Segment Information

3 Months Ended

Sep. 30, 2020

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.

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

revenue. 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 and Other		Total
	(Dollars in Thousands)
Three Months Ended September 30, 2020
Segment revenue	$	108,717	$	6,254	$	114,971
Segment expenses (1)	(54,602)		(8,566)		(63,168)
Segment profit	$	54,115	$	(2,312)	$	51,803
Three Months Ended September 30, 2019
Segment revenue	$	131,391	$	8,786	$	140,177
Segment expenses (1)	(58,322)		(8,581)		(66,903)
Segment profit (loss)	$	73,069	$	205	$	73,274

(1)         Our reportable segments’ operating expenses include expenses directly attributable to the segments. Segment expenses include selling and marketing and research and development expenses. Segment expenses do not include allocations of general and administrative expense; interest income; interest expense; and other (expense) 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, 2020 and 2019:

	Three Months Ended September 30,
	2020		2019
	(Dollars in Thousands)
Total segment profit for reportable segments	$	51,803	$	73,274
General and administrative expense	(17,633)		(19,884)
Interest income	8,669		7,976
Interest (expense)	(2,095)		(3,000)
Other (expense) income, net	(1,469)		1,132
Income before income taxes	$	39,275	$	59,498