Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Nov. 24, 2014 | Mar. 29, 2014 | |
Entity Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Entity Registrant Name | 'PTC Inc. | ' | ' |
Entity Central Index Key | '0000857005 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $4,086,107,841 |
Entity Common Stock, Shares Outstanding | ' | 115,995,195 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $293,654 | $241,913 |
Accounts receivable, net of allowance for doubtful accounts of $1,622 and $3,030 at September 30, 2014 and 2013, respectively | 235,688 | 229,106 |
Prepaid expenses | 37,667 | 45,674 |
Other current assets | 133,859 | 123,878 |
Deferred tax assets | 31,299 | 39,645 |
Total current assets | 732,167 | 680,216 |
Property and equipment, net | 67,783 | 64,652 |
Goodwill | 1,012,527 | 769,095 |
Acquired intangible assets, net | 336,873 | 273,121 |
Deferred tax assets | 8,958 | 7,696 |
Other assets | 41,646 | 34,126 |
Total assets | 2,199,954 | 1,828,906 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts Payable, Current | 19,802 | 16,205 |
Accrued expenses and other current liabilities | 57,536 | 49,801 |
Accrued compensation and benefits | 144,875 | 112,733 |
Accrued income taxes | 9,329 | 7,074 |
Deferred tax liabilities | 854 | 853 |
Current portion of long term debt | 25,000 | 15,000 |
Deferred revenue | 369,271 | 326,947 |
Total current liabilities | 626,667 | 528,613 |
Long term debt, net of current portion | 586,875 | 243,125 |
Deferred tax liabilities | 36,601 | 42,088 |
Deferred revenue | 13,273 | 9,966 |
Other liabilities | 82,649 | 78,634 |
Total liabilities | 1,346,065 | 902,426 |
Commitments and contingencies (Note I) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 500,000 shares authorized; 115,025 and 118,446 shares issued and outstanding at September 30, 2014 and 2013, respectively | 1,150 | 1,185 |
Additional paid-in capital | 1,597,277 | 1,786,820 |
Accumulated deficit | -650,171 | -810,365 |
Accumulated other comprehensive loss | -94,367 | -51,160 |
Total stockholders' equity | 853,889 | 926,480 |
Total liabilities and stockholders' equity | $2,199,954 | $1,828,906 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Allowance for doubtful accounts | $1,622 | $3,030 |
Stockholders' equity: | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 500,000 | 500,000 |
Common stock, shares issued | 115,025 | 118,446 |
Common stock, shares outstanding | 115,025 | 118,446 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ' | ' | ' |
License | $369,691 | $344,209 | $348,394 |
Service | 295,009 | 294,653 | 295,342 |
Support | 692,267 | 654,679 | 611,943 |
Total revenue | 1,356,967 | 1,293,541 | 1,255,679 |
Cost of revenue: | ' | ' | ' |
Cost of license revenue | 31,663 | 33,004 | 30,595 |
Cost of service revenue | 256,876 | 258,954 | 265,483 |
Cost of support revenue | 85,144 | 81,081 | 76,050 |
Total cost of revenue | 373,683 | 373,039 | 372,128 |
Gross margin | 983,284 | 920,502 | 883,551 |
Sales and marketing | 357,447 | 360,640 | 377,796 |
Research and development | 226,496 | 221,918 | 214,960 |
General and administrative | 142,232 | 131,937 | 117,468 |
Amortization of acquired intangible assets | 32,127 | 26,486 | 20,303 |
Restructuring charges | 28,406 | 52,197 | 24,928 |
Total operating expenses | 786,708 | 793,178 | 755,455 |
Operating income | 196,576 | 127,324 | 128,096 |
Foreign currency losses, net | -4,469 | -2,027 | -5,862 |
Interest income | 3,117 | 2,862 | 2,920 |
Interest expense | -8,155 | -6,976 | -4,746 |
Other income (expense), net | -957 | 5,051 | 328 |
Income before income taxes | 186,112 | 126,234 | 120,736 |
Provision (benefit) for income taxes | 25,918 | -17,535 | 156,134 |
Net income (loss) | $160,194 | $143,769 | ($35,398) |
Earnings (loss) per sharebBasic (in USD per share) | $1.36 | $1.20 | ($0.30) |
Earnings (loss) per sharebDiluted (in USD per share) | $1.34 | $1.19 | ($0.30) |
Weighted average shares outstandingbBasic (in shares) | 118,094 | 119,473 | 118,705 |
Weighted average shares outstandingbDiluted (in shares) | 119,984 | 121,240 | 118,705 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $160,194 | $143,769 | ($35,398) |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Foreign currency translation adjustment, net of tax of $0 for all periods | -24,069 | 7,165 | -2,176 |
Amortization of net actuarial pension loss included in net income, net of tax of $0.3 million, $1.6 million and $1.3 million in 2014, 2013 and 2012, respectively | 3,048 | 2,772 | 2,046 |
Pension net gain (loss) arising during the period net of tax of $2.8 million, ($6.3 million) and $5.9 million in 2014, 2013 and 2012, respectively | -22,186 | 11,404 | -7,607 |
Other comprehensive income (loss) | -43,207 | 21,341 | -7,737 |
Comprehensive income (loss) | $116,987 | $165,110 | ($43,135) |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive (Loss) Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign currency translation adjustment, tax | $0 | $0 | $0 |
Tax provision (benefit) related to pension net gain(loss) occurring during the year | 2.8 | -6.3 | 5.9 |
Tax benefit related to amortization of net actuarial loss | ($0.30) | ($1.60) | ($1.30) |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $160,194 | $143,769 | ($35,398) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Stock-based compensation | 50,889 | 48,787 | 51,305 |
Depreciation and amortization | 77,307 | 76,551 | 66,471 |
(Benefit from) provision for deferred income taxes | -19,946 | -39,714 | 104,766 |
Excess tax benefits realized from stock-based awards | -10,428 | -334 | -1,324 |
Other non-cash costs, net | -760 | 339 | 290 |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | ' | ' | ' |
Accounts receivable | 7,554 | 17,308 | 32,309 |
Accounts payable and accrued expenses | -436 | -4,828 | -8,556 |
Accrued compensation and benefits | 8,974 | 11,036 | 983 |
Deferred revenue | 24,998 | 6,727 | 14,362 |
Accrued income taxes, net of income tax receivable | 19,134 | -15,211 | -4,005 |
Other current assets and prepaid expenses | 4,417 | -9,113 | 8,332 |
Other noncurrent assets | -17,345 | -10,634 | -11,560 |
Net cash provided by operating activities | 304,552 | 224,683 | 217,975 |
Cash flows from investing activities: | ' | ' | ' |
Additions to property and equipment | -25,275 | -29,328 | -31,413 |
Acquisitions of businesses, net of cash acquired | -323,525 | -245,843 | -220 |
Other | 0 | 721 | 0 |
Net cash used by investing activities | -348,800 | -274,450 | -31,633 |
Cash flows from financing activities: | ' | ' | ' |
Borrowings under revolving credit facility | 1,386,250 | 0 | 230,000 |
Repayments of borrowings under revolving credit facility | -1,032,500 | -111,875 | -60,000 |
Repurchases of common stock | -224,915 | -74,871 | -34,953 |
Proceeds from issuance of common stock | 877 | 4,884 | 21,210 |
Excess tax benefits realized from stock-based awards | 10,428 | 334 | 1,324 |
Payments of withholding taxes in connection with vesting of stock-based awards | -26,857 | -14,996 | -20,967 |
Credit facility origination costs | -7,930 | 0 | -1,951 |
Net cash provided (used) by financing activities | 105,353 | -196,524 | 134,663 |
Effect of exchange rate changes on cash and cash equivalents | -9,364 | -1,339 | 660 |
Net increase (decrease) in cash and cash equivalents | 51,741 | -247,630 | 321,665 |
Cash and cash equivalents, beginning of year | 241,913 | 489,543 | 167,878 |
Cash and cash equivalents, end of year | $293,654 | $241,913 | $489,543 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
In Thousands, unless otherwise specified | |||||
Balance, value at Sep. 30, 2011 | $822,690 | $1,169 | $1,805,021 | ($918,736) | ($64,764) |
Balance, shares at Sep. 30, 2011 | ' | 116,937 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Common stock issued for employee stock-based awards, shares | ' | 5,077 | ' | ' | ' |
Common stock issued for employee stock-based awards, value | 21,210 | 51 | 21,159 | ' | ' |
Shares surrendered by employees to pay taxes related to stock-based awards, shares | ' | -908 | ' | ' | ' |
Shares surrendered by employees to pay taxes related to stock-based awards, value | -20,967 | -9 | -20,958 | ' | ' |
Compensation expense from stock-based awards | 51,305 | ' | 51,305 | ' | ' |
Excess tax benefits (tax shortfalls) from stock-based awards | 1,109 | ' | 1,109 | ' | ' |
Net income (loss) | -35,398 | ' | ' | -35,398 | ' |
Repurchases of common stock, shares | -1,553 | -1,553 | ' | ' | ' |
Repurchases of common stock, value | -34,953 | -15 | -34,938 | ' | ' |
Foreign currency translation adjustment | -2,176 | ' | ' | ' | -2,176 |
Change in pension benefits, net of tax | -5,561 | ' | ' | ' | -5,561 |
Balance, value at Sep. 30, 2012 | 797,259 | 1,196 | 1,822,698 | -954,134 | -72,501 |
Balance, shares at Sep. 30, 2012 | ' | 119,553 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Common stock issued for employee stock-based awards, shares | ' | 2,655 | ' | ' | ' |
Common stock issued for employee stock-based awards, value | 4,884 | 27 | 4,857 | ' | ' |
Shares surrendered by employees to pay taxes related to stock-based awards, shares | ' | -709 | ' | ' | ' |
Shares surrendered by employees to pay taxes related to stock-based awards, value | -14,996 | -7 | -14,989 | ' | ' |
Compensation expense from stock-based awards | 48,787 | ' | 48,787 | ' | ' |
Excess tax benefits (tax shortfalls) from stock-based awards | 307 | ' | 307 | ' | ' |
Net income (loss) | 143,769 | ' | ' | 143,769 | ' |
Repurchases of common stock, shares | -3,053 | -3,053 | ' | ' | ' |
Repurchases of common stock, value | -74,871 | -31 | -74,840 | ' | ' |
Foreign currency translation adjustment | 7,165 | ' | ' | ' | 7,165 |
Change in pension benefits, net of tax | 14,176 | ' | ' | ' | 14,176 |
Balance, value at Sep. 30, 2013 | 926,480 | 1,185 | 1,786,820 | -810,365 | -51,160 |
Balance, shares at Sep. 30, 2013 | 118,446 | 118,446 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Common stock issued for employee stock-based awards, shares | ' | 2,455 | ' | ' | ' |
Common stock issued for employee stock-based awards, value | 877 | 24 | 853 | ' | ' |
Shares surrendered by employees to pay taxes related to stock-based awards, shares | ' | -808 | ' | ' | ' |
Shares surrendered by employees to pay taxes related to stock-based awards, value | -26,857 | -8 | -26,849 | ' | ' |
Compensation expense from stock-based awards | 50,889 | ' | 50,889 | ' | ' |
Excess tax benefits (tax shortfalls) from stock-based awards | 10,428 | ' | 10,428 | ' | ' |
Net income (loss) | 160,194 | ' | ' | 160,194 | ' |
Repurchases of common stock, shares | -5,068 | -5,068 | ' | ' | ' |
Repurchases of common stock, value | -224,915 | -51 | -187,364 | ' | ' |
Common stock repurchase holdback | -187,415 | ' | -37,500 | ' | ' |
Value of stock repurchases held by bank under accelerated share repurchase program | 37,500 | ' | ' | ' | ' |
Foreign currency translation adjustment | -24,069 | ' | ' | ' | -24,069 |
Change in pension benefits, net of tax | -19,138 | ' | ' | ' | -19,138 |
Balance, value at Sep. 30, 2014 | $853,889 | $1,150 | $1,597,277 | ($650,171) | ($94,367) |
Balance, shares at Sep. 30, 2014 | 115,025 | 115,025 | ' | ' | ' |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 12 Months Ended |
Sep. 30, 2014 | |
Description Of Business And Basis Of Presentation [Abstract] | ' |
Description of Business and Basis Of Presentation | ' |
Description of Business and Basis of Presentation | |
Business | |
PTC Inc. was incorporated in 1985 and is headquartered in Needham, Massachusetts. PTC Inc. develops and delivers technology solutions, comprised of software and services, that transform the way our customers create, operate and service their products for a smart, connected world. Our solutions help our customers in discrete manufacturing organizations optimize the activities within individual business functions, including engineering, software development, supply chain management, manufacturing and service, and coordinate these processes across the enterprise to create product and service advantage. Our technology solutions are complemented by our services and support organizations, as well as third-party resellers and other strategic partners, who provide services and support to customers worldwide. | |
Basis of Presentation | |
Our fiscal year-end is September 30. The consolidated financial statements include PTC Inc. (the parent company) and its wholly owned subsidiaries, including those operating outside the U.S. All intercompany balances and transactions have been eliminated in the consolidated financial statements. | |
We prepare our financial statements under generally accepted accounting principles in the U.S. that require management to make estimates and assumptions that affect the amounts reported and the related disclosures. Actual results could differ from these estimates. |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Summary Of Significant Accounting Policies | ' | |||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||
Foreign Currency Translation | ||||||||||||||||
For our non-U.S. operations where the functional currency is the local currency, we translate assets and liabilities at exchange rates in effect at the balance sheet date and record translation adjustments in stockholders’ equity. For our non-U.S. operations where the U.S. dollar is the functional currency, we remeasure monetary assets and liabilities using exchange rates in effect at the balance sheet date and nonmonetary assets and liabilities at historical rates and record resulting exchange gains or losses in foreign currency net losses in the consolidated statement of operations. We translate income statement amounts at average rates for the period. Transaction gains and losses are recorded in foreign currency net losses in the consolidated statements of operations. | ||||||||||||||||
Revenue Recognition | ||||||||||||||||
We derive revenues from three primary sources: (1) software licenses, (2) services, and (3) support. We exercise judgment and use estimates in connection with determining the amounts of software license and services revenues to be recognized in each accounting period. We recognize revenue when: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred (generally, FOB shipping point or electronic distribution), (3) the fee is fixed or determinable, and (4) collection is probable. | ||||||||||||||||
Our software is distributed primarily through our direct sales force. In addition, we have an indirect distribution channel through alliances with resellers. Revenue arrangements with resellers are recognized on a sell-through basis; that is, when we deliver the product to the end-user customer. We record consideration given to a reseller as a reduction of revenue to the extent we have recorded revenue from the reseller. We do not offer contractual rights of return, stock balancing, or price protection to our resellers, and actual product returns from them have been insignificant to date. As a result, we do not maintain reserves for reseller product returns. | ||||||||||||||||
At the time of each sale transaction, we must make an assessment of the collectability of the amount due from the customer. Revenue is only recognized at that time if management deems that collection is probable. In making this assessment, we consider customer credit-worthiness and historical payment experience. At that same time, we assess whether fees are fixed or determinable and free of contingencies or significant uncertainties. In assessing whether the fee is fixed or determinable, we consider the payment terms of the transaction, including transactions with payment terms that extend beyond our customary payment terms, and our collection experience in similar transactions without making concessions, among other factors. We have periodically provided financing to credit-worthy customers with payment terms up to 24 months. If the fee is determined not to be fixed or determinable, revenue is recognized only as payments become due from the customer, provided that all other revenue recognition criteria are met. Our software license arrangements generally do not include customer acceptance provisions. However, if an arrangement includes an acceptance provision, we record revenue only upon the earlier of (1) receipt of written acceptance from the customer or (2) expiration of the acceptance period. | ||||||||||||||||
Our software arrangements often include implementation and consulting services that are sold under consulting engagement contracts or as part of the software license arrangement. When we determine that such services are not essential to the functionality of the licensed software, we record revenue separately for the license and service elements of these arrangements, provided that appropriate evidence of fair value exists for the undelivered services (see discussion below). Generally, we consider that a service is not essential to the functionality of the software based on various factors, including if the services may be provided by independent third parties experienced in providing such consulting and implementation in coordination with dedicated customer personnel and whether the services result in significant modification or customization of the software functionality. When consulting services qualify for separate accounting, consulting revenues under time and materials billing arrangements are recognized as the services are performed. Consulting revenues under fixed-priced contracts are generally recognized as the services are performed using a proportionate performance model with hours or costs as the input method of attribution. When we provide consulting services considered essential to the functionality of the software, the arrangement does not qualify for separate accounting of the license and service elements, and the license revenue is recognized together with the consulting services using the percentage-of-completion method of contract accounting. Under such arrangements, consideration is recognized as the services are performed as measured by an observable input. In these circumstances, we separate license revenue from service revenue for income statement presentation by allocating vendor specific objective evidence (VSOE) of fair value of the consulting services as service revenue and the residual portion as license revenue. Under the percentage-of-completion method, we estimate the stage of completion of contracts with fixed or “not to exceed” fees based on hours or costs incurred to date as compared with estimated total project hours or costs at completion. Adjustments to estimates to complete are made in the periods in which facts resulting in a change become known. When total cost estimates exceed revenues, we accrue for the estimated losses when identified. The use of the proportionate performance and percentage-of-completion methods of accounting require significant judgment relative to estimating total contract costs or hours (hours being a proxy for costs), including assumptions relative to the length of time to complete the project, the nature and complexity of the work to be performed and anticipated changes in salaries and other costs. | ||||||||||||||||
We generally use the residual method to recognize revenue from software arrangements that include one or more elements to be delivered at a future date when evidence of the fair value of all undelivered elements exists, and the elements of the arrangement qualify for separate accounting as described above. Under the residual method, the fair value of the undelivered elements (i.e., support and services) based on VSOE is deferred and the remaining portion of the total arrangement fee is allocated to the delivered elements (i.e., software license). If evidence of the fair value of one or more of the undelivered elements does not exist, all revenues are deferred and recognized when delivery of all of those elements has occurred or when fair values can be established. We determine VSOE of the fair value of services and support revenue based upon our recent pricing for those elements when sold separately. For certain transactions, VSOE of the fair value of support revenue is determined based on a substantive support renewal clause within a customer contract. Our current pricing practices are influenced primarily by product type, purchase volume, sales channel and customer location. We review services and support sold separately on a periodic basis and update, when appropriate, our VSOE of fair value for such services to ensure that it reflects our recent pricing experience. | ||||||||||||||||
Generally, our contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. | ||||||||||||||||
For subscription-based licenses, license revenue is recognized ratably over the term of the arrangement. In limited circumstances, where the right to use the software license is contingent upon current payments of support, fees for software license and support are recognized ratably over the initial support term. | ||||||||||||||||
