Segment Information (Tables)

3 Months Ended

Dec. 29, 2018

Segment Reporting Information [Line Items]

Revenue and Operating Income

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
	As Reported ASC 606			ASC 605			As Reported ASC 605
	December 29, 2018			December 29, 2018			December 30, 2017
	(in thousands)
Software Products
Revenue	$	293,243		$	299,388		$	265,190
Operating Costs (1)	91,628			90,845			99,732
Profit	201,615			208,543			165,458
Professional Services
Revenue	41,446			39,369			41,454
Operating Costs (2)	31,863			30,490			34,817
Profit	9,583			8,879			6,637
Total segment revenue	334,689			338,757			306,644
Total segment costs	123,491			121,335			134,549
Total segment profit	211,198			217,422			172,095
Unallocated operating expenses:
Sales and marketing expenses	94,496			97,583			94,496
General and administrative expenses	25,771			25,770			27,448
Restructuring charges, net	16,586			16,586			105
Restructuring and headquarters relocation charges, net	1,907			1,907			—
Intangibles amortization	12,653			12,653			14,496
Stock-based compensation	29,407			29,407			18,331
Other unallocated operating expenses (income) (3)	334			334			(97		)
Total operating income	30,044			33,182			17,316
Interest expense	(10,276		)	(10,276		)	(10,047		)
Other income (expense), net	655			548			(798		)
Income before income taxes	$	20,423		$	23,454		$	6,471

We report revenue by the following two product groups:

	Three months ended
	As Reported ASC 606		ASC 605		As Reported ASC 605
	December 29, 2018		December 29, 2018		December 30, 2017
	(in thousands)
Solutions	$	299,434	$	298,351	$	277,669
IoT	35,255		40,406		28,975
Total revenue	$	334,689	$	338,757	$	306,644

Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.

	Three months ended
	As Reported ASC 606		ASC 605		As Reported ASC 605
	December 29, 2018		December 29, 2018		December 30, 2017
	(in thousands)
Revenue:
Americas	$	141,853	$	134,897	$	127,007
Europe	111,352		120,157		121,466
Asia-Pacific	81,484		83,703		58,171
Total revenue	$	334,689	$	338,757	$	306,644

Segment Information

Segment and Geographical 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
	As Reported ASC 606			ASC 605			As Reported ASC 605
	December 29, 2018			December 29, 2018			December 30, 2017
	(in thousands)
Software Products
Revenue	$	293,243		$	299,388		$	265,190
Operating Costs (1)	91,628			90,845			99,732
Profit	201,615			208,543			165,458
Professional Services
Revenue	41,446			39,369			41,454
Operating Costs (2)	31,863			30,490			34,817
Profit	9,583			8,879			6,637
Total segment revenue	334,689			338,757			306,644
Total segment costs	123,491			121,335			134,549
Total segment profit	211,198			217,422			172,095
Unallocated operating expenses:
Sales and marketing expenses	94,496			97,583			94,496
General and administrative expenses	25,771			25,770			27,448
Restructuring charges, net	16,586			16,586			105
Restructuring and headquarters relocation charges, net	1,907			1,907			—
Intangibles amortization	12,653			12,653			14,496
Stock-based compensation	29,407			29,407			18,331
Other unallocated operating expenses (income) (3)	334			334			(97		)
Total operating income	30,044			33,182			17,316
Interest expense	(10,276		)	(10,276		)	(10,047		)
Other income (expense), net	655			548			(798		)
Income before income taxes	$	20,423		$	23,454		$	6,471

(1) Operating costs for the Software Products segment includes all costs 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.

We report revenue by the following two product groups:

	Three months ended
	As Reported ASC 606		ASC 605		As Reported ASC 605
	December 29, 2018		December 29, 2018		December 30, 2017
	(in thousands)
Solutions	$	299,434	$	298,351	$	277,669
IoT	35,255		40,406		28,975
Total revenue	$	334,689	$	338,757	$	306,644

Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.

	Three months ended
	As Reported ASC 606		ASC 605		As Reported ASC 605
	December 29, 2018		December 29, 2018		December 30, 2017
	(in thousands)
Revenue:
Americas	$	141,853	$	134,897	$	127,007
Europe	111,352		120,157		121,466
Asia-Pacific	81,484		83,703		58,171
Total revenue	$	334,689	$	338,757	$	306,644