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						Nine months ended
	June 30, 2021			June 27, 2020			June 30, 2021			June 27, 2020
Software Products
Revenue	$	394,434		$	317,394		$	1,209,622		$	955,840
Operating costs(1)		116,617			95,198			331,328			292,302
Profit		277,817			222,196			878,294			663,538
Professional Services
Revenue		41,234			34,327			116,882			111,594
Operating costs(2)		34,726			29,850			100,985			97,022
Profit		6,508			4,477			15,897			14,572
Total segment revenue		435,668			351,721			1,326,504			1,067,434
Total segment costs		151,343			125,048			432,313			389,324
Total segment profit		284,325			226,673			894,191			678,110
Unallocated operating expenses:
Sales and marketing expenses		120,183			95,187			345,782			295,631
General and administrative expenses		31,235			28,005			90,122			82,719
Restructuring and other charges, net		(132	)		62			584			32,338
Intangibles amortization		15,771			14,159			43,352			41,902
Stock-based compensation		43,068			25,185			133,896			73,605
Other unallocated operating expenses(3)		618			674			14,844			8,064
Total operating income		73,582			63,401			265,611			143,851
Interest and debt premium expense		(13,178	)		(19,660	)		(37,622	)		(64,376	)
Other income (expense), net		(1,935	)		775			(5,756	)		(150	)
Income before income taxes	$	58,469		$	44,516		$	222,233		$	79,325

(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				Nine months ended
	June 30, 2021		June 27, 2020		June 30, 2021		June 27, 2020
Americas	$	180,154	$	156,221	$	562,763	$	466,188
Europe		159,558		121,317		524,354		404,260
Asia Pacific		95,956		74,183		239,387		196,986
Total revenue	$	435,668	$	351,721	$	1,326,504	$	1,067,434