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Segment Disclosure
3 Months Ended
Jan. 31, 2025
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 two 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; and (2) Design IP, which includes our interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation 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 and Design IP segments, accompanied by disaggregated information relating to revenue by geographic region.
The Software Integrity business constituted its own reportable segment under Topic 280. In accordance with applicable accounting guidance, the results of the Software Integrity business were presented as discontinued operations in the condensed consolidated statements of income and, as such, have been excluded from both continuing operations and segment results for all periods presented. See Note 3. Discontinued Operations of the Notes to Condensed Consolidated Financial Statements.
Information by reportable segment is as follows:
 Three Months Ended 
 January 31,
 20252024
 (in thousands)
Total Segments:
Revenue$1,455,315 $1,510,989 
Adjusted operating income531,217 605,192 
Adjusted operating margin37 %40 %
Design Automation:
Revenue$1,020,216 $985,339 
Adjusted operating income404,670 359,465 
Adjusted operating margin40 %36 %
Design IP:
Revenue$435,099 $525,650 
Adjusted operating income126,547 245,727 
Adjusted operating margin29 %47 %
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, 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 from continuing operations:
 Three Months Ended 
 January 31,
 20252024
 (in thousands)
Total segment adjusted operating income$531,217 $605,192 
Reconciling items:
Amortization of acquired intangible assets
(12,596)(16,684)
Stock-based compensation expense(186,463)(165,505)
Deferred compensation plan(19,638)(39,445)
Acquisition/divestiture related items
(60,681)(30,932)
Total operating income$251,839 $352,626 
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,
 20252024
 (in thousands)
Revenue:
United States$610,710 $723,821 
Europe153,671 137,269 
China173,948 241,064 
Korea250,385 182,044 
Other266,601 226,791 
Consolidated$1,455,315 $1,510,989 
Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.