Segment Information

6 Months Ended

Apr. 01, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate within a single industry segment -- computer software and related services. Operating segments as defined under GAAP are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our President and Chief Executive Officer. We have three operating and reportable segments: (1) the Solutions Group, which includes license, subscription, support and cloud services revenue for our core CAD, SLM and PLM products; (2) the IoT Group, which includes license, subscription, support and cloud services revenue for our IoT, analytics and augmented reality solutions, and (3) Professional Services, which includes consulting, implementation and training revenue. Our reported segment profit includes revenue from third party sales of our products and services, less direct controllable segment costs. Direct costs of the segments include certain costs of revenue, research and development and certain marketing costs. Costs excluded from segment margin include cost of revenue, selling expenses, corporate marketing and general and administrative costs that are incurred in support of all of our segments and are not specifically allocated to our segments for management reporting. Additionally, the segment profit does not include stock-based compensation, amortization of intangible assets, restructuring charges and certain other identified costs that we do not allocate to the segments for purposes of evaluating their operational performance.

The revenue and profit attributable to our operating segments are summarized below. We do not produce asset information by reportable segment; therefore, it is not reported.

	Three months ended						Six months ended
	April 1, 2017			April 2, 2016			April 1, 2017			April 2, 2016
	(in thousands)
Solutions Group
Revenue	$	213,148		$	206,718		$	431,884		$	435,312
Direct costs	45,258			45,839			91,190			95,583
Profit	167,890			160,879			340,694			339,729
IoT Group
Revenue	21,722			17,255			43,205			30,356
Direct costs	23,147			22,786			46,597			39,223
Loss	(1,425		)	(5,531		)	(3,392		)	(8,867		)
Professional Services
Revenue	45,170			48,654			91,278			97,976
Direct costs	37,269			40,424			75,093			82,439
Profit	7,901			8,230			16,185			15,537
Total segment revenue	280,040			272,627			566,367			563,644
Total segment costs	105,674			109,049			212,880			217,245
Total segment profit	174,366			163,578			353,487			346,399
Other unallocated operating expenses	166,389			157,241			334,664			316,208
Restructuring charges	464			4,579			6,749			41,726
Total operating income (loss)	7,513			1,758			12,074			(11,535		)
Interest expense	(11,725		)	(4,760		)	(22,040		)	(11,347		)
Interest income and other expense, net	3,156			(567		)	2,407			(233		)
Loss before income taxes	$	(1,056	)	$	(3,569	)	$	(7,559	)	$	(23,115	)