Segment Information (Tables)

3 Months Ended

Jun. 30, 2012

The revenue and operating income attributable to our operating segments are summarized as follows:



	Three months ended						Nine months ended
	June 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
	(in thousands)
Revenue:
Total Software Products segment revenue	$	229,706		$	212,137		$	688,322		$	617,203
Total Services segment revenue	81,277			79,646			242,062			210,321
Total revenue	$	310,983		$	291,783		$	930,384		$	827,524
Operating income: (1)
Software Products segment	$	145,829		$	134,157		$	431,897		$	385,881
Services segment (2)	12,491			11,361			27,774			14,853
Sales and marketing expenses	(97,386		)	(89,106		)	(298,606		)	(254,790		)
General and administrative expenses	(29,851		)	(31,882		)	(90,574		)	(80,078		)
Total operating income	$	31,083		$	24,530		$	70,491		$	65,866

(1)

We recorded restructuring charges of $4.1 million and $24.9 million in the third quarter and first nine months of 2012, respectively. Software Products included $0.7 million and $4.1 million, respectively; Services included $0.8 million and $4.0 million, respectively; sales and marketing expenses included $2.7 million and $15.2 million, respectively; and general and administrative expenses included $0 million and $1.6 million, respectively, of these restructuring charges.


(2)	In the first quarter of 2011, we made a strategic decision to enter into a contract with a customer in the automotive industry for which we expected our costs to exceed our revenue by approximately $5 million. Services segment operating income in the first three months of 2011 included immediate recognition of the approximately $5 million estimated loss on this contract.

Revenue By Product Segment

We report revenue by product group, Desktop and Enterprise. Desktop revenue includes our CAD Solutions, primarily Creo Parametric, Creo Elements/Direct, Mathcad and Arbortext authoring products. Enterprise revenue includes our PLM solutions, primarily Windchill, Arbortext enterprise products, Creo View and Integrity.

Amounts for the three and nine months ended June 30, 2012 and July 2, 2011 presented in the tables below include immaterial reclassifications between product groups and geographic regions made to conform to the current classification.



	Three months ended				Nine months ended
	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
	(in thousands)
Revenue:
Desktop	$	150,954	$	154,894	$	452,568	$	456,215
Enterprise	160,029		136,889		477,816		371,309
Total revenue	$	310,983	$	291,783	$	930,384	$	827,524

Revenue By Geographic Segment

Data for the geographic regions in which we operate is presented below.



	Three months ended				Nine months ended
	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
	(in thousands)
Revenue:
Americas (1)	$	112,661	$	104,618	$	339,680	$	299,111
Europe (2)	120,214		120,302		369,169		334,132
Pacific Rim	43,593		36,873		118,170		106,694
Japan	34,515		29,990		103,365		87,587
Total revenue	$	310,983	$	291,783	$	930,384	$	827,524

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(1)	Includes revenue in the United States totaling $106.1 million and $98.7 million for the three months ended June 30, 2012 and July 2, 2011, respectively, and $319.1 million and $263.6 million for the nine months ended June 30, 2012 and July 2, 2011, respectively.


(2)	Includes revenue in Germany totaling $48.0 million and $48.9 million for the three months ended June 30, 2012 and July 2, 2011, respectively, and

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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