Segment Information

Effective the beginning of fiscal 2018, we changed our segments, see Note 1. Basis of Presentation for additional 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 two operating and reportable segments: (1) Software Products, which includes license, subscription and related support revenue (including updates and technical support) for all our products; and (2) Professional Services, which includes consulting, implementation and training services. We do not allocate sales & marketing or general and administrative expense to our operating segments as these activities are managed on a consolidated basis. 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
	December 30, 2017			December 31, 2016
	(in thousands)
Software Products
Revenue	$	265,190		$	240,219
Operating Costs (1)	99,689			90,039
Profit	165,501			150,180

Professional Services
Revenue	41,454			46,108
Operating Costs (2)	34,780			37,824
Profit	6,674			8,284

Total segment revenue	306,644			286,327
Total segment costs	134,469			127,863
Total segment profit	172,175			158,464

Unallocated operating expenses:
Sales and marketing expenses	94,436			87,069
General and administrative expenses	27,432			28,050
Restructuring charges, net	105			6,285
Intangibles amortization	14,496			14,455
Stock-based compensation	18,331			17,988
Other unallocated operating expenses (3)	(97		)	56
Total operating income	17,472			4,561

Interest expense	(10,047		)	(10,315		)
Interest income and other expense, net	(954		)	(749		)
Income (loss) before income taxes	$	6,471		$	(6,503	)
(1) Operating costs for the Software Products segment includes all cost of software revenue and research and development costs, excluding stock-based compensation and intangible amortization.
(2) Operating costs for the Professional Services segment includes all cost of professional services revenue, excluding stock-based compensation, intangible amortization, and fair value adjustments for deferred services costs.
(3) Other unallocated operating expenses include acquisition-related costs and fair value adjustments for deferred services costs.