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SEGMENT INFORMATION | 12 Months Ended
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Oct. 31, 2020
Segment Reporting [Abstract] |
SEGMENT INFORMATION | 21. SEGMENT INFORMATION We provide electronic design and test instruments and systems and related software, software design tools, and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment. Related services include start-up assistance, instrument productivity and application services and instrument calibration and repair. Additionally, we provide test, security and visibility solutions that validate, secure and optimize networks and applications from engineering concept to live deployment. We also offer customization, consulting and optimization services throughout the customer's product life cycle. In the first quarter of fiscal 2020, we completed an organizational change to manage our former Ixia Solutions Group within our Communications Solutions Group to enable us to create improved go-to market and product development alignment as well as accelerate solution synergies as new technologies emerge. As a result of this organizational change, we now have two reportable operating segments, Communications Solutions Group and Electronic Industrial Solutions Group. Prior period segment results were revised to conform to the current presentation. The organizational structure continues to include centralized enterprise functions that provide support across the groups. Our operating segments were determined based primarily on how the chief operating decision maker views and evaluates our operations. Segment operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to each segment and to assess performance. Other factors, including market separation and customer specific applications, go-to-market channels, products and services and manufacturing are considered in determining the formation of these operating segments. Descriptions of our two reportable segments are as follows: The Communications Solutions Group serves customers spanning the worldwide commercial communications and aerospace, defense and government end markets. The group's solutions consist of electronic design and test software, electronic measurement instruments, systems and related services. These solutions are used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment and networks. The Electronic Industrial Solutions Group provides test and measurement solutions and related services across a broad set of electronic industrial end markets, focusing on high-value applications in the automotive and energy industry and measurement solutions for consumer electronics, education, general electronics design and manufacturing, and semiconductor design and manufacturing. The group provides electronic design and test software, electronic measurement instruments and systems and related services used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. With the recent acquisition of Eggplant, a leading software test automation company, we now have the ability to provide automated software test capabilities that include artificial intelligence (AI) and machine learning to automatically identify, build and execute tests most critical to digital business success and a strong customer experience. A significant portion of the segments' expenses arise from shared services and infrastructure that we have historically provided to the segments in order to realize economies of scale and to efficiently use resources. These expenses, collectively called corporate charges, include legal, accounting, real estate, insurance services, information technology services, treasury and other corporate infrastructure expenses. Charges are allocated to the segments, and the allocations have been determined on a basis that we considered to be a reasonable reflection of the utilization of services provided to or benefits received by the segments. Newly acquired businesses are not allocated these charges until integrated into our shared services and infrastructure. The following tables reflect the results of our reportable segments under our management reporting system. These results are not necessarily in conformity with GAAP. The performance of each segment is measured based on several metrics, including income from operations. These results are used, in part, by the chief operating decision maker in evaluating the performance of, and in allocating resources to, each of the segments. Prior period amounts have been revised to conform to the new organizational structure. The profitability of each of the segments is measured after excluding share-based compensation expense, amortization of acquisition-related balances, acquisition and integration costs, restructuring and related costs, northern California wildfire-related impacts, goodwill impairment, legal settlement, gain on divestitures, interest income, interest expense and other items as noted in the reconciliations below.
| Communications Solutions Group |  | Electronic Industrial Solutions Group |  | Total Segments
