizes revenue as customer payments become due and payable. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations.

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

The Company's maintenance and service revenue consists of maintenance fees associated with perpetual and term software licenses and professional services fees. The Company recognizes revenue from maintenance arrangements ratably over the maintenance period to the extent cash has been received or fees become due and payable, and recognize revenue from professional services and training fees as such services are performed and accepted by the customer. Revenue attributable to maintenance, professional services and training is reported as “maintenance and service revenue” in the consolidated statements of operations.

Hardware revenue consists of sales of FPGA-based emulation and prototyping products. The Company recognizes revenue from sales of hardware products in full upon shipment if all other revenue recognition criteria are met. Revenue attributable to these sales is reported as “upfront license revenue” in the consolidated statements of operations and is not material to the Company's total revenue.

The Company also enters into arrangements in which portions of revenue are contingent upon the occurrence of uncertain future events, for example, royalty arrangements. The Company refers to this revenue as “contingent revenue.” Contingent revenue is recognized if and when the applicable event occurs. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. Historically, these arrangements have not been material to the Company’s total revenue.

The Company infrequently enters into multiple-element arrangements that contain both software and non-software deliverables such as hardware. The Company has determined that the software and non-software deliverables in the Company’s contracts are separate units of accounting. The Company recognizes revenue for the separate units of accounting when all revenue recognition criteria are met. Revenue allocated to hardware units of accounting is recognized upon shipment when all other revenue recognition criteria are met. Revenue allocated to software units of accounting is recognized according to the methods described above depending on the software license type (TSL, term license or perpetual license). Such arrangements have not had a material effect on the Company’s consolidated financial statements and are not expected to have a material effect in future periods.

The Company also enters into arrangements to deliver software products, either alone or together with other products or services that require significant modification, or customization of the software. The Company accounts for such arrangements using the percentage of completion method as the Company has the ability to make reasonably dependable estimates that relate to the extent of progress toward completion, contract revenues and costs. The Company measures the progress towards completion using the labor hours incurred to complete the project. Revenue attributable to these arrangements is reported as “maintenance and service revenue” in the consolidated statements of operations.

The Company determines the fair value of each element in multiple element software arrangements that contain only software and software related deliverables based on vendor-specific objective evidence (VSOE). The Company limits assessment of VSOE of fair value for each element to the price charged when such element is sold separately. The Company has analyzed all of the elements included in multiple-element software arrangements and has determined that the Company has sufficient VSOE to allocate revenue to the maintenance components of the Company’s perpetual and term license products and to professional services. Accordingly, assuming all other revenue recognition criteria are met, the Company recognizes license revenue from perpetual and term licenses upon delivery using the residual method, recognizes revenue from maintenance ratably over the maintenance term, and recognizes revenue from professional services as services are performed and accepted by the customer. The Company recognizes revenue from TSLs ratably over the term of the license, assuming all other revenue

55

SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

recognition criteria are met, since there is not sufficient VSOE to allocate the TSL fee between license and maintenance services.

The Company makes judgments related to revenue recognition. Specifically, in connection with each transaction involving the Company’s products, the Company must evaluate whether: (1) persuasive evidence of an arrangement exists, (2) delivery of software or services has occurred, (3) the fee for such software or services is fixed or determinable, and (4) collectability of the full license or service fee is probable. All four of these criteria must be met in order for the Company to recognize revenue with respect to a particular arrangement. The Company applies these revenue recognition criteria as follows:

• Persuasive Evidence of an Arrangement Exists. Prior to recognizing revenue on an arrangement, the Company’s customary policy is to have a written contract, signed by both the customer and by the Company or a purchase order from those customers that have previously negotiated a standard end-user license arrangement or purchase agreement.

• Delivery Has Occurred. The Company delivers its products to its customers electronically or physically. For electronic deliveries, delivery occurs when the Company provides access to its customers to take immediate possession of the software through downloading it to the customer’s hardware. For physical deliveries, the standard transfer terms are typically Freight on Board (FOB) shipping point. The Company generally ships its products or license keys promptly after acceptance of customer orders. However, a number of factors can affect the timing of product shipments and, as a result, timing of revenue recognition, including the delivery dates requested by customers and the Company's operational capacity to fulfill product orders at the end of a fiscal quarter.

• The Fee is Fixed or Determinable. The Company’s determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. The Company’s standard payment terms for perpetual and term licenses require 75% or more of the license fee and 100% of the maintenance fee to be paid within one year. If the arrangement includes these terms, the Company regards the fee as fixed or determinable, and recognizes all license revenue under the arrangement in full upon delivery (assuming all other revenue recognition criteria are met). If the arrangement does not include these terms, the Company does not consider the fee to be fixed or determinable and generally recognizes revenue when customer installments are due and payable. In the case of a TSL, because of the right to exchange products or receive unspecified future technology and because VSOE for maintenance services does not exist for a TSL, the Company recognizes revenue ratably over the term of the license, but not in advance of when customers’ installments become due and payable.

• Collectability is Probable. The Company judges collectability of the arrangement fees on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a history of successful collection. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position and ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is not probable under a particular arrangement based upon its credit review process or the customer’s payment history, the Company recognizes revenue under that arrangement as customer payments are actually received.

Warranties and Indemnities. The Company generally warrants its products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for software products and for up to six months for hardware systems. In certain cases, the Company also provides its customers with limited indemnification with respect to claims that their use of the Company’s software products infringe on United States patents, copyrights, trademarks or trade secrets. The Company is unable to estimate the potential impact of these commitments on the future results of operations. To date, the Company has not been required to pay any material warranty claims.

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

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

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Numerator:
Net income	$	225,934	$	259,124	$	247,800
Denominator:
Weighted average common shares for basic net income per share	154,957		155,054		153,319
Dilutive effect of common share equivalents from equity—based compensation	3,108		2,656		3,282
Weighted average common shares for diluted net income per share	158,065		157,710		156,601
Net income per share:
Basic	$	1.46	$	1.67	$	1.62
Diluted	$	1.43	$	1.64	$	1.58
Anti-dilutive employee stock-based awards excluded(1)	1,363		2,196		1,326

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

Note 3. Business Combinations

Fiscal 2015 Acquisitions

During fiscal 2015, the Company completed several acquisitions. The aggregated total purchase consideration was $333.2 million, net of cash acquired. The Company does not consider these acquisitions to be material, individually or in the aggregate, to the Company’s consolidated balance sheet and results of operations. The preliminary purchase price allocations resulted in $234.0 million of goodwill, of which $2.3 million is deductible for tax purposes, and $119.8 million of acquired identifiable intangible assets valued using the income method. The intangible assets are being amortized over their respective useful lives ranging from one to seven years. The acquisition-related costs totaling $14.9 million were expensed as incurred in the consolidated statement of operations. The Company funded the acquisitions with existing cash. The fair value of stock options assumed was approximately $2.1 million using the Black-Scholes option-pricing model and will be expensed over their remaining service periods on a straight-line basis.

The preliminary fair value estimates for the assets acquired and liabilities assumed for all fiscal 2015 acquisitions are not yet finalized and may change as additional information becomes available during the respective measurement periods. The primary areas of those preliminary estimates relate to certain tangible assets and liabilities, identifiable intangible assets, and taxes. Additional information, which existed as of the acquisition date but is yet unknown to the Company, may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Changes to amounts recorded as assets or liabilities will be recorded as retrospective adjustments to the provisional amounts recognized as of the acquisition date and may result in a corresponding adjustment to goodwill.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

Note 4. Goodwill and Intangible Assets

Goodwill:

	(in thousands)
Balance at October 31, 2013	$	1,975,971
Additions	290,379
Effect of foreign currency translation	(10,642		)
Balance at October 31, 2014	$	2,255,708
Additions	233,989
Adjustments	684
Effect of foreign currency translation	(19,140		)
Balance at October 31, 2015(1)	$	2,471,241

(1) There is no accumulated impairment of goodwill for periods presented.

Intangible assets as of October 31, 2015 consist of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	584,293	$	375,395	$	208,898
Customer relationships	231,908		115,170		116,738
Contract rights intangible	165,623		141,763		23,860
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	20,729		10,665		10,064
Capitalized software development costs	25,511		21,412		4,099
Total	$	1,030,594	$	666,935	$	363,659

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

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	490,242	$	298,705	$	191,537
Customer relationships	210,172		92,146		118,026
Contract rights intangible	146,364		109,067		37,297
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	18,779		7,765		11,014
In-process research and development (IPR&D)(1)	3,086		—		3,086
Capitalized software development costs	21,829		17,759		4,070
Total	$	893,002	$	527,972	$	365,030

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

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SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

Amortization expense related to intangible assets consisted of the following:

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Core/developed technology	$	76,674	$	70,675	$	68,781
Customer relationships	23,104		22,470		21,394
Contract rights intangible	33,350		30,615		35,538
Covenants not to compete	—		50		126
Trademarks and trade names	2,900		2,309		1,663
Capitalized software development costs(1)	3,653		3,581		3,222
Total	$	139,681	$	129,700	$	130,724

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

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

Fiscal Year	(in thousands)
2016	$	126,865
2017	87,586
2018	62,736
2019	39,729
2020	28,334
2021 and thereafter	18,409
Total	$	363,659

Note 5. Financial Assets and Liabilities

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

During the first quarter of fiscal 2015, the Company made investments in available-for-sale securities. As of October 31, 2015, the balances of our available-for-sale securities and non-marketable equity securities investments are:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Continuous Months			Gross Unrealized Losses 12 Continuous Months or Longer		Estimated Fair Value(1)
	(in thousands)
Cash equivalents:
Money market funds	$	233,839	$	—	$	—		$	—	$	233,839
Commercial paper	1,834		—		—			—		1,834
Certificates of deposit	3,500		—		—			—		3,500
Asset-backed securities	300		—		(1		)	—		299
Total:	$	239,473	$	—	$	(1	)	$	—	$	239,472
Short-term investments:
U.S. government agency securities	$	12,615	$	3	$	(4	)	$	—	$	12,614
Municipal bonds	1,403		1		(1		)	—		1,403
Certificates of deposit	9,800		—		—			—		9,800
Commercial paper	12,129		—		—			—		12,129
Corporate debt securities	67,201		27		(40		)	—		67,188
Asset-backed securities	24,619		2		(13		)	—		24,608
Non-U.S. government agency securities	1,007		—		(2		)	—		1,005
Total:	$	128,774	$	33	$	(60	)	$	—	$	128,747
Other long-term assets:
Non-marketable equity securities	$	10,277	$	—	$	—		$	—	$	10,277
Total:	$	10,277	$	—	$	—		$	—	$	10,277

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

As of October 31, 2014, the balances of our cash equivalents and non-marketable equity securities investments are:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Continuous Months		Gross Unrealized Losses 12 Continuous Months or Longer		Estimated Fair Value(1)
	(in thousands)
Cash equivalents:
Money market funds	$	409,064	$	—	$	—	$	—	$	409,064
Total:	$	409,064	$	—	$	—	$	—	$	409,064
Other long-term assets:
Non-marketable equity securities	$	10,869	$	—	$	—	$	—	$	10,869
Total:	$	10,869	$	—	$	—	$	—	$	10,869

(1) See Note 6. Fair Value Measures for further discussion on fair values of money market funds and non-marketable equity securities.

As of October 31, 2015, the stated maturities of the Company's available-for-sale securities are:

	Amortized Cost		Fair Value
	(in thousands)
Due in 1 year or less	$	76,774	$	76,784
Due in 2-5 years	51,908		51,871
Due in 6-10 years	92		92
Total	$	128,774	$	128,747

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

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

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

Cash Flow Hedging Activities

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

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

Non-designated Hedging Activities

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

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

The effects of the changes in the fair values of non-designated forward contracts for fiscal years 2015, 2014 and 2013 are summarized as follows:

	October 31,
	2015			2014			2013
	(in thousands)
Gain (loss) recorded in other income (expense), net	$	(5,554	)	$	(3,301	)	$	3,009

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

	As of October 31, 2015			As of October 31, 2014
	(in thousands)
Total gross notional amount	$	781,752		$	793,937
Net fair value	$	(3,819	)	$	(2,455	)

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

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SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

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

	Fair Values of derivative instruments designated as hedging instruments		Fair Values of derivative instruments not designated as hedging instruments
	(in thousands)
As of October 31, 2015
Other current assets	$	6,461	$	1
Accrued liabilities	$	10,141	$	140
As of October 31, 2014
Other current assets	$	9,299	$	1
Accrued liabilities	$	11,656	$	99

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

	Location of gain (loss) recognized in OCI on derivatives	Amount of gain (loss) recognized in  OCI on derivatives (effective portion)			Location of gain (loss) reclassified  from OCI	Amount of gain (loss) reclassified  from OCI (effective  portion)
	(in thousands)
Fiscal year ended October 31, 2015
Foreign exchange contracts	Revenue	$	3,982		Revenue	$	9,270
Foreign exchange contracts	Operating expenses	(22,605		)	Operating expenses	(24,193		)
Total		$	(18,623	)		$	(14,923	)
Fiscal year ended October 31, 2014
Foreign exchange contracts	Revenue	$	5,395		Revenue	$	2,339
Foreign exchange contracts	Operating expenses	(10,896		)	Operating expenses	1,543
Total		$	(5,501	)		$	3,882
Fiscal year ended October 31, 2013
Foreign exchange contracts	Revenue	$	2,427		Revenue	$	7,457
Foreign exchange contracts	Operating expenses	3,680			Operating expenses	(892		)
Total		$	6,107			$	6,565

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

Foreign exchange contracts	Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)(1)			Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2)
	(in thousands)
Fiscal year ended October 31, 2015	$	878		$	3,704
Fiscal year ended October 31, 2014	$	(302	)	$	3,259
Fiscal year ended October 31, 2013	$	293		$	2,518

(1) The ineffective portion includes forecast inaccuracies.

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

Other Commitments - Credit and Term Loan Facilities

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

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

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

Note 6. Fair Value Measures

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

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

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

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

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

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

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

The Company’s borrowings under its credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Refer to Note 5. Financial Assets and Liabilities.

Assets/Liabilities Measured at Fair Value on a Recurring Basis

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

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets  for Identical Assets (Level  1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	233,839	$	233,839	$	—	$	—
Commercial paper	1,834		—		1,834		—
Certificates of deposit	3,500		—		3,500		—
Asset-backed securities	299		—		299		—
Short-term investments:
U.S. government agency securities	12,614		—		12,614		—
Municipal bonds	1,403		—		1,403		—
Certificates of deposit	9,800		—		9,800		—
Commercial paper	12,129		—		12,129		—
Corporate debt securities	67,188		—		67,188		—
Asset-backed securities	24,608		—		24,608		—
Non-U.S. government agency securities	1,005		—		1,005		—
Prepaid and other current assets:
Foreign currency derivative contracts	6,462		—		6,462		—
Other long-term assets:
Deferred compensation plan assets	158,462		158,462		—		—
Total assets	$	533,143	$	392,301	$	140,842	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	10,281	$	—	$	10,281	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	158,462		158,462		—		—
Total liabilities	$	168,743	$	158,462	$	10,281	$	—

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

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

Description	Total		Fair Value Measurement Using
			Quoted Prices in  Active Markets  for Identical Assets (Level  1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	409,064	$	409,064	$	—	$	—
Prepaid and other current assets:
Foreign currency derivative contracts	9,300		—		9,300		—
Other long-term assets:
Deferred compensation plan assets	145,508		145,508		—		—
Total assets	$	563,872	$	554,572	$	9,300	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	11,755	$	—	$	11,755	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	145,508		145,508		—		—
Total liabilities	$	157,263	$	145,508	$	11,755	$	—

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

Non-Marketable Equity Securities

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

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

The Company did not recognize any impairment during fiscal 2015, 2014 and 2013.

As of October 31, 2015, the fair value of the Company’s non-marketable securities was $10.3 million of which $6.6 million and $3.7 million were accounted for under the cost method and equity method, respectively. As of October 31, 2014, the fair value of the Company's non-marketable securities was $10.9 million, of which $6.7 million and $4.2 million were accounted for under the cost method and equity method, respectively. During the twelve months ended October 31, 2014, the Company received cash distributions of $7.1 million from the liquidation of one of its investments resulting in a $6.9 million gain, which was recorded to other income (expense), net.

Note 7. Commitments and Contingencies

Lease Commitments

The Company leases certain of its domestic and foreign facilities and certain office equipment under non-cancelable lease agreements. The lease agreements generally require the Company to pay property taxes, insurance, maintenance and repair costs. Rent expenses were $67.6 million, $65.6 million and $64.4 million in fiscal 2015, 2014 and 2013, respectively. The Company charges operating lease payments to expense using the straight-line method. The Company subleases portions of its facilities and records sublease payments as a reduction of rent expense.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

During the first quarter of fiscal 2015, the Company moved into two new office buildings in Mountain View, California. The buildings together provide approximately 341,000 square feet. This space is leased through August 2030, and the Company has two options to extend the lease term, the first to extend the term by ten years, followed by a second option to extend by approximately nine additional years.

As of October 31, 2015, anticipated future minimum lease payments on all non-cancellable operating leases with a term in excess of one year, net of sublease income are as follows:

	Minimum Lease Payments		Sublease Income		Net
	(in thousands)
Fiscal Year
2016	$	52,266	$	2,579	$	49,687
2017	47,695		2,063		45,632
2018	40,979		2,120		38,859
2019	35,469		2,179		33,290
2020	25,501		2,239		23,262
Thereafter	164,731		4,432		160,299
Total	$	366,641	$	15,612	$	351,029

Legal Proceedings

The Company is subject to routine legal proceedings, as well as demands, claims and threatened litigation, which arise in the normal course of its business. The ultimate outcome of any litigation is uncertain and unfavorable outcomes could have a negative impact on the Company’s financial position and results of operations. The Company reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount is estimable, the Company accrues a liability for the estimated loss. The Company has determined that no disclosure of estimated loss is required for a claim against the Company because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial.

Mentor Patent Litigation

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

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

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SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

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

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

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

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

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

Note 8. Accumulated Other Comprehensive Income (Loss)

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

	Year Ended October 31,
	2015			2014
	(in thousands)
Cumulative currency translation adjustments	$	(90,508	)	$	(50,941	)
Unrealized gain (loss) on derivative instruments, net of taxes	(14,839		)	(11,148		)
Unrealized gain (loss) on available-for-sale securities, net of taxes	(28		)	—
Total accumulated other comprehensive income (loss)	$	(105,375	)	$	(62,089	)

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

	Year Ended October 31,
	2015			2014		2013
	(in thousands)
Reclassifications from accumulated other comprehensive income (loss) into consolidated statement of operations:
Gain (loss) on cash flow hedges, net of taxes
Revenues	$	9,270		$	2,339	$	7,457
Operating expenses	(24,193		)	1,543		(892		)
Gain (loss) on available-for-sale securities
Other income (expense)	41			—		—
Total reclassifications into net income	$	(14,882	)	$	3,882	$	6,565

Amounts reclassified in fiscal 2015, 2014 and 2013 primarily consisted of gains (losses) from the Company’s cash flow hedging activities. See Note 5. Financial Assets and Liabilities.

Note 9. Stock Repurchase Program

The Company’s Board of Directors (Board) approved a stock repurchase program in 2002 pursuant to which the Company was authorized to purchase up to $500.0 million of its common stock, and has periodically replenished the stock repurchase program to such amount. The Board last replenished the stock repurchase program up to $500.0 million on September 1, 2015. The program does not obligate Synopsys to acquire any particular amount of common stock, and the program may be suspended or terminated at any time by Synopsys’ Chief Financial Officer or the Board. The Company repurchases shares to offset dilution caused by ongoing stock issuances from existing equity plans for equity compensation awards and issuances related to acquisitions, and when management believes it is a good use of cash. Repurchases are transacted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934 (Exchange Act) and may be made through any means including, but not limited to, open market purchases, plans executed under Rule 10b5-1(c) of the Exchange Act and structured transactions. As of October 31, 2015, $500 million remained available for further repurchases under the program.

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

In August 2015, the Company entered into an accelerated share repurchase agreement (the August 2015 ASR) to repurchase an aggregate of $100.0 million of the Company’s common stock. Pursuant to the August 2015 ASR, the Company made a prepayment of $100.0 million and received an initial share delivery of shares valued at $80.0 million with an average purchase price of $46.94 per share. The remaining balance of $20.0 million is included within stockholders' equity during fiscal 2015 and was settled in the first quarter of fiscal 2016. Total shares purchased under the August 2015 ASR were approximately 2.1 million total shares, at an average purchase price of $48.06 per share.

In December 2015, the Company entered into two accelerated share repurchase agreements (December 2015 ASRs) to repurchase an aggregate of $200.0 million of the Company’s common stock. Pursuant to the December 2015 ASRs, the Company made a prepayment of $200.0 million and received initial share deliveries of shares valued at $160.0 million with an average purchase price of $46.08 per share. The remaining balance of $40.0 million will be settled on or before April 29, 2016, upon completion of the repurchase. Under the terms of the December 2015 ASRs, the specific number of shares that the Company ultimately repurchases will be based on the volume-weighted average share price of the Company’s common stock during the repurchase period, less a discount.

69

The following table summarizes stock repurchase activities as well as the reissuance of treasury stock for employee stock compensation purposes:

	Year Ended October 31,
	2015		2014		2013
	(in thousands, except per share price)
Shares repurchased	5,672		3,092		3,996
Average purchase price per share	$	45.84	$	38.72	$	36.29
Aggregate purchase price(1)	$	260,000	$	119,747	$	145,016
Reissuance of treasury stock	4,864		4,888		7,266

(1) Does not include $20.0 million equity forward contract related to the above-referenced August 2015 ASR.

Note 10. Employee Benefit Plans

Employee Stock Purchase Plan

Under the Company’s Employee Stock Purchase Plan (ESPP), employees are granted the right to purchase shares of common stock at a price per share that is 85% of the lesser of the fair market value of the shares at (1) the beginning of a rolling two year offering period or (2) the end of each semi-annual purchase period, subject to a plan limit on the number of shares that may be purchased in a purchase period.

On April 2, 2014, the Company’s stockholders approved an amendment to the ESPP to increase the number of shares of common stock authorized for issuance under the plan by 5.0 million shares. During fiscal 2015, 2014 and 2013, the Company issued 1.7 million, 1.8 million, and 2.1 million shares, respectively, under the ESPP at average per share prices of $31.55, $30.00 and $22.75, respectively. As of October 31, 2015, 5.3 million shares of common stock were reserved for future issuance under the ESPP.

Equity Compensation Plans

2006 Employee Equity Incentive Plan. On April 25, 2006, the Company’s stockholders approved the 2006 Employee Equity Incentive Plan (2006 Employee Plan), which provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights and other forms of equity compensation, including performance stock awards and performance cash awards, as determined by the plan administrator. The terms and conditions of each type of award are set forth in the 2006 Employee Plan. Options granted under this plan have a contractual term of seven years and generally vest over four years. On April 2, 2015, the Company's stockholders approved an amendment to increase the number of shares of common stock reserved for future issuance under the 2006 Employee Plan by 3.8 million shares. As of October 31, 2015, an aggregate of 6.6 million stock options and 3.9 million restricted stock units were outstanding, and 11.9 million shares were available for future issuance under the 2006 Employee Plan.

2005 Non-Employee Directors Equity Incentive Plan. On May 23, 2005, the Company’s stockholders approved the 2005 Non-Employee Directors Equity Incentive Plan (the 2005 Directors Plan). The 2005 Directors Plan provides for annual equity awards to non-employee directors in the form of stock options, restricted stock or a combination thereof. The Company’s stockholders have approved an aggregate of 0.8 million shares of common stock reserved under the 2005 Directors Plan.

As of October 31, 2015, the Company has issued an aggregate of 343,070 shares of restricted stock awards with an aggregate grant date fair value of approximately $10.5 million under the 2005 Directors Plan. Restricted stock awards vest over a period of three years. In addition, the Company granted options to purchase 157,871 shares of common stock, which vest over a period of three to four years, with an aggregate grant date fair value of $4.7 million, to non-employee directors during fiscal 2007, fiscal 2011, and fiscal 2015. As of October 31, 2015, 44,823 shares of restricted stock were unvested and 76,369 stock options were outstanding, and a total of 262,402 shares of common stock were reserved for future grant under the 2005 Directors Plan.

Other Assumed Stock Plans through Acquisitions. In connection with the Company’s acquisitions in fiscal 2008, fiscal 2010, fiscal 2012, fiscal 2014, and fiscal 2015, the Company assumed certain outstanding stock awards of acquired companies. If these assumed equity awards are canceled, forfeited or expire unexercised, the underlying shares do not become available for future grant. As of October 31, 2015, 0.6 million shares of the Company’s common stock remained subject to such outstanding assumed equity awards.

70

Restricted Stock Units. Since fiscal 2007, restricted stock units are granted under the 2006 Employee Plan as part of the Company’s new hire and annual incentive compensation program. Restricted stock units are valued based on the closing price of the Company’s common stock on the grant date. In general, restricted stock units vest over three to four years and are subject to the employee's continuing service with the Company. For each restricted stock unit granted under the 2006 Employee Plan, a share reserve ratio is applied for the purpose of determining the remaining number of shares reserved for future grants under the plan. On March 24, 2011, the Company's stockholders approved an amendment of the 2006 Employee Plan to prospectively change the reserve ratio from 2.18 to 1.25. On April 3, 2012, the stockholders approved amending the share reserve ratio from 1.25 to 1.50. On April 2, 2015, the stockholders approved amending the share reserve ratio from 1.50 to 1.60.

The following table contains information concerning activities related to restricted stock units:

	Restricted Stock Units		Weighted  Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (In Years)	Aggregate Fair Value
	(in thousands, except per share and life amounts)
Balance at October 31, 2012	3,920		$	27.18	1.52
Granted	1,680		$	35.27
Vested(1)	(1,476	)	$	25.35		$	52,234
Forfeited	(141	)	$	28.36
Balance at October 31, 2013	3,983		$	31.23	1.51
Granted	1,645		$	39.03
Vested(1)	(1,564	)	$	29.07		$	60,815
Forfeited	(117	)	$	32.95
Balance at October 31, 2014	3,947		$	35.29	1.53
Granted	1,707		$	48.13
Vested(1)	(1,522	)	$	33.05		$	73,677
Forfeited	(204	)	$	37.68
Balance at October 31, 2015	3,928		$	41.61	1.54

(1) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

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The following table contains additional information concerning activities related to stock options and restricted stock units under all equity plans, other than shares available for grant under the 2005 Directors Plan:

	Available for Grant(3)		Options(2)
			Options Outstanding		Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value
	(in thousands, except per share and life amounts)
Balance at October 31, 2012	7,352		10,219		$	24.64	3.71	$	80,950
Options Granted	(1,704	)	1,704		$	34.10
Options Assumed(2)			158		$	23.60
Options Exercised			(4,173	)	$	24.34
Options Canceled/forfeited/expired	159		(182	)	$	24.17
Restricted stock units granted(1)	(2,519	)
Restricted stock units forfeited(1)	184
Additional shares reserved	5,000
Balance at October 31, 2013	8,472		7,726		$	26.87	4.30	$	71,700
Options Granted	(1,686	)	1,686		$	38.65
Options Assumed(2)			843		$	24.63
Options Exercised			(2,103	)	$	24.47
Options Canceled/forfeited/expired	163		(402	)	$	27.44
Restricted stock units granted(1)	(2,468	)
Restricted stock units forfeited(1)	174
Additional shares reserved	7,500
Balance at October 31, 2014	12,155		7,750		$	29.81	4.66	$	86,537
Options Granted	(1,908	)	1,942		$	45.14
Options Assumed(2)			133		$	38.97
Options Exercised			(2,125	)	$	26.06
Options Canceled/forfeited/expired	230		(411	)	$	33.51
Restricted stock units granted(1)	(2,707	)
Restricted stock units forfeited(1)	313
Additional shares reserved	3,800
Balance at October 31, 2015	11,883		7,289		$	34.94	4.67	$	109,627
Vested and expected to vest as of October 31, 2015			7,192		$	34.84	4.65	$	108,887
Exercisable at October 31, 2015			3,673		$	29.80	3.60	$	74,121

(1) These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above.

(2) The Company assumed options outstanding under various plans through acquisitions.

(3) Excluding shares reserved for future issuance under the 2005 Directors Plan.

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The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value based on stock options with an exercise price less than the Company’s closing stock price of $49.98 as of October 31, 2015. The pretax intrinsic value of options exercised and their average exercise prices were:

	Year Ended October 31,
	2015		2014		2013
	(in thousands, except per share price)
Intrinsic value	$	44,104	$	32,094	$	46,592
Average exercise price per share	$	26.06	$	24.47	$	24.34

Restricted stock award activities during fiscal 2015 under the 2005 Directors Plan are summarized as follows:

	Restricted Shares		Weighted-Average Grant Date Fair Value
	(in thousands, except per share)
Unvested at October 31, 2014	48		$	36.09
Granted	22		$	46.46
Vested	(25	)	$	34.76
Forfeited	—		$	—
Unvested at October 31, 2015	45		$	41.82

Valuation and Expense of Stock Compensation. The Company estimates the fair value of stock-based awards in the form of stock options and employee stock purchase rights under employee stock purchase plans on the grant date. The value of awards expected to vest is recognized as expense over the applicable service periods. The Company uses the straight-line attribution method to recognize stock compensation costs over the service period of the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options, stock appreciation rights and employee stock purchase plan awards. The Black-Scholes option-pricing model incorporates various subjective assumptions including expected volatility, expected term and interest rates. The expected volatility for both stock options and stock purchase rights under the ESPP is estimated by a combination of implied volatility for publicly traded options of the Company’s common stock with a term of six months or longer and the historical stock price volatility over the estimated expected term of the Company’s stock-based awards. The expected term of the Company’s stock-based awards is based on historical experience.

The assumptions presented in the following table were used to estimate the fair value of stock options and employee stock purchase rights granted under the Company’s stock plans or stock plans assumed from acquisitions:

	Year Ended October 31,
	2015	2014	2013
Stock Options
Expected life (in years)	4.3	4.5	4.7
Risk-free interest rate	1.24% - 1.58%	1.38% - 1.74%	0.62% - 1.66%
Volatility	16.92%-21.76%	18.38%-20.00%	20.61% - 26.47%
Weighted average estimated fair value	$8.77	$10.95	$7.29
ESPP
Expected life (in years)	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0
Risk-free interest rate	0.12% - 0.75%	0.05% - 0.58%	0.10% - 0.43%
Volatility	18.01% - 21.60%	16.84% - 18.78%	17.12% - 21.75%
Weighted average estimated fair value	$11.11	$9.17	$8.19

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The following table presents stock compensation expense for fiscal 2015, 2014 and 2013, respectively:

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Cost of license	$	9,162		$	8,122		$	6,597
Cost of maintenance and service	2,164			2,336			1,628
Research and development expense	43,431			38,241			32,423
Sales and marketing expense	17,744			16,754			13,983
General and administrative expense	13,899			13,987			12,880
Stock compensation expense before taxes	86,400			79,440			67,511
Income tax benefit	(20,071		)	(18,224		)	(16,446		)
Stock compensation expense after taxes	$	66,329		$	61,216		$	51,065

As of October 31, 2015, the Company had $156.9 million of total unrecognized stock compensation expense relating to options and restricted stock units and awards, which is expected to be recognized over a weighted average period of 2.5 years.

The cash flows resulting from the tax benefits for tax deductions in excess of the compensation expense recorded for the stock awards (excess tax benefits) are classified as cash flows from financing activities. The Company recorded excess tax benefits of $4.2 million in fiscal 2015; no excess tax benefits were recorded in fiscal periods 2014 and 2013.

Deferred Compensation Plan. The Company maintains the Synopsys Deferred Compensation Plan (the Deferred Plan), which permits eligible employees to defer up to 50% of their annual cash base compensation and up to 100% of their eligible cash variable compensation. Amounts may be withdrawn from the Deferred Plan pursuant to elections made by the employees in accordance with the terms of the plan. Since the inception of the Deferred Plan, the Company has not made any matching or discretionary contributions to the Deferred Plan. There are no Deferred Plan provisions that provide for any guarantees or minimum return on investments. Undistributed amounts under the Deferred Plan are subject to the claims of the Company’s creditors. The securities held by the Deferred Plan are classified as trading securities.

Deferred Plan Assets and Liabilities are as follows:

	As of October 31, 2015		As of October 31, 2014
	(In thousands)
Plan assets recorded in other long-term assets	$	158,462	$	145,508
Plan liabilities recorded in other long-term liabilities(1)	$	158,462	$	145,508

(1) For undistributed deferred compensation balances due to participants.

Income or loss from the change in fair value of the Deferred Plan assets is recorded in other income (expense), net. The increase or decrease in the fair value of the undistributed Deferred Plan obligation is recorded in total cost of revenue and operating expense. The following table summarizes the impact of the Deferred Plan:

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Increase (reduction) to cost of revenue and operating expense	$	3,701	$	10,856	$	18,453
Other income (expense), net	3,701		10,856		18,453
Net increase (decrease) to net income	$	—	$	—	$	—

Other Retirement Plans. The Company sponsors various retirement plans for its eligible U.S. and non-U.S. employees. Total contributions to these plans were $40.0 million, $23.8 million and $21.3 million in fiscal 2015, 2014 and 2013, respectively. For employees in the United States and Canada, the Company matches pretax employee contributions up to a maximum of U.S. $3,000 and Canadian $4,000, respectively, per participant per year.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

Note 11. Income Taxes

The domestic and foreign components of the Company’s total income (loss) before provision for income taxes are as follows:

	Year Ended October 31,
	2015		2014			2013
	(in thousands)
United States	$	42,571	$	(7,638	)	$	61,818
Foreign	239,039		279,780			213,848
	$	281,610	$	272,142		$	275,666

The components of the (benefit) provision for income taxes were as follows:

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Current:
Federal	$	(21,911	)	$	(14,951	)	$	11,692
State	1,385			279			(5,949		)
Foreign	39,319			42,085			29,428
	18,793			27,413			35,171
Deferred:
Federal	44,462			(4,612		)	4,969
State	(2,282		)	(4,141		)	933
Foreign	(5,297		)	(5,642		)	(13,207		)
	36,883			(14,395		)	(7,305		)
Provision (Benefit) for income taxes	$	55,676		$	13,018		$	27,866

The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows:

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Statutory federal tax	$	98,564		$	95,251		$	96,483
State tax (benefit), net of federal effect	(4,764		)	(4,306		)	(2,697		)
Tax credits (1)	(13,301		)	(5,153		)	(24,972		)
Tax on foreign earnings less than U.S. statutory tax	(56,536		)	(61,376		)	(40,156		)
Deferred tax reversal resulting from merger of foreign affiliate	—			—			(6,808		)
Tax settlements	(6,251		)	(19,645		)	(1,130		)
Stock based compensation	5,406			5,675			4,671
Changes in valuation allowance	(216		)	(235		)	(776		)
Federal statute lapses	(2,265		)	(6,746		)	—
Integration of acquired technologies	33,015			4,715			3,486
Other	2,024			4,838			(235		)
	$	55,676		$	13,018		$	27,866

(1) As a result of the reinstatement of the U.S. federal research tax credit in fiscal 2013, the Company reflected a tax benefit of approximately $19.0 million in the above amount for the period January 1, 2012 through October 31, 2013. The credit expired on December 31, 2013, resulting in only two months of credit for fiscal 2014. The credit was reinstated in fiscal 2015, resulting in a tax benefit of approximately $12.4 million in the above amount for the period January 1 through December 31, 2014.

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SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

The significant components of deferred tax assets and liabilities were as follows:

	October 31,
	2015			2014
	(in thousands)
Net deferred tax assets:
Deferred tax assets:
Accruals and reserves	$	40,373		$	28,608
Deferred revenue	36,460			42,766
Deferred compensation	69,716			56,920
Capitalized costs	60,998			66,616
Capitalized research and development costs	24,748			32,710
Stock compensation	18,001			18,508
Tax loss carryovers	50,987			64,273
Foreign tax credit carryovers	1,064			18,846
Research and other tax credit carryovers	80,327			110,247
Other	5,340			4,689
Gross deferred tax assets	388,014			444,183
Valuation allowance	(48,700		)	(45,996		)
Total deferred tax assets	339,314			398,187
Deferred tax liabilities:
Intangible assets	66,345			81,218
Undistributed earnings of foreign subsidiaries	933			726
Total deferred tax liabilities	67,278			81,944
Net deferred tax assets	$	272,036		$	316,243

It is more likely than not that the results of future operations will be able to generate sufficient taxable income to realize the net deferred tax assets. The valuation allowance provided against our deferred tax assets as of October 31, 2015 is mainly attributable to California research credit and international foreign tax credit carryforwards. The valuation allowance increased by a net of $2.7 million in fiscal 2015 due to changes in corresponding deferred tax assets primarily related to California research credit carryforwards.

The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities:

Carryforward	Amount		Expiration Date
	(in thousands)
Federal net operating loss carryforward	$	108,533	2016-2034
Federal research credit carryforward	120,243		2019-2035
Federal foreign tax credit carryforward	4,586		2017-2023
International foreign tax credit carryforward	10,104		Indefinite
California research credit carryforward	135,858		Indefinite
Other state research credit carryforward	5,395		2016-2030
State net operating loss carryforward	217,914		2016-2035

The federal and state net operating loss carryforward is from acquired companies and the annual use of such loss is subject to significant limitations under Internal Revenue Code Section 382. Foreign tax credits may only be used to offset tax attributable to foreign source income. The federal research tax credit expired as of December 31, 2014.

The Company has unrecognized deferred tax assets of approximately $83.3 million as of October 31, 2015 attributable to excess tax deductions related to stock options, the benefit of which will be credited to stockholders' equity when realized.