Support contracts generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates and bug fixes. Support revenue is recognized ratably over the term of the support contract on a straight-line basis. | ||||||||||||||||
Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in services revenue, with the offsetting expense recorded in cost of service revenue. | ||||||||||||||||
Training services include on-site and classroom training. Training revenues are recognized as the related training services are provided. | ||||||||||||||||
Deferred Revenue | ||||||||||||||||
Deferred revenue primarily relates to software support agreements billed to customers for which the services have not yet been provided. The liability associated with performing these services is included in deferred revenue and, if not yet paid, the related amount is included in other current assets. Billed but uncollected support-related amounts included in other current assets at September 30, 2014 and 2013 were $116.2 million and $108.6 million, respectively. Deferred revenue consisted of the following: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Deferred support revenue | $ | 335,827 | $ | 312,721 | ||||||||||||
Deferred service revenue | 19,775 | 18,793 | ||||||||||||||
Deferred license revenue | 26,942 | 5,399 | ||||||||||||||
Total deferred revenue | $ | 382,544 | $ | 336,913 | ||||||||||||
Cash, Cash Equivalents | ||||||||||||||||
Our cash equivalents are invested in money market accounts and time deposits of financial institutions. We have established guidelines relative to credit ratings, diversification and maturities that are intended to maintain safety and liquidity. Cash equivalents include highly liquid investments with maturity periods of three months or less when purchased. | ||||||||||||||||
Concentration of Credit Risk and Fair Value of Financial Instruments | ||||||||||||||||
The amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short maturities. Financial instruments that potentially subject us to concentration of credit risk consist primarily of investments, trade accounts receivable and foreign currency derivative instruments. Our cash, cash equivalents, and foreign currency derivatives are placed with financial institutions with high credit standings. Our credit risk for derivatives is also mitigated due to the short-term nature of the contracts. Our customer base consists of large numbers of geographically diverse customers dispersed across many industries, and no individual customer comprised more than 10% of our trade accounts receivable as of September 30, 2014 or 2013. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. Accounting standards prescribe a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs that may be used to measure fair value: | ||||||||||||||||
• | Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; | |||||||||||||||
• | Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or | |||||||||||||||
• | Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||
Our significant financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and 2013 were as follows: | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash equivalents (1) | $ | 101,113 | $ | — | $ | — | $ | 101,113 | ||||||||
Forward contracts | — | 339 | — | 339 | ||||||||||||
$ | 101,113 | $ | 339 | $ | — | $ | 101,452 | |||||||||
Financial liabilities: | ||||||||||||||||
Contingent consideration related to ThingWorx acquisition | $ | — | $ | — | $ | 15,191 | $ | 15,191 | ||||||||
Forward contracts | — | 911 | — | 911 | ||||||||||||
$ | — | $ | 911 | $ | 15,191 | $ | 16,102 | |||||||||
September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash equivalents (1) | $ | 56,706 | $ | — | $ | — | $ | 56,706 | ||||||||
Forward contracts | — | 301 | — | $ | 301 | |||||||||||
$ | 56,706 | $ | 301 | $ | — | $ | 57,007 | |||||||||
Financial liabilities: | ||||||||||||||||
Forward contracts | — | 438 | — | $ | 438 | |||||||||||
$ | — | $ | 438 | $ | — | $ | 438 | |||||||||
(1) Money market funds and time deposits. | ||||||||||||||||
For a description of the inputs used to value the contingent consideration liability see Note E Acquisitions. Changes in the fair value of Level 3 contingent consideration liability associated with our acquisition of ThingWorx were as follows: | ||||||||||||||||
Contingent Consideration | ||||||||||||||||
(in thousands) | ||||||||||||||||
Balance at October 1, 2013 | $ | — | ||||||||||||||
ThingWorx contingent consideration at acquisition | 13,048 | |||||||||||||||
Change in fair value of contingent consideration | 2,143 | |||||||||||||||
Balance at September 30, 2014 | $ | 15,191 | ||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||
We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. In determining the adequacy of the allowance for doubtful accounts, management specifically analyzes individual accounts receivable, historical bad debts, customer concentrations, customer credit-worthiness, current economic conditions, and accounts receivable aging trends. Our allowance for doubtful accounts on trade accounts receivable was $1.6 million as of September 30, 2014, $3.0 million as of September 30, 2013, $3.4 million as of September 30, 2012 and $3.9 million as of September 30, 2011. Uncollectible trade accounts receivable written-off, net of recoveries, were $0.6 million, $0.6 million and $0.8 million in 2014, 2013 and 2012, respectively. Bad debt (credit) expense was $(0.8) million, $0.2 million and $0.3 million in 2014, 2013 and 2012, respectively, and is included in general and administrative expenses in the accompanying consolidated statements of operations. | ||||||||||||||||
Financing Receivables and Transfers of Financial Assets | ||||||||||||||||
We periodically provide extended payment terms for software purchases to credit-worthy customers with payment terms up to 24 months. The determination of whether to offer such payment terms is based on the size, nature and credit-worthiness of the customer, and the history of collecting amounts due, without concession, from the customer and customers generally. This determination is based on an internal credit assessment. In making this assessment, we use the Standard & Poor's (S&P) credit rating as our primary credit quality indicator, if available. If a customer, including both commercial and U.S. Federal government, has a S&P bond rating of BBB- or above, we designate the customer as a Tier 1. If a customer does not have a S&P bond rating, or has a S&P bond rating below BBB-, we base our assessment on an internal credit assessment which considers selected balance sheet, operating and liquidity measures, historical payment experience, and current business conditions within the industry or region. We designate these customers as Tier 2 or Tier 3, with Tier 3 being lower credit quality than Tier 2. | ||||||||||||||||
As of September 30, 2014 and 2013, amounts due from customers for contracts with original payment terms greater than twelve months (financing receivables) totaled $58.1 million and $53.1 million, respectively. Accounts receivable and other current assets in the accompanying consolidated balance sheets include current receivables from such contracts totaling $44.6 million and $36.1 million at September 30, 2014 and 2013, respectively, and other assets in the accompanying consolidated balance sheets include long-term receivables from such contracts totaling $13.5 million and $17.0 million at September 30, 2014 and 2013, respectively. As of September 30, 2014 and September 30, 2013, respectively, none of these receivables were past due. Our credit risk assessment for financing receivables was as follows: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
S&P bond rating BBB- and above-Tier 1 | $ | 41,152 | $ | 42,189 | ||||||||||||
Internal Credit Assessment-Tier 2 | 16,989 | 10,934 | ||||||||||||||
Internal Credit Assessment-Tier 3 | — | — | ||||||||||||||
Total financing receivables | $ | 58,141 | $ | 53,123 | ||||||||||||
We evaluate the need for an allowance for doubtful accounts for estimated losses resulting from the inability of these customers to make required payments. We write off uncollectible trade and financing receivables when we have exhausted all collection avenues. As of September 30, 2014 and 2013, we concluded that all financing receivables were collectible and no reserve for credit losses was recorded. We did not provide a reserve for credit losses or write off any uncollectible financing receivables in 2014, 2013 and 2012. | ||||||||||||||||
We periodically transfer future payments under certain of these contracts to third-party financial institutions on a non-recourse basis. We record such transfers as sales of the related accounts receivable when we surrender control of such receivables. In 2014, 2013 and 2012, we sold $24.5 million, $17.0 million and $14.3 million, respectively, of financing receivables to third-party financial institutions. | ||||||||||||||||
Derivatives | ||||||||||||||||
Generally accepted accounting principles require all derivatives, whether designated in a hedging relationship or not, to be recorded on the balance sheet at fair value. Changes in the derivative’s fair value are recognized currently in earnings unless specific hedge accounting criteria are met. | ||||||||||||||||
Derivatives are financial instruments whose values are derived from one or more underlying financial instruments, such as foreign currency. We enter into derivative transactions, specifically foreign currency forward contracts, to manage our exposure to fluctuations in foreign exchange rates that arise primarily from our foreign currency-denominated receivables and payables. The contracts are primarily denominated in European currencies, typically have maturities of approximately three months or less and require an exchange of foreign currencies for U.S. dollars at maturity of the contracts at rates agreed to at inception of the contracts. We do not enter into or hold derivatives for trading or speculative purposes. Generally, we do not designate foreign currency forward contracts as hedges for accounting purposes, and changes in the fair value of these instruments are recognized immediately in earnings. Because we enter into forward contracts only as an economic hedge, any gain or loss on the underlying foreign-denominated balance would be offset by the loss or gain on the forward contract. Gains and losses on forward contracts and foreign denominated receivables and payables are included in foreign currency net losses. | ||||||||||||||||
As of September 30, 2014 and 2013, we had outstanding forward contracts with notional amounts equivalent to the following: | ||||||||||||||||
September 30, | ||||||||||||||||
Currency Hedged | 2014 | 2013 | ||||||||||||||
(in thousands) | ||||||||||||||||
Canadian/U.S. Dollar | $ | 25,583 | $ | 41,852 | ||||||||||||
Euro/U.S. Dollar | 61,751 | 50,902 | ||||||||||||||
British Pound/Euro | 14,259 | — | ||||||||||||||
Israeli Sheqel/U.S. Dollar | 6,144 | 3,413 | ||||||||||||||
Japanese Yen/U.S. Dollar | — | 6,496 | ||||||||||||||
Swiss Franc/U.S. Dollar | 1,200 | 9,678 | ||||||||||||||
All other | 8,051 | 12,093 | ||||||||||||||
Total | $ | 116,988 | $ | 124,434 | ||||||||||||
The accompanying consolidated balance sheets include net assets of $0.3 million in other current assets as of both September 30, 2014 and 2013 and a net liability of $0.9 million and $0.4 million in accrued expenses and other current liabilities as of September 30, 2014 and 2013, respectively, related to the fair value of our forward contracts. | ||||||||||||||||
Net gains and losses on foreign currency exposures, including realized and unrealized gains and losses on forward contracts, included in foreign currency net losses, were net losses of $4.5 million, $2.0 million and $5.9 million for 2014, 2013 and 2012, respectively. Excluding the underlying foreign currency exposure being hedged, net realized and unrealized gains and losses on forward contracts included in foreign currency net losses, were net losses of $3.8 million in 2014 and $3.6 million in 2012, and a net gain of $3.4 million in 2013. | ||||||||||||||||
Property and Equipment | ||||||||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Computer hardware and software are typically amortized over three to five years, and furniture and fixtures over three to eight years. Leasehold improvements are amortized over the shorter of their useful lives or the remaining terms of the related leases. Property and equipment under capital leases are amortized over the lesser of the lease terms or their estimated useful lives. Maintenance and repairs are charged to expense when incurred; additions and improvements are capitalized. When an item is sold or retired, the cost and related accumulated depreciation is relieved, and the resulting gain or loss, if any, is recognized in income. | ||||||||||||||||
Software Development Costs | ||||||||||||||||
We incur costs to develop computer software to be licensed or otherwise marketed to customers. Research and development costs are expensed as incurred, except for costs of internally developed or externally purchased software that qualify for capitalization. Development costs for software to be sold externally incurred subsequent to the establishment of technological feasibility, but prior to the general release of the product, are capitalized and, upon general release, are amortized using the greater of either the straight-line method over the expected life of the related products or based upon the pattern in which economic benefits related to such assets are realized. The straight-line method is used if it approximates the same amount of expense as that calculated using the ratio that current period gross product revenues bear to total anticipated gross product revenues. No development costs for software to be sold externally were capitalized in 2014, 2013 or 2012. In connection with acquisitions of businesses described in Note E, we capitalized software of $48.9 million and $54.0 million in 2014 and 2013, respectively. These assets are included in acquired intangible assets in the accompanying consolidated balance sheets. | ||||||||||||||||
Goodwill, Acquired Intangible Assets and Long-lived Assets | ||||||||||||||||
Goodwill is the amount by which the purchase price in a business acquisition exceeds the fair values of net identifiable assets on the date of purchase. | ||||||||||||||||
Goodwill is evaluated for impairment annually, as of the end of the third quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Factors we consider important, on an overall company basis and reportable-segment basis, when applicable, that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, a significant decline in our stock price for a sustained period and a reduction of our market capitalization relative to net book value. We completed our annual goodwill impairment review as of June 28, 2014 and concluded that no impairment charge was required as of that date. To conduct these tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss equal to the difference between the carrying value of goodwill and its implied fair value. We estimate the fair values of our reporting units using discounted cash flow valuation models. Those models require estimates of future revenues, profits, capital expenditures, working capital, terminal values based on revenue multiples, and discount rates for each reporting unit. We estimate these amounts by evaluating historical trends, current budgets, operating plans and industry data. The estimated fair value of each reporting unit was more than double its carrying value as of June 28, 2014. | ||||||||||||||||
Long-lived assets primarily include property and equipment and acquired intangible assets with finite lives (including purchased software, customer lists and trademarks). Purchased software is amortized over periods up to 11 years, customer lists are amortized over periods up to 12 years and trademarks are amortized over periods up to 12 years. We review long-lived assets for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset or asset group. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. | ||||||||||||||||
Advertising Expenses | ||||||||||||||||
Advertising costs are expensed as incurred. Total advertising expenses incurred were $2.2 million, $4.2 million and $2.8 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||
Income Taxes | ||||||||||||||||
Our income tax expense includes U.S. and international income taxes. Certain items of income and expense are not reported in tax returns and financial statements in the same year. The tax effects of these differences are reported as deferred tax assets and liabilities. Deferred tax assets are recognized for the estimated future tax effects of deductible temporary differences and tax operating loss and credit carryforwards. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe that it is more likely than not that all or a portion of deferred tax assets will not be realized, we establish a valuation allowance. To the extent we establish a valuation allowance or increase this allowance in a period, we include an expense within the tax provision in the consolidated statement of operations. | ||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||
Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which includes foreign currency translation adjustments and changes in unrecognized actuarial gains and losses (net of tax) related to pension benefits. For the purposes of comprehensive income disclosures, we do not record tax provisions or benefits for the net changes in the foreign currency translation adjustment, as we intend to reinvest permanently undistributed earnings of our foreign subsidiaries. Accumulated other comprehensive loss is reported as a component of stockholders’ equity and, as of September 30, 2014 and 2013, was comprised of cumulative translation adjustment losses of $24.5 million and $0.4 million, respectively, and unrecognized actuarial losses related to pension benefits of $95.9 million ($69.9 million net of tax) and $74.4 million ($50.8 million net of tax), respectively. | ||||||||||||||||
Earnings per Share (EPS) | ||||||||||||||||
Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, restricted shares and restricted stock units using the treasury stock method. The calculation of the dilutive effect of outstanding equity awards under the treasury stock method includes consideration of proceeds from the assumed exercise of stock options, unrecognized compensation expense and any tax benefits as additional proceeds. | ||||||||||||||||
The following table presents the calculation for both basic and diluted EPS: | ||||||||||||||||
Year ended September 30, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net income (loss) | $ | 160,194 | $ | 143,769 | $ | (35,398 | ) | |||||||||
Weighted average shares outstanding | 118,094 | 119,473 | 118,705 | |||||||||||||
Dilutive effect of employee stock options, restricted shares and restricted stock units | 1,890 | 1,767 | — | |||||||||||||
Diluted weighted average shares outstanding | 119,984 | 121,240 | 118,705 | |||||||||||||
Basic earnings (loss) per share | $ | 1.36 | $ | 1.2 | $ | (0.30 | ) | |||||||||
Diluted earnings (loss) per share | $ | 1.34 | $ | 1.19 | $ | (0.30 | ) | |||||||||
Due to the net loss generated in 2012, the dilutive effect of stock options, restricted shares and restricted stock units totaling 2.3 million was excluded from the computation of diluted EPS for that period as the effect would have been anti-dilutive. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
We measure the compensation cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. See Note K for a description of the types of stock-based awards granted, the compensation expense related to such awards and detail of equity-based awards outstanding. See Note G for detail of the tax benefit recognized in the consolidated statement of operations related to stock-based compensation. | ||||||||||||||||
Related Party Transaction | ||||||||||||||||
On November 27, 2013, we entered into a consulting agreement with Professor Michael Porter, a director of PTC. In consideration for providing consulting services, we made a restricted stock unit grant valued at approximately $0.2 million (6,213 shares) to Professor Porter, half of which vested on November 15, 2014 and the other half of which will vest on the earlier of the 2015 Annual Stockholders' Meeting and March 15, 2015. Professor Porter may also earn up to $240,000 in fees for participation in strategy events on behalf of PTC under the agreement. The agreement will terminate on the earlier of the date of PTC's 2015 Annual Stockholders' Meeting and March 15, 2015, unless earlier terminated by either party. | ||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||
