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Business Segments and International Operations | 9 Months Ended
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Aug. 31, 2020
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. We operate as three distinct business segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. 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 margin from our reportable segments and reconciles to our consolidated income from continuing operations before income taxes:
| Three Months Ended |  |  |  | Nine Months Ended |  |
(In thousands) | August 31, 2020 |  | August 31, 2019 |  | August 31, 2020 |  | August 31, 2019
Segment revenue: |  |  |  |  |  |  |
OpenEdge | $ | 85,794 |  |  | $ | 78,607 |  |  | $ | 240,608 |  |  | $ | 211,679 |
Data Connectivity and Integration | 4,468 |  |  | 8,754 |  |  | 21,815 |  |  | 27,686 |
Application Development and Deployment | 19,437 |  |  | 19,355 |  |  | 57,342 |  |  | 56,895 |
Total revenue | 109,699 |  |  | 106,716 |  |  | 319,765 |  |  | 296,260 |
Segment costs of revenue and operating expenses: |  |  |  |  |  |  |
OpenEdge | 18,358 |  |  | 22,711 |  |  | 55,984 |  |  | 60,123 |
Data Connectivity and Integration | 1,931 |  |  | 1,943 |  |  | 6,240 |  |  | 5,249 |
Application Development and Deployment | 7,298 |  |  | 6,093 |  |  | 21,572 |  |  | 17,067 |
Total costs of revenue and operating expenses | 27,587 |  |  | 30,747 |  |  | 83,796 |  |  | 82,439 |
Segment contribution margin: |  |  |  |  |  |  |
OpenEdge | 67,436 |  |  | 55,896 |  |  | 184,624 |  |  | 151,556 |
Data Connectivity and Integration | 2,537 |  |  | 6,811 |  |  | 15,575 |  |  | 22,437 |
Application Development and Deployment | 12,139 |  |  | 13,262 |  |  | 35,770 |  |  | 39,828 |
Total contribution margin | 82,112 |  |  | 75,969 |  |  | 235,969 |  |  | 213,821 |
Other unallocated expenses(1) | 48,919 |  |  | 60,009 |  |  | 146,755 |  |  | 167,711 |
Income from operations | 33,193 |  |  | 15,960 |  |  | 89,214 |  |  | 46,110 |
Other expense, net | (2,962) |  |  | (3,718) |  |  | (9,206) |  |  | (8,038) |
Income before income taxes | $ | 30,231 |  |  | $ | 12,242 |  |  | $ | 80,008 |  |  | $ | 38,072 |
(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: certain product development and corporate sales and marketing expenses, customer support, 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 external customers by revenue type is as follows (in thousands):
| Three Months Ended |  |  |  | Nine Months Ended |  |
(In thousands) | August 31, 2020 |  | August 31, 2019 |  | August 31, 2020 |  | August 31, 2019
Performance obligations transferred at a point in time: |  |  |  |  |  |  |
Software licenses | $ | 27,514 |  |  | $ | 30,686 |  |  | $ | 77,806 |  |  | $ | 83,216 |
Performance obligations transferred over time: |  |  |  |  |  |  |
Maintenance | 72,764 |  |  | 67,611 |  |  | 214,506 |  |  | 190,138 |
Services | 9,421 |  |  | 8,419 |  |  | 27,453 |  |  | 22,906 |
Total revenue | $ | 109,699 |  |  | $ | 106,716 |  |  | $ | 319,765 |  |  | $ | 296,260 |
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 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, 2020 |  | August 31, 2019 |  | August 31, 2020 |  | August 31, 2019
North America | $ | 62,927 |  |  | $ | 60,208 |  |  | $ | 184,904 |  |  | $ | 163,766 |
EMEA | 37,447 |  |  | 35,109 |  |  | 106,592 |  |  | 102,114 |
Latin America | 3,547 |  |  | 5,470 |  |  | 10,893 |  |  | 14,039 |
Asia Pacific | 5,778 |  |  | 5,929 |  |  | 17,376 |  |  | 16,341 |
Total revenue | $ | 109,699 |  |  | $ | 106,716 |  |  | $ | 319,765 |  |  | $ | 296,260 |
No single customer, partner, or country outside of the U.S. has accounted for more than 10% of our total revenue for the three or nine months ended August 31, 2020 and August 31, 2019. As of August 31, 2020 and November 30, 2019, no individual customer accounted for 10% or more of our net accounts receivable balance. As of August 31, 2020 and November 30, 2019, no individual foreign country accounted for 10% or more of total consolidated assets.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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