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 March 31, 2019
Segment revenue	$	140,371		$	7,613		$	147,984
Segment expenses (1)	(54,550		)	(7,740		)	(62,290		)
Segment profit	$	85,821		$	(127	)	$	85,694

Three Months Ended March 31, 2018, As Adjusted
Segment revenue	$	119,970		$	7,788		$	127,758
Segment expenses (1)	(52,368		)	(7,238		)	(59,606		)
Segment profit	$	67,602		$	550		$	68,152

Nine Months Ended March 31, 2019
Segment revenue	$	381,571		$	21,005		$	402,576
Segment expenses (1)	(161,808		)	(22,943		)	(184,751		)
Segment profit	$	219,763		$	(1,938	)	$	217,825

Nine Months Ended March 31, 2018, As Adjusted
Segment revenue	$	336,828		$	22,947		$	359,775
Segment expenses (1)	(150,357		)	(20,793		)	(171,150		)
Segment profit	$	186,471		$	2,154		$	188,625

(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 expense; 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 nine months ended March 31, 2019 and 2018:



	Three Months Ended March 31,						Nine Months Ended March 31,
	2019			2018			2019			2018
				As Adjusted						As Adjusted
	(Dollars in Thousands)

Total segment profit for reportable segments	$	85,694		$	68,152		$	217,825		$	188,625
General and administrative expense	(14,863		)	(14,533		)	(46,246		)	(49,188		)
Interest income, net	4,485			4,819			15,061			14,897
Other (expense), net	(34		)	(104		)	(485		)	(958		)
Income before income taxes	$	75,282		$	58,334		$	186,155		$	153,376