The Company has not provided taxes for undistributed earnings of its foreign subsidiaries except to the extent that the Company does not plan to reinvest such earnings indefinitely outside the United States. If the cumulative foreign earnings exceed the amount the Company intends to reinvest in foreign country operations in the future, the

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SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

Company would provide for taxes on such excess amount. As of October 31, 2015, there were approximately $1,047.5 million of earnings upon which U.S. income taxes of approximately $232.0 million have not been provided for.

The gross unrecognized tax benefits increased by approximately $8.0 million during fiscal 2015 resulting in gross unrecognized tax benefits of $132.1 million as of October 31, 2015. A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows:

	As of October 31, 2015			As of October 31, 2014
	(in thousands)
Beginning balance	$	124,102		$	117,760
Increases in unrecognized tax benefits related to prior year tax positions	10,922			2,037
Decreases in unrecognized tax benefits related to prior year tax positions	(7,526		)	(23,271		)
Increases in unrecognized tax benefits related to current year tax positions	13,232			35,277
Decreases in unrecognized tax benefits related to settlements with taxing authorities	—			(1,858		)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(5,996		)	(8,816		)
Increases in unrecognized tax benefits acquired	976			3,575
Changes in unrecognized tax benefits due to foreign currency translation	(3,656		)	(602		)
	$	132,054		$	124,102

As of October 31, 2015 and 2014, approximately $129.4 million and $120.5 million, respectively, of the unrecognized tax benefits would affect our effective tax rate if recognized upon resolution of the uncertain tax positions.

Interest and penalties related to estimated obligations for tax positions taken in the Company’s tax returns are recognized as a component of income tax expense (benefit) in the consolidated statements of operations and totaled approximately $0.6 million,$0.5 million and $0.2 million for fiscal years 2015, 2014 and 2013, respectively. As of October 31, 2015 and 2014, the combined amount of accrued interest and penalties related to tax positions taken on the Company’s tax returns was approximately $2.2 million and $1.3 million, respectively.

The timing of the resolution of income tax examinations is highly uncertain as well as the amounts and timing of various tax payments that are part of the settlement process. This could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. The Company believes that in the coming 12 months, it is reasonably possible that either certain audits will conclude or the statute of limitations on certain state and foreign income and withholding taxes will expire, or both. Given the uncertainty as to ultimate settlement terms, the timing of payment and the impact of such settlements on other uncertain tax positions, the range of the estimated potential decrease in underlying unrecognized tax benefits is between $0 and $36 million.

The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions:

Jurisdiction	Year(s) Subject to Examination
United States—Synopsys	Fiscal 2015
United States—Magma Design Automation	Fiscal 2012
California—Synopsys	Fiscal years after 2010
California—Magma Design Automation	Fiscal years after 2010
Hungary	Fiscal years after 2008
Ireland, Japan, and Taiwan	Fiscal years after 2009

In addition, the Company has made acquisitions with operations in several of its significant jurisdictions which may have years subject to examination different from the years indicated in the above table.

77

SYNOPSYS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued

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

IRS Examinations

In the third quarter of fiscal 2015, the Company reached final settlement with the Examination Division of the IRS on the integration of acquired technologies for fiscal 2015 and research tax credit for fiscal 2014. In the fourth quarter of fiscal 2015, the Company reached final settlement with the IRS on the remaining fiscal 2015 issues.

In the first quarter of fiscal 2014, the Company reached final settlement with the IRS on the remaining fiscal 2012 issues and recognized approximately $10.0 million in unrecognized tax benefits. In the fourth quarter of fiscal 2014, the Company reached final settlement with the IRS for its audit of fiscal 2013 and recognized approximately $5.5 million in unrecognized tax benefits.

In the third and fourth quarters of fiscal 2013, the Company reached settlement with the IRS for its audit of certain fiscal 2012 issues, which resulted in a decrease in unrecognized tax benefits of $6.0 million, decrease in deferred tax assets of $4.9 million and a $1.1 million net tax benefit.

Non-U.S. Examinations

Taiwan

In the first quarter of fiscal 2015, the Company reached final settlement with the Taiwan tax authorities for fiscal 2012 with regard to certain transfer pricing issues. As a result of the settlement, the Company recognized approximately $1.1 million in unrecognized tax benefits. In the fourth quarter of fiscal 2015, the Company reached final settlement with the Taiwan tax authorities for fiscal 2013 with regard to certain transfer pricing issues. As a result of the settlement and the application of the settlement to fiscal 2014, the Company's unrecognized tax benefits decreased by $1.2 million and $1.2 million, respectively.

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

Note 12. Other Income (Expense), Net

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

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Interest income	$	2,785		$	1,302		$	1,891
Interest expense	(2,814		)	(1,895		)	(1,696		)
Gain (loss) on assets related to deferred compensation plan	3,701			10,856			18,453
Foreign currency exchange gain (loss)	6,363			1,195			6,026
Other, net(1)	5,109			11,967			4,499
Total	$	15,144		$	23,425		$	29,173

(1) See Note 6. Fair Value Measures.

78

Note 13. Segment Disclosure

ASC 280, Segment Reporting, requires disclosures of certain information regarding operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers.

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

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Revenue:
United States	$	1,143,816	$	1,020,654	$	939,749
Europe	300,352		272,911		273,041
Japan	218,794		238,588		264,141
Asia Pacific and Other	579,249		525,319		485,283
Consolidated	$	2,242,211	$	2,057,472	$	1,962,214

	As of October 31,
	2015		2014
	(in thousands)
Property and Equipment, net:
United States	$	192,075	$	181,019
Other countries	71,002		68,079
Total	$	263,077	$	249,098

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

One customer, in the aggregate, accounted for 12.8%, 10.5%, and 11.3% of the Company’s consolidated revenue in fiscal 2015, 2014 and 2013, respectively.

Note 14. Effect of New Accounting Pronouncements

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

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

79

Supplementary Data - Selected Unaudited Quarterly Financial Data

The table below includes certain unaudited financial information for the last eight fiscal quarters. Refer to Note 2 of Notes to Consolidated Financial Statements for information on our fiscal year end.

	Quarter Ended
	January 31,		April 30,		July 31,		October 31,
	(in thousands, except per share data)
2015
Revenue	$	542,043	$	557,204	$	555,805	$	587,159
Gross margin	417,410		432,232		426,334		447,315
Income before provision for income taxes	76,615		83,884		65,193		55,918
Net income	65,189		55,596		55,387		49,762
Net income per share
Basic	$	0.42	$	0.36	$	0.36	$	0.32
Diluted	0.41		0.35		0.35		0.31
2014
Revenue	$	478,951	$	517,697	$	521,812	$	539,012
Gross margin	373,102		403,612		406,282		417,591
Income before provision for income taxes	71,184		68,059		70,771		62,128
Net income	67,696		63,317		65,656		62,455
Net income per share
Basic	$	0.44	$	0.41	$	0.42	$	0.40
Diluted	0.43		0.40		0.42		0.39

 Item 9.     Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not applicable.

 Item 9A.     Controls and Procedures

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

(b) Management’s Report on Internal Control Over Financial Reporting. Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Synopsys.

Under the supervision and with the participation of our management, including our Co-Chief Executive Officers and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of October 31, 2015. In assessing the effectiveness of our internal control over financial reporting, our management used the framework established in Internal Control Integrated Framework (2013) issued by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).

80

Our management has concluded that, as of October 31, 2015, our internal control over financial reporting was effective based on these criteria. Our independent registered public accounting firm, KPMG LLP, has issued an auditors’ report on the effectiveness of our internal control over financial reporting, which is included herein.

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

 Item 9B.     Other Information

None.

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PART III

 Item 10.     Directors, Executive Officers and Corporate Governance

For information with respect to our executive officers, see Executive Officers of the Registrant in Part I, Item 1 of this Annual Report.

All other information required by this Item is incorporated by reference herein from our definitive Proxy Statement for the 2016 Annual Meeting of Stockholders (the Proxy Statement) scheduled to be held on March 29, 2016, provided under the headings “Proposal 1: Election of Directors,” “Audit Committee Report,” “Corporate Governance,” and “Section 16(a) Beneficial Ownership Reporting Compliance.”

 Item 11.     Executive Compensation

The information required by this Item is incorporated herein by reference from the Proxy Statement, provided under the headings “Compensation Discussion and Analysis” (and all subheadings thereunder), "Executive Compensation Tables" (and all subheadings thereunder), "Director Compensation," “Compensation Committee Interlocks and Insider Participation,” and “Compensation Committee Report.”

 Item 12.     Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this Item is incorporated herein by reference from the Proxy Statement, provided under the headings “Equity Compensation Plan Information” and “Security Ownership of Certain Beneficial Owners and Management.”

 Item 13.     Certain Relationships and Related Transactions and Director Independence

The information required by this Item is incorporated herein by reference from the Proxy Statement, provided under the headings “Certain Relationships and Related Transactions” and “Corporate Governance” (under the subheading “Director Independence”).

 Item 14.     Principal Accountant Fees and Services

The information required by this Item is incorporated herein by reference from the Proxy Statement, provided under the subheadings "Fees and Services of Independent Registered Public Accounting Firm" and "Audit Committee Pre-Approval Policies and Procedures" under the proposal titled “Ratification of Selection of Independent Registered Public Accounting Firm.”

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PART IV

 Item 15.     Exhibits and Financial Statement Schedules

(a) The following documents are filed as part of this Form 10-K:

(1) Financial Statements

The following documents are included as Part II, Item 8 of this Form 10-K:

	Page
Report of Independent Registered Public Accounting Firm	45
Consolidated Balance Sheets	46
Consolidated Statements of Operations	47
Consolidated Statements of Comprehensive Income	48
Consolidated Statements of Stockholders’ Equity	49
Consolidated Statements of Cash Flows	50
Notes to Consolidated Financial Statements	51

(2) Financial Statement Schedules

Schedules not listed above have been omitted because the information required to be set forth therein is not applicable or is shown in the financial statements or notes herein.

(3) Exhibits

See Item 15(b) below.

(b) Exhibits

EXHIBIT INDEX

Exhibit Number	Exhibit Description	Incorporated By Reference				Filed or Furnished   Herewith
		Form	File No.	Exhibit	Filing Date
3.1	Amended and Restated Certificate of Incorporation	10-Q	000-19807	3.1	9/15/2003
3.2	Amended and Restated Bylaws	8-K	000-19807	3.2	5/23/2012
4.1	Specimen Common Stock Certificate	S-1	33-45138	4.3	02/24/92 (effective date)
10.1	Amended and Restated Credit Agreement, dated May 19, 2015, among Synopsys as Borrower, the several Lenders from time to time parties thereto, Bank of America, N.A. and Wells Fargo Bank, N.A. as Co-Syndication Agents, HSBC Bank USA, N.A., U.S. Bank, N.A., and MUFG Union Bank, N.A. as Co-Documentation Agents, JPMorgan Chase Bank, N.A., as Administrative Agent, and J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, as Co-Lead Arrangers and Co-Bookrunners	8-K	000-19807	10.15	5/20/2015

83

Exhibit Number	Exhibit Description	Incorporated By Reference				Filed or Furnished   Herewith
		Form	File No.	Exhibit	Filing Date
10.2	Lease Agreement dated October 14, 2011 between Synopsys, Inc. and 690 E. Middlefield Road Fee, LLC, (“The October 14, 2011 Lease”)	10-K	000-19807	10.19	12/16/2011
10.2(i)†	Notification of Change of Ownership of Leased Premises under The October 14, 2011 Lease—Effective May 9, 2012	10-K	000-19807	10.10(i)	12/20/2012
10.2(ii)	First Amendment to The October 14, 2011 Lease	10-Q	000-19807	10.10(ii)	3/4/2013
10.2(iii)	Second Amendment to The October 14, 2011 Lease	10-Q	000-19807	10.10(iii)	5/22/2015
10.3	Lease Agreement, dated January 2, 1996 between Synopsys, Inc. and Tarigo-Paul, a California Limited Partnership, (“The January 2, 1996 Lease”)	10-Q	000-19807	10.28	5/14/1996
10.3(i)	First Amendment to The January 2, 1996 Lease	8-K	000-19807	10.42	9/12/2006
10.3(ii)	Second Amendment to The January 2, 1996 Lease	8-K	000-19807	10.41	9/12/2006
10.3(iii)	Third Amendment to The January 2, 1996 Lease	10-K	000-19807	10.8(iii)	12/20/2012
10.3(iv)	Fourth Amendment to The January 2, 1996 Lease	10-K	000-19807	10.8(iv)	12/20/2012
10.3(v)†	Notification of Change of Ownership of Leased Premises under The January 2, 1996 Lease—Effective September 25, 2012	10-K	000-19807	10.8(v)	12/20/2012
10.4*	2006 Employee Equity Incentive Plan, as amended	8-K	000-19807	10.23	4/6/2015
10.5*	Form of Restricted Stock Unit Grant Notice and Award Agreement under 2006 Employee Equity Incentive Plan					X
10.6*	Form of Notice of Grant of Stock Options and Option Agreement under 2006 Employee Equity Incentive Plan					X
10.7*	Employee Stock Purchase Plan, as amended	8-K	000-19807	10.12	4/4/2014
10.8*	2005 Non-Employee Director Equity Incentive Plan, as amended	8-K	000-19807	10.19	4/4/2014
10.9*	Form of Restricted Stock Grant Notice and Award Agreement under 2005 Non-Employee Directors Equity Incentive Plan	10-K	000-19807	10.33	12/16/2011

84

Exhibit Number	Exhibit Description	Incorporated By Reference				Filed or Furnished   Herewith
		Form	File No.	Exhibit	Filing Date
10.10*	Form of Stock Options Grant Notice and Option Agreement under 2005 Non-Employee Directors Equity Incentive Plan	10-K	000-19807	10.34	12/16/2011
10.11*	Deferred Compensation Plan as restated effective August 1, 2002	10-Q	000-19807	10.5	6/10/2004
10.12*	Synopsys Amended and Restated Deferred Compensation Plan II	10-Q	000-19807	10.23	3/9/2009
10.13	Form of Indemnification Agreement for directors and executive officers	8-K	000-19807	99.2	7/14/2011
10.14	Director’s and Officer’s Insurance and Company Reimbursement Policy	S-1	33-45138	10.2	02/24/92 (effective date)
10.15*	Non-Employee Director Compensation Arrangements					X
10.16*	Amended and Restated Employment Agreement, dated June 2, 2008, between Synopsys, Inc. and Dr. Aart de Geus	8-K	000-19807	10.50	6/3/2008
10.17*	Amended and Restated Employment Agreement, dated June 2, 2008, between Synopsys, Inc. and Dr. Chi-Foon Chan	8-K	000-19807	10.51	6/3/2008
10.18*	Executive Incentive Plan 162(m)	8-K	000-19807	10.42	1/28/2010
10.19*	Form of Amended and Restated Executive Change of Control Severance Benefit Plan	10-K	000-19807	10.32	12/22/2008
10.20*	Compensation Recovery Policy	10-K	000-19807	10.46	12/22/2008
21.1	Subsidiaries of Synopsys, Inc.					X
23.1	Consent of KPMG LLP, Independent Registered Public Accounting Firm					X
24.1	Power of Attorney (see signature page to this Annual Report on Form 10-K)					X
31.1	Certification of Co-Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
31.2	Certification of Co-Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X

85

Exhibit Number	Exhibit Description	Incorporated By Reference				Filed or Furnished   Herewith
		Form	File No.	Exhibit	Filing Date
31.3	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
32.1	Certification of Co-Chief Executive Officers and Chief Financial Officer furnished pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code					X
101.INS	XBRL Instance Document					X
101.SCH	XBRL Taxonomy Extension Schema Document					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document					X

*    Indicates a management contract, compensatory plan or arrangement.

†    We have requested confidential treatment for certain portions of this document pursuant to an application for confidential treatment sent to the SEC. We omitted such portions from this filing and filed them separately with the SEC.

86

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		SYNOPSYS, INC.
Date: December 14, 2015	By:	/s/ Trac Pham
		Trac Pham Chief Financial Officer (Principal Financial Officer)

87

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Aart J. de Geus, Chi-Foon Chan and Trac Pham, and each of them, as his true and lawful attorneys-in-fact and agents, with full power of substitution and reconstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Name	Title	Date
/S/    AART J. DE GEUS	Co-Chief Executive Officer (Co-Principal Executive Officer) and Chairman of the Board of Directors	December 14, 2015
Aart J. de Geus
/S/    CHI-FOON CHAN	Co-Chief Executive Officer (Co-Principal Executive Officer), President and Director	December 14, 2015
Chi-Foon Chan
/S/    TRAC PHAM	Chief Financial Officer (Principal Financial Officer)	December 14, 2015
Trac Pham
/S/    SUDHINDRA KANKANWADI	Vice President, Corporate Controller (Principal Accounting Officer)	December 14, 2015
Sudhindra Kankanwadi
/S/    ALFRED F. CASTINO	Director	December 14, 2015
Alfred F. Castino
/S/    JANICE D. CHAFFIN	Director	December 14, 2015
Janice D. Chaffin
/S/    BRUCE R. CHIZEN	Director	December 14, 2015
Bruce R. Chizen
/S/    DEBORAH A. COLEMAN	Director	December 14, 2015
Deborah A. Coleman
/S/    CHRYSOSTOMOS L. NIKIAS	Director	December 14, 2015
Chrysostomos L. Nikias
/S/    JOHN G. SCHWARZ	Director	December 14, 2015
John G. Schwarz
/S/    ROY VALLEE	Director	December 14, 2015
Roy Vallee
/S/    STEVEN C. WALSKE	Director	December 14, 2015
Steven C. Walske

88

EXHIBIT INDEX

Exhibit Number	Exhibit Description	Incorporated By Reference				Filed or Furnished   Herewith
		Form	File No.	Exhibit	Filing Date
3.1	Amended and Restated Certificate of Incorporation	10-Q	000-19807	3.1	9/15/2003
3.2	Amended and Restated Bylaws	8-K	000-19807	3.2	5/23/2012
4.1	Specimen Common Stock Certificate	S-1	33-45138	4.3	02/24/92 (effective date)
10.1	Amended and Restated Credit Agreement, dated May 19, 2015, among Synopsys as Borrower, the several Lenders from time to time parties thereto, Bank of America, N.A. and Wells Fargo Bank, N.A. as Co-Syndication Agents, HSBC Bank USA, N.A., U.S. Bank, N.A., and MUFG Union Bank, N.A. as Co-Documentation Agents, JPMorgan Chase Bank, N.A., as Administrative Agent, and J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, as Co-Lead Arrangers and Co-Bookrunners	8-K	000-19807	10.15	5/20/2015
10.2	Lease Agreement dated October 14, 2011 between Synopsys, Inc. and 690 E. Middlefield Road Fee, LLC, (“The October 14, 2011 Lease”)	10-K	000-19807	10.19	12/16/2011
10.2(i)†	Notification of Change of Ownership of Leased Premises under The October 14, 2011 Lease—Effective May 9, 2012	10-K	000-19807	10.10(i)	12/20/2012
10.2(ii)	First Amendment to The October 14, 2011 Lease	10-Q	000-19807	10.10(ii)	3/4/2013
10.2(iii)	Second Amendment to The October 14, 2011 Lease	10-Q	000-19807	10.10(iii)	5/22/2015
10.3	Lease Agreement, dated January 2, 1996 between Synopsys, Inc. and Tarigo-Paul, a California Limited Partnership, (“The January 2, 1996 Lease”)	10-Q	000-19807	10.28	5/14/1996
10.3(i)	First Amendment to The January 2, 1996 Lease	8-K	000-19807	10.42	9/12/2006
10.3(ii)	Second Amendment to The January 2, 1996 Lease	8-K	000-19807	10.41	9/12/2006
10.3(iii)	Third Amendment to The January 2, 1996 Lease	10-K	000-19807	10.8(iii)	12/20/2012
10.3(iv)	Fourth Amendment to The January 2, 1996 Lease	10-K	000-19807	10.8(iv)	12/20/2012

89

Exhibit Number	Exhibit Description	Incorporated By Reference				Filed or Furnished   Herewith
		Form	File No.	Exhibit	Filing Date
10.3(v)†	Notification of Change of Ownership of Leased Premises under The January 2, 1996 Lease—Effective September 25, 2012	10-K	000-19807	10.8(v)	12/20/2012
10.4*	2006 Employee Equity Incentive Plan, as amended	8-K	000-19807	10.23	4/6/2015
10.5*	Form of Restricted Stock Unit Grant Notice and Award Agreement under 2006 Employee Equity Incentive Plan					X
10.6*	Form of Notice of Grant of Stock Options and Option Agreement under 2006 Employee Equity Incentive Plan					X
10.7*	Employee Stock Purchase Plan, as amended	8-K	000-19807	10.12	4/4/2014
10.8*	2005 Non-Employee Director Equity Incentive Plan, as amended	8-K	000-19807	10.19	4/4/2014
10.9*	Form of Restricted Stock Grant Notice and Award Agreement under 2005 Non-Employee Directors Equity Incentive Plan	10-K	000-19807	10.33	12/16/2011
10.10*	Form of Stock Options Grant Notice and Option Agreement under 2005 Non-Employee Directors Equity Incentive Plan	10-K	000-19807	10.34	12/16/2011
10.11*	Deferred Compensation Plan as restated effective August 1, 2002	10-Q	000-19807	10.5	6/10/2004
10.12*	Synopsys Amended and Restated Deferred Compensation Plan II	10-Q	000-19807	10.23	3/9/2009
10.13	Form of Indemnification Agreement for directors and executive officers	8-K	000-19807	99.2	7/14/2011
10.14	Director’s and Officer’s Insurance and Company Reimbursement Policy	S-1	33-45138	10.2	02/24/92 (effective date)
10.15*	Non-Employee Director Compensation Arrangements					X
10.16*	Amended and Restated Employment Agreement, dated June 2, 2008, between Synopsys, Inc. and Dr. Aart de Geus	8-K	000-19807	10.50	6/3/2008
10.17*	Amended and Restated Employment Agreement, dated June 2, 2008, between Synopsys, Inc. and Dr. Chi-Foon Chan	8-K	000-19807	10.51	6/3/2008

90

Exhibit Number	Exhibit Description	Incorporated By Reference				Filed or Furnished   Herewith
		Form	File No.	Exhibit	Filing Date
10.18*	Executive Incentive Plan 162(m)	8-K	000-19807	10.42	1/28/2010
10.19*	Form of Amended and Restated Executive Change of Control Severance Benefit Plan	10-K	000-19807	10.32	12/22/2008
10.20*	Compensation Recovery Policy	10-K	000-19807	10.46	12/22/2008
21.1	Subsidiaries of Synopsys, Inc.					X
23.1	Consent of KPMG LLP, Independent Registered Public Accounting Firm					X
24.1	Power of Attorney (see signature page to this Annual Report on Form 10-K)					X
31.1	Certification of Co-Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
31.2	Certification of Co-Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
31.3	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act					X
32.1	Certification of Co-Chief Executive Officers and Chief Financial Officer furnished pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code					X
101.INS	XBRL Instance Document					X
101.SCH	XBRL Taxonomy Extension Schema Document					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document					X

*Indicates a management contract, compensatory plan or arrangement.

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†    We have requested confidential treatment for certain portions of this document pursuant to an application for confidential treatment sent to the SEC. We omitted such portions from this filing and filed them separately with the SEC.

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EX-10.5

EXHIBIT 10.5

SYNOPSYS, INC.
RESTRICTED STOCK UNIT GRANT NOTICE AND AWARD AGREEMENT(2006 EMPLOYEE EQUITY INCENTIVE PLAN)

Synopsys, Inc. (the “Company”), pursuant to Section 7(b) of the Company’s 2006 Employee Equity Incentive Plan (the “Plan”), hereby awards to Participant a Restricted Stock Unit Award covering the number of restricted stock units (the “Restricted Stock Units”) set forth below (the “Award”). This Award is subject to all of the terms and conditions as set forth in this Restricted Stock Unit Grant Notice and Award Agreement (such agreement, together with any special terms and conditions for your country in the Appendix hereto, the “Agreement”) and the Plan, which is incorporated by reference herein in its entirety. Defined terms not explicitly defined in this Agreement but defined in the Plan shall have the same definitions as in the Plan.

Participant:    %%FIRST_NAME%-% %%LAST_NAME%-%

ID:    %%EMPLOYEE_IDENTIFIER%-%

Award Number:    %%OPTION_NUMBER%-%    

Date of Grant:    %%OPTION_DATE%-%    

Vesting Commencement Date:     %%VEST_BASE_DATE%-%    

Number of Restricted Stock Units:    %%TOTAL_SHARES_GRANTED%-%    

Payment for Common Stock: Participant’s future     services    

Vesting Schedule: The Restricted Stock Units shall vest in accordance with the following vesting schedule; provided, however, that the Participant’s Continuous Service has not terminated prior to each such vesting date.     

Units	Vest Type	Full Vest
%%SHARES_PERIOD1%-%	%%VEST_TYPE_PERIOD1%-%	%%VEST_DATE_PERIOD1%-%
%%SHARES_PERIOD2%-%	%%VEST_TYPE_PERIOD2%-%	%%VEST_DATE_PERIOD2%-%
%%SHARES_PERIOD3%-%	%%VEST_TYPE_PERIOD3%-%	%%VEST_DATE_PERIOD3%-%
%%SHARES_PERIOD4%-%	%%VEST_TYPE_PERIOD4%-%	%%VEST_DATE_PERIOD4%-%

Delivery Schedule: The Company shall deliver one share of Common Stock for each Restricted Stock Unit that vests on an applicable vesting date, subject to the provisions of Section 3 below and subject to satisfaction of Tax-Related Items as described in Section 10 below. Each installment of Restricted Stock Units that vests hereunder is intended to constitute a “separate payment” for purposes of U.S. Treasury Regulation Section 1.409A-2(b)(2).

Compensation Recovery: The Restricted Stock Units granted herein are subject to the Compensation Recovery Policy applicable to corporate staff, adopted by the Company in December

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2008, as amended from time to time (the “Compensation Recovery Policy”) and any required compensation recovery provisions under applicable laws or regulations.

Additional Terms/Acknowledgements: Participant acknowledges receipt of, and understands and agrees to, this Agreement, the Plan,the related Plan prospectus, the Company’s Insider Trading Policy, the Company’s Section 16 Officer and Director Trading Procedures (if applicable) and the Compensation Recovery Policy (if applicable). Participant further acknowledges that as of the Date of Grant, the Agreement and the Plan set forth the entire understanding between the Participant and the Company regarding the award of the Restricted Stock Units and the underlying Common Stock and supersede all prior oral and written agreements on that subject with the exception of (i) Awards previously granted and delivered to Participant under the Plan, and (ii) if applicable to you, (A) the terms of any Company change of control severance plan or provisions that are in effect and applicable at the time of a qualifying termination or event and (B) the Compensation Recovery Policy (if applicable).

ATTACHMENTS: Appendix

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The terms and conditions of your Award, in addition to those set forth on the first page of this Agreement, are as follows.

1.NUMBER OF RESTRICTED STOCK UNITS AND SHARES OF COMMON STOCK.

(a)The number of Restricted Stock Units subject to your Award and the number of shares of Common Stock deliverable with respect to such Restricted Stock Units may be adjusted from time to time for Capitalization Adjustments as described in Section 9(a) of the Plan. You shall receive no benefit or adjustment to your Award with respect to any cash dividend or other distribution that does not result in a Capitalization Adjustment pursuant to Section 9(a) of the Plan; provided, however, that this sentence shall not apply with respect to any shares of Common Stock that are delivered to you in connection with your Award after such shares have been delivered to you.

(b)Any additional Restricted Stock Units, shares of Common Stock, cash or other property that becomes subject to the Award pursuant to this Section 1 shall be subject, in a manner determined by the Board, to the same forfeiture restrictions, restrictions on transferability, and time and manner of delivery as applicable to the other Restricted Stock Units and Common Stock covered by your Award.

(c)Notwithstanding the provisions of this Section 1, no fractional Restricted Stock Units or rights for fractional shares of Common Stock shall be created pursuant to this Section 1. The Board shall, in its discretion, determine an equivalent benefit for any fractional Restricted Stock Units or fractional shares that might be created by the adjustments referred to in this Section 1.

2.VESTING.

Subject to the limitations contained in this Agreement and the Plan, the Restricted Stock Units shall vest as provided in the vesting schedule set forth above, provided that vesting shall cease upon the termination of your Continuous Service as determined in accordance with Section 11(h) below. Any Restricted Stock Units that have not yet vested shall be forfeited upon the termination of your Continuous Service.

3.DISTRIBUTION OF SHARES OF COMMON STOCK.

(a)    Subject to the provisions of this Agreement and the Plan, in the event one or more Restricted Stock Units vests, the Company shall deliver to you one (1) share of Common Stock for each Restricted Stock Unit that vests, subject to satisfaction of Tax-Related Items as described in Section 10 below. Except as set forth below, the delivery to you of the appropriate number of shares of Common Stock shall be made on the applicable vesting date or as soon as practicably possible thereafter. The issuance date determined by this paragraph is referred to as the “Issuance Date.” If the Issuance Date falls on a date that is not a business day, delivery shall instead occur on the next following business day. The form of such delivery (e.g., a stock certificate or electronic entry evidencing such shares) shall be determined by the Company.

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(b)    Notwithstanding the foregoing, if (i) the Issuance Date does not occur (1) during an “open window period” applicable to you, as determined by the Company in accordance with the Company’s Insider Trading Policy, or (2) on a date when you are otherwise permitted to sell shares of Common Stock on an established stock exchange or stock market, and (ii) the Company elects, prior to the Issuance Date, (1) not to satisfy the tax withholding obligations described in Section 10 by withholding shares of Common Stock from the shares otherwise due, on the Issuance Date, to you under this Agreement, and (2) not to permit or require you to enter into an immediate sale commitment with a broker-dealer pursuant to Section 10 of this Agreement (including but not limited to a commitment under a previously established Company-approved 10b5-1 trading plan), then such shares shall not be delivered on such Issuance Date and shall instead be delivered on the first business day of the next occurring open window period applicable to you or the next business day when you are not prohibited from selling shares of Common Stock in the open public market, but in no event later than the date that is the 15th day of the third calendar month of the year following the year in which the shares of Common Stock under this Agreement are no longer subject to a “substantial risk of forfeiture” within the meaning of Treasury Regulation Section 1.409A-1(d).

4.PAYMENT BY YOU. Subject to Section 10 below, except as otherwise provided herein or under applicable law, you will not be required to make any payment to the Company with respect to your receipt of the Award, vesting of the Restricted Stock Units, or the delivery of the shares of Common Stock underlying the Restricted Stock Units.

5.SECURITIES LAW COMPLIANCE. You may not be issued any Common Stock under your Award unless the shares of Common Stock are either (i) then registered under the Securities Act, or (ii) the Company has determined that such issuance would be exempt from the registration requirements of the Securities Act. Your Award must also comply with other applicable laws and regulations governing the Award, and you shall not receive such Common Stock if the Company determines that such receipt would not be in material compliance with such laws and regulations.

6.RESTRICTIVE LEGENDS. The Common Stock issued under your Award shall be endorsed with appropriate legends, if any, determined by the Company.

7.TRANSFER RESTRICTIONS. Prior to the time that shares of Common Stock are delivered to you, you may not transfer, pledge, sell or otherwise dispose of the shares in respect of your Award. For example, you may not use shares that may be issued in respect of your Restricted Stock Units as security for a loan, nor may you transfer, pledge, sell or otherwise dispose of such shares. This restriction on transfer will lapse upon delivery to you of shares in respect of your vested Restricted Stock Units. Your Award is not transferable, except by will or by the laws of descent and distribution. In the event of divorce, you are encouraged to discuss the proposed treatment of the Restricted Stock Units with the Company prior to finalizing any domestic relations order if you reside in the United States.

8.AWARD NOT A SERVICE CONTRACT. Your Award is not an employment or service contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation on your part to continue in the service of the Company or any Affiliate, or on the part of the Company or any Affiliate to continue such service. In addition, nothing in your Award

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shall obligate the Company or any Affiliate, their respective stockholders, boards of directors or employees to continue any relationship that you might have as an Employee or Consultant of the Company or any Affiliate. Finally, your participation in the Plan shall not create a right to further employment or service with the Employer (as defined in Section 10 below) and shall not interfere with the ability of the Employer to terminate your employment or service relationship at any time with or without cause.

9.UNSECURED OBLIGATION. Your Award is unfunded, and even as to any Restricted Stock Units which vest, you shall be considered an unsecured creditor of the Company with respect to the Company’s obligation, if any, to issue Common Stock pursuant to this Agreement. You shall not have voting or any other rights as a stockholder of the Company with respect to the Common Stock acquired pursuant to this Agreement until such Common Stock is issued to you pursuant to Section 3 of this Agreement. Upon such issuance, you will obtain full voting and other rights as a stockholder of the Company with respect to the Common Stock so issuedand held by you. Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person.

10.WITHHOLDING OBLIGATIONS.

(a)You acknowledge that, regardless of any action the Company or your employer if different from the Company, whether current or former (the “Employer”) takes with respect to Tax-Related Items, the ultimate liability for any or all income tax, social insurance contributions, payroll tax, fringe benefits tax, payment on account or other tax-related withholding related to your participation in the Plan and legally applicable to you (“Tax-Related Items”) is and remains your responsibility and may exceed the amount actually withheld by the Employer. You further acknowledge that the Employer (1) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant, vesting or settlement of the Award, the subsequent sale of shares delivered pursuant thereto and the receipt of any dividends; and (2) does not commit to structure the terms of the grant or any aspect of the Award to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you are or become subject to tax in more than one jurisdiction, you acknowledge that the Employer may be required to withhold, account for, and/or otherwise cause you to tender a payment to the Employer in the amount of the Tax-Related Items arising in each jurisdiction.

(b)On or before the time you receive a distribution of Common Stock pursuant to your Award, or at any time thereafter as requested by the Company, you hereby agree to make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. In this regard, you hereby authorize the Employer or its respective agents, at their discretion, to withhold all applicable Tax-Related Items by one or a combination of the following: (1) withholding in shares of Common Stock issuable to you upon vesting of the Restricted Stock Units, the number of which shall be determined to comply with appropriate tax laws and as would be otherwise necessary or desirable; or (2) withholding from your wages or other cash compensation paid to you by the Employer and/or the Company; or (3) withholding from the proceeds of the sale of shares of Common Stock acquired upon vesting of the Restricted Stock Units, either through a

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mandatory sale arranged by the Company (on your behalf pursuant to this authorization without further consent) or a voluntary sale (including permitting or requiring you to enter into an immediate sale commitment with a broker-dealer that is a member of the Financial Industry Regulatory Authority). Notwithstanding that the Appendix for your country may specify a particular method by which the Company or the Employer intends to recover the Tax-Related Items from you, the Company reserves the right to recover Tax-Related Items by any of the methods set forth in Section 10 of this Agreement, except that if you are an executive or director within the meaning of Section 16 of the Exchange Act and the regulations thereunder, Tax-Related Items shall be recovered by withholding in shares of Common Stock as described in this Section 10(b)(1) above.

(c)Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding rates or other applicable withholding rates, including maximum applicable rates, in which case you will receive a refund of any over-withheld amount in cash and will have no entitlement to the Common Stock equivalent. If the obligation for the Tax-Related Items is satisfied by withholding in shares of Common Stock, then you will be deemed to have been issued the full number of shares of Common Stock subject to the vested Restricted Stock Units, notwithstanding that a number of the shares are held back solely for the purpose of paying Tax-Related Items. You will have no further rights, title or interests in or to the number of shares of Common Stock that are held back solely for the purpose of paying the Tax-Related Items.

(d)You shall pay to the Employer any amount of Tax-Related Items that the Employer may be required to withhold as a result of your receipt of the Award and/or the shares issuable pursuant thereto that cannot be satisfied by the means previously described. Unless the tax withholding obligations of the Company and/or the Employer are satisfied, the Company shall have no obligation to deliver to you any Common Stock or the proceeds from any sale of the shares of Common Stock.

(e)Finally, in the event the Company’s obligation to withhold arises prior to the delivery to you of Common Stock or it is determined after the delivery of Common Stock to you that the amount of the Company’s withholding obligation was greater than the amount withheld by the Company, you agree to indemnify and hold the Company harmless from any failure by the Company to withhold the proper amount.

11.NATURE OF GRANT. In accepting this Award, you acknowledge, understand and agree that:

(a)the Plan is established voluntarily by the Company, is discretionary in nature, and may be modified, amended, suspended or terminated by the Company as provided in the Plan;

(b)the grant of the Award and any other awards under the Plan is voluntary and occasional and does not create any contractual or other right to receive Awards, shares or any other benefit or compensation in lieu of future awards, even if awards have been granted in the past;

(c)all decisions with respect to future awards, if any, will be at the sole discretion of the Company;

6

(d)you are voluntarily participating in the Plan;

(e)the Award and the shares of Common Stock subject to the Award, and the income and value of same, are not intended to replace any pension rights or compensation;

(f)the Award and the shares of Common Stock subject to the Award, and the income and value of same, are not paid in lieu of any normal or expected compensation or salary for purposes of calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, life or accident insurance benefits, pension or retirement benefits or similar payments;

(g)unless otherwise agreed with the Company, the Award and any shares deliverable thereunder, and the income and value of same, are not granted as consideration for, or in connection with, the service you may provide as a director of an Affiliate of the Company;

(h)for purposes of the Award, your Continuous Service will be considered terminated as of the date determined by the Company in its sole discretion;

(i)the future value of the shares underlying the Award is unknown and cannot be predicted;

(j)should you die owning shares of Common Stock or the Award, such shares or the Award may subject your estate to United States federal estate taxes, and that you should seek your own tax advice regarding this potential tax;

(k)you disclaim any entitlement to compensation or damages arising from the termination of the Award, including as the result of termination of your Continuous Service with the Employer (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or providing services or the terms of any employment or service agreement), or diminution in value of the shares of Common Stock, and in consideration of the grant of the Award to which you are not otherwise entitled, you hereby agree not to bring any claim against the Company, the Employer and any Affiliate, irrevocably waive your ability, if any, to bring such claim, and release the Company, the Employer and any Affiliate from any such claim that may be allowed by a court of competent jurisdiction;

(l)the Plan and this Agreement set forth the entire understanding between you, the Company, the Employer, and any Affiliate regarding the acquisition of the shares of Common Stock and supersede all prior oral and written agreements pertaining to the Award; and

(m)the following provisions apply only if you are providing services outside the United States:

(i)the Award and the shares of Common Stock subject to the Award, and the value and income of same, are extraordinary items that are not part of normal or expected compensation for any purpose; and

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(ii)neither the Company, the Employer nor any Affiliate shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Award or of any amounts due to you pursuant to the vesting of the Award or the subsequent sale of any shares of Common Stock acquired upon vesting.

