SEGMENT INFORMATION

The Company's operating segments were determined based on how the Company's chief operating decision maker views and evaluates operations. Various factors, including market separation and customer specific applications, go-to market channels, and products and services, were considered in determining these operating segments. Segment operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to each segment and to assess performance. In each of its segments, the Company sells many individual products. For this reason it is impracticable to segregate and identify revenue for each of the individual products or group of products.

The Company’s reportable segments are described below:


•	Buildings and Infrastructure: This segment primarily serves customers working in architecture, engineering, construction and operations and maintenance.


•	Geospatial: This segment primarily serves customers working in surveying, engineering, government and land management.


•	Resources and Utilities: This segment primarily serves customers working in agriculture, forestry and utilities.


•	Transportation: This segment primarily serves customers working in long haul trucking, field service management, rail and military aviation.

The following Reporting Segment tables reflect the results of the Company’s reportable operating segments under its management reporting system. These results are not necessarily in conformity with U.S. GAAP. Beginning with the third quarter of fiscal 2018, the Company presented segment revenue and income excluding the effects of certain acquired deferred revenue that was written down to fair value in purchase accounting. Segment income presented also excludes the effects of certain acquired capitalized commissions that were eliminated in purchase accounting, along with other adjustments that have historically been excluded in prior periods, as though the acquired companies operated independently in the periods presented. This is consistent with the way the chief operating decision maker evaluates each of the segment's performance and allocates resources. Comparative period financial information by reportable segment has been recast to conform with the current presentation.



	Reporting Segments
	Buildings and Infrastructure			Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Third Quarter of Fiscal 2018
Revenue	$	286.6		$	185.4	$	133.0	$	190.2	$	795.2
Acquired deferred revenue adjustment	9.2			—		0.2		0.1		9.5
Segment revenue	$	295.8		$	185.4	$	133.2	$	190.3	$	804.7

Operating income	$	60.9		$	47.4	$	38.3	$	37.0	$	183.6
Acquired deferred revenue adjustment	9.2			—		0.2		0.1		9.5
Amortization of acquired capitalized commissions	(1.8		)	—		—		—		(1.8		)
Segment operating income	$	68.3		$	47.4	$	38.5	$	37.1	$	191.3

Depreciation expense	$	1.8		$	1.5	$	1.1	$	1.1	$	5.5
Third Quarter of Fiscal 2017
Revenue (*As Adjusted)	$	217.9		$	169.4	$	117.2	$	171.7	$	676.2
Acquired deferred revenue adjustment	0.1			—		0.4		0.2		0.7
Segment revenue	$	218.0		$	169.4	$	117.6	$	171.9	$	676.9

Operating income (*As Adjusted)	$	55.1		$	36.3	$	27.2	$	30.3	$	148.9
Acquired deferred revenue adjustment	0.1			—		0.4		0.2		0.7
Amortization of acquired capitalized commissions	(0.2		)	—		—		—		(0.2		)
Segment operating income	$	55.0		$	36.3	$	27.6	$	30.5	$	149.4

Depreciation expense	$	1.4		$	1.5	$	0.9	$	1.3	$	5.1



	Reporting Segments
	Buildings and Infrastructure			Geospatial		Resources and Utilities			Transportation			Total
(In millions)
First Three Quarters of Fiscal 2018
Revenue	$	785.6		$	544.3	$	437.2		$	555.8		$	2,322.9
Acquired deferred revenue adjustment	15.1			—		0.8			0.3			16.2
Segment revenue	$	800.7		$	544.3	$	438.0		$	556.1		$	2,339.1

Operating income	$	171.8		$	126.3	$	132.3		$	98.5		$	528.9
Acquired deferred revenue adjustment	15.1			—		0.8			0.3			16.2
Amortization of acquired capitalized commissions	(2.7		)	—		(0.2		)	—			(2.9		)
Segment operating income	$	184.2		$	126.3	$	132.9		$	98.8		$	542.2

Depreciation expense	$	4.6		$	4.4	$	3.1		$	3.4		$	15.5
First Three Quarters of Fiscal 2017
Revenue (*As Adjusted)	$	625.0		$	483.6	$	349.0		$	489.1		$	1,946.7
Acquired deferred revenue adjustment	0.4			—		0.6			0.5			1.5
Segment revenue	$	625.4		$	483.6	$	349.6		$	489.6		$	1,948.2

