Segment Information

Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. Our chief operating decision maker is our President and Chief Executive Officer.

The subscription and software segment is engaged in the licensing of process optimization and asset performance management software solutions and associated support services, and includes our license and maintenance revenue. The services and other segment includes professional services and training, and includes our services and other revenue. We do not track assets or capital expenditures by operating segments. Consequently, it is not practical to present assets, capital expenditures, depreciation or amortization by operating segments.

The following table presents a summary of our reportable segments’ profits:



	Subscription and Software			Services and Other			Total
	(Dollars in Thousands)
Three Months Ended December 31, 2018
Segment revenue	$	134,406		$	6,017		$	140,423
Segment expenses (1)	(53,732		)	(7,634		)	(61,366		)
Segment profit	$	80,674		$	(1,617	)	$	79,057
Three Months Ended December 31, 2017, As Adjusted
Segment revenue	$	97,704		$	7,826		$	105,530
Segment expenses (1)	(49,201		)	(6,606		)	(55,807		)
Segment profit	$	48,503		$	1,220		$	49,723

Six Months Ended December 31, 2018
Segment revenue	$	241,200		$	13,392		$	254,592
Segment expenses (1)	(107,258		)	(15,203		)	(122,461		)
Segment profit	$	133,942		$	(1,811	)	$	132,131

Six Months Ended December 31, 2017, As Adjusted
Segment revenue	$	216,858		$	15,159		$	232,017
Segment expenses (1)	(97,989		)	(13,555		)	(111,544		)
Segment profit	$	118,869		$	1,604		$	120,473

(1) Our reportable segments’ operating expenses include expenses directly attributable to the segments. Segment expenses include selling and marketing and research and development expenses. Segment expenses do not include allocations of general and administrative; interest income, net; and other (expense), net.

Reconciliation to Income before Income Taxes

The following table presents a reconciliation of total segment profit to income before income taxes for the three and six months ended December 31, 2018 and 2017:



	Three Months Ended December 31,						Six Months Ended December 31,
	2018			2017			2018			2017
				As Adjusted						As Adjusted
	(Dollars in Thousands)

Total segment profit for reportable segments	$	79,057		$	49,723		$	132,131		$	120,473
General and administrative expense	(15,299		)	(19,618		)	(31,383		)	(34,655		)
Interest income, net	5,321			4,978			10,576			10,078
Other (expense), net	(578		)	(238		)	(451		)	(854		)
Income before income taxes	$	68,501		$	34,845		$	110,873		$	95,042