Segment Reporting

3 Months Ended

May 31, 2017

Segment Reporting [Abstract]

Segment Reporting

NOTE 10—Segment Reporting

The Company is organized primarily on the basis of three geographic business units: the Americas (U.S., Latin America and Canada), Europe, Middle East and Africa (“EMEA”) and Asia Pacific. The following summarizes revenue from unaffiliated customers and income (loss) from operations for the three months ended May 31, 2017 and May 31, 2016 and total cash, cash equivalents and available-for-sale investment securities and total assets as of May 31, 2017 and May 31, 2016, by geographic segment (in thousands):

	Americas		EMEA		Asia Pacific		Corporate (1)			Consolidated
	Three Months Ended May 31, 2017
Revenue from unaffiliated customers	$	438,380	$	143,671	$	94,745	$	—		$	676,796
Income (loss) from operations	$	73,939	$	29,439	$	27,948	$	(43,718	)	$	87,608
Total cash, cash equivalents and available-for-sale investment securities	$	1,186,481	$	779,346	$	343,754	$	—		$	2,309,581
Total assets	$	2,863,266	$	1,129,907	$	519,263	$	—		$	4,512,436
	Three Months Ended May 31, 2016
Revenue from unaffiliated customers	$	365,723	$	124,299	$	77,877	$	—		$	567,899
Income (loss) from operations	$	69,756	$	25,688	$	21,194	$	(41,275	)	$	75,363
Total cash, cash equivalents and available-for-sale investment securities	$	1,240,377	$	613,619	$	265,880	$	—		$	2,119,876
Total assets	$	2,815,567	$	892,729	$	403,985	$	—		$	4,112,281

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

Supplemental information about geographic areas

The following table lists, for each of the three months ended May 31, 2017 and May 31, 2016, revenue from unaffiliated customers in the United States, the Company’s country of domicile, and revenue from unaffiliated customers from foreign countries (in thousands):

	Three Months Ended
	May 31, 2017		May 31, 2016
United States, the Company’s country of domicile	$	394,542	$	328,529
Foreign		282,254		239,370
Total revenue from unaffiliated customers	$	676,796	$	567,899

Total tangible long-lived assets, net of accumulated depreciation, located in the United States, the Company’s country of domicile, and similar tangible long-lived assets, net of accumulated depreciation, held outside the United States are summarized in the following table as of May 31, 2017 and February 28, 2017 (in thousands):

	May 31, 2017		February 28, 2017
United States, the Company’s country of domicile	$	135,119	$	133,492
Foreign		60,162		56,137
Total tangible long-lived assets	$	195,281	$	189,629

Supplemental information about major customers

For the three months ended May 31, 2017 and May 31, 2016, the U.S. government and its agencies represented in the aggregate approximately 11% and 10% of the Company’s total revenue, respectively.

At May 31, 2017 and February 28, 2017, the Company had no customers whose accounts receivable balance individually represented 10% or more of total accounts receivable.

Supplemental information about products and services

The following table, for each of the three months ended May 31, 2017 and May 31, 2016, provides further detail, by type, of the Company’s subscription and services revenues. Infrastructure-related offerings subscription revenue includes subscription revenue generated from Red Hat Enterprise Linux and related technologies such as Red Hat Satellite and Red Hat Enterprise Virtualization. Subscription revenue generated from the Company’s Application Development-related and other emerging technology offerings includes Red Hat JBoss Middleware, Red Hat Storage, Red Hat Mobile Application Platform and Red Hat cloud offerings such as Red Hat OpenStack Platform, Red Hat OpenShift and Red Hat CloudForms (in thousands):

	Three Months Ended
	May 31, 2017		May 31, 2016
Subscription revenue:
Infrastructure-related offerings	$	457,961	$	403,182
Application Development-related and other emerging technology offerings		138,547		98,483
Total subscription revenue		596,508		501,665
Training and services revenue:
Consulting services		61,488		50,310
Training		18,800		15,924
Total training and services revenue		80,288		66,234
Total subscription and training and services revenue	$	676,796	$	567,899