Segment and Geographic Information

6 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment and Geographic Information

11. Segment and Geographic Information

We operate within a single industry segment – computer software and related services. We have two operating and reportable segments: (1) Software Products, which includes license, subscription, SaaS, 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						Six months ended
	March 31, 2021			March 28, 2020			March 31, 2021			March 28, 2020
Software Products
Revenue	$	421,767		$	324,080		$	815,188		$	638,446
Operating costs(1)		109,310			94,912			214,711			197,104
Profit		312,457			229,168			600,477			441,342
Professional Services
Revenue		40,018			35,523			75,648			77,267
Operating costs(2)		33,139			33,425			66,259			67,172
Profit		6,879			2,098			9,389			10,095
Total segment revenue		461,785			359,603			890,836			715,713
Total segment costs		142,449			128,337			280,970			264,276
Total segment profit		319,336			231,266			609,866			451,437
Unallocated operating expenses:
Sales and marketing expenses		115,873			100,292			225,599			200,444
General and administrative expenses		31,487			27,795			58,887			54,714
Restructuring and other charges, net		469			18,242			716			32,276
Intangibles amortization		14,767			14,167			27,581			27,743
Stock-based compensation		44,740			20,484			90,828			48,420
Other unallocated operating expenses(3)		10,310			261			14,226			7,390
Total operating income		101,690			50,025			192,029			80,450
Interest and debt premium expense		(12,925	)		(32,618	)		(24,444	)		(44,716	)
Other expense, net		(2,408	)		(1,629	)		(3,821	)		(925	)
Income before income taxes	$	86,357		$	15,778		$	163,764		$	34,809

(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				Six months ended
	March 31, 2021		March 28, 2020		March 31, 2021		March 28, 2020
Americas	$	180,329	$	153,993	$	382,609	$	309,967
Europe		202,477		146,422		364,796		282,943
Asia Pacific		78,979		59,188		143,431		122,803
Total revenue	$	461,785	$	359,603	$	890,836	$	715,713