Business Segments and International Operations

12 Months Ended

Nov. 30, 2012

Segment Reporting [Abstract]

Business Segments and International Operations

Business Segments and International Operations

Operating segments, as defined under GAAP, are components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. We internally report results to our chief operating decision maker on both a product group basis and a functional basis. Our product groups represent our reportable segments for financial reporting purposes. We assign dedicated costs and expenses directly to each segment and utilize an allocation methodology to assign all other costs and expenses, primarily general and administrative, to each segment. We do not manage our assets or capital expenditures by segment or assign other income and income taxes to segments. We manage and report such items on a consolidated company basis. Our chief operating decision maker is our Chief Executive Officer.

In the third quarter of fiscal year 2012, as part of the Plan, we changed the structure of our internal organization and the way we manage our business. As a result of the change, our internal reporting was organized into the following segments, each of which meet the criteria of a reportable segment: (1) the Core segment, which includes the OpenEdge, DataDirect Connect and Decision Analytics (comprised of Apama, Corticon and the Progress Control Tower) product lines; and (2) the non-Core segment, which includes the Actional, Artix, DataXtend, FuseSource, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic product lines. The segment information for the prior periods presented has been restated to reflect the change in our reportable segments.

As of November 30, 2012, all of the non-Core product lines are included in discontinued operations (Note 7). As a result, the revenue and direct expenses of the non-Core product lines have been presented in income (loss) from discontinued operations and excluded from our segment results presented in the tables below. The indirect expenses required to operate the non-Core segment, which are not directly related to any of the product lines within the non-Core segment and therefore would not qualify for discontinued operations classification, continue to be presented in the non-Core segment. The indirect expenses of the non-Core segment will be absorbed by the Core segment or otherwise reduced as we complete our divestitures.

The following table provides revenue and income from operations for our reportable segments (in thousands):

	Fiscal Year Ended
	November 30, 2012			November 30, 2011			November 30, 2010
Revenue:
Core segment	$	335,205		$	360,704		$	351,610
Non-Core segment	—			—			—
Total revenue	$	335,205		$	360,704		$	351,610
Income (loss) from operations:
Core segment	$	111,276		$	161,900		$	173,662
Non-Core segment	(27,030		)	(32,306		)	(39,149		)
Unallocated items:
Amortization of acquired intangibles	(2,221		)	(3,566		)	(8,583		)
Stock-based compensation	(20,111		)	(20,108		)	(12,721		)
Transition expenses	—			(760		)	(352		)
Restructuring expenses	(8,100		)	(3,383		)	(22,711		)
Acquisition-related expenses	(215		)	(536		)	—
Stock option investigation expense	—			—			1,330
Litigation settlement	(900		)	—			—
Proxy contest-related costs	(3,259		)	—			—
Total income from operations	$	49,440		$	101,241		$	91,476

Unallocated items are excluded from segment income from operations, as such amounts are not deducted from internal measurements of income from operations and are not allocated to our reportable segments.

Our revenues are derived from licensing our products, and from related services, which consist of maintenance and consulting and education. Information relating to revenue from external customers by revenue type is as follows (in thousands):

	Fiscal Year Ended
	November 30, 2012		November 30, 2011		November 30, 2010
Software licenses	$	113,270	$	125,966	$	125,680
Maintenance	208,846		217,372		209,073
Professional services	13,089		17,366		16,857
Total	$	335,205	$	360,704	$	351,610

In the following table, revenue attributed to North America includes sales to customers in the U.S. and Canada and licensing to certain multinational organizations, substantially all of which is invoiced from the U.S. Revenue from Europe, the Middle East and Africa (EMEA), Latin America and the Asia Pacific region includes shipments to customers in each region, not including certain multinational organizations, plus export shipments into each region that are billed from the U.S. Information relating to revenue from external customers from different geographical areas is as follows (in thousands):

	Fiscal Year Ended
	November 30, 2012		November 30, 2011		November 30, 2010
North America	$	146,374	$	146,572	$	142,046
EMEA	131,151		153,206		146,643
Latin America	31,407		34,349		36,302
Asia Pacific	26,273		26,577		26,619
Total	$	335,205	$	360,704	$	351,610

Revenue from the United Kingdom totaled $35.7 million, $43.4 million and $39.7 million for fiscal years 2012, 2011 and 2010, respectively. No other country outside of the U.S. accounted for more than 10% of our consolidated revenue in any year presented. Long-lived assets totaled $57.9 million, $59.6 million and $54.7 million in the U.S. and $5.2 million, $6.6 million and $7.8 million outside of the U.S. at the end of fiscal years 2012, 2011 and 2010, respectively. No individual country outside of the U.S. accounted for more than 10% of our consolidated long-lived assets.