Segment Information

9 Months Ended

Jul. 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						Nine months ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
	(in thousands)
Revenue:
Total Software Products segment revenue	$	235,371		$	258,805		$	723,313		$	748,482
Total Services segment revenue	67,742			77,829			219,361			241,777
Total revenue	$	303,113		$	336,634		$	942,674		$	990,259
Operating income: (1)
Software Products segment	$	145,016		$	166,639		$	428,533		$	479,736
Services segment	13,378			13,516			29,868			42,566
Sales and marketing expenses	(88,715		)	(91,440		)	(271,257		)	(262,085		)
General and administrative expenses	(48,072		)	(34,331		)	(123,918		)	(99,749		)
Total operating income	21,607			54,384			63,226			160,468
Interest and other income (expense), net	(3,668		)	(2,278		)	(10,492		)	(6,724		)
Income before income taxes	$	17,939		$	52,106		$	52,734		$	153,744

(1) We recorded restructuring charges of $4.4 million and $42.6 million in the third quarter and first nine months of 2015, respectively. Software Products included $1.5 million and $11.5 million respectively; Services included $0.6 million and $11.4 million, respectively; sales and marketing expenses included $2.3 million and $15.1 million, respectively; and general and administrative expenses included $(28) thousand and $4.6 million, respectively, of these restructuring charges. We recorded restructuring charges of $0.5 million in the third quarter of 2014, all of which were included in general and administrative expenses. We recorded restructuring charges of $1.6 million in the first nine 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 $0.8 million of these restructuring charges.