| (in millions)
Year ended October 31, 2020: |  |  |  |  |
Total and segment revenue | $ | 3,132 |  |  | $ | 1,089 |  |  | $ | 4,221 |
Segment income from operations | $ | 773 |  |  | $ | 296 |  |  | $ | 1,069 |
Depreciation expense | $ | 81 |  |  | $ | 23 |  |  | $ | 104 |
Year ended October 31, 2019: |  |  |  |  |
Total revenue | $ | 3,168 |  |  | $ | 1,135 |  |  | $ | 4,303 |
Amortization of acquisition-related balances | 9 |  |  | — |  |  | 9 |
Total segment revenue | $ | 3,177 |  |  | $ | 1,135 |  |  | $ | 4,312 |
Segment income from operations | $ | 743 |  |  | $ | 294 |  |  | $ | 1,037 |
Depreciation expense | $ | 74 |  |  | $ | 22 |  |  | $ | 96 |
Year ended October 31, 2018: |  |  |  |  |
Total revenue | $ | 2,807 |  |  | $ | 1,071 |  |  | $ | 3,878 |
Amortization of acquisition-related balances | 36 |  |  | — |  |  | 36 |
Total segment revenue | $ | 2,843 |  |  | $ | 1,071 |  |  | $ | 3,914 |
Segment income from operations | $ | 490 |  |  | $ | 245 |  |  | $ | 735 |
Depreciation expense | $ | 80 |  |  | $ | 23 |  |  | $ | 103 |
The following table reconciles reportable segments' income from operations to our total enterprise income before taxes:
| Year Ended October 31,
| 2020 |  | 2019 |  | 2018
| (in millions)
Total reportable segments' income from operations | $ | 1,069 |  |  | $ | 1,037 |  |  | $ | 735 |
Share-based compensation | (93 | ) |  | (82 | ) |  | (59 | )
Restructuring and related costs | (5 | ) |  | (9 | ) |  | (17 | )
Amortization of acquisition-related balances | (224 | ) |  | (224 | ) |  | (265 | )
Acquisition and integration costs | (13 | ) |  | (9 | ) |  | (49 | )
Separation and related costs | — |  |  | — |  |  | (2 | )
Northern California wildfire-related impacts | 32 |  |  | — |  |  | (7 | )
Goodwill impairment | — |  |  | — |  |  | (709 | )
Legal settlement | — |  |  | — |  |  | (25 | )
Gain on divestitures | — |  |  | 1 |  |  | 20 |
Other | (1 | ) |  | (3 | ) |  | (16 | )
Income (loss) from operations, as reported | 765 |  |  | 711 |  |  | (394 | )
Interest income | 11 |  |  | 23 |  |  | 12 |
Interest expense | (78 | ) |  | (80 | ) |  | (83 | )
Other income (expense), net | 63 |  |  | 61 |  |  | 54 |
Income (loss) before taxes, as reported | $ | 761 |  |  | $ | 715 |  |  | $ | (411 | )
Major customers. No customer represented 10 percent or more of our total revenue in 2020, 2019 or 2018. The following table presents assets and capital expenditures directly managed by each segment. Unallocated assets primarily consist of cash and cash equivalents, prepaid expenses, investments, long-term and other receivables and other assets. Prior period amounts have been reclassified to conform to the current period presentation.
| Communications Solutions Group |  | Electronic Industrial Solutions Group |  | Total Segments
| (in millions)
As of and for the year ended October 31, 2020: |  |  |  |  |
Segment assets | $ | 3,832 |  |  | $ | 1,334 |  |  | $ | 5,166 |
Capital expenditures | $ | 90 |  |  | $ | 27 |  |  | $ | 117 |
As of and for the year ended October 31, 2019: |  |  |  |  |
Segment assets | $ | 3,649 |  |  | $ | 916 |  |  | $ | 4,565 |
Capital expenditures | $ | 91 |  |  | $ | 29 |  |  | $ | 120 |
The following table reconciles segment assets to our total assets:
| October 31,
| 2020 |  | 2019
| (in millions)
Total reportable segments' assets | $ | 5,166 |  |  | $ | 4,565 |
Cash and cash equivalents | 1,756 |  |  | 1,598 |
Long-term investments | 61 |  |  | 46 |
Long-term deferred tax assets | 740 |  |  | 755 |
Accumulated amortization of intangibles | (972 | ) |  | (752 | )
Other unallocated assets | 467 |  |  | 411 |
Total assets | $ | 7,218 |  |  | $ | 6,623 |
The other unallocated assets primarily includes pension assets. The following tables present summarized information for revenue and long-lived assets by geographic region. Revenues from external customers are generally attributed to countries based upon the customer's location. Long-lived assets consist of property, plant, and equipment, operating lease right-of-use assets and other long-term assets excluding intangible assets.
| United States |  | China (1) |  | Japan |  | Rest of the World |  | Total
| (in millions)
Revenue: |  |  |  |  |  |  |  |  |
Year ended October 31, 2020 | $ | 1,523 |  |  | $ | 863 |  |  | $ | 367 |  |  | $ | 1,468 |  |  | $ | 4,221 |
Year ended October 31, 2019 | $ | 1,584 |  |  | $ | 822 |  |  | $ | 389 |  |  | $ | 1,508 |  |  | $ | 4,303 |
Year ended October 31, 2018 | $ | 1,398 |  |  | $ | 710 |  |  | $ | 342 |  |  | $ | 1,428 |  |  | $ | 3,878 |
(1) China also includes Hong Kong revenue.
| United States |  | Japan |  | Malaysia |  | U.K. | Rest of the World |  | Total
| (in millions)
Long-lived assets: |  |  |  |  |  |  |  |  |  |
October 31, 2020 | $ | 387 |  |  | $ | 272 |  |  | $ | 81 |  |  | $ | 179 |  | $ | 251 |  |  | $ | 1,170 |
October 31, 2019 | $ | 314 |  |  | $ | 245 |  |  | $ | 75 |  |  | $ | 177 |  | $ | 129 |  |  | $ | 940 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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