Segment Disclosure

6 Months Ended

Apr. 30, 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   April 30,				Six Months Ended   April 30,
	2016		2015		2016		2015
	(in thousands)
Revenue:
United States	$	297,388	$	286,113	$	572,318	$	563,700
Europe	73,112		75,025		145,047		146,908
Japan	58,535		53,242		111,781		114,094
Asia-Pacific and Other	175,970		142,824		344,463		274,545
Consolidated	$	605,005	$	557,204	$	1,173,609	$	1,099,247

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

The aggregate revenue derived from one customer and its subsidiaries through multiple agreements accounted for 14.5% and 12.3% of the Company’s unaudited condensed consolidated revenue in the three months ended April 30, 2016 and 2015, respectively, and accounted for 13.8% and 11.8% of the Company’s unaudited condensed consolidated revenue in the six months ended April 30, 2016 and 2015, respectively.