Revenue Recognition | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for us in our first quarter of fiscal 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. | ||||||||||||||||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | ||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740)—Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 generally requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, shall be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for us in our first quarter of fiscal 2015. We are currently evaluating the impact of our pending adoption of ASU 2013-11 on our consolidated financial statements. |
Restructuring_Charges
Restructuring Charges | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Restructuring [Abstract] | ' | |||||||||||
Restructuring Charges | ' | |||||||||||
Restructuring Charges | ||||||||||||
In September 2014, in support of integrating businesses acquired in the past year and the continued evolution of our business model, we committed to a plan to restructure our workforce. As a result, we recorded a restructuring charge of $26.8 million associated with severance and related costs associated with 283 employees. Additionally, in 2014, we recorded restructuring charges of $1.6 million, primarily associated with the completion of the restructuring actions initiated in the fourth quarter of 2013. | ||||||||||||
During 2013, as part of our ongoing strategy to reduce costs and improve profitability, we implemented restructuring actions and recorded restructuring charges of $52.2 million (including $52.4 million related to 2013 actions, net of a $0.2 million credit related to prior period restructuring reserves). The 2013 restructuring charges included $51.0 million for severance and related costs associated with 553 employees and $1.5 million of charges related to excess facilities. | ||||||||||||
In 2012, we adopted a plan to restructure our workforce and related facilities to enhance long-term profitability and recorded restructuring charges of $24.9 million. The restructuring charges included $24.4 million for severance and related costs associated with 209 employees and a $0.5 million charge related to facility consolidations. | ||||||||||||
The following table summarizes restructuring charges reserve activity for the three years ended September 30, 2014: | ||||||||||||
Employee Severance | Facility Closures | Consolidated Total | ||||||||||
and Related Benefits | and Other Costs | |||||||||||
(in thousands) | ||||||||||||
Balance, October 1, 2011 | $ | — | $ | 666 | $ | 666 | ||||||
Charges to operations | 24,391 | 537 | 24,928 | |||||||||
Cash disbursements | (20,401 | ) | (546 | ) | (20,947 | ) | ||||||
Foreign currency impact | (192 | ) | 6 | (186 | ) | |||||||
Balance, September 30, 2012 | 3,798 | 663 | 4,461 | |||||||||
Charges to operations | 50,874 | 1,323 | 52,197 | |||||||||
Cash disbursements | (35,510 | ) | (1,689 | ) | (37,199 | ) | ||||||
Foreign currency impact | 72 | (2 | ) | 70 | ||||||||
Balance, September 30, 2013 | 19,234 | 295 | 19,529 | |||||||||
Charges to operations | 27,918 | 488 | 28,406 | |||||||||
Cash disbursements | (20,334 | ) | (241 | ) | (20,575 | ) | ||||||
Foreign currency impact | (983 | ) | (7 | ) | (990 | ) | ||||||
Balance, September 30, 2014 | $ | 25,835 | $ | 535 | $ | 26,370 | ||||||
The accrual for facility closures and related costs is included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheet, and the accrual for employee severance and related benefits is included in accrued compensation and benefits in the consolidated balance sheet. |
Property_And_Equipment
Property And Equipment | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property And Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment consisted of the following: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Computer hardware and software | $ | 230,591 | $ | 217,724 | ||||
Furniture and fixtures | 19,025 | 19,211 | ||||||
Leasehold improvements | 36,896 | 35,289 | ||||||
Gross property and equipment | 286,512 | 272,224 | ||||||
Accumulated depreciation and amortization | (218,729 | ) | (207,572 | ) | ||||
Net property and equipment | $ | 67,783 | $ | 64,652 | ||||
Depreciation expense was $27.1 million, $31.5 million and $30.4 million in 2014, 2013 and 2012, respectively. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||
Acquisition | ' | ||||||||||||||
Acquisitions | |||||||||||||||
In 2014, we completed the acquisitions of Axeda, Atego and ThingWorx, and in 2013 we completed the acquisitions of Servigistics, Enigma and NetIDEAS. The results of operations of these acquired businesses have been included in our consolidated financial statements beginning on their respective acquisition dates. Axeda, Atego and ThingWorx collectively added $9.8 million to our 2014 revenue and approximately $12 million in operating losses. Servigistics, Enigma and NetIDEAS collectively added $94.9 million to our 2013 revenue. | |||||||||||||||
These acquisitions have been accounted for as business combinations. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the respective acquisition date. The fair values of intangible assets were based on valuations using an income approach, with estimates and assumptions provided by management of the acquired companies and PTC. The process for estimating the fair values of identifiable intangible assets and the ThingWorx contingent consideration liability requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. | |||||||||||||||
In accounting for these business combinations, we recorded net deferred tax liabilities of $21.6 million and $38.7 million in 2014 and 2013, respectively, primarily related to the tax effect of the acquired intangible assets other than goodwill that are not deductible for income tax purposes, partially offset by net operating loss carryforwards. As described in Note G, these net deferred tax liabilities reduced our net deferred tax asset balance and resulted in a tax benefit to decrease our valuation allowance in the U.S. and the U.K. | |||||||||||||||
Acquisition-related costs were $12.7 million, $9.9 million and $3.8 million in 2014, 2013 and 2012, respectively. Acquisition-related costs include direct costs of completing an acquisition (e.g., investment banker fees and professional fees, including legal and valuation services) and expenses related to acquisition integration activities (e.g., professional fees, severance, and retention bonuses). In addition, subsequent adjustments to our initial estimated amount of ThingWorx contingent consideration, primarily net present value changes, are included within acquisition-related charges. These costs have been classified in general and administrative expenses in the accompanying consolidated statements of operations. | |||||||||||||||
2014 Acquisitions | |||||||||||||||
Axeda | |||||||||||||||
On August 11, 2014, pursuant to an Agreement and Plan of Merger with Aztec Acquisition Corporation, a wholly-owned subsidiary of PTC ("Merger Sub"), Axeda Corporation ("Axeda"), and Fortis Advisors LLC, as the Securityholder Representative, we acquired all of the outstanding shares of capital stock of Axeda for approximately $165.9 million in cash (net of cash acquired of $9.6 million). We borrowed $170 million under our credit facility to fund the acquisition. | |||||||||||||||
Axeda is a developer of solutions to securely connect machines and sensors to the cloud. Axeda had approximately160 employees, primarily located in the United States. | |||||||||||||||
The purchase price allocation resulted in $130.4 million of goodwill, which will not be deductible for income tax purposes. Of the acquired goodwill, $126.0 million was allocated to our software products segment and $4.4 million was allocated to our services segment. The resulting amount of goodwill reflects our expectations of the following benefits: (1) acceleration of our entry into the emerging Internet of Things (IoT) market including supporting manufacturers seeking to create and service smart, connected products and helping companies in a wide range of other industries seeking to manage connected products and machines and develop applications for the IoT; (2) our intention to leverage our larger sales force and our intellectual property to attract new contracts and revenue; (3) our intention to leverage Axeda's customer base to sell PTC existing products; and (4) our intention to leverage our established presence in global markets. | |||||||||||||||
Atego | |||||||||||||||
On June 30, 2014, we acquired all of the outstanding shares of capital stock of Atego Group Limited for approximately $46.0 million in cash (net of cash acquired of $3.6 million). At the time of the acquisition, Atego had approximately 110 employees. | |||||||||||||||
Atego developed a Model-Based Systems Engineering (MBSE) solution for safety-critical applications and product line engineering. This technology drives process standardization, allowing distributed teams to collaboratively develop and manage models of complex systems. The purchase price allocation resulted in $27.3 million of goodwill, which will not be deductible for income tax purposes. The resulting amount of goodwill reflects the value of the additional functionality added to our ALM product solutions through the acquisition that we can leverage to increase sales to our customers. The capabilities added with this acquisition are increasingly important to manufacturers as they develop smart, connected products with sophisticated mechanical, electrical and software components. | |||||||||||||||
ThingWorx | |||||||||||||||
On December 30, 2013, pursuant to an Agreement and Plan of Merger (the "Merger Agreement"), we acquired all of the outstanding shares of capital stock of ThingWorx, Inc., creators of a platform for building and running applications for the IoT, for $111.5 million in cash (net of cash acquired of $0.1 million) and $13.0 million representing the fair value of contingent consideration payable upon achievement of targets described below. We borrowed $110.0 million under our existing credit facility to fund the acquisition. | |||||||||||||||
We acquired ThingWorx to accelerate our ability to support manufacturers as they create and service smart, connected products. At the time of the acquisition, ThingWorx had approximately 40 employees. | |||||||||||||||
The former shareholders of ThingWorx are eligible to receive additional consideration of up to $18.0 million, which is contingent on the achievement of certain profitability and bookings targets (as defined in the Merger Agreement) within the period from December 30, 2013 to January 1, 2016. If such targets are achieved, the consideration is payable in cash in two installments, up to half of which will become payable in fiscal 2015, after the first year measurement period, and the remainder of which, including any such amounts not earned in the first measurement period that are subsequently earned, will become payable in fiscal 2016 after the second year measurement period. In connection with accounting for the business combination, we recorded a liability of $13.0 million representing the fair value of the contingent consideration. The liability was valued using a discounted cash flow method and a probability weighted estimate of achievement of the financial targets. The estimated undiscounted range of outcomes for the contingent consideration is $16.5 million to $18.0 million. We will assess the probability that the targets will be met and at what level each reporting period. Any subsequent changes in the estimated fair value of the liability will be reflected in earnings until the liability is fully settled (activity in 2014 was $2.1 million, see Note B). | |||||||||||||||
The purchase price allocation resulted in $102.2 million of goodwill, which will not be deductible for income tax purposes. All of the acquired goodwill was allocated to our software products segment. Additionally, we recorded in process research and development (IPR&D) of $0.5 million related to a version of ThingWorx software released in the third quarter of 2014. The value of the IPR&D was determined using an income approach. | |||||||||||||||
The resulting amount of goodwill reflects our expectations of the following benefits: (1) acceleration of our entry into the emerging IoT market including supporting manufacturers seeking to create and service smart, connected products and helping companies in a wide range of other industries seeking to develop applications for the IoT; (2) our intention to leverage our larger sales force and our intellectual property to attract new contracts and revenue; and (3) our intention to leverage our established presence in global markets. | |||||||||||||||
Purchase price for our 2014 acquisitions was allocated to assets and liabilities acquired as follows: | |||||||||||||||
Purchase price allocation: | Axeda | Atego | ThingWorx | ||||||||||||
(in thousands) | |||||||||||||||
Goodwill | $ | 130,443 | $ | 27,256 | $ | 102,190 | |||||||||
Identifiable intangible assets | 59,170 | 27,750 | 32,520 | ||||||||||||
Cash | 9,575 | 3,550 | 133 | ||||||||||||
Deferred revenue | (18,242 | ) | (6,058 | ) | (900 | ) | |||||||||
Deferred tax assets and liabilities, net | (9,145 | ) | (3,476 | ) | (8,934 | ) | |||||||||
Other assumed assets and liabilities, net | 3,674 | 634 | (309 | ) | |||||||||||
Total allocation of purchase price consideration | 175,475 | 49,656 | 124,700 | ||||||||||||
Less: cash acquired | (9,575 | ) | (3,550 | ) | (133 | ) | |||||||||
Total purchase price allocation, net of cash acquired | 165,900 | 46,106 | 124,567 | ||||||||||||
Less: contingent consideration | — | — | (13,048 | ) | |||||||||||
Net cash used for acquisitions of businesses | $ | 165,900 | $ | 46,106 | $ | 111,519 | |||||||||
Intangible assets are being amortized over weighted average useful lives based upon the pattern in which economic benefits related to such assets are expected to be realized. Intangible assets for our 2014 acquisitions and their respective average useful lives are in the table that follows. | |||||||||||||||
Intangible asset allocation: | Axeda | Atego | ThingWorx | ||||||||||||
($ amounts in thousands) | |||||||||||||||
Amount | Life | Amount | Life | Amount | Life | ||||||||||
Purchased software | $ | 19,700 | 9 | $ | 8,200 | 11 | $ | 21,000 | 11 | ||||||
Customer lists | 36,600 | 9 | 19,400 | 11 | 8,800 | 9 | |||||||||
Trademarks | 2,800 | 12 | 150 | 3 | 2,300 | 12 | |||||||||
Other | 70 | 2 | — | 420 | 3 | ||||||||||
Total identifiable intangible assets | $ | 59,170 | $ | 27,750 | $ | 32,520 | |||||||||
2013 Acquisitions | |||||||||||||||
NetIDEAS and Enigma | |||||||||||||||
In the fourth quarter of 2013, we acquired all of the outstanding common stock of NetIDEAS, Inc. (a privately-held U.S.- based company) and Enigma Information Systems LTD (a privately-held company with operations in Israel, the U.S., the U.K and Sweden) for a total of $25.0 million, net of $1.0 million of cash acquired. The acquisitions resulted in goodwill of $14.3 million, intangible assets of $15.2 million and deferred tax liabilities related to the intangible assets of $5.3 million. Our results of operations prior to these acquisitions, if presented on a pro forma basis, would not differ materially from our reported results. | |||||||||||||||
Servigistics | |||||||||||||||
On October 2, 2012, we acquired all of the outstanding shares of capital stock of Servigistics, Inc. (a privately held developer of a suite of service lifecycle management (SLM) software solutions) for $220.8 million in cash, net of $1.4 million cash acquired. We acquired Servigistics to expand our products that support service organizations within manufacturing companies, including managing service and spare parts information and the delivery of service for warranty and product support processes. Servigistics had annualized revenues of approximately $80.0 million and approximately 400 employees. | |||||||||||||||
The unaudited financial information in the table below summarizes the combined results of operations of PTC and Servigistics, on a pro forma basis, as though the companies had been combined as of the beginning of PTC's fiscal year 2012. The pro forma information for all periods presented includes the effects of business combination accounting resulting from the acquisition as though the acquisition had been consummated as of the beginning of fiscal year 2012, including amortization charges from acquired intangible assets, the fair value adjustment of acquired deferred support revenue being recorded in fiscal year 2012 versus fiscal year 2013, interest expense on borrowings in connection with the acquisition, the exclusion of acquisition-related costs and the related tax effects. In 2013, we recorded a tax benefit of $32.6 million to decrease our valuation allowance as a result of Servigistics' net deferred tax liabilities recorded in accounting for the business combination. This tax benefit is excluded from the 2013 pro forma results and is reflected in the 2012 pro forma results because the deferred tax liabilities would have resulted in a lower tax charge when we established a valuation allowance against all of our U.S. net deferred tax assets in the fourth quarter of 2012. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisition had taken place at the beginning of 2012. | |||||||||||||||
Unaudited Pro Forma Financial Information | |||||||||||||||
Year ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Revenue | $ | 1,296.60 | $ | 1,328.50 | |||||||||||
Net income (loss) | $ | 116.5 | $ | (11.6 | ) | ||||||||||
Earnings (loss) per share—Basic | $ | 0.98 | $ | (0.10 | ) | ||||||||||
Earnings (loss) per share—Diluted | $ | 0.96 | $ | (0.10 | ) | ||||||||||
Goodwill_And_Acquired_Intangib
Goodwill And Acquired Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill And Intangible Assets | ' | |||||||||||||||||||||||
Goodwill and Acquired Intangible Assets | ||||||||||||||||||||||||
We have two reportable segments: (1) software products and (2) services. As of September 30, 2014 and 2013, goodwill and acquired intangible assets in the aggregate attributable to our software products reportable segment was $1,283.0 million and $979.3 million, respectively, and attributable to our services reportable segment was $66.4 million and $62.9 million, respectively. Goodwill is tested for impairment at least annually, or on an interim basis if an event occurs or circumstances change that would, more likely than not, reduce the fair value of the reporting segment below its carrying value. We completed our annual goodwill impairment review as of June 28, 2014 and concluded that no impairment charge was required as of that date. To conduct these tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss equal to the difference between the carrying value of goodwill and its implied fair value. We estimate the fair values of our reporting units using discounted cash flow valuation models. Those models require estimates of future revenues, profits, capital expenditures, working capital, terminal values based on revenue multiples, and discount rates for each reporting unit. We estimate these amounts by evaluating historical trends, current budgets, operating plans and industry data. The estimated fair value of each reporting unit was more than double its carrying value as of June 28, 2014. Through September 30, 2014, there have not been any events or changes in circumstances that indicate that the carrying values of goodwill or acquired intangible assets may not be recoverable. | ||||||||||||||||||||||||
Goodwill and acquired intangible assets consisted of the following: | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Goodwill (not amortized) | $ | 1,012,527 | $ | 769,095 | ||||||||||||||||||||
Intangible assets with finite lives (amortized) (1): | ||||||||||||||||||||||||
Purchased software | $ | 278,012 | $ | 162,259 | $ | 115,753 | $ | 233,566 | $ | 148,127 | $ | 85,439 | ||||||||||||
Capitalized software | 22,877 | 22,877 | — | 22,877 | 22,877 | — | ||||||||||||||||||
Customer lists and relationships | 360,530 | 147,469 | 213,061 | 304,434 | 120,338 | 184,096 | ||||||||||||||||||
Trademarks and trade names | 18,479 | 10,964 | 7,515 | 13,427 | 10,097 | 3,330 | ||||||||||||||||||
Other | 4,117 | 3,573 | 544 | 3,784 | 3,528 | 256 | ||||||||||||||||||
$ | 684,015 | $ | 347,142 | $ | 336,873 | $ | 578,088 | $ | 304,967 | $ | 273,121 | |||||||||||||
Total goodwill and acquired intangible assets | $ | 1,349,400 | $ | 1,042,216 | ||||||||||||||||||||
(1) The weighted average useful lives of purchased software, customer lists and relationships, trademarks and trade names and other intangible assets with a remaining net book value are 9 years, 10 years, 9 years and 3 years, respectively. | ||||||||||||||||||||||||
