Business Segments and International Operations

12 Months Ended

Nov. 30, 2019

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.

The changes made to our organization during fiscal years 2019 and 2018, as discussed in Note 13, did not change our determination of the three reportable segments as our organizational structure maintains the focus of the three business segments.

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:



	Fiscal Year Ended
(In thousands)	November 30, 2019			November 30, 2018			November 30, 2017
				As Adjusted⁽¹⁾			As Adjusted⁽¹⁾
Segment revenue:
OpenEdge	$	296,929		$	277,806		$	279,823
Data Connectivity and Integration	39,903			23,129			29,434
Application Development and Deployment	76,466			78,046			79,897
Total revenue	413,298			378,981			389,154
Segment costs of revenue and operating expenses:
OpenEdge	85,209			67,820			75,791
Data Connectivity and Integration	7,973			7,634			10,270
Application Development and Deployment	23,993			27,087			27,116
Total costs of revenue and operating expenses	117,175			102,541			113,177
Segment contribution margin:
OpenEdge	211,720			209,986			204,032
Data Connectivity and Integration	31,930			15,495			19,164
Application Development and Deployment	52,473			50,959			52,781
Total contribution margin	296,123			276,440			275,977
Other unallocated expenses⁽²⁾	256,039			208,626			218,487
Income from operations	40,084			67,814			57,490
Other expense, net	(11,589		)	(7,018		)	(5,027		)
Income before income taxes	$	28,495		$	60,796		$	52,463
⁽¹⁾The Company adopted the accounting standard related to revenue recognition ("ASC 606") effective December 1, 2018 using the full retrospective method. See Note 1. Nature of Business and Summary of Significant Accounting Policies 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 and impairment of acquired intangibles, impairment of long-lived assets, loss on assets held for sale, 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):



	Fiscal Year Ended
	November 30, 2019		November 30, 2018		November 30, 2017
			As Adjusted⁽¹⁾		As Adjusted⁽¹⁾
Performance obligations transferred at a point in time:
Software licenses	$	122,552	$	99,800	$	113,643
Performance obligations transferred over time:
Maintenance	259,006		249,171		243,508
Services	31,740		30,010		32,003
Total revenue	$	413,298	$	378,981	$	389,154
⁽¹⁾The Company adopted the accounting standard related to revenue recognition ("ASC 606") effective December 1, 2018 using the full retrospective method. See Note 1. Nature of Business and Summary of Significant Accounting Policies for further information.

In the following table, revenue attributed to the United States includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Canada, 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):



	Fiscal Year Ended
	November 30, 2019		November 30, 2018		November 30, 2017
			As Adjusted⁽¹⁾		As Adjusted⁽¹⁾
United States	$	213,252	$	187,627	$	214,232
Canada	20,659		16,630		21,583
EMEA	137,301		135,055		117,509
Latin America	19,665		18,046		16,002
Asia Pacific	22,421		21,623		19,828
Total revenue	$	413,298	$	378,981	$	389,154
⁽¹⁾The Company adopted the accounting standard related to revenue recognition ("ASC 606") effective December 1, 2018 using the full retrospective method. See Note 1. Nature of Business and Summary of Significant Accounting Policies for further information.

No single customer, partner, or country outside of the U.S. has accounted for more than 10% of our consolidated revenue in any year presented. Long-lived assets totaled $25.7 million, $25.8 million and $39.5 million in the U.S. and $4.1 million, $4.9 million and $2.8 million outside of the U.S. at the end of fiscal years 2019, 2018 and 2017, respectively. No individual country outside of the U.S. accounted for more than 10% of our consolidated long-lived assets.