Segment and Geographic Information

6 Months Ended

Mar. 28, 2020

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						Six months ended
	March 28, 2020			March 30, 2019			March 28, 2020			March 30, 2019
Software Products
Revenue	$	324,080		$	249,521		$	638,446		$	542,764
Operating Costs ⁽¹⁾	94,912			93,913			197,104			185,541
Profit	229,168			155,608			441,342			357,223

Professional Services
Revenue	35,523			40,930			77,267			82,376
Operating Costs ⁽²⁾	33,425			32,326			67,172			64,189
Profit	2,098			8,604			10,095			18,187

Total segment revenue	359,603			290,451			715,713			625,140
Total segment costs	128,337			126,239			264,276			249,730
Total segment profit	231,266			164,212			451,437			375,410

Unallocated operating expenses:
Sales and marketing expenses	100,292			94,200			200,444			188,696
General and administrative expenses	27,795			25,856			54,714			51,627
Restructuring and other charges, net	18,242			26,980			32,276			45,473
Intangibles amortization	14,167			12,772			27,743			25,425
Stock-based compensation	20,484			26,967			48,420			56,374
Other unallocated operating expenses (income) ⁽³⁾	261			295			7,390			629
Total operating income (loss)	50,025			(22,858		)	80,450			7,186

Interest expense	(32,618		)	(11,383		)	(44,716		)	(21,659		)
Other income (expense), net	(1,629		)	821			(925		)	1,475
Income (loss) before income taxes	$	15,778		$	(33,420	)	$	34,809		$	(12,998	)

(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				Six months ended
Revenue	March 28, 2020		March 30, 2019		March 28, 2020		March 30, 2019
Americas	$	153,993	$	119,717	$	309,967	$	261,570
Europe	146,422		119,045		282,943		230,397
Asia-Pacific	59,188		51,689		122,803		133,173
Total revenue	$	359,603	$	290,451	$	715,713	$	625,140