SEGMENTS

We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.

Our CEO, the chief operating decision maker, reviews revenue and gross margin information for each of our reportable segments. Operating expenses are not reviewed on a segment by segment basis. In addition, with the exception of goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments.

Effective in the first quarter of fiscal 2012, we modified our segments due to changes in how we operate our business. We combined our Creative and Interactive Solutions segment with our Digital Media Solutions segment and our Knowledge Worker segment, and named it Digital Media. We also renamed our Omniture segment to Digital Marketing and combined it with our Enterprise segment. These changes reflect our focus on our two strategic growth opportunities. Our Print and Publishing segment, which contains many of our mature products and solutions continues to be reported as it was in fiscal 2011. Prior year information in the table below has been reclassified to reflect these changes.

We have the following reportable segments:

•

Digital Media—Our Digital Media segment provides tools and solutions that enable individuals, small businesses and enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include traditional content creators, web application developers and digital media professionals, as well as their management in marketing departments and agencies, companies and publishers.


•	Digital Marketing—Our Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Our customers include digital marketers, advertisers, publishers, merchandisers, web analysts, chief marketing officers and chief revenue officers.


•	Print and Publishing—Our Print and Publishing segment addresses market opportunities ranging from the diverse publishing needs of technical and business publishing to our legacy type and OEM printing businesses.



(in thousands)	Digital Media			Digital Marketing			Print and Publishing			Total
Three months ended March 2, 2012
Revenue	$	730,294		$	259,896		$	55,030		$	1,045,220
Cost of revenue	26,973			78,276			3,016			108,265
Gross profit	$	703,321		$	181,620		$	52,014		$	936,955
Gross profit as a percentage of revenue	96		%	70		%	95		%	90		%
Three months ended March 4, 2011
Revenue	$	761,110		$	212,900		$	53,696		$	1,027,706
Cost of revenue	30,648			74,329			2,662			107,639
Gross profit	$	730,462		$	138,571		$	51,034		$	920,067
Gross profit as a percentage of revenue	96		%	65		%	95		%	90		%