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Segment Disclosure
 12 Months Ended
Oct. 31, 2022
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 Chief Operating Decision Maker (CODM) in deciding how to allocate resources and in assessing performance. Until the second quarter of fiscal 2022, we had two CODMs, our two Co-Chief Executive Officers. One of our Co-Chief Executive Officers transitioned out of this role effective May 1, 2022. Commencing in the third quarter of fiscal 2022, our CODM is our sole Chief Executive Officer.
We have two reportable segments: (1) Semiconductor & System Design, which includes EDA tools, IP products, system integration solutions and other associated revenue categories, and (2) Software Integrity, which includes a comprehensive solution for building integrity—security, quality and compliance testing—into the customers’ software development lifecycle and supply chain.
The financial information provided to and used by the CODM to assist in making operational decisions, allocating resources, and assessing performance reflects consolidated financial information as well as revenue, adjusted operating income, and adjusted operating margin information for the Semiconductor & System Design and Software Integrity segments, accompanied by disaggregated information relating to revenue by geographic region.
Information by reportable segment was as follows:
 Year Ended October 31,
 202220212020
 (in thousands)
Total Segments:
      Revenue$5,081,542 $4,204,193 $3,685,281 
      Adjusted operating income1,675,102 1,281,389 1,031,630 
      Adjusted operating margin33 %30 %28 %
Semiconductor & System Design:
      Revenue$4,615,714 $3,810,409 $3,327,211 
      Adjusted operating income1,628,108 1,243,078 990,837 
      Adjusted operating margin35 %33 %30 %
Software Integrity:
      Revenue$465,828 $393,784 $358,070 
      Adjusted operating income46,994 38,311 40,793 
      Adjusted operating margin10 %10 %11 %
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 intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan and certain other operating expenses, were
presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income:
 Year Ended October 31,
 202220212020
 (in thousands)
Total segment adjusted operating income$1,675,102 $1,281,389 $1,031,630 
Reconciling items:
      Amortization of intangible assets(96,690)(82,380)(91,281)
      Stock-based compensation expense(459,029)(345,272)(248,584)
      Deferred compensation plan68,778 (71,603)(21,469)
      Other(26,123)(47,344)(50,155)
Total operating income$1,162,038 $734,790 $620,141 
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 required to be 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 and property and equipment, net, related to operations in the United States and other geographic areas were:
 Year Ended October 31,
 202220212020
 (in thousands)
Revenue:
United States
$2,349,766 $1,951,964 $1,774,348 
Europe
493,430 440,825 385,287 
China
795,405 562,711 420,829 
Korea
531,542 427,471 389,008 
Other
911,399 821,222 715,809 
Consolidated$5,081,542 $4,204,193 $3,685,281 
 As of October 31,
 20222021
 (in thousands)
Property and Equipment, net:
United States
$297,780 $283,602 
Other185,520 188,796 
Total$483,300 $472,398 
Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.
One customer, including its subsidiaries, accounted for 11.7%, 10.6%, and 12.4% of our consolidated revenue in fiscal 2022, 2021, and 2020, respectively. No customer was responsible for over 10% of our accounts receivables as of October 31, 2022 and 2021.