GEOGRAPHIC INFORMATION AND MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2012

GEOGRAPHIC INFORMATION AND MAJOR CUSTOMERS

17. GEOGRAPHIC INFORMATION AND MAJOR CUSTOMERS

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.

The Company develops and licenses its software solutions and provides consulting services, maintenance, and training related to its software. The Company derives substantially all of its revenue from the sale and support of one group of similar products and services—software that provides business process solutions in the enterprise applications market. The Company’s CODM is its Chief Executive Officer. To assess performance, the Company’s CODM primarily reviews financial information on a consolidated basis. Therefore, the Company has determined it operates in one segment—business process solutions.

The Company’s international revenue is from sales to customers based outside of the U.S. The Company derived its operating revenue from the following geographic areas for the years ended December 31:

(Dollars in thousands)	2012				2011				2010
U.S.	$	250,022	54	%	$	216,365	52	%	$	199,863	59	%
United Kingdom		87,135	19	%		94,338	23	%		59,571	18	%
Europe, other		69,898	15	%		70,990	17	%		47,050	14	%
Other		54,655	12	%		34,982	8	%		30,115	9	%
	$	461,710	100	%	$	416,675	100	%	$	336,599	100	%

Long-lived assets related to the Company’s U.S. and international operations as of December 31 were as follows:

(Dollars in thousands)	2012				2011
U.S.	$	22,693	73	%	$	9,624	67	%
India		5,461	18	%		2,391	16	%
International, other		2,673	9	%		2,443	17	%
	$	30,827	100	%	$	14,458	100	%

There were no customers accounting for 10% or more of the Company’s total revenue in 2012, 2011, and 2010. There was one customer that accounted for 10% or more of the Company’s trade receivables, net, as of December 31, 2012 and 2011, as listed below. The Company’s financial services, healthcare and insurance customers as a group represent a significant amount of the Company’s revenues and receivables. However, the Company determined this concentration did not have a material impact on its allowances for doubtful accounts and sales credit memos as of December 31, 2012.

(Dollars in thousands)	2012			2011
Trade receivables, net of allowances	$	134,066		$	98,293
Customer A		10	%		14	%

Marketable securities are another financial instrument that potentially subject the Company to a concentration of credit risk. See Note 3 “Marketable Securities” and Note 5 “Fair Value Measurements” for further discussion.