Segment and Geographic Information

12 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

Operating segments are defined as 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 to assess performance. Our chief operating decision maker is our President and Chief Executive Officer.

We have two operating and reportable segments, which are consistent with our reporting units: i) subscription and software and ii) services. The subscription and software segment is engaged in the licensing of asset optimization software solutions and associated support services. The services segment includes professional services and training.

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies (refer to Note 2). We do not track assets or capital expenditures by operating segments. Consequently, it is not practical to present assets, capital expenditures, depreciation or amortization by operating segments.

The following table presents a summary of our reportable segments' profits:

	Subscription and software			Services			Total
	(Dollars in Thousands)
Year Ended June 30, 2017:
Segment revenue	$	453,512		$	29,430		$	482,942
Segment expenses(1)	(193,214		)	(26,415		)	(219,629		)
Segment profit	$	260,298		$	3,015		$	263,313
Year Ended June 30, 2016:
Segment revenue	$	440,408		$	31,936		$	472,344
Segment expenses(1)	(179,064		)	(28,235		)	(207,299		)
Segment profit	$	261,344		$	3,701		$	265,045
Year Ended June 30, 2015:
Segment revenue	$	405,640		$	34,761		$	440,401
Segment expenses(1)	(183,485		)	(28,411		)	(211,896		)
Segment profit	$	222,155		$	6,350		$	228,505

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(1) Our reportable segments’ operating expenses include expenses directly attributable to the segments. Segment expenses include selling and marketing, research and development, stock-based compensation and certain corporate expenses incurred in support of the segments. Segment expenses do not include allocations of general and administrative; interest income, net; and other income (expense), net.

Reconciliation to Income Before Provision for Income Taxes

The following table presents a reconciliation of total segment operating profit to income before provision for income taxes:

	Year Ended June 30,
	2017			2016			2015
	(Dollars in Thousands)
Total segment profit for reportable segments	$	263,313		$	265,045		$	228,505
General and administrative	(51,297		)	(53,664		)	(48,713		)
Other income (expense), net	1,309			29			(778		)
Interest income (expense), net	(2,979		)	(771		)	457
Income before provision for income taxes	$	210,346		$	210,639		$	179,471

Geographic Information:

Revenue to external customers is attributed to individual countries based on the location the product or services are sold. Domestic and international sales as a percentage of total revenue are as follows:

	Year Ended June 30,
	2017		2016		2015
United States	37.9	%	35.4	%	34.6	%
Europe	28.1		29.6		30.6
Other(1)	34.0		35.0		34.8
	100.0	%	100.0	%	100.0	%

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(1) Other consists primarily of Asia Pacific, Canada, Latin America and the Middle East.

We have long-lived assets of approximately $71.9 million that are located domestically and $15.5 million that reside in other geographic locations as of June 30, 2017. We had long-lived assets of approximately $31.6 million that were located domestically and $14.6 million that reside in other geographic locations as of June 30, 2016.