Segment and Geographic 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 and marketing or general and administrative expense to our operating segments as these activities are managed on a consolidated basis. Additionally, 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
	As Reported ASC 606			ASC 605			As Reported ASC 605			As Reported ASC 606			ASC 605			As Reported ASC 605
	March 30, 2019			March 30, 2019			March 31, 2018			March 30, 2019			March 30, 2019			March 31, 2018
	(in thousands)
Software Products
Revenue	$	249,521		$	276,901		$	262,453		$	542,764		$	576,289		$	527,643
Operating Costs (1)	93,913			93,386			97,349			185,541			184,231			197,081
Profit	155,608			183,515			165,104			357,223			392,058			330,562

Professional Services
Revenue	40,930			38,598			45,430			82,376			77,967			86,884
Operating Costs (2)	32,326			30,916			35,946			64,189			61,406			70,763
Profit	8,604			7,682			9,484			18,187			16,561			16,121

Total segment revenue	290,451			315,499			307,883			625,140			654,256			614,527
Total segment costs	126,239			124,302			133,295			249,730			245,637			267,844
Total segment profit	164,212			191,197			174,588			375,410			408,619			346,683

Unallocated operating expenses:
Sales and marketing expenses	94,200			99,899			93,352			188,696			197,481			187,848
General and administrative expenses	25,856			25,856			27,398			51,627			51,627			54,846
Restructuring and other charges, net	26,980			26,980			114			45,473			45,473			219
Intangibles amortization	12,772			12,772			14,451			25,425			25,425			28,947
Stock-based compensation	26,967			26,967			17,026			56,374			56,374			35,357
Other unallocated operating expenses (income) (3)	295			295			37			629			629			(60		)
Total operating income	(22,858		)	(1,572		)	22,210			7,186			31,610			39,526

Interest expense	(11,383		)	(11,383		)	(10,379		)	(21,659		)	(21,659		)	(20,426		)
Other income (expense), net	821			1,065			(285		)	1,475			1,613			(1,083		)
Income before income taxes	$	(33,420	)	$	(11,890	)	$	11,546		$	(12,998	)	$	11,564		$	18,017

(1) Operating costs for the Software Products segment include all costs of software revenue and research and development costs, excluding stock-based compensation and intangible amortization.

(2) Operating costs for the Professional Services segment include 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 and other transactional costs, pension plan termination-related costs and fair value adjustments for deferred services costs.

We report revenue by the following two product groups:



	Three months ended						Six months ended
	As Reported ASC 606		ASC 605		As Reported ASC 605		As Reported ASC 606		ASC 605		As Reported ASC 605
	March 30, 2019		March 30, 2019		March 31, 2018		March 30, 2019		March 30, 2019		March 31, 2018
	(in thousands)
Solutions	$	251,171	$	272,936	$	274,994	$	550,413	$	571,098	$	552,663
IoT	39,280		42,563		32,889		74,727		83,158		61,864
Total revenue	$	290,451	$	315,499	$	307,883	$	625,140	$	654,256	$	614,527

Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.



	Three months ended						Six months ended
	As Reported ASC 606		ASC 605		As Reported ASC 605		As Reported ASC 606		ASC 605		As Reported ASC 605
	March 30, 2019		March 30, 2019		March 31, 2018		March 30, 2019		March 30, 2019		March 31, 2018
	(in thousands)
Revenue:
Americas	$	119,717	$	137,774	$	128,479	$	261,570	$	272,671	$	255,485
Europe	119,045		123,247		121,641		230,397		243,404		243,107
Asia-Pacific	51,689		54,478		57,763		133,173		138,181		115,935
Total revenue	$	290,451	$	315,499	$	307,883	$	625,140	$	654,256	$	614,527