Segment Information

3 Months Ended

Dec. 31, 2016

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 three operating and reportable segments: (1) the Solutions Group, which includes license, subscription, support and cloud services revenue for our core CAD, SLM and PLM products; (2) the IoT Group, which includes license, subscription, support and cloud services revenue for our IoT, analytics and augmented reality solutions, and (3) Professional Services, which includes consulting, implementation and training revenue. Our reported segment profit includes revenue from third party sales of our products and services, less direct controllable segment costs. Direct costs of the segments include certain costs of revenue, research and development and certain marketing costs. Costs excluded from segment margin include cost of revenue, selling expenses, corporate marketing and general and administrative costs that are incurred in support of all of our segments and are not specifically allocated to our segments for management reporting. Additionally, the segment profit does not include stock-based compensation, amortization of intangible assets, restructuring charges and certain other identified costs that we do not allocate to the segments for purposes of evaluating their operational performance.

The revenue and profit attributable to our operating segments are summarized below. We do not produce asset information by reportable segment; therefore, it is not reported.

	Three months ended
	December 31, 2016			January 2, 2016
	(in thousands)
Solutions Group
Revenue	$	218,736		$	228,594
Direct costs	45,932			49,744
Profit	172,804			178,850
IoT Group
Revenue	21,483			13,101
Direct costs	23,450			16,437
Loss	(1,967		)	(3,336		)
Professional Services
Revenue	46,108			49,322
Direct costs	37,824			42,014
Profit	8,284			7,308
Total segment revenue	286,327			291,017
Total segment costs	107,206			108,195
Total segment profit	179,121			182,822
Other unallocated operating expenses	168,275			158,967
Restructuring charges	6,285			37,147
Total operating income (loss)	4,561			(13,292		)
Interest and other expense, net	11,064			6,253
Loss before income taxes	$	(6,503	)	$	(19,545	)