Segment Disclosure

6 Months Ended

Apr. 30, 2013

Segment Disclosure

Note 13. 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 and hardware 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 of 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 related to operations in the United States and other geographic areas were:

	Three Months Ended April  30,				Six Months Ended April  30,
	2013		2012		2013		2012
	(in thousands)
Revenue:
United States	$	238,180	$	206,985	$	471,313	$	404,668
Europe		65,682		58,224		129,121		112,840
Japan		65,988		71,932		135,636		149,053
Asia-Pacific and Other		129,407		95,420		238,324		191,496
Consolidated	$	499,257	$	432,561	$	974,394	$	858,057

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 11.6% and 10.1% of the Company’s unaudited condensed consolidated revenue in the three months ended April 30, 2013 and 2012, respectively and accounted for 11.4% and 10.3% of the Company’s unaudited condensed consolidated revenue in the six months ended April 30, 2013 and 2012, respectively.