Segment Reporting

3 Months Ended

May 31, 2019

The Company is organized primarily on the basis of three geographic business units: the Americas (U.S., Canada and Latin America), Europe, Middle East and Africa (“EMEA”) and Asia Pacific. These business units are aggregated into one reportable segment due to the similarity in nature of products and services provided, financial performance economic characteristics (e.g. revenue growth and gross margin), methods of production and distribution and customer classes (e.g., cloud service providers, distributors, reseller and enterprise).

The following summarizes revenue from unaffiliated customers; income (loss) from operations; total cash, cash equivalents and available-for-sale investment securities and total assets by geographic segment (in thousands):



	Americas		EMEA		Asia Pacific		Corporate ⁽¹⁾			Consolidated
	Three Months Ended May 31, 2019
Revenue from unaffiliated customers	$	582,290	$	216,951	$	134,870	$	—		$	934,111
Income (loss) from operations	$	83,555	$	54,909	$	43,822	$	(50,168	)	$	132,118
Total cash, cash equivalents, restricted cash and available-for-sale investment securities	$	1,429,795	$	730,228	$	501,170	$	—		$	2,661,193
Total assets	$	3,567,096	$	1,258,782	$	748,061	$	—		$	5,573,939
	Three Months Ended May 31, 2018
Revenue from unaffiliated customers	$	500,306	$	195,148	$	118,076	$	—		$	813,530
Income (loss) from operations	$	71,864	$	48,860	$	37,437	$	(46,005	)	$	112,156
Total cash, cash equivalents, restricted cash and available-for-sale investment securities	$	1,524,311	$	576,171	$	426,647	$	—		$	2,527,129
Total assets	$	3,559,900	$	1,015,187	$	616,474	$	—		$	5,191,561

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⁽¹⁾	Amounts represent share-based compensation expense that was not allocated to geographic segments.

Supplemental information about geographic areas

The Company approximates its geographic sources of revenue based on the country of origin of its non-cancellable subscription and service agreements initiated during the year (commonly referred to as bookings). The following table lists revenue from unaffiliated customers in the U.S., the Company’s country of domicile, and revenue from foreign countries (in thousands):



	Three Months Ended
	May 31, 2019		May 31, 2018
U.S., the Company’s country of domicile	$	511,716	$	442,421
Foreign	422,395		371,109
Total revenue from unaffiliated customers	$	934,111	$	813,530

Total tangible long-lived assets located in the U.S., the Company’s country of domicile, and similar tangible long-lived assets held outside the U.S. are summarized in the following table (in thousands):



	May 31, 2019		February 28, 2019
U.S., the Company’s country of domicile	$	131,071	$	129,387
Foreign	68,944		69,582
Total tangible long-lived assets	$	200,015	$	198,969

Supplemental information about major customers

For each of the three months ended May 31, 2019 and May 31, 2018, the U.S. government and its agencies represented in the aggregate approximately 11% and 10% of the Company’s total revenue, respectively.

Supplemental information about products and services

The following table provides further detail, by type, of the Company’s subscription and services revenues. Subscription revenue for infrastructure-related offerings includes subscription revenue generated from Red Hat Enterprise Linux and related technologies such as Red Hat Satellite and Red Hat Virtualization. Subscription revenue generated from the Company’s Application Development-related and other emerging technology offerings includes Red Hat Middleware, Red Hat OpenShift, Red Hat Cloud Infrastructure, Red Hat OpenStack Platform, Red Hat Ansible Automation, Red Hat CloudForms and Red Hat Storage technologies (in thousands):



	Three Months Ended
	May 31, 2019		May 31, 2018
Subscription revenue:
Infrastructure-related offerings	$	580,306	$	522,402
Application Development-related and other emerging technology offerings	234,646		189,119
Total subscription revenue	814,952		711,521
Training and services revenue:
Consulting services	93,423		79,147
Training	25,736		22,862
Total training and services revenue	119,159		102,009
Total revenue	$	934,111	$	813,530