Operating income (*As Adjusted)	$	134.6		$	94.0	$	104.8		$	79.2		$	412.6
Acquired deferred revenue adjustment	0.4			—		0.6			0.5			1.5
Amortization of acquired capitalized commissions	(0.7		)	—		(0.1		)	(0.1		)	(0.9		)
Segment operating income	$	134.3		$	94.0	$	105.3		$	79.6		$	413.2

Depreciation expense	$	4.7		$	4.3	$	2.1		$	4.1		$	15.2



	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
As of the Third Quarter of Fiscal 2018
Accounts receivable, net	$	165.1	$	125.8	$	71.0	$	114.1	$	476.0
Inventories	66.5		131.4		45.5		42.9		286.3
Goodwill	1,983.1		408.1		310.0		847.4		3,548.6
As of Fiscal Year End 2017
Accounts receivable, net (*As Adjusted)	120.1		121.5		78.5		107.6		427.7
Inventories (*As Adjusted)	62.1		110.3		46.0		46.2		264.6
Goodwill	$	706.8	$	415.3	$	314.5	$	850.5	$	2,287.1

* See Note 2 for a summary of adjustments

A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows:



	Third Quarter of						First Three Quarters of
	2018			2017			2018			2017
				*As Adjusted						*As Adjusted
(In millions)
Consolidated segment operating income	$	191.3		$	149.4		$	542.2		$	413.2
Unallocated corporate expense	(24.3		)	(23.0		)	(70.2		)	(61.8		)
Restructuring charges	(2.6		)	(1.6		)	(6.8		)	(7.8		)
Acquired deferred revenue adjustment	(9.5		)	(0.7		)	(16.2		)	(1.5		)
Amortization of purchased intangible assets	(49.8		)	(40.0		)	(132.9		)	(109.1		)
Stock-based compensation	(18.8		)	(16.1		)	(53.1		)	(45.0		)
Amortization of acquired capitalized commissions	1.8			0.2			2.9			0.9
Amortization of acquisition-related inventory step-up	—			(2.2		)	—			(2.8		)
Acquisition / divestiture items	(10.7		)	0.3			(34.8		)	(6.1		)
Consolidated operating income	77.4			66.3			231.1			180.0
Non-operating income (expense), net:	(13.3		)	5.6			(21.1		)	19.6
Consolidated income before taxes	$	64.1		$	71.9		$	210.0		$	199.6

* See Note 2 for a summary of adjustments

On a total Company basis, the disaggregation of revenue by geography is summarized in the tables below. Revenue is defined as revenue from external customers attributed to countries based on the location of the customer and excludes the effects of certain acquired deferred revenue that was written down to fair value in purchase accounting, consistent with the Reporting Segment tables above.



	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Third Quarter of Fiscal 2018
North America	$	167.8	$	83.4	$	43.5	$	156.7	$	451.4
Europe	77.7		48.8		55.3		21.7		203.5
Asia Pacific	45.0		42.2		12.1		11.5		110.8
Rest of World	5.3		11.0		22.3		0.4		39.0
Total consolidated revenue	$	295.8	$	185.4	$	133.2	$	190.3	$	804.7
Third Quarter of Fiscal 2017 (*As Adjusted)
North America	$	111.9	$	74.9	$	37.4	$	142.3	$	366.5
Europe	60.1		44.1		45.4		18.5		168.1
Asia Pacific	37.1		39.4		13.4		9.3		99.2
Rest of World	8.9		11.0		21.4		1.8		43.1
Total consolidated revenue	$	218.0	$	169.4	$	117.6	$	171.9	$	676.9
First Three Quarters of Fiscal 2018
North America	$	433.2	$	223.0	$	140.3	$	455.0	$	1,251.5
Europe	236.9		154.6		197.6		64.4		653.5
Asia Pacific	111.6		130.4		35.7		35.0		312.7
Rest of World	19.0		36.3		64.4		1.7		121.4
Total consolidated revenue	$	800.7	$	544.3	$	438.0	$	556.1	$	2,339.1
First Three Quarters of Fiscal 2017 (*As Adjusted)
North America	$	326.8	$	194.3	$	125.1	$	406.6	$	1,052.8
Europe	180.3		131.5		131.9		52.1		495.8
Asia Pacific	91.9		119.4		35.7		26.8		273.8
Rest of World	26.4		38.4		56.9		4.1		125.8
Total consolidated revenue	$	625.4	$	483.6	$	349.6	$	489.6	$	1,948.2

* Adjusted to reflect adoption of the new revenue recognition standard, Revenue from Contracts with Customers. For further information, see Note 2.