Segment and Geographic Information

3 Months Ended

Dec. 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. 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, 2021			December 31, 2020
Software Products
Revenue	$	413,593		$	393,420
Operating costs(1)		116,028			105,401
Profit		297,565			288,019
Professional Services
Revenue		44,128			35,630
Operating costs(2)		36,983			33,120
Profit		7,145			2,510
Total segment revenue		457,721			429,050
Total segment costs		153,011			138,521
Total segment profit		304,710			290,529
Unallocated operating expenses:
Sales and marketing expenses		112,395			109,726
General and administrative expenses		34,177			27,400
Restructuring and other charges, net		33,991			247
Intangibles amortization		14,977			12,814
Stock-based compensation		45,942			46,088
Other unallocated operating expenses(3)		1,050			3,916
Total operating income		62,178			90,338
Interest and debt premium expense		(12,986	)		(11,518	)
Other income (expense), net		6,184			(1,413	)
Income before income taxes	$	55,376		$	77,407

(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, 2021		December 31, 2020
Americas	$	212,881	$	202,279
Europe		162,308		162,319
Asia Pacific		82,532		64,452
Total revenue	$	457,721	$	429,050