The changes in the carrying amounts of goodwill from October 1, 2013 to September 30, 2014 are due to the impact of acquisitions (described in Note E) and to foreign currency translation adjustments related to those asset balances that are recorded in non-U.S. currencies. | ||||||||||||||||||||||||
Changes in goodwill presented by reportable segment were as follows: | ||||||||||||||||||||||||
Software | Services | Total | ||||||||||||||||||||||
Products | Segment | |||||||||||||||||||||||
Segment | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Balance, October 1, 2012 | $ | 585,469 | $ | 24,878 | $ | 610,347 | ||||||||||||||||||
Acquisition of Servigistics | 127,033 | 12,800 | 139,833 | |||||||||||||||||||||
Acquisition of NetIDEAS | — | 10,196 | 10,196 | |||||||||||||||||||||
Acquisition of Enigma | 3,570 | 581 | 4,151 | |||||||||||||||||||||
Foreign currency translation | 4,476 | 92 | 4,568 | |||||||||||||||||||||
Balance, September 30, 2013 | 720,548 | 48,547 | 769,095 | |||||||||||||||||||||
Acquisition of ThingWorx | 102,190 | — | 102,190 | |||||||||||||||||||||
Acquisition of Atego | 27,256 | — | 27,256 | |||||||||||||||||||||
Acquisition of Axeda | 126,034 | 4,409 | 130,443 | |||||||||||||||||||||
Foreign currency translation | (16,260 | ) | (197 | ) | (16,457 | ) | ||||||||||||||||||
Balance, September 30, 2014 | $ | 959,768 | $ | 52,759 | $ | 1,012,527 | ||||||||||||||||||
The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2014, 2013 and 2012 was reflected in our consolidated statements of operations as follows: | ||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Amortization of acquired intangible assets | $ | 32,127 | $ | 26,486 | $ | 20,303 | ||||||||||||||||||
Cost of license revenue | 17,746 | 18,586 | 15,819 | |||||||||||||||||||||
Cost of service revenue | 366 | — | — | |||||||||||||||||||||
Total amortization expense | $ | 50,239 | $ | 45,072 | $ | 36,122 | ||||||||||||||||||
The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2014 is $54.7 million for 2015, $51.2 million for 2016, $48.6 million for 2017, $46.3 million for 2018, $36.7 million for 2019, and $99.4 million thereafter. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Our income (loss) before income taxes consisted of the following: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Domestic | $ | 17,038 | $ | 6,112 | $ | (11,422 | ) | |||||
Foreign | 169,074 | 120,122 | 132,158 | |||||||||
Total income before income taxes | $ | 186,112 | $ | 126,234 | $ | 120,736 | ||||||
Our (benefit) provision for income taxes consisted of the following: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 12,792 | $ | 7,081 | $ | 8,534 | ||||||
State | 2,062 | 1,512 | 1,733 | |||||||||
Foreign | 31,010 | 13,586 | 41,101 | |||||||||
45,864 | 22,179 | 51,368 | ||||||||||
Deferred: | ||||||||||||
Federal | (13,200 | ) | (38,224 | ) | 106,041 | |||||||
State | (2,085 | ) | (4,718 | ) | 7,706 | |||||||
Foreign | (4,661 | ) | 3,228 | (8,981 | ) | |||||||
(19,946 | ) | (39,714 | ) | 104,766 | ||||||||
Total provision (benefit) for income taxes | $ | 25,918 | $ | (17,535 | ) | $ | 156,134 | |||||
The reconciliation between the statutory federal income tax rate and our effective income tax rate is shown below: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
Change in valuation allowance | (11 | )% | (32 | )% | 103 | % | ||||||
State income taxes, net of federal tax benefit | 1 | % | 1 | % | — | % | ||||||
Federal and state research and development credits | — | % | (1 | )% | (1 | )% | ||||||
Tax audit and examination settlements | — | % | (1 | )% | 1 | % | ||||||
Foreign rate differences | (19 | )% | (26 | )% | (16 | )% | ||||||
Foreign withholding tax | 3 | % | 5 | % | 3 | % | ||||||
Subsidiary reorganization | — | % | — | % | 3 | % | ||||||
Other, net | 5 | % | 5 | % | 1 | % | ||||||
Effective income tax rate | 14 | % | (14 | )% | 129 | % | ||||||
In 2014, our effective tax rate was a provision of 14% on pre-tax income of $186.1 million. Our effective tax rate was lower than the 35% statutory federal income tax rate due, in large part, to the reversal of a portion of the valuation allowance against U.S. deferred tax assets. We recorded benefits resulting from 2014 acquisitions as described below. Other factors impacting the effective tax rate include: our corporate structure in which our foreign taxes are at an effective tax rate lower than the U.S. rate, foreign withholding taxes of $5.1 million and the establishment of a valuation allowance totaling $3.5 million in two foreign subsidiaries. | ||||||||||||
In 2013, our effective tax rate was a benefit of 14% on pre-tax income of $126.2 million. Our effective tax rate was lower than the 35% statutory federal income tax rate due, in large part, to the reversal of a portion of the valuation allowance against deferred tax assets (primarily the U.S.). We recorded benefits resulting from 2013 acquisitions as described below, and a benefit of $7.9 million related to the release of a valuation allowance as a result of a pension gain recorded in accumulated other comprehensive income in equity. Additionally, our 2013 tax provision reflects a $2.0 million provision related to a research and development (R&D) cost sharing prepayment by a foreign subsidiary to the U.S. A similar prepayment was made in 2012 resulting in a $7.8 million provision in that year. This impact is included in foreign rate differences in our effective tax rate reconciliation above. This impact was offset by a corresponding increase in our valuation allowance in the U.S. Other factors impacting the rate include: our corporate structure in which our foreign taxes are at an effective tax rate lower than the U.S. rate, foreign withholding taxes of $6.0 million and non-cash tax benefits of $5.3 million, included in foreign rate differences, recorded as a result of the conclusion of tax audits in several foreign jurisdictions. | ||||||||||||
Acquisitions in 2014 and 2013 were accounted for as business combinations. Assets acquired, including the fair value of acquired tangible assets, intangible assets and assumed liabilities were recorded, and we recorded net deferred tax liabilities of $21.6 million and $38.7 million in 2014 and 2013, respectively, primarily related to the tax effect of the acquired intangible assets that are not deductible for income tax purposes. These deferred tax liabilities reduced our net deferred tax asset balance and resulted in a tax benefit of $18.1 million and $36.7 million in 2014 and 2013, respectively, to decrease our valuation allowance in jurisdictions where we have recorded a valuation allowance (primarily the U.S.). As these decreases in the valuation allowance are not part of the accounting for business combinations (the fair value of the assets acquired and liabilities assumed), they were recorded as an income tax benefit. | ||||||||||||
In 2012, our effective tax rate was higher than the 35% statutory federal income tax rate due primarily to the recording of a $124.5 million charge to the income tax provision related to the establishment of a valuation allowance on U.S. net deferred tax assets. This increase was offset in part as a result of our corporate structure in which our foreign taxes are at an effective tax rate lower than the U.S. rate. Our 2012 provision included $4.2 million related to the restructuring of our Canadian operations that resulted in a change in the tax status of the foreign legal entity and a discrete non-cash charge of $1.4 million related to the impact of a Japanese legislative change on our Japan entities' deferred tax assets. Additionally, our 2012 tax provision reflects a $7.8 million provision related to a research and development cost sharing prepayment by a foreign subsidiary to the U.S. We made a comparable prepayment in 2011. Foreign rate differences in our effective tax rate reconciliation above include the effect of the current year deferred charges associated with intercompany transactions. | ||||||||||||
At September 30, 2014 and 2013, income taxes payable and income tax accruals recorded in accrued income taxes, other current liabilities, and other liabilities on the accompanying consolidated balance sheets were $17.7 million ($9.3 million in accrued income taxes, $1.3 million in other current liabilities and $7.1 million in other liabilities) and $14.4 million ($7.1 million in accrued income taxes, $2.1 million in other current liabilities and $5.2 million in other liabilities), respectively. At September 30, 2014 and 2013, prepaid taxes recorded in prepaid expenses on the accompanying consolidated balance sheets were $6.3 million and $11.5 million, respectively. We made net income tax payments of $25.5 million, $35.4 million and $53.0 million in 2014, 2013 and 2012, respectively. | ||||||||||||
The significant temporary differences that created deferred tax assets and liabilities are shown below: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 65,640 | $ | 47,770 | ||||||||
Foreign tax credits | 9,022 | 5,994 | ||||||||||
Capitalized research and development expense | 41,720 | 51,237 | ||||||||||
Pension benefits | 39,063 | 30,870 | ||||||||||
Deferred revenue | 67,433 | 63,976 | ||||||||||
Stock-based compensation | 16,744 | 18,045 | ||||||||||
Other reserves not currently deductible | 25,258 | 19,343 | ||||||||||
Amortization of intangible assets | 9,302 | 5,772 | ||||||||||
Other tax credits | 30,982 | 31,263 | ||||||||||
Depreciation | 3,157 | 3,077 | ||||||||||
Other | 8,218 | 4,396 | ||||||||||
Gross deferred tax assets | 316,539 | 281,743 | ||||||||||
Valuation allowance | (177,541 | ) | (156,547 | ) | ||||||||
Total deferred tax assets | 138,998 | 125,196 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Acquired intangible assets not deductible | (110,003 | ) | (88,134 | ) | ||||||||
Pension prepayments | (20,263 | ) | (15,607 | ) | ||||||||
Deferred revenue | (1,446 | ) | (12,592 | ) | ||||||||
Other | (4,484 | ) | (4,463 | ) | ||||||||
Total deferred tax liabilities | (136,196 | ) | (120,796 | ) | ||||||||
Net deferred tax assets | $ | 2,802 | $ | 4,400 | ||||||||
In the fourth quarter of 2012, we recorded a $124.5 million non-cash charge to the income tax provision to establish a valuation allowance against substantially all of our U.S. net deferred tax assets. We weighed all available evidence, both positive and negative, and concluded that it was more likely than not (a likelihood of more than 50 percent) that substantially all of our U.S. deferred tax assets will not be realized. The realization of deferred tax assets, including carryforwards and deductible temporary differences, depends on the existence of sufficient taxable income of the same character during the carryback or carryforward period. We considered all sources of taxable income available to realize the deferred tax assets, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in prior carryback years and tax-planning strategies. | ||||||||||||
For U.S. tax return purposes, net operating loss (NOL) carryforwards and tax credits are generally available to be carried forward to future years, subject to certain limitations. At September 30, 2014, we had U.S. federal NOL carryforwards of $97.2 million that expire in 2019 to 2034. These include NOL carryforwards from acquisitions of $82.7 million, consisting of $63.5 million from Axeda and Atego and $19.2 million from prior acquisitions. The utilization of these NOL carryforwards is limited as a result of the change in ownership rules under Internal Revenue Code Section 382. NOL's totaling $21.0 million relate to windfall tax benefits that have not been recognized, the impact of which will be recorded in APIC when realized. | ||||||||||||
As of September 30, 2014, we had Federal R&D credit carryforwards of $17.7 million, which expire beginning in 2026 and ending in 2034, and Massachusetts R&D credit carryforwards of $21.3 million, which expire beginning in 2015 and ending in 2029. We also had foreign tax credits of $9.0 million, which expire beginning in 2023 and ending in 2024. A full valuation allowance is recorded against these carryforwards. | ||||||||||||
We also have NOL carryforwards in non-U.S. jurisdictions totaling $187.3 million, the majority of which do not expire. We also have non-U.S. tax credit carryforwards of $7.4 million that expire beginning in 2026 and ending in 2033. There are limitations imposed on the utilization of such NOLs that could restrict the recognition of any tax benefits. | ||||||||||||
As of September 30, 2014, we have a valuation allowance of $144.0 million against net deferred tax assets in the U.S. and a remaining valuation allowance of $33.5 million against net deferred tax assets in certain foreign jurisdictions. The valuation allowance recorded against net deferred tax assets of certain foreign jurisdictions is established primarily for our net operating loss carryforwards, the majority of which do not expire. There are limitations imposed on the utilization of such net operating losses that could restrict the recognition of any tax benefits. | ||||||||||||
The changes to the valuation allowance were primarily due to: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in millions) | ||||||||||||
Valuation allowance beginning of year | $ | 156.5 | $ | 170.4 | $ | 38.6 | ||||||
Net release of valuation allowance (1) | (18.1 | ) | (44.6 | ) | — | |||||||
Establish valuation allowance in the U.S. | — | — | 124.5 | |||||||||
Net increase/decrease in deferred tax assets for foreign jurisdictions with a full valuation allowance | (5.2 | ) | 1.9 | (2.1 | ) | |||||||
Establish valuation allowance for acquired businesses | 21.5 | 12.1 | — | |||||||||
Establish valuation allowance in foreign jurisdictions | 3.5 | — | 0.6 | |||||||||
Adjust deferred tax asset and valuation allowance | 19.3 | 16.7 | 8.8 | |||||||||
Valuation allowance end of year | $ | 177.5 | $ | 156.5 | $ | 170.4 | ||||||
-1 | In 2014 and 2013, this is attributable to recognition of deferred tax liabilities recorded in connection with accounting for acquisitions and in 2013 a reduction in deferred tax assets associated with our U.S. pension plan, both of which are described above. | |||||||||||
Our policy is to record estimated interest and penalties related to the underpayment of income taxes as a component of our income tax provision. In both 2014 and 2012 we recorded interest expense of $0.3 million. In 2013, we recorded a net benefit of $1.2 million. We recorded penalty expense of $0.1 million in 2012. In 2014 and 2013, we had no tax penalty expense in our income tax provision. As of September 30, 2014 and 2013, we had accrued $1.4 million and $1.1 million, respectively, of net estimated interest expense related to income tax accruals. We had $0.1 million of accrued tax penalties as of September 30, 2013, and no accrued tax penalties as of September 30, 2014. | ||||||||||||
Year ended September 30, | ||||||||||||
Unrecognized tax benefits | 2014 | 2013 | 2012 | |||||||||
(in millions) | ||||||||||||
Unrecognized tax benefit beginning of year | $ | 13.7 | $ | 19.1 | $ | 16.2 | ||||||
Tax positions related to current year: | ||||||||||||
Additions | 2.2 | 1 | 3.4 | |||||||||
Tax positions related to prior years: | ||||||||||||
Additions | 0.3 | 1.8 | 1.4 | |||||||||
Reductions | (0.1 | ) | (6.3 | ) | (0.5 | ) | ||||||
Settlements | (0.6 | ) | (0.7 | ) | — | |||||||
Statute expirations | (0.5 | ) | (1.2 | ) | (1.4 | ) | ||||||
Unrecognized tax benefit end of year | $ | 15 | $ | 13.7 | $ | 19.1 | ||||||
If all of our unrecognized tax benefits as of September 30, 2014 were to become recognizable in the future, we would record a benefit to the income tax provision of $13.8 million (which would be partially offset by an increase in the U.S. valuation allowance of $7.6 million) and a credit to additional paid-in capital (APIC) of $1.2 million. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in favorable or unfavorable changes in our estimates. We anticipate the settlement of tax audits may be finalized within the next twelve months and could result in a decrease in our unrecognized tax benefits of up to $2 million. | ||||||||||||
In the normal course of business, PTC and its subsidiaries are examined by various taxing authorities, including the IRS in the United States. As of September 30, 2014, we remained subject to examination in the following major tax jurisdictions for the tax years indicated: | ||||||||||||
Major Tax Jurisdiction | Open Years | |||||||||||
United States | 2011 through 2014 | |||||||||||
Germany | 2011 through 2014 | |||||||||||
France | 2013 through 2014 | |||||||||||
Japan | 2009 through 2014 | |||||||||||
Ireland | 2010 through 2014 | |||||||||||
We incurred expenses related to stock-based compensation in 2014, 2013 and 2012 of $50.9 million, $48.8 million and $51.3 million, respectively. Accounting for the tax effects of stock-based awards requires that we establish a deferred tax asset as the compensation is recognized for financial reporting prior to recognizing the tax deductions. The tax benefit recognized in the consolidated statement of operations related to stock-based compensation totaled $0.7 million, $2.7 million and $3.9 million in 2014, 2013 and 2012, respectively. Upon the settlement of the stock-based awards (i.e., exercise, vesting, forfeiture or cancellation), the actual tax deduction is compared with the cumulative financial reporting compensation cost and any excess tax deduction is considered a windfall tax benefit and is tracked in a “windfall tax benefit pool” to offset any future tax deduction shortfalls and will be recorded as increases to APIC in the period when the tax deduction reduces income taxes payable. In 2014, 2013 and 2012, we recorded windfall tax benefits of $10.4 million, $0.3 million and $1.1 million to APIC, respectively. We follow the with-and-without approach for the direct effects of windfall tax deductions to determine the timing of the recognition of benefits for windfall tax deductions. We follow the direct method for indirect effects. As of September 30, 2014, the tax effect of windfall tax deductions which had not yet reduced taxes payable was $21 million. | ||||||||||||
We have not provided for U.S. income taxes or foreign withholding taxes on foreign unrepatriated earnings as it is our current intention to permanently reinvest these earnings outside the U.S. unless it can be done with no significant tax cost. If we decide to change this assertion in the future to repatriate any additional non-U.S. earnings, we may be required to establish a deferred tax liability on such earnings. The cumulative amount of undistributed earnings of our subsidiaries for which U.S. income taxes have not been provided totaled approximately $642 million and $378 million as of September 30, 2014 and 2013, respectively. The amount of unrecognized deferred tax liability on the undistributed earnings cannot be practicably determined at this time. |
Long_Term_Debt
Long Term Debt | 12 Months Ended | |
Sep. 30, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Debt Disclosure [Text Block] | ' | |
Debt | ||
Credit Agreement | ||
In September 2014, we entered into a multi-currency credit facility with a syndicate of sixteen banks for which JPMorgan Chase Bank, N.A. acts as Administrative Agent. The credit facility replaced a credit facility with the same banks entered into in January 2014. We expect to use the credit facility for general corporate purposes, including acquisitions of businesses, share repurchases and working capital requirements. As of September 30, 2014, the fair value of our credit facility approximates our book value. | ||
The credit facility consists of a $500 million term loan and a $1 billion revolving loan commitment, and may be increased by an additional $250 million (in the form of revolving loans or term loans, or a combination thereof) if the existing or additional lenders are willing to make such increased commitments. The revolving loan commitment does not require amortization of principal. The term loan requires prepayment of principal at the end of each calendar quarter. The revolving loan and term loan may be repaid in whole or in part prior to the scheduled maturity dates at our option without penalty or premium. The credit facility matures on September 15, 2019, when all remaining amounts outstanding will be due and payable in full. We are required to make principal payments under the term loan of $25 million, $50 million, $50 million, $75 million and $300 million in 2015, 2016, 2017, 2018 and 2019, respectively. | ||
PTC is the sole borrower under the credit facility. The obligations under the credit facility are guaranteed by PTC’s material domestic subsidiaries and 65% of the voting equity interests of PTC’s material first-tier foreign subsidiaries are pledged as collateral for the obligations. | ||
