Segment Information

6 Months Ended

Apr. 04, 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						Six months ended
	April 4, 2015			March 29, 2014			April 4, 2015			March 29, 2014
	(in thousands)
Revenue:
Total Software Products segment revenue	$	240,951		$	245,423		$	487,942		$	489,677
Total Services segment revenue	73,168			83,277			151,619			163,948
Total revenue	$	314,119		$	328,700		$	639,561		$	653,625
Operating income: (1)
Software Products segment	$	134,580		$	154,859		$	283,625		$	313,099
Services segment	3,178			16,427			16,378			29,048
Sales and marketing expenses	(94,942		)	(85,933		)	(182,549		)	(170,644		)
General and administrative expenses	(38,828		)	(34,140		)	(75,835		)	(65,419		)
Total operating income	3,988			51,213			41,619			106,084
Other income (expense), net	(3,601		)	(2,692		)	(6,825		)	(4,446		)
Income before income taxes	$	387		$	48,521		$	34,794		$	101,638

(1) We recorded restructuring charges of $38.5 million in the second quarter of 2015. Software Products included $10.0 million; Services included $11.0 million; sales and marketing expenses included $12.9 million; and general and administrative expenses included $4.6 million of these restructuring charges. 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 six months 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.