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, |  |
| 2024 |  | 2023 |  |  |  |
| (in thousands)
Total Segments: |  |  |  |  |  |  |
Revenue | $ | 1,649,230 |  |  | $ | 1,361,340 |  |  |  |  |
Adjusted operating income | 638,358 |  |  | 479,167 |  |  |  |  |
Adjusted operating margin | 39 | % |  | 35 | % |  |  |  |
Design Automation: |  |  |  |  |  |  |
Revenue | $ | 985,339 |  |  | $ | 889,846 |  |  |  |  |
Adjusted operating income | 364,883 |  |  | 346,009 |  |  |  |  |
Adjusted operating margin | 37 | % |  | 39 | % |  |  |  |
Design IP: |  |  |  |  |  |  |
Revenue | $ | 525,650 |  |  | $ | 343,651 |  |  |  |  |
Adjusted operating income | 249,494 |  |  | 117,625 |  |  |  |  |
Adjusted operating margin | 47 | % |  | 34 | % |  |  |  |
Software Integrity: |  |  |  |  |  |  |
Revenue | $ | 138,241 |  |  | $ | 127,843 |  |  |  |  |
Adjusted operating income | 23,981 |  |  | 15,533 |  |  |  |  |
Adjusted operating margin | 17 | % |  | 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, |  |
| 2024 |  | 2023 |  |  |  |
| (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, |  |
| 2024 |  | 2023 |  |  |  |
| (in thousands)
Revenue: |  |  |  |  |  |  |
United States | $ | 807,618 |  |  | $ | 671,782 |  |  |  |  |
Europe | 159,113 |  |  | 135,007 |  |  |  |  |
China | 249,975 |  |  | 197,778 |  |  |  |  |
Korea | 184,600 |  |  | 145,792 |  |  |  |  |
Other | 247,924 |  |  | 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.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration