2017 Q3 Form 10-Q Financial Statement

#000088324117000007 Filed on August 18, 2017

View on sec.gov

Income Statement

Concept 2017 Q3 2016 Q3
Revenue $695.4M $615.2M
YoY Change 13.03% 10.69%
Cost Of Revenue $169.5M $139.7M
YoY Change 21.38% 7.88%
Gross Profit $525.8M $475.5M
YoY Change 10.58% 11.54%
Gross Profit Margin 75.62% 77.3%
Selling, General & Admin $177.9M $169.9M
YoY Change 4.71% 5.57%
% of Gross Profit 33.83% 35.72%
Research & Development $228.7M $221.9M
YoY Change 3.06% 12.06%
% of Gross Profit 43.49% 46.66%
Depreciation & Amortization $47.10M $50.60M
YoY Change -6.92% -3.44%
% of Gross Profit 8.96% 10.64%
Operating Expenses $420.5M $398.8M
YoY Change 5.43% 9.31%
Operating Profit $105.4M $76.72M
YoY Change 37.34% 24.79%
Interest Expense $2.320M $1.208M
YoY Change 92.05% 101.67%
% of Operating Profit 2.2% 1.57%
Other Income/Expense, Net $7.421M $8.509M
YoY Change -12.79% 129.29%
Pretax Income $112.8M $85.23M
YoY Change 32.34% 30.74%
Income Tax -$3.960M $20.51M
% Of Pretax Income -3.51% 24.07%
Net Earnings $116.8M $64.72M
YoY Change 80.4% 16.85%
Net Earnings / Revenue 16.79% 10.52%
Basic Earnings Per Share $0.78 $0.43
Diluted Earnings Per Share $0.75 $0.42
COMMON SHARES
Basic Shares Outstanding 150.2M shares 151.2M shares
Diluted Shares Outstanding 154.7M shares 153.9M shares

Balance Sheet

Concept 2017 Q3 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.303B $1.090B
YoY Change 19.51% -2.94%
Cash & Equivalents $1.155B $946.3M
Short-Term Investments $147.5M $143.5M
Other Short-Term Assets $125.1M $93.60M
YoY Change 33.65% -41.65%
Inventory
Prepaid Expenses
Receivables $411.3M $317.1M
Other Receivables $55.70M $51.40M
Total Short-Term Assets $1.895B $1.552B
YoY Change 22.07% -4.64%
LONG-TERM ASSETS
Property, Plant & Equipment $262.0M $258.8M
YoY Change 1.25% -0.72%
Goodwill $2.661B $2.515B
YoY Change 5.79% 7.68%
Intangibles $248.3M $295.4M
YoY Change -15.94% -7.24%
Long-Term Investments
YoY Change
Other Assets $215.1M $190.6M
YoY Change 12.84% 2.51%
Total Long-Term Assets $3.784B $3.557B
YoY Change 6.4% 6.92%
TOTAL ASSETS
Total Short-Term Assets $1.895B $1.552B
Total Long-Term Assets $3.784B $3.557B
Total Assets $5.679B $5.109B
YoY Change 11.16% 3.13%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $19.87M $26.22M
YoY Change -24.2% 40.27%
Accrued Expenses $381.6M $301.0M
YoY Change 26.78% 0.4%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $298.0M $277.5M
YoY Change 7.39% 46.05%
Total Short-Term Liabilities $1.764B $1.664B
YoY Change 6.06% 14.0%
LONG-TERM LIABILITIES
Long-Term Debt $137.8M $0.00
YoY Change -100.0%
Other Long-Term Liabilities $247.0M $213.3M
YoY Change 15.82% 4.49%
Total Long-Term Liabilities $384.8M $213.3M
YoY Change 80.44% -5.88%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.764B $1.664B
Total Long-Term Liabilities $384.8M $213.3M
Total Liabilities $2.256B $1.988B
YoY Change 13.47% 9.49%
SHAREHOLDERS EQUITY
Retained Earnings $2.277B $1.894B
YoY Change 20.23% 12.17%
Common Stock $1.503M $1.514M
YoY Change -0.73% -2.89%
Preferred Stock
YoY Change
Treasury Stock (at cost) $419.4M $270.8M
YoY Change 54.86% 342.48%
Treasury Stock Shares 7.024M shares 5.827M shares
Shareholders Equity $3.423B $3.121B
YoY Change
Total Liabilities & Shareholders Equity $5.679B $5.109B
YoY Change 11.16% 3.13%

