GEOGRAPHIC INFORMATION AND MAJOR CLIENTS

9 Months Ended

Sep. 30, 2016

GEOGRAPHIC INFORMATION AND MAJOR CLIENTS

13. GEOGRAPHIC INFORMATION AND MAJOR CLIENTS

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 software applications for customer engagement and its Pega^® 7 Platform, and provides consulting services, maintenance, and training related to its offerings. The Company derives substantially all of its revenue from the sale and support of one group of similar products and services—software that provides case management, business process management, and real-time decisioning solutions to improve customer engagement and operational excellence in the enterprise applications market. To assess performance, the Company’s CODM, who is the chief executive officer, reviews financial information on a consolidated basis. Therefore, the Company determined it has one reportable segment—Customer Engagement Solutions and one reporting unit.

The Company’s international revenue is from clients based outside of the U.S. The Company derived its revenue from the following geographic areas:

	Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in thousands)	2016				2015				2016				2015
U.S.	$	111,274	61	%	$	89,640	55	%	$	308,049	56	%	$	267,671	56	%
Other Americas		7,952	4	%		6,602	4	%		49,494	9	%		46,278	10	%
U.K.		21,490	12	%		19,491	12	%		77,181	14	%		60,867	13	%
Other EMEA (1)		23,656	13	%		20,672	13	%		67,314	12	%		55,376	11	%
Asia Pacific		18,430	10	%		25,998	16	%		48,618	9	%		48,148	10	%
	$	182,802	100	%	$	162,403	100	%	$	550,656	100	%	$	478,340	100	%

⁽¹⁾  Includes Europe, the Middle East and Africa (“Other EMEA”).

There were no clients accounting for 10% or more of the Company’s total revenue during the third quarter and nine months of 2016 and 2015.

Clients accounting for 10% or more of the Company’s total outstanding trade receivables, net of allowance, were as follows:

(Dollars in thousands)	As of September 30, 2016			As of December 31, 2015
Trade receivables, net of allowances	$	208,562		$	211,846
Client A		—	%		10	%