XML 35 R25.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment Disclosure
 3 Months Ended
Jan. 31, 2024
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.
We have three reportable segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, system integration products and services, digital, custom and field programmable gate array (FPGA) IC design software, verification software and hardware products, manufacturing software products and other; (2) Design IP, which includes our Design IP products; and (3) Software Integrity, which includes solutions that test software code for security vulnerabilities and quality defects, as well as professional and managed services.
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 is as follows:
 Three Months Ended 
 January 31,
 20242023
 (in thousands)
Total Segments:
Revenue$1,649,230 $1,361,340 
Adjusted operating income638,358 479,167 
Adjusted operating margin39 %35 %
Design Automation:
Revenue$985,339 $889,846 
Adjusted operating income364,883 346,009 
Adjusted operating margin37 %39 %
Design IP:
Revenue$525,650 $343,651 
Adjusted operating income249,494 117,625 
Adjusted operating margin47 %34 %
Software Integrity:
Revenue$138,241 $127,843 
Adjusted operating income23,981 15,533 
Adjusted operating margin17 %12 %
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 acquired intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan, restructuring charges, and acquisition/divestiture related items, are 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,
 20242023
 (in thousands)
Total segment adjusted operating income$638,358 $479,167 
Reconciling items:
Amortization of acquired intangible assets
(27,053)(25,357)
Stock-based compensation expense(180,652)(134,227)
Deferred compensation plan(40,101)(20,197)
Restructuring charges— (40,859)
Acquisition/divestiture related items
(30,932)(2,595)
Total operating income$359,620 $255,932 
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 are: 
 Three Months Ended 
 January 31,
 20242023
 (in thousands)
Revenue:
United States$807,618 $671,782 
Europe159,113 135,007 
China249,975 197,778 
Korea184,600 145,792 
Other247,924 210,981 
Consolidated$1,649,230 $1,361,340 
Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.