Segment Disclosure

12 Months Ended

Oct. 31, 2017

ASC 280, Segment Reporting, requires disclosures of certain information regarding 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 primarily 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 and property and equipment, net, related to operations in the United States and other by geographic areas were:



	Year Ended October 31,
	2017		2016		2015
	(in thousands)
Revenue:
United States	$	1,357,364	$	1,205,880	$	1,143,816
Europe	308,419		287,381		300,352
Japan	247,631		239,964		218,794
Asia Pacific and Other	811,466		689,307		579,249
Consolidated	$	2,724,880	$	2,422,532	$	2,242,211



	As of October 31,
	2017		2016
	(in thousands)
Property and Equipment, net:
United States	$	189,379	$	186,854
Other countries	76,635		70,181
Total	$	266,014	$	257,035

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

One customer, including its subsidiaries, through multiple agreements accounted for 17.9%, 15.9%, and 12.8% of the Company’s consolidated revenue in fiscal 2017, 2016, and 2015, respectively.