12.DATA PRIVACY.

(a)You hereby explicitly, voluntarily and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this document by and among, as applicable, the Company, the Employer or any Affiliate for the exclusive purpose of implementing, administering and managing your participation in the Plan.

(b)    You understand that the Company and the Employer may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all awards or any other entitlement to shares of stock awarded, canceled, settled, vested, unvested or outstanding in your favor (the “Personal Data”), for the purpose of implementing, administering and managing the Plan. You understand that the Personal Data may be transferred to E*Trade Securities LLC or any other third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the United States or elsewhere, and that the recipient’s country may have different data privacy laws and protections than your country. You understand that, if you reside outside the United States, you may request a list with the names and addresses of any potential recipients of the Personal Data by contacting your local human resources representative. You authorize the recipients to receive, possess, use, retain and transfer the Personal Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Personal Data as may be required to a broker or other third party with whom you may elect to deposit any shares of Common Stock acquired upon vesting of the Award. You understand that the Personal Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that, if you reside outside the United States, you may, at any time, view the Personal Data, request additional information about the storage and processing of the Personal Data, request any necessary amendments to the Personal Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent or later seek to revoke your consent, your employment status or service or career with the Employer will not be affected; the only consequence of refusing or withdrawing your consent is that the Company would not be able to grant you restricted stock units or other Awards or administer or maintain such Awards. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.

13.NOTICES. Any notices provided for in your Award or the Plan shall be given in writing to each of the other parties hereto and shall be deemed effectively given on the earlier of (i) the date of personal delivery, including delivery by express courier, (ii) the date that electronic

8

notice is sent by you or Shareholder Services (as applicable), in the case of notices provided by electronic means, or (iii) the date that is five (5) days after deposit in the United States Post Office (whether or not actually received by the addressee), by registered or certified mail with postage and fees prepaid, addressed at the following addresses, or at such other address(es) as a party may designate by ten (10) days’ advance written notice to each of the other parties hereto:

COMPANY:        Synopsys, Inc.

Shareholder Services

690 East Middlefield Road

Mountain View, CA 94043

United States of America

PARTICIPANT: Your address as on file with the Company at the time notice is given

14.HEADINGS. The headings of the Sections in this Agreement are inserted for convenience only and shall not be deemed to constitute a part of this Agreement or to affect the meaning of this Agreement.

15.AMENDMENT. This Agreement may be amended solely by the Company by a writing (including an electronic writing) which specifically states that it is amending this Agreement, so long as a copy of such amendment is delivered to you, and provided that no such amendment impairing your rights hereunder may be made without your written consent. Without limiting the foregoing, the Company reserves the right to change, by written notice (including via electronic delivery) to you, the provisions of this Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant as a result of any change in applicable laws or regulations or any future law, regulation, ruling, or judicial decision, provided that any such change shall be applicable only to rights relating to that portion of the Award which is then subject to restrictions as provided herein.

16.MISCELLANEOUS.

(a)The rights and obligations of the Company under your Award shall be transferable by the Company to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Company’s successors and assigns.

(b)All obligations of the Company under the Plan and this Agreement shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

(c)You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of your Award.

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(d)You acknowledge and agree that you have reviewed your Award in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully understand all provisions of your Award.

(e)This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

(f)The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying shares of Common Stock. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

(g)If you have received this or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

(h)The Company reserves the right to impose other requirements on your participation in the Plan, on the Award and on any shares of Common Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative purposes, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

17.GOVERNING PLAN DOCUMENT. Your Award is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award and those of the Plan, the provisions of the Plan shall control; provided, however, that Section 3 of this Agreement shall govern the timing of any distribution of Common Stock under your Award. The Company shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation, and application of the Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and all interpretations and determinations made by the Board shall be final and binding upon you, the Company, and all other interested persons. No member of the Board shall be personally liable for any action, determination, or interpretation made in good faith with respect to the Plan or this Agreement.

18.APPENDIX. Notwithstanding any provisions in this Agreement, the Award shall be subject to the special terms and conditions set forth in the Appendix to this Agreement for jurisdictions in which you are subject to the applicable laws. Moreover, if you relocate to one of the countries included in the Appendix or otherwise become subject to the laws of such jurisdiction, the special terms and conditions for such country will apply to you, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative purposes. The Appendix constitutes part of this Agreement.

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19.EFFECT ON OTHER EMPLOYEE BENEFIT PLANS. The value of the Award subject to this Agreement shall not be included as compensation, earnings, salaries, or other similar terms used when calculating benefits under any employee benefit plan sponsored by the Company or any Affiliate.

20.CHOICE OF LAW AND VENUE. The interpretation, performance and enforcement of this Agreement shall be governed by the law of the state of Delawarewithout regard to such state’s conflicts of laws rules. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this Award or the Agreement, the parties hereby submit to and consent to the sole and exclusive jurisdiction of the courts of the State of Californiaand agree that such litigation shall be conducted only in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California.

21.SEVERABILITY. If all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any section of this Agreement (or part of such a section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such section or part of a section to the fullest extent possible while remaining lawful and valid.

22.OTHER DOCUMENTS. You hereby acknowledge receipt of, or the right to receive, a document providing the information (such as public filings) required by Rule 428(b)(1) promulgated under the Securities Act.

23.ELECTRONIC DELIVERY AND ACCEPTANCE. The Company may, in its sole discretion, decide to deliver any documents related to the Award granted hereunder or to participation in the Plan (or future restricted stock units or other equity awards that may be granted under the Plan) by electronic means (including by filing documents publicly with at www.sec.gov or any successor website thereto) or to request your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and, if requested, agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company. Electronic delivery may include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Company’s discretion. You acknowledge that you may receive from the Company a paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, through a postal service or electronic mail. You further acknowledge that you will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, you understand that you must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also, you understand that your consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if you have provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail.

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24.INSIDER TRADING RESTRICTIONS/MARKET ABUSE LAWS. You acknowledge that you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell the shares of Common Stock or rights to shares under the Plan during such times as you are considered to have “inside information” regarding the Company (as defined by the laws in your country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under the Company's Insider Trading Policy. You acknowledge that it is your responsibility to comply with any applicable restrictions, and you are advised to speak to your personal advisor on this matter.

25.FOREIGN ASSET/ACCOUNT REPORTING REQUIREMENTS. You acknowledge that there may be certain foreign asset and/or account reporting requirements which may affect your ability to acquire or hold shares of Common Stock acquired under the Plan or cash received from participating in the Plan (including from any dividends paid on shares of Common Stock acquired under the Plan) in a brokerage or bank account outside your country. You may be required to report such accounts, assets or transactions to the tax or other authorities in your country. You also may be required to repatriate sale proceeds or other funds received as a result of your participation in the Plan to your country through a designated bank or broker within a certain time after receipt. You acknowledge that it is your responsibility to be compliant with such regulations, and you are advised to consult your personal legal advisor for any details.

* * * * *

Your signature below or online acceptance (where permitted) indicates that you have read this Agreement (including any appendices hereto) and agree to be bound by the terms and conditions of the Plan and this Agreement.

	Synopsys, Inc.	Participant
By:
	Title: Date:%%OPTION_DATE%-%	%%FIRST_NAME%-% %%LAST_NAME%-% Date:

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Appendix

Synopsys, Inc.

Restricted Stock Unit Grant Notice and Award Agreement

This Appendix, which is part of the Restricted Stock Unit Grant Notice and Award Agreement, contains the additional terms and conditions of the Restricted Stock Units that will apply to Participants in the countries listed below. If you are a citizen or resident of a country other than the one in which you currently are residing and/or working, you transfer employment and/or residency to another country after the Award is granted or you are considered a resident of another country for local law purposes, the Company shall, in its sole discretion, determine to what extent the terms and conditions included herein will apply under these circumstances. Capitalized terms used but not defined herein shall have the same meanings assigned to them in the Plan and/or the Agreement.

Belgium

There are no country-specific terms or conditions.

Canada

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

A number of shares of Common Stock sufficient to cover any Tax-Related Items that the Company or the Employer is required to withhold will automatically be sold (on your behalf pursuant to this authorization) when your Award vests. You will receive the net shares remaining after such withholding obligations and any broker fees and commissions have been satisfied.

Settlement in Shares. Notwithstanding any discretion contained in the Plan to settle the Award in cash, due to tax laws considerations in Canada, Restricted Stock Units will be settled in shares of Common Stock only and do not provide any right for you to receive a cash payment.

Finland

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

A number of shares of Common Stock sufficient to cover any Tax-Related Items that the Company or the Employer is required to withhold will automatically be sold (on your behalf pursuant to this authorization) when your Award vests. You will receive the net shares remaining after such withholding obligations and any broker fees and commissions have been satisfied.

France

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

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A number of shares of Common Stock sufficient to cover any Tax-Related Items that the Company or the Employer is required to withhold will automatically be sold (on your behalf pursuant to this authorization) when your Award vests. You will receive the net shares remaining after such withholding obligations and any broker fees and commissions have been satisfied.

Consent to Receive Information in English. By accepting the Restricted Stock Units, you confirm having read and understood the Plan and Agreement, including all terms and conditions included therein, which were provided in the English language. You accept the terms of those documents accordingly.

En acceptant les Restricted Stock Units, vous confirmez avoir lu et compris le Plan and le Contrat y relatifs, incluant leurs termes et conditions, qui ont été transmis en langue anglaise. Vous acceptez les dispositions de ces documents en connaissance de cause.

Germany

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

A number of shares of Common Stock sufficient to cover any Tax-Related Items that the Company or the Employer is required to withhold will automatically be sold (on your behalf pursuant to this authorization) when your Award vests. You will receive the net shares remaining after such withholding obligations and any broker fees and commissions have been satisfied.

Hong Kong

Securities Warning. The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You should exercise caution in relation to the offer.In accepting the Award, you understand and acknowledge that the Restricted Stock Units and any shares of Common Stock issued at vesting of the Restricted Stock Units do not constitute a public offering of securities under Hong Kong law and are available only to employees and consultants of the Company and its Affiliates. The Agreement, including this Appendix, the Plan and other incidental communication materials (i) have not been prepared in accordance with and are not intended to constitute a “prospectus” for a public offering of securities under the applicable securities legislation in Hong Kong, and (ii) are intended only for your personal use and may not be distributed to any other person. If you are in any doubt about any of the contents of the Agreement, including this Appendix, or the Plan, you should obtain independent professional advice.

Settlement in Shares. Notwithstanding any discretion contained in the Plan to settle the Award in cash, due to tax law considerations in Hong Kong, the Restricted Stock Units shall be settled in shares of Common Stock only and do not provide any right for you to receive a cash payment.

Sale of Shares. If the Restricted Stock Units vest within six months of the Date of Grant, you agree that you will not dispose of the shares of Common Stock acquired prior to the six-month anniversary of the Date of Grant.

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Hungary

There are no country-specific terms or conditions.

India

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

The Employer will withhold any Tax-Related Items from your wages when your Award vests.

Ireland

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

A number of shares of Common Stock sufficient to cover any Tax-Related Items that the Company or the Employer is required to withhold will automatically be sold (on your behalf pursuant to this authorization) when your Award vests. You will receive the net shares remaining after such withholding obligations and any broker fees and commissions have been satisfied.

Israel

Trust Arrangement. You understand and agree that the Restricted Stock Units are granted subject to and in accordance with the Synopsys, Inc. 2006 Employee Equity Incentive Plan Israeli Subplan (the “Subplan”), the trust deed between the Company and ESOP Management and Trust Services Ltd. or any successor trustee (the “Trustee”), the Confirmation Letter -- Trustee 102 Awards, the Agreement and the Plan. You further understand and agree that the Restricted Stock Units and any shares of Common Stock issued upon vesting of the Restricted Stock Units are intended to qualify for the favorable tax treatment available in Israel pursuant to the provisions of the 102 Capital Gains Track (as defined in the Subplan). The Company does not make any undertaking or representation to maintain the qualified status of the Restricted Stock Units. In the event of any inconsistencies between the Subplan, the Agreement and/or the Plan, you agree that the Subplan will govern the Restricted Stock Units granted to you in Israel.

If you have not already signed the Confirmation Letter -- Trustee 102 Awards provided by ESOP Management and Trust Services Ltd. or the Employer in connection with grants made under the Subplan, then you must print, sign and deliver the signed copy of the Confirmation Letter within 90 days to ESOP Management and Trustee Services Ltd. by email to esop-helpdesk@esop.co.il or by fax to 972-3-7602632. If you deliver your signed Confirmation Letter by fax, you should confirm receipt by contacting ESOP Management and Trust Services Ltd. by email at esop-helpdesk@esop.co.il or by phone at 1700-70-3767. If the Trustee does not receive the signed Confirmation Letter within 90 days, the Restricted Stock Units may not qualify for the favorable tax treatment under Section 102.

Distribution of Shares of Common Stock & Transfer Restrictions. This provision supplements Section 3 and Section 7 of the Agreement:

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To receive the favorable tax treatment provided for in Section 102, the Restricted Stock Units and the shares of Common Stock issued upon vesting of the Restricted Stock Units will be held or controlled by the Trustee, pursuant to the terms of the trust deed, for your benefit, during the Required Holding Period (as defined in the Subplan), which, until further election by the Company, shall be twenty-four (24) months from the Date of Grant, or any other period determined under the ITO (as defined in the Subplan) as now in effect or as hereafter amended or determined by the Israeli Income Tax Authority. You may still access your Restricted Stock Units and sell shares of Common Stock through your account with the Company's designated broker, subject to the terms set forth in this Appendix. You hereby understand and agree you will not require the Company's designated broker or the Trustee to release or sell the shares of Common Stock during the Required Holding Period. After the Required Holding Period has expired, the shares of Common Stock issued at vesting of the Restricted Stock Units will continue to be held by the Trustee until the earlier of (i) the receipt by the Trustee of an acknowledgment from the Israeli Income Tax Authority that you have paid all applicable taxes due pursuant to the ITO and Section 102, or (ii) the Trustee withholds any applicable tax due pursuant to the ITO and Section 102. Notwithstanding the above, if any release or sale of shares of Common Stock occurs during the Required Holding Period, the tax consequences under Section 102 shall apply to and shall be borne solely by you.

Securities Law Exemption. An exemption from the requirement to file a prospectus with respect to the Plan has been granted to the Company by the Israeli Securities Authority. Copies of the Plan and Form S-8 registration statement for the Plan file with the United States Securities and Exchange Commission are available free of charge upon request at your local HR department.

Italy

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

A number of shares of Common Stock sufficient to cover any Tax-Related Items that the Company or the Employer is required to withhold will automatically be sold (on your behalf pursuant to this authorization) when your Award vests. You will receive the net shares remaining after such withholding obligations and any broker fees and commissions have been satisfied.

Data Privacy. The following provision replaces Section 12 of the Agreement:

You hereby acknowledge that your personal data is collected, used, processed and transferred outside of the European Union, as described in this Agreement by and among, as applicable, the Employer, the Company and any Affiliate for the exclusive purpose of implementing, administering and managing your participation in the Plan. You understand that the Employer and/or the Company hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, national insurance number or other identification number, salary, nationality, job title, any shares of Common Stock or directorships held in the Company, details of all Restricted Stock Units or other entitlement to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of implementing, administering and managing the Plan (“Data”).

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You are aware that providing the Company with the Data is necessary for the performance of this Agreement and that your refusal to provide the Data would make it impossible for the Company to perform its contractual obligations and may impact your ability to vest in or realize benefits from the Restricted Stock Units. Your Data shall be accessible within the Company's organization only by the persons specifically charged with Data-processing operations and by the persons that need to access the Data because of their duties and position in relation to the performance of the contract. The Controller of personal data-processing is the Company, with registered offices at 690 East Middlefield Road, Mountain View, CA 94043, U.S.A., and, pursuant to Legislative Decree no. 196/2003, its representative in Italy is Synopsys Italia S.r.l. with registered offices at Centro Direzionale Colleoni, Viale Colleoni 11 - Palazzo Sirio 3, 20041 Agrate Brianza (MI), Italy.

You understand that Data will be transferred to E*Trade Securities LLC and/or to such other stock plan service provider as may be selected by the Company, which are assisting the Company with the implementation, administration and management of the Plan and that Data may be transferred to certain other third parties assisting in the implementation, administration and management of the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom you may elect to deposit any shares of Common Stock acquired upon vesting of the Restricted Stock Units. You understand that these recipients, which may receive, possess, use, retain and transfer such Data for the above-mentioned purposes, may be located in the United States, or elsewhere, including outside of the European Economic Area, and that the recipient’s country may have different data privacy laws and protections than your country. The processing activity, including transfer of Data abroad, including outside of the European Economic Area, as herein specified and pursuant to applicable laws and regulations, does not require your consent thereto as the processing is necessary to performance of contractual obligations related to the implementation, administration and management of the Plan.

You understand that Data-processing relating to the purposes above specified shall take place under automated or non-automated conditions, anonymously when possible, that comply with the purposes for which Data is collected and with confidentiality and security provisions as set forth by applicable laws and regulations, with specific reference to Legislative Decree no. 196/2003. You understand that Data will be held only as long as is required by the law or is necessary to implement, administer and manage your participation in the Plan. You understand that, pursuant to Article 7 of Legislative Decree No. 196/2003, you have the right, without limitation, to access, delete, update, request the rectification of your Data and cease, for legitimate reasons, the Data-processing. Furthermore, you are aware that the Data will not be used for direct marketing purposes. In addition, the Data provided can be reviewed and questions or complaints can be addressed by contacting your local HR representative.

Plan Document Acknowledgment.  By accepting the Restricted Stock Units, you acknowledge that you have received a copy of the Plan and the Agreement and have reviewed the Plan and the Agreement, including this Appendix, in their entirety and fully understand and accept all provisions thereof.

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You further acknowledge that you have read, understand and specifically and expressly accept the following sections of the Agreement: Section 2: Vesting; Section 3: Distribution of Shares of Common Stock; Section 7: Transfer Restrictions; Section 8: Award Not a Service Contract; Section 10: Withholding Obligations; Section 11: Nature of Grant, Section 16: Miscellaneous; Section 20: Choice of Law and Venue; and the Data Privacy provisions set forth above.

Japan

There are no country-specific terms or conditions.

Korea

There are no country-specific terms or conditions.

Netherlands

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

A number of shares of Common Stock sufficient to cover any Tax-Related Items that the Company or the Employer is required to withhold will automatically be sold (on your behalf pursuant to this authorization) when your Award vests. You will receive the net shares remaining after such withholding obligations and any broker fees and commissions have been satisfied.

People’s Republic of China

Immediate Sale of Shares. Notwithstanding Section 3(a) of the Agreement, due to local regulatory requirements, upon the vesting of your Restricted Stock Units, any shares of Common Stock to be issued to you upon vesting and settlement of the Restricted Stock Units will be immediately sold. You agree that the Company is authorized to instruct its designated broker to assist with the mandatory sale of such shares (on your behalf pursuant to this authorization) and you expressly authorize the Company’s designated broker to complete the sale of such shares. You acknowledge that the Company’s designated broker is under no obligation to arrange for the sale of the shares at any particular price. Upon the sale of the shares, the Company agrees to pay you the cash proceeds from the sale, less any brokerage fees or commissions and subject to any obligation to satisfy Tax-Related Items.

Exchange Control Requirements. You understand and agree that, pursuant to local exchange control requirements, you will be required to repatriate the cash proceeds from the immediate sale of the shares issued upon the vesting of the Restricted Stock Units to the PRC if you are a PRC national or are otherwise determined to be subject to the requirements imposed by the State Administration of Foreign Exchange as determined by the Company. You further understand that, under local law, the sale proceeds will need to be repatriated through a special exchange control account established by an Affiliate in the PRC and you hereby consent and agree that any proceeds from the sale of any Restricted Stock Units you acquire may be transferred to such special account prior to being delivered to you. You further agree to comply with any other requirements that may

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be imposed by the Company in the future in order to facilitate compliance with exchange control requirements in the PRC.

You further understand and agree that the Company may distribute the proceeds of the sale of shares either in U.S. dollars or in local currency. If the proceeds are distributed in local currency, the Company is under no obligation to secure any particular exchange conversion rate and there will be delays in converting the cash proceeds to local currency due to exchange control restrictions. You agree to bear any currency fluctuation risk between the time the shares are sold and the time the cash proceeds are distributed to you through the special account described above.

Singapore

There are no country-specific terms or conditions.

Sweden

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

A number of shares of Common Stock sufficient to cover any Tax-Related Items that the Company or the Employer is required to withhold will automatically be sold (on your behalf pursuant to this authorization) when your Award vests. You will receive the net shares remaining after such withholding obligations and any broker fees and commissions have been satisfied.

Switzerland

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

For all Permit B holders and any cross border employees subject to withholding at source, a number of shares of Common Stock sufficient to cover any Tax-Related Items that the Company or the Employer is required to withhold will automatically be sold (on your behalf pursuant to this authorization) when your Award vests. You will receive the net shares remaining after such withholding obligations and any broker fees and commissions have been satisfied.

Taiwan

There are no country-specific terms or conditions.

United Kingdom

Settlement in Shares. The following provision supplements Section 1 of the Agreement:

Notwithstanding any discretion contained in the Plan to settle the Award in cash, Restricted Stock Units will be settled in shares of Common Stock only and do not provide any right for you to receive a cash payment.

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Withholding Obligations. The following provision supplements Section 10 of the Agreement:

If you do not pay, or the Company or the Employer does not withhold from you, the full amount of income tax that you owe within ninety (90) days of the end of the U.K. tax year in which the event giving rise to the Tax-Related Items occurs (the “Due Date”) or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003, the amount of any uncollected Tax-Related Items will constitute a loan owed by you to the Employer, effective on the Due Date. You agree that the loan will bear interest at the then-current official rate of Her Majesty’s Revenue and Customs (“HMRC”), it will be immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 10 of the Agreement. Notwithstanding the foregoing, if you are a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act), you will not be eligible for such a loan to cover the Tax-Related Items. In the event that you are a director or executive officer and the Tax-Related Items are not collected from or paid by you by the Due Date, the amount of any uncollected Tax-Related Items may constitute a benefit to you on which additional income tax and National Insurance contributions may be payable. You will be responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for reimbursing the Company or the Employer, as applicable, for the value of any employee National Insurance contributions due on this additional benefit, which the Company or the Employer may recover at any time thereafter by any of the means in Section 10 of the Agreement.

Joint Election. As a condition of your participation in the Plan, you agree to accept any liability for secondary Class 1 National Insurance contributions (the “Employer’s Liability”) which may be payable by the Company and/or the Employer in connection with the Restricted Stock Units and any event giving rise to Tax-Related Items. Without prejudice to the foregoing, you agree to execute a joint election with the Company (the “Joint Election”) prior to vesting of the Restricted Stock Units, the form of such Joint Election being formally approved by HMRC and attached hereto as Exhibit A, and any other consent or elections required to accomplish the transfer of the Employer’s Liability to you. You further agree to execute such other joint elections as may be required between you and any successor to the Company and/or the Employer. You further agree that the Company and/or the Employer may collect the Employer’s Liability by any of the means set forth in Section 10 of the Agreement.

If you do not enter into a Joint Election prior to vesting of the Restricted Stock Units, if approval of the Joint Election has been withdrawn by HMRC or if such Joint Election is jointly revoked by you and the Company or the Employer, as applicable, the Company, in its sole discretion and without any liability to the Company or the Employer, may choose not to issue or deliver any shares to you upon vesting of the Restricted Stock Units.

United States

Withholding Obligations. The following provision supplements Section 10 of the Agreement:

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Upon vesting of Restricted Stock Units, the Company will issue to you the number of shares covered by the vested Restricted Stock Units, less the number of shares sufficient to cover any Tax-Related Items that the Company is required to withhold.

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Exhibit A

(UK Participants)

PLEASE READ THE FOLLOWING IN ITS ENTIRETY
BEFORE ACCEPTING YOUR AWARD

SYNOPSYS, INC.
2006 EMPLOYEE EQUITY INCENTIVE PLAN

Important Note on the Joint Election to Transfer

Employer National Insurance Contributions

As a condition of your participation in the 2006 Employee Equity Incentive Plan, you are required to enter into a joint election to transfer to you any liability for employer’s national insurance contributions (the “Employer’s Liability”) that may arise in connection with your award of stock options and/or restricted stock units (together, the “Awards”), or in connection with future Awards that may be granted to you by Synopsys, Inc. (the “Company”) under its 2006 Employee Equity Incentive Plan (the “Joint Election”).

If you do not agree to enter into the Joint Election, the Awards will be worthless, you will not be able to exercise the options or vest in the restricted stock units, or receive any benefit in connection with the Awards, as set forth in your Award Agreement.

By entering into the Joint Election:

I. you agree that any Employer’s Liability that may arise in connection with or pursuant to the exercise or vesting of the Award, as applicable (and the acquisition of shares of the Company’s common stock) or other taxable events in connection with the Award will be transferred to you; and

II. you authorise the Company and/or your employer to recover an amount sufficient to cover this liability by any method set forth in the relevant Award Agreement and/or the Joint Election.

Indicating your acceptance of the Option Agreement and/or Restricted Stock UnitAward Agreement, as applicable, indicates your agreement to be bound by the terms of the Joint Election.

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Please read the terms of the Joint Election carefully before accepting the Option Agreement and/or the Restricted Stock Unit Award Agreement and the Joint Election.

PLEASE PRINT AND KEEP A COPY OF THIS ELECTION FOR YOUR RECORDS

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SYNOPSYS , INC.
2006 EMPLOYEE EQUITY INCENTIVE PLAN

(UK Participants)

FORM OF ELECTION TO TRANSFER THE EMPLOYER'S SECONDARYCLASS 1 NATIONAL INSURANCE LIABILITY TO THE EMPLOYEE

1. Parties

This Election is between:

(A) You, the individual who has obtained access to this Election (the “Participant”), who is employed by one of the employing companies listed in the attached schedule (the “Employer”) and who is eligible to receive stock options (“Options”) and/or restricted stock units (“RSUs”) (each an “Award” and together, the “Awards”) pursuant to the terms and conditions of the Synopsys, Inc. 2006 Employee Equity Incentive Plan (the “Plan”), and

(B) Synopsys, Inc. of 690 East Middlefield Road, Mountain View, California 94043, United States (the “Company”), which may grant Awards under the Plan and is entering this Election on behalf of the Employer.

2. Purpose of Election

2.1 This Election relates to the Employer's secondary Class 1 National Insurance Contributions (the “Employer's Liability”) which may arise on the occurrence of a “Taxable Event” which gives rise to relevant employment income within section 4(4)(a) and/or paragraph 3B(1A) of Schedule 1 of the Social Security Contributions and Benefits Act 1992 (“SSCBA”), including but not limited to:

(i) the acquisition of securities pursuant to the Awards (pursuant to section 477(3)(a) ITEPA); and/or

(ii) the assignment or release of the Awards in return for consideration (pursuant to section 477(3)(b) ITEPA); and/or

(iii) the receipt of any other benefit in connection with the Awards other than a benefit within (i) or (ii) above (pursuant to section 477(3)(c) ITEPA); and/or

(iv) post-acquisition events relating to the Awards or the securities acquired pursuant to the Awards (within section 426 ITEPA); and/or

(v) post-acquisition events relating to the Awards or the securities acquired pursuant to the Awards (within section 438 ITEPA).

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In this Election, ITEPA means the Income Tax (Earnings and Pensions) Act 2003.

2.2 This Election is made in accordance with paragraph 3B(1) of Schedule 1 to SSCBA.

2.3 This Election applies to all Awards granted to the Participant under the Plan on or after May 22, 2009 up to the termination date of the Plan.

2.4 This Election does not apply in relation to any liability, or any part of any liability, arising as a result of regulations being given retrospective effect by virtue of section 4B(2) of either the SSCBA, or the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

2.5 This Election will not apply to the extent that it relates to relevant employment income which is employment income of the earner by virtue of Chapter 3A of Part 7 of ITEPA (employment income: securities with artificially depressed market value).

3 The Election

The Participant and the Company jointly elect that the entire liability of the Employer to pay the Employer's Liability on the Taxable Event is hereby transferred to the Participant. The Participant understands that by electronically accepting this Election, he or she will become personally liable for the Employer’s Liability covered by this Election.

4 Payment of the Employer's Liability

4.1 The Participant and the Company acknowledge that the Employer is under a duty to remit the Employer's Liability to HM Revenue and Customs on behalf of the Participant within 14 days after the end of the UK tax month during which the Taxable Event occurs, or such other period of time, as prescribed. The Participant agrees to pay to the Company and/or the Employer the Employer’s Liability on demand, at any time on or after the Taxable Event and hereby authorises the Company and/or the Employer to account for the Employer’s Liability to HM Revenue and Customs.

4.2 Without limitation to Clause 4.1 above, the Participant hereby authorises the Company and/or the Employer to collect the Employer's Liability from the Participant at any time after the Taxable Event:

(i) by deduction from salary or any other payment payable to the Participant at any time on or after the date of the Taxable Event; and/or

(ii) directly from the Participant by payment in cash or cleared funds; and/or

(iii) by arranging, on behalf of the Participant, for the sale of some of the securities which the Participant is entitled to receive in respect of the Awards; and/or

(iv) through any other method as set forth in the relevant Award agreement entered into between the Participant and the Company.

4.3 The Company hereby reserves for itself and the Employer the right to withhold the transfer of any securities to the Participant until full payment of the Employer's Liability is collected from the Participant.

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5 Duration of Election

5.1 The Participant and the Company agree to be bound by the terms of this Election regardless of whether the Participant is transferred abroad or is not employed by the Employer on the date on which the Employer's Liability becomes due. Any reference to the Company, the Employer and/or the Participant shall include that entity's successors in title and assigns as permitted in accordance with the terms of the Plan and Award agreement.

5.2 This Election will continue in effect until the earliest of the following:

a. such time as both the Participant and the Company agree in writing that it should cease to have effect;

b. on the date the Company serves written notice on the Participant terminating its effect;

c. on the date HM Revenue and Customs withdraws approval of this Election; or

d. on the date the Election ceases to have effect in accordance with its terms in respect of any outstanding Awards granted under the Plan.

Acceptance by THE PARTICIPANT

The Participant acknowledges that by clicking on the “I accept” button where indicated and from that date, the Participant agrees to be bound by the terms of this Election as stated above.

Acceptance by THE COMPANY

The Company acknowledges that by arranging for the scanned signature of an authorised representative to appear on this Election, the Company agrees to be bound by the terms of this Election as stated above.

SYNOPSYS, INC.

By:
	Title:

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SCHEDULE TO FORM OF ELECTION – EMPLOYING COMPANIES

The employing companies to which this Election relates are:

(1)    Synopsys (Northern Europe) Limited

Registered Office:	100 Brook Drive Green Park, Reading RG2 6UJ United Kingdom
Company Registration Number:	2642054
Corporation Tax District:	Oxon and Bucks Area
Corporation Tax Reference:	402 56090 10710
PAYE District:	East Hampshire and Wight Area
PAYE Reference:	581/S3033

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EX-10.6

EXHIBIT 10.6

2006 Employee Equity Incentive Plan Notice of Grant of Stock Options and Option Agreement	Synopsys, Inc.ID: 56-1546236690 East Middlefield Road Mountain View, CA 94043
%%FIRST_NAME%-% %%LAST_NAME%-%%%ADDRESS_LINE_1%-% %%ADDRESS_LINE_2%-% %%CITY%-%, %%STATE%-% %%ZIPCODE%-% %%COUNTRY%-%	Option Number: %%OPTION_NUMBER%-% ID: %%EMPLOYEE_IDENTIFIER%-%

Effective %%OPTION_DATE%-%, Synopsys, Inc. (the “Company”) has granted you a Nonstatutory Stock Option (the “Option”) under the 2006 Employee Equity Incentive Plan (the “Plan”) to buy %%TOTAL_SHARES_GRANTED%-% shares of the common stock of the Company (the “Common Stock”) at an exercise price of %%OPTION_PRICE%-% per share. This Option is subject to all of the terms and conditions set forth in this Notice of Grant of Stock Options and Option Agreement (including any special terms and conditions for your country in the Appendix hereto, the “Agreement”) and the Plan, which is incorporated by reference herein in its entirety. This Option is also subject to the Compensation Recovery Policy applicable to corporate staff, adopted by the Company in December 2008, as amended from time to time (the “Compensation Recovery Policy”) and any required compensation recovery provisions under applicable laws or regulations. Capitalized terms not explicitly defined in this Agreement but defined in the Plan shall have the same definitions as in the Plan.

This Option will vest, and may be exercised, in whole or in part, in accordance with the following vesting schedule, subject to your Continuous Service with the Company or any Affiliate.

Shares	Vest Type	Full Vest	Expiration
%%SHARES_PERIOD1%-%	On Vest Date	%%VEST_DATE_PERIOD1%-%	%%EXPIRE_DATE_PERIOD1%-%
%%SHARES_PERIOD2%-%	Quarterly	%%VEST_DATE_PERIOD2%-%	%%EXPIRE_DATE_PERIOD2%-%

1.Exercise.

(a)Right to Exercise. This Option is exercisable during its term in accordance with the vesting schedule set forth above and the applicable provisions of the Plan and this Agreement. In the event of your death, disability, or other cessation of Continuous Service, the exercisability of the Option is governed by the applicable provisions of the Plan and this Agreement. This Option may not be exercised for a fraction of a Share.

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(b)Method of Exercise. You must exercise the Option through your account with the Company’s designated broker, which as of the date hereof is E*Trade Securities LLC, unless you are an officer subject to the reporting requirements of Section 16(a) of the Exchange Act (a “Section 16 Officer”). Using your account, you may select the grant to exercise, the number of shares to exercise, the type of exercise (subject to applicable provisions in the Appendix), and, if applicable based on the type of exercise, the sales order for the shares issuable upon exercise. You may sell the Common Stock underlying the Option through your account or you may transfer the shares of Common Stock to your stockbroker (except as provided in the Appendix). If you are a Section 16 Officer, you must exercise your Option in accordance with the Company’s Section 16 Officer and Director Trading Procedures. All Option exercises must be made in accordance with the Company’s Insider Trading Policy.

(c)Exercise by Another. If another person wants to exercise this Option after it has been transferred to him or her in accordance with the transferability restrictions provided in the Plan, that person must prove to the Company’s satisfaction that he or she is entitled to exercise this Option. That person must also pay the exercise price (as described below) and any applicable tax withholding due upon exercise of the Option (as described in Section 2 below).

(d)Method of Payment. Payment of the exercise price is due in full upon exercise of all or any part of the Option. Payment of the exercise price may be made in cash or by check or in any other manner permitted in the Plan (except as provided in the Appendix).

(e)Termination. In the event of termination of your Continuous Service for any reason other than Cause, you will be permitted to exercise the Option to the extent vested at the time of termination for ninety (90) days following your date of termination (except as provided in the Appendix); provided, however, that if your termination is due to death or disability, or if you die within ninety (90) days following your termination without “Cause”, the post-termination exercise period is twelve (12) months (except as provided in the Appendix); provided further that if your termination is for “Cause” as defined in the Plan, you shall not be permitted to exercise the Option in any respect. In each case, the date of the termination of your Continuous Service shall be determined in accordance with Section 3(i) below. In addition, if the Option is not exercisable during the applicable post-termination exercise period solely because the shares of Common Stock issuable upon such exercise are not then registered under the Securities Act and are not otherwise issuable under an exemption from the registration requirements of the Securities Act, this Option shall not expire until the earlier of the expiration date set forth above or until it shall have been exercisable for an aggregate period of at least ninety (90) days after the termination of your Continuous Service. You are responsible for keeping track of these exercise periods following your termination of Continuous Service for any reason. The Company will not provide further notice of such periods.