Cashflow Statement

Concept 2017 Q3 2016 Q3
OPERATING ACTIVITIES
Net Income $116.8M $64.72M
YoY Change 80.4% 16.85%
Depreciation, Depletion And Amortization $47.10M $50.60M
YoY Change -6.92% -3.44%
Cash From Operating Activities $279.8M $251.7M
YoY Change 11.16% -8.47%
INVESTING ACTIVITIES
Capital Expenditures -$20.10M -$34.30M
YoY Change -41.4% -77.03%
Acquisitions
YoY Change
Other Investing Activities -$6.400M -$12.70M
YoY Change -49.61% 6250.0%
Cash From Investing Activities -$26.50M -$46.90M
YoY Change -43.5% -68.61%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -92.70M -86.80M
YoY Change 6.8% 1601.96%
NET CHANGE
Cash From Operating Activities 279.8M 251.7M
Cash From Investing Activities -26.50M -46.90M
Cash From Financing Activities -92.70M -86.80M
Net Change In Cash 160.6M 118.0M
YoY Change 36.1% -2.07%
FREE CASH FLOW
Cash From Operating Activities $279.8M $251.7M
Capital Expenditures -$20.10M -$34.30M
Free Cash Flow $299.9M $286.0M
YoY Change 4.86% -32.59%

