Revenue

9 Months Ended

Jul. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregated Revenue

The following table showed the percentage of revenue by product groups:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2022		2021		2022		2021
EDA	50.0	%	55.8	%	49.9	%	56.2	%
IP & System Integration	39.7	%	34.4	%	40.7	%	34.2	%
Software Integrity Products & Services	9.5	%	9.3	%	8.9	%	9.3	%
Other	0.8	%	0.5	%	0.5	%	0.3	%
Total	100.0	%	100.0	%	100.0	%	100.0	%

Contract Balances

The contract assets indicated below are presented as prepaid and other current assets in the unaudited condensed consolidated balance sheets. The contract assets are transferred to receivables when the rights to invoice and receive payment become unconditional. Unbilled receivables are presented as accounts receivable, net, in the unaudited condensed consolidated balance sheets.

Contract balances were as follows:

	As of
	July 31, 2022		October 31, 2021
	(in thousands)
Contract assets, net	$	280,507	$	284,574
Unbilled receivables	$	41,863	$	35,589
Deferred revenue	$	1,920,558	$	1,653,926

During the three and nine months ended July 31, 2022, we recognized revenue of $171.2 million and $1.1 billion, respectively, that was included in the deferred revenue balance as of October 31, 2021.

Contracted but unsatisfied or partially unsatisfied performance obligations were approximately $7.1 billion as of July 31, 2022, which includes $998.1 million in non-cancellable Flexible Spending Account (FSA) commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date. We have elected to exclude future sales-based royalty payments from the remaining performance obligations. Approximately 42% of the contracted but unsatisfied or partially unsatisfied performance obligations as of July 31, 2022, excluding non-cancellable FSA, are expected to be recognized over the next 12 months, with the remainder recognized thereafter.

During the three and nine months ended July 31, 2022, we recognized $33.9 million and $103.5 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods. During the three and nine months ended July 31, 2021, we recognized $27.9 million and $88.7 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods.

Costs of Obtaining a Contract with Customer

Capitalized commission costs, net of accumulated amortization, as of July 31, 2022 were $105.0 million and included in other long-term assets in our unaudited condensed consolidated balance sheets. Amortization of these assets was $19.9 million and $54.4 million during the three and nine months ended July 31, 2022, respectively, and included in sales and marketing expense in our unaudited condensed consolidated statements of income. Amortization of these assets was $16.5 million and $47.0 million during the three and nine months ended July 31, 2021, respectively, and included in sales and marketing expense in our unaudited condensed consolidated statements of income.