As of September 30, 2014, we had $611.9 million outstanding under the credit facility comprised of the $500 million term loan and a $111.9 million revolving loan. Loans under the credit facility bear interest at variable rates which reset every 30 to 180 days depending on the rate and period selected by PTC as described below. As of September 30, 2014, the annual rate on the term and revolving loan loan was 1.625% (which will reset on December 17, 2014). Interest rates on borrowings outstanding under the credit facility range from 1.25% to 1.5% above an adjusted LIBO rate for Eurodollar-based borrowings or would range from 0.25% to 0.5% above the defined base rate (the greater of the Prime Rate, the Federal Funds Effective Rate plus 0.005%, or an adjusted LIBO rate plus 1%) for base rate borrowings, in each case based upon PTC’s leverage ratio. Additionally, PTC may borrow certain foreign currencies at rates set in the same range above the respective London interbank offered interest rates for those currencies, based on PTC’s leverage ratio. A quarterly commitment fee on the undrawn portion of the credit facility is required, ranging from 0.175% to 0.25% per annum, based upon PTC’s leverage ratio. | ||
The credit facility limits PTC’s and its subsidiaries’ ability to, among other things: incur additional indebtedness; incur liens or guarantee obligations; pay dividends (other than to PTC) and make other distributions; make investments and enter into joint ventures; dispose of assets; and engage in transactions with affiliates, except on an arms-length basis. Under the credit facility, PTC and its material domestic subsidiaries may not invest cash or property in, or loan to, PTC’s foreign subsidiaries in aggregate amounts exceeding $75 million for any purpose and an additional $150 million for acquisitions of businesses. In addition, under the credit facility, PTC and its subsidiaries must maintain the following financial ratios: | ||
• | a leverage ratio, defined as consolidated funded indebtedness to consolidated trailing four quarters EBITDA, of no greater than 3.00 to 1.00 at any time; and | |
• | a fixed charge coverage ratio, defined as the ratio of consolidated trailing four quarters EBITDA less consolidated capital expenditures to consolidated fixed charges, of no less than 3.50 to 1.00 at any time. | |
As of September 30, 2014, our leverage ratio was 1.82 to 1.00, our fixed charge coverage ratio was 17.70 to 1.00 and we were in compliance with all financial and operating covenants of the credit facility. | ||
Any failure to comply with the financial or operating covenants of the credit facility would prevent PTC from being able to borrow additional funds, and would constitute a default, permitting the lenders to, among other things, accelerate the amounts outstanding, including all accrued interest and unpaid fees, under the credit facility and to terminate the credit facility. A change in control of PTC, as defined in the agreement, also constitutes an event of default, permitting the lenders to accelerate the indebtedness and terminate the credit facility. | ||
We incurred $7.9 million and $1.9 million of origination costs in 2014 and 2012, respectively, in connection with entering into and amending the new and previous credit facilities. These origination costs were recorded as deferred debt issuance costs when incurred and are being expensed over the remaining term of the new credit facility. | ||
In 2014, 2013 and 2012, we paid $5.7 million, $5.8 million and $3.7 million, respectively, of interest on the credit facilities. The average interest rate on borrowings outstanding during 2014, 2013 and 2012 was approximately 1.6%, 1.7% and 1.8%, respectively. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments And Contingencies | ' | |||
Commitments and Contingencies | ||||
Leasing Arrangements | ||||
We lease office facilities under operating leases expiring at various dates through 2023. Certain leases require us to pay for taxes, insurance, maintenance and other operating expenses in addition to rent. Lease expense was $38.6 million, $38.4 million and $37.8 million in 2014, 2013 and 2012, respectively. At September 30, 2014, our future minimum lease payments under noncancellable operating leases are as follows: | ||||
Year ending September 30, | (in thousands) | |||
2015 | $ | 40,233 | ||
2016 | 32,371 | |||
2017 | 23,974 | |||
2018 | 20,203 | |||
2019 | 16,594 | |||
Thereafter | 39,191 | |||
Total minimum lease payments | $ | 172,566 | ||
Amounts above include future minimum lease payments for our corporate headquarters facility located in Needham, Massachusetts. The lease for our headquarters facility was renewed in the first quarter of 2011 for an additional 10 years (through November 2022) with a ten year renewal option through November 2032. Under the terms of the lease, we are paying approximately $7.4 million in annual base rent plus operating expenses. The amended lease provides for $12.8 million in landlord funding for leasehold improvements which we completed in 2014. We capitalized these leasehold improvements and will amortize them to expense over the shorter of the lease term or their expected useful life. The $12.8 million of funding by the landlord is not included in the table above and reduces rent expense over the lease term. | ||||
As of September 30, 2014 and 2013, we had letters of credit and bank guarantees outstanding of $3.6 million (of which $0.9 million was collateralized) and $3.9 million (of which $1.0 million was collateralized), respectively, primarily related to our corporate headquarters lease. | ||||
Legal and Regulatory Matters | ||||
China Investigation | ||||
We have been cooperating to provide information to the U.S. Securities and Exchange Commission and the Department of Justice concerning payments and expenses by certain of our business partners in China and/or by employees of our Chinese subsidiary that raise questions concerning compliance with laws, including the U.S. Foreign Corrupt Practices Act. Our internal review is ongoing and we continue to respond to requests for information from these agencies, including a subpoena issued to the company by the SEC. We cannot predict when or how this matter may be resolved. Resolution of this matter could include fines and penalties; however we are unable to estimate an amount that could be associated with any resolution and, accordingly, we have not recorded a liability for this matter. If resolution of this matter includes substantial fines or penalties, this could materially impact our results for the period in which the associated liability is recorded or such amounts are paid. Further, any settlement or other resolution of this matter could have collateral effects on our business in China, the United States and elsewhere. | ||||
We terminated certain employees and business partners in China in connection with this matter, which may have an adverse impact on our level of sales in China. Revenue from China has historically represented 5% to 7% of our total revenue. | ||||
Other Legal Proceedings | ||||
We are subject to various legal proceedings and claims that arise in the ordinary course of business. We do not believe that resolving the legal proceedings and claims that we are currently subject to will have a material adverse impact on our financial condition, results of operations or cash flows. However, the results of legal proceedings cannot be predicted with certainty. Should any of these legal proceedings and claims be resolved against us, the operating results for a particular reporting period could be adversely affected. | ||||
Accruals | ||||
With respect to legal proceedings and claims, we record an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of September 30, 2014, we had a legal proceedings and claims accrual of $4.7 million. | ||||
Guarantees and Indemnification Obligations | ||||
We enter into standard indemnification agreements in the ordinary course of our business. Pursuant to such agreements with our business partners or customers, we indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to our products, as well as claims relating to property damage or personal injury resulting from the performance of services by us or our subcontractors. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited. Historically, our costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and we accordingly believe the estimated fair value of liabilities under these agreements is immaterial. | ||||
We warrant that our software products will perform in all material respects in accordance with our standard published specifications in effect at the time of delivery of the licensed products for a specified period of time. Additionally, we generally warrant that our consulting services will be performed consistent with generally accepted industry standards. In most cases, liability for these warranties is capped. If necessary, we would provide for the estimated cost of product and service warranties based on specific warranty claims and claim history; however, we have not incurred significant cost under our product or services warranties. As a result, we believe the estimated fair value of these liabilities is immaterial. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders’ Equity | |
Preferred Stock | |
We may issue up to 5.0 million shares of our preferred stock in one or more series. 0.5 million of these shares are designated as Series A Junior Participating Preferred Stock. Our Board of Directors is authorized to fix the rights and terms for any series of preferred stock without additional shareholder approval. | |
Common Stock | |
Our Articles of Organization authorize us to issue up to 500 million shares of our common stock. Our Board of Directors has periodically authorized the repurchase of shares of our common stock. We were authorized to repurchase up to $100 million worth of shares with cash from operations for each of our fiscal years 2014, 2013 and 2012. Additionally, on August 4, 2014, our Board of Directors authorized us to repurchase up to an additional $600 million of our common stock through September 30, 2017. We intend to use cash from operations and borrowings under our credit facility to make such repurchases. In connection with this expanded repurchase authorization, in the fourth quarter of 2014 we entered into the $125 million accelerated share repurchase agreement described below. We repurchased 5.1 million shares at a cost of $224.9 million in 2014 (including $37.5 million held by the bank pending final settlement of the ASR described below), 3.1 million shares at a cost of $74.9 million in 2013 and 1.6 million shares at a cost of $35.0 million in 2012. All shares of our common stock repurchased are automatically restored to the status of authorized and unissued. Future repurchases of shares will reduce our cash balances. | |
On August 14, 2014, we entered into an accelerated share repurchase (“ASR”) agreement with a major financial institution (“Bank”). The ASR allows us to buy a large number of shares immediately at a purchase price determined by an average market price over a period of time. Under the ASR, we agreed to purchase $125.0 million of our common stock, in total, with an initial delivery to us of 2,300,210 shares (“Initial Shares”) of our common stock by the Bank. The Initial Shares represent the number of shares at the current market price equal to 70% of the total fixed purchase price of $125.0 million. The repurchased shares were retired and returned to an unissued status. The par value of the repurchased shares of $23 thousand was deducted from common stock and the excess repurchase price over the par value of $87.5 million was deducted from additional paid-in capital. The remainder of the total purchase price of $37.5 million reflects the value of the stock held by the Bank pending final settlement and, accordingly, was recorded as a reduction to additional paid-in capital. Final settlement of the ASR will occur no later than February 17, 2015 at the Bank’s discretion. Upon settlement of the ASR, the total shares repurchased by us will be determined based on a share price equal to the daily volume weighted-average price (“VWAP”) of our common stock during the term of the ASR program, less a fixed per share discount amount. At settlement, the Bank will deliver additional shares to us in the event total shares are greater than the 2,300,210 shares initially delivered, and we will issue additional shares or cash to the Bank, at our option, in the event total shares are less than the shares initially delivered. The receipt or issuance of additional shares will result in a reclassification between additional paid-in capital and common stock equal to the par value of the additional shares received or issued. The number of shares that may be required to be issued by us under the ASR to the Bank is limited to the lesser of (i) 25 million shares and (ii) 20% of the total number of our shares outstanding. | |
We reflected the unsettled portion of the ASR ($37.5 million) as a forward contract indexed to our common stock. The forward contract met all of the applicable criteria for equity classification, and, therefore, was not accounted for as a derivative instrument. | |
As of September 30, 2014, based on the VWAP of our common stock for the period August 14, 2014 through September 30, 2014, settlement of the ASR would have resulted in 982,419 additional shares delivered by the Bank to us. |
Equity_Incentive_Plan
Equity Incentive Plan | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | |||||||||||
Equity Incentive Plan | ' | |||||||||||
Equity Incentive Plan | ||||||||||||
Our 2000 Equity Incentive Plan (2000 Plan) provides for grants of nonqualified and incentive stock options, common stock, restricted stock, restricted stock units and stock appreciation rights to employees, directors, officers and consultants. We award restricted stock units as the principal equity incentive awards, including certain performance-based awards that are earned based on achieving performance criteria established by the Compensation Committee of our Board of Directors on or prior to the grant date. Each restricted stock unit represents the contingent right to receive one share of our common stock. | ||||||||||||
The fair value of restricted shares and restricted stock units granted in 2014, 2013 and 2012 was based on the fair market value of our stock on the date of grant. The weighted average fair value per share of restricted shares and restricted stock units granted in 2014, 2013 and 2012 was $33.88, $22.87 and $20.16, respectively. Pre-vesting forfeiture rates for purposes of determining stock-based compensation for all periods presented were estimated by us to be 0% for directors and executive officers, 2% to 4% for vice president-level employees and 7% for all other employees. | ||||||||||||
The following table shows total stock-based compensation expense recorded from our stock-based awards as reflected in our consolidated statements of operations: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Cost of license revenue | $ | 17 | $ | 21 | $ | 22 | ||||||
Cost of service revenue | 6,648 | 6,134 | 5,682 | |||||||||
Cost of support revenue | 3,745 | 3,324 | 3,234 | |||||||||
Sales and marketing | 10,982 | 11,326 | 13,809 | |||||||||
Research and development | 10,119 | 8,590 | 8,761 | |||||||||
General and administrative | 19,378 | 19,392 | 19,797 | |||||||||
Total stock-based compensation expense | $ | 50,889 | $ | 48,787 | $ | 51,305 | ||||||
As of September 30, 2014, total unrecognized compensation cost related to unvested restricted stock units expected to vest was approximately $65 million and the weighted average remaining recognition period for unvested awards was 18 months. | ||||||||||||
As of September 30, 2014, 5.1 million shares of common stock were available for grant under the 2000 Plan and 4.4 million shares of common stock were reserved for issuance upon the exercise of stock options and vesting of restricted stock units granted and outstanding. | ||||||||||||
Shares | Weighted | Aggregate Intrinsic Value as of September 30, 2014 | ||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Restricted stock activity for the year ended September 30, 2014 | (in thousands except grant date fair value data) | |||||||||||
Balance of nonvested outstanding restricted stock October 1, 2013 | 5 | $ | 21.27 | |||||||||
Vested | (5 | ) | $ | 21.27 | ||||||||
Balance of nonvested outstanding restricted stock September 30, 2014 | — | $ | — | $ | — | |||||||
Shares | Weighted | Aggregate Intrinsic Value as of September 30, 2014 | ||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Restricted stock unit activity for the year ended September 30, 2014 | (in thousands except grant date fair value data) | |||||||||||
Balance of nonvested outstanding restricted stock units October 1, 2013 | 5,186 | $ | 21.67 | |||||||||
Granted | 1,943 | $ | 33.88 | |||||||||
Vested | (2,370 | ) | $ | 21.63 | ||||||||
Forfeited or not earned | (380 | ) | $ | 24.26 | ||||||||
Balance of nonvested outstanding restricted stock units September 30, 2014 | 4,379 | $ | 26.87 | $ | 161,595 | |||||||
Restricted Stock Units | ||||||||||||
Restricted stock unit grants | Performance-based (1) | Time-based (2) | ||||||||||
(Number of Units in thousands) | ||||||||||||
Year ended September 30, 2014 | 451 | 1,492 | ||||||||||
-1 | The performance-based RSUs were granted to employees, including our executive officers. Approximately 87,000 of these RSUs are eligible to vest in three substantially equal installments in November 2016, 2017 and 2018 based on achievement of the applicable performance criteria. Substantially all other performance-based RSUs are eligible to vest in three substantially equal installments in November 2014, 2015 and 2016 to the extent the applicable performance criteria have been achieved. RSUs not earned for a period may be earned in subsequent periods. | |||||||||||
-2 | The time-based RSUs were issued to directors and employees, including some of our executive officers. The time-based RSUs issued to employees and executives generally vest in three substantially equal annual installments from the date of grant. Substantially all of the time-based RSUs issued to our directors will vest one year from the date of grant. | |||||||||||
Until July 2005, we generally granted stock options. For those options, the option exercise price was typically the fair market value at the date of grant, and they generally vested over four years and expired ten years from the date of grant. Options outstanding and exercisable at September 30, 2014 totaled 9 thousand. | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Value of stock option and stock-based award activity | (in thousands) | |||||||||||
Total intrinsic value of stock options exercised | $ | 2,040 | $ | 6,525 | $ | 31,746 | ||||||
Total fair value of restricted stock and restricted stock unit awards vested | $ | 79,660 | $ | 48,083 | $ | 65,574 | ||||||
In 2014, shares issued upon vesting of restricted stock units were net of 0.8 million shares retained by us to cover employee tax withholdings of $26.9 million. In 2013, shares issued upon vesting of restricted stock units were net of 0.7 million shares retained by us to cover employee tax withholdings of $15.0 million. In 2012, shares issued upon vesting of restricted stock and restricted stock units were net of 0.9 million shares retained by us to cover employee tax withholdings of $21.0 million. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2013 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
Employee Benefit Plan | |
We offer a savings plan to eligible U.S. employees. The plan is intended to qualify under Section 401(k) of the Internal Revenue Code. Participating employees may defer a portion of their pre-tax compensation, as defined, but not more than statutory limits. We contribute 50% of the amount contributed by the employee, up to a maximum of 6% of the employee’s earnings. Our matching contributions vest at a rate of 25% per year of service, with full vesting after 4 years of service. We made matching contributions of $5.1 million, $5.0 million, and $4.9 million in 2014, 2013 and 2012, respectively. |
Pension_Plans
Pension Plans | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||
Pension Plans | ' | |||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||
We maintain several international defined benefit pension plans primarily covering certain employees of Computervision, which we acquired in 1998, CoCreate, which we acquired in 2008 and covering employees in Japan. Benefits are based upon length of service and average compensation with vesting after one to five years of service. The pension cost was actuarially computed using assumptions applicable to each subsidiary plan and economic environment. We adjust our pension liability related to our plans due to changes in actuarial assumptions and performance of plan investments, as shown below. Effective in 1998, benefits under one of the international plans were frozen indefinitely. | ||||||||||||||||||||||||