2.Responsibility for Taxes. Except as otherwise provided in the Appendix, the provisions of this Section 2 shall apply. You acknowledge that, regardless of any action the Company or your employer if different from the Company, whether current or former (the “Employer”) takes with respect to any or all income tax, social insurance contributions, payroll tax, fringe benefits tax, payment on account or other tax-related withholding related to your participation in the Plan and

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legally applicable to you (“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the amount actually withheld by the Employer. You further acknowledge that the Employer (1) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option, including the grant, vesting or exercise of the Option, the subsequent sale of shares acquired pursuant to such exercise and the receipt of any dividends; and (2) does not commit to structure the terms of the grant or any aspect of the Option to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. In particular, you acknowledge that this Option is exempt from Section 409A of the Code only if the exercise price per share is at least equal to the “fair market value” per share of the Common Stock on the grant date and there is no other impermissible deferral of compensation associated with the Option. Further, if you have become subject to tax in more than one jurisdiction, you acknowledge that the Employer may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

Prior to exercise of the Option, you shall pay or make adequate arrangements satisfactory to the Employer to satisfy all Tax-Related Items. In this regard, you authorize the Employer or its respective agents, at their discretion, to withhold all applicable Tax-Related Items from your wages or other cash compensation paid to you by the Employer and/or from proceeds of the sale of the shares. Alternatively, or in addition, if permissible under local law, the Employer may, without your further consent, (1) sell or arrange for the sale of shares that you acquire, to meet the withholding obligation for Tax-Related Items, either through a mandatory sale arranged by the Company (on your behalf pursuant to this authorization) or a voluntary sale (including permitting you to enter into a “same day sale” commitment with a broker-dealer that is a member of the Financial Industry Regulatory Authority), and/or (2) withhold in shares of Common Stock issuable at exercise of the Option. Depending on the withholding method, the Employer may withhold or account for Tax-Related Items by considering applicable minimum withholding rates or other applicable withholding rates, including maximum applicable rates, in which case you will receive a refund of any over-withheld amount in cash and will have no entitlement to the share equivalent. If the obligation for the Tax-Related Items is satisfied by withholding in shares of Common Stock, then you will have no further rights, title or interests in or to the number of shares of Common Stock that are held back solely for the purpose of paying the Tax-Related Items, and you are deemed to have been issued the full number of shares of Common Stock subject to the exercised portion of the Option.

Finally, you shall pay to the Employer any amount of Tax-Related Items that the Employer may be required to withhold as a result of your receipt or exercise of the Option and your sale of the shares obtained pursuant to any exercise of the Option that cannot be satisfied by the means previously described. The Employer may refuse to honor the exercise and refuse to deliver the shares if you fail to comply with your obligations in connection with the Tax-Related Items as described in this section.

3.Nature of Grant. In accepting the grant of the Option, you acknowledge, understand and agree that:

(a)the Plan is established voluntarily by the Company, is discretionary in nature, and may be modified, amended, suspended or terminated by the Company as provided in the Plan;

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(b)the grant of the Option and any other options or Awards under the Plan is voluntary and occasional and does not create any contractual or other right to receive future grants of options, shares, Awards or any other benefit or compensation in lieu of future options, even if options have been granted in the past;

(c)all decisions with respect to future options or Awards, if any, will be at the sole discretion of the Company;

(d)your participation in the Plan shall not create a right to employment or service or be interpreted as forming an employment or service contract with the Company, your employer (if different than the Company) or any Affiliate and shall not interfere with the ability of the Company, the employer or any Affiliate to terminate your employment or service relationship at any time with or without cause;

(e)you are voluntarily participating in the Plan;

(f)unless otherwise agreed with the Company, the Option and the shares of Common Stock subject to the Option, and the income and value of same, are not granted as consideration for, or in connection with, the service you may provide as a director of an Affiliate;

(g)the Option and the shares of Common Stock subject to the Option, and the income and value of same, are not intended to replace any pension rights or compensation;

(h)the Option and the shares of Common Stock subject to the Option, and the income and value of same, are not part of normal or expected compensation or salary for purposes of calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, life or accident insurance benefits, pension or retirement benefits or similar payments;

(i)for purposes of the Option, your Continuous Service will be considered terminated as of the date determined by the Company in its sole discretion;

(j)the future value of the shares underlying the Option is unknown and cannot be predicted with certainty;

(k)if the value of the underlying shares does not exceed the exercise price upon exercise, the Option will have no value and if you exercise the Option, the value of the shares acquired upon exercise may increase or decrease in value, even below the exercise price;

(l)should you die owning shares of Common Stock or the Option, such shares or the Option may subject your estate to United States federal estate taxes, and that you should seek your own tax advice regarding this potential tax;

(m)you disclaim any entitlement to compensation or damages arising from the termination of the Option, including as the result of termination of your employment or other service relationship with the Employer (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or providing services

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or the terms of any employment or service agreement), or diminution in value of the shares of Common Stock, and in consideration of the grant of the Option to which you are not otherwise entitled, you hereby agree not to bring any claim against the Company, the Employer and any Affiliate, irrevocably waive your ability, if any, to bring such claim, and release the Company, the Employer and any Affiliate from any such claim that may arise;

(n)the Plan and the Agreement set forth the entire understanding between you, the Company, the Employer, and any Affiliate regarding the acquisition of the shares of Common Stock and supersedes all prior oral and written agreements pertaining to the Option; and

(o)the following provisions apply only if you are providing services outside the United States:

(i)    the Option and the shares of Common Stock subject to the Option, and the value and income of same, are not part of normal or expected compensation or salary for any purpose; and

(ii)    neither the Company, the Employer nor any Affiliate shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Option or of any amounts due to you pursuant to the exercise of the Option or the subsequent sale of any shares of Common Stock acquired upon exercise.

4.Data Privacy. You hereby explicitly, voluntarily and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Agreement by and among, as applicable, the Company, the Employer and any Affiliate for the exclusive purpose of implementing, administering and managing your participation in the Plan.

You understand that the Company and the Employer may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all options or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor (the “Personal Data”), for the purpose of implementing, administering and managing the Plan. You understand that the Personal Data may be transferred to E*Trade Securities LLC or any other third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the United States or elsewhere, and that the recipient’s country may have different data privacy laws and protections than your country. You understand that, if you reside outside the United States, you may request a list with the names and addresses of any potential recipients of the Personal Data by contacting your local human resources representative. You authorize the recipients to receive, possess, use, retain and transfer the Personal Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such the Personal Data as may be required to a broker or other third party with whom you may elect to deposit any shares of Common Stock acquired upon exercise of the Option. You understand that the Personal Data will be held only as long as is necessary to implement,

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administer and manage your participation in the Plan. You understand that, if you reside outside the United States, you may, at any time, view the Personal Data, request additional information about the storage and processing of the Personal Data, require any necessary amendments to the Personal Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent or later seek to revoke your consent, your employment status or service or career with the Employer will not be affected; the only consequence of refusing or withdrawing your consent is that the Company would not be able to grant you options or other Awards or administer or maintain such Awards. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.

5.Governing Law and Venue. The Option is governed by, and subject to, the laws of the State of Delaware without resort to that State’s conflict of laws rules. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this grant or the Agreement, the parties hereby submit to and consent to the sole and exclusive jurisdiction of the courts of the State of California and agree that such litigation shall be conducted only in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California.

6.Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to the Option granted hereunder or to participation in the Plan (or future options or other equity awards that may be granted under the Plan) by electronic means (including by filing documents publicly at www.sec.gov or any successor website thereto) or to request your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and, if requested, agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company. Electronic delivery may include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Company’s discretion. You acknowledge that you may receive from the Company a paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, through a postal service or electronic mail. You further acknowledge that you will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, you understand that you must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also, you understand that your consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if you have provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail.

7.Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

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8.Restrictive Legends. The Common Stock issued under this Option shall be endorsed with appropriate legends, if any, determined by the Company.

9.Unsecured Obligation. The Option is unfunded, and even as to any vested portion, you shall be considered an unsecured creditor of the Company with respect to the Company’s obligation, if any, to issue Common Stock pursuant to this Agreement. You shall not have voting or any other rights as a stockholder of the Company with respect to the Common Stock acquired pursuant to this Agreement until such Common Stock is issued. Upon such issuance, you will obtain full voting and other rights as a stockholder of the Company with respect to the Common Stock so issued and held by you. Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person.

10.Notices. Any notices provided for herein or in the Plan shall be given in writing to each of the other parties hereto and shall be deemed effectively given on the earlier of (i) the date of personal delivery, including delivery by express courier, (ii) the date that electronic notice is sent by you or Shareholder Services (as applicable), in the case of notices provided by electronic means, or (iii) the date that is five (5) days after deposit in the United States Post Office (whether or not actually received by the addressee), by registered or certified mail with postage and fees prepaid, addressed at the following addresses, or at such other address(es) as a party may designate by ten (10) days’ advance written notice to each of the other parties hereto:

COMPANY:    Synopsys, Inc.

Shareholder Services

690 East Middlefield Road

Mountain View, CA 94043

United States of America

PARTICIPANT: Your address as on file with the Company at the time notice is given

11.Amendment. This Agreement may be amended solely by the Company by a writing (including in electronic form) which specifically states that it is amending this Agreement, so long as a copy of such amendment is delivered to you, and provided that no such amendment impairing your rights hereunder may be made without your written consent. Without limiting the foregoing, the Company reserves the right to change, by written notice (including in electronic form), the provisions of this Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant as a result of any change in applicable laws or regulations or any future law, regulation, ruling, or judicial decision, provided that any such change shall be applicable only to rights relating to that portion of the Award which is then subject to restrictions as provided herein.

12.Governing Plan Document. This Option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of this Agreement, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of this Agreement and those of the Plan, the provisions of the Plan shall control. The Company shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration,

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interpretation, and application of the Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and all interpretations and determinations made by the Board shall be final and binding upon you, the Company, and all other interested persons. No member of the Board shall be personally liable for any action, determination, or interpretation made in good faith with respect to the Plan or this Agreement.

13.Miscellaneous.

(a)The rights and obligations of the Company under this Agreement shall be transferable by the Company to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Company’s successors and assigns.

(b)All obligations of the Company under the Plan and this Agreement shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

(c)You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of this Option.

(d)You acknowledge and agree that you have reviewed this Agreement in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting this Option and fully understand all provisions of this Option.

(e)This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

(f)The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying shares of Common Stock. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

(g)If you have received this or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

(h)Notwithstanding any provisions in this Agreement, the Option shall be subject to any special terms and conditions set forth in the Appendix to this Agreement for your country. Moreover, if you relocate to one of the countries included in the Appendix, the special terms and conditions for such country will apply to you, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. The Appendix constitutes part of this Agreement.

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(i)The Company reserves the right to impose other requirements on your participation in the Plan, on the Option and on any shares of Common Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

14.    Insider Trading Restrictions/Market Abuse Laws. You acknowledge that you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell the shares of Common Stock or rights to shares under the Plan during such times as you are considered to have “inside information” regarding the Company (as defined by the laws in your country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under the Company's Insider Trading Policy. You acknowledge that it is your responsibility to comply with any applicable restrictions, and you are advised to speak to your personal advisor on this matter.

15.    Foreign Asset/Account Reporting Requirements. You acknowledge that there may be certain foreign asset and/or account reporting requirements which may affect your ability to acquire or hold shares of Common Stock acquired under the Plan or cash received from participating in the Plan (including from any dividends paid on shares of Common Stock acquired under the Plan) in a brokerage or bank account outside your country. You may be required to report such accounts, assets or transactions to the tax or other authorities in your country. You also may be required to repatriate sale proceeds or other funds received as a result of your participation in the Plan to your country through a designated bank or broker within a certain time after receipt. You acknowledge that it is your responsibility to be compliant with such regulations, and you are advised to consult your personal legal advisor for any details.

* * * * * * * * * * * * * * *

Your signature below (or online acceptance, if applicable) indicates that you have read this Agreement and agree to be bound by the terms and conditions of the Plan and this Agreement. You acknowledge receipt of, and understand and agree to, this Agreement, the Plan, the related Plan prospectus, the Compensation Recovery Policy (if applicable to you), the Company’s Section 16 Officer and Director Trading Procedures (if applicable to you) and the Company’s Insider Trading Policy. You further acknowledge that as of the grant date, the Agreement and the Plan set forth the entire understanding between the Company and you regarding the award of the Option and the underlying Common Stock and supersede all prior oral and written agreements on that subject with the exception of (i) Awards previously granted and delivered to you under the Plan, and (ii) if applicable to you (A) the terms of any applicable Company change of control severance plan or provisions and (B) the Compensation Recovery Policy.

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* * * * *

Your signature below or online acceptance (where permitted) indicates that you have read this Agreement (including any appendices hereto) and agree to be bound by the terms and conditions of the Plan and this Agreement.

	Synopsys, Inc.	Participant
By:
	Title: Date: %%OPTION_DATE%-%	%%FIRST_NAME%-% %%LAST_NAME%-% Date:

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Appendix to

Synopsys, Inc.

Notice of Grant of Stock Options and Option Agreement

This Appendix, which is part of the Notice of Stock Options and Option Agreement, contains the additional terms and conditions of the Option that will apply to Participants in the countries listed below. If you are a citizen or resident of a country other than the one in which the you are currently residing and/or working, you transfer employment and/or residency to another country after the Option is granted or you are considered a resident of another country for local law purposes, the Company shall, in its sole discretion, determine to what extent the terms and conditions included herein will apply under these circumstances. Capitalized terms used but not defined herein shall have the same meanings assigned to them in the Plan and/or the Agreement.

All Non-US Jurisdictions

Exercise, Including Upon Termination of Employment. The following provision supplements Section 1 of the Agreement:

Paying the exercise price by means of the surrender of other shares of Common Stock is prohibited and not an available method of exercise.

Canada

There are no country-specific terms or conditions.

Finland

There are no country-specific terms or conditions.

France

Consent to Receive Information in English.By accepting the Option, you confirm having read and understood the Plan and Agreement, including all terms and conditions included therein, which were provided in the English language. You accept the terms of those documents accordingly.

En acceptant cette Option, vous confirmez avoir lu et compris le Plan and le Contrat y relatifs, incluant leurs termes et conditions, qui ont été transmis en langue anglaise. Vous acceptez les dispositions de ces documents en connaissance de cause.

Germany

There are no country-specific terms or conditions.

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Hong Kong

Securities Warning. The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You should exercise caution in relation to the offer. The Option and any shares of Common Stock issued at exercise of the Option do not constitute a public offering of securities under Hong Kong law and are available only to employees and consultants of the Company and its Affiliates. The Agreement, including this Appendix, the Plan and other incidental communication materials (i) have not been prepared in accordance with and are not intended to constitute a “prospectus” for a public offering of securities under the applicable securities legislation in Hong Kong, and (ii) are intended only for your personal use and may not be distributed to any other person. If you are in any doubt about any of the contents of the Agreement, including this Appendix, or the Plan, you should obtain independent professional advice.

Sale of Shares. In the event the Option vests within six months of the grant date, you agree that you will not sell any shares of Common Stock acquired upon exercise prior to the six-month anniversary of the grant date.

Hungary

There are no country-specific terms or conditions.

India

Exercise, Including Upon Termination of Employment. The following provision supplements Section 1 of the Agreement:

Upon the exercise of the Option, any shares to be issued to you will be immediately sold in a same-day sale transaction. In no case may you exercise and hold Common Stock following the exercise of the Option. You agree that the Company is authorized to instruct its designated broker to assist with the mandatory sale of such shares (on your behalf pursuant to this authorization) and you expressly authorize the Company’s designated broker to complete the sale of such shares. You acknowledge that the Company’s designated broker is under no obligation to arrange for the sale of the shares at any particular price. Upon the sale of the shares, the Company agrees to pay you the cash proceeds from the sale, less any brokerage fees or commissions and subject to any obligation to satisfy Tax-Related Items.

Ireland

There are no country-specific terms or conditions.

Israel

Trust Arrangement. You understand and agree that the Option is granted subject to and in accordance with the Synopsys, Inc. 2006 Employee Equity Incentive Plan Israeli Subplan (the “Subplan”), the trust deed between the Company and ESOP Management and Trust Services Ltd. or any successor trustee (the “Trustee”), the Confirmation Letter -- Trustee 102 Awards, the Agreement and the Plan. You further understand and agree that the Option and any shares of

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Common Stock issued upon exercise of the Option are intended to qualify for the favorable tax treatment available in Israel pursuant to the provisions of the 102 Capital Gains Track (as defined in the Subplan). The Company does not make any undertaking or representation to maintain the qualified status of the Option. In the event of any inconsistencies between the Subplan, the Agreement and/or the Plan, you agree that the Subplan will govern the Option granted to you in Israel.

If you have not already signed the Confirmation Letter -- Trustee 102 Awards provided by ESOP Management and Trust Services Ltd. or the Employer in connection with grants made under the Subplan, then you must print, sign and deliver the signed copy of the Confirmation Letter within 90 days to ESOP Management and Trustee Services Ltd. by email to esop-helpdesk@esop.co.il or by fax to 972-3-7602632. If you deliver your signed Confirmation Letter by fax, you should confirm receipt by contacting ESOP Management and Trust Services Ltd. by email at esop-helpdesk@esop.co.il or by phone at 1700-70-3767. If the Trustee does not receive the signed Confirmation Letter within 90 days, the Option may not qualify for the favorable tax treatment under Section 102.

Method of Exercise & Transfer Restrictions. This provision supplements Section 1(b) of the Agreement:

To receive the favorable tax treatment provided for in Section 102, the Option and the shares of Common Stock issued upon exercise of the Option will be held or controlled by the Trustee, pursuant to the terms of the trust deed, for your benefit, during the Required Holding Period (as defined in the Subplan), which, until further election by the Company, shall be twenty-four (24) months from the grant date, or any other period determined under the ITO (as defined in the Subplan) as now in effect or as hereafter amended or determined by the Israeli Income Tax Authority. You may still exercise the Option and sell shares of Common Stock through your account with the Company's designated broker, subject to the terms set forth in this Appendix. You hereby understand and agree you cannot require the designated broker or the Trustee to release or sell the shares of Common Stock during the Required Holding Period. After the Required Holding Period has expired, the shares of Common Stock issued at exercise of the Option will continue to be held or controlled by the Trustee until the earlier of (i) the receipt by the Trustee of an acknowledgment from the Israeli Income Tax Authority that you have paid all applicable taxes due pursuant to the ITO and Section 102, or (ii) the Trustee withholds any applicable tax due pursuant to the ITO and Section 102. Notwithstanding the above, if any release or sale of shares of Common Stock occurs during the Required Holding Period, the tax consequences under Section 102 shall apply to and shall be borne solely by you.

Securities Law Exemption. An exemption from the requirement to file a prospectus with respect to the Plan has been granted to the Company by the Israeli Securities Authority. Copies of the Plan and Form S-8 registration statement for the Plan file with the United States Securities and Exchange Commission are available free of charge upon request at your local HR department.

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Italy

Data Privacy. The following provision replaces Section 4 of the Agreement:

You hereby acknowledge that your personal data is collected, used, processed and transferred outside of the European Union, as described in this Agreement by and among, as applicable, the Employer, the Company and any Affiliate for the exclusive purpose of implementing, administering and managing your participation in the Plan. You understand that the Employer and/or the Company hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, national insurance number or other identification number, salary, nationality, job title, any shares of Common Stock or directorships held in the Company, details of all Options or other entitlement to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of implementing, administering and managing the Plan (“Data”).

You are aware that providing the Company with the Data is necessary for the performance of this Agreement and that your refusal to provide the Data would make it impossible for the Company to perform its contractual obligations and may impact your ability to exercise or realize benefits from the Option. Your Data shall be accessible within the Company's organization only by the persons specifically charged with Data-processing operations and by the persons that need to access the Data because of their duties and position in relation to the performance of the contract. The Controller of personal data-processing is the Company, with registered offices at 690 East Middlefield Road, Mountain View, CA 94043, U.S.A., and, pursuant to Legislative Decree no. 196/2003, its representative in Italy is Synopsys Italia S.r.l. with registered offices at Centro Direzionale Colleoni, Viale Colleoni 11 - Palazzo Sirio 3, 20041 Agrate Brianza (MI), Italy.

You understand that Data will be transferred to E*Trade Securities LLC and/or to such other stock plan service provider as may be selected by the Company, which are assisting the Company with the implementation, administration and management of the Plan and that Data may be transferred to certain other third parties assisting in the implementation, administration and management of the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom you may elect to deposit any shares of Common Stock acquired upon exercise of the Option. You understand that these recipients, which may receive, possess, use, retain and transfer such Data for the above-mentioned purposes, may be located in the United States, or elsewhere, including outside of the European Economic Area, and that the recipient’s country may have different data privacy laws and protections than your country. The processing activity, including transfer of Data abroad, including outside of the European Economic Area, as herein specified and pursuant to applicable laws and regulations, does not require your consent thereto as the processing is necessary to performance of contractual obligations related to the implementation, administration and management of the Plan.

You understand that Data-processing relating to the purposes above specified shall take place under automated or non-automated conditions, anonymously when possible, that comply with the purposes for which Data is collected and with confidentiality and security provisions as set forth by applicable laws and regulations, with specific reference to Legislative Decree no.

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196/2003. You understand that Data will be held only as long as is required by the law or is necessary to implement, administer and manage your participation in the Plan. You understand that, pursuant to Article 7 of Legislative Decree No. 196/2003, you have the right, without limitation, to access, delete, update, request the rectification of your Data and cease, for legitimate reasons, the Data-processing. Furthermore, you are aware that the Data will not be used for direct marketing purposes. In addition, the Data provided can be reviewed and questions or complaints can be addressed by contacting your local HR representative.

Plan Document Acknowledgment. By accepting the Option, you acknowledge that you have received a copy of the Plan and the Agreement and have reviewed the Plan and the Agreement, including this Appendix, in their entirety and fully accept all provisions thereof. You further acknowledge that you have read and specifically and expressly approve the following provisions of the Agreement: Section 1: Exercise; Section 2: Responsibility for Taxes; Section 3: Nature of Grant; Section 5: Governing Law and Venue; Section 13: Miscellaneous; and the Data Privacy section included in this Appendix.

Japan

There are no country-specific terms or conditions.

Korea

There are no country-specific terms or conditions.

Netherlands

There are no country-specific terms or conditions.

People’s Republic of China

Exercise, Including Upon Termination of Employment. The following provision supplements Section 1 of the Agreement:

Notwithstanding the specified twelve (12) month period for exercising the Option following death or disability, in no event may the Option be exercised more than six (6) months following termination of your Continuous Service.

Due to local requirements, upon the exercise of the Option, any shares to be issued to you will be immediately sold in a same-day sale transaction. In no case may you exercise and hold Common Stock following the exercise of the Option. You agree that the Company is authorized to instruct its designated broker to assist with the mandatory sale of such shares (on your behalf pursuant to this authorization) and you expressly authorize the Company’s designated broker to complete the sale of such shares. You acknowledge that the Company’s designated broker is under no obligation to arrange for the sale of the shares at any particular price. Upon the sale of the shares, the Company agrees to pay you the cash proceeds from the sale, less any brokerage fees or commissions and subject to any obligation to satisfy Tax-Related Items.

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In addition, you understand and agree that, pursuant to local exchange control requirements, you will be required to repatriate the cash proceeds from the immediate sale of the shares issued upon the exercise of the Option to the PRC if you are a PRC national or are otherwise determined to be subject to the requirements imposed by the State Administration of Foreign Exchange as determined by the Company. You further understand that, under local law, the sale proceeds will need to be repatriated through a special exchange control account established by an Affiliate in the PRC and you hereby consent and agree that any proceeds from the sale may be transferred to such special account prior to being delivered to you. You further agree to comply with any other requirements that may be imposed by the Company in the future in order to facilitate compliance with exchange control requirements in the PRC.

You further understand and agree that the Company may distribute the proceeds of the sale of shares either in U.S. dollars or in local currency. If the proceeds are distributed in local currency, the Company is under no obligation to secure any particular exchange conversion rate and there will be delays in converting the cash proceeds to local currency due to exchange control restrictions. You agree to bear any currency fluctuation risk between the time the shares are sold and the time the cash proceeds are distributed to you through the special account described above.

Singapore

There are no country-specific terms or conditions.

Sweden

There are no country-specific terms or conditions.

Switzerland

There are no country-specific terms or conditions.

Taiwan

There are no country-specific terms or conditions.

United Kingdom

Responsibility for Taxes. The following provision supplements Section 2 of the Agreement:

If you do not pay, or the Company or the Employer does not withhold from you, the full amount of any income tax that you owe within ninety (90) days of the end of the U.K. tax year in which the event giving rise to the Tax-Related Items occurs (the “Due Date”) or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003, the amount of any uncollected income tax will constitute a loan owed by you to the Employer, effective on the Due Date. You agree that the loan will bear interest at the then-current official rate of Her Majesty’s Revenue and Customs (“HMRC”), it will be immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 2 of the Agreement. Notwithstanding the foregoing, if you are a director or executive officer of the

6

Company (within the meaning of Section 13(k) of the Exchange Act), you will not be eligible for such a loan to cover the income tax. In the event that you are a director or executive officer and the income tax is not collected from or paid by you by the Due Date, the amount of any uncollected income tax may constitute a benefit to you on which additional income tax and National Insurance contributions (including the Employer’s Liability, as defined below) may be payable. You will be responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for reimbursing the Company or the Employer, as applicable, for the value of any employee National Insurance contributions due on this additional benefit, which the Company and/or the Employer may recover at any time thereafter by any of the means in Section 2 of the Agreement.

As a condition of participation in the Plan, you agree to accept any liability for secondary Class 1 National Insurance contributions (the “Employer’s Liability”) which may be payable by the Employer in connection with the Option and any event giving rise to Tax-Related Items. Without prejudice to the foregoing, you agree to execute a joint election with the Company (the “Joint Election”) prior to exercising the Option, the form of such Joint Election being formally approved by HMRC and attached hereto as Exhibit A, and any other consent or elections required to accomplish the transfer of the Employer’s Liability to you. You further agree to execute such other joint elections as may be required between you and any successor to the Company and/or the Employer. You further agree that the Company and/or the Employer may collect the Employer’s Liability by any of the means set forth in Section 2 of the Agreement.

If you do not enter into a Joint Election prior to exercising the Option, if approval of the Joint Election has been withdrawn by HMRC or if such Joint Election is jointly revoked by you and the Company or the Employer, as applicable, this Option shall, at the discretion of the Company, without any liability to the Company or the Employer, not be exercisable and/or the Company may choose not to issue or deliver any shares upon exercise of the Option.

7

Exhibit A

(UK Participants)

PLEASE READ THE FOLLOWING IN ITS ENTIRETY
BEFORE ACCEPTING YOUR AWARD

SYNOPSYS, INC.
2006 EMPLOYEE EQUITY INCENTIVE PLAN

Important Note on the Joint Election to Transfer

Employer National Insurance Contributions

As a condition of your participation in the 2006 Employee Equity Incentive Plan, you are required to enter into a joint election to transfer to you any liability for employer’s national insurance contributions (the “Employer’s Liability”) that may arise in connection with your award of stock options and/or restricted stock units (together, the “Awards”), or in connection with future Awards that may be granted to you by Synopsys, Inc. (the “Company”) under its 2006 Employee Equity Incentive Plan (the “Joint Election”).

If you do not agree to enter into the Joint Election, the Awards will be worthless, you will not be able to exercise the options or vest in the restricted stock units, or receive any benefit in connection with the Awards, as set forth in your Award Agreement.

By entering into the Joint Election:

• you agree that any Employer’s Liability that may arise in connection with or pursuant to the exercise or vesting of the Award, as applicable (and the acquisition of shares of the Company’s common stock) or other taxable events in connection with the Award will be transferred to you; and

• you authorise the Company and/or your employer to recover an amount sufficient to cover this liability by any method set forth in the relevant Award Agreement and/or the Joint Election.

Indicating your acceptance of the Option Agreement and/or Restricted Stock Unit Award Agreement, as applicable, indicates your agreement to be bound by the terms of the Joint Election.

Please read the terms of the Joint Election carefully before accepting the Option Agreement and/or the Restricted Stock Unit Award Agreement and the Joint Election.

PLEASE PRINT AND KEEP A COPY OF THIS ELECTION FOR YOUR RECORDS

8

SYNOPSYS , INC.
2006 EMPLOYEE EQUITY INCENTIVE PLAN

(UK Participants)

FORM OF ELECTION TO TRANSFER THE EMPLOYER'S SECONDARY
CLASS 1 NATIONAL INSURANCE LIABILITY TO THE EMPLOYEE

1. Parties

This Election is between:

(A) You, the individual who has obtained access to this Election (the “Participant”), who is employed by one of the employing companies listed in the attached schedule (the “Employer”) and who is eligible to receive stock options (“Options”) and/or restricted stock units (“RSUs”) (each an “Award” and together, the “Awards”) pursuant to the terms and conditions of the Synopsys, Inc. 2006 Employee Equity Incentive Plan (the “Plan”), and

(B) Synopsys, Inc. of 690 East Middlefield Road, Mountain View, California 94043, United States (the “Company”), which may grant Awards under the Plan and is entering this Election on behalf of the Employer.

2. Purpose of Election

2.1. This Election relates to the Employer's secondary Class 1 National Insurance Contributions (the “Employer's Liability”) which may arise on the occurrence of a “Taxable Event” which gives rise to relevant employment income within section 4(4)(a) and/or paragraph 3B(1A) of Schedule 1 of the Social Security Contributions and Benefits Act 1992 (“SSCBA”), including but not limited to:

a. the acquisition of securities pursuant to the Awards (pursuant to section 477(3)(a) ITEPA); and/or

b. the assignment or release of the Awards in return for consideration (pursuant to section 477(3)(b) ITEPA); and/or

c. the receipt of any other benefit in connection with the Awards other than a benefit within (i) or (ii) above (pursuant to section 477(3)(c) ITEPA); and/or

d. post-acquisition events relating to the Awards or the securities acquired pursuant to the Awards (within section 426 ITEPA); and/or

e. post-acquisition events relating to the Awards or the securities acquired pursuant to the Awards (within section 438 ITEPA).

9

In this Election, ITEPA means the Income Tax (Earnings and Pensions) Act 2003.

2.2. This Election is made in accordance with paragraph 3B(1) of Schedule 1 to SSCBA.

2.3. This Election applies to all Awards granted to the Participant under the Plan on or after May 22, 2009 up to the termination date of the Plan.

2.4. This Election does not apply in relation to any liability, or any part of any liability, arising as a result of regulations being given retrospective effect by virtue of section 4B(2) of either the SSCBA, or the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

2.5. This Election will not apply to the extent that it relates to relevant employment income which is employment income of the earner by virtue of Chapter 3A of Part 7 of ITEPA (employment income: securities with artificially depressed market value).

3. The Election

The Participant and the Company jointly elect that the entire liability of the Employer to pay the Employer's Liability on the Taxable Event is hereby transferred to the Participant. The Participant understands that by electronically accepting this Election, he or she will become personally liable for the Employer’s Liability covered by this Election.

4. Payment of the Employer's Liability

4.1. The Participant and the Company acknowledge that the Employer is under a duty to remit the Employer's Liability to HM Revenue and Customs on behalf of the Participant within 14 days after the end of the UK tax month during which the Taxable Event occurs, or such other period of time, as prescribed. The Participant agrees to pay to the Company and/or the Employer the Employer’s Liability on demand, at any time on or after the Taxable Event and hereby authorises the Company and/or the Employer to account for the Employer’s Liability to HM Revenue and Customs.

4.2. Without limitation to Clause 4.1 above, the Participant hereby authorises the Company and/or the Employer to collect the Employer's Liability from the Participant at any time after the Taxable Event:

a. by deduction from salary or any other payment payable to the Participant at any time on or after the date of the Taxable Event; and/or

b. directly from the Participant by payment in cash or cleared funds; and/or

c. by arranging, on behalf of the Participant, for the sale of some of the securities which the Participant is entitled to receive in respect of the Awards; and/or

d. through any other method as set forth in the relevant Award agreement entered into between the Participant and the Company.

10

4.3. The Company hereby reserves for itself and the Employer the right to withhold the transfer of any securities to the Participant until full payment of the Employer's Liability is collected from the Participant.

5. Duration of Election

5.1. The Participant and the Company agree to be bound by the terms of this Election regardless of whether the Participant is transferred abroad or is not employed by the Employer on the date on which the Employer's Liability becomes due. Any reference to the Company, the Employer and/or the Participant shall include that entity's successors in title and assigns as permitted in accordance with the terms of the Plan and Award agreement.

5.2. This Election will continue in effect until the earliest of the following:

a. such time as both the Participant and the Company agree in writing that it should cease to have effect;

b. on the date the Company serves written notice on the Participant terminating its effect;

c. on the date HM Revenue and Customs withdraws approval of this Election; or

d. on the date the Election ceases to have effect in accordance with its terms in respect of any outstanding Awards granted under the Plan.

11

Acceptance by THE PARTICIPANT

The Participant acknowledges that by clicking on the “I accept” button where indicated and from that date, the Participant agrees to be bound by the terms of this Election as stated above.

Acceptance by THE COMPANY

The Company acknowledges that by arranging for the scanned signature of an authorised representative to appear on this Election, the Company agrees to be bound by the terms of this Election as stated above.

Synopsys, Inc.

Name:

Title:

12

SCHEDULE TO FORM OF ELECTION – EMPLOYING COMPANIES

The employing companies to which this Election relates are:

(1)    Synopsys (Northern Europe) Limited

Registered Office:	100 Brook Drive Green Park, Reading RG2 6UJ United Kingdom
Company Registration Number:	2642054
Corporation Tax District:	Oxon and Bucks Area
Corporation Tax Reference:	402 56090 10710
PAYE District:	East Hampshire and Wight Area
PAYE Reference:	581/S3033

13

EX-10.15

EXHIBIT 10.15

SYNOPSYS, INC.

NON-EMPLOYEE DIRECTOR COMPENSATION ARRANGEMENTS

Effective November 1, 2015

The non-employee directors of Synopsys, Inc. (“Synopsys”) are compensated for serving on Synopsys’ Board of Directors (the “Board”). The compensation payable to Synopsys’ non-employee directors consists of cash compensation and equity awards. Synopsys also reimburses non-employee directors for out-of-pocket expenses for travel to Board meetings pursuant to Synopsys’ Corporate Travel Policy.

Cash.Synopsys pays non-employee directors an annual retainer of $125,000 for serving on the Board and pays additional annual retainers of $30,000 to the chair of the Audit Committee of the Board and $12,500 to the other members of the Audit Committee. Retainers are payable in advance in equal quarterly installments for each fiscal quarter or portion thereof in which the director serves.

Equity.Non-employee directors are eligible to receive equity awards under the 2005 Non-Employee Directors Equity Incentive Plan.

EX-21.1

EXHIBIT 21.1

SUBSIDIARIES OF SYNOPSYS, INC.*

Name	Jurisdiction of Incorporation
ARC International (UK) Ltd.	United Kingdom
ARC International Intellectual Property, Inc.	California
ARC International US Holdings, Inc.	Delaware
Coverity, LLC	Delaware
Magma Design Automation B.V.	Netherlands
Nihon Synopsys G.K.	Japan
SNPS Netherlands Holding Cooperatief U.A.	Netherlands
Synopsys (India) Private Limited	India
Synopsys Emulation and Verification S.A.S.	France
Synopsys Finland OY	Finland
Synopsys Global Kft.	Hungary
Synopsys International Limited	Ireland
Synopsys International Old Limited	Ireland
Synopsys Ireland Limited	Ireland
Synopsys Taiwan Co., Ltd.	Taiwan
Virage Logic LLC	Delaware

*Pursuant to Item 601(b)(21)(ii) of Regulation S-K, the names of other subsidiaries of Synopsys, Inc. are omitted because, considered in the aggregate, they would not constitute a significant subsidiary as of the end of the year covered by this report.

EX-23.1

EXHIBIT 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Synopsys, Inc.:

We consent to the incorporation by reference in the registration statements (Nos. 333-84517 and 333-68011) on Form S-3 and (Nos. 333-206458, 333-196428, 333-195167, 333-189019, 333-185600, 333-181875, 333-179940, 333-174587, 333-169275, 333-166274, 333-157791, 333-151070, 333-151067, 333-134899, 333-125225, 333-125224, 333-116222, 333-108507, 333-106149, 333-103636, 333-103635, 333-103418, 333-100155, 333-99651, 333-97319, 333-97317, 333-75638, 333-77000, 333-71056, 333-63216, 333-56170, 333-45056, 333-38810, 333-32130, 333-90643, 333-84279, 333-77597, 333-77127, 333-68883, 333-60783, 333-50947, 333-45181, 333-42069, and 333-22663) on Form S-8 of Synopsys, Inc. of our report dated December 14, 2015, with respect to the consolidated balance sheets of Synopsys, Inc. and subsidiaries as of October 31, 2015 and November 1, 2014, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended October 31, 2015, and the effectiveness of internal control over financial reporting as of October 31, 2015, which report appears in the October 31, 2015 annual report on Form 10-K of Synopsys, Inc.

/s/ KPMG LLP

Santa Clara, California

December 14, 2015

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Aart J. de Geus, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: December 14, 2015	/s/ Aart J. de Geus
	Aart J. de Geus   Co-Chief Executive Officer and Chairman   (Co-Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Chi-Foon Chan, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: December 14, 2015	/s/ Chi-Foon Chan
	Chi-Foon Chan
	Co-Chief Executive Officer and President (Co-Principal Executive Officer)

EX-31.3

EXHIBIT 31.3

CERTIFICATION

I, Trac Pham, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: December 14, 2015	/s/ Trac Pham
	Trac Pham
	Chief Financial Officer (Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and

(b) of Section 1350, Chapter 63 of Title 18, United States Code)

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

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

IN WITNESS WHEREOF, the undersigned have set their hands hereto as of December 14, 2015.

