Segment Disclosure

3 Months Ended

Jan. 31, 2016

Segment Reporting [Abstract]

Segment Disclosure

Segment Disclosure

Certain disclosures are required for 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   January 31,
	2016		2015
	(in thousands)
Revenue:
United States	$	274,930	$	277,587
Europe	71,935		71,883
Japan	53,246		60,852
Asia-Pacific and Other	168,493		131,721
Consolidated	$	568,604	$	542,043

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 12.2% and 11.3% of the Company’s unaudited condensed consolidated revenue in the three months ended January 31, 2016 and 2015, respectively.