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Segment Disclosure
 6 Months Ended
Apr. 30, 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 of the Notes to Condensed Consolidated Financial Statements, effective in the first quarter of fiscal 2023, we realigned our organizational structure to evaluate the results of our Design IP business separately. Our CODM now regularly reviews disaggregated segment information, assesses performance against our key growth strategies and allocates resources based on this new organizational structure.
As a result, effective in the first quarter of fiscal 2023, we changed our reportable segments from two reportable segments to the following three reportable segments: (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. As such, 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 
 April 30,		Six Months Ended 
 April 30,
 2023202220232022
 (in thousands)
Total Segments:
Revenue$1,394,863 $1,279,229 $2,756,203 $2,549,484 
Adjusted operating income464,727 470,153 943,894 929,544 
Adjusted operating margin33 %37 %34 %36 %
Design Automation:
Revenue$927,568 $817,853 $1,817,414 $1,621,714 
Adjusted operating income360,090 321,389 706,099 614,660 
Adjusted operating margin39 %39 %39 %38 %
Design IP:
Revenue$335,176 $348,524 $678,827 $707,357 
Adjusted operating income86,321 135,739 203,946 289,860 
Adjusted operating margin26 %39 %30 %41 %
Software Integrity:
Revenue$132,119 $112,852 $259,962 $220,413 
Adjusted operating income18,316 13,025 33,849 25,024 
Adjusted operating margin14 %12 %13 %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 
 April 30,		Six Months Ended 
 April 30,
 2023202220232022
 (in thousands)
Total segment adjusted operating income$464,727 $470,153 $943,894 $929,544 
Reconciling items:
Amortization of intangible assets(24,454)(21,367)(49,811)(43,727)
Stock-based compensation expense(143,258)(110,061)(277,485)(205,832)
Deferred compensation plan(2,832)29,310 (23,029)48,909 
Restructuring charges(4,140)(311)(44,999)(12,057)
Other(2,711)(4,023)(5,306)(6,100)
Total operating income$287,332 $363,701 $543,264 $710,737 
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 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 
 April 30,		Six Months Ended 
 April 30,
 2023202220232022
 (in thousands)
Revenue:
United States$661,413 $577,881 $1,333,195 $1,188,215 
Europe156,956 116,191 291,963 248,908 
China196,427 215,563 394,205 428,386 
Korea156,816 119,210 302,608 233,564 
Other223,251 250,384 434,232 450,411 
Consolidated$1,394,863 $1,279,229 $2,756,203 $2,549,484 
Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.