/s/ Aart J. de Geus

Aart J. de Geus

Co-Chief Executive Officer and Chairman

/s/ Chi-Foon Chan

Chi-Foon Chan

Co-Chief Executive Officer and President

/s/ Trac Pham

Trac Pham

Chief Financial Officer

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

XML

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Oct. 31, 2015	Dec. 10, 2015	Apr. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Oct. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Trading Symbol	SNPS
Entity Registrant Name	SYNOPSYS INC
Entity Central Index Key	0000883241
Current Fiscal Year End Date	--10-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		151,452,864
Entity Public Float			$ 5.0

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2015		Oct. 31, 2014
Current assets:
Cash and cash equivalents	$ 836,188		$ 985,762
Short-term investments	128,747		0
Total cash, cash equivalents and short-term investments	964,935		985,762
Accounts receivable, net of allowances of $2,561 and $2,026, respectively	385,694		326,727
Deferred income taxes	94,994		111,449
Income taxes receivable and prepaid taxes	46,732		26,496
Prepaid and other current assets	71,446		54,301
Total current assets	1,563,801		1,504,735
Property and equipment, net	263,077		249,098
Goodwill	2,471,241	[1]	2,255,708
Intangible assets, net	363,659		365,030
Long-term prepaid taxes	18,736		17,645
Long-term deferred income taxes	178,915		208,156
Other long-term assets	186,310		175,127
Total assets	5,045,739		4,775,499
Current liabilities:
Accounts payable and accrued liabilities	385,542		397,113
Accrued income taxes	19,565		31,404
Deferred revenue	968,246		928,242
Short-term debt	205,000		30,000
Total current liabilities	1,578,353		1,386,759
Long-term accrued income taxes	37,763		50,952
Long-term deferred revenue	93,613		77,646
Long-term debt	0		45,000
Other long-term liabilities	202,021		158,972
Total liabilities	1,911,750		1,719,329
Stockholders’ equity:
Preferred Stock, $0.01 par value: 2,000 shares authorized; none outstanding	0		0
Common Stock, $0.01 par value: 400,000 shares authorized; 155,157 and 155,965 shares outstanding, respectively	1,552		1,560
Capital in excess of par value	1,610,460		1,614,603
Retained earnings	1,725,727		1,551,592
Treasury stock, at cost: 2,107 and 1,299 shares, respectively	(98,375)		(49,496)
Accumulated other comprehensive income (loss)	(105,375)		(62,089)
Total stockholders’ equity	3,133,989		3,056,170
Total liabilities and stockholders’ equity	$ 5,045,739		$ 4,775,499

[1] There is no accumulated impairment of goodwill for periods presented.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 2,561	$ 2,026
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	2,000,000	2,000,000
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	400,000,000	400,000,000
Common Stock, shares outstanding	155,157,000	155,965,000
Treasury stock, shares	2,107,000	1,299,000

XML

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Revenue:
Time-based license	$ 1,792,212	$ 1,699,135	$ 1,599,464
Upfront license	197,325	135,757	132,018
Maintenance and service	252,674	222,580	230,732
Total revenue	2,242,211	2,057,472	1,962,214
Cost of revenue:
License	303,633	268,348	268,910
Maintenance and service	105,242	87,226	80,338
Amortization of intangible assets	110,045	101,311	104,304
Total cost of revenue	518,920	456,885	453,552
Gross margin	1,723,291	1,600,587	1,508,662
Operating expenses:
Research and development	776,229	718,768	669,197
Sales and marketing	474,407	453,079	425,982
General and administrative	165,097	155,215	143,791
Amortization of intangible assets	26,004	24,808	23,199
Restructuring Charges	15,088	0	0
Total operating expenses	1,456,825	1,351,870	1,262,169
Operating income	266,466	248,717	246,493
Other income (expense), net	15,144	23,425	29,173
Income before provision for income taxes	281,610	272,142	275,666
Provision (benefit) for income taxes	55,676	13,018	27,866
Net income	$ 225,934	$ 259,124	$ 247,800
Net income per share:
Basic (in USD per share)	$ 1.46	$ 1.67	$ 1.62
Diluted (in USD per share)	$ 1.43	$ 1.64	$ 1.58
Shares used in computing per share amounts:
Basic (shares)	154,957	155,054	153,319
Diluted (shares)	158,065	157,710	156,601

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Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 225,934	$ 259,124	$ 247,800
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(39,567)	(24,093)	(12,726)
Change in unrealized gains (losses) on investments, net of tax of $0, for fiscal 2015	(28)	0	0
Cash flow hedges:
Deferred gains (losses), net of tax of $7,107, $(3,108), and $2,999 for fiscal years 2015, 2014 and 2013, respectively	(18,614)	(5,419)	6,057
Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(6,212), $(125), and $(540) for fiscal years 2015, 2014 and 2013, respectively	14,923	(3,882)	(6,565)
Other comprehensive income (loss), net of tax effects	(43,286)	(33,394)	(13,234)
Comprehensive income	$ 182,648	$ 225,730	$ 234,566

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Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Statement of Comprehensive Income [Abstract]
Deferred gain (loss), tax	$ 7,107	$ (3,108)	$ 2,999
Reclassification adjustment on deferred (gains) loss included in net income, tax	(6,212)	(125)	(540)
Changes in unrealized gains (losses) on available-for-sale securities, tax	$ 0	$ 0	$ 0

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Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total Synopsys Stockholders’ Equity	Non-controlling Interest
Balance (in shares) at Oct. 31, 2012		150,899
Balance at Oct. 31, 2012	$ 2,543,971	$ 1,509	$ 1,585,034	$ 1,098,694	$ (168,090)	$ (15,461)	$ 2,501,686	$ 42,285
Net income	247,800			247,800			247,800
Other comprehensive income (loss), net of tax effects	$ (13,234)					(13,234)	(13,234)
Purchases of treasury stock, shares	(3,996)	(3,996)
Purchases of treasury stock, value	$ (145,016)	$ (40)	40		(145,016)		(145,016)
Common stock issued (in shares)	7,266	7,266
Common stock issued	$ 129,559	$ 73	(55,312)	(21,640)	206,438		129,559
Stock compensation expense	67,482		67,482				67,482
Non-controlling interest in an acquired company	(42,285)							$ (42,285)
Balance (in shares) at Oct. 31, 2013		154,169
Balance at Oct. 31, 2013	2,788,277	$ 1,542	1,597,244	1,324,854	(106,668)	(28,695)	2,788,277	0
Net income	259,124			259,124			259,124
Other comprehensive income (loss), net of tax effects	$ (33,394)					(33,394)	(33,394)
Purchases of treasury stock, shares	(3,092)	(3,092)
Purchases of treasury stock, value	$ (119,747)	$ (31)	31		(119,747)		(119,747)
Common stock issued (in shares)	4,888	4,888
Common stock issued	$ 82,470	$ 49	(62,112)	(32,386)	176,919		82,470
Stock compensation expense	79,440		79,440				79,440
Balance (in shares) at Oct. 31, 2014		155,965
Balance at Oct. 31, 2014	3,056,170	$ 1,560	1,614,603	1,551,592	(49,496)	(62,089)	3,056,170	0
Net income	225,934			225,934			225,934
Other comprehensive income (loss), net of tax effects	$ (43,286)					(43,286)	(43,286)
Purchases of treasury stock, shares	(5,672)	(5,672)
Purchases of treasury stock, value	$ (260,000)	$ (57)	57		(260,000)		(260,000)
Equity Forward Contract	$ (20,000)		(20,000)				(20,000)
Common stock issued (in shares)	4,864	4,864
Common stock issued	$ 84,526	$ 49	(74,845)	(51,799)	211,121		84,526
Stock compensation expense	86,400		86,400				86,400
Tax benefit from stock-based compensation	4,245		4,245				4,245
Balance (in shares) at Oct. 31, 2015		155,157
Balance at Oct. 31, 2015	$ 3,133,989	$ 1,552	$ 1,610,460	$ 1,725,727	$ (98,375)	$ (105,375)	$ 3,133,989	$ 0

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Cash flow from operating activities:
Net income	$ 225,934	$ 259,124	$ 247,800
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation	211,821	192,826	187,404
Stock compensation	86,400	79,440	67,511
Allowance for doubtful accounts	1,300	(1,250)	102
(Gain) loss on sale of investments	(109)	(6,999)	(868)
Excess tax benefits from stock-based compensation	(4,245)	0	0
Deferred income taxes	36,883	(17,100)	(676)
Net changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	(56,533)	(65,018)	37,590
Prepaid and other current assets	(23,106)	1,836	(12,063)
Other long-term assets	(16,259)	(23,270)	(27,468)
Accounts payable and accrued liabilities	27,568	40,645	(1,135)
Income taxes	(44,633)	(9,095)	(2,306)
Deferred revenue	50,139	99,814	814
Net cash provided by operating activities	495,160	550,953	496,705
Cash flows from investing activities:
Proceeds from sales and maturities of short-term investments	109,173	0	0
Purchases of short-term investments	(238,902)	0	0
Proceeds from sales of long-term investments	0	7,774	989
Proceeds from sale of property and equipment	0	0	2,000
Purchases of property and equipment	(86,965)	(103,275)	(65,459)
Cash paid for acquisitions and intangible assets, net of cash acquired	(340,153)	(394,623)	0
Capitalization of software development costs	(3,682)	(3,638)	(3,609)
Other	900	(3,488)	0
Net cash used in investing activities	(559,629)	(497,250)	(66,079)
Cash flows from financing activities:
Acquisition of non-controlling interests	0	0	(44,004)
Proceeds from credit facility	460,000	200,000	0
Repayment of debt	(330,425)	(230,968)	(30,712)
Issuances of common stock	84,904	82,083	131,914
Purchase of equity forward contract	(20,000)	0	0
Purchases of treasury stock	(260,000)	(119,747)	(145,016)
Excess tax benefits from stock-based compensation	4,245	0	0
Other	(794)	(5,057)	(10,167)
Net cash used in financing activities	(62,070)	(73,689)	(97,985)
Effect of exchange rate changes on cash and cash equivalents	(23,035)	(16,693)	(10,582)
Net change in cash and cash equivalents	(149,574)	(36,679)	322,059
Cash and cash equivalents, beginning of year	985,762	1,022,441	700,382
Cash and cash equivalents, end of year	836,188	985,762	1,022,441
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes during the year:	59,731	40,741	31,326
Interest payments during the year:	$ 2,710	$ 1,904	$ 1,761

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Description of Business

12 Months Ended

Oct. 31, 2015

Accounting Policies [Abstract]

Description of Business

Description of Business

Synopsys, Inc. (Synopsys or the Company) provides software, intellectual property and services used by designers along the entire silicon to software spectrum, from engineers creating advanced semiconductors to software developers seeking to ensure the quality and security of their applications. The Company is a global leader in supplying the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. The Company also offers intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. The Company provides software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. To complement these offerings, which are sold primarily to semiconductor and electronics companies, the Company provides technical services to support these solutions and help its customers develop chips and electronic systems. The Company is also a leading provider of software tools that developers use to improve the quality and security of software code in a wide variety of industries, including electronics, financial services, energy, and industrials.

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Summary of Significant Accounting Policies

12 Months Ended

Oct. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Fiscal Year End. The Company’s fiscal year ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. Fiscal 2015, 2014, and 2013 were 52-week years ending on October 31, 2015, November 1, 2014, and November 2, 2013, respectively. For presentation purposes, the consolidated financial statements and accompanying notes refer to the closest calendar month end.

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

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

Foreign Currency Translation. The functional currency of the majority of the Company’s active foreign subsidiaries is the foreign subsidiary’s local currency. Assets and liabilities that are not denominated in the functional currency are remeasured into the functional currency with any related gain or loss recorded in earnings. The Company translates assets and liabilities of its non-U.S. dollar functional currency foreign operations into the U.S. dollar reporting currency at exchange rates in effect at the balance sheet date. The Company translates income and expense items of such foreign operations into U.S. dollars reporting currency at average exchange rates for the period. Accumulated translation adjustments are reported in stockholders’ equity, as a component of accumulated other comprehensive income (loss).

Foreign Currency Contracts. The Company operates internationally and is exposed to potentially adverse movements in currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheet.

The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. See Note 5. Financial Assets and Liabilities.

Fair Values of Financial Instruments. The Company’s cash equivalents, short-term investments and foreign currency contracts are carried at fair value. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. Non-marketable equity securities are carried at cost, net of impairments. The Company performs periodic impairment analysis over these non-marketable equity securities. The carrying amount of the short-term and long-term debt approximates the estimated fair value. See Note 6. Fair Value Measures.

Cash, Cash Equivalents and Short-term Investments. The Company classifies investments with original maturities of three months or less when acquired as cash equivalents. All of the Company’s short-term investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses included in stockholders’ equity as a component of accumulated other comprehensive income (loss), net of tax. Those unrealized gains or losses deemed other than temporary are reflected in other income (expense), net. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net. See Note 5. Financial Assets and Liabilities.

Concentration of Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign currency contracts, and accounts receivable from trade customers. The Company maintains cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U.S. and in various overseas locations.

The Company sells its products worldwide primarily to customers in the global electronics market. The Company performs on-going credit evaluations of its customers’ financial condition and does not require collateral. The Company establishes reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented.

Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains allowances for doubtful accounts to reduce the Company’s receivables to their estimated net realizable value. The Company provides a general reserve on all accounts receivable based on a review of customer accounts. The following table presents the changes in the allowance for doubtful accounts:

Fiscal Year	Balance at Beginning of Period		Provisions			Write-offs(1)			Balance at End of Period
	(in thousands)
2015	$	2,026	$	1,300		$	(765	)	$	2,561
2014	$	4,253	$	(1,250	)	$	(977	)	$	2,026
2013	$	6,072	$	102		$	(1,921	)	$	4,253

(1) Balances written off, net of recoveries.

Income Taxes. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied.

Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Assets, excluding land, are depreciated using the straight-line method over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over the remaining term of the lease or the economic useful life of the asset, whichever is shorter. Depreciation expenses were $71.1 million, $63.1 million and $56.7 million in fiscal 2015, 2014 and 2013, respectively. Repair and maintenance costs are expensed as incurred and such costs were $32.3 million, $28.7 million and $26.3 million in fiscal 2015, 2014 and 2013, respectively.

A summary of property and equipment, at cost less accumulated depreciation and amortization, as of October 31, 2015 and 2014 is as follows:

	October 31,
	2015			2014
	(in thousands)
Computer and other equipment	$	436,425		$	419,951
Buildings	67,943			68,871
Furniture and fixtures	50,075			41,089
Land	20,414			20,414
Leasehold improvements	142,275			136,513
	717,132			686,838
Less accumulated depreciation and amortization(1)	(454,055		)	(437,740		)
Total	$	263,077		$	249,098

(1) Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets.

The useful lives of depreciable assets are as follows:

	Useful Life in Years
Computer and other equipment	3-5
Buildings	30
Furniture and fixtures	5
Leasehold improvements (average)	5

Goodwill. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment annually as of October 31 or more frequently if facts and circumstances warrant a review. The Company determined that it is a single reporting unit for the purpose of goodwill impairment tests. For purposes of assessing the impairment of goodwill, the Company estimates the value of the reporting unit using its market capitalization as the best evidence of fair value. This fair value is then compared to the carrying value of the reporting unit. During fiscal 2015, 2014 and 2013, there were no indicators of impairment to goodwill.

Intangible Assets. Intangible assets consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, covenants not to compete, capitalized software, and in-process research and development. These intangible assets are either acquired through business combinations, direct purchases, or internally developed capitalized software. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from one to ten years.

The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment and intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such asset group will be recovered through the undiscounted future cash flow. If the undiscounted future cash flow is less than the carrying amount of the asset group, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the asset group. The Company had no impairments of any long-lived assets in fiscal 2015, 2014 or 2013.

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

Accounts Payable and Accrued Liabilities. The balance consists of:

	October 31,
	2015		2014
	(in thousands)
Payroll and related benefits	$	315,078	$	302,295
Other accrued liabilities	60,545		66,666
Accounts payable	9,919		28,152
Total	$	385,542	$	397,113

Other Long-term Liabilities. The balance consists of:

	October 31,
	2015		2014
	(in thousands)
Deferred compensation liability (See Note 10)	$	158,462	$	145,508
Other long-term liabilities	43,559		13,464
Total	$	202,021	$	158,972

Other Comprehensive Income (Loss). Other comprehensive income (loss) (OCI) includes all changes in equity during a period, such as accumulated net translation adjustments, unrealized gain (loss) on certain foreign currency forward contracts that qualify as cash flow hedges, reclassification adjustments related to cash flow hedges and unrealized gain (loss) on investments. See Note 8. Accumulated Other Comprehensive Income (Loss).

Revenue Recognition. The Company derives revenue from the sale of software license arrangements. Software license revenue consists of fees associated with the licensing of the Company’s software licenses, maintenance and professional services and to a small extent, hardware products. Maintenance and professional service revenue consists of maintenance fees associated with perpetual and term licenses and professional services fees. Hardware revenue consists of sales of Field Programmable Gate Array (FPGA)-based emulation and prototyping products.

With respect to software licenses, the Company utilizes three license types:

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

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

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

For the three software license types, the Company recognizes revenue as follows:

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

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

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

The Company's maintenance and service revenue consists of maintenance fees associated with perpetual and term software licenses and professional services fees. The Company recognizes revenue from maintenance arrangements ratably over the maintenance period to the extent cash has been received or fees become due and payable, and recognize revenue from professional services and training fees as such services are performed and accepted by the customer. Revenue attributable to maintenance, professional services and training is reported as “maintenance and service revenue” in the consolidated statements of operations.

Hardware revenue consists of sales of FPGA-based emulation and prototyping products. The Company recognizes revenue from sales of hardware products in full upon shipment if all other revenue recognition criteria are met. Revenue attributable to these sales is reported as “upfront license revenue” in the consolidated statements of operations and is not material to the Company's total revenue.

The Company also enters into arrangements in which portions of revenue are contingent upon the occurrence of uncertain future events, for example, royalty arrangements. The Company refers to this revenue as “contingent revenue.” Contingent revenue is recognized if and when the applicable event occurs. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. Historically, these arrangements have not been material to the Company’s total revenue.

The Company infrequently enters into multiple-element arrangements that contain both software and non-software deliverables such as hardware. The Company has determined that the software and non-software deliverables in the Company’s contracts are separate units of accounting. The Company recognizes revenue for the separate units of accounting when all revenue recognition criteria are met. Revenue allocated to hardware units of accounting is recognized upon shipment when all other revenue recognition criteria are met. Revenue allocated to software units of accounting is recognized according to the methods described above depending on the software license type (TSL, term license or perpetual license). Such arrangements have not had a material effect on the Company’s consolidated financial statements and are not expected to have a material effect in future periods.

The Company also enters into arrangements to deliver software products, either alone or together with other products or services that require significant modification, or customization of the software. The Company accounts for such arrangements using the percentage of completion method as the Company has the ability to make reasonably dependable estimates that relate to the extent of progress toward completion, contract revenues and costs. The Company measures the progress towards completion using the labor hours incurred to complete the project. Revenue attributable to these arrangements is reported as “maintenance and service revenue” in the consolidated statements of operations.

The Company determines the fair value of each element in multiple element software arrangements that contain only software and software related deliverables based on vendor-specific objective evidence (VSOE). The Company limits assessment of VSOE of fair value for each element to the price charged when such element is sold separately. The Company has analyzed all of the elements included in multiple-element software arrangements and has determined that the Company has sufficient VSOE to allocate revenue to the maintenance components of the Company’s perpetual and term license products and to professional services. Accordingly, assuming all other revenue recognition criteria are met, the Company recognizes license revenue from perpetual and term licenses upon delivery using the residual method, recognizes revenue from maintenance ratably over the maintenance term, and recognizes revenue from professional services as services are performed and accepted by the customer. The Company recognizes revenue from TSLs ratably over the term of the license, assuming all other revenue recognition criteria are met, since there is not sufficient VSOE to allocate the TSL fee between license and maintenance services.

The Company makes judgments related to revenue recognition. Specifically, in connection with each transaction involving the Company’s products, the Company must evaluate whether: (1) persuasive evidence of an arrangement exists, (2) delivery of software or services has occurred, (3) the fee for such software or services is fixed or determinable, and (4) collectability of the full license or service fee is probable. All four of these criteria must be met in order for the Company to recognize revenue with respect to a particular arrangement. The Company applies these revenue recognition criteria as follows:

• Persuasive Evidence of an Arrangement Exists. Prior to recognizing revenue on an arrangement, the Company’s customary policy is to have a written contract, signed by both the customer and by the Company or a purchase order from those customers that have previously negotiated a standard end-user license arrangement or purchase agreement.

• Delivery Has Occurred. The Company delivers its products to its customers electronically or physically. For electronic deliveries, delivery occurs when the Company provides access to its customers to take immediate possession of the software through downloading it to the customer’s hardware. For physical deliveries, the standard transfer terms are typically Freight on Board (FOB) shipping point. The Company generally ships its products or license keys promptly after acceptance of customer orders. However, a number of factors can affect the timing of product shipments and, as a result, timing of revenue recognition, including the delivery dates requested by customers and the Company's operational capacity to fulfill product orders at the end of a fiscal quarter.

• The Fee is Fixed or Determinable. The Company’s determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. The Company’s standard payment terms for perpetual and term licenses require 75% or more of the license fee and 100% of the maintenance fee to be paid within one year. If the arrangement includes these terms, the Company regards the fee as fixed or determinable, and recognizes all license revenue under the arrangement in full upon delivery (assuming all other revenue recognition criteria are met). If the arrangement does not include these terms, the Company does not consider the fee to be fixed or determinable and generally recognizes revenue when customer installments are due and payable. In the case of a TSL, because of the right to exchange products or receive unspecified future technology and because VSOE for maintenance services does not exist for a TSL, the Company recognizes revenue ratably over the term of the license, but not in advance of when customers’ installments become due and payable.

• Collectability is Probable. The Company judges collectability of the arrangement fees on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a history of successful collection. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position and ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is not probable under a particular arrangement based upon its credit review process or the customer’s payment history, the Company recognizes revenue under that arrangement as customer payments are actually received.

Warranties and Indemnities. The Company generally warrants its products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for software products and for up to six months for hardware systems. In certain cases, the Company also provides its customers with limited indemnification with respect to claims that their use of the Company’s software products infringe on United States patents, copyrights, trademarks or trade secrets. The Company is unable to estimate the potential impact of these commitments on the future results of operations. To date, the Company has not been required to pay any material warranty claims.

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

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

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Numerator:
Net income	$	225,934	$	259,124	$	247,800
Denominator:
Weighted average common shares for basic net income per share	154,957		155,054		153,319
Dilutive effect of common share equivalents from equity—based compensation	3,108		2,656		3,282
Weighted average common shares for diluted net income per share	158,065		157,710		156,601
Net income per share:
Basic	$	1.46	$	1.67	$	1.62
Diluted	$	1.43	$	1.64	$	1.58
Anti-dilutive employee stock-based awards excluded(1)	1,363		2,196		1,326

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

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Business Combinations

12 Months Ended

Oct. 31, 2015

Business Combinations [Abstract]

Business Combinations and Acquisition of Non-controlling Interest

Business Combinations

Fiscal 2015 Acquisitions

During fiscal 2015, the Company completed several acquisitions. The aggregated total purchase consideration was $333.2 million, net of cash acquired. The Company does not consider these acquisitions to be material, individually or in the aggregate, to the Company’s consolidated balance sheet and results of operations. The preliminary purchase price allocations resulted in $234.0 million of goodwill, of which $2.3 million is deductible for tax purposes, and $119.8 million of acquired identifiable intangible assets valued using the income method. The intangible assets are being amortized over their respective useful lives ranging from one to seven years. The acquisition-related costs totaling $14.9 million were expensed as incurred in the consolidated statement of operations. The Company funded the acquisitions with existing cash. The fair value of stock options assumed was approximately $2.1 million using the Black-Scholes option-pricing model and will be expensed over their remaining service periods on a straight-line basis.

The preliminary fair value estimates for the assets acquired and liabilities assumed for all fiscal 2015 acquisitions are not yet finalized and may change as additional information becomes available during the respective measurement periods. The primary areas of those preliminary estimates relate to certain tangible assets and liabilities, identifiable intangible assets, and taxes. Additional information, which existed as of the acquisition date but is yet unknown to the Company, may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Changes to amounts recorded as assets or liabilities will be recorded as retrospective adjustments to the provisional amounts recognized as of the acquisition date and may result in a corresponding adjustment to goodwill.

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Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill:

	(in thousands)
Balance at October 31, 2013	$	1,975,971
Additions	290,379
Effect of foreign currency translation	(10,642		)
Balance at October 31, 2014	$	2,255,708
Additions	233,989
Adjustments	684
Effect of foreign currency translation	(19,140		)
Balance at October 31, 2015(1)	$	2,471,241

(1) There is no accumulated impairment of goodwill for periods presented.

Intangible assets as of October 31, 2015 consist of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	584,293	$	375,395	$	208,898
Customer relationships	231,908		115,170		116,738
Contract rights intangible	165,623		141,763		23,860
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	20,729		10,665		10,064
Capitalized software development costs	25,511		21,412		4,099
Total	$	1,030,594	$	666,935	$	363,659

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

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	490,242	$	298,705	$	191,537
Customer relationships	210,172		92,146		118,026
Contract rights intangible	146,364		109,067		37,297
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	18,779		7,765		11,014
In-process research and development (IPR&D)(1)	3,086		—		3,086
Capitalized software development costs	21,829		17,759		4,070
Total	$	893,002	$	527,972	$	365,030

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

Amortization expense related to intangible assets consisted of the following:

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Core/developed technology	$	76,674	$	70,675	$	68,781
Customer relationships	23,104		22,470		21,394
Contract rights intangible	33,350		30,615		35,538
Covenants not to compete	—		50		126
Trademarks and trade names	2,900		2,309		1,663
Capitalized software development costs(1)	3,653		3,581		3,222
Total	$	139,681	$	129,700	$	130,724

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

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

Fiscal Year	(in thousands)
2016	$	126,865
2017	87,586
2018	62,736
2019	39,729
2020	28,334
2021 and thereafter	18,409
Total	$	363,659

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Financial Assets and Liabilities

12 Months Ended

Oct. 31, 2015

Financial Assets And Liabilities [Abstract]

Financial Assets and Liabilities

Financial Assets and Liabilities

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

During the first quarter of fiscal 2015, the Company made investments in available-for-sale securities. As of October 31, 2015, the balances of our available-for-sale securities and non-marketable equity securities investments are:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Continuous Months			Gross Unrealized Losses 12 Continuous Months or Longer		Estimated Fair Value(1)
	(in thousands)
Cash equivalents:
Money market funds	$	233,839	$	—	$	—		$	—	$	233,839
Commercial paper	1,834		—		—			—		1,834
Certificates of deposit	3,500		—		—			—		3,500
Asset-backed securities	300		—		(1		)	—		299
Total:	$	239,473	$	—	$	(1	)	$	—	$	239,472
Short-term investments:
U.S. government agency securities	$	12,615	$	3	$	(4	)	$	—	$	12,614
Municipal bonds	1,403		1		(1		)	—		1,403
Certificates of deposit	9,800		—		—			—		9,800
Commercial paper	12,129		—		—			—		12,129
Corporate debt securities	67,201		27		(40		)	—		67,188
Asset-backed securities	24,619		2		(13		)	—		24,608
Non-U.S. government agency securities	1,007		—		(2		)	—		1,005
Total:	$	128,774	$	33	$	(60	)	$	—	$	128,747
Other long-term assets:
Non-marketable equity securities	$	10,277	$	—	$	—		$	—	$	10,277
Total:	$	10,277	$	—	$	—		$	—	$	10,277

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

As of October 31, 2014, the balances of our cash equivalents and non-marketable equity securities investments are:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Continuous Months		Gross Unrealized Losses 12 Continuous Months or Longer		Estimated Fair Value(1)
	(in thousands)
Cash equivalents:
Money market funds	$	409,064	$	—	$	—	$	—	$	409,064
Total:	$	409,064	$	—	$	—	$	—	$	409,064
Other long-term assets:
Non-marketable equity securities	$	10,869	$	—	$	—	$	—	$	10,869
Total:	$	10,869	$	—	$	—	$	—	$	10,869

(1) See Note 6. Fair Value Measures for further discussion on fair values of money market funds and non-marketable equity securities.

As of October 31, 2015, the stated maturities of the Company's available-for-sale securities are:

	Amortized Cost		Fair Value
	(in thousands)
Due in 1 year or less	$	76,774	$	76,784
Due in 2-5 years	51,908		51,871
Due in 6-10 years	92		92
Total	$	128,774	$	128,747

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

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

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

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

Cash Flow Hedging Activities

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

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

Non-designated Hedging Activities

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

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

The effects of the changes in the fair values of non-designated forward contracts for fiscal years 2015, 2014 and 2013 are summarized as follows:

	October 31,
	2015			2014			2013
	(in thousands)
Gain (loss) recorded in other income (expense), net	$	(5,554	)	$	(3,301	)	$	3,009

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

	As of October 31, 2015			As of October 31, 2014
	(in thousands)
Total gross notional amount	$	781,752		$	793,937
Net fair value	$	(3,819	)	$	(2,455	)

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

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

	Fair Values of derivative instruments designated as hedging instruments		Fair Values of derivative instruments not designated as hedging instruments
	(in thousands)
As of October 31, 2015
Other current assets	$	6,461	$	1
Accrued liabilities	$	10,141	$	140
As of October 31, 2014
Other current assets	$	9,299	$	1
Accrued liabilities	$	11,656	$	99

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

	Location of gain (loss) recognized in OCI on derivatives	Amount of gain (loss) recognized in  OCI on derivatives (effective portion)			Location of gain (loss) reclassified  from OCI	Amount of gain (loss) reclassified  from OCI (effective  portion)
	(in thousands)
Fiscal year ended October 31, 2015
Foreign exchange contracts	Revenue	$	3,982		Revenue	$	9,270
Foreign exchange contracts	Operating expenses	(22,605		)	Operating expenses	(24,193		)
Total		$	(18,623	)		$	(14,923	)
Fiscal year ended October 31, 2014
Foreign exchange contracts	Revenue	$	5,395		Revenue	$	2,339
Foreign exchange contracts	Operating expenses	(10,896		)	Operating expenses	1,543
Total		$	(5,501	)		$	3,882
Fiscal year ended October 31, 2013
Foreign exchange contracts	Revenue	$	2,427		Revenue	$	7,457
Foreign exchange contracts	Operating expenses	3,680			Operating expenses	(892		)
Total		$	6,107			$	6,565

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

Foreign exchange contracts	Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)(1)			Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2)
	(in thousands)
Fiscal year ended October 31, 2015	$	878		$	3,704
Fiscal year ended October 31, 2014	$	(302	)	$	3,259
Fiscal year ended October 31, 2013	$	293		$	2,518

(1) The ineffective portion includes forecast inaccuracies.

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

Other Commitments - Credit and Term Loan Facilities

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

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

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

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Fair Value Measures

12 Months Ended

Oct. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measures

Fair Value Measures

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

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

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

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

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

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

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

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

The Company’s borrowings under its credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Refer to Note 5. Financial Assets and Liabilities.

Assets/Liabilities Measured at Fair Value on a Recurring Basis

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

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets  for Identical Assets (Level  1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	233,839	$	233,839	$	—	$	—
Commercial paper	1,834		—		1,834		—
Certificates of deposit	3,500		—		3,500		—
Asset-backed securities	299		—		299		—
Short-term investments:
U.S. government agency securities	12,614		—		12,614		—
Municipal bonds	1,403		—		1,403		—
Certificates of deposit	9,800		—		9,800		—
Commercial paper	12,129		—		12,129		—
Corporate debt securities	67,188		—		67,188		—
Asset-backed securities	24,608		—		24,608		—
Non-U.S. government agency securities	1,005		—		1,005		—
Prepaid and other current assets:
Foreign currency derivative contracts	6,462		—		6,462		—
Other long-term assets:
Deferred compensation plan assets	158,462		158,462		—		—
Total assets	$	533,143	$	392,301	$	140,842	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	10,281	$	—	$	10,281	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	158,462		158,462		—		—
Total liabilities	$	168,743	$	158,462	$	10,281	$	—

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

Description	Total		Fair Value Measurement Using
			Quoted Prices in  Active Markets  for Identical Assets (Level  1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	409,064	$	409,064	$	—	$	—
Prepaid and other current assets:
Foreign currency derivative contracts	9,300		—		9,300		—
Other long-term assets:
Deferred compensation plan assets	145,508		145,508		—		—
Total assets	$	563,872	$	554,572	$	9,300	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	11,755	$	—	$	11,755	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	145,508		145,508		—		—
Total liabilities	$	157,263	$	145,508	$	11,755	$	—

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

Non-Marketable Equity Securities

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

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

The Company did not recognize any impairment during fiscal 2015, 2014 and 2013.

As of October 31, 2015, the fair value of the Company’s non-marketable securities was $10.3 million of which $6.6 million and $3.7 million were accounted for under the cost method and equity method, respectively. As of October 31, 2014, the fair value of the Company's non-marketable securities was $10.9 million, of which $6.7 million and $4.2 million were accounted for under the cost method and equity method, respectively. During the twelve months ended October 31, 2014, the Company received cash distributions of $7.1 million from the liquidation of one of its investments resulting in a $6.9 million gain, which was recorded to other income (expense), net.

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Commitments and Contingencies

12 Months Ended

Oct. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Lease Commitments

The Company leases certain of its domestic and foreign facilities and certain office equipment under non-cancelable lease agreements. The lease agreements generally require the Company to pay property taxes, insurance, maintenance and repair costs. Rent expenses were $67.6 million, $65.6 million and $64.4 million in fiscal 2015, 2014 and 2013, respectively. The Company charges operating lease payments to expense using the straight-line method. The Company subleases portions of its facilities and records sublease payments as a reduction of rent expense.

During the first quarter of fiscal 2015, the Company moved into two new office buildings in Mountain View, California. The buildings together provide approximately 341,000 square feet. This space is leased through August 2030, and the Company has two options to extend the lease term, the first to extend the term by ten years, followed by a second option to extend by approximately nine additional years.

As of October 31, 2015, anticipated future minimum lease payments on all non-cancellable operating leases with a term in excess of one year, net of sublease income are as follows:

	Minimum Lease Payments		Sublease Income		Net
	(in thousands)
Fiscal Year
2016	$	52,266	$	2,579	$	49,687
2017	47,695		2,063		45,632
2018	40,979		2,120		38,859
2019	35,469		2,179		33,290
2020	25,501		2,239		23,262
Thereafter	164,731		4,432		160,299
Total	$	366,641	$	15,612	$	351,029

Legal Proceedings

The Company is subject to routine legal proceedings, as well as demands, claims and threatened litigation, which arise in the normal course of its business. The ultimate outcome of any litigation is uncertain and unfavorable outcomes could have a negative impact on the Company’s financial position and results of operations. The Company reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount is estimable, the Company accrues a liability for the estimated loss. The Company has determined that no disclosure of estimated loss is required for a claim against the Company because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial.

Mentor Patent Litigation

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

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

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

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

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

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

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

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Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Oct. 31, 2015

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

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

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

	Year Ended October 31,
	2015			2014
	(in thousands)
Cumulative currency translation adjustments	$	(90,508	)	$	(50,941	)
Unrealized gain (loss) on derivative instruments, net of taxes	(14,839		)	(11,148		)
Unrealized gain (loss) on available-for-sale securities, net of taxes	(28		)	—
Total accumulated other comprehensive income (loss)	$	(105,375	)	$	(62,089	)

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

	Year Ended October 31,
	2015			2014		2013
	(in thousands)
Reclassifications from accumulated other comprehensive income (loss) into consolidated statement of operations:
Gain (loss) on cash flow hedges, net of taxes
Revenues	$	9,270		$	2,339	$	7,457
Operating expenses	(24,193		)	1,543		(892		)
Gain (loss) on available-for-sale securities
Other income (expense)	41			—		—
Total reclassifications into net income	$	(14,882	)	$	3,882	$	6,565

Amounts reclassified in fiscal 2015, 2014 and 2013 primarily consisted of gains (losses) from the Company’s cash flow hedging activities. See Note 5. Financial Assets and Liabilities.

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Stock Repurchase Program

12 Months Ended

Oct. 31, 2015

Stock Repurchase Program [Abstract]

Stock Repurchase Program

Stock Repurchase Program

The Company’s Board of Directors (Board) approved a stock repurchase program in 2002 pursuant to which the Company was authorized to purchase up to $500.0 million of its common stock, and has periodically replenished the stock repurchase program to such amount. The Board last replenished the stock repurchase program up to $500.0 million on September 1, 2015. The program does not obligate Synopsys to acquire any particular amount of common stock, and the program may be suspended or terminated at any time by Synopsys’ Chief Financial Officer or the Board. The Company repurchases shares to offset dilution caused by ongoing stock issuances from existing equity plans for equity compensation awards and issuances related to acquisitions, and when management believes it is a good use of cash. Repurchases are transacted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934 (Exchange Act) and may be made through any means including, but not limited to, open market purchases, plans executed under Rule 10b5-1(c) of the Exchange Act and structured transactions. As of October 31, 2015, $500 million remained available for further repurchases under the program.

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

In August 2015, the Company entered into an accelerated share repurchase agreement (the August 2015 ASR) to repurchase an aggregate of $100.0 million of the Company’s common stock. Pursuant to the August 2015 ASR, the Company made a prepayment of $100.0 million and received an initial share delivery of shares valued at $80.0 million with an average purchase price of $46.94 per share. The remaining balance of $20.0 million is included within stockholders' equity during fiscal 2015 and was settled in the first quarter of fiscal 2016. Total shares purchased under the August 2015 ASR were approximately 2.1 million total shares, at an average purchase price of $48.06 per share.

In December 2015, the Company entered into two accelerated share repurchase agreements (December 2015 ASRs) to repurchase an aggregate of $200.0 million of the Company’s common stock. Pursuant to the December 2015 ASRs, the Company made a prepayment of $200.0 million and received initial share deliveries of shares valued at $160.0 million with an average purchase price of $46.08 per share. The remaining balance of $40.0 million will be settled on or before April 29, 2016, upon completion of the repurchase. Under the terms of the December 2015 ASRs, the specific number of shares that the Company ultimately repurchases will be based on the volume-weighted average share price of the Company’s common stock during the repurchase period, less a discount.

