Segment and Geographic Information

3 Months Ended

Dec. 28, 2019

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 and 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.



(in thousands)	Three months ended
	December 28, 2019			December 29, 2018
Software Products
Revenue	$	314,366		$	293,243
Operating Costs ⁽¹⁾	102,192			91,628
Profit	212,174			201,615

Professional Services
Revenue	41,744			41,446
Operating Costs ⁽²⁾	33,747			31,863
Profit	7,997			9,583

Total segment revenue	356,110			334,689
Total segment costs	135,939			123,491
Total segment profit	220,171			211,198

Unallocated operating expenses:
Sales and marketing expenses	100,152			94,496
General and administrative expenses	26,919			25,771
Restructuring charges, net	14,034			16,586
Restructuring and other charges, net	—			1,907
Intangibles amortization	13,576			12,653
Stock-based compensation	27,936			29,407
Other unallocated operating expenses (income) ⁽³⁾	7,129			334
Total operating income	30,425			30,044

Interest expense	(12,098		)	(10,276		)
Other income (expense), net	704			655
Income before income taxes	$	19,031		$	20,423

(1) Operating costs for the Software Products segment include 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 include all cost of professional services revenue, excluding stock-based compensation and fair value adjustments for deferred services costs.

(3) Other unallocated operating expenses include acquisition-related and other transactional costs and fair value adjustments for deferred services costs.

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



(in thousands)	Three months ended
Revenue	December 28, 2019		December 29, 2018
Americas	$	155,973	$	141,853
Europe	136,521		111,352
Asia-Pacific	63,616		81,484
Total revenue	$	356,110	$	334,689