SEGMENT INFORMATION

12 Months Ended

Oct. 31, 2025

16. SEGMENT INFORMATION

Our operating segments were determined based primarily on how the Chief Operating Decision Maker (“CODM”), President and Chief Executive Officer, views and evaluates our operations. 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.

The CODM is regularly provided with and reviews segment revenues and segment income from operations to support decision-making, set strategic goals, allocate resources, and evaluate each segment’s progress against the company’s plan. The CODM also reviews and approves budgets, including capital expenditures, at the segment level. The segment results are not necessarily in conformity with GAAP and exclude items such as share-based compensation expense, amortization of acquisition-related balances, acquisition and integration costs, restructuring costs, interest income, interest expense, and other items.

A significant portion of the segments’ expenses arise from allocated corporate charges, as well as expenses related to our centralized sales force, and service, marketing and technology functions that we have historically provided to the segments in order to realize economies of scale and to efficiently use resources. Corporate charges include legal, accounting, real estate, insurance services, information technology services, treasury, and other corporate infrastructure expenses. Segment allocations are determined on a basis that we consider 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 corporate infrastructure.

Descriptions of our two reportable segments are as follows:

The Communications Solutions Group (“CSG”) serves customers spanning the global commercial communications and aerospace, defense, and government end markets. The group’s solutions consist of electronic design and test software, instrumentation, systems, and related services. These solutions are used in the design, simulation, validation, manufacturing, installation, and optimization of communication systems in wireless, wireline (data center networking), enterprise, and aerospace, defense, and government end markets. Our recent acquisition of Spirent adds wireless network test and assurance and positioning technology solutions to our portfolio, complementing our design, validation, and performance offerings to deliver end-to-end solutions to our customers.

The Electronic Industrial Solutions Group (“EISG”) serves customers across a diverse set of end markets focused on automotive and energy, semiconductor solutions, and general electronics. The group's solutions consist of electronic design, test and simulation software, instrumentation, systems, computer-aided engineering solutions, and related services. These solutions are used in the design, simulation, validation, manufacturing, installation, and optimization of electronic equipment.

The following tables reflect the results of our reportable segments and significant segment expenses as defined above.


	CSG		EISG		Total
	(in millions)
Year ended October 31, 2025:
Revenue	$	3,726	$	1,649	$	5,375
Cost of sales	$	1,235	$	667	$	1,901
Research and development	$	697	$	258	$	954
Selling, general and administrative	$	822	$	325	$	1,147
Other operating expenses (income)	$	(14)	$	(7)	$	(20)
Segment income from operations	$	986	$	407	$	1,393

Depreciation expense	$	83	$	48	$	131

Year ended October 31, 2024:
Revenue	$	3,420	$	1,559	$	4,979
Cost of sales	$	1,107	$	626	$	1,733
Research and development	$	618	$	253	$	871
Selling, general and administrative	$	784	$	327	$	1,111
Other operating expenses (income)	$	(10)	$	(4)	$	(14)
Segment income from operations	$	921	$	357	$	1,278

Depreciation expense	$	85	$	41	$	126

Year ended October 31, 2023:
Revenue	$	3,685	$	1,779	$	5,464
Cost of sales	$	1,190	$	678	$	1,868
Research and development	$	618	$	224	$	842
Selling, general and administrative	$	821	$	300	$	1,120
Other operating expenses (income)	$	(11)	$	(4)	$	(15)
Segment income from operations	$	1,068	$	581	$	1,649

Depreciation expense	$	81	$	39	$	120

Amounts in table above may not total due to rounding.

The following table reconciles reportable segments’ income from operations to our income before taxes as reported:


	Year Ended October 31,
	2025		2024		2023
	(in millions)
Total reportable segments’ income from operations	$	1,393	$	1,278	$	1,649
Share-based compensation	(176)		(145)		(136)
Amortization of acquisition-related balances	(141)		(139)		(90)
Acquisition and integration costs	(152)		(91)		(13)
Restructuring and other	(48)		(70)		(52)
Income from operations, as reported	876		833		1,358
Interest income	102		81		102
Interest expense	(96)		(84)		(78)
Other income (expense), net	200		35		(25)
Income from continuing operations before taxes, as reported	$	1,082	$	865	$	1,357

“Restructuring and other” includes legal expenses of $17 million and $23 million in 2024 and 2023, respectively.

Major customers. No customer represented 10 percent or more of our total revenue in 2025, 2024, or 2023.

The following table presents segment assets and capital expenditures directly managed by each segment.


	Year Ended October 31,
	2025						2024
	CSG		EISG		Total		CSG		EISG		Total
	(in millions)
Segment assets	$	6,144	$	3,524	$	9,668	$	4,721	$	2,952	$	7,673
Capital expenditures, net of government incentives	$	84	$	43	$	127	$	87	$	60	$	147

The following table reconciles segment assets to our total assets:


	October 31,
	2025		2024
	(in millions)
Total reportable segments’ assets	$	9,668	$	7,673
Cash and cash equivalents	1,873		1,796

Long-term deferred tax assets	373		378
Tax receivables	146		249
Long-term investments	211		110
Accumulated amortization of other intangibles	(1,614)		(1,477)
Pension and other assets	644		540
Total assets	$	11,301	$	9,269

Segment assets include goodwill and gross other intangible assets, accounts receivable, inventory, property, plant and equipment, and other assets. Unallocated assets primarily consist of cash and cash equivalents, deferred tax assets, long-term investments, accumulated amortization of other intangible assets, pension assets, and other assets. The increase in segment assets for the year ended October 31, 2025 was primarily due to additions in assets acquired as part of the 2025 acquisitions. See Note 2, “Acquisitions,” for additional information.

The following tables present summarized information for revenue and long-lived assets by country. 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		Rest of the World		Total
	(in millions)
Revenue:
Year ended October 31, 2025	$	1,869	$	938	$	2,568	$	5,375
Year ended October 31, 2024	$	1,769	$	884	$	2,326	$	4,979
Year ended October 31, 2023	$	1,928	$	1,005	$	2,531	$	5,464


	United States		Japan		Germany		Rest of the World		Total
	(in millions)
Long-lived assets:
October 31, 2025	$	873	$	293	$	183	$	315	$	1,664
October 31, 2024	$	726	$	261	$	131	$	338	$	1,456

- 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.

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