Segment Disclosure

12 Months Ended

Oct. 31, 2012

Segment Disclosure

Note 12. Segment Disclosure

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 provides software products and consulting services in the EDA software industry. The Company operates in a single segment. 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 used 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,
	2012		2011		2010
	(in thousands)
Revenue:
United States	$	834,191	$	714,036	$	667,956
Europe		225,797		207,071		183,831
Japan		289,420		275,174		256,454
Asia Pacific and Other		406,609		339,362		272,420
Consolidated	$	1,756,017	$	1,535,643	$	1,380,661

	As of October 31,
	2012		2011
	(in thousands)
Property and Equipment, net:
United States	$	133,148	$	121,101
Other countries		58,095		38,416
Total	$	191,243	$	159,517

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

One customer, in the aggregate, accounted for 10.5%, 10.6%, and 10.9% of the Company’s consolidated revenue in fiscal 2012, 2011 and 2010, respectively.