Segment Information

9 Months Ended

Mar. 31, 2022

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 March 31, 2022
Segment revenue	$	180,049	$	7,704	$	187,753
Segment expenses (1)	(67,930)		(8,373)		(76,303)
Segment profit (loss)	$	112,119	$	(669)	$	111,450
Three Months Ended March 31, 2021
Segment revenue	$	155,989	$	6,737	$	162,726
Segment expenses (1)	(63,878)		(8,396)		(72,274)
Segment profit (loss)	$	92,111	$	(1,659)	$	90,452
Nine Months Ended March 31, 2022
Segment revenue	$	473,862	$	21,267	$	495,129
Segment expenses (1)	(194,028)		(24,436)		(218,464)
Segment profit (loss)	$	279,834	$	(3,169)	$	276,665
Nine Months Ended March 31, 2021
Segment revenue	$	491,694	$	19,721	$	511,415
Segment expenses (1)	(173,593)		(24,911)		(198,504)
Segment profit (loss)	$	318,101	$	(5,190)	$	312,911

(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 and nine months ended March 31, 2022 and 2021:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2022		2021		2022		2021
	(Dollars in Thousands)
Total segment profit for reportable segments	$	111,450	$	90,452	$	276,665	$	312,911
General and administrative expense	(30,694)		(21,553)		(87,542)		(60,389)
Interest income	8,287		8,410		25,646		26,383
Interest (expense)	(1,572)		(1,495)		(4,626)		(5,639)
Other (expense), net	522		(5)		(2,107)		(1,807)
Income before income taxes	$	87,993	$	75,809	$	208,036	$	271,459