v2.3.0.11
Segment Information
 6 Months Ended
May 31, 2011
Segment Information [Abstract]  
Segment Information
Note 11: Segment Information
Operating segments, as defined under generally accepted accounting principles (GAAP), are components of an enterprise about which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. We internally report results to our chief operating decision maker on both a business unit basis and a functional basis. Our business units represent our segments for financial reporting purposes.
However, our organization is managed primarily on a functional basis. We assign dedicated costs and expenses directly to each business unit. We utilize an allocation methodology to assign all other costs and expenses to each business unit. A significant portion of the total costs and expenses assigned to each business unit are allocated. We disclose revenue and operating income based upon internal accounting methods. Our chief operating decision maker is our Chief Executive Officer.
We have three business units, each of which meet the criteria for segment reporting: (1) Application Development Platforms, which includes the OpenEdge, Orbix and ObjectStore product sets; (2) Enterprise Business Solutions, which includes the Apama, Sonic, Actional, Savvion and Fuse product sets; and (3) Enterprise Data Solutions, which includes the DataDirect Connect, DataDirect Shadow and DataServices product sets.
We do not manage our assets or capital expenditures by segment or assign other income and income taxes to segments. We manage and report such items on a consolidated company basis.
The following table provides revenue and income (losses) from operations for our reportable segments on an interim basis:
                                 
(In thousands)
    Three months ended May 31,     Six months ended May 31,  
    2011     2010     2011     2010  
 
Revenue:
                               
Application Development Platform segment
  $ 83,896     $ 84,601     $ 162,973     $ 166,457  
Enterprise Business Solutions segment
    34,192       24,862       71,364       52,554  
Enterprise Data Solutions segment
    16,626       18,799       34,659       37,252  
Reconciling items
    (30 )     (606 )     (75 )     (1,060 )
 
Total
  $ 134,684     $ 127,656     $ 268,921     $ 255,203  
 
Income (loss) from operations:
                               
Application Development Platform segment
  $ 48,183     $ 54,160     $ 94,839     $ 102,786  
Enterprise Business Solutions segment
    (9,243 )     (15,500 )     (16,078 )     (26,526 )
Enterprise Data Solutions segment
    890       (2,770 )     2,402       (7,616 )
Reconciling items
    (12,620 )     (13,145 )     (25,637 )     (50,278 )
 
Total
  $ 27,210     $ 22,745     $ 55,526     $ 18,366  
 
The reconciling items within revenue represent purchase accounting adjustments for deferred revenue related to acquisitions. The reconciling items within income from operations represent amortization of acquired intangibles, stock-based compensation, restructuring and acquisition-related expenses, purchase accounting adjustments for deferred revenue and certain unallocated administrative expenses. Reconciling items are excluded from segment measurements, as such amounts are not deducted from internal measurements of segment revenue or operating income.
In the following table, revenue attributed to North America includes sales to customers in the United States and Canada and licensing to certain multinational organizations, substantially all of which is invoiced from the United States. Revenue from Europe, Middle East and Africa (EMEA), Latin America and Asia Pacific includes shipments to customers in each region, not including certain multinational organizations, plus export shipments into each region that are billed from the United States. Information relating to revenue from external customers from different geographical areas is as follows:
                                 
(In thousands)
    Three months ended May 31,     Six months ended May 31,  
    2011     2010     2011     2010  
 
North America
  $ 60,448     $ 61,468     $ 124,926     $ 119,288  
EMEA
    52,908       46,192       104,323       98,472  
Latin America
    9,415       9,256       18,574       19,034  
Asia Pacific
    11,913       10,740       21,098       18,409  
 
Total
  $ 134,684     $ 127,656     $ 268,921     $ 255,203