Segment Disclosure

12 Months Ended

Oct. 31, 2018

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,
	2018		2017		2016
	(in thousands)
Revenue:
United States	$	1,508,224	$	1,357,364	$	1,205,880
Europe	369,125		308,419		287,381
Japan	283,337		247,631		239,964
Asia Pacific and Other	960,372		811,466		689,307
Consolidated	$	3,121,058	$	2,724,880	$	2,422,532



	As of October 31,
	2018		2017
	(in thousands)
Property and Equipment, net:
United States	$	210,914	$	189,379
Other countries	98,396		76,635
Total	$	309,310	$	266,014

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 15.4%, 17.9%, and 15.9% of the Company’s consolidated revenue in fiscal 2018, 2017, and 2016, respectively.