Segment and Geographic Information

12 Months Ended

Jun. 30, 2013

Segment and Geographic Information

Segment and Geographic Information

(12) Segment and Geographic Information

        Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our President and Chief Executive Officer.

        We have three operating segments: license; SMS, training, and other; and professional services. The chief operating decision maker assesses financial performance and allocates resources based upon the three lines of business.

        The license line of business is engaged in the development and licensing of software. The SMS, training, and other line of business provides customers with a wide range of support services that include on-site support, telephone support, software updates and various forms of training on how to use our products. The professional services line of business offers implementation, advanced process control, real-time optimization and other professional services.

        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 show assets, capital expenditures, depreciation or amortization by operating segments.

        The following table presents a summary of operating segments:

	License		SMS, Training, and Other		Professional Services			Total
	(Dollars in Thousands)
Year Ended June 30, 2013—
Segment revenue	$	239,654	$	44,877	$	26,856		$	311,387
Segment expenses		68,448		6,753		23,540			98,741
Segment operating profit(1)	$	171,206	$	38,124	$	3,316		$	212,646
Year Ended June 30, 2012—
Segment revenue	$	166,688	$	54,025	$	22,421		$	243,134
Segment expenses		71,050		9,631		24,505			105,186
Segment operating profit (loss)(1)	$	95,638	$	44,394	$	(2,084	)	$	137,948
Year Ended June 30, 2011—
Segment revenue	$	103,699	$	65,121	$	29,334		$	198,154
Segment expenses		66,821		13,495		25,404			105,720
Segment operating profit(1)	$	36,878	$	51,626	$	3,930		$	92,434

(1)

The segment operating profits (losses) reported reflect the direct expenses of the operating segment and contain certain allocations of selling and marketing, general and administrative, research and development, and do not contain restructuring and other corporate expenses incurred in support of the segments.

Reconciliation to Income (Loss) Before Provision for (Benefit from) Income Taxes

        The following table presents a reconciliation of total segment operating profit to income (loss) before provision for (benefit from) income taxes:

	Year Ended June 30,
	2013			2012			2011
	(Dollars in Thousands)
Total segment operating profit for reportable segments	$	212,646		$	137,948		$	92,434
Cost of subscription and software		(12,788	)		(10,617	)		(5,213	)
Marketing		(13,119	)		(13,231	)		(12,690	)
Research and development		(51,735	)		(47,391	)		(41,932	)
General and administrative		(39,340	)		(44,780	)		(51,363	)
Information technology and overhead		(25,432	)		(24,831	)		(26,360	)
Stock-based compensation		(14,637	)		(12,406	)		(9,699	)
Restructuring charges		5			301			247
Other (expense) income, net		(1,117	)		(3,519	)		2,919
Interest income, net		2,955			3,374			7,937
Income (loss) before provision for (benefit from) income taxes	$	57,438		$	(15,152	)	$	(43,720	)

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,
	2013			2012			2011
United States		38.5	%		29.5	%		35.8	%
Europe		29.3			33.7			26.6
Other(1)		32.2			36.8			37.6
		100.0	%		100.0	%		100.0	%

(1)

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

        During fiscal 2013, 2012 and 2011, there were no customers that individually represented greater than 10% of our total revenue.

        We have long-lived assets of approximately $17.4 million that are located domestically and $18.4 million that reside in other geographic locations as of June 30, 2013.