Segment Information |
As of December 31, 2016, our reportable segments were the GMBU, the ECBU, and the IBU. Following is a description of each reportable segment: | | • | The GMBU is focused on marketing, sales, delivery and support to all emerging and mid-sized prospects and customers in North America; |
| | • | The ECBU is focused on marketing, sales, delivery and support to all large and/or strategic prospects and customers in North America; and |
| | • | The IBU is focused on marketing, sales, delivery and support to all prospects and customers outside of North America. |
Our chief operating decision maker is our chief executive officer ("CEO"). The CEO reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance. The CEO uses internal financial reports that provide segment revenues and operating income, excluding stock-based compensation expense, amortization expense, depreciation expense, research and development expense and certain corporate sales, marketing, general and administrative expenses. Currently, the CEO believes that the exclusion of these costs allows for a better understanding of the operating performance of the operating units and management of other operating expenses and cash needs. The CEO does not review any segment balance sheet information. Summarized reportable segment financial results, were as follows: | | | | | | | | | | | | Years ended December 31, | | (dollars in thousands) | 2016 |
| 2015 |
| 2014 |
| Revenue by segment: | | | | GMBU | $ | 383,319 |
| $ | 313,935 |
| $ | 270,637 |
| ECBU | 302,968 |
| 279,897 |
| 245,119 |
| IBU | 42,539 |
| 41,997 |
| 47,068 |
| Other(1) | 1,989 |
| 2,111 |
| 1,597 |
| Total revenue | $ | 730,815 |
| $ | 637,940 |
| $ | 564,421 |
| Segment operating income(2): | | | | GMBU | $ | 185,539 |
| $ | 156,876 |
| $ | 139,310 |
| ECBU | 154,415 |
| 137,162 |
| 121,285 |
| IBU | 4,014 |
| 5,404 |
| 4,291 |
| Other(1) | (106 | ) | (120 | ) | 1,585 |
| | 343,862 |
| 299,322 |
| 266,471 |
| Less: | | | | Corporate unallocated costs(3) | (207,026 | ) | (195,146 | ) | (176,614 | ) | Stock-based compensation costs | (32,638 | ) | (25,246 | ) | (17,345 | ) | Amortization expense | (42,398 | ) | (32,218 | ) | (26,148 | ) | Interest expense | (10,583 | ) | (8,073 | ) | (6,011 | ) | Other expense, net | (291 | ) | (1,687 | ) | (1,119 | ) | Income before provision for income taxes | $ | 50,926 |
| $ | 36,952 |
| $ | 39,234 |
|
| | (1) | Other includes revenue and the related costs from the sale of solutions and services not directly attributable to a reportable segment. |
| | (2) | Segment operating income includes direct, controllable costs related to the sale of solutions and services by the reportable segment. |
| | (3) | Corporate unallocated costs include research and development, depreciation expense, and certain corporate sales, marketing, general and administrative expenses. |
Revenue by solution and service group for each of our reportable segments was as follows: | | | | | | | | | | | | Years ended December 31, | | (dollars in thousands) | 2016 |
| 2015 |
| 2014 |
| GMBU revenue: | | | | Subscriptions | $ | 238,177 |
| $ | 167,010 |
| $ | 125,223 |
| Maintenance | 77,068 |
| 83,974 |
| 86,840 |
| Services | 62,884 |
| 56,294 |
| 48,814 |
| License fees and other | 5,190 |
| 6,657 |
| 9,760 |
| Total GMBU revenue | $ | 383,319 |
| $ | 313,935 |
| $ | 270,637 |
| ECBU revenue: | | | | Subscriptions | $ | 171,279 |
| $ | 147,719 |
| $ | 121,484 |
| Maintenance | 57,290 |
| 56,196 |
| 45,069 |
| Services | 67,875 |
| 66,741 |
| 67,756 |
| License fees and other | 6,524 |
| 9,241 |
| 10,810 |
| Total ECBU revenue | $ | 302,968 |
| $ | 279,897 |
| $ | 245,119 |
| IBU revenue: | | | | Subscriptions | $ | 19,363 |
| $ | 16,885 |
| $ | 16,703 |
| Maintenance | 12,588 |
| 13,631 |
| 15,509 |
| Services | 8,931 |
| 9,943 |
| 11,801 |
| License fees and other | 1,657 |
| 1,538 |
| 3,055 |
| Total IBU revenue | $ | 42,539 |
| $ | 41,997 |
| $ | 47,068 |
| Other revenue: | | | | Subscriptions | $ | 168 |
| $ | 145 |
| $ | 25 |
| Maintenance | — |
| — |
| — |
| Services | — |
| — |
| — |
| License fees and other | 1,821 |
| 1,966 |
| 1,572 |
| Total Other revenue | $ | 1,989 |
| $ | 2,111 |
| $ | 1,597 |
| Total consolidated revenue | $ | 730,815 |
| $ | 637,940 |
| $ | 564,421 |
|
We generate a portion of our revenue from foreign operations. The following table presents revenue by geographic region based on country of invoice origin and identifiable, long-lived assets by geographic region based on the location of the assets. | | | | | | | | | | | (dollars in thousands) | United States |
| Total Foreign |
| Total |
| Revenue from external customers: | | | | 2016 | $ | 660,339 |
| $ | 70,476 |
| $ | 730,815 |
| 2015 | 570,519 |
| 67,421 |
| 637,940 |
| 2014 | 491,731 |
| 72,690 |
| 564,421 |
| Property and equipment: | | | | December 31, 2016 | $ | 47,663 |
| $ | 2,606 |
| $ | 50,269 |
| December 31, 2015 | 49,682 |
| 2,969 |
| 52,651 |
|
It is impracticable for us to identify our total assets by segment.
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