Segment Information

12 Months Ended

Dec. 31, 2019

SEGMENT INFORMATIONCitrix has one reportable segment. The Company's CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company's CEO is the CODM. International revenues (sales outside of the United States) accounted for 48.2%, 47.0% and 46.3% of the Company’s net revenues for the year ended December 31, 2019, 2018, and 2017, respectively.

Long-lived assets consist of property and equipment, net, and are shown below.


	December 31,
	2019		2018
	(In thousands)
Property and equipment, net:
United States	$	178,956	$	185,091
United Kingdom	24,681		25,459
Other countries	28,257		32,846
Total property and equipment, net	$	231,894	$	243,396

In fiscal years 2019 and 2018, one distributor, the Arrow Group, accounted for 15% and 14%, respectively, of the Company’s total net revenues. In fiscal year 2017, two distributors, Ingram Micro and the Arrow Group, accounted for 13% and 12%, respectively, of the Company’s total net revenues. The Company’s distributor arrangements with the Arrow Group and Ingram Micro consist of several non-exclusive, independently negotiated agreements with its subsidiaries, each of which covers different countries or regions.

Revenues by product grouping were as follows for the years ended:


	December 31,
	2019		2018		2017 ⁽⁴⁾
	(In thousands)
Net revenues:
Workspace ⁽¹⁾	$	2,127,350	$	2,024,289	$	1,901,952
Networking ⁽²⁾	750,268		817,193		790,434
Professional services ⁽³⁾	132,946		132,421		132,300
Total net revenues	$	3,010,564	$	2,973,903	$	2,824,686

(1)Workspace revenues are primarily comprised of sales from the Company’s application virtualization solutions, which include Citrix Workspace, Citrix Virtual Apps and Desktops, the Company's unified endpoint management solutions, which include Citrix Endpoint Management, related license updates and maintenance and support, Citrix Content Collaboration, and cloud offerings.

(2)Networking revenues primarily include Citrix ADC and Citrix SD-WAN, related license updates and maintenance and support and cloud offerings.

(3)Professional services revenues are primarily comprised of revenues from consulting services and product training and certification services.

(4)Prior period amounts have not been adjusted under the modified retrospective method of adoption of the revenue recognition standard.

Revenues by Geographic Location

The following table presents revenues by geographic location, for the years ended:


	December 31,
	2019		2018		2017 ⁽¹⁾
	(In thousands)
Net revenues:
Americas	$	1,704,763	$	1,716,876	$	1,644,008
EMEA	991,216		956,365		888,072
APJ	314,585		300,662		292,606
Total net revenues	$	3,010,564	$	2,973,903	$	2,824,686

(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method of adoption of the revenue recognition standard.

Export revenue represents shipments of finished goods and services from the United States to international customers, primarily in Latin America and Canada. Shipments from the United States to international customers for 2019, 2018 and 2017 were $161.2 million, $141.9 million and $151.9 million, respectively.

Strategic Service Providers

The Company defines Strategic Service Providers (SSP) as its three historically largest hyperscale Networking customers. The following table summarizes SSP revenue for the years ended:


	December 31,
	2019		2018		2017 ⁽¹⁾
	(In thousands)
Net revenues:
SSP revenue	$	119,929	$	152,995	$	174,881
Non-SSP revenue	2,890,635		2,820,908		2,649,805
Total net revenues	$	3,010,564	$	2,973,903	$	2,824,686

(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method of adoption of the revenue recognition standard.

Subscription Revenue

Subscription revenue relates to fees which are generally recognized ratably over the contractual term. The Company's subscription revenue includes Software as a Service (SaaS), which primarily consists of subscriptions delivered via a cloud service whereby the customer does not take possession of the software and hybrid subscription offerings; and non-SaaS, which consists primarily of on-premise licensing, hybrid subscription offerings, CSP services and the related support. The Company's hybrid subscription offerings are allocated between SaaS and non-SaaS, which are generally recognized at a point in time. The following table presents subscription revenues by SaaS and non-SaaS components, for the years ended:


	December 31,
	2019		2018		2017 ⁽¹⁾
	(In thousands)
Subscription:
SaaS	$	390,774	$	273,771	$	175,762
Non-SaaS	260,036		181,505		138,973
Total Subscription revenue	$	650,810	$	455,276	$	314,735

(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method of adoption of the revenue recognition standard.