Summary of Significant Accounting Policies (Tables)

12 Months Ended

Oct. 31, 2020

Accounting Policies [Abstract]

Schedule of Accounts Receivable, net

The following table represents the components of accounts receivable, net:

	October 31,
	2020			2019
	(in thousands)
Accounts receivable	$	758,341		$	524,766
Unbilled accounts receivable	50,932			38,175
Total accounts receivable	809,273			562,941
Less allowance for doubtful accounts	(28,564		)	(9,046		)
Total accounts receivable, net	$	780,709		$	553,895

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)
2020	$	9,046	$	20,875	$	(1,357	)	$	28,564
2019	$	5,613	$	11,669	$	(8,236	)	$	9,046
2018	$	5,165	$	3,368	$	(2,920	)	$	5,613

⁽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, 2020 and 2019 is as follows:

	October 31,
	2020			2019
	(in thousands)
Computer and other equipment	$	788,105		$	678,901
Buildings	129,746			68,708
Furniture and fixtures	72,702			72,437
Land	19,965			18,849
Leasehold improvements	242,830			273,985
	1,253,348			1,112,880
Less accumulated depreciation and amortization(1)	(769,530		)	(683,348		)
Total	$	483,818		$	429,532

⁽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	3-8
Buildings	30
Furniture and fixtures	5
Leasehold improvements	Shorter of the lease term or the estimated useful life

Components of Accounts Payable and Accrued Liabilities

The balance consisted of:

	October 31,
	2020		2019
	(in thousands)
Payroll and related benefits	$	492,626	$	417,157
Other accrued liabilities	101,035		69,487
Accounts payable	30,003		19,815
Total	$	623,664	$	506,459

Components of Other Long Term Liabilities

The balance consisted of:

	October 31,
	2020		2019
	(in thousands)
Deferred compensation liability (See Note 12)	$	269,737	$	249,822
Other long-term liabilities	14,774		73,903
Total	$	284,511	$	323,725

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,
	2020		2019		2018
	(in thousands, except per share amounts)
Numerator:
Net income attributed to Synopsys	$	664,347	$	532,367	$	432,518
Denominator:
Weighted average common shares for basic net income per share	151,135		149,872		149,036
Dilutive effect of common share equivalents from equity-based compensation	4,571		4,318		4,357
Weighted average common shares for diluted net income per share	155,706		154,190		153,393
Net income per share:
Basic	$	4.40	$	3.55	$	2.90
Diluted	$	4.27	$	3.45	$	2.82
Anti-dilutive employee stock-based awards excluded(1)	97		171		850

⁽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.