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Business Segments and International Operations | 9 Months Ended
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Aug. 31, 2017
Segment Reporting [Abstract] |
Business Segments and International Operations | Business Segments and International Operations Operating segments are 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 assess performance. Our chief operating decision maker is our Chief Executive Officer. The changes made to our organization during the fourth quarter of fiscal year 2016 and first quarter of fiscal year 2017, as discussed in Note 11, did not change our determination of the three reportable segments as our organizational structure maintains the focus of the three business segments. We do not manage our assets or capital expenditures by segment or assign other income (expense) and income taxes to segments. We manage and report such items on a consolidated company basis. The following table provides revenue and contribution from our reportable segments and reconciles to the consolidated income before income taxes:
| Three Months Ended |  | Nine Months Ended
(In thousands) | August 31, 2017 |  | August 31, 2016 |  | August 31, 2017 |  | August 31, 2016
Segment revenue: |  |  |  |  |  |  |
OpenEdge | $ | 68,135 |  |  | $ | 67,534 |  |  | $ | 198,533 |  |  | $ | 198,595 |
Data Connectivity and Integration | 8,987 |  |  | 14,251 |  |  | 22,911 |  |  | 30,852 |
Application Development and Deployment | 20,188 |  |  | 20,233 |  |  | 60,049 |  |  | 58,170 |
Total revenue | 97,310 |  |  | 102,018 |  |  | 281,493 |  |  | 287,617 |
Segment costs of revenue and operating expenses: |  |  |  |  |  |  |
OpenEdge | 18,374 |  |  | 18,180 |  |  | 52,538 |  |  | 53,539 |
Data Connectivity and Integration | 2,200 |  |  | 2,828 |  |  | 6,531 |  |  | 8,863 |
Application Development and Deployment | 6,369 |  |  | 11,021 |  |  | 19,896 |  |  | 29,555 |
Total costs of revenue and operating expenses | 26,943 |  |  | 32,029 |  |  | 78,965 |  |  | 91,957 |
Segment contribution: |  |  |  |  |  |  |
OpenEdge | 49,761 |  |  | 49,354 |  |  | 145,995 |  |  | 145,056 |
Data Connectivity and Integration | 6,787 |  |  | 11,423 |  |  | 16,380 |  |  | 21,989 |
Application Development and Deployment | 13,819 |  |  | 9,212 |  |  | 40,153 |  |  | 28,615 |
Total contribution | 70,367 |  |  | 69,989 |  |  | 202,528 |  |  | 195,660 |
Other unallocated expenses (1) | 50,068 |  |  | 56,383 |  |  | 160,723 |  |  | 163,005 |
Income from operations | 20,299 |  |  | 13,606 |  |  | 41,805 |  |  | 32,655 |
Other (expense) income, net | (1,400 | ) |  | (1,288 | ) |  | (4,299 | ) |  | (4,474 | )
Income before income taxes | $ | 18,899 |  |  | $ | 12,318 |  |  | $ | 37,506 |  |  | $ | 28,181 |
(1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: product development, corporate marketing, administration, amortization of acquired intangibles, stock-based compensation, restructuring, and acquisition related expenses.
Our revenues are derived from licensing our products and from related services, which consist of maintenance, hosting services, and consulting and education. Information relating to revenue from customers by revenue type is as follows (in thousands):
| Three Months Ended |  | Nine Months Ended
(In thousands) | August 31, 2017 |  | August 31, 2016 |  | August 31, 2017 |  | August 31, 2016
Software licenses | $ | 28,529 |  |  | $ | 33,624 |  |  | $ | 78,443 |  |  | $ | 86,366 |
Maintenance | 60,536 |  |  | 60,368 |  |  | 179,572 |  |  | 178,189 |
Professional services | 8,245 |  |  | 8,026 |  |  | 23,478 |  |  | 23,062 |
Total | $ | 97,310 |  |  | $ | 102,018 |  |  | $ | 281,493 |  |  | $ | 287,617 |
In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Europe, the Middle East and Africa (EMEA), Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands):
| Three Months Ended |  | Nine Months Ended
(In thousands) | August 31, 2017 |  | August 31, 2016 |  | August 31, 2017 |  | August 31, 2016
North America | $ | 55,703 |  |  | $ | 58,275 |  |  | $ | 157,438 |  |  | $ | 160,732 |
EMEA | 31,830 |  |  | 32,719 |  |  | 92,320 |  |  | 95,517 |
Latin America | 5,009 |  |  | 4,667 |  |  | 15,669 |  |  | 12,749 |
Asia Pacific | 4,768 |  |  | 6,357 |  |  | 16,066 |  |  | 18,619 |
Total | $ | 97,310 |  |  | $ | 102,018 |  |  | $ | 281,493 |  |  | $ | 287,617 |

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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 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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