Segment and Geographic Information and Significant Customers

9 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment and Geographic Information and Significant Customers

Our Chief Operating Decision Maker ("CODM") regularly reviews segment revenues and segment profits for performance evaluation and resources allocation. Segment revenues include certain acquisition-related adjustments for revenues that would otherwise have been recognized without the acquisition. Segment profits reflect controllable costs directly related to each segment and the allocation of certain corporate expenses such as corporate sales and marketing expenses and research and development project costs that benefit multiple segments. Certain items such as stock-based compensation, amortization of intangible assets, acquisition-related costs, net, restructuring and other charges, net, other expenses, net and certain unallocated corporate expenses are excluded from segment profits, which allow for more meaningful comparisons to the financial results of the historical operations for performance evaluation and resources allocation by our CODM.

• The Healthcare segment is primarily engaged in providing clinical speech and clinical language understanding solutions that improve the clinical documentation process, from capturing the complete patient record to improving clinical documentation and quality measures for reimbursement.

• The Enterprise segment is primarily engaged in using speech, natural language understanding, and artificial intelligence to provide automated customer solutions and services for voice, mobile, web and messaging channels.

• The Other segment consists primarily of voicemail transcription services after the sale of our Mobile Operator Services and the wind-down of devices in 2019.

As more fully described in Note 4, on October 1, 2019, we completed the spin-off of our Automotive business as an independent publicly traded company. Effective the first quarter of fiscal year 2020, our Automotive business's historical results of operations have been included within discontinued operations. For the three months ended June 30, 2019, $4.0 million of stranded costs previously allocated to our Automotive segment have been re-allocated to Healthcare, Enterprise, and Other; for the nine months ended June 30, 2019, $12.9 million of stranded costs previously allocated to our Automotive segment have been re-allocated to Healthcare, Enterprise, and Other.

We do not track our assets by segment. Consequently, it is not practical to show assets or depreciation by segment. The following table presents segment results along with a reconciliation of segment profit to Income (loss) before income taxes (dollars in thousands): 

	Three Months Ended June 30,						Nine Months Ended June 30,
	2020			2019			2020			2019
Segment revenues:
Healthcare	$	199,863		$	228,384		$	694,792		$	704,911
Enterprise	130,392			137,888			406,310			383,217
Other	8,143			11,790			25,167			46,885
Total segment revenues	$	338,398		$	378,062		$	1,126,269		$	1,135,013
Less: acquisition-related revenues adjustments	—			(625		)	(301		)	(1,317		)
Total revenues	$	338,398		$	377,437		$	1,125,968		$	1,133,696
Segment profit:
Healthcare	$	62,885		$	79,343		$	227,838		$	244,239
Enterprise	36,992			38,743			118,265			101,331
Other	5,045			3,045			14,020			13,416
Total segment profit	$	104,922		$	121,131		$	360,123		$	358,986
Corporate expenses and other, net	(28,389		)	(36,328		)	(87,711		)	(103,279		)
Acquisition-related revenues	—			(625		)	(301		)	(1,317		)
Stock-based compensation	(33,135		)	(30,181		)	(98,030		)	(84,476		)
Amortization of intangible assets	(18,280		)	(19,933		)	(55,893		)	(61,636		)
Acquisition-related costs, net	(758		)	(788		)	(3,605		)	(5,440		)
Restructuring and other charges, net	(1,920		)	(1,947		)	(14,932		)	(26,446		)
Other expenses, net	(22,438		)	(21,296		)	(79,912		)	(79,466		)
Income (loss) before income taxes	$	2		$	10,033		$	19,739		$	(3,074	)

No country outside of the United States provided greater than 10% of our total revenues. Revenues, classified by the major geographic areas in which our customers are located, were as follows (dollars in thousands): 

	Three Months Ended June 30,				Nine Months Ended June 30,
	2020		2019		2020		2019
United States	$	266,182	$	310,902	$	904,283	$	926,870
International	72,216		66,535		221,685		206,826
Total revenues	$	338,398	$	377,437	$	1,125,968	$	1,133,696