We maintain a U.S. defined benefit pension plan (the Plan) that covers certain persons who were employees of Computervision Corporation (acquired by us in 1998). Benefits under the Plan were frozen in 1990. In the second quarter of 2014, we began the process of terminating the Plan, which will include settling Plan liabilities by offering lump sum distributions to plan participants and purchasing annuity contracts to cover vested benefits. While we expect to complete the termination process by September 30, 2015, the timing is subject to regulatory approvals. As part of the planned termination, in 2014 we re-balanced assets to a target asset allocation of 100% fixed income investments (up from 40%), which will provide a better matching of Plan assets to the characteristics of the liabilities. In the third quarter of 2014, we provided notice to plan participants of our intent to terminate the plan effective August 1, 2014 and we applied for a determination with the Internal Revenue Service with regards to the termination. We will take further actions to minimize the volatility of the value of our pension assets relative to pension liabilities and to settle remaining Plan liabilities, including making such contributions to the Plan as may be necessary to make the Plan sufficient to settle all Plan liabilities. | ||||||||||||||||||||||||
As of September 30, 2014, we have valued the projected benefit obligations of the Plan based on the present value of estimated costs to settle the liabilities through a combination of lump sum payments to participants and purchasing annuities from an insurance company. This reflects an estimate of how many participants we expect will accept a lump sum offering, and an estimate of lump sum payouts for those participants based on the current lump sum rates approved by the IRS. Liabilities expected to be settled through annuity contracts have been estimated based on future benefit payments, discounted based on current interest rates that correspond to the liability payouts, adjusted to reflect a premium that would be assessed by the insurer. | ||||||||||||||||||||||||
We expect to settle the liabilities by the end of fiscal 2015. As the liabilities are settled, unamortized losses in accumulated other comprehensive income, $68 million at September 30, 2014, will be recognized based on the projected benefit obligations and assets measured as of the dates the settlements occur. Prior to settling the liabilities, we will contribute such additional amounts (currently estimated to be approximately $25 million) as may be necessary to fully fund the Plan. Such contributions are expected to be made concurrent with settling the liabilities but may be made earlier at our discretion. | ||||||||||||||||||||||||
The following table presents the actuarial assumptions used in accounting for the pension plans: | ||||||||||||||||||||||||
U.S. Plan | International Plans | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date: | ||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.9 | % | 4 | % | 2.4 | % | 3.3 | % | 3.4 | % | ||||||||||||
Rate of increase in future compensation (1) | — | % | — | % | — | % | 3 | % | 3 | % | 3 | % | ||||||||||||
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: | ||||||||||||||||||||||||
Discount rate | 4.9 | % | 4 | % | 4.5 | % | 3.3 | % | 3.4 | % | 4.8 | % | ||||||||||||
Rate of increase in future compensation | — | % | — | % | — | % | 3 | % | 3 | % | 3 | % | ||||||||||||
Rate of return on plan assets | 7.25 | % | 7.25 | % | 7.25 | % | 5.7 | % | 5.4 | % | 5.4 | % | ||||||||||||
-1 | The rate of increase in future compensation is weighted for all plans, ongoing and frozen (with a 0% increase for frozen plans). The weighted rate of increase for ongoing non-U.S. plans was 3% at September 30, 2014 and 2013. | |||||||||||||||||||||||
In selecting the expected long-term rate of return on assets, we considered the current investment portfolio and the investment return goals in the plans’ investment policy statements. We, with input from the plans’ professional investment managers and actuaries, also considered the average rate of earnings expected on the funds invested or to be invested to provide plan benefits. This process included determining expected returns for the various asset classes that comprise the plans’ target asset allocation. This basis for selecting the long-term asset return assumptions is consistent with the prior year. Using generally accepted diversification techniques, the plans’ assets, in aggregate and at the individual portfolio level, are invested so that the total portfolio risk exposure and risk-adjusted returns best meet the plans’ long-term liabilities to employees. Plan asset allocations are reviewed periodically and rebalanced to achieve target allocation among the asset categories when necessary. | ||||||||||||||||||||||||
As of September 30, 2014, for the U.S. plan and the international plans, the weighted long-term rate of return assumption is 1.35% and 5.75%, respectively. These rates of return, together with the assumptions used to determine the benefit obligations as of September 30, 2014 in the table above, will be used to determine our 2015 net periodic pension cost, which we expect to be approximately $8 million. | ||||||||||||||||||||||||
The actuarially computed components of net periodic pension cost recognized in our consolidated statements of operations for each year are shown below: | ||||||||||||||||||||||||
U.S. Plan | International Plans | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Interest cost of projected benefit obligation | $ | 5,461 | $ | 4,989 | $ | 5,490 | $ | 2,442 | $ | 2,384 | $ | 2,554 | ||||||||||||
Service cost | — | — | — | 1,659 | 2,017 | 1,882 | ||||||||||||||||||
Expected return on plan assets | (7,151 | ) | (6,128 | ) | (5,412 | ) | (2,506 | ) | (2,126 | ) | (1,929 | ) | ||||||||||||
Amortization of prior service cost | — | — | — | (5 | ) | (6 | ) | (7 | ) | |||||||||||||||
Recognized actuarial loss | 2,213 | 3,152 | 2,967 | 1,181 | 1,248 | 341 | ||||||||||||||||||
Net periodic pension cost | $ | 523 | $ | 2,013 | $ | 3,045 | $ | 2,771 | $ | 3,517 | $ | 2,841 | ||||||||||||
The following tables display the change in benefit obligation and the change in the plan assets and funded status of the plans as well as the amounts recognized in our consolidated balance sheets: | ||||||||||||||||||||||||
U.S. Plan | International Plans | Total | ||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Projected benefit obligation—beginning of year | $ | 113,378 | $ | 129,701 | $ | 74,956 | $ | 71,408 | $ | 188,334 | $ | 201,109 | ||||||||||||
Service cost | — | — | 1,659 | 2,017 | 1,659 | 2,017 | ||||||||||||||||||
Interest cost | 5,461 | 4,989 | 2,442 | 2,384 | 7,903 | 7,373 | ||||||||||||||||||
Actuarial (gain) loss | 20,563 | (12,728 | ) | 12,732 | 1,426 | 33,295 | (11,302 | ) | ||||||||||||||||
Foreign exchange impact | — | — | (6,480 | ) | 629 | (6,480 | ) | 629 | ||||||||||||||||
Participant contributions | — | — | 325 | 432 | 325 | 432 | ||||||||||||||||||
Benefits paid | (4,949 | ) | (8,584 | ) | (1,528 | ) | (1,732 | ) | (6,477 | ) | (10,316 | ) | ||||||||||||
Plan curtailments | — | — | — | (1,608 | ) | — | (1,608 | ) | ||||||||||||||||
Projected benefit obligation—end of year | $ | 134,453 | $ | 113,378 | $ | 84,106 | $ | 74,956 | $ | 218,559 | $ | 188,334 | ||||||||||||
Change in plan assets and funded status: | ||||||||||||||||||||||||
Plan assets at fair value—beginning of year | $ | 94,831 | $ | 86,016 | $ | 43,362 | $ | 38,817 | $ | 138,193 | $ | 124,833 | ||||||||||||
Actual return on plan assets | 12,425 | 10,438 | 3,489 | 3,172 | 15,914 | 13,610 | ||||||||||||||||||
Employer contributions | 10,552 | 6,961 | 2,353 | 3,008 | 12,905 | 9,969 | ||||||||||||||||||
Participant contributions | — | — | 325 | 432 | 325 | 432 | ||||||||||||||||||
Foreign exchange impact | — | — | (3,510 | ) | (335 | ) | (3,510 | ) | (335 | ) | ||||||||||||||
Benefits paid | (4,949 | ) | (8,584 | ) | (1,528 | ) | (1,732 | ) | (6,477 | ) | (10,316 | ) | ||||||||||||
Plan assets at fair value—end of year | 112,859 | 94,831 | 44,491 | 43,362 | 157,350 | 138,193 | ||||||||||||||||||
Projected benefit obligation—end of year | 134,453 | 113,378 | 84,106 | 74,956 | 218,559 | 188,334 | ||||||||||||||||||
Underfunded status | $ | (21,594 | ) | $ | (18,547 | ) | $ | (39,615 | ) | $ | (31,594 | ) | $ | (61,209 | ) | $ | (50,141 | ) | ||||||
Accumulated benefit obligation—end of year | $ | 134,453 | $ | 113,378 | $ | 80,364 | $ | 71,513 | $ | 214,817 | $ | 184,891 | ||||||||||||
Amounts recognized in the balance sheet: | ||||||||||||||||||||||||
Non-current liability | $ | — | $ | (18,547 | ) | $ | (39,615 | ) | $ | (31,594 | ) | $ | (39,615 | ) | $ | (50,141 | ) | |||||||
Current liability | $ | (21,594 | ) | $ | — | $ | — | $ | — | $ | (21,594 | ) | $ | — | ||||||||||
Amounts in accumulated other comprehensive loss: | ||||||||||||||||||||||||
Unrecognized actuarial loss | $ | 68,256 | $ | 55,180 | $ | 27,669 | $ | 19,177 | $ | 95,925 | $ | 74,357 | ||||||||||||
In 2013, we terminated employees in Germany resulting in plan curtailments and a reduction in projected benefit obligations totaling $1.6 million. | ||||||||||||||||||||||||
We expect to recognize approximately $5 million of the unrecognized actuarial loss as of September 30, 2014 as a component of net periodic pension cost in 2015. | ||||||||||||||||||||||||
The following table shows the percentage of total plan assets for each major category of plan assets: | ||||||||||||||||||||||||
U.S. Plan | International Plans | |||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Asset category: | ||||||||||||||||||||||||
Equity securities | — | % | 62 | % | 51 | % | 51 | % | ||||||||||||||||
Fixed income securities | 100 | % | 38 | % | 28 | % | 27 | % | ||||||||||||||||
Insurance company | — | % | — | % | 19 | % | 19 | % | ||||||||||||||||
Cash | — | % | — | % | 2 | % | 3 | % | ||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
We periodically review the pension plans’ investments in the various asset classes. The current asset allocation target is 100% fixed income securities for the U.S. plan and 60% equity securities and 40% fixed income securities for the CoCreate plan in Germany, and 100% fixed income securities for the other international plans. The fixed income securities for the other international plans primarily include investments held with insurance companies with fixed returns. The plans’ investment managers are provided specific guidelines under which they are to invest the assets assigned to them. In general, investment managers are expected to remain fully invested in their asset class with further limitations on risk as related to investments in a single security, portfolio turnover and credit quality. | ||||||||||||||||||||||||
The U.S. plan and the German CoCreate plan investment policies prohibit the use of derivatives associated with leverage and speculation or investments in securities issued by PTC, except through index-related strategies and/or commingled funds. An investment committee oversees management of the pension plans’ assets. Plan assets consist primarily of investments in mutual funds invested in equity and fixed income securities. | ||||||||||||||||||||||||
In 2014, 2013 and 2012 our actual return on plan assets was $15.9 million, $13.6 million and $16.5 million, respectively. | ||||||||||||||||||||||||
Based on actuarial valuations and additional voluntary contributions, we contributed $12.9 million, $10.0 million, and $7.7 million in 2014, 2013 and 2012, respectively, to the plans. We expect to make contributions totaling approximately $45 million in 2015, including an estimated amount required to settle the U.S pension obligations and expected voluntary contributions to a non-U.S. plan. | ||||||||||||||||||||||||
As of September 30, 2014, benefit payments expected to be paid over the next ten years are outlined in the following table: | ||||||||||||||||||||||||
U.S. Plan | International | Total | ||||||||||||||||||||||
Plans | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Year ending September 30, | ||||||||||||||||||||||||
2015 | $ | 134,453 | $ | 2,033 | $ | 136,486 | ||||||||||||||||||
2016 | — | 2,040 | 2,040 | |||||||||||||||||||||
2017 | — | 2,139 | 2,139 | |||||||||||||||||||||
2018 | — | 2,558 | 2,558 | |||||||||||||||||||||
2019 | — | 2,837 | 2,837 | |||||||||||||||||||||
2020 to 2024 | — | 21,557 | 21,557 | |||||||||||||||||||||
Fair Value of Plan Assets | ||||||||||||||||||||||||
The U.S. Plan assets are comprised primarily of investments in common/collective trusts. Common/collective trusts are valued at the net asset value of shares held as reported by the trustee. The underlying investments in the common/collective trusts are publicly traded U.S. treasury securities and other fixed-income securities. Although the net asset values of the common/collective funds are determined by observable prices of the underlying securities, they are classified as Level 2 because the units of the common/collective trusts do not trade in open public markets. The fair value of the underlying investments in common/collective fixed income securities are based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers and relevant credit information. | ||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. plan assets-common/collective trusts: | ||||||||||||||||||||||||
Cash | $ | — | $ | 270 | $ | — | $ | 270 | ||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||
U.S. Treasury, agency and other local government and non-corporate | — | 25,025 | — | 25,025 | ||||||||||||||||||||
Corporate investment grade | — | 87,538 | — | 87,538 | ||||||||||||||||||||
Corporate high yield | — | 26 | — | 26 | ||||||||||||||||||||
$ | — | $ | 112,859 | $ | — | $ | 112,859 | |||||||||||||||||
The International Plan assets are comprised primarily of investments in a trust and an insurance company. The underlying investments in the trust are primarily publicly traded European DJ EuroStoxx50 equities and European governmental fixed income securities. They are classified as Level 1 because the underlying units of the trust are traded in open public markets. The fair value of the underlying investments in equity securities and fixed income are based upon publicly-traded exchange prices. | ||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
International plan assets: | ||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||
Government | $ | 4,910 | $ | — | $ | — | $ | 4,910 | ||||||||||||||||
Europe corporate investment grade | 7,769 | — | — | 7,769 | ||||||||||||||||||||
Europe large capitalization stocks | 22,746 | — | — | 22,746 | ||||||||||||||||||||
Insurance company funds (1) | — | 8,235 | — | 8,235 | ||||||||||||||||||||
Cash | 831 | — | — | 831 | ||||||||||||||||||||
$ | 36,256 | $ | 8,235 | $ | — | $ | 44,491 | |||||||||||||||||
(1) These investments are comprised primarily of funds invested with an insurance company in Japan with a guaranteed rate of return. The insurance company invests these assets primarily in government and corporate bonds. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Information | ' | |||||||||||
Segment 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 and related support revenue (including updates and technical support) for all our products except computer-based training products; and (2) Services, which includes consulting, implementation, training, cloud services, and license and support revenue for computer-based training products. We do not allocate sales and marketing or administrative expenses to our operating segments as these activities are managed on a consolidated basis. | ||||||||||||
The revenue and operating income attributable to these operating segments are summarized as follows: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Software Products segment revenue | $ | 1,032,230 | $ | 977,523 | $ | 935,472 | ||||||
Services segment revenue | 324,737 | 316,018 | 320,207 | |||||||||
Total revenue | $ | 1,356,967 | $ | 1,293,541 | $ | 1,255,679 | ||||||
Operating income: (1) (2) | ||||||||||||
Software Products segment | $ | 663,593 | $ | 605,963 | $ | 598,344 | ||||||
Services segment | 48,378 | 37,131 | 41,793 | |||||||||
Sales and marketing expenses | (371,392 | ) | (378,771 | ) | (392,956 | ) | ||||||
General and administrative expenses | (144,003 | ) | (136,999 | ) | (119,085 | ) | ||||||
Total operating income | $ | 196,576 | $ | 127,324 | $ | 128,096 | ||||||
Other (expense) income, net | (10,464 | ) | (1,090 | ) | (7,360 | ) | ||||||
Income before income taxes | $ | 186,112 | $ | 126,234 | $ | 120,736 | ||||||
-1 | We recorded restructuring charges of $28.4 million in 2014. Software Products included $2.8 million; Services included $9.8 million; sales and marketing expenses included $13.9 million; and general and administrative expenses included $1.8 million of the total restructuring charges recorded in 2014.We recorded restructuring charges of $52.2 million in 2013. Software Products included $17.7 million; Services included $11.3 million; sales and marketing expenses included $18.1 million; and general and administrative expenses included $5.1 million of the total restructuring charges recorded in 2013. We recorded restructuring charges of $24.9 million in 2012. Software Products included $4.1 million; Services included $4.0 million; sales and marketing expenses included $15.2 million; and general and administrative expenses included $1.6 million of the total restructuring charges recorded in 2012. | |||||||||||
-2 | The Software Products segment operating income includes depreciation and amortization of $30.0 million, $32.0 million, and $30.8 million in 2014, 2013, and 2012, respectively. The Services segment operating income includes depreciation and amortization of $7.4 million, $6.1 million, and $4.8 million in 2014, 2013, and 2012, respectively. | |||||||||||
We report revenue by the following three product areas: | ||||||||||||
• | CAD: PTC Creo® and PTC Mathcad®. | |||||||||||
• | EPLM: PLM solutions (primarily PTC Windchill® and PTC Creo® ViewTM ) and ALM solutions (primarily PTC Integrity™). | |||||||||||
• | SLM & IoT: PTC Arbortext® , PTC Servigistics®, ThingWorx® and Axeda®. | |||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
CAD | $ | 581,508 | $ | 552,442 | $ | 573,457 | ||||||
EPLM | 599,312 | 571,058 | 604,339 | |||||||||
SLM & IoT | 176,147 | 170,041 | 77,883 | |||||||||
Total revenue | $ | 1,356,967 | $ | 1,293,541 | $ | 1,255,679 | ||||||
Data for the geographic regions in which we operate is presented below. | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Revenue: | ||||||||||||
Americas (1) | $ | 558,671 | $ | 522,788 | $ | 479,932 | ||||||
Europe (2) | 528,090 | 479,877 | 480,287 | |||||||||
Pacific Rim | 148,151 | 161,587 | 160,834 | |||||||||
Japan | 122,055 | 129,289 | 134,626 | |||||||||
Total revenue | $ | 1,356,967 | $ | 1,293,541 | $ | 1,255,679 | ||||||
September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Long-lived tangible assets: | ||||||||||||
Americas (3) | $ | 51,027 | $ | 49,788 | $ | 46,083 | ||||||
Europe | 7,020 | 5,557 | 6,649 | |||||||||
Asia-Pacific | 9,736 | 9,307 | 10,734 | |||||||||
Total long-lived tangible assets | $ | 67,783 | $ | 64,652 | $ | 63,466 | ||||||
-1 | Includes revenue in the United States totaling $518.7 million, $485.2 million and $453.2 million for 2014, 2013 and 2012, respectively. | |||||||||||
-2 | Includes revenue in Germany totaling $200.3 million, $167.2 million and $188.3 million for 2014, 2013 and 2012, respectively. | |||||||||||
-3 | Substantially all of the Americas long-lived tangible assets are located in the United States. | |||||||||||
Our international revenue is presented based on the location of our customer. We license products to customers worldwide. Our sales and marketing operations outside the United States are conducted principally through our international sales subsidiaries throughout Europe and the Asia-Pacific regions. Intercompany sales and transfers between geographic areas are accounted for at prices that are designed to be representative of unaffiliated party transactions. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Subsequent Events [Abstract] | ' | |||||||
Subsequent Events | ' | |||||||
Subsequent Events | ||||||||
Restricted Stock Unit Grants | ||||||||