The following table summarizes stock repurchase activities as well as the reissuance of treasury stock for employee stock compensation purposes:

	Year Ended October 31,
	2015		2014		2013
	(in thousands, except per share price)
Shares repurchased	5,672		3,092		3,996
Average purchase price per share	$	45.84	$	38.72	$	36.29
Aggregate purchase price(1)	$	260,000	$	119,747	$	145,016
Reissuance of treasury stock	4,864		4,888		7,266

(1) Does not include $20.0 million equity forward contract related to the above-referenced August 2015 ASR.

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Employee Benefit Plans

12 Months Ended

Oct. 31, 2015

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

Employee Benefit Plans

Employee Benefit Plans

Employee Stock Purchase Plan

Under the Company’s Employee Stock Purchase Plan (ESPP), employees are granted the right to purchase shares of common stock at a price per share that is 85% of the lesser of the fair market value of the shares at (1) the beginning of a rolling two year offering period or (2) the end of each semi-annual purchase period, subject to a plan limit on the number of shares that may be purchased in a purchase period.

On April 2, 2014, the Company’s stockholders approved an amendment to the ESPP to increase the number of shares of common stock authorized for issuance under the plan by 5.0 million shares. During fiscal 2015, 2014 and 2013, the Company issued 1.7 million, 1.8 million, and 2.1 million shares, respectively, under the ESPP at average per share prices of $31.55, $30.00 and $22.75, respectively. As of October 31, 2015, 5.3 million shares of common stock were reserved for future issuance under the ESPP.

Equity Compensation Plans

2006 Employee Equity Incentive Plan. On April 25, 2006, the Company’s stockholders approved the 2006 Employee Equity Incentive Plan (2006 Employee Plan), which provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights and other forms of equity compensation, including performance stock awards and performance cash awards, as determined by the plan administrator. The terms and conditions of each type of award are set forth in the 2006 Employee Plan. Options granted under this plan have a contractual term of seven years and generally vest over four years. On April 2, 2015, the Company's stockholders approved an amendment to increase the number of shares of common stock reserved for future issuance under the 2006 Employee Plan by 3.8 million shares. As of October 31, 2015, an aggregate of 6.6 million stock options and 3.9 million restricted stock units were outstanding, and 11.9 million shares were available for future issuance under the 2006 Employee Plan.

2005 Non-Employee Directors Equity Incentive Plan. On May 23, 2005, the Company’s stockholders approved the 2005 Non-Employee Directors Equity Incentive Plan (the 2005 Directors Plan). The 2005 Directors Plan provides for annual equity awards to non-employee directors in the form of stock options, restricted stock or a combination thereof. The Company’s stockholders have approved an aggregate of 0.8 million shares of common stock reserved under the 2005 Directors Plan.

As of October 31, 2015, the Company has issued an aggregate of 343,070 shares of restricted stock awards with an aggregate grant date fair value of approximately $10.5 million under the 2005 Directors Plan. Restricted stock awards vest over a period of three years. In addition, the Company granted options to purchase 157,871 shares of common stock, which vest over a period of three to four years, with an aggregate grant date fair value of $4.7 million, to non-employee directors during fiscal 2007, fiscal 2011, and fiscal 2015. As of October 31, 2015, 44,823 shares of restricted stock were unvested and 76,369 stock options were outstanding, and a total of 262,402 shares of common stock were reserved for future grant under the 2005 Directors Plan.

Other Assumed Stock Plans through Acquisitions. In connection with the Company’s acquisitions in fiscal 2008, fiscal 2010, fiscal 2012, fiscal 2014, and fiscal 2015, the Company assumed certain outstanding stock awards of acquired companies. If these assumed equity awards are canceled, forfeited or expire unexercised, the underlying shares do not become available for future grant. As of October 31, 2015, 0.6 million shares of the Company’s common stock remained subject to such outstanding assumed equity awards.

Restricted Stock Units. Since fiscal 2007, restricted stock units are granted under the 2006 Employee Plan as part of the Company’s new hire and annual incentive compensation program. Restricted stock units are valued based on the closing price of the Company’s common stock on the grant date. In general, restricted stock units vest over three to four years and are subject to the employee's continuing service with the Company. For each restricted stock unit granted under the 2006 Employee Plan, a share reserve ratio is applied for the purpose of determining the remaining number of shares reserved for future grants under the plan. On March 24, 2011, the Company's stockholders approved an amendment of the 2006 Employee Plan to prospectively change the reserve ratio from 2.18 to 1.25. On April 3, 2012, the stockholders approved amending the share reserve ratio from 1.25 to 1.50. On April 2, 2015, the stockholders approved amending the share reserve ratio from 1.50 to 1.60.

The following table contains information concerning activities related to restricted stock units:

	Restricted Stock Units		Weighted  Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (In Years)	Aggregate Fair Value
	(in thousands, except per share and life amounts)
Balance at October 31, 2012	3,920		$	27.18	1.52
Granted	1,680		$	35.27
Vested(1)	(1,476	)	$	25.35		$	52,234
Forfeited	(141	)	$	28.36
Balance at October 31, 2013	3,983		$	31.23	1.51
Granted	1,645		$	39.03
Vested(1)	(1,564	)	$	29.07		$	60,815
Forfeited	(117	)	$	32.95
Balance at October 31, 2014	3,947		$	35.29	1.53
Granted	1,707		$	48.13
Vested(1)	(1,522	)	$	33.05		$	73,677
Forfeited	(204	)	$	37.68
Balance at October 31, 2015	3,928		$	41.61	1.54

(1) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

The following table contains additional information concerning activities related to stock options and restricted stock units under all equity plans, other than shares available for grant under the 2005 Directors Plan:

	Available for Grant(3)		Options(2)
			Options Outstanding		Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value
	(in thousands, except per share and life amounts)
Balance at October 31, 2012	7,352		10,219		$	24.64	3.71	$	80,950
Options Granted	(1,704	)	1,704		$	34.10
Options Assumed(2)			158		$	23.60
Options Exercised			(4,173	)	$	24.34
Options Canceled/forfeited/expired	159		(182	)	$	24.17
Restricted stock units granted(1)	(2,519	)
Restricted stock units forfeited(1)	184
Additional shares reserved	5,000
Balance at October 31, 2013	8,472		7,726		$	26.87	4.30	$	71,700
Options Granted	(1,686	)	1,686		$	38.65
Options Assumed(2)			843		$	24.63
Options Exercised			(2,103	)	$	24.47
Options Canceled/forfeited/expired	163		(402	)	$	27.44
Restricted stock units granted(1)	(2,468	)
Restricted stock units forfeited(1)	174
Additional shares reserved	7,500
Balance at October 31, 2014	12,155		7,750		$	29.81	4.66	$	86,537
Options Granted	(1,908	)	1,942		$	45.14
Options Assumed(2)			133		$	38.97
Options Exercised			(2,125	)	$	26.06
Options Canceled/forfeited/expired	230		(411	)	$	33.51
Restricted stock units granted(1)	(2,707	)
Restricted stock units forfeited(1)	313
Additional shares reserved	3,800
Balance at October 31, 2015	11,883		7,289		$	34.94	4.67	$	109,627
Vested and expected to vest as of October 31, 2015			7,192		$	34.84	4.65	$	108,887
Exercisable at October 31, 2015			3,673		$	29.80	3.60	$	74,121

(1) These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above.

(2) The Company assumed options outstanding under various plans through acquisitions.

(3) Excluding shares reserved for future issuance under the 2005 Directors Plan.

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value based on stock options with an exercise price less than the Company’s closing stock price of $49.98 as of October 31, 2015. The pretax intrinsic value of options exercised and their average exercise prices were:

	Year Ended October 31,
	2015		2014		2013
	(in thousands, except per share price)
Intrinsic value	$	44,104	$	32,094	$	46,592
Average exercise price per share	$	26.06	$	24.47	$	24.34

Restricted stock award activities during fiscal 2015 under the 2005 Directors Plan are summarized as follows:

	Restricted Shares		Weighted-Average Grant Date Fair Value
	(in thousands, except per share)
Unvested at October 31, 2014	48		$	36.09
Granted	22		$	46.46
Vested	(25	)	$	34.76
Forfeited	—		$	—
Unvested at October 31, 2015	45		$	41.82

Valuation and Expense of Stock Compensation. The Company estimates the fair value of stock-based awards in the form of stock options and employee stock purchase rights under employee stock purchase plans on the grant date. The value of awards expected to vest is recognized as expense over the applicable service periods. The Company uses the straight-line attribution method to recognize stock compensation costs over the service period of the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options, stock appreciation rights and employee stock purchase plan awards. The Black-Scholes option-pricing model incorporates various subjective assumptions including expected volatility, expected term and interest rates. The expected volatility for both stock options and stock purchase rights under the ESPP is estimated by a combination of implied volatility for publicly traded options of the Company’s common stock with a term of six months or longer and the historical stock price volatility over the estimated expected term of the Company’s stock-based awards. The expected term of the Company’s stock-based awards is based on historical experience.

The assumptions presented in the following table were used to estimate the fair value of stock options and employee stock purchase rights granted under the Company’s stock plans or stock plans assumed from acquisitions:

	Year Ended October 31,
	2015	2014	2013
Stock Options
Expected life (in years)	4.3	4.5	4.7
Risk-free interest rate	1.24% - 1.58%	1.38% - 1.74%	0.62% - 1.66%
Volatility	16.92%-21.76%	18.38%-20.00%	20.61% - 26.47%
Weighted average estimated fair value	$8.77	$10.95	$7.29
ESPP
Expected life (in years)	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0
Risk-free interest rate	0.12% - 0.75%	0.05% - 0.58%	0.10% - 0.43%
Volatility	18.01% - 21.60%	16.84% - 18.78%	17.12% - 21.75%
Weighted average estimated fair value	$11.11	$9.17	$8.19

The following table presents stock compensation expense for fiscal 2015, 2014 and 2013, respectively:

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Cost of license	$	9,162		$	8,122		$	6,597
Cost of maintenance and service	2,164			2,336			1,628
Research and development expense	43,431			38,241			32,423
Sales and marketing expense	17,744			16,754			13,983
General and administrative expense	13,899			13,987			12,880
Stock compensation expense before taxes	86,400			79,440			67,511
Income tax benefit	(20,071		)	(18,224		)	(16,446		)
Stock compensation expense after taxes	$	66,329		$	61,216		$	51,065

As of October 31, 2015, the Company had $156.9 million of total unrecognized stock compensation expense relating to options and restricted stock units and awards, which is expected to be recognized over a weighted average period of 2.5 years.

The cash flows resulting from the tax benefits for tax deductions in excess of the compensation expense recorded for the stock awards (excess tax benefits) are classified as cash flows from financing activities. The Company recorded excess tax benefits of $4.2 million in fiscal 2015; no excess tax benefits were recorded in fiscal periods 2014 and 2013.

Deferred Compensation Plan. The Company maintains the Synopsys Deferred Compensation Plan (the Deferred Plan), which permits eligible employees to defer up to 50% of their annual cash base compensation and up to 100% of their eligible cash variable compensation. Amounts may be withdrawn from the Deferred Plan pursuant to elections made by the employees in accordance with the terms of the plan. Since the inception of the Deferred Plan, the Company has not made any matching or discretionary contributions to the Deferred Plan. There are no Deferred Plan provisions that provide for any guarantees or minimum return on investments. Undistributed amounts under the Deferred Plan are subject to the claims of the Company’s creditors. The securities held by the Deferred Plan are classified as trading securities.

Deferred Plan Assets and Liabilities are as follows:

	As of October 31, 2015		As of October 31, 2014
	(In thousands)
Plan assets recorded in other long-term assets	$	158,462	$	145,508
Plan liabilities recorded in other long-term liabilities(1)	$	158,462	$	145,508

(1) For undistributed deferred compensation balances due to participants.

Income or loss from the change in fair value of the Deferred Plan assets is recorded in other income (expense), net. The increase or decrease in the fair value of the undistributed Deferred Plan obligation is recorded in total cost of revenue and operating expense. The following table summarizes the impact of the Deferred Plan:

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Increase (reduction) to cost of revenue and operating expense	$	3,701	$	10,856	$	18,453
Other income (expense), net	3,701		10,856		18,453
Net increase (decrease) to net income	$	—	$	—	$	—

Other Retirement Plans. The Company sponsors various retirement plans for its eligible U.S. and non-U.S. employees. Total contributions to these plans were $40.0 million, $23.8 million and $21.3 million in fiscal 2015, 2014 and 2013, respectively. For employees in the United States and Canada, the Company matches pretax employee contributions up to a maximum of U.S. $3,000 and Canadian $4,000, respectively, per participant per year.

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Income Taxes

12 Months Ended

Oct. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The domestic and foreign components of the Company’s total income (loss) before provision for income taxes are as follows:

	Year Ended October 31,
	2015		2014			2013
	(in thousands)
United States	$	42,571	$	(7,638	)	$	61,818
Foreign	239,039		279,780			213,848
	$	281,610	$	272,142		$	275,666

The components of the (benefit) provision for income taxes were as follows:

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Current:
Federal	$	(21,911	)	$	(14,951	)	$	11,692
State	1,385			279			(5,949		)
Foreign	39,319			42,085			29,428
	18,793			27,413			35,171
Deferred:
Federal	44,462			(4,612		)	4,969
State	(2,282		)	(4,141		)	933
Foreign	(5,297		)	(5,642		)	(13,207		)
	36,883			(14,395		)	(7,305		)
Provision (Benefit) for income taxes	$	55,676		$	13,018		$	27,866

The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows:

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Statutory federal tax	$	98,564		$	95,251		$	96,483
State tax (benefit), net of federal effect	(4,764		)	(4,306		)	(2,697		)
Tax credits (1)	(13,301		)	(5,153		)	(24,972		)
Tax on foreign earnings less than U.S. statutory tax	(56,536		)	(61,376		)	(40,156		)
Deferred tax reversal resulting from merger of foreign affiliate	—			—			(6,808		)
Tax settlements	(6,251		)	(19,645		)	(1,130		)
Stock based compensation	5,406			5,675			4,671
Changes in valuation allowance	(216		)	(235		)	(776		)
Federal statute lapses	(2,265		)	(6,746		)	—
Integration of acquired technologies	33,015			4,715			3,486
Other	2,024			4,838			(235		)
	$	55,676		$	13,018		$	27,866

(1) As a result of the reinstatement of the U.S. federal research tax credit in fiscal 2013, the Company reflected a tax benefit of approximately $19.0 million in the above amount for the period January 1, 2012 through October 31, 2013. The credit expired on December 31, 2013, resulting in only two months of credit for fiscal 2014. The credit was reinstated in fiscal 2015, resulting in a tax benefit of approximately $12.4 million in the above amount for the period January 1 through December 31, 2014.

The significant components of deferred tax assets and liabilities were as follows:

	October 31,
	2015			2014
	(in thousands)
Net deferred tax assets:
Deferred tax assets:
Accruals and reserves	$	40,373		$	28,608
Deferred revenue	36,460			42,766
Deferred compensation	69,716			56,920
Capitalized costs	60,998			66,616
Capitalized research and development costs	24,748			32,710
Stock compensation	18,001			18,508
Tax loss carryovers	50,987			64,273
Foreign tax credit carryovers	1,064			18,846
Research and other tax credit carryovers	80,327			110,247
Other	5,340			4,689
Gross deferred tax assets	388,014			444,183
Valuation allowance	(48,700		)	(45,996		)
Total deferred tax assets	339,314			398,187
Deferred tax liabilities:
Intangible assets	66,345			81,218
Undistributed earnings of foreign subsidiaries	933			726
Total deferred tax liabilities	67,278			81,944
Net deferred tax assets	$	272,036		$	316,243

It is more likely than not that the results of future operations will be able to generate sufficient taxable income to realize the net deferred tax assets. The valuation allowance provided against our deferred tax assets as of October 31, 2015 is mainly attributable to California research credit and international foreign tax credit carryforwards. The valuation allowance increased by a net of $2.7 million in fiscal 2015 due to changes in corresponding deferred tax assets primarily related to California research credit carryforwards.

The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities:

Carryforward	Amount		Expiration Date
	(in thousands)
Federal net operating loss carryforward	$	108,533	2016-2034
Federal research credit carryforward	120,243		2019-2035
Federal foreign tax credit carryforward	4,586		2017-2023
International foreign tax credit carryforward	10,104		Indefinite
California research credit carryforward	135,858		Indefinite
Other state research credit carryforward	5,395		2016-2030
State net operating loss carryforward	217,914		2016-2035

The federal and state net operating loss carryforward is from acquired companies and the annual use of such loss is subject to significant limitations under Internal Revenue Code Section 382. Foreign tax credits may only be used to offset tax attributable to foreign source income. The federal research tax credit expired as of December 31, 2014.

The Company has unrecognized deferred tax assets of approximately $83.3 million as of October 31, 2015 attributable to excess tax deductions related to stock options, the benefit of which will be credited to stockholders' equity when realized.

The Company has not provided taxes for undistributed earnings of its foreign subsidiaries except to the extent that the Company does not plan to reinvest such earnings indefinitely outside the United States. If the cumulative foreign earnings exceed the amount the Company intends to reinvest in foreign country operations in the future, the Company would provide for taxes on such excess amount. As of October 31, 2015, there were approximately $1,047.5 million of earnings upon which U.S. income taxes of approximately $232.0 million have not been provided for.

The gross unrecognized tax benefits increased by approximately $8.0 million during fiscal 2015 resulting in gross unrecognized tax benefits of $132.1 million as of October 31, 2015. A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows:

	As of October 31, 2015			As of October 31, 2014
	(in thousands)
Beginning balance	$	124,102		$	117,760
Increases in unrecognized tax benefits related to prior year tax positions	10,922			2,037
Decreases in unrecognized tax benefits related to prior year tax positions	(7,526		)	(23,271		)
Increases in unrecognized tax benefits related to current year tax positions	13,232			35,277
Decreases in unrecognized tax benefits related to settlements with taxing authorities	—			(1,858		)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(5,996		)	(8,816		)
Increases in unrecognized tax benefits acquired	976			3,575
Changes in unrecognized tax benefits due to foreign currency translation	(3,656		)	(602		)
	$	132,054		$	124,102

As of October 31, 2015 and 2014, approximately $129.4 million and $120.5 million, respectively, of the unrecognized tax benefits would affect our effective tax rate if recognized upon resolution of the uncertain tax positions.

Interest and penalties related to estimated obligations for tax positions taken in the Company’s tax returns are recognized as a component of income tax expense (benefit) in the consolidated statements of operations and totaled approximately $0.6 million,$0.5 million and $0.2 million for fiscal years 2015, 2014 and 2013, respectively. As of October 31, 2015 and 2014, the combined amount of accrued interest and penalties related to tax positions taken on the Company’s tax returns was approximately $2.2 million and $1.3 million, respectively.

The timing of the resolution of income tax examinations is highly uncertain as well as the amounts and timing of various tax payments that are part of the settlement process. This could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. The Company believes that in the coming 12 months, it is reasonably possible that either certain audits will conclude or the statute of limitations on certain state and foreign income and withholding taxes will expire, or both. Given the uncertainty as to ultimate settlement terms, the timing of payment and the impact of such settlements on other uncertain tax positions, the range of the estimated potential decrease in underlying unrecognized tax benefits is between $0 and $36 million.

The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions:

Jurisdiction	Year(s) Subject to Examination
United States—Synopsys	Fiscal 2015
United States—Magma Design Automation	Fiscal 2012
California—Synopsys	Fiscal years after 2010
California—Magma Design Automation	Fiscal years after 2010
Hungary	Fiscal years after 2008
Ireland, Japan, and Taiwan	Fiscal years after 2009

In addition, the Company has made acquisitions with operations in several of its significant jurisdictions which may have years subject to examination different from the years indicated in the above table.

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

IRS Examinations

In the third quarter of fiscal 2015, the Company reached final settlement with the Examination Division of the IRS on the integration of acquired technologies for fiscal 2015 and research tax credit for fiscal 2014. In the fourth quarter of fiscal 2015, the Company reached final settlement with the IRS on the remaining fiscal 2015 issues.

In the first quarter of fiscal 2014, the Company reached final settlement with the IRS on the remaining fiscal 2012 issues and recognized approximately $10.0 million in unrecognized tax benefits. In the fourth quarter of fiscal 2014, the Company reached final settlement with the IRS for its audit of fiscal 2013 and recognized approximately $5.5 million in unrecognized tax benefits.

In the third and fourth quarters of fiscal 2013, the Company reached settlement with the IRS for its audit of certain fiscal 2012 issues, which resulted in a decrease in unrecognized tax benefits of $6.0 million, decrease in deferred tax assets of $4.9 million and a $1.1 million net tax benefit.

Non-U.S. Examinations

Taiwan

In the first quarter of fiscal 2015, the Company reached final settlement with the Taiwan tax authorities for fiscal 2012 with regard to certain transfer pricing issues. As a result of the settlement, the Company recognized approximately $1.1 million in unrecognized tax benefits. In the fourth quarter of fiscal 2015, the Company reached final settlement with the Taiwan tax authorities for fiscal 2013 with regard to certain transfer pricing issues. As a result of the settlement and the application of the settlement to fiscal 2014, the Company's unrecognized tax benefits decreased by $1.2 million and $1.2 million, respectively.

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

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Other Income (Expense), Net

12 Months Ended

Oct. 31, 2015

Other Income and Expenses [Abstract]

Other Income (Expense), Net

Other Income (Expense), Net

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

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Interest income	$	2,785		$	1,302		$	1,891
Interest expense	(2,814		)	(1,895		)	(1,696		)
Gain (loss) on assets related to deferred compensation plan	3,701			10,856			18,453
Foreign currency exchange gain (loss)	6,363			1,195			6,026
Other, net(1)	5,109			11,967			4,499
Total	$	15,144		$	23,425		$	29,173

(1) See Note 6. Fair Value Measures.

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Segment Disclosure

12 Months Ended

Oct. 31, 2015

Segment Reporting [Abstract]

Segment Disclosure

Segment Disclosure

ASC 280, Segment Reporting, requires disclosures of certain information regarding operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers.

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

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Revenue:
United States	$	1,143,816	$	1,020,654	$	939,749
Europe	300,352		272,911		273,041
Japan	218,794		238,588		264,141
Asia Pacific and Other	579,249		525,319		485,283
Consolidated	$	2,242,211	$	2,057,472	$	1,962,214

	As of October 31,
	2015		2014
	(in thousands)
Property and Equipment, net:
United States	$	192,075	$	181,019
Other countries	71,002		68,079
Total	$	263,077	$	249,098

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

One customer, in the aggregate, accounted for 12.8%, 10.5%, and 11.3% of the Company’s consolidated revenue in fiscal 2015, 2014 and 2013, respectively.

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Effect of New Accounting Pronouncements

12 Months Ended

Oct. 31, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Effect of New Accounting Pronouncements

Effect of New Accounting Pronouncements

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

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

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Supplementary Data - Selected Unaudited Quarterly Financial Data

12 Months Ended

Oct. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Supplementary Data - Selected Unaudited Quarterly Financial Data

Supplementary Data - Selected Unaudited Quarterly Financial Data

The table below includes certain unaudited financial information for the last eight fiscal quarters. Refer to Note 2 of Notes to Consolidated Financial Statements for information on our fiscal year end.

	Quarter Ended
	January 31,		April 30,		July 31,		October 31,
	(in thousands, except per share data)
2015
Revenue	$	542,043	$	557,204	$	555,805	$	587,159
Gross margin	417,410		432,232		426,334		447,315
Income before provision for income taxes	76,615		83,884		65,193		55,918
Net income	65,189		55,596		55,387		49,762
Net income per share
Basic	$	0.42	$	0.36	$	0.36	$	0.32
Diluted	0.41		0.35		0.35		0.31
2014
Revenue	$	478,951	$	517,697	$	521,812	$	539,012
Gross margin	373,102		403,612		406,282		417,591
Income before provision for income taxes	71,184		68,059		70,771		62,128
Net income	67,696		63,317		65,656		62,455
Net income per share
Basic	$	0.44	$	0.41	$	0.42	$	0.40
Diluted	0.43		0.40		0.42		0.39

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Oct. 31, 2015

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Effect of New Accounting Pronouncements

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

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

Fiscal Year End

Fiscal Year End. The Company’s fiscal year ends on the Saturday nearest to October 31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. Fiscal 2015, 2014, and 2013 were 52-week years ending on October 31, 2015, November 1, 2014, and November 2, 2013, respectively. For presentation purposes, the consolidated financial statements and accompanying notes refer to the closest calendar month end.

Principles of Consolidation

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

Use of Estimates

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

Foreign Currency Translation

Foreign Currency Translation. The functional currency of the majority of the Company’s active foreign subsidiaries is the foreign subsidiary’s local currency. Assets and liabilities that are not denominated in the functional currency are remeasured into the functional currency with any related gain or loss recorded in earnings. The Company translates assets and liabilities of its non-U.S. dollar functional currency foreign operations into the U.S. dollar reporting currency at exchange rates in effect at the balance sheet date. The Company translates income and expense items of such foreign operations into U.S. dollars reporting currency at average exchange rates for the period. Accumulated translation adjustments are reported in stockholders’ equity, as a component of accumulated other comprehensive income (loss).

Foreign Currency Contracts

Foreign Currency Contracts. The Company operates internationally and is exposed to potentially adverse movements in currency exchange rates. The Company enters into hedges in the form of foreign currency forward contracts to reduce its exposure to foreign currency rate changes on non-functional currency denominated forecasted transactions and balance sheet positions. The assets or liabilities associated with the forward contracts are recorded at fair value in other current assets or accrued liabilities in the consolidated balance sheet.

The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. See Note 5. Financial Assets and Liabilities.

Fair Values of Financial Instruments

Fair Values of Financial Instruments. The Company’s cash equivalents, short-term investments and foreign currency contracts are carried at fair value. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. Non-marketable equity securities are carried at cost, net of impairments. The Company performs periodic impairment analysis over these non-marketable equity securities. The carrying amount of the short-term and long-term debt approximates the estimated fair value. See Note 6. Fair Value Measures.

Cash, Cash Equivalents and Short-term Investments

Cash, Cash Equivalents and Short-term Investments. The Company classifies investments with original maturities of three months or less when acquired as cash equivalents. All of the Company’s short-term investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses included in stockholders’ equity as a component of accumulated other comprehensive income (loss), net of tax. Those unrealized gains or losses deemed other than temporary are reflected in other income (expense), net. The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net. See Note 5. Financial Assets and Liabilities.

Concentration of Credit Risk

Concentration of Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign currency contracts, and accounts receivable from trade customers. The Company maintains cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U.S. and in various overseas locations.

The Company sells its products worldwide primarily to customers in the global electronics market. The Company performs on-going credit evaluations of its customers’ financial condition and does not require collateral. The Company establishes reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains allowances for doubtful accounts to reduce the Company’s receivables to their estimated net realizable value. The Company provides a general reserve on all accounts receivable based on a review of customer accounts. The following table presents the changes in the allowance for doubtful accounts:

Fiscal Year	Balance at Beginning of Period		Provisions			Write-offs(1)			Balance at End of Period
	(in thousands)
2015	$	2,026	$	1,300		$	(765	)	$	2,561
2014	$	4,253	$	(1,250	)	$	(977	)	$	2,026
2013	$	6,072	$	102		$	(1,921	)	$	4,253

(1) Balances written off, net of recoveries.

Income Taxes

Income Taxes. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied.

Property and Equipment

Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Assets, excluding land, are depreciated using the straight-line method over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over the remaining term of the lease or the economic useful life of the asset, whichever is shorter. Depreciation expenses were $71.1 million, $63.1 million and $56.7 million in fiscal 2015, 2014 and 2013, respectively. Repair and maintenance costs are expensed as incurred and such costs were $32.3 million, $28.7 million and $26.3 million in fiscal 2015, 2014 and 2013, respectively.

A summary of property and equipment, at cost less accumulated depreciation and amortization, as of October 31, 2015 and 2014 is as follows:

	October 31,
	2015			2014
	(in thousands)
Computer and other equipment	$	436,425		$	419,951
Buildings	67,943			68,871
Furniture and fixtures	50,075			41,089
Land	20,414			20,414
Leasehold improvements	142,275			136,513
	717,132			686,838
Less accumulated depreciation and amortization(1)	(454,055		)	(437,740		)
Total	$	263,077		$	249,098

(1) Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets.

The useful lives of depreciable assets are as follows:

	Useful Life in Years
Computer and other equipment	3-5
Buildings	30
Furniture and fixtures	5
Leasehold improvements (average)	5

Goodwill

Goodwill. Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment annually as of October 31 or more frequently if facts and circumstances warrant a review. The Company determined that it is a single reporting unit for the purpose of goodwill impairment tests. For purposes of assessing the impairment of goodwill, the Company estimates the value of the reporting unit using its market capitalization as the best evidence of fair value. This fair value is then compared to the carrying value of the reporting unit. During fiscal 2015, 2014 and 2013, there were no indicators of impairment to goodwill.

Intangible Assets

Intangible Assets. Intangible assets consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, covenants not to compete, capitalized software, and in-process research and development. These intangible assets are either acquired through business combinations, direct purchases, or internally developed capitalized software. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from one to ten years.

The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment and intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such asset group will be recovered through the undiscounted future cash flow. If the undiscounted future cash flow is less than the carrying amount of the asset group, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the asset group. The Company had no impairments of any long-lived assets in fiscal 2015, 2014 or 2013.

Restructuring Charges

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

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss). Other comprehensive income (loss) (OCI) includes all changes in equity during a period, such as accumulated net translation adjustments, unrealized gain (loss) on certain foreign currency forward contracts that qualify as cash flow hedges, reclassification adjustments related to cash flow hedges and unrealized gain (loss) on investments. See Note 8. Accumulated Other Comprehensive Income (Loss).

Revenue Recognition

Revenue Recognition. The Company derives revenue from the sale of software license arrangements. Software license revenue consists of fees associated with the licensing of the Company’s software licenses, maintenance and professional services and to a small extent, hardware products. Maintenance and professional service revenue consists of maintenance fees associated with perpetual and term licenses and professional services fees. Hardware revenue consists of sales of Field Programmable Gate Array (FPGA)-based emulation and prototyping products.

With respect to software licenses, the Company utilizes three license types:

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

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

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

For the three software license types, the Company recognizes revenue as follows:

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

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

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

The Company's maintenance and service revenue consists of maintenance fees associated with perpetual and term software licenses and professional services fees. The Company recognizes revenue from maintenance arrangements ratably over the maintenance period to the extent cash has been received or fees become due and payable, and recognize revenue from professional services and training fees as such services are performed and accepted by the customer. Revenue attributable to maintenance, professional services and training is reported as “maintenance and service revenue” in the consolidated statements of operations.

Hardware revenue consists of sales of FPGA-based emulation and prototyping products. The Company recognizes revenue from sales of hardware products in full upon shipment if all other revenue recognition criteria are met. Revenue attributable to these sales is reported as “upfront license revenue” in the consolidated statements of operations and is not material to the Company's total revenue.

The Company also enters into arrangements in which portions of revenue are contingent upon the occurrence of uncertain future events, for example, royalty arrangements. The Company refers to this revenue as “contingent revenue.” Contingent revenue is recognized if and when the applicable event occurs. Such revenue is reported as “time-based license revenue” in the consolidated statements of operations. Historically, these arrangements have not been material to the Company’s total revenue.

The Company infrequently enters into multiple-element arrangements that contain both software and non-software deliverables such as hardware. The Company has determined that the software and non-software deliverables in the Company’s contracts are separate units of accounting. The Company recognizes revenue for the separate units of accounting when all revenue recognition criteria are met. Revenue allocated to hardware units of accounting is recognized upon shipment when all other revenue recognition criteria are met. Revenue allocated to software units of accounting is recognized according to the methods described above depending on the software license type (TSL, term license or perpetual license). Such arrangements have not had a material effect on the Company’s consolidated financial statements and are not expected to have a material effect in future periods.

The Company also enters into arrangements to deliver software products, either alone or together with other products or services that require significant modification, or customization of the software. The Company accounts for such arrangements using the percentage of completion method as the Company has the ability to make reasonably dependable estimates that relate to the extent of progress toward completion, contract revenues and costs. The Company measures the progress towards completion using the labor hours incurred to complete the project. Revenue attributable to these arrangements is reported as “maintenance and service revenue” in the consolidated statements of operations.

The Company determines the fair value of each element in multiple element software arrangements that contain only software and software related deliverables based on vendor-specific objective evidence (VSOE). The Company limits assessment of VSOE of fair value for each element to the price charged when such element is sold separately. The Company has analyzed all of the elements included in multiple-element software arrangements and has determined that the Company has sufficient VSOE to allocate revenue to the maintenance components of the Company’s perpetual and term license products and to professional services. Accordingly, assuming all other revenue recognition criteria are met, the Company recognizes license revenue from perpetual and term licenses upon delivery using the residual method, recognizes revenue from maintenance ratably over the maintenance term, and recognizes revenue from professional services as services are performed and accepted by the customer. The Company recognizes revenue from TSLs ratably over the term of the license, assuming all other revenue recognition criteria are met, since there is not sufficient VSOE to allocate the TSL fee between license and maintenance services.

The Company makes judgments related to revenue recognition. Specifically, in connection with each transaction involving the Company’s products, the Company must evaluate whether: (1) persuasive evidence of an arrangement exists, (2) delivery of software or services has occurred, (3) the fee for such software or services is fixed or determinable, and (4) collectability of the full license or service fee is probable. All four of these criteria must be met in order for the Company to recognize revenue with respect to a particular arrangement. The Company applies these revenue recognition criteria as follows:

• Persuasive Evidence of an Arrangement Exists. Prior to recognizing revenue on an arrangement, the Company’s customary policy is to have a written contract, signed by both the customer and by the Company or a purchase order from those customers that have previously negotiated a standard end-user license arrangement or purchase agreement.

• Delivery Has Occurred. The Company delivers its products to its customers electronically or physically. For electronic deliveries, delivery occurs when the Company provides access to its customers to take immediate possession of the software through downloading it to the customer’s hardware. For physical deliveries, the standard transfer terms are typically Freight on Board (FOB) shipping point. The Company generally ships its products or license keys promptly after acceptance of customer orders. However, a number of factors can affect the timing of product shipments and, as a result, timing of revenue recognition, including the delivery dates requested by customers and the Company's operational capacity to fulfill product orders at the end of a fiscal quarter.

• The Fee is Fixed or Determinable. The Company’s determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. The Company’s standard payment terms for perpetual and term licenses require 75% or more of the license fee and 100% of the maintenance fee to be paid within one year. If the arrangement includes these terms, the Company regards the fee as fixed or determinable, and recognizes all license revenue under the arrangement in full upon delivery (assuming all other revenue recognition criteria are met). If the arrangement does not include these terms, the Company does not consider the fee to be fixed or determinable and generally recognizes revenue when customer installments are due and payable. In the case of a TSL, because of the right to exchange products or receive unspecified future technology and because VSOE for maintenance services does not exist for a TSL, the Company recognizes revenue ratably over the term of the license, but not in advance of when customers’ installments become due and payable.

• Collectability is Probable. The Company judges collectability of the arrangement fees on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a history of successful collection. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position and ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is not probable under a particular arrangement based upon its credit review process or the customer’s payment history, the Company recognizes revenue under that arrangement as customer payments are actually received.

Warranties and Indemnities

Warranties and Indemnities. The Company generally warrants its products to be free from defects in media and to substantially conform to material specifications for a period of 90 days for software products and for up to six months for hardware systems. In certain cases, the Company also provides its customers with limited indemnification with respect to claims that their use of the Company’s software products infringe on United States patents, copyrights, trademarks or trade secrets. The Company is unable to estimate the potential impact of these commitments on the future results of operations. To date, the Company has not been required to pay any material warranty claims.

Net Income Per Share

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

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

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Numerator:
Net income	$	225,934	$	259,124	$	247,800
Denominator:
Weighted average common shares for basic net income per share	154,957		155,054		153,319
Dilutive effect of common share equivalents from equity—based compensation	3,108		2,656		3,282
Weighted average common shares for diluted net income per share	158,065		157,710		156,601
Net income per share:
Basic	$	1.46	$	1.67	$	1.62
Diluted	$	1.43	$	1.64	$	1.58
Anti-dilutive employee stock-based awards excluded(1)	1,363		2,196		1,326

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

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Oct. 31, 2015

Accounting Policies [Abstract]

Changes in Allowance for Doubtful Accounts

The following table presents the changes in the allowance for doubtful accounts:

Fiscal Year	Balance at Beginning of Period		Provisions			Write-offs(1)			Balance at End of Period
	(in thousands)
2015	$	2,026	$	1,300		$	(765	)	$	2,561
2014	$	4,253	$	(1,250	)	$	(977	)	$	2,026
2013	$	6,072	$	102		$	(1,921	)	$	4,253

(1) Balances written off, net of recoveries.

Components of Property and Equipment

A summary of property and equipment, at cost less accumulated depreciation and amortization, as of October 31, 2015 and 2014 is as follows:

	October 31,
	2015			2014
	(in thousands)
Computer and other equipment	$	436,425		$	419,951
Buildings	67,943			68,871
Furniture and fixtures	50,075			41,089
Land	20,414			20,414
Leasehold improvements	142,275			136,513
	717,132			686,838
Less accumulated depreciation and amortization(1)	(454,055		)	(437,740		)
Total	$	263,077		$	249,098

(1) Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets.

