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Segment and Geographic Information | 9 Months Ended
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Jun. 29, 2019
Segment Reporting [Abstract] |
Segment and Geographic Information | Segment and Geographic 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 and 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.
| Three months ended |  | Nine months ended
| As Reported ASC 606 |  | ASC 605 |  | As Reported ASC 605 |  | As Reported ASC 606 |  | ASC 605 |  | As Reported ASC 605
| June 29, 2019 |  | June 29, 2019 |  | June 30, 2018 |  | June 29, 2019 |  | June 29, 2019 |  | June 30, 2018
| (in thousands)
Software Products |  |  |  |  |  |  |  |  |  |  |
Revenue | $ | 253,405 |  |  | $ | 281,939 |  |  | $ | 273,619 |  |  | $ | 796,169 |  |  | $ | 858,228 |  |  | $ | 801,262 |
Operating Costs (1) | 94,829 |  |  | 94,341 |  |  | 96,465 |  |  | 280,370 |  |  | 278,572 |  |  | 293,546 |
Profit | 158,576 |  |  | 187,598 |  |  | 177,154 |  |  | 515,799 |  |  | 579,656 |  |  | 507,716 |
Professional Services |  |  |  |  |  |  |  |  |  |  |
Revenue | 42,081 |  |  | 40,471 |  |  | 41,158 |  |  | 124,457 |  |  | 118,438 |  |  | 128,041 |
Operating Costs (2) | 34,326 |  |  | 33,342 |  |  | 33,982 |  |  | 98,515 |  |  | 94,748 |  |  | 104,745 |
Profit | 7,755 |  |  | 7,129 |  |  | 7,176 |  |  | 25,942 |  |  | 23,690 |  |  | 23,296 |
Total segment revenue | 295,486 |  |  | 322,410 |  |  | 314,777 |  |  | 920,626 |  |  | 976,666 |  |  | 929,303 |
Total segment costs | 129,155 |  |  | 127,683 |  |  | 130,447 |  |  | 378,885 |  |  | 373,320 |  |  | 398,291 |
Total segment profit | 166,331 |  |  | 194,727 |  |  | 184,330 |  |  | 541,741 |  |  | 603,346 |  |  | 531,012 |
Unallocated operating expenses: |  |  |  |  |  |  |  |  |  |  |
Sales and marketing expenses | 102,332 |  |  | 107,663 |  |  | 102,891 |  |  | 291,028 |  |  | 305,144 |  |  | 290,739 |
General and administrative expenses | 26,310 |  |  | 26,310 |  |  | 25,474 |  |  | 77,937 |  |  | 77,937 |  |  | 80,320 |
Restructuring and other charges, net | (9 | ) |  | (9 | ) |  | 1,627 |  |  | 45,464 |  |  | 45,464 |  |  | 1,846 |
Intangibles amortization | 12,793 |  |  | 12,793 |  |  | 14,648 |  |  | 38,218 |  |  | 38,218 |  |  | 43,595 |
Stock-based compensation | 15,234 |  |  | 15,234 |  |  | 16,658 |  |  | 71,608 |  |  | 71,608 |  |  | 52,015 |
Other unallocated operating expenses (income) (3) | 366 |  |  | 366 |  |  | 1,485 |  |  | 995 |  |  | 995 |  |  | 1,425 |
Total operating income | 9,305 |  |  | 32,370 |  |  | 21,547 |  |  | 16,491 |  |  | 63,980 |  |  | 61,072 |
Interest expense | (10,816 | ) |  | (10,816 | ) |  | (10,646 | ) |  | (32,475 | ) |  | (32,475 | ) |  | (31,072 | )
Other income (expense), net | 1,026 |  |  | 736 |  |  | (930 | ) |  | 2,501 |  |  | 2,349 |  |  | (2,013 | )
Income before income taxes | $ | (485 | ) |  | $ | 22,290 |  |  | $ | 9,971 |  |  | $ | (13,483 | ) |  | $ | 33,854 |  |  | $ | 27,987 |
(1) Operating costs for the Software Products segment include all costs of software revenue and research and development costs, excluding stock-based compensation and intangible amortization. (2) Operating costs for the Professional Services segment include all cost of professional services revenue, excluding stock-based compensation, intangible amortization and fair value adjustments for deferred services costs. (3) Other unallocated operating expenses include acquisition-related and other transactional costs, pension plan termination-related costs and fair value adjustments for deferred services costs. We report revenue by the following two product groups:
| Three months ended |  | Nine months ended
| As Reported ASC 606 |  | ASC 605 |  | As Reported ASC 605 |  | As Reported ASC 606 |  | ASC 605 |  | As Reported ASC 605
| June 29, 2019 |  | June 29, 2019 |  | June 30, 2018 |  | June 29, 2019 |  | June 29, 2019 |  | June 30, 2018
| (in thousands)
Solutions | $ | 254,735 |  |  | $ | 278,581 |  |  | $ | 279,091 |  |  | $ | 805,146 |  |  | $ | 849,679 |  |  | $ | 831,754 |
IoT | 40,751 |  |  | 43,829 |  |  | 35,686 |  |  | 115,480 |  |  | 126,987 |  |  | 97,549 |
Total revenue | $ | 295,486 |  |  | $ | 322,410 |  |  | $ | 314,777 |  |  | $ | 920,626 |  |  | $ | 976,666 |  |  | $ | 929,303 |
Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.
| Three months ended |  | Nine months ended
| As Reported ASC 606 |  | ASC 605 |  | As Reported ASC 605 |  | As Reported ASC 606 |  | ASC 605 |  | As Reported ASC 605
| June 29, 2019 |  | June 29, 2019 |  | June 30, 2018 |  | June 29, 2019 |  | June 29, 2019 |  | June 30, 2018
| (in thousands)
Revenue: |  |  |  |  |  |  |  |  |  |  |
Americas | $ | 122,867 |  |  | $ | 144,389 |  |  | $ | 133,439 |  |  | $ | 384,437 |  |  | $ | 417,061 |  |  | $ | 388,923 |
Europe | 112,083 |  |  | 122,988 |  |  | 119,876 |  |  | 342,477 |  |  | 366,392 |  |  | 362,982 |
Asia-Pacific | 60,536 |  |  | 55,033 |  |  | 61,462 |  |  | 193,712 |  |  | 193,213 |  |  | 177,398 |
Total revenue | $ | 295,486 |  |  | $ | 322,410 |  |  | $ | 314,777 |  |  | $ | 920,626 |  |  | $ | 976,666 |  |  | $ | 929,303 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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