In November 2014, we granted the restricted stock units shown in the table below to employees, including some of our executive officers. The performance-based RSUs are eligible to vest based upon our total shareholder return relative to a peer group target (the “TSR units”), measured annually over a three-year period that commenced October 1, 2014. To the extent earned, these TSR units will vest in three substantially equal installments on the later of November 15, 2015, November 15, 2016 and November 15, 2017, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. RSUs not earned for a period may be earned in subsequent periods. The number of TSR units that will vest will be based on the level of achievement up to a maximum of 522 thousand, with no vesting if the annual threshold requirement is not achieved, or the employee is no longer with the Company at the end of the relevant performance period. | ||||||||
The time-based RSUs were issued to employees, including some of our executive officers. Of these, 757 thousand will vest in three substantially equal annual installments on November 15, 2015, 2016 and 2017 and 109 thousand will vest on November 15, 2015. | ||||||||
Performance-Based RSUs | Time-Based RSUs | |||||||
(in thousands) | ||||||||
Number Granted | 522 | 866 | ||||||
Intrinsic value on grant date based on the maximum number of RSU's eligible to vest | $ | 19,344 | $ | 32,182 | ||||
Credit Facility | ||||||||
On November 17, 2014, we borrowed an additional $35 million under our credit facility for short-term cash requirements, including the payment of fiscal 2014 incentive compensation. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Foreign Currency Translation | ' | |||||||||||||||
Foreign Currency Translation | ||||||||||||||||
For our non-U.S. operations where the functional currency is the local currency, we translate assets and liabilities at exchange rates in effect at the balance sheet date and record translation adjustments in stockholders’ equity. For our non-U.S. operations where the U.S. dollar is the functional currency, we remeasure monetary assets and liabilities using exchange rates in effect at the balance sheet date and nonmonetary assets and liabilities at historical rates and record resulting exchange gains or losses in foreign currency net losses in the consolidated statement of operations. We translate income statement amounts at average rates for the period. Transaction gains and losses are recorded in foreign currency net losses in the consolidated statements of operations. | ||||||||||||||||
Revenue Recognition | ' | |||||||||||||||
Revenue Recognition | ||||||||||||||||
We derive revenues from three primary sources: (1) software licenses, (2) services, and (3) support. We exercise judgment and use estimates in connection with determining the amounts of software license and services revenues to be recognized in each accounting period. We recognize revenue when: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred (generally, FOB shipping point or electronic distribution), (3) the fee is fixed or determinable, and (4) collection is probable. | ||||||||||||||||
Our software is distributed primarily through our direct sales force. In addition, we have an indirect distribution channel through alliances with resellers. Revenue arrangements with resellers are recognized on a sell-through basis; that is, when we deliver the product to the end-user customer. We record consideration given to a reseller as a reduction of revenue to the extent we have recorded revenue from the reseller. We do not offer contractual rights of return, stock balancing, or price protection to our resellers, and actual product returns from them have been insignificant to date. As a result, we do not maintain reserves for reseller product returns. | ||||||||||||||||
At the time of each sale transaction, we must make an assessment of the collectability of the amount due from the customer. Revenue is only recognized at that time if management deems that collection is probable. In making this assessment, we consider customer credit-worthiness and historical payment experience. At that same time, we assess whether fees are fixed or determinable and free of contingencies or significant uncertainties. In assessing whether the fee is fixed or determinable, we consider the payment terms of the transaction, including transactions with payment terms that extend beyond our customary payment terms, and our collection experience in similar transactions without making concessions, among other factors. We have periodically provided financing to credit-worthy customers with payment terms up to 24 months. If the fee is determined not to be fixed or determinable, revenue is recognized only as payments become due from the customer, provided that all other revenue recognition criteria are met. Our software license arrangements generally do not include customer acceptance provisions. However, if an arrangement includes an acceptance provision, we record revenue only upon the earlier of (1) receipt of written acceptance from the customer or (2) expiration of the acceptance period. | ||||||||||||||||
Our software arrangements often include implementation and consulting services that are sold under consulting engagement contracts or as part of the software license arrangement. When we determine that such services are not essential to the functionality of the licensed software, we record revenue separately for the license and service elements of these arrangements, provided that appropriate evidence of fair value exists for the undelivered services (see discussion below). Generally, we consider that a service is not essential to the functionality of the software based on various factors, including if the services may be provided by independent third parties experienced in providing such consulting and implementation in coordination with dedicated customer personnel and whether the services result in significant modification or customization of the software functionality. When consulting services qualify for separate accounting, consulting revenues under time and materials billing arrangements are recognized as the services are performed. Consulting revenues under fixed-priced contracts are generally recognized as the services are performed using a proportionate performance model with hours or costs as the input method of attribution. When we provide consulting services considered essential to the functionality of the software, the arrangement does not qualify for separate accounting of the license and service elements, and the license revenue is recognized together with the consulting services using the percentage-of-completion method of contract accounting. Under such arrangements, consideration is recognized as the services are performed as measured by an observable input. In these circumstances, we separate license revenue from service revenue for income statement presentation by allocating vendor specific objective evidence (VSOE) of fair value of the consulting services as service revenue and the residual portion as license revenue. Under the percentage-of-completion method, we estimate the stage of completion of contracts with fixed or “not to exceed” fees based on hours or costs incurred to date as compared with estimated total project hours or costs at completion. Adjustments to estimates to complete are made in the periods in which facts resulting in a change become known. When total cost estimates exceed revenues, we accrue for the estimated losses when identified. The use of the proportionate performance and percentage-of-completion methods of accounting require significant judgment relative to estimating total contract costs or hours (hours being a proxy for costs), including assumptions relative to the length of time to complete the project, the nature and complexity of the work to be performed and anticipated changes in salaries and other costs. | ||||||||||||||||
We generally use the residual method to recognize revenue from software arrangements that include one or more elements to be delivered at a future date when evidence of the fair value of all undelivered elements exists, and the elements of the arrangement qualify for separate accounting as described above. Under the residual method, the fair value of the undelivered elements (i.e., support and services) based on VSOE is deferred and the remaining portion of the total arrangement fee is allocated to the delivered elements (i.e., software license). If evidence of the fair value of one or more of the undelivered elements does not exist, all revenues are deferred and recognized when delivery of all of those elements has occurred or when fair values can be established. We determine VSOE of the fair value of services and support revenue based upon our recent pricing for those elements when sold separately. For certain transactions, VSOE of the fair value of support revenue is determined based on a substantive support renewal clause within a customer contract. Our current pricing practices are influenced primarily by product type, purchase volume, sales channel and customer location. We review services and support sold separately on a periodic basis and update, when appropriate, our VSOE of fair value for such services to ensure that it reflects our recent pricing experience. | ||||||||||||||||
Generally, our contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. | ||||||||||||||||
For subscription-based licenses, license revenue is recognized ratably over the term of the arrangement. In limited circumstances, where the right to use the software license is contingent upon current payments of support, fees for software license and support are recognized ratably over the initial support term. | ||||||||||||||||
Support contracts generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates and bug fixes. Support revenue is recognized ratably over the term of the support contract on a straight-line basis. | ||||||||||||||||
Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in services revenue, with the offsetting expense recorded in cost of service revenue. | ||||||||||||||||
Training services include on-site and classroom training. Training revenues are recognized as the related training services are provided. | ||||||||||||||||
Deferred Revenue | ' | |||||||||||||||
Deferred Revenue | ||||||||||||||||
Deferred revenue primarily relates to software support agreements billed to customers for which the services have not yet been provided. The liability associated with performing these services is included in deferred revenue and, if not yet paid, the related amount is included in other current assets. Billed but uncollected support-related amounts included in other current assets at September 30, 2014 and 2013 were $116.2 million and $108.6 million, respectively. Deferred revenue consisted of the following: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Deferred support revenue | $ | 335,827 | $ | 312,721 | ||||||||||||
Deferred service revenue | 19,775 | 18,793 | ||||||||||||||
Deferred license revenue | 26,942 | 5,399 | ||||||||||||||
Total deferred revenue | $ | 382,544 | $ | 336,913 | ||||||||||||
Cash, Cash Equivalents | ' | |||||||||||||||
Cash, Cash Equivalents | ||||||||||||||||
Our cash equivalents are invested in money market accounts and time deposits of financial institutions. We have established guidelines relative to credit ratings, diversification and maturities that are intended to maintain safety and liquidity. Cash equivalents include highly liquid investments with maturity periods of three months or less when purchased. | ||||||||||||||||
Concentration Of Credit Risk And Fair Value Of Financial Instruments | ' | |||||||||||||||
Concentration of Credit Risk and Fair Value of Financial Instruments | ||||||||||||||||
The amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short maturities. Financial instruments that potentially subject us to concentration of credit risk consist primarily of investments, trade accounts receivable and foreign currency derivative instruments. Our cash, cash equivalents, and foreign currency derivatives are placed with financial institutions with high credit standings. Our credit risk for derivatives is also mitigated due to the short-term nature of the contracts. Our customer base consists of large numbers of geographically diverse customers dispersed across many industries, and no individual customer comprised more than 10% of our trade accounts receivable as of September 30, 2014 or 2013. | ||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. Accounting standards prescribe a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs that may be used to measure fair value: | ||||||||||||||||
• | Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; | |||||||||||||||
• | Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or | |||||||||||||||
• | Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||
Our significant financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and 2013 were as follows: | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash equivalents (1) | $ | 101,113 | $ | — | $ | — | $ | 101,113 | ||||||||
Forward contracts | — | 339 | — | 339 | ||||||||||||
$ | 101,113 | $ | 339 | $ | — | $ | 101,452 | |||||||||
Financial liabilities: | ||||||||||||||||
Contingent consideration related to ThingWorx acquisition | $ | — | $ | — | $ | 15,191 | $ | 15,191 | ||||||||
Forward contracts | — | 911 | — | 911 | ||||||||||||
$ | — | $ | 911 | $ | 15,191 | $ | 16,102 | |||||||||
September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash equivalents (1) | $ | 56,706 | $ | — | $ | — | $ | 56,706 | ||||||||
Forward contracts | — | 301 | — | $ | 301 | |||||||||||
$ | 56,706 | $ | 301 | $ | — | $ | 57,007 | |||||||||
Financial liabilities: | ||||||||||||||||
Forward contracts | — | 438 | — | $ | 438 | |||||||||||
$ | — | $ | 438 | $ | — | $ | 438 | |||||||||
Allowance For Doubtful Accounts | ' | |||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||
We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. In determining the adequacy of the allowance for doubtful accounts, management specifically analyzes individual accounts receivable, historical bad debts, customer concentrations, customer credit-worthiness, current economic conditions, and accounts receivable aging trends. Our allowance for doubtful accounts on trade accounts receivable was $1.6 million as of September 30, 2014, $3.0 million as of September 30, 2013, $3.4 million as of September 30, 2012 and $3.9 million as of September 30, 2011. Uncollectible trade accounts receivable written-off, net of recoveries, were $0.6 million, $0.6 million and $0.8 million in 2014, 2013 and 2012, respectively. Bad debt (credit) expense was $(0.8) million, $0.2 million and $0.3 million in 2014, 2013 and 2012, respectively, and is included in general and administrative expenses in the accompanying consolidated statements of operations. | ||||||||||||||||
Financing Receivables And Transfers Of Financial Assets | ' | |||||||||||||||
Financing Receivables and Transfers of Financial Assets | ||||||||||||||||
We periodically provide extended payment terms for software purchases to credit-worthy customers with payment terms up to 24 months. The determination of whether to offer such payment terms is based on the size, nature and credit-worthiness of the customer, and the history of collecting amounts due, without concession, from the customer and customers generally. This determination is based on an internal credit assessment. In making this assessment, we use the Standard & Poor's (S&P) credit rating as our primary credit quality indicator, if available. If a customer, including both commercial and U.S. Federal government, has a S&P bond rating of BBB- or above, we designate the customer as a Tier 1. If a customer does not have a S&P bond rating, or has a S&P bond rating below BBB-, we base our assessment on an internal credit assessment which considers selected balance sheet, operating and liquidity measures, historical payment experience, and current business conditions within the industry or region. We designate these customers as Tier 2 or Tier 3, with Tier 3 being lower credit quality than Tier 2. | ||||||||||||||||
As of September 30, 2014 and 2013, amounts due from customers for contracts with original payment terms greater than twelve months (financing receivables) totaled $58.1 million and $53.1 million, respectively. Accounts receivable and other current assets in the accompanying consolidated balance sheets include current receivables from such contracts totaling $44.6 million and $36.1 million at September 30, 2014 and 2013, respectively, and other assets in the accompanying consolidated balance sheets include long-term receivables from such contracts totaling $13.5 million and $17.0 million at September 30, 2014 and 2013, respectively. As of September 30, 2014 and September 30, 2013, respectively, none of these receivables were past due. Our credit risk assessment for financing receivables was as follows: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
S&P bond rating BBB- and above-Tier 1 | $ | 41,152 | $ | 42,189 | ||||||||||||
Internal Credit Assessment-Tier 2 | 16,989 | 10,934 | ||||||||||||||
Internal Credit Assessment-Tier 3 | — | — | ||||||||||||||
Total financing receivables | $ | 58,141 | $ | 53,123 | ||||||||||||
We evaluate the need for an allowance for doubtful accounts for estimated losses resulting from the inability of these customers to make required payments. We write off uncollectible trade and financing receivables when we have exhausted all collection avenues. As of September 30, 2014 and 2013, we concluded that all financing receivables were collectible and no reserve for credit losses was recorded. We did not provide a reserve for credit losses or write off any uncollectible financing receivables in 2014, 2013 and 2012. | ||||||||||||||||
We periodically transfer future payments under certain of these contracts to third-party financial institutions on a non-recourse basis. We record such transfers as sales of the related accounts receivable when we surrender control of such receivables. In 2014, 2013 and 2012, we sold $24.5 million, $17.0 million and $14.3 million, respectively, of financing receivables to third-party financial institutions. | ||||||||||||||||
Derivatives | ' | |||||||||||||||
Derivatives | ||||||||||||||||
Generally accepted accounting principles require all derivatives, whether designated in a hedging relationship or not, to be recorded on the balance sheet at fair value. Changes in the derivative’s fair value are recognized currently in earnings unless specific hedge accounting criteria are met. | ||||||||||||||||
Derivatives are financial instruments whose values are derived from one or more underlying financial instruments, such as foreign currency. We enter into derivative transactions, specifically foreign currency forward contracts, to manage our exposure to fluctuations in foreign exchange rates that arise primarily from our foreign currency-denominated receivables and payables. The contracts are primarily denominated in European currencies, typically have maturities of approximately three months or less and require an exchange of foreign currencies for U.S. dollars at maturity of the contracts at rates agreed to at inception of the contracts. We do not enter into or hold derivatives for trading or speculative purposes. Generally, we do not designate foreign currency forward contracts as hedges for accounting purposes, and changes in the fair value of these instruments are recognized immediately in earnings. Because we enter into forward contracts only as an economic hedge, any gain or loss on the underlying foreign-denominated balance would be offset by the loss or gain on the forward contract. Gains and losses on forward contracts and foreign denominated receivables and payables are included in foreign currency net losses. | ||||||||||||||||
As of September 30, 2014 and 2013, we had outstanding forward contracts with notional amounts equivalent to the following: | ||||||||||||||||
September 30, | ||||||||||||||||
Currency Hedged | 2014 | 2013 | ||||||||||||||
(in thousands) | ||||||||||||||||
Canadian/U.S. Dollar | $ | 25,583 | $ | 41,852 | ||||||||||||
Euro/U.S. Dollar | 61,751 | 50,902 | ||||||||||||||
British Pound/Euro | 14,259 | — | ||||||||||||||
Israeli Sheqel/U.S. Dollar | 6,144 | 3,413 | ||||||||||||||
Japanese Yen/U.S. Dollar | — | 6,496 | ||||||||||||||
Swiss Franc/U.S. Dollar | 1,200 | 9,678 | ||||||||||||||
All other | 8,051 | 12,093 | ||||||||||||||
Total | $ | 116,988 | $ | 124,434 | ||||||||||||
The accompanying consolidated balance sheets include net assets of $0.3 million in other current assets as of both September 30, 2014 and 2013 and a net liability of $0.9 million and $0.4 million in accrued expenses and other current liabilities as of September 30, 2014 and 2013, respectively, related to the fair value of our forward contracts. | ||||||||||||||||
