Operating Segments | 9. Operating Segments We manage our business by geographic region and have three geographic reportable segments: North and Latin America (the “Americas”); Europe, the Middle East and Africa (EMEA); and Asia Pacific (APAC). All segments derive revenue from the sale and implementation of our supply chain commerce solutions. The individual products sold by the segments are similar in nature and are all designed to help companies manage the effectiveness and efficiency of their supply chain commerce. We use the same accounting policies for each reportable segment. The chief executive officer and chief financial officer evaluate performance based on revenue and operating results for each reportable segment. The Americas segment charges royalty fees to the other segments based on software licenses and cloud subscriptions sold by those reportable segments. The royalties, which totaled approximately $1.1 million and $0.6 million for the three months ended June 30, 2019 and 2018, respectively , In accordance with the segment reporting topic of the FASB Accounting Standards Codification, we present below certain financial information by reportable segment Three Months Ended June 30, 2019 2018 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 7,684 $ 1,124 $ 201 $ 9,009 $ 4,870 $ 402 $ 105 $ 5,377 Software license 8,152 2,877 692 11,721 8,652 2,814 1,507 12,973 Maintenance 29,304 5,633 2,386 37,323 29,137 5,614 2,242 36,993 Services 74,301 15,409 4,241 93,951 66,191 12,526 3,550 82,267 Hardware 2,337 - - 2,337 4,095 - 166 4,261 Total revenue 121,778 25,043 7,520 154,341 112,945 21,356 7,570 141,871 Costs and Expenses: Cost of revenue 55,512 12,543 3,523 71,578 44,416 11,161 3,504 59,081 Operating expenses 47,835 4,253 1,234 53,322 39,980 3,742 1,148 44,870 Depreciation and amortization 1,605 190 64 1,859 1,960 201 74 2,235 Total costs and expenses 104,952 16,986 4,821 126,759 86,356 15,104 4,726 106,186 Operating income $ 16,826 $ 8,057 $ 2,699 $ 27,582 $ 26,589 $ 6,252 $ 2,844 $ 35,685 Six Months Ended June 30, 2019 2018 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 14,604 $ 1,868 $ 396 $ 16,868 $ 8,973 $ 768 $ 105 $ 9,846 Software license 14,280 8,922 933 24,135 12,143 4,614 3,771 20,528 Maintenance 58,405 10,524 4,493 73,422 58,579 10,630 4,181 73,390 Services 143,624 30,017 8,941 182,582 130,379 24,508 6,137 161,024 Hardware 5,738 - - 5,738 7,486 - 166 7,652 Total revenue 236,651 51,331 14,763 302,745 217,560 40,520 14,360 272,440 Costs and Expenses: Cost of revenue 106,267 25,415 7,066 138,748 88,563 21,174 7,138 116,875 Operating expenses 92,235 9,752 2,379 104,366 78,173 7,231 2,209 87,613 Depreciation and amortization 3,272 373 128 3,773 3,917 388 132 4,437 Total costs and expenses 201,774 35,540 9,573 246,887 170,653 28,793 9,479 208,925 Operating income $ 34,877 $ 15,791 $ 5,190 $ 55,858 $ 46,907 $ 11,727 $ 4,881 $ 63,515 The majority of our software license revenue (80%) relates to our warehouse management product group. Cloud subscriptions revenue primarily relates to our Manhattan Active omnichannel and transportation management solutions. Total assets of our reportable segments increased during the three and six months ended June 30, 2019 primarily as a result of the adoption of ASC 842. At June 30, 2019, total assets for the Americas, EMEA and APAC segments were $300.7 million, $55.2 million and $16.3 million, respectively. |