Segment Disclosure

6 Months Ended

Apr. 30, 2014

Segment Disclosure

Note 13. Segment Disclosure

ASC 280, Segment Reporting, requires disclosures of certain information regarding operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers.

The Company operates in a single segment to provide software products and consulting services in the EDA software industry. In making operating decisions, the CODMs primarily consider consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Specifically, the CODMs consider where individual “seats” or licenses to the Company’s products are located in allocating revenue to particular geographic areas. Revenue is defined as revenues from external customers. Goodwill is not allocated since the Company operates in one reportable operating segment. Revenues related to operations in the United States and other geographic areas were:

	Three Months Ended April 30,				Six Months Ended April 30,
	2014		2013		2014		2013
	(in thousands)
Revenue:
United States	$	243,603	$	238,180	$	477,230	$	471,313
Europe		71,110		65,682		137,764		129,121
Japan		58,382		65,988		122,702		135,636
Asia-Pacific and Other		144,602		129,407		258,952		238,324
Consolidated	$	517,697	$	499,257	$	996,648	$	974,394

Geographic revenue data for multi-region, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and the Company’s methodology.

One customer accounted for 10.0% and 11.6% of the Company’s unaudited condensed consolidated revenue in the three months ended April 30, 2014 and 2013, respectively, and accounted for 10.8% and 11.4% of the Company’s unaudited condensed consolidated revenue in the six months ended April 30, 2014 and 2013, respectively.