Net gains and losses on foreign currency exposures, including realized and unrealized gains and losses on forward contracts, included in foreign currency net losses, were net losses of $4.5 million, $2.0 million and $5.9 million for 2014, 2013 and 2012, respectively. Excluding the underlying foreign currency exposure being hedged, net realized and unrealized gains and losses on forward contracts included in foreign currency net losses, were net losses of $3.8 million in 2014 and $3.6 million in 2012, and a net gain of $3.4 million in 2013. | ||||||||||||||||
Property And Equipment | ' | |||||||||||||||
Property and Equipment | ||||||||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Computer hardware and software are typically amortized over three to five years, and furniture and fixtures over three to eight years. Leasehold improvements are amortized over the shorter of their useful lives or the remaining terms of the related leases. Property and equipment under capital leases are amortized over the lesser of the lease terms or their estimated useful lives. Maintenance and repairs are charged to expense when incurred; additions and improvements are capitalized. When an item is sold or retired, the cost and related accumulated depreciation is relieved, and the resulting gain or loss, if any, is recognized in income. | ||||||||||||||||
Software Development Costs | ' | |||||||||||||||
Software Development Costs | ||||||||||||||||
We incur costs to develop computer software to be licensed or otherwise marketed to customers. Research and development costs are expensed as incurred, except for costs of internally developed or externally purchased software that qualify for capitalization. Development costs for software to be sold externally incurred subsequent to the establishment of technological feasibility, but prior to the general release of the product, are capitalized and, upon general release, are amortized using the greater of either the straight-line method over the expected life of the related products or based upon the pattern in which economic benefits related to such assets are realized. The straight-line method is used if it approximates the same amount of expense as that calculated using the ratio that current period gross product revenues bear to total anticipated gross product revenues. No development costs for software to be sold externally were capitalized in 2014, 2013 or 2012. In connection with acquisitions of businesses described in Note E, we capitalized software of $48.9 million and $54.0 million in 2014 and 2013, respectively. These assets are included in acquired intangible assets in the accompanying consolidated balance sheets. | ||||||||||||||||
Goodwill, Acquired Intangible Assets And Long-lived Assets | ' | |||||||||||||||
Goodwill, Acquired Intangible Assets and Long-lived Assets | ||||||||||||||||
Goodwill is the amount by which the purchase price in a business acquisition exceeds the fair values of net identifiable assets on the date of purchase. | ||||||||||||||||
Goodwill is evaluated for impairment annually, as of the end of the third quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Factors we consider important, on an overall company basis and reportable-segment basis, when applicable, that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, a significant decline in our stock price for a sustained period and a reduction of our market capitalization relative to net book value. We completed our annual goodwill impairment review as of June 28, 2014 and concluded that no impairment charge was required as of that date. To conduct these tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss equal to the difference between the carrying value of goodwill and its implied fair value. We estimate the fair values of our reporting units using discounted cash flow valuation models. Those models require estimates of future revenues, profits, capital expenditures, working capital, terminal values based on revenue multiples, and discount rates for each reporting unit. We estimate these amounts by evaluating historical trends, current budgets, operating plans and industry data. The estimated fair value of each reporting unit was more than double its carrying value as of June 28, 2014. | ||||||||||||||||
Long-lived assets primarily include property and equipment and acquired intangible assets with finite lives (including purchased software, customer lists and trademarks). Purchased software is amortized over periods up to 11 years, customer lists are amortized over periods up to 12 years and trademarks are amortized over periods up to 12 years. We review long-lived assets for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset or asset group. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. | ||||||||||||||||
Advertising Expenses | ' | |||||||||||||||
Advertising Expenses | ||||||||||||||||
Advertising costs are expensed as incurred. Total advertising expenses incurred were $2.2 million, $4.2 million and $2.8 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
Our income tax expense includes U.S. and international income taxes. Certain items of income and expense are not reported in tax returns and financial statements in the same year. The tax effects of these differences are reported as deferred tax assets and liabilities. Deferred tax assets are recognized for the estimated future tax effects of deductible temporary differences and tax operating loss and credit carryforwards. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe that it is more likely than not that all or a portion of deferred tax assets will not be realized, we establish a valuation allowance. To the extent we establish a valuation allowance or increase this allowance in a period, we include an expense within the tax provision in the consolidated statement of operations. | ||||||||||||||||
Comprehensive Income | ' | |||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||
Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which includes foreign currency translation adjustments and changes in unrecognized actuarial gains and losses (net of tax) related to pension benefits. For the purposes of comprehensive income disclosures, we do not record tax provisions or benefits for the net changes in the foreign currency translation adjustment, as we intend to reinvest permanently undistributed earnings of our foreign subsidiaries. Accumulated other comprehensive loss is reported as a component of stockholders’ equity and, as of September 30, 2014 and 2013, was comprised of cumulative translation adjustment losses of $24.5 million and $0.4 million, respectively, and unrecognized actuarial losses related to pension benefits of $95.9 million ($69.9 million net of tax) and $74.4 million ($50.8 million net of tax), respectively. | ||||||||||||||||
Earnings Per Share (EPS) | ' | |||||||||||||||
Earnings per Share (EPS) | ||||||||||||||||
Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, restricted shares and restricted stock units using the treasury stock method. The calculation of the dilutive effect of outstanding equity awards under the treasury stock method includes consideration of proceeds from the assumed exercise of stock options, unrecognized compensation expense and any tax benefits as additional proceeds. | ||||||||||||||||
The following table presents the calculation for both basic and diluted EPS: | ||||||||||||||||
Year ended September 30, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net income (loss) | $ | 160,194 | $ | 143,769 | $ | (35,398 | ) | |||||||||
Weighted average shares outstanding | 118,094 | 119,473 | 118,705 | |||||||||||||
Dilutive effect of employee stock options, restricted shares and restricted stock units | 1,890 | 1,767 | — | |||||||||||||
Diluted weighted average shares outstanding | 119,984 | 121,240 | 118,705 | |||||||||||||
Basic earnings (loss) per share | $ | 1.36 | $ | 1.2 | $ | (0.30 | ) | |||||||||
Diluted earnings (loss) per share | $ | 1.34 | $ | 1.19 | $ | (0.30 | ) | |||||||||
Due to the net loss generated in 2012, the dilutive effect of stock options, restricted shares and restricted stock units totaling 2.3 million was excluded from the computation of diluted EPS for that period as the effect would have been anti-dilutive. | ||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Stock-Based Compensation | ||||||||||||||||
We measure the compensation cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. See Note K for a description of the types of stock-based awards granted, the compensation expense related to such awards and detail of equity-based awards outstanding. See Note G for detail of the tax benefit recognized in the consolidated statement of operations related to stock-based compensation. |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Revenue Recognition | ' | |||||||||||||||
We derive revenues from three primary sources: (1) software licenses, (2) services, and (3) support. | ||||||||||||||||
Deferred Revenue | ' | |||||||||||||||
Deferred revenue consisted of the following: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Deferred support revenue | $ | 335,827 | $ | 312,721 | ||||||||||||
Deferred service revenue | 19,775 | 18,793 | ||||||||||||||
Deferred license revenue | 26,942 | 5,399 | ||||||||||||||
Total deferred revenue | $ | 382,544 | $ | 336,913 | ||||||||||||
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | ' | |||||||||||||||
Our significant financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and 2013 were as follows: | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash equivalents (1) | $ | 101,113 | $ | — | $ | — | $ | 101,113 | ||||||||
Forward contracts | — | 339 | — | 339 | ||||||||||||
$ | 101,113 | $ | 339 | $ | — | $ | 101,452 | |||||||||
Financial liabilities: | ||||||||||||||||
Contingent consideration related to ThingWorx acquisition | $ | — | $ | — | $ | 15,191 | $ | 15,191 | ||||||||
Forward contracts | — | 911 | — | 911 | ||||||||||||
$ | — | $ | 911 | $ | 15,191 | $ | 16,102 | |||||||||
September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash equivalents (1) | $ | 56,706 | $ | — | $ | — | $ | 56,706 | ||||||||
Forward contracts | — | 301 | — | $ | 301 | |||||||||||
$ | 56,706 | $ | 301 | $ | — | $ | 57,007 | |||||||||
Financial liabilities: | ||||||||||||||||
Forward contracts | — | 438 | — | $ | 438 | |||||||||||
$ | — | $ | 438 | $ | — | $ | 438 | |||||||||
(1) Money market funds and time deposits. | ||||||||||||||||
Financing Receivable Credit Quality Indicators | ' | |||||||||||||||
As of September 30, 2014 and September 30, 2013, respectively, none of these receivables were past due. Our credit risk assessment for financing receivables was as follows: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
S&P bond rating BBB- and above-Tier 1 | $ | 41,152 | $ | 42,189 | ||||||||||||
Internal Credit Assessment-Tier 2 | 16,989 | 10,934 | ||||||||||||||
Internal Credit Assessment-Tier 3 | — | — | ||||||||||||||
Total financing receivables | $ | 58,141 | $ | 53,123 | ||||||||||||
Notional Amounts Of Outstanding Forward Contracts | ' | |||||||||||||||
As of September 30, 2014 and 2013, we had outstanding forward contracts with notional amounts equivalent to the following: | ||||||||||||||||
September 30, | ||||||||||||||||
Currency Hedged | 2014 | 2013 | ||||||||||||||
(in thousands) | ||||||||||||||||
Canadian/U.S. Dollar | $ | 25,583 | $ | 41,852 | ||||||||||||
Euro/U.S. Dollar | 61,751 | 50,902 | ||||||||||||||
British Pound/Euro | 14,259 | — | ||||||||||||||
Israeli Sheqel/U.S. Dollar | 6,144 | 3,413 | ||||||||||||||
Japanese Yen/U.S. Dollar | — | 6,496 | ||||||||||||||
Swiss Franc/U.S. Dollar | 1,200 | 9,678 | ||||||||||||||
All other | 8,051 | 12,093 | ||||||||||||||
Total | $ | 116,988 | $ | 124,434 | ||||||||||||
Earnings Per Share Basic And Diluted | ' | |||||||||||||||
The following table presents the calculation for both basic and diluted EPS: | ||||||||||||||||
Year ended September 30, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net income (loss) | $ | 160,194 | $ | 143,769 | $ | (35,398 | ) | |||||||||
Weighted average shares outstanding | 118,094 | 119,473 | 118,705 | |||||||||||||
Dilutive effect of employee stock options, restricted shares and restricted stock units | 1,890 | 1,767 | — | |||||||||||||
Diluted weighted average shares outstanding | 119,984 | 121,240 | 118,705 | |||||||||||||
Basic earnings (loss) per share | $ | 1.36 | $ | 1.2 | $ | (0.30 | ) | |||||||||
Diluted earnings (loss) per share | $ | 1.34 | $ | 1.19 | $ | (0.30 | ) | |||||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies Changes in fair value of contingent consideration (Tables) | 12 Months Ended | |||
Sep. 30, 2014 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | |||
Changes in fair value of contingent consideration [Table Text Block] | ' | |||
Changes in the fair value of Level 3 contingent consideration liability associated with our acquisition of ThingWorx were as follows: | ||||
Contingent Consideration | ||||
(in thousands) | ||||
Balance at October 1, 2013 | $ | — | ||
ThingWorx contingent consideration at acquisition | 13,048 | |||
Change in fair value of contingent consideration | 2,143 | |||
Balance at September 30, 2014 | $ | 15,191 | ||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Restructuring [Abstract] | ' | |||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||||||
The following table summarizes restructuring charges reserve activity for the three years ended September 30, 2014: | ||||||||||||
Employee Severance | Facility Closures | Consolidated Total | ||||||||||
and Related Benefits | and Other Costs | |||||||||||
(in thousands) | ||||||||||||
Balance, October 1, 2011 | $ | — | $ | 666 | $ | 666 | ||||||
Charges to operations | 24,391 | 537 | 24,928 | |||||||||
Cash disbursements | (20,401 | ) | (546 | ) | (20,947 | ) | ||||||
Foreign currency impact | (192 | ) | 6 | (186 | ) | |||||||
Balance, September 30, 2012 | 3,798 | 663 | 4,461 | |||||||||
Charges to operations | 50,874 | 1,323 | 52,197 | |||||||||
Cash disbursements | (35,510 | ) | (1,689 | ) | (37,199 | ) | ||||||
Foreign currency impact | 72 | (2 | ) | 70 | ||||||||
Balance, September 30, 2013 | 19,234 | 295 | 19,529 | |||||||||
Charges to operations | 27,918 | 488 | 28,406 | |||||||||
Cash disbursements | (20,334 | ) | (241 | ) | (20,575 | ) | ||||||
Foreign currency impact | (983 | ) | (7 | ) | (990 | ) | ||||||
Balance, September 30, 2014 | $ | 25,835 | $ | 535 | $ | 26,370 | ||||||
Property_And_Equipment_Tables
Property And Equipment (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components Of Property And Equipment | ' | |||||||
Property and equipment consisted of the following: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Computer hardware and software | $ | 230,591 | $ | 217,724 | ||||
Furniture and fixtures | 19,025 | 19,211 | ||||||
Leasehold improvements | 36,896 | 35,289 | ||||||
Gross property and equipment | 286,512 | 272,224 | ||||||
Accumulated depreciation and amortization | (218,729 | ) | (207,572 | ) | ||||
Net property and equipment | $ | 67,783 | $ | 64,652 | ||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ||||||||||||||
Purchase price for our 2014 acquisitions was allocated to assets and liabilities acquired as follows: | |||||||||||||||
Purchase price allocation: | Axeda | Atego | ThingWorx | ||||||||||||
(in thousands) | |||||||||||||||
Goodwill | $ | 130,443 | $ | 27,256 | $ | 102,190 | |||||||||
Identifiable intangible assets | 59,170 | 27,750 | 32,520 | ||||||||||||
Cash | 9,575 | 3,550 | 133 | ||||||||||||
Deferred revenue | (18,242 | ) | (6,058 | ) | (900 | ) | |||||||||
Deferred tax assets and liabilities, net | (9,145 | ) | (3,476 | ) | (8,934 | ) | |||||||||
Other assumed assets and liabilities, net | 3,674 | 634 | (309 | ) | |||||||||||
Total allocation of purchase price consideration | 175,475 | 49,656 | 124,700 | ||||||||||||
Less: cash acquired | (9,575 | ) | (3,550 | ) | (133 | ) | |||||||||
Total purchase price allocation, net of cash acquired | 165,900 | 46,106 | 124,567 | ||||||||||||
Less: contingent consideration | — | — | (13,048 | ) | |||||||||||
Net cash used for acquisitions of businesses | $ | 165,900 | $ | 46,106 | $ | 111,519 | |||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | ' | ||||||||||||||
Intangible assets are being amortized over weighted average useful lives based upon the pattern in which economic benefits related to such assets are expected to be realized. Intangible assets for our 2014 acquisitions and their respective average useful lives are in the table that follows. | |||||||||||||||
Intangible asset allocation: | Axeda | Atego | ThingWorx | ||||||||||||
($ amounts in thousands) | |||||||||||||||
Amount | Life | Amount | Life | Amount | Life | ||||||||||
Purchased software | $ | 19,700 | 9 | $ | 8,200 | 11 | $ | 21,000 | 11 | ||||||
Customer lists | 36,600 | 9 | 19,400 | 11 | 8,800 | 9 | |||||||||
Trademarks | 2,800 | 12 | 150 | 3 | 2,300 | 12 | |||||||||
Other | 70 | 2 | — | 420 | 3 | ||||||||||
Total identifiable intangible assets | $ | 59,170 | $ | 27,750 | $ | 32,520 | |||||||||
Pro Forma Financial Information | ' | ||||||||||||||
Year ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Revenue | $ | 1,296.60 | $ | 1,328.50 | |||||||||||
Net income (loss) | $ | 116.5 | $ | (11.6 | ) | ||||||||||
Earnings (loss) per share—Basic | $ | 0.98 | $ | (0.10 | ) | ||||||||||
Earnings (loss) per share—Diluted | $ | 0.96 | $ | (0.10 | ) | ||||||||||
Recovered_Sheet1
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill And Acquired Intangible Assets | ' | |||||||||||||||||||||||
Goodwill and acquired intangible assets consisted of the following: | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Goodwill (not amortized) | $ | 1,012,527 | $ | 769,095 | ||||||||||||||||||||
Intangible assets with finite lives (amortized) (1): | ||||||||||||||||||||||||
Purchased software | $ | 278,012 | $ | 162,259 | $ | 115,753 | $ | 233,566 | $ | 148,127 | $ | 85,439 | ||||||||||||
Capitalized software | 22,877 | 22,877 | — | 22,877 | 22,877 | — | ||||||||||||||||||
Customer lists and relationships | 360,530 | 147,469 | 213,061 | 304,434 | 120,338 | 184,096 | ||||||||||||||||||
Trademarks and trade names | 18,479 | 10,964 | 7,515 | 13,427 | 10,097 | 3,330 | ||||||||||||||||||
Other | 4,117 | 3,573 | 544 | 3,784 | 3,528 | 256 | ||||||||||||||||||
$ | 684,015 | $ | 347,142 | $ | 336,873 | $ | 578,088 | $ | 304,967 | $ | 273,121 | |||||||||||||
Total goodwill and acquired intangible assets | $ | 1,349,400 | $ | 1,042,216 | ||||||||||||||||||||
(1) The weighted average useful lives of purchased software, customer lists and relationships, trademarks and trade names and other intangible assets with a remaining net book value are 9 years, 10 years, 9 years and 3 years, respectively. | ||||||||||||||||||||||||
Schedule Of Movements in Goodwill by Reportable Segment | ' | |||||||||||||||||||||||
Changes in goodwill presented by reportable segment were as follows: | ||||||||||||||||||||||||
Software | Services | Total | ||||||||||||||||||||||
Products | Segment | |||||||||||||||||||||||
Segment | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Balance, October 1, 2012 | $ | 585,469 | $ | 24,878 | $ | 610,347 | ||||||||||||||||||
Acquisition of Servigistics | 127,033 | 12,800 | 139,833 | |||||||||||||||||||||
Acquisition of NetIDEAS | — | 10,196 | 10,196 | |||||||||||||||||||||
Acquisition of Enigma | 3,570 | 581 | 4,151 | |||||||||||||||||||||
Foreign currency translation | 4,476 | 92 | 4,568 | |||||||||||||||||||||
Balance, September 30, 2013 | 720,548 | 48,547 | 769,095 | |||||||||||||||||||||
Acquisition of ThingWorx | 102,190 | — | 102,190 | |||||||||||||||||||||
Acquisition of Atego | 27,256 | — | 27,256 | |||||||||||||||||||||
Acquisition of Axeda | 126,034 | 4,409 | 130,443 | |||||||||||||||||||||
Foreign currency translation | (16,260 | ) | (197 | ) | (16,457 | ) | ||||||||||||||||||
Balance, September 30, 2014 | $ | 959,768 | $ | 52,759 | $ | 1,012,527 | ||||||||||||||||||
Amortization Of Intangible Assets | ' | |||||||||||||||||||||||
The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2014, 2013 and 2012 was reflected in our consolidated statements of operations as follows: | ||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Amortization of acquired intangible assets | $ | 32,127 | $ | 26,486 | $ | 20,303 | ||||||||||||||||||
Cost of license revenue | 17,746 | 18,586 | 15,819 | |||||||||||||||||||||
Cost of service revenue | 366 | — | — | |||||||||||||||||||||
Total amortization expense | $ | 50,239 | $ | 45,072 | $ | 36,122 | ||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Summary Of Income (Loss) Before Income Taxes | ' | |||||||||||
Our income (loss) before income taxes consisted of the following: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Domestic | $ | 17,038 | $ | 6