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24465000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
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21338000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
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39478000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
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57337000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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82650000 USD
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CY2017Q3 us-gaap Finite Lived Intangible Assets Gross
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248335000 USD
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278000 USD
us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
2877000 USD
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-2193000 USD
us-gaap Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
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-4042000 USD
CY2017Q3 us-gaap Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
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515000 USD
us-gaap Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
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1838000 USD
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15000 USD
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1000 USD
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us-gaap General And Administrative Expense
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123798000 USD
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46350000 USD
us-gaap General And Administrative Expense
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170654000 USD
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132694000 USD
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9741000 USD
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475527000 USD
us-gaap Gross Profit
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1388062000 USD
CY2017Q3 us-gaap Gross Profit
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525835000 USD
us-gaap Gross Profit
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0 USD
us-gaap Impairment Of Investments
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0 USD
CY2017Q3 us-gaap Impairment Of Investments
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0 USD
us-gaap Impairment Of Investments
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1300000 USD
us-gaap Impairment Of Investments
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1300000 USD
CY2016Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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85231000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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246796000 USD
CY2017Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
112791000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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283172000 USD
CY2016Q3 us-gaap Income Tax Expense Benefit
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20513000 USD
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52667000 USD
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us-gaap Income Tax Expense Benefit
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26527000 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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-41749000 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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36129000 USD
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10195000 USD
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-34692000 USD
us-gaap Increase Decrease In Income Taxes
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-3314000 USD
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-19169000 USD
us-gaap Increase Decrease In Other Noncurrent Assets
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8118000 USD
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33416000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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22941000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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13636000 USD
CY2016Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2017Q3 us-gaap Interest Expense
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2320000 USD
us-gaap Interest Expense
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5487000 USD
CY2016Q3 us-gaap Interest Income Other
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1031000 USD
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
2500000 shares
CY2017Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
4469000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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4327000 shares
CY2016Q4 us-gaap Intangible Assets Net Excluding Goodwill
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CY2017Q3 us-gaap Intangible Assets Net Excluding Goodwill
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248335000 USD
CY2016Q3 us-gaap Interest Expense
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1208000 USD
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2015000 USD
us-gaap Interest Income Other
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4747000 USD
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CY2017Q3 us-gaap Liabilities
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2255771000 USD
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5240365000 USD
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5678939000 USD
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1714946000 USD
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479285000 USD
us-gaap License And Maintenance Revenue
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1427740000 USD
CY2017Q3 us-gaap License And Maintenance Revenue
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503530000 USD
us-gaap License And Maintenance Revenue
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1493991000 USD
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66885000 USD
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100251000 USD
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263310000 USD
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us-gaap Maintenance Revenue
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192588000 USD
CY2017Q3 us-gaap Maintenance Revenue
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91600000 USD
us-gaap Maintenance Revenue
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us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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438973000 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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449711000 USD
CY2016Q3 us-gaap Net Income Loss
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194129000 USD
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116751000 USD
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12158000 USD
CY2017Q3 us-gaap Nonoperating Income Expense
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7421000 USD
us-gaap Nonoperating Income Expense
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27322000 USD
CY2016Q3 us-gaap Number Of Reportable Segments
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1 Segment
us-gaap Number Of Reportable Segments
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1 Segment
CY2017Q3 us-gaap Number Of Reportable Segments
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1 Segment
us-gaap Number Of Reportable Segments
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1 Segment
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105370000 USD
us-gaap Operating Income Loss
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255850000 USD
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85674000 USD
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185569000 USD
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33000 USD
us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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92000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax
20000 USD
us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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2927000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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3026000 USD
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12327000 USD
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us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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4640000 USD
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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CY2017Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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8517000 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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19005000 USD
CY2016Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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1828000 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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3112000 USD
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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us-gaap Other Depreciation And Amortization
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21014000 USD
CY2017Q3 us-gaap Other Depreciation And Amortization
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us-gaap Other Depreciation And Amortization
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23806000 USD
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us-gaap Other Nonoperating Income Expense
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CY2017Q3 us-gaap Other Nonoperating Income Expense
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us-gaap Other Nonoperating Income Expense
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2851000 USD
CY2016Q4 us-gaap Other Sundry Liabilities Noncurrent
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CY2017Q3 us-gaap Other Sundry Liabilities Noncurrent
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56001000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Repurchase Of Other Equity
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us-gaap Payments Related To Tax Withholding For Share Based Compensation
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25718000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments To Acquire Intangible Assets
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60056000 USD
us-gaap Payments To Acquire Intangible Assets
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187624000 USD
us-gaap Payments To Acquire Other Investments
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1002000 USD
us-gaap Payments To Acquire Other Investments
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us-gaap Payments To Acquire Other Productive Assets
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2959000 USD
us-gaap Payments To Acquire Other Productive Assets
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3130000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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48249000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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50227000 USD
us-gaap Payments To Acquire Short Term Investments
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126216000 USD
us-gaap Payments To Acquire Short Term Investments
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137486000 USD
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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CY2017Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
2000000 shares
CY2016Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2017Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2016Q4 us-gaap Preferred Stock Value
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0 USD
CY2017Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
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104659000 USD
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125126000 USD
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13991000 USD
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185000000 USD
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270000000 USD
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2713000 USD
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us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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1785000 USD
