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Segment Disclosure
 3 Months Ended
Jan. 31, 2023
Segment Reporting [Abstract]  
Segment Disclosure Segment Disclosure
Segment reporting is based upon the “management approach,” i.e., how management organizes our operating segments for which separate financial information is (1) available and (2) evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance. Our CODM is our CEO.
As described in Note 2, Summary of Significant Accounting Policies and Basis of Presentation, effective in the first quarter of fiscal 2023, we realigned our organizational structure to evaluate the results of our Design IP business separately, and our CODM now allocates resources and assesses performance against our key growth strategies based on this new organizational structure. As a result, we changed our reportable segments from two reportable segments to three reportable segments.
Our three reportable segments are: (1) Design Automation, which includes EDA tools, system integration solutions and other associated revenue categories, (2) Design IP, which includes IP products, and (3) Software Integrity, which includes a comprehensive solution for building integrity - security, quality and compliance testing - into the customers’ software development lifecycle and supply chain. Prior period reportable segment results and related disclosures have been reclassified to reflect our current reportable segments.
The financial information provided to and used by the CODM to assist in making operational decisions, allocating resources, and assessing performance includes consolidated financial information as well as revenue, adjusted operating income, and adjusted operating margin information for the Design Automation, Design IP and Software Integrity segments, accompanied by disaggregated information relating to revenue by geographic region.
Information by reportable segment was as follows:
 Three Months Ended 
 January 31,
 20232022
 (in thousands)
Total Segments:
Revenue$1,361,340 $1,270,255 
Adjusted operating income479,167 459,391 
Adjusted operating margin35 %36 %
Design Automation:
Revenue$889,846 $803,862 
Adjusted operating income346,009 293,271 
Adjusted operating margin39 %36 %
Design IP:
Revenue$343,651 $358,833 
Adjusted operating income117,625 154,121 
Adjusted operating margin34 %43 %
Software Integrity:
Revenue$127,843 $107,560 
Adjusted operating income15,533 11,999 
Adjusted operating margin12 %11 %
Certain operating expenses are not allocated to the segments and are managed at a consolidated level. The unallocated expenses managed at a consolidated level, including amortization of intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan, restructuring charges, and certain other operating expenses, were presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income:
 Three Months Ended 
 January 31,
 20232022
 (in thousands)
Total segment adjusted operating income$479,167 $459,391 
Reconciling items:
Amortization of intangible assets(25,357)(22,360)
Stock-based compensation expense(134,227)(95,771)
Deferred compensation plan(20,197)19,599 
Restructuring charges(40,859)(11,746)
Other(2,595)(2,077)
Total operating income$255,932 $347,036 
The CODM does not use total assets by segment to evaluate segment performance or allocate resources. As a result, total assets by segment are not required to be disclosed.
In allocating revenue to particular geographic areas, the CODM considers where individual “seats” or licenses to our products are located. Revenue is defined as revenue from external customers. Revenue related to operations in the United States and other geographic areas were: 
 Three Months Ended 
 January 31,
 20232022
 (in thousands)
Revenue:
United States$671,782 $610,334 
Europe135,007 132,717 
China197,778 212,823 
Korea145,792 114,355 
Other210,981 200,026 
Consolidated$1,361,340 $1,270,255 
Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.