Useful Lives of Depreciable Assets

The useful lives of depreciable assets are as follows:

	Useful Life in Years
Computer and other equipment	3-5
Buildings	30
Furniture and fixtures	5
Leasehold improvements (average)	5

Components of Accounts Payable and Accrued Liabilities

Accounts Payable and Accrued Liabilities. The balance consists of:

	October 31,
	2015		2014
	(in thousands)
Payroll and related benefits	$	315,078	$	302,295
Other accrued liabilities	60,545		66,666
Accounts payable	9,919		28,152
Total	$	385,542	$	397,113

Components of Other Long Term Liabilities

Other Long-term Liabilities. The balance consists of:

	October 31,
	2015		2014
	(in thousands)
Deferred compensation liability (See Note 10)	$	158,462	$	145,508
Other long-term liabilities	43,559		13,464
Total	$	202,021	$	158,972

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

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

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Numerator:
Net income	$	225,934	$	259,124	$	247,800
Denominator:
Weighted average common shares for basic net income per share	154,957		155,054		153,319
Dilutive effect of common share equivalents from equity—based compensation	3,108		2,656		3,282
Weighted average common shares for diluted net income per share	158,065		157,710		156,601
Net income per share:
Basic	$	1.46	$	1.67	$	1.62
Diluted	$	1.43	$	1.64	$	1.58
Anti-dilutive employee stock-based awards excluded(1)	1,363		2,196		1,326

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

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Oct. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill

Goodwill:

	(in thousands)
Balance at October 31, 2013	$	1,975,971
Additions	290,379
Effect of foreign currency translation	(10,642		)
Balance at October 31, 2014	$	2,255,708
Additions	233,989
Adjustments	684
Effect of foreign currency translation	(19,140		)
Balance at October 31, 2015(1)	$	2,471,241

(1) There is no accumulated impairment of goodwill for periods presented.

Summary of Intangible Assets

Intangible assets as of October 31, 2015 consist of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	584,293	$	375,395	$	208,898
Customer relationships	231,908		115,170		116,738
Contract rights intangible	165,623		141,763		23,860
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	20,729		10,665		10,064
Capitalized software development costs	25,511		21,412		4,099
Total	$	1,030,594	$	666,935	$	363,659

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

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	490,242	$	298,705	$	191,537
Customer relationships	210,172		92,146		118,026
Contract rights intangible	146,364		109,067		37,297
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	18,779		7,765		11,014
In-process research and development (IPR&D)(1)	3,086		—		3,086
Capitalized software development costs	21,829		17,759		4,070
Total	$	893,002	$	527,972	$	365,030

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

Amortization Expense Related to Intangible Assets

Amortization expense related to intangible assets consisted of the following:

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Core/developed technology	$	76,674	$	70,675	$	68,781
Customer relationships	23,104		22,470		21,394
Contract rights intangible	33,350		30,615		35,538
Covenants not to compete	—		50		126
Trademarks and trade names	2,900		2,309		1,663
Capitalized software development costs(1)	3,653		3,581		3,222
Total	$	139,681	$	129,700	$	130,724

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

Estimated Future Amortization of Intangible Assets

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

Fiscal Year	(in thousands)
2016	$	126,865
2017	87,586
2018	62,736
2019	39,729
2020	28,334
2021 and thereafter	18,409
Total	$	363,659

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Financial Assets and Liabilities (Tables)

12 Months Ended

Oct. 31, 2015

Financial Assets And Liabilities [Abstract]

Summary of Available-for-Sale Securities

During the first quarter of fiscal 2015, the Company made investments in available-for-sale securities. As of October 31, 2015, the balances of our available-for-sale securities and non-marketable equity securities investments are:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Continuous Months			Gross Unrealized Losses 12 Continuous Months or Longer		Estimated Fair Value(1)
	(in thousands)
Cash equivalents:
Money market funds	$	233,839	$	—	$	—		$	—	$	233,839
Commercial paper	1,834		—		—			—		1,834
Certificates of deposit	3,500		—		—			—		3,500
Asset-backed securities	300		—		(1		)	—		299
Total:	$	239,473	$	—	$	(1	)	$	—	$	239,472
Short-term investments:
U.S. government agency securities	$	12,615	$	3	$	(4	)	$	—	$	12,614
Municipal bonds	1,403		1		(1		)	—		1,403
Certificates of deposit	9,800		—		—			—		9,800
Commercial paper	12,129		—		—			—		12,129
Corporate debt securities	67,201		27		(40		)	—		67,188
Asset-backed securities	24,619		2		(13		)	—		24,608
Non-U.S. government agency securities	1,007		—		(2		)	—		1,005
Total:	$	128,774	$	33	$	(60	)	$	—	$	128,747
Other long-term assets:
Non-marketable equity securities	$	10,277	$	—	$	—		$	—	$	10,277
Total:	$	10,277	$	—	$	—		$	—	$	10,277

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

As of October 31, 2014, the balances of our cash equivalents and non-marketable equity securities investments are:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Continuous Months		Gross Unrealized Losses 12 Continuous Months or Longer		Estimated Fair Value(1)
	(in thousands)
Cash equivalents:
Money market funds	$	409,064	$	—	$	—	$	—	$	409,064
Total:	$	409,064	$	—	$	—	$	—	$	409,064
Other long-term assets:
Non-marketable equity securities	$	10,869	$	—	$	—	$	—	$	10,869
Total:	$	10,869	$	—	$	—	$	—	$	10,869

(1) See Note 6. Fair Value Measures for further discussion on fair values of money market funds and non-marketable equity securities.

Maturities of Available-for-Sale securities

As of October 31, 2015, the stated maturities of the Company's available-for-sale securities are:

	Amortized Cost		Fair Value
	(in thousands)
Due in 1 year or less	$	76,774	$	76,784
Due in 2-5 years	51,908		51,871
Due in 6-10 years	92		92
Total	$	128,774	$	128,747

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

The effects of the changes in the fair values of non-designated forward contracts for fiscal years 2015, 2014 and 2013 are summarized as follows:

	October 31,
	2015			2014			2013
	(in thousands)
Gain (loss) recorded in other income (expense), net	$	(5,554	)	$	(3,301	)	$	3,009

Notional Amounts of Derivative Instruments

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

	As of October 31, 2015			As of October 31, 2014
	(in thousands)
Total gross notional amount	$	781,752		$	793,937
Net fair value	$	(3,819	)	$	(2,455	)

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

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

	Fair Values of derivative instruments designated as hedging instruments		Fair Values of derivative instruments not designated as hedging instruments
	(in thousands)
As of October 31, 2015
Other current assets	$	6,461	$	1
Accrued liabilities	$	10,141	$	140
As of October 31, 2014
Other current assets	$	9,299	$	1
Accrued liabilities	$	11,656	$	99

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

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

	Location of gain (loss) recognized in OCI on derivatives	Amount of gain (loss) recognized in  OCI on derivatives (effective portion)			Location of gain (loss) reclassified  from OCI	Amount of gain (loss) reclassified  from OCI (effective  portion)
	(in thousands)
Fiscal year ended October 31, 2015
Foreign exchange contracts	Revenue	$	3,982		Revenue	$	9,270
Foreign exchange contracts	Operating expenses	(22,605		)	Operating expenses	(24,193		)
Total		$	(18,623	)		$	(14,923	)
Fiscal year ended October 31, 2014
Foreign exchange contracts	Revenue	$	5,395		Revenue	$	2,339
Foreign exchange contracts	Operating expenses	(10,896		)	Operating expenses	1,543
Total		$	(5,501	)		$	3,882
Fiscal year ended October 31, 2013
Foreign exchange contracts	Revenue	$	2,427		Revenue	$	7,457
Foreign exchange contracts	Operating expenses	3,680			Operating expenses	(892		)
Total		$	6,107			$	6,565

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

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

Foreign exchange contracts	Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)(1)			Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)(2)
	(in thousands)
Fiscal year ended October 31, 2015	$	878		$	3,704
Fiscal year ended October 31, 2014	$	(302	)	$	3,259
Fiscal year ended October 31, 2013	$	293		$	2,518

(1) The ineffective portion includes forecast inaccuracies.

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

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Fair Value Measures (Tables)

12 Months Ended

Oct. 31, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

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

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets  for Identical Assets (Level  1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	233,839	$	233,839	$	—	$	—
Commercial paper	1,834		—		1,834		—
Certificates of deposit	3,500		—		3,500		—
Asset-backed securities	299		—		299		—
Short-term investments:
U.S. government agency securities	12,614		—		12,614		—
Municipal bonds	1,403		—		1,403		—
Certificates of deposit	9,800		—		9,800		—
Commercial paper	12,129		—		12,129		—
Corporate debt securities	67,188		—		67,188		—
Asset-backed securities	24,608		—		24,608		—
Non-U.S. government agency securities	1,005		—		1,005		—
Prepaid and other current assets:
Foreign currency derivative contracts	6,462		—		6,462		—
Other long-term assets:
Deferred compensation plan assets	158,462		158,462		—		—
Total assets	$	533,143	$	392,301	$	140,842	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	10,281	$	—	$	10,281	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	158,462		158,462		—		—
Total liabilities	$	168,743	$	158,462	$	10,281	$	—

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

Description	Total		Fair Value Measurement Using
			Quoted Prices in  Active Markets  for Identical Assets (Level  1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	409,064	$	409,064	$	—	$	—
Prepaid and other current assets:
Foreign currency derivative contracts	9,300		—		9,300		—
Other long-term assets:
Deferred compensation plan assets	145,508		145,508		—		—
Total assets	$	563,872	$	554,572	$	9,300	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	11,755	$	—	$	11,755	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	145,508		145,508		—		—
Total liabilities	$	157,263	$	145,508	$	11,755	$	—

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Commitments and Contingencies (Tables)

12 Months Ended

Oct. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Minimum Lease Commitments

nticipated future minimum lease payments on all non-cancellable operating leases with a term in excess of one year, net of sublease income are as follows:

	Minimum Lease Payments		Sublease Income		Net
	(in thousands)
Fiscal Year
2016	$	52,266	$	2,579	$	49,687
2017	47,695		2,063		45,632
2018	40,979		2,120		38,859
2019	35,469		2,179		33,290
2020	25,501		2,239		23,262
Thereafter	164,731		4,432		160,299
Total	$	366,641	$	15,612	$	351,029

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Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Oct. 31, 2015

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

Components of Accumulated Other Comprehensive Income (Loss)

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

	Year Ended October 31,
	2015			2014
	(in thousands)
Cumulative currency translation adjustments	$	(90,508	)	$	(50,941	)
Unrealized gain (loss) on derivative instruments, net of taxes	(14,839		)	(11,148		)
Unrealized gain (loss) on available-for-sale securities, net of taxes	(28		)	—
Total accumulated other comprehensive income (loss)	$	(105,375	)	$	(62,089	)

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

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

	Year Ended October 31,
	2015			2014		2013
	(in thousands)
Reclassifications from accumulated other comprehensive income (loss) into consolidated statement of operations:
Gain (loss) on cash flow hedges, net of taxes
Revenues	$	9,270		$	2,339	$	7,457
Operating expenses	(24,193		)	1,543		(892		)
Gain (loss) on available-for-sale securities
Other income (expense)	41			—		—
Total reclassifications into net income	$	(14,882	)	$	3,882	$	6,565

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Stock Repurchase Program (Tables)

12 Months Ended

Oct. 31, 2015

Stock Repurchase Program [Abstract]

Stock Repurchase And Reissuance Activities

The following table summarizes stock repurchase activities as well as the reissuance of treasury stock for employee stock compensation purposes:

	Year Ended October 31,
	2015		2014		2013
	(in thousands, except per share price)
Shares repurchased	5,672		3,092		3,996
Average purchase price per share	$	45.84	$	38.72	$	36.29
Aggregate purchase price(1)	$	260,000	$	119,747	$	145,016
Reissuance of treasury stock	4,864		4,888		7,266

(1) Does not include $20.0 million equity forward contract related to the above-referenced August 2015 ASR.

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Employee Benefit Plans (Tables)

12 Months Ended

Oct. 31, 2015

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

Restricted Stock Units

The following table contains information concerning activities related to restricted stock units:

	Restricted Stock Units		Weighted  Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (In Years)	Aggregate Fair Value
	(in thousands, except per share and life amounts)
Balance at October 31, 2012	3,920		$	27.18	1.52
Granted	1,680		$	35.27
Vested(1)	(1,476	)	$	25.35		$	52,234
Forfeited	(141	)	$	28.36
Balance at October 31, 2013	3,983		$	31.23	1.51
Granted	1,645		$	39.03
Vested(1)	(1,564	)	$	29.07		$	60,815
Forfeited	(117	)	$	32.95
Balance at October 31, 2014	3,947		$	35.29	1.53
Granted	1,707		$	48.13
Vested(1)	(1,522	)	$	33.05		$	73,677
Forfeited	(204	)	$	37.68
Balance at October 31, 2015	3,928		$	41.61	1.54

(1) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

Stock Options and Restricted Stock Units Under all Equity Plans (Except 2005 Directors Plan)

The following table contains additional information concerning activities related to stock options and restricted stock units under all equity plans, other than shares available for grant under the 2005 Directors Plan:

	Available for Grant(3)		Options(2)
			Options Outstanding		Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value
	(in thousands, except per share and life amounts)
Balance at October 31, 2012	7,352		10,219		$	24.64	3.71	$	80,950
Options Granted	(1,704	)	1,704		$	34.10
Options Assumed(2)			158		$	23.60
Options Exercised			(4,173	)	$	24.34
Options Canceled/forfeited/expired	159		(182	)	$	24.17
Restricted stock units granted(1)	(2,519	)
Restricted stock units forfeited(1)	184
Additional shares reserved	5,000
Balance at October 31, 2013	8,472		7,726		$	26.87	4.30	$	71,700
Options Granted	(1,686	)	1,686		$	38.65
Options Assumed(2)			843		$	24.63
Options Exercised			(2,103	)	$	24.47
Options Canceled/forfeited/expired	163		(402	)	$	27.44
Restricted stock units granted(1)	(2,468	)
Restricted stock units forfeited(1)	174
Additional shares reserved	7,500
Balance at October 31, 2014	12,155		7,750		$	29.81	4.66	$	86,537
Options Granted	(1,908	)	1,942		$	45.14
Options Assumed(2)			133		$	38.97
Options Exercised			(2,125	)	$	26.06
Options Canceled/forfeited/expired	230		(411	)	$	33.51
Restricted stock units granted(1)	(2,707	)
Restricted stock units forfeited(1)	313
Additional shares reserved	3,800
Balance at October 31, 2015	11,883		7,289		$	34.94	4.67	$	109,627
Vested and expected to vest as of October 31, 2015			7,192		$	34.84	4.65	$	108,887
Exercisable at October 31, 2015			3,673		$	29.80	3.60	$	74,121

(1) These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above.

(2) The Company assumed options outstanding under various plans through acquisitions.

(3) Excluding shares reserved for future issuance under the 2005 Directors Plan.

Pretax Intrinsic Value of Options Exercised and Their Average Exercise Prices

The pretax intrinsic value of options exercised and their average exercise prices were:

	Year Ended October 31,
	2015		2014		2013
	(in thousands, except per share price)
Intrinsic value	$	44,104	$	32,094	$	46,592
Average exercise price per share	$	26.06	$	24.47	$	24.34

Summary of Restricted Stock Award Activities Under 2005 Directors Plan

Restricted stock award activities during fiscal 2015 under the 2005 Directors Plan are summarized as follows:

	Restricted Shares		Weighted-Average Grant Date Fair Value
	(in thousands, except per share)
Unvested at October 31, 2014	48		$	36.09
Granted	22		$	46.46
Vested	(25	)	$	34.76
Forfeited	—		$	—
Unvested at October 31, 2015	45		$	41.82

Stock Option Plans and Stock Purchase Rights Granted Under ESPP

The assumptions presented in the following table were used to estimate the fair value of stock options and employee stock purchase rights granted under the Company’s stock plans or stock plans assumed from acquisitions:

	Year Ended October 31,
	2015	2014	2013
Stock Options
Expected life (in years)	4.3	4.5	4.7
Risk-free interest rate	1.24% - 1.58%	1.38% - 1.74%	0.62% - 1.66%
Volatility	16.92%-21.76%	18.38%-20.00%	20.61% - 26.47%
Weighted average estimated fair value	$8.77	$10.95	$7.29
ESPP
Expected life (in years)	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0
Risk-free interest rate	0.12% - 0.75%	0.05% - 0.58%	0.10% - 0.43%
Volatility	18.01% - 21.60%	16.84% - 18.78%	17.12% - 21.75%
Weighted average estimated fair value	$11.11	$9.17	$8.19

Stock Compensation Expense

The following table presents stock compensation expense for fiscal 2015, 2014 and 2013, respectively:

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Cost of license	$	9,162		$	8,122		$	6,597
Cost of maintenance and service	2,164			2,336			1,628
Research and development expense	43,431			38,241			32,423
Sales and marketing expense	17,744			16,754			13,983
General and administrative expense	13,899			13,987			12,880
Stock compensation expense before taxes	86,400			79,440			67,511
Income tax benefit	(20,071		)	(18,224		)	(16,446		)
Stock compensation expense after taxes	$	66,329		$	61,216		$	51,065

Deferred Plan Assets and Liabilities

Deferred Plan Assets and Liabilities are as follows:

	As of October 31, 2015		As of October 31, 2014
	(In thousands)
Plan assets recorded in other long-term assets	$	158,462	$	145,508
Plan liabilities recorded in other long-term liabilities(1)	$	158,462	$	145,508

(1) For undistributed deferred compensation balances due to participants.

Summary of Impact of Deferred Plan

The following table summarizes the impact of the Deferred Plan:

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Increase (reduction) to cost of revenue and operating expense	$	3,701	$	10,856	$	18,453
Other income (expense), net	3,701		10,856		18,453
Net increase (decrease) to net income	$	—	$	—	$	—

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Income Taxes (Tables)

12 Months Ended

Oct. 31, 2015

Income Tax Disclosure [Abstract]

Domestic and Foreign Components of Total Income Before Provision for Income Tax

The domestic and foreign components of the Company’s total income (loss) before provision for income taxes are as follows:

	Year Ended October 31,
	2015		2014			2013
	(in thousands)
United States	$	42,571	$	(7,638	)	$	61,818
Foreign	239,039		279,780			213,848
	$	281,610	$	272,142		$	275,666

Components of (Benefit) Provision for Income Taxes

The components of the (benefit) provision for income taxes were as follows:

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Current:
Federal	$	(21,911	)	$	(14,951	)	$	11,692
State	1,385			279			(5,949		)
Foreign	39,319			42,085			29,428
	18,793			27,413			35,171
Deferred:
Federal	44,462			(4,612		)	4,969
State	(2,282		)	(4,141		)	933
Foreign	(5,297		)	(5,642		)	(13,207		)
	36,883			(14,395		)	(7,305		)
Provision (Benefit) for income taxes	$	55,676		$	13,018		$	27,866

Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate

The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows:

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Statutory federal tax	$	98,564		$	95,251		$	96,483
State tax (benefit), net of federal effect	(4,764		)	(4,306		)	(2,697		)
Tax credits (1)	(13,301		)	(5,153		)	(24,972		)
Tax on foreign earnings less than U.S. statutory tax	(56,536		)	(61,376		)	(40,156		)
Deferred tax reversal resulting from merger of foreign affiliate	—			—			(6,808		)
Tax settlements	(6,251		)	(19,645		)	(1,130		)
Stock based compensation	5,406			5,675			4,671
Changes in valuation allowance	(216		)	(235		)	(776		)
Federal statute lapses	(2,265		)	(6,746		)	—
Integration of acquired technologies	33,015			4,715			3,486
Other	2,024			4,838			(235		)
	$	55,676		$	13,018		$	27,866

(1) As a result of the reinstatement of the U.S. federal research tax credit in fiscal 2013, the Company reflected a tax benefit of approximately $19.0 million in the above amount for the period January 1, 2012 through October 31, 2013. The credit expired on December 31, 2013, resulting in only two months of credit for fiscal 2014. The credit was reinstated in fiscal 2015, resulting in a tax benefit of approximately $12.4 million in the above amount for the period January 1 through December 31, 2014.

Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities were as follows:

	October 31,
	2015			2014
	(in thousands)
Net deferred tax assets:
Deferred tax assets:
Accruals and reserves	$	40,373		$	28,608
Deferred revenue	36,460			42,766
Deferred compensation	69,716			56,920
Capitalized costs	60,998			66,616
Capitalized research and development costs	24,748			32,710
Stock compensation	18,001			18,508
Tax loss carryovers	50,987			64,273
Foreign tax credit carryovers	1,064			18,846
Research and other tax credit carryovers	80,327			110,247
Other	5,340			4,689
Gross deferred tax assets	388,014			444,183
Valuation allowance	(48,700		)	(45,996		)
Total deferred tax assets	339,314			398,187
Deferred tax liabilities:
Intangible assets	66,345			81,218
Undistributed earnings of foreign subsidiaries	933			726
Total deferred tax liabilities	67,278			81,944
Net deferred tax assets	$	272,036		$	316,243

Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities

The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities:

Carryforward	Amount		Expiration Date
	(in thousands)
Federal net operating loss carryforward	$	108,533	2016-2034
Federal research credit carryforward	120,243		2019-2035
Federal foreign tax credit carryforward	4,586		2017-2023
International foreign tax credit carryforward	10,104		Indefinite
California research credit carryforward	135,858		Indefinite
Other state research credit carryforward	5,395		2016-2030
State net operating loss carryforward	217,914		2016-2035

Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit

reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows:

	As of October 31, 2015			As of October 31, 2014
	(in thousands)
Beginning balance	$	124,102		$	117,760
Increases in unrecognized tax benefits related to prior year tax positions	10,922			2,037
Decreases in unrecognized tax benefits related to prior year tax positions	(7,526		)	(23,271		)
Increases in unrecognized tax benefits related to current year tax positions	13,232			35,277
Decreases in unrecognized tax benefits related to settlements with taxing authorities	—			(1,858		)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(5,996		)	(8,816		)
Increases in unrecognized tax benefits acquired	976			3,575
Changes in unrecognized tax benefits due to foreign currency translation	(3,656		)	(602		)
	$	132,054		$	124,102

Subsidiaries Remain Subject to Tax Examination

The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions:

Jurisdiction	Year(s) Subject to Examination
United States—Synopsys	Fiscal 2015
United States—Magma Design Automation	Fiscal 2012
California—Synopsys	Fiscal years after 2010
California—Magma Design Automation	Fiscal years after 2010
Hungary	Fiscal years after 2008
Ireland, Japan, and Taiwan	Fiscal years after 2009

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Other Income (Expense), Net (Tables)

12 Months Ended

Oct. 31, 2015

Other Income and Expenses [Abstract]

Components of Other Income (Expense), Net

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

	Year Ended October 31,
	2015			2014			2013
	(in thousands)
Interest income	$	2,785		$	1,302		$	1,891
Interest expense	(2,814		)	(1,895		)	(1,696		)
Gain (loss) on assets related to deferred compensation plan	3,701			10,856			18,453
Foreign currency exchange gain (loss)	6,363			1,195			6,026
Other, net(1)	5,109			11,967			4,499
Total	$	15,144		$	23,425		$	29,173

(1) See Note 6. Fair Value Measures.

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Segment Disclosure (Tables)

12 Months Ended

Oct. 31, 2015

Segment Reporting [Abstract]

Revenues Related to Operations by Geographic Areas

Revenues and property and equipment, net, related to operations in the United States and other by geographic areas were:

	Year Ended October 31,
	2015		2014		2013
	(in thousands)
Revenue:
United States	$	1,143,816	$	1,020,654	$	939,749
Europe	300,352		272,911		273,041
Japan	218,794		238,588		264,141
Asia Pacific and Other	579,249		525,319		485,283
Consolidated	$	2,242,211	$	2,057,472	$	1,962,214

Property and Equipment by Geographic Areas

	As of October 31,
	2015		2014
	(in thousands)
Property and Equipment, net:
United States	$	192,075	$	181,019
Other countries	71,002		68,079
Total	$	263,077	$	249,098

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Supplementary Data - Selected Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Oct. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The table below includes certain unaudited financial information for the last eight fiscal quarters. Refer to Note 2 of Notes to Consolidated Financial Statements for information on our fiscal year end.

	Quarter Ended
	January 31,		April 30,		July 31,		October 31,
	(in thousands, except per share data)
2015
Revenue	$	542,043	$	557,204	$	555,805	$	587,159
Gross margin	417,410		432,232		426,334		447,315
Income before provision for income taxes	76,615		83,884		65,193		55,918
Net income	65,189		55,596		55,387		49,762
Net income per share
Basic	$	0.42	$	0.36	$	0.36	$	0.32
Diluted	0.41		0.35		0.35		0.31
2014
Revenue	$	478,951	$	517,697	$	521,812	$	539,012
Gross margin	373,102		403,612		406,282		417,591
Income before provision for income taxes	71,184		68,059		70,771		62,128
Net income	67,696		63,317		65,656		62,455
Net income per share
Basic	$	0.44	$	0.41	$	0.42	$	0.40
Diluted	0.43		0.40		0.42		0.39

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalent maturity period, months	3 months
Depreciation expenses	$ 71,100,000	$ 63,100,000	$ 56,700,000
Repair and maintenance costs	32,300,000	28,700,000	26,300,000
Goodwill impairment loss	0	0	0
Long-lived assets impairment loss	$ 0	$ 0	$ 0
Additional maintenance perpetual license period (in years)	20 years
Software product warranty period (in days)	90 days
Term Licenses
Summary Of Significant Accounting Policies [Line Items]
License fee percentage	75.00%
Maintenance fee percentage	100.00%
Perpetual licenses
Summary Of Significant Accounting Policies [Line Items]
License fee percentage	75.00%
Maintenance fee percentage	100.00%
Perpetual And Term Licenses
Summary Of Significant Accounting Policies [Line Items]
License fee percentage	75.00%
Maintenance fee percentage	100.00%
Maximum
Summary Of Significant Accounting Policies [Line Items]
Hardware product warranty period (in months)	6 months
Intangible Assets | Minimum
Summary Of Significant Accounting Policies [Line Items]
Intangible assets amortization period	1 year
Intangible Assets | Maximum
Summary Of Significant Accounting Policies [Line Items]
Intangible assets amortization period	10 years
Voluntary Retirement Program and Headcount Reduction Program
Summary Of Significant Accounting Policies [Line Items]
Restructuring charges	$ 15,100,000
Payroll and related benefits liabilities	$ 0

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Summary of Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands		12 Months Ended
		Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at Beginning of Period		$ 2,026	$ 4,253	$ 6,072
Provisions		1,300	(1,250)	102
Write-offs	[1]	(765)	(977)	(1,921)
Balance at End of Period		$ 2,561	$ 2,026	$ 4,253

[1] Balances written off, net of recoveries

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Summary of Significant Accounting Policies - Components of Property and Equipment (Detail) - USD ($) $ in Thousands		Oct. 31, 2015	Oct. 31, 2014
Property, Plant and Equipment, Net [Abstract]
Computer and other equipment		$ 436,425	$ 419,951
Buildings		67,943	68,871
Furniture and fixtures		50,075	41,089
Land		20,414	20,414
Leasehold improvements		142,275	136,513
Property, Plant and Equipment, Gross, Total		717,132	686,838
Less accumulated depreciation and amortization(1)	[1]	(454,055)	(437,740)
Total		$ 263,077	$ 249,098

[1] Accumulated depreciation and amortization includes write-offs due to retirement of fully amortized fixed assets.

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Summary of Significant Accounting Policies - Useful Lives of Depreciable Assets (Detail)	12 Months Ended
	Oct. 31, 2015
Computer and other equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful lives of depreciable assets, years	3 years
Computer and other equipment | Maximum
Property, Plant and Equipment [Line Items]
Useful lives of depreciable assets, years	5 years
Buildings
Property, Plant and Equipment [Line Items]
Useful lives of depreciable assets, years	30 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Useful lives of depreciable assets, years	5 years
Leasehold improvements (average)
Property, Plant and Equipment [Line Items]
Useful lives of depreciable assets, years	5 years

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Summary of Significant Accounting Policies - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Accounts payable and accrued liabilities Current
Payroll and related benefits	$ 315,078	$ 302,295
Other accrued liabilities	60,545	66,666
Accounts payable	9,919	28,152
Total	$ 385,542	$ 397,113

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Summary of Significant Accounting Policies - Components of Other Long Term Liabilities (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Liabilities Other than long term debt non current
Deferred compensation liability (See Note 10)	$ 158,462	$ 145,508
Other long-term liabilities	43,559	13,464
Total	$ 202,021	$ 158,972

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Summary of Significant Accounting Policies - Reconciliation of Weighted Average Common Shares Used to Calculate Basic Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended								12 Months Ended
		Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Earnings Per Share [Abstract]
Net income										$ 225,934	$ 259,124	$ 247,800
Weighted average common shares for basic net income per share										154,957	155,054	153,319
Dilutive effect of common share equivalents from equity—based compensation										3,108	2,656	3,282
Weighted average common shares for diluted net income per share										158,065	157,710	156,601
Basic (in USD per share)		$ 0.32	$ 0.36	$ 0.36	$ 0.42	$ 0.40	$ 0.42	$ 0.41	$ 0.44	$ 1.46	$ 1.67	$ 1.62
Diluted (in USD per share)		$ 0.31	$ 0.35	$ 0.35	$ 0.41	$ 0.39	$ 0.42	$ 0.40	$ 0.43	$ 1.43	$ 1.64	$ 1.58
Anti-dilutive employee stock-based awards excluded	[1]									1,363	2,196	1,326

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

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Business Combinations Business Combinations - 2015 Acquisitions (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015		Oct. 31, 2014	Oct. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 2,471,241	[1]	$ 2,255,708	$ 1,975,971
Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Acquisition-related costs	14,900
Payments to Acquire Businesses, Net of Cash Acquired	333,200
Goodwill	234,000
Business Acquisition, Goodwill, Expected Tax Deductible Amount	2,300
Identifiable intangibles assets acquired	119,800
Fair value of stock options assumed	$ 2,100
Minimum | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Definite lived intangible asset amortization period	1 year
Maximum | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Definite lived intangible asset amortization period	7 years

[1] There is no accumulated impairment of goodwill for periods presented.

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Goodwill and Intangible Assets - Summary of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015		Oct. 31, 2014
Goodwill [Roll Forward]
Beginning Balance	$ 2,255,708		$ 1,975,971
Additions	233,989		290,379
Goodwill, Translation Adjustments	(19,140)		(10,642)
Goodwill, Purchase Accounting Adjustments	684
Ending balance	$ 2,471,241	[1]	$ 2,255,708

[1] There is no accumulated impairment of goodwill for periods presented.

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Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands		Oct. 31, 2015	Oct. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Assets		$ 1,030,594	$ 893,002
Accumulated Amortization		666,935	527,972
Net Assets		363,659	365,030
Core-developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Assets		584,293	490,242
Accumulated Amortization		375,395	298,705
Net Assets		208,898	191,537
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Assets		231,908	210,172
Accumulated Amortization		115,170	92,146
Net Assets		116,738	118,026
Contract rights intangible
Finite-Lived Intangible Assets [Line Items]
Gross Assets		165,623	146,364
Accumulated Amortization		141,763	109,067
Net Assets		23,860	37,297
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Gross Assets		2,530	2,530
Accumulated Amortization		2,530	2,530
Net Assets		0	0
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross Assets		20,729	18,779
Accumulated Amortization		10,665	7,765
Net Assets		10,064	11,014
In-process research and development (IPR&D)
Finite-Lived Intangible Assets [Line Items]
Gross Assets	[1]		3,086
Accumulated Amortization	[1]		0
Net Assets	[1]		3,086
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Gross Assets		25,511	21,829
Accumulated Amortization		21,412	17,759
Net Assets		$ 4,099	$ 4,070

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

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Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands		12 Months Ended
		Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		$ 139,681	$ 129,700	$ 130,724
Core-developed technology
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		76,674	70,675	68,781
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		23,104	22,470	21,394
Contract rights intangible
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		33,350	30,615	35,538
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		0	50	126
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		2,900	2,309	1,663
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets	[1]	$ 3,653	$ 3,581	$ 3,222

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

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Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2016	$ 126,865
2017	87,586
2018	62,736
2019	39,729
2020	28,334
2021 and thereafter	18,409
Net Assets	$ 363,659	$ 365,030

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Financial Assets and Liabilities - Additional Information (Detail)	12 Months Ended
	Oct. 31, 2015
Financial Assets And Liabilities [Line Items]
Derivative, Maximum Shipment Period For Entry Into Foreign Currency Forward Contract	1 month
Period for hedge balance in OCI to be reclassified to statement of operations (in months)	12 months
Foreign Exchange Contracts | Maximum
Financial Assets And Liabilities [Line Items]
Duration of foreign exchange forward contracts	1 year
Non-Designated Hedging Instrument
Financial Assets And Liabilities [Line Items]
Maximum Length of Time, Foreign Currency Cash Flow Hedge	1 month
Cash Flow Hedging | Foreign Exchange Forward | Maximum
Financial Assets And Liabilities [Line Items]
Forward contracts terms (in months)	22 months
Foreign Currency Derivative Contracts | Minimum
Financial Assets And Liabilities [Line Items]
Forward contracts terms (in months)	1 month
Foreign Currency Derivative Contracts | Maximum
Financial Assets And Liabilities [Line Items]
Forward contracts terms (in months)	22 months
Foreign Currency Derivative Contracts | Cash Flow Hedging | Maximum
Financial Assets And Liabilities [Line Items]
Forward contracts terms (in months)	3 years

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Financial Assets and Liabilities - Summary of Cash Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands		Oct. 31, 2015		Oct. 31, 2014
Cash, Cash Equivalents and Investments [Line Items]
Non-marketable equity securities		$ 10,300		$ 10,900
Cash Equivalents [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		239,473		409,064
Gross Unrealized Gains		0		0
Gross Unrealized Losses Less than 12 Months		(1)		0
Gross Unrealized Losses 12 Months or Longer		0		0
Estimated Fair Value		239,472	[1]	409,064	[2]
Short-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		128,774
Gross Unrealized Gains		33
Gross Unrealized Losses Less than 12 Months		(60)
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	128,747
Other Long-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Non-marketable equity securities, Cost		10,277		10,869
Gross Unrealized Gains		0		0
Gross Unrealized Losses Less Than 12Months		0		0
Gross Unrealized Loss Position 12Months Or Longer		0		0
Non-marketable equity securities		10,277	[1]	10,869	[2]
Money Market Funds (U.S.) | Cash Equivalents [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		233,839		409,064
Gross Unrealized Gains		0		0
Gross Unrealized Losses Less than 12 Months		0		0
Gross Unrealized Losses 12 Months or Longer		0		0
Estimated Fair Value		233,839	[1]	409,064	[2]
Commercial Paper [Member] | Cash Equivalents [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		1,834
Gross Unrealized Gains		0
Gross Unrealized Losses Less than 12 Months		0
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	1,834
Commercial Paper [Member] | Short-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		12,129
Gross Unrealized Gains		0
Gross Unrealized Losses Less than 12 Months		0
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	12,129
US Government Agency Securities [Member] | Short-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		12,615
Gross Unrealized Gains		3
Gross Unrealized Losses Less than 12 Months		(4)
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	12,614
Municipal Bonds [Member] | Short-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		1,403
Gross Unrealized Gains		1
Gross Unrealized Losses Less than 12 Months		(1)
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	1,403
Certificates of Deposit [Member] | Cash Equivalents [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		3,500
Gross Unrealized Gains		0
Gross Unrealized Losses Less than 12 Months		0
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	3,500
Certificates of Deposit [Member] | Short-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		9,800
Gross Unrealized Gains		0
Gross Unrealized Losses Less than 12 Months		0
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	9,800
Corporate Debt Securities [Member] | Short-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		67,201
Gross Unrealized Gains		27
Gross Unrealized Losses Less than 12 Months		(40)
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	67,188
Asset-backed Securities [Member] | Cash Equivalents [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		300
Gross Unrealized Gains		0
Gross Unrealized Losses Less than 12 Months		(1)
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	299
Asset-backed Securities [Member] | Short-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		24,619
Gross Unrealized Gains		2
Gross Unrealized Losses Less than 12 Months		(13)
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	24,608
Non-U.S. Government Agency Securities [Member] | Short-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Available-for-sale Securities, Cost		1,007
Gross Unrealized Gains		0
Gross Unrealized Losses Less than 12 Months		(2)
Gross Unrealized Losses 12 Months or Longer		0
Estimated Fair Value	[1]	1,005
Non-Marketable Equity Securities [Member] | Other Long-term Investments [Member]
Cash, Cash Equivalents and Investments [Line Items]
Non-marketable equity securities, Cost		10,277		10,869
Gross Unrealized Gains		0		0
Gross Unrealized Losses Less Than 12Months		0		0
Gross Unrealized Loss Position 12Months Or Longer		0		0
Non-marketable equity securities		$ 10,277	[1]	$ 10,869	[2]

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

[2] See Note 6. Fair Value Measures for further discussion on fair values of money market funds and non-marketable equity securities

XML

Financial Assets and Liabilities - Investments Maturity Table (Details) $ in Thousands	Oct. 31, 2015 USD ($)
Available-for-Amortized Cost
Due in 1 year or less	$ 76,774
Due in 2-5 years	51,908
Due in 6-10 years	92
Total	128,774
Fair Value
Due in 1 year or less	76,784
Due in 2-5 years	51,871
Due in 6-10 years	92
Total	$ 128,747

XML

Financial Assets and Liabilities - Effects on Changes in Fair Values of Non-Designated Forward Contracts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Financial Assets And Liabilities [Abstract]
Gain (loss) recorded in other income (expense), net	$ (5,554)	$ (3,301)	$ 3,009

XML

Financial Assets and Liabilities - Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Financial Assets And Liabilities [Abstract]
Total gross notional amount	$ 781,752	$ 793,937
Net fair value	$ (3,819)	$ (2,455)

XML

Financial Assets and Liabilities - Fair Values of Derivative Instrument Designated and Non-Designated as Hedging Instruments in Balance Sheet (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Designated As Hedging Instrument | Other current assets
Financial Assets And Liabilities [Line Items]
Fair values of derivative instruments	$ 6,461	$ 9,299
Designated As Hedging Instrument | Accrued liabilities
Financial Assets And Liabilities [Line Items]
Fair values of derivative instruments	10,141	11,656
Non-Designated Hedging Instrument | Other current assets
Financial Assets And Liabilities [Line Items]
Fair values of derivative instruments	1	1
Non-Designated Hedging Instrument | Accrued liabilities
Financial Assets And Liabilities [Line Items]
Fair values of derivative instruments	$ 140	$ 99

XML

Financial Assets and Liabilities - Income Statement Location and Amount of Gains and Losses on Derivative Instrument Fair Values for Designated Hedge Instruments, Net of Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Financial Assets And Liabilities [Line Items]
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	$ (18,623)	$ (5,501)	$ 6,107
Amount of gain (loss) reclassified from OCI (effective portion)	(14,923)	3,882	6,565
Foreign Exchange Contracts | Revenue
Financial Assets And Liabilities [Line Items]
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	3,982	5,395	2,427
Amount of gain (loss) reclassified from OCI (effective portion)	9,270	2,339	7,457
Foreign Exchange Contracts | Operating Expenses
Financial Assets And Liabilities [Line Items]
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	(22,605)	(10,896)	3,680
Amount of gain (loss) reclassified from OCI (effective portion)	$ (24,193)	$ 1,543	$ (892)

XML

Financial Assets and Liabilities - Ineffective Portion and Portion Excluded from Effectiveness Testing of Derivative Hedge Gains (Losses) (Detail) - Foreign Exchange Contracts - USD ($) $ in Thousands		12 Months Ended
		Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Financial Assets And Liabilities [Line Items]
Amount of gain (loss) recognized in income statement on derivatives (ineffective portion)	[1]	$ 878	$ (302)	$ 293
Amount of gain (loss) recognized in income statement on derivatives (excluded from effectiveness testing)	[2]	$ 3,704	$ 3,259	$ 2,518

[1] The ineffective portion includes forecast inaccuracies.