us-gaap Proceeds From Sale And Maturity Of Other Investments
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839000 USD
us-gaap Proceeds From Sale Of Treasury Stock
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69884000 USD
us-gaap Proceeds From Sale Of Treasury Stock
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78718000 USD
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257035000 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
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262025000 USD
us-gaap Provision For Doubtful Accounts
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650000 USD
us-gaap Provision For Doubtful Accounts
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1289000 USD
us-gaap Repayments Of Debt
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us-gaap Repayments Of Debt
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38750000 USD
CY2016Q3 us-gaap Research And Development Expense
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221874000 USD
us-gaap Research And Development Expense
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634751000 USD
CY2017Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
228663000 USD
us-gaap Research And Development Expense
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664326000 USD
CY2016Q3 us-gaap Restructuring Charges
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0 USD
us-gaap Restructuring Charges
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2987000 USD
CY2017Q3 us-gaap Restructuring Charges
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6026000 USD
us-gaap Restructuring Charges
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31038000 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
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1947585000 USD
CY2017Q3 us-gaap Retained Earnings Accumulated Deficit
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2277499000 USD
CY2016Q3 us-gaap Revenues
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us-gaap Revenues
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1788813000 USD
CY2017Q3 us-gaap Revenues
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695381000 USD
us-gaap Revenues
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CY2016Q3 us-gaap Selling And Marketing Expense
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127328000 USD
us-gaap Selling And Marketing Expense
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370874000 USD
CY2017Q3 us-gaap Selling And Marketing Expense
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131520000 USD
us-gaap Selling And Marketing Expense
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395242000 USD
us-gaap Share Based Compensation
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72043000 USD
us-gaap Share Based Compensation
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79697000 USD
CY2016Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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19530000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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28028000 USD
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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20688000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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49344000 USD
CY2016Q4 us-gaap Short Term Investments
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CY2017Q3 us-gaap Short Term Investments
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147508000 USD
CY2016Q3 us-gaap Stock Issued During Period Shares Treasury Stock Reissued
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us-gaap Stock Issued During Period Shares Treasury Stock Reissued
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CY2017Q3 us-gaap Stock Issued During Period Shares Treasury Stock Reissued
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1316000 shares
us-gaap Stock Issued During Period Shares Treasury Stock Reissued
StockIssuedDuringPeriodSharesTreasuryStockReissued
3188000 shares
CY2017Q3 us-gaap Stock Repurchase Program Authorized Amount1
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500000000 USD
CY2017Q2 us-gaap Stock Repurchase Program Authorized Amount1
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500000000 USD
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500000000 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
3195146000 USD
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
3423168000 USD
CY2016Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
5811000 shares
CY2017Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
7024000 shares
CY2016Q3 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
2525000 shares
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
6889000 shares
CY2017Q3 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
1627000 shares
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
4401000 shares
CY2016Q4 us-gaap Treasury Stock Value
TreasuryStockValue
294052000 USD
CY2017Q3 us-gaap Treasury Stock Value
TreasuryStockValue
419370000 USD
CY2016Q3 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
120000000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
320000000 USD
CY2017Q3 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
120000000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
300000000 USD
CY2016Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
153890000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
154629000 shares
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
154683000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
154787000 shares
CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
151169000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
152129000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
150214000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
150460000 shares
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Effect of New Accounting Pronouncements</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in &#8220;Revenue Recognition (Topic 605).&#8221;&#160;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.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Since the issuance of Topic 606, the FASB has issued several amendments to the ASU, including deferral of the adoption date initially proposed, clarification on accounting for licenses of intellectual property, and identifying performance obligations.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Topic 606 will be effective for the Company beginning in fiscal 2019, including interim periods within that reporting period. The ASU permits two retrospective methods for adoption. The Company currently anticipates adopting Topic 606 using the modified retrospective method under which the cumulative effect of initially applying the guidance is recognized at the date of initial application.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Company derives the majority of its total revenue from Technology Subscription License (TSL) contracts. The Company believes that the promised licenses of software (i.e., functional intellectual property) and the promise to provide substantive, timely, and technologically relevant updates in its TSL contracts reflect inputs to a combined item that represents a single overall promise to provide customer access to a suite of EDA software in an integrated solution that will evolve as our customers&#8217; industries evolve through rapid technology changes. Accordingly, the Company has concluded that this single overall promise will be recognized as revenue over the term of the contract period. Accordingly, the Company expects that there will be no significant change in the nature and timing of revenue recognition for our TSL contracts under Topic 606.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The timing of revenue recognition for the Company&#8217;s upfront products, maintenance and professional services is expected to remain substantially unchanged.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Company continues to assess all potential impacts of Topic 606 on other multiple element software arrangements that combine many software-related deliverables. As the requirement to have Vendor-Specific Objective Evidence (VSOE) for undelivered elements is not necessary to separate revenue from delivered software licenses, which is an essential criterion for separation under current standard, revenue would no longer be recognized over the arrangement period for certain of the Company's term licenses and IP licenses. The Company is currently in the process of evaluating the impact of these changes on the remainder of its arrangements.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Topic 606 also requires the deferral of incremental costs of obtaining a contract with a customer. This will require the Company to capitalize incremental costs such as commissions and other costs directly related to obtaining customer contracts and amortize those costs over the period the assets are expected to contribute future cash flows, which will be over the life of the contract. Under the existing rules, the Company expenses commissions based on shipments.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In February 2016, the FASB issued ASU 2016-2, "Leases (Topic 842)," which supersedes the lease requirements in "Leases (Topic 840)." This ASU requires a lessee to recognize a right-of-use asset and a lease payment liability for most leases in the Consolidated Statement of Financial Position. This ASU also makes some changes to lessor accounting and aligns with the new revenue recognition guidance.&#160;This ASU will be effective for fiscal 2020, including interim periods within that reporting period, and earlier adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements and related disclosures. </font></div><div style="line-height:120%;padding-top:10px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory.&#8221;&#160;This ASU requires the immediate recognition of current and deferred income tax effects of intra-entity transfers of assets other than inventory.&#160;This ASU will be effective for fiscal 2019, including interim periods within that reporting period, and earlier adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements.</font></div></div>
us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Fiscal Year End.</font><font style="font-family:Arial;font-size:10pt;"> The Company&#8217;s fiscal year ends on the Saturday nearest to October&#160;31 and consists of 52 weeks, with the exception that approximately every five years, the Company has a 53-week year. Fiscal </font><font style="font-family:Arial;font-size:10pt;">2017</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">2016</font><font style="font-family:Arial;font-size:10pt;"> are both 52-week years. The </font><font style="font-family:Arial;font-size:10pt;">third</font><font style="font-family:Arial;font-size:10pt;"> fiscal quarters of fiscal </font><font style="font-family:Arial;font-size:10pt;">2017</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">2016</font><font style="font-family:Arial;font-size:10pt;"> ended on July 29, 2017 and July 30, 2016, respectively, and the prior fiscal year ended on October 29, 2016. For presentation purposes, the unaudited condensed consolidated financial statements and accompanying notes refer to the closest calendar month end.</font></div></div>
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Description of Business</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Synopsys, Inc. (Synopsys or the Company) provides software, intellectual property and services used by designers across the entire silicon to software spectrum, from engineers creating advanced semiconductors to software developers ensuring 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 (ICs), 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 design 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, the Company provides technical services and support to help its customers develop advanced chips and electronic systems. The Company is also a leading provider of software tools and services that improve the quality and security of software code in a wide variety of industries, including electronics, financial services, energy, industrials, and automotive.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Use of Estimates. </font><font style="font-family:Arial;font-size:10pt;">To prepare financial statements in conformity with U.S. GAAP, management must make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and may result in material effects on the Company&#8217;s operating results and financial position.</font></div></div>

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