XML 36 R25.htm IDEA: XBRL DOCUMENT v3.25.1
Segment Disclosure
6 Months Ended
Apr. 30, 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 
 April 30,
Six Months Ended 
 April 30,
 2025202420252024
 (in thousands)
Total Segments:
Revenue$1,604,266 $1,454,712 $3,059,581 $2,965,701 
Adjusted operating income609,270 543,042 1,140,487 1,148,234 
Adjusted operating margin38 %37 %37 %39 %
Design Automation:
Revenue$1,122,235 $1,054,933 $2,142,451 $2,040,272 
Adjusted operating income458,756 418,245 863,426 777,710 
Adjusted operating margin41 %40 %40 %38 %
Design IP:
Revenue$482,031 $399,779 $917,130 $925,429 
Adjusted operating income150,514 124,797 277,061 370,524 
Adjusted operating margin31 %31 %30 %40 %
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 
 April 30,
Six Months Ended 
 April 30,
 2025202420252024
 (in thousands)
Total segment adjusted operating income$609,270 $543,042 $1,140,487 $1,148,234 
Reconciling items:
Amortization of acquired intangible assets
(11,656)(18,061)(24,252)(34,745)
Stock-based compensation expense(201,723)(162,691)(388,186)(328,196)
Deferred compensation plan20,106 (11,051)468 (50,496)
Acquisition/divestiture related items
(39,571)(19,167)(100,252)(50,099)
Total operating income$376,426 $332,072 $628,265 $684,698 
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 
 April 30,
Six Months Ended 
 April 30,
 2025202420252024
 (in thousands)
Revenue:
United States$649,299 $630,766 $1,260,009 $1,354,587 
Europe194,843 147,476 348,514 284,746 
China157,506 221,820 331,454 462,884 
Korea257,595 192,676 507,980 374,721 
Other345,023 261,974 611,624 488,763 
Consolidated$1,604,266 $1,454,712 $3,059,581 $2,965,701 
Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.