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

XML

Financial Assets and Liabilities - Credit and Term Loan Facilities, Additional Information (Detail) - USD ($)			12 Months Ended
	May. 19, 2015	Feb. 17, 2012	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Debt Instrument [Line Items]
Proceeds from credit facility			$ 460,000,000	$ 200,000,000	$ 0
Repayments of Debt			330,425,000	230,968,000	$ 30,712,000
Senior unsecured term loan facility long term			0	45,000,000
Unsecured Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment, Principal		$ 7,500,000
Senior unsecured revolving credit facility entered date		Feb. 17, 2012
Payment schedule for term loan		Principal payments on a portion of the Term Loan are due in equal quarterly installments of $7.5 million, with the remainder due in October 2016.
Term Loan [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Senior unsecured term loan facility, face amount		$ 150,000,000.0
Senior unsecured term loan facility			45,000,000	75,000,000
Senior unsecured term loan facility long term				$ 45,000,000
Revolving Credit Facility [Member] | Revolver | Unsecured Debt [Member]
Debt Instrument [Line Items]
Senior unsecured revolving credit facility maximum borrowing capacity	$ 500,000,000.0	$ 350,000,000.0
Maturity Date	May 19, 2020	Oct. 14, 2016
Senior unsecured term loan facility additional borrowings	$ 150,000,000.0
Short-term Line of Credit			$ 160,000,000
Revolving Credit Facility [Member] | Revolver | Minimum | Unsecured Debt [Member]
Debt Instrument [Line Items]
Commitment fees percentage			0.125%
Revolving Credit Facility [Member] | Revolver | Maximum | Unsecured Debt [Member]
Debt Instrument [Line Items]
Commitment fees percentage			0.20%
London Interbank Offered Rate (LIBOR) [Member] | Term Loan [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Borrowings, interest rate			1.125%
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Revolver | Unsecured Debt [Member]
Debt Instrument [Line Items]
Borrowings, interest rate			1.00%

XML

Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	$ 533,143	$ 563,872
Total liabilities	168,743	157,263
Deferred compensation plan liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Liabilities, Fair Value Disclosure	158,462	145,508
Deferred Compensation Plan Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other long-term assets	158,462	145,508
Foreign Currency Derivative Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Prepaid and other current assets	6,462	9,300
Accounts payable and accrued liabilities	10,281	11,755
Money Market Funds (U.S.) | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	233,839	409,064
Commercial Paper [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	1,834
Commercial Paper [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	12,129
US Government Agency Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	12,614
Municipal Bonds [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	1,403
Certificates of Deposit [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	3,500
Certificates of Deposit [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	9,800
Corporate Debt Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	67,188
Asset-backed Securities [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	299
Asset-backed Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	24,608
Non-U.S. Government Agency Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	1,005
Quoted Prices In Active Markets For Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	392,301	554,572
Total liabilities	158,462	145,508
Quoted Prices In Active Markets For Identical Assets (Level 1) | Deferred compensation plan liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Liabilities, Fair Value Disclosure	158,462	145,508
Quoted Prices In Active Markets For Identical Assets (Level 1) | Deferred Compensation Plan Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other long-term assets	158,462	145,508
Quoted Prices In Active Markets For Identical Assets (Level 1) | Foreign Currency Derivative Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Prepaid and other current assets	0	0
Accounts payable and accrued liabilities	0	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | Money Market Funds (U.S.) | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	233,839	409,064
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commercial Paper [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commercial Paper [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | US Government Agency Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | Municipal Bonds [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | Certificates of Deposit [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | Certificates of Deposit [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | Corporate Debt Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | Asset-backed Securities [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | Asset-backed Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Quoted Prices In Active Markets For Identical Assets (Level 1) | Non-U.S. Government Agency Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	140,842	9,300
Total liabilities	10,281	11,755
Significant Other Observable Inputs (Level 2) | Deferred compensation plan liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Liabilities, Fair Value Disclosure	0	0
Significant Other Observable Inputs (Level 2) | Deferred Compensation Plan Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other long-term assets	0	0
Significant Other Observable Inputs (Level 2) | Foreign Currency Derivative Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Prepaid and other current assets	6,462	9,300
Accounts payable and accrued liabilities	10,281	11,755
Significant Other Observable Inputs (Level 2) | Money Market Funds (U.S.) | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Significant Other Observable Inputs (Level 2) | Commercial Paper [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	1,834
Significant Other Observable Inputs (Level 2) | Commercial Paper [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	12,129
Significant Other Observable Inputs (Level 2) | US Government Agency Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	12,614
Significant Other Observable Inputs (Level 2) | Municipal Bonds [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	1,403
Significant Other Observable Inputs (Level 2) | Certificates of Deposit [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	3,500
Significant Other Observable Inputs (Level 2) | Certificates of Deposit [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	9,800
Significant Other Observable Inputs (Level 2) | Corporate Debt Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	67,188
Significant Other Observable Inputs (Level 2) | Asset-backed Securities [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	299
Significant Other Observable Inputs (Level 2) | Asset-backed Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	24,608
Significant Other Observable Inputs (Level 2) | Non-U.S. Government Agency Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	1,005
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	0	0
Total liabilities	0	0
Significant Unobservable Inputs (Level 3) | Deferred compensation plan liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Liabilities, Fair Value Disclosure	0	0
Significant Unobservable Inputs (Level 3) | Deferred Compensation Plan Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other long-term assets	0	0
Significant Unobservable Inputs (Level 3) | Foreign Currency Derivative Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Prepaid and other current assets	0	0
Accounts payable and accrued liabilities	0	0
Significant Unobservable Inputs (Level 3) | Money Market Funds (U.S.) | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	$ 0
Significant Unobservable Inputs (Level 3) | Commercial Paper [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Significant Unobservable Inputs (Level 3) | Commercial Paper [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Significant Unobservable Inputs (Level 3) | US Government Agency Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Significant Unobservable Inputs (Level 3) | Municipal Bonds [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Significant Unobservable Inputs (Level 3) | Certificates of Deposit [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Significant Unobservable Inputs (Level 3) | Certificates of Deposit [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Significant Unobservable Inputs (Level 3) | Corporate Debt Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Significant Unobservable Inputs (Level 3) | Asset-backed Securities [Member] | Cash Equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Significant Unobservable Inputs (Level 3) | Asset-backed Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	0
Significant Unobservable Inputs (Level 3) | Non-U.S. Government Agency Securities [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	$ 0

XML

Fair Value Measures - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2015
Fair Value Measures [Line Items]
Non-marketable equity securities	$ 10.9	$ 10.3
Proceeds from Sale, Maturity and Collection of Investments	7.1
Cost Method Investments
Fair Value Measures [Line Items]
Non-marketable equity securities	6.7	6.6
Equity Method Investments
Fair Value Measures [Line Items]
Non-marketable equity securities	4.2	$ 3.7
Other Income Expense Net
Fair Value Measures [Line Items]
Gain from liquidation of investment	$ 6.9

XML

Commitments and Contingencies - Minimum Lease Commitments (Detail) $ in Thousands	Oct. 31, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Minimum lease payments, 2016	$ 52,266
Minimum lease payments, 2017	47,695
Minimum lease payments, 2018	40,979
Minimum lease payments, 2019	35,469
Minimum lease payments, 2020	25,501
Minimum lease payments, thereafter	164,731
Minimum lease payments, total	366,641
Sublease income, 2016	2,579
Sublease income, 2017	2,063
Sublease income, 2018	2,120
Sublease income, 2019	2,179
Sublease income, 2020	2,239
Sublease income, thereafter	4,432
Sublease income, total	15,612
Net, 2016	49,687
Net, 2017	45,632
Net, 2018	38,859
Net, 2019	33,290
Net, 2020	23,262
Net, Thereafter	160,299
Net, Total	$ 351,029

XML

Commitments and Contingencies - Additional Information (Detail) ft² in Thousands, $ in Millions		3 Months Ended	12 Months Ended
	Oct. 10, 2014 USD ($)	Jan. 31, 2015 ft² Building	Oct. 31, 2015 USD ($)	Oct. 31, 2014 USD ($)	Oct. 31, 2013 USD ($)
Loss Contingencies [Line Items]
Rent expenses			$ 67.6	$ 65.6	$ 64.4
Number of buildings to be leased | Building		2
Total square feet of buildings | ft²		341
Lease renewal term, in years		10 years
Second lease renewal term, years		9 years
Mentor litigation
Loss Contingencies [Line Items]
Jury verdict assessing damages, value	$ 36.0

XML

Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Cumulative currency translation adjustments	$ (90,508)	$ (50,941)
Unrealized gain (loss) on derivative instruments, net of taxes	(14,839)	(11,148)
Unrealized gain (loss) on available-for-sale securities, net of taxes	(28)	0
Total accumulated other comprehensive income (loss)	$ (105,375)	$ (62,089)

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Accumulated Other Comprehensive Income (Loss) - Effect of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) into Net Income (Detail) - Reclassification out of accumulated other comprehensive income (loss) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications into net income	$ (14,882)	$ 3,882	$ 6,565
Revenue | Gain (loss) on cash flow hedges, net of taxes
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications into net income	9,270	2,339	7,457
Operating Expenses | Gain (loss) on cash flow hedges, net of taxes
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications into net income	(24,193)	1,543	(892)
Other Income (Expense) | Gain (loss) on available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications into net income	$ 41	$ 0	$ 0

XML

Stock Repurchase Activities (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Stock Repurchase Program
Shares repurchased	5,672	3,092	3,996
Average purchase price	$ 45.84	$ 38.72	$ 36.29
Aggregate purchase price	$ 260,000	$ 119,747	$ 145,016
Reissuance of treasury stock	4,864	4,888	7,266

XML

Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended			3 Months Ended	5 Months Ended	6 Months Ended	8 Months Ended	12 Months Ended
	Dec. 09, 2015	Dec. 15, 2015	Aug. 31, 2015	Dec. 31, 2014	Jul. 31, 2015	Apr. 30, 2016	Jan. 31, 2016	Jul. 31, 2015	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013	Sep. 01, 2015
Equity, Class of Treasury Stock [Line Items]
Average purchase price									$ 45.84	$ 38.72	$ 36.29
Treasury Stock, Value, Acquired, Cost Method									$ 260,000	$ 119,747	$ 145,016
Stock repurchase program authorized amount									500,000			$ 500,000
Remaining amount available for further repurchases									500,000
Settlement of equity forward contract									$ 20,000	$ 0	$ 0
Accelerated Share Repurchase Program December 2014 [Member]
Equity, Class of Treasury Stock [Line Items]
Average purchase price								$ 45.37
Stock Repurchase Program, Prepayment During Period				$ 180,000
Accelerated Share Repurchase, Initial Share Delivery, Amount				144,000
Stock Repurchase Program, Prepayment During Period, Derivative Settlement					$ 36,000
Treasury Stock, Value, Acquired, Cost Method								$ 4,000
Stock repurchase program authorized amount				$ 180,000
Accelerated Share Repurchase Program August 2015 [Member]
Equity, Class of Treasury Stock [Line Items]
Average purchase price			$ 46.94
Stock Repurchase Program, Prepayment During Period			$ 100,000
Accelerated Share Repurchase, Initial Share Delivery, Amount			80,000
Stock repurchase program authorized amount			$ 100,000
Subsequent Event [Member] | Accelerated Share Repurchase Program August 2015 [Member]
Equity, Class of Treasury Stock [Line Items]
Average purchase price		$ 48.06
Treasury Stock, Value, Acquired, Cost Method		$ 2,100
Subsequent Event [Member] | Accelerated Share Repurchase Program December 2015 [Member]
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Prepayment During Period	$ 200,000
Accelerated Share Repurchase, Initial Share Delivery, Amount	160,000
Accelerated share repurchase amount	$ 200,000
Accelerated Share Repurchases, Average Price Paid Per Share	$ 46.08
Scenario, Forecast [Member] | Accelerated Share Repurchase Program August 2015 [Member]
Equity, Class of Treasury Stock [Line Items]
Remaining repurchase amount							$ 20,000
Scenario, Forecast [Member] | Subsequent Event [Member] | Accelerated Share Repurchase Program December 2015 [Member]
Equity, Class of Treasury Stock [Line Items]
Remaining repurchase amount						$ 40,000

XML

Stock Repurchase Program Stock Repurchase Activities (Phantom) (Details) $ in Millions	6 Months Ended
	Jan. 31, 2016 USD ($)
Accelerated Share Repurchase Program August 2015 [Member] | Scenario, Forecast [Member]
Share Repurchases [Line Items]
Settlement of equity forward contract	$ 20.0

XML

Employee Benefit Plans (Employee Stock Purchase Plan) - Additional Information (Detail) - $ / shares shares in Millions	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013	Apr. 02, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Threshold for employee stock purchases under ESPP, maximum value	85.00%
ESPP offering period (in years)	2 years
Increase in number of shares authorized for issuance under plan				5.0
Shares issued	1.7	1.8	2.1
Weighted average purchase price of stock purchased	$ 31.55	$ 30.00	$ 22.75
Shares reserved for future issuance under the ESPP	5.3

XML

Employee Benefit Plans (Equity Compensation Plans) - Additional Information (Detail) - USD ($) $ in Millions			12 Months Ended
		Apr. 02, 2015	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012	May. 23, 2005
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate restricted stock units outstanding			3,928,000	3,947,000	3,983,000	3,920,000
Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, (in years)			3 years
Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, (in years)			4 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate restricted stock units outstanding			45,000	48,000
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant	[1]		11,883,000	12,155,000	8,472,000	7,352,000
2006 Employee Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement for options contractual term (in years)			7 years
Vesting period, (in years)			4 years
Additional reserved for future issuance under the 2006 Employee Plan		3,800,000
Shares available for future grant			11,900,000
2006 Employee Equity Incentive Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate restricted stock units outstanding			3,900,000
2006 Employee Equity Incentive Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate stock options outstanding			6,600,000
2005 Directors Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reserved for future issuance			262,402				800,000
Restricted stock awards issued			343,070
Aggregate grant date fair value of restricted stock awards			$ 10.5
2005 Directors Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, (in years)			3 years
Aggregate restricted stock units outstanding			44,823
2005 Directors Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate stock options outstanding			76,369
Aggregate stock options granted under 2005 director plan			157,871
Fair value of option shares granted			$ 4.7
2005 Directors Plan | Stock Option | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, (in years)			3 years
2005 Directors Plan | Stock Option | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, (in years)			4 years
Other Assumed Stock Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Assumed shares remaining outstanding			600,000

[1] Excluding shares reserved for future issuance under the 2005 Directors Plan.

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Employee Benefit Plans (Restricted Stock Units) - Additional Information (Detail) $ / shares in Units, $ in Millions				12 Months Ended
	Apr. 02, 2015	Apr. 03, 2012	Mar. 24, 2011	Oct. 31, 2015 USD ($) $ / shares
Schedule Of Restricted Stock [Line Items]
Closing stock price | $ / shares				$ 49.98
Unamortized share-based compensation expense | $				$ 156.9
Weighted-average period of total compensation costs to be recognized in years				2 years 6 months
Restricted Stock Units
Schedule Of Restricted Stock [Line Items]
Share reserve ratio	1.50	1.25	2.18
Revised share reserve ratio	1.60	1.50	1.25
Restricted Stock Units | Minimum
Schedule Of Restricted Stock [Line Items]
Vesting period, (in years)				3 years
Restricted Stock Units | Maximum
Schedule Of Restricted Stock [Line Items]
Vesting period, (in years)				4 years

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Employee Benefit Plans - Restricted Stock Units (Detail) - Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		12 Months Ended
		Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted Stock Awards, Beginning balance		3,947	3,983	3,920
Restricted Stock Units, Granted		1,707	1,645	1,680
Restricted Stock Units, Vested	[1]	(1,522)	(1,564)	(1,476)
Restricted Stock Units, Forfeited		(204)	(117)	(141)
Restricted Stock Awards, Ending balance		3,928	3,947	3,983
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Beginning balance		$ 35.29	$ 31.23	$ 27.18
Granted		48.13	39.03	35.27
Vested	[1]	33.05	29.07	25.35
Forfeited		37.68	32.95	28.36
Weighted Average Grant Date Fair Value, Ending balance		$ 41.61	$ 35.29	$ 31.23
Weighted Average Remaining Contractual Life		1 year 6 months 15 days	1 year 6 months 11 days	1 year 6 months 4 days	1 year 6 months 7 days
Aggregate Fair Value, Vested	[1]	$ 73,677	$ 60,815	$ 52,234

[1] The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

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Employee Benefit Plans - Stock Options and Restricted Stock Units Under all Equity Plans (Except 2005 Director's Plan) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		12 Months Ended
		Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted- Average Exercise Price per Share, Options Exercised		$ 26.06	$ 24.47	$ 24.34
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Available for Grant, Beginning Balance	[1]	12,155	8,472	7,352
Available for Grant, Options Granted	[1]	(1,908)	(1,686)	(1,704)
Available for Grant, Options Canceled/forfeited/expired	[1]	230	163	159
Available for Grant, Restricted stock units granted	[1],[2]	(2,707)	(2,468)	(2,519)
Available for Grant, Restricted stock units forfeited	[1],[2]	313	174	184
Available for Grant, Additional shares reserved	[1]	3,800	7,500	5,000
Available for Grants, Ending balance	[1]	11,883	12,155	8,472	7,352
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options Outstanding, Options Granted		1,942	1,686	1,704
Options Outstanding, Options Assumed	[3]	133	843	158
Options Outstanding, Options Exercised		(2,125)	(2,103)	(4,173)
Options Outstanding, Options Canceled/forfeited/expired		(411)	(402)	(182)
Options Outstanding, Vested and expected to vest		7,192
Options Outstanding, Exercisable		3,673
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted- Average Exercise Price per Share, Beginning Balance		$ 29.81	$ 26.87	$ 24.64
Weighted- Average Exercise Price per Share, Options Granted		45.14	38.65	34.10
Weighted- Average Exercise Price per Share, Options Assumed	[3]	38.97	24.63	23.60
Weighted- Average Exercise Price per Share, Options Exercised		26.06	24.47	24.34
Weighted- Average Exercise Price per Share, Options Canceled/forfeited/expired		33.51	27.44	24.17
Weighted- Average Exercise Price per Share, Ending Balance		34.94	$ 29.81	$ 26.87	$ 24.64
Weighted- Average Exercise Price per Share, Vested and expected to vest		34.84
Weighted- Average Exercise Price per Share, Exercisable		$ 29.80
Weighted Average Remaining Contractual Life, options outstanding		4 years 8 months 1 day	4 years 7 months 28 days	4 years 3 months 18 days	3 years 8 months 16 days
Weighted-Average Remaining Contractual Life , Vested and expected to vest		4 years 7 months 24 days
Weighted-Average Remaining Contractual Life , Exercisable		3 years 7 months 6 days
Aggregate Intrinsic Value, Beginning Balance		$ 86,537	$ 71,700	$ 80,950
Aggregate Intrinsic Value, Ending Balance		109,627	$ 86,537	$ 71,700	$ 80,950
Aggregate Intrinsic Value, Vested and expected to vest		108,887
Aggregate Intrinsic Value, Exercisable		$ 74,121
Stock Option | All Stock Plans
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options Outstanding, Beginning Balance		7,750	7,726	10,219
Options Outstanding, Ending Balance		7,289	7,750	7,726	10,219

[1] Excluding shares reserved for future issuance under the 2005 Directors Plan.

[2] These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above.

[3] The Company assumed options outstanding under various plans through acquisitions.

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Employee Benefit Plans - Pretax Intrinsic Value of Options Exercised and Their Average Exercise Prices (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Intrinsic value	$ 44,104	$ 32,094	$ 46,592
Average exercise price per share	$ 26.06	$ 24.47	$ 24.34

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Employee Benefit Plans - Summary of Restricted Stock Award Activities Under Twenty Zero Five Directors Plan (Detail) - Restricted Stock shares in Thousands	12 Months Ended
	Oct. 31, 2015 $ / shares shares
Restricted shares
Restricted Stock Awards, Beginning balance | shares	48
Granted | shares	22
Vested | shares	(25)
Forfeited | shares	0
Restricted Stock Awards, Ending balance | shares	45
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares	$ 36.09
Granted | $ / shares	46.46
Vested | $ / shares	34.76
Forfeited | $ / shares	0.00
Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 41.82

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Employee Benefit Plans - Stock Option Plans and Stock Purchase Rights Granted Under ESPP (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items]
Excess tax benefits from stock-based compensation	$ 4,245	$ 0	$ 0
Stock Option
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items]
Expected life (in years)	4 years 3 months 18 days	4 years 6 months	4 years 8 months 12 days
Risk-free interest rate, minimum	1.24%	1.38%	0.62%
Risk-free interest rate, maximum	1.58%	1.74%	1.66%
Volatility, minimum	16.92%	18.38%	20.61%
Volatility, maximum	21.76%	20.00%	26.47%
Weighted average estimated fair value	$ 8.77	$ 10.95	$ 7.29
Employee Stock Purchase Plan
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items]
Risk-free interest rate, minimum	0.12%	0.05%	0.10%
Risk-free interest rate, maximum	0.75%	0.58%	0.43%
Volatility, minimum	18.01%	16.84%	17.12%
Volatility, maximum	21.60%	18.78%	21.75%
Weighted average estimated fair value	$ 11.11	$ 9.17	$ 8.19
Employee Stock Purchase Plan | Minimum
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items]
Expected life (in years)	6 months	6 months	6 months
Employee Stock Purchase Plan | Maximum
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items]
Expected life (in years)	2 years	2 years	2 years

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Employee Benefit Plans - Stock Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	$ 86,400	$ 79,440	$ 67,511
Income tax benefit	(20,071)	(18,224)	(16,446)
Stock compensation expense after taxes	66,329	61,216	51,065
Cost of license
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	9,162	8,122	6,597
Cost of maintenance and service
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	2,164	2,336	1,628
Research and development expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	43,431	38,241	32,423
Sales and marketing expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	17,744	16,754	13,983
General and administrative expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense before taxes	$ 13,899	$ 13,987	$ 12,880

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Employee Benefit Plans - (Other Retirement Plans) - Additional Information (Detail)	12 Months Ended
	Oct. 31, 2015 USD ($)	Oct. 31, 2015 CAD	Oct. 31, 2014 USD ($)	Oct. 31, 2013 USD ($)
Other Retirement Plans [Line Items]
Deferred percentage of annual cash base compensation	50.00%	50.00%
Deferred percentage of variable cash compensation	100.00%	100.00%
Other Retirement Plans
Other Retirement Plans [Line Items]
Employer contribution	$ 40,000,000		$ 23,800,000	$ 21,300,000
Maximum pretax annual company contribution match per employee	$ 3,000	CAD 4,000

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Employee Benefit Plans - Deferred Plan Assets and Liabilities (Detail) - USD ($) $ in Thousands		Oct. 31, 2015	Oct. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Plan assets recorded in other long-term assets		$ 158,462	$ 145,508
Plan liabilities recorded in other long-term liabilities	[1]	$ 158,462	$ 145,508

[1] For undistributed deferred compensation balances due to participants.

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Employee Benefit Plans - Summary of Impact of Deferred Plan (Detail) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Increase (reduction) to cost of revenue and operating expense	$ 3,701	$ 10,856	$ 18,453
Other income (expense), net	3,701	10,856	18,453
Net increase (decrease) to net income	$ 0	$ 0	$ 0

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Income Taxes - Domestic and Foreign Components of Total Income Before Provision for Income Tax (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Income Tax Disclosure [Abstract]
United States									$ 42,571	$ (7,638)	$ 61,818
Foreign									239,039	279,780	213,848
Income before provision for income taxes	$ 55,918	$ 65,193	$ 83,884	$ 76,615	$ 62,128	$ 70,771	$ 68,059	$ 71,184	$ 281,610	$ 272,142	$ 275,666

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Income Taxes - Components of (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Income Tax Disclosure [Abstract]
Federal	$ (21,911)	$ (14,951)	$ 11,692
State	1,385	279	(5,949)
Foreign	39,319	42,085	29,428
Current Income Tax Expense (Benefit), Total	18,793	27,413	35,171
Federal	44,462	(4,612)	4,969
State	(2,282)	(4,141)	933
Foreign	(5,297)	(5,642)	(13,207)
Deferred Income Tax Expense (Benefit), Total	36,883	(14,395)	(7,305)
Provision (Benefit) for income taxes	$ 55,676	$ 13,018	$ 27,866

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Income Taxes - Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate (Detail) - USD ($) $ in Thousands		12 Months Ended
		Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Income Tax Disclosure [Abstract]
Statutory federal tax		$ 98,564	$ 95,251	$ 96,483
State tax (benefit), net of federal effect		(4,764)	(4,306)	(2,697)
Tax credits	[1]	(13,301)	(5,153)	(24,972)
Tax on foreign earnings less than U.S. statutory tax		(56,536)	(61,376)	(40,156)
Deferred tax reversal resulting from merger of foreign affiliate		0	0	(6,808)
Tax settlements		(6,251)	(19,645)	(1,130)
Stock based compensation		5,406	5,675	4,671
Changes in valuation allowance		(216)	(235)	(776)
Federal statute lapses		(2,265)	(6,746)	0
Integration of acquired technologies		33,015	4,715	3,486
Other		2,024	4,838	(235)
Provision (Benefit) for income taxes		55,676	13,018	$ 27,866
Federal research and development tax credit		$ 12,400	$ 19,000
Federal research and development tax credit, expiry date			Dec. 31, 2013

[1] As a result of the reinstatement of the U.S. federal research tax credit in fiscal 2013, the Company reflected a tax benefit of approximately $19.0 million in the above amount for the period January 1, 2012 through October 31, 2013. The credit expired on December 31, 2013, resulting in only two months of credit for fiscal 2014. The credit was reinstated in fiscal 2015, resulting in a tax benefit of approximately $12.4 million in the above amount for the period January 1 through December 31, 2014.

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Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Deferred Tax Assets, Gross [Abstract]
Accruals and reserves	$ 40,373	$ 28,608
Deferred revenue	36,460	42,766
Deferred compensation	69,716	56,920
Capitalized costs	60,998	66,616
Capitalized research and development costs	24,748	32,710
Stock compensation	18,001	18,508
Tax loss carryovers	50,987	64,273
Foreign tax credit carryovers	1,064	18,846
Research and other tax credit carryovers	80,327	110,247
Other	5,340	4,689
Gross deferred tax assets	388,014	444,183
Valuation allowance	(48,700)	(45,996)
Total deferred tax assets	339,314	398,187
Deferred Tax Liabilities, Gross [Abstract]
Intangible assets	66,345	81,218
Undistributed earnings of foreign subsidiaries	933	726
Total deferred tax liabilities	67,278	81,944
Net deferred tax assets	$ 272,036	$ 316,243

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Income Taxes - Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities (Detail) $ in Thousands	12 Months Ended
	Oct. 31, 2015 USD ($)
Federal
Net Operating Loss and Tax Credit Carryforward [Line Items]
Net operating loss carryforward	$ 108,533
Credit carryforward	$ 120,243
Federal | Minimum
Net Operating Loss and Tax Credit Carryforward [Line Items]
Net operating loss carryforward, expiration date	2016
Credit carryforward, expiration date	2019
Federal | Maximum
Net Operating Loss and Tax Credit Carryforward [Line Items]
Net operating loss carryforward, expiration date	2034
Credit carryforward, expiration date	2035
Foreign Tax Credit Used in Domestic Country
Net Operating Loss and Tax Credit Carryforward [Line Items]
Credit carryforward	$ 4,586
Foreign Tax Credit Used in Domestic Country | Minimum
Net Operating Loss and Tax Credit Carryforward [Line Items]
Credit carryforward, expiration date	2017
Foreign Tax Credit Used in Domestic Country | Maximum
Net Operating Loss and Tax Credit Carryforward [Line Items]
Credit carryforward, expiration date	2023
International Foreign
Net Operating Loss and Tax Credit Carryforward [Line Items]
Credit carryforward	$ 10,104
Credit carryforward, expiration date	Indefinite
California Research
Net Operating Loss and Tax Credit Carryforward [Line Items]
Credit carryforward	$ 135,858
Credit carryforward, expiration date	Indefinite
Other State Research
Net Operating Loss and Tax Credit Carryforward [Line Items]
Credit carryforward	$ 5,395
Other State Research | Minimum
Net Operating Loss and Tax Credit Carryforward [Line Items]
Credit carryforward, expiration date	2016
Other State Research | Maximum
Net Operating Loss and Tax Credit Carryforward [Line Items]
Credit carryforward, expiration date	2030
State Net
Net Operating Loss and Tax Credit Carryforward [Line Items]
Net operating loss carryforward	$ 217,914
State Net | Minimum
Net Operating Loss and Tax Credit Carryforward [Line Items]
Net operating loss carryforward, expiration date	2016
State Net | Maximum
Net Operating Loss and Tax Credit Carryforward [Line Items]
Net operating loss carryforward, expiration date	2035

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Income Taxes - Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Income Tax Disclosure [Abstract]
Beginning balance	$ 124,102	$ 117,760
Increases in unrecognized tax benefits related to prior year tax positions	10,922	2,037
Decreases in unrecognized tax benefits related to prior year tax positions	(7,526)	(23,271)
Increases in unrecognized tax benefits related to current year tax positions	13,232	35,277
Decreases in unrecognized tax benefits related to settlements with taxing authorities	0	(1,858)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(5,996)	(8,816)
Increases in unrecognized tax benefits acquired	976	3,575
Changes in unrecognized tax benefits due to foreign currency translation	(3,656)	(602)
Ending Balance	$ 132,054	$ 124,102

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Income Taxes - Subsidiaries Remain Subject to Tax Examination (Detail)	12 Months Ended
	Oct. 31, 2015
United States - Synopsys
Income Tax Examination [Line Items]
Year(s) Subject to Examination	Fiscal 2015
United States - Magma Design Automation
Income Tax Examination [Line Items]
Year(s) Subject to Examination	Fiscal 2012
California - Synopsys
Income Tax Examination [Line Items]
Year(s) Subject to Examination	Fiscal years after 2010
California - Magma Design Automation
Income Tax Examination [Line Items]
Year(s) Subject to Examination	Fiscal years after 2010
Hungary
Income Tax Examination [Line Items]
Year(s) Subject to Examination	Fiscal years after 2008
Ireland, Japan, and Taiwan
Income Tax Examination [Line Items]
Year(s) Subject to Examination	Fiscal years after 2009

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Income Taxes - Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended					6 Months Ended	12 Months Ended
	Oct. 31, 2015	Jan. 31, 2015	Oct. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Taxes [Line Items]
Increase in valuation allowance							$ 2,700
Unrecognized deferred tax assets	$ 83,300						83,300
Undistributed foreign earnings	1,047,500						1,047,500
Tax on deferred undistributed foreign earnings							232,000
Increase in gross unrecognized tax benefits							8,000
Gross unrecognized tax benefits	132,054		$ 124,102			$ 117,760	132,054	$ 124,102	$ 117,760
Unrecognized tax benefits affecting effective tax rate	129,400		120,500				129,400	120,500
The sum of the amounts of estimated penalties and interest recognized in the period arising from income tax examinations							600	500	$ 200
The amount of estimated penalties and interest accrued as of the balance sheet date arising from income tax examinations	2,200		1,300				2,200	1,300
Estimated potential decrease in underlying unrecognized tax benefits, minimum	0						0
Estimated potential decrease in underlying unrecognized tax benefits, maximum	36,000						36,000
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities							$ 0	$ 1,858
Internal Revenue Service (IRS) | Fiscal Year 2012
Taxes [Line Items]
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities					$ 10,000	6,000
Decrease in deferred tax assets						4,900
Tax impact from tax settlements						$ 1,100
Internal Revenue Service (IRS) | Fiscal Year 2013
Taxes [Line Items]
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities			$ 5,500
Taiwan | Fiscal Years 2009 and 2010
Taxes [Line Items]
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities				$ 5,100
Tax impact from tax settlements				$ 3,900
Taiwan | Fiscal Year 2014
Taxes [Line Items]
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities	1,200
Taiwan | Fiscal Year 2013
Taxes [Line Items]
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities	$ 1,200
Fiscal Year 2012 | Taiwan
Taxes [Line Items]
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities		$ 1,100

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Other Income (Expense), Net - Components of Other Income (expense), Net (Detail) - USD ($) $ in Thousands		12 Months Ended
		Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Other Income and Expenses [Abstract]
Interest income		$ 2,785	$ 1,302	$ 1,891
Interest expense		(2,814)	(1,895)	(1,696)
Gain (loss) on assets related to deferred compensation plan		3,701	10,856	18,453
Foreign currency exchange gain (loss)		6,363	1,195	6,026
Other, net(1)	[1]	5,109	11,967	4,499
Total		$ 15,144	$ 23,425	$ 29,173

[1] Note 6. Fair Value Measures.

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Segment Disclosure - Revenues Related to Operations by Geographic Areas (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 587,159	$ 555,805	$ 557,204	$ 542,043	$ 539,012	$ 521,812	$ 517,697	$ 478,951	$ 2,242,211	$ 2,057,472	$ 1,962,214
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									1,143,816	1,020,654	939,749
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									300,352	272,911	273,041
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									218,794	238,588	264,141
Asia-Pacific And Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									$ 579,249	$ 525,319	$ 485,283

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Segment Disclosure - Property and Equipment By Geographic Areas (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Oct. 31, 2014
Long-Lived Assets by Geographical Areas [Line Items]
Property and equipment, net	$ 263,077	$ 249,098
United States
Long-Lived Assets by Geographical Areas [Line Items]
Property and equipment, net	192,075	181,019
Other Countries
Long-Lived Assets by Geographical Areas [Line Items]
Property and equipment, net	$ 71,002	$ 68,079

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Segment Disclosure - Additional information (Detail)	12 Months Ended
	Oct. 31, 2015 Segment Customer	Oct. 31, 2014 Segment Customer	Oct. 31, 2013 Segment Customer
Segment Reporting Information [Line Items]
Number of reportable operating segment | Segment	1	1	1
Number of major customers | Customer	1	1	1
Customer Concentration Risk [Member] | Revenue
Segment Reporting Information [Line Items]
Percentage of revenues contributed by major customers	12.80%	10.50%	11.30%

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Supplementary Data - Selected Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 587,159	$ 555,805	$ 557,204	$ 542,043	$ 539,012	$ 521,812	$ 517,697	$ 478,951	$ 2,242,211	$ 2,057,472	$ 1,962,214
Gross margin	447,315	426,334	432,232	417,410	417,591	406,282	403,612	373,102	1,723,291	1,600,587	1,508,662
Income before provision for income taxes	55,918	65,193	83,884	76,615	62,128	70,771	68,059	71,184	$ 281,610	$ 272,142	$ 275,666
Net income	$ 49,762	$ 55,387	$ 55,596	$ 65,189	$ 62,455	$ 65,656	$ 63,317	$ 67,696
Net income per share
Basic (in USD per share)	$ 0.32	$ 0.36	$ 0.36	$ 0.42	$ 0.40	$ 0.42	$ 0.41	$ 0.44	$ 1.46	$ 1.67	$ 1.62
Diluted (in USD per share)	$ 0.31	$ 0.35	$ 0.35	$ 0.41	$ 0.39	$ 0.42	$ 0.40	$ 0.43	$ 1.43	$ 1.64	$ 1.58