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SEGMENT INFORMATION
 12 Months Ended
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