GEOGRAPHIC INFORMATION AND MAJOR CLIENTS

12 Months Ended

Dec. 31, 2016

GEOGRAPHIC INFORMATION AND MAJOR CLIENTS

17. 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 its strategic software applications and Pega 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:

	Year ended December 31,
(Dollars in thousands)	2016				2015				2014
U.S.	$	430,562	57	%	$	379,936	56	%	$	327,154	55	%
Other Americas		59,160	8	%		57,892	8	%		32,642	6	%
United Kingdom		101,733	14	%		96,314	14	%		93,923	16	%
Other EMEA (1)		92,540	12	%		87,240	13	%		87,050	15	%
Asia Pacific		66,271	9	%		61,313	9	%		49,235	8	%
	$	750,266	100	%	$	682,695	100	%	$	590,004	100	%

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

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

	December 31,
(Dollars in thousands)	2016				2015
U.S.	$	27,993	73	%	$	17,600	56	%
India		7,158	19	%		10,530	34	%
International, other		3,130	8	%		3,189	10	%
	$	38,281	100	%	$	31,319	100	%

There were no clients accounting for 10% or more of the Company’s total revenue in 2016, 2015, and 2014. There was one client accounting for 10% or more of the Company’s total outstanding trade receivables as of December 31, 2015, as listed below. The Company’s financial services, healthcare, and insurance clients 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 allowance for sales credit memos as of December 31, 2016.

	December 31,
(Dollars in thousands)	2016			2015
Trade receivables, net of allowances	$	265,028		$	211,846
Client A		—	%		10	%

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.