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Segment Information
 3 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment Information
Segment 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.
 
The subscription and software segment is engaged in the licensing of process optimization and asset performance management software solutions and associated support services. The services segment includes professional services and training. 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)
Three Months Ended September 30, 2017
 

 
 

 
 

Segment revenue
$
115,756

 
$
7,025

 
$
122,781

Segment expenses (1)
(48,843
)
 
(6,949
)
 
(55,792
)
Segment profit
$
66,913

 
$
76

 
$
66,989

Three Months Ended September 30, 2016
 

 
 

 
 

Segment revenue
$
113,444

 
$
6,606

 
$
120,050

Segment expenses (1)
(45,726
)
 
(6,437
)
 
(52,163
)
Segment profit
$
67,718

 
$
169

 
$
67,887



(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, net.

Reconciliation to Income before Income Taxes
 
The following table presents a reconciliation of total segment profit to income before income taxes for the three months ended September 30, 2017 and 2016:
 
 
Three Months Ended
September 30,
 
2017
 
2016
 
(Dollars in Thousands)
 
 
 
 
Total segment profit for reportable segments
$
66,989

 
$
67,887

General and administrative
(13,676
)
 
(13,157
)
Other (expense) income, net
(616
)
 
646

Interest (expense) income, net
(1,065
)
 
(597
)
Income before income taxes
$
51,632

 
$
54,779