SEGMENT INFORMATION

12 Months Ended

Mar. 31, 2014

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

15. SEGMENT INFORMATION

The Company operates in three business segments: APM, Mainframe, and Covisint Application Services.

This business segment structure provides the Company with visibility and control over the operations of the business and increases its market agility, enabling it to more effectively capitalize on market conditions and competitive advantages to maximize revenue growth and profitability.

The Company’s products and services are offered worldwide to the largest IT organizations across a broad spectrum of technologies, including mainframe, distributed, Internet and mobile platforms. See note 1 for additional information related to each business segment.

The Company evaluates the performance of its segments based primarily on revenue growth and contribution margin which is operating profit before certain charges such as restructuring, internal information system support, finance, human resources, legal, administration and other corporate charges (“unallocated expenses”). The allocation of income taxes is not evaluated at the segment level. Financial information for the Company’s business segments was as follows (in thousands):

	Year Ended
	March 31, 2014
								Unallocated
								Expenses and
	APM		MF		AS			Eliminations (1)			Total
Software license fees	$	116,373	$	42,824							$	159,197
Maintenance fees		100,243		253,131								353,374
Subscription fees		80,857										80,857
Service fees		29,894		299								30,193
Application service fees					$	97,135						97,135
Total revenues		327,367		296,254		97,135						720,756
Operating expenses		298,924		74,384		120,233			179,360			672,901
Contribution /  operating margin from continuing operations	$	28,443	$	221,870	$	(23,098	)	$	(179,360	)	$	47,855

(1) Unallocated operating expenses include $12.0 million in restructuring expenses. See note 9 for additional information.

	Year Ended
	March 31, 2013 (2)
								Unallocated
	APM			MF		AS		Expenses (1)			Total
Software license fees	$	100,565		$	58,528						$	159,093
Maintenance fees		89,535			271,824							361,359
Subscription fees		79,862										79,862
Service fees		30,571			2,325							32,896
Application service fees						$	90,694					90,694
Total revenues		300,533			332,677		90,694					723,904
Operating expenses		304,835			91,325		86,084	$	199,256			681,500
Contribution / operating margin from continuing operations	$	(4,302	)	$	241,352	$	4,610	$	(199,256	)	$	42,404

(1) Unallocated operating expenses include $15.8 million in restructuring expenses. See note 9 for additional information.

(2) As discussed in Note 2, we have treated the operations of certain business segments as discontinued operations. The results for all periods have been restated to reflect such treatment.

	Year Ended
	March 31, 2012 (1)
								Unallocated
	APM			MF		AS		Expenses			Total
Software license fees	$	85,462		$	110,289						$	195,751
Maintenance fees		77,329			303,639							380,968
Subscription fees		76,246										76,246
Service fees		31,406			5,389							36,795
Application service fees						$	73,731					73,731
Total revenues		270,443			419,317		73,731					763,491
Operating expenses		317,621			99,310		72,717	$	190,030			679,678
Contribution / operating margin from continuing operations	$	(47,178	)	$	320,007	$	1,014	$	(190,030	)	$	83,813

(1) As discussed in Note 2, we have treated the operations of certain business segments as discontinued operations. The results for all periods have been restated to reflect such treatment.

No single customer accounted for greater than 10% of total revenue during the years ended March 31, 2014, 2013 or 2012, or greater than 10% of accounts receivable at March 31, 2014 or 2013.

The Company does not evaluate assets and capital expenditures on a segment basis, and accordingly such information is not provided.

Financial information from continuing operations regarding geographic operations is presented in the table below (in thousands):

	Year Ended March 31, (1)
	2014		2013		2012
Revenues:
United States	$	418,402	$	428,698	$	435,935
Europe and Africa		181,377		170,693		193,595
Other international operations		120,977		124,513		133,961
Total revenues	$	720,756	$	723,904	$	763,491

(1) As discussed in Note 2, we have treated the operations of certain business segments as discontinued operations. The results for all periods have been restated to reflect such treatment.

	March 31,
	2014		2013		2012
Long-lived assets:
United States	$	785,403	$	888,032	$	961,202
Austria		210,755		201,224		214,615
Other		14,210		17,082		24,210
Total long-lived assets	$	1,010,368	$	1,106,338	$	1,200,027

Long-lived assets are comprised of property, plant and equipment, goodwill and capitalized software. The long-lived assets in Austria are primarily comprised of goodwill associated with the dynaTrace acquisition (see note 3).