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Segment Information | 12 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Segment Information | Segment Information Effective with the beginning of fiscal 2018, we changed our segments, see Note A. Description of Business and Basis of Presentation for additional information. We operate within a single industry segment -- computer software and related services. Operating segments as defined under GAAP are 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 two operating and reportable segments: (1) Software Products, which includes license, subscription and related support revenue (including updates and technical support) for all our products; and (2) Professional Services, which includes consulting, implementation and training services. We do not allocate sales & marketing or general and administrative expense to our operating segments as these activities are managed on a consolidated basis. Additionally, segment profit does not include stock-based compensation, amortization of intangible assets, restructuring charges and certain other identified costs that we do not allocate to the segments for purposes of evaluating their operational performance. The revenue and profit attributable to our operating segments are summarized below. We do not produce asset information by reportable segment; therefore, it is not reported.
| Year ended September 30,
| 2018 |  | 2017 |  | 2016
| (in thousands)
Software Products |  |  |  |  |
Revenue | $ | 1,088,487 |  |  | $ | 987,316 |  |  | $ | 943,596 |
Operating Costs (1) | 387,817 |  |  | 367,224 |  |  | 344,594 |
Profit | 700,670 |  |  | 620,092 |  |  | 599,002 |
Professional Services |  |  |  |  |
Revenue | 153,337 |  |  | 176,723 |  |  | 196,937 |
Operating Costs (2) | 136,816 |  |  | 145,091 |  |  | 165,325 |
Profit | 16,521 |  |  | 31,632 |  |  | 31,612 |
Total segment revenue | 1,241,824 |  |  | 1,164,039 |  |  | 1,140,533 |
Total segment costs | 524,633 |  |  | 512,315 |  |  | 509,919 |
Total segment profit | 717,191 |  |  | 651,724 |  |  | 630,614 |
Unallocated operating expenses: |  |  |  |  |
Sales and marketing expenses | 389,631 |  |  | 357,573 |  |  | 352,806 |
General and administrative expenses | 108,095 |  |  | 108,439 |  |  | 108,548 |
Restructuring and headquarters relocation charges, net | 3,764 |  |  | 7,942 |  |  | 76,273 |
Intangibles amortization | 58,056 |  |  | 58,729 |  |  | 57,802 |
Stock-based compensation | 82,939 |  |  | 76,708 |  |  | 65,996 |
Other unallocated operating expenses (3) | 1,469 |  |  | 1,435 |  |  | 6,203 |
Total operating income | 73,237 |  |  | 40,898 |  |  | (37,014 | )
Interest expense | (41,673 | ) |  | (42,400 | ) |  | (29,882 | )
Interest income and other expense, net | (2,908 | ) |  | 96 |  |  | (296 | )
Income (loss) before income taxes | $ | 28,656 |  |  | $ | (1,406 | ) |  | $ | (67,192 | )
(1) Operating costs for the Software Products segment includes all cost of software revenue and research and development costs, excluding stock-based compensation and intangible amortization. Operating costs for the Software Products segment includes depreciation of $5.1 million, $5.0 million and $4.7 million in 2018, 2017 and 2016, respectively. (2) Operating costs for the Professional Services segment includes all cost of professional services revenue, excluding stock-based compensation, intangible amortization, and fair value adjustments for deferred services costs. The Professional Services segment includes depreciation of $1.6 million, $1.8 million and $2.0 million in 2018, 2017 and 2016, respectively. (3) Other unallocated operating expenses include acquisition-related and other transactional costs, certain legal accrual expenses, pension plan termination-related costs and fair value adjustments for deferred services costs. Unallocated departments include depreciation of $22.7 million, $21.2 million and $22.1 million in 2018, 2017 and 2016, respectively. We report revenue by the following four product areas:
• | CAD: Creo® and Mathcad®.
• | PLM: PLM solutions (primarily Windchill®), Integrity™ and Atego®.
• | IoT: ThingWorx®, Vuforia® and Kepware®.
• | Other, including service parts management.
| Year ended September 30,
| 2018 |  | 2017 |  | 2016
| (in thousands)
CAD | $ | 499,772 |  |  | $ | 474,608 |  |  | $ | 462,307 |
PLM | 483,327 |  |  | 454,299 |  |  | 456,285 |
IoT | 139,278 |  |  | 103,359 |  |  | 80,297 |
Other | 119,447 |  |  | 131,773 |  |  | 141,644 |
Total revenue | $ | 1,241,824 |  |  | $ | 1,164,039 |  |  | $ | 1,140,533 |
Revenue and long-lived tangible assets for the geographic regions in which we operate is presented below.
| Year ended September 30,
| 2018 |  | 2017 |  | 2016
| (in thousands)
Revenue: |  |  |  |  |
Americas (1) | $ | 511,237 |  |  | $ | 500,879 |  |  | $ | 487,594 |
Europe (2) | 485,851 |  |  | 435,183 |  |  | 424,268 |
Asia-Pacific | 244,736 |  |  | 227,977 |  |  | 228,671 |
Total revenue | $ | 1,241,824 |  |  | $ | 1,164,039 |  |  | $ | 1,140,533 |
| September 30,
| 2018 |  | 2017 |  | 2016
| (in thousands)
Long-lived tangible assets: |  |  |  |  |
Americas (3) | $ | 67,704 |  |  | $ | 47,055 |  |  | $ | 48,281 |
Europe | 5,303 |  |  | 6,284 |  |  | 6,915 |
Asia-Pacific | 7,606 |  |  | 10,261 |  |  | 11,917 |
Total long-lived tangible assets | $ | 80,613 |  |  | $ | 63,600 |  |  | $ | 67,113 |
(1) | Includes revenue in the United States totaling $487.3 million, $475.5 million and $463.1 million for 2018, 2017 and 2016, respectively.
(2) | Includes revenue in Germany totaling $193.3 million, $164.7 million and $167.2 million for 2018, 2017 and 2016, respectively.
(3) | Substantially all of the Americas long-lived tangible assets are located in the United States.
Our international revenue is presented based on the location of our customer. We license products to customers worldwide. Our sales and marketing operations outside the United States are conducted principally through our international sales subsidiaries throughout Europe and the Asia-Pacific regions. Intercompany sales and transfers between geographic areas are accounted for at prices that are designed to be representative of unaffiliated party transactions.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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