Segment Information

Effective with the beginning of fiscal 2018, we changed our segments, see Note 1. Basis of Presentation for additional 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, subscription and related support revenue (including updates and technical support) for all our products; and (2) Professional Services, which includes consulting, implementation and training services. We do not allocate sales & marketing or general and administrative expense to our operating segments as these activities are managed on a consolidated basis. Additionally, 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						Nine months ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
	(in thousands)
Software Products
Revenue	$	273,619		$	247,635		$	801,262		$	722,724
Operating Costs (1)	96,422			94,325			293,417			273,196
Profit	177,197			153,310			507,845			449,528

Professional Services
Revenue	41,158			43,658			128,041			134,936
Operating Costs (2)	33,945			35,588			104,634			110,681
Profit	7,213			8,070			23,407			24,255

Total segment revenue	314,777			291,293			929,303			857,660
Total segment costs	130,367			129,913			398,051			383,877
Total segment profit	184,410			161,380			531,252			473,783

Unallocated operating expenses:
Sales and marketing expenses	102,831			89,805			290,559			260,521
General and administrative expenses	25,458			27,263			80,272			81,270
Restructuring and headquarters relocation charges, net	1,627			1,551			1,846			8,300
Intangibles amortization	14,648			14,490			43,595			43,280
Stock-based compensation	16,658			16,574			52,015			56,139
Other unallocated operating expenses (3)	1,485			441			1,425			943
Total operating income	21,703			11,256			61,540			23,330

Interest expense	(10,646		)	(10,200		)	(31,072		)	(32,239		)
Interest income and other expense, net	(1,086		)	(357		)	(2,481		)	2,049
Income (loss) before income taxes	$	9,971		$	699		$	27,987		$	(6,860	)
(1) Operating costs for the Software Products segment includes all cost of software revenue and research and development costs, excluding stock-based compensation and intangible amortization.
(2) Operating costs for the Professional Services segment includes all cost of professional services revenue, excluding stock-based compensation, intangible amortization, and fair value adjustments for deferred services costs.
(3) Other unallocated operating expenses include acquisition-related and other transactional costs, pension plan termination-related costs and fair value adjustments for deferred services costs.