Segment and Geographic Information

6 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment and Geographic Information

11. Segment and Geographic 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 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 31, 2022			March 31, 2021			March 31, 2022			March 31, 2021
Software Products
Revenue	$	462,250		$	421,767		$	875,843		$	815,188
Operating costs(1)		121,016			109,310			237,044			214,711
Profit		341,234			312,457			638,799			600,477
Professional Services
Revenue		42,977			40,018			87,105			75,648
Operating costs(2)		34,567			33,139			71,550			66,259
Profit		8,410			6,879			15,555			9,389
Total segment revenue		505,227			461,785			962,948			890,836
Total segment costs		155,583			142,449			308,594			280,970
Total segment profit		349,644			319,336			654,354			609,866
Unallocated operating expenses:
Sales and marketing expenses		104,962			115,873			217,357			225,599
General and administrative expenses		30,859			31,487			65,036			58,887
Restructuring and other charges, net		(1,562	)		469			32,429			716
Intangibles amortization		14,371			14,767			29,348			27,581
Stock-based compensation		37,921			44,740			83,863			90,828
Other unallocated operating expenses(3)		3,903			10,310			4,953			14,226
Total operating income		159,190			101,690			221,368			192,029
Interest and debt premium expense		(12,239	)		(12,925	)		(25,225	)		(24,444	)
Other expense, net		(43,385	)		(2,408	)		(37,201	)		(3,821	)
Income before income taxes	$	103,566		$	86,357		$	158,942		$	163,764

(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 costs of professional services revenue, excluding stock-based compensation.

(3) Other unallocated operating expenses include acquisition-related and other transactional 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
	March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
Americas	$	202,999	$	180,329	$	415,880	$	382,609
Europe		79,265		202,477		161,797		364,796
Asia Pacific		222,963		78,979		385,271		143,431
Total revenue	$	505,227	$	461,785	$	962,948	$	890,836