Segment and Geographic Information

3 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

11. 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.

(in thousands)	Three months ended
	December 31, 2020			December 28, 2019
Software Products
Revenue	$	393,420		$	314,366
Operating costs(1)		105,401			102,192
Profit		288,019			212,174
Professional Services
Revenue		35,630			41,744
Operating costs(2)		33,120			33,747
Profit		2,510			7,997
Total segment revenue		429,050			356,110
Total segment costs		138,521			135,939
Total segment profit		290,529			220,171
Unallocated operating expenses:
Sales and marketing expenses		109,726			100,152
General and administrative expenses		27,400			26,919
Restructuring and other charges, net		247			14,034
Intangibles amortization		12,814			13,576
Stock-based compensation		46,088			27,936
Other unallocated operating expenses(3)		3,916			7,129
Total operating income		90,338			30,425
Interest expense		(11,518	)		(12,098	)
Other income (expense), net		(1,413	)		704
Income before income taxes	$	77,407		$	19,031

(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 costs of professional services revenue, excluding stock-based compensation.

(3) Other unallocated operating expenses include acquisition-related and other transactional costs.

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

(in thousands)	Three months ended
	December 31, 2020		December 28, 2019
Americas	$	202,279	$	155,973
Europe		162,319		136,521
Asia Pacific		64,452		63,616
Total revenue	$	429,050	$	356,110