Business Segments and International Operations

Operating segments 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. Our chief operating decision maker is our Chief Executive Officer.

We operate as three distinct business segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment.

We do not manage our assets or capital expenditures by segment or assign other income (expense) and income taxes to segments. We manage and report such items on a consolidated company basis.

The following table provides revenue and contribution margin from our reportable segments and reconciles to the consolidated income from continuing operations before income taxes:



	Three Months Ended
	February 28, 2019			February 28, 2018
(In thousands)				As Adjusted⁽¹⁾
Segment revenue:
OpenEdge	$	65,252		$	66,663
Data Connectivity and Integration	6,000			9,492
Application Development and Deployment	18,297			19,255
Total revenue	89,549			95,410
Segment costs of revenue and operating expenses:
OpenEdge	18,315			15,762
Data Connectivity and Integration	1,500			1,629
Application Development and Deployment	5,427			6,798
Total costs of revenue and operating expenses	25,242			24,189
Segment contribution margin:
OpenEdge	46,937			50,901
Data Connectivity and Integration	4,500			7,863
Application Development and Deployment	12,870			12,457
Total contribution margin	64,307			71,221
Other unallocated expenses⁽²⁾	48,898			52,090
Income from operations	15,409			19,131
Other expense, net	(2,003		)	(1,585		)
Income before income taxes	$	13,406		$	17,546
⁽¹⁾The Company adopted ASC 606 effective December 1, 2018 using the full retrospective method. See Note 1. Nature of Business and Basis of Presentation for further information.
⁽²⁾The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: certain product development and corporate sales and marketing expenses, customer support, administration, amortization of acquired intangibles, stock-based compensation, fees related to shareholder activist, restructuring, and acquisition-related expenses.

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



	Three Months Ended
	February 28, 2019		February 28, 2018
(In thousands)			As Adjusted⁽¹⁾
Performance obligations transferred at a point in time:
Software licenses	$	22,802	$	26,054
Performance obligations transferred over time:
Maintenance	59,999		62,184
Services	6,748		7,172
Total revenue	$	89,549	$	95,410
⁽¹⁾The Company adopted ASC 606 effective December 1, 2018 using the full retrospective method. See Note 1. Nature of Business and Basis of Presentation for further information.

In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from EMEA, Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands):



	Three Months Ended
	February 28, 2019				February 28, 2018
(In thousands)					As Adjusted⁽¹⁾
North America	$	46,498	52	%	$	52,198	55	%
EMEA	33,372		37	%	33,296		35	%
Latin America	4,461		5	%	4,942		5	%
Asia Pacific	5,218		6	%	4,974		5	%
Total revenue	$	89,549	100	%	$	95,410	100	%
⁽¹⁾The Company adopted ASC 606 effective December 1, 2018 using the full retrospective method. See Note 1. Nature of Business and Basis of Presentation for further information.

No single customer, partner, or country outside of the U.S. has accounted for more than 10% of our total revenue for the three months ended February 28, 2019 and February 28, 2018. As of February 28, 2019 and November 30, 2018, no individual customer accounted for 10% or more of our net accounts receivable balance. As of February 28, 2019 and November 30, 2018, no individual foreign country accounting for 10% or more of total consolidated assets.