Segment Information

3 Months Ended

Jan. 03, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate within a single industry segment—computer software and related services. Operating segments as defined under GAAP are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our President and Chief Executive Officer. We have two operating and reportable segments: (1) Software Products, which includes license and related support revenue (including updates and technical support) for all our products except training-related products; and (2) Services, which includes consulting, implementation, training, cloud services, computer-based training products, including support on these products, and other services revenue. We do not allocate sales and marketing or administrative expenses to our operating segments as these activities are managed on a consolidated basis.

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

	Three months ended
	January 3, 2015			December 28, 2013
	(in thousands)
Revenue:
Total Software Products segment revenue	$	246,991		$	244,253
Total Services segment revenue	78,451			80,672
Total revenue	$	325,442		$	324,925
Operating income: (1)
Software Products segment	$	149,045		$	158,238
Services segment	13,200			12,622
Sales and marketing expenses	(87,607		)	(84,710		)
General and administrative expenses	(37,007		)	(31,279		)
Total operating income	37,631			54,871
Other income (expense), net	(3,224		)	(1,753		)
Income before income taxes	$	34,407		$	53,118

(1) We recorded a credit to restructuring of $0.3 million in the first quarter of 2015 which is included in the Services segment. We recorded restructuring charges of $1.1 million in the first quarter of 2014. Software Products included $0.1 million; Services included $0.2 million; sales and marketing expenses included $0.5 million; and general and administrative expenses included $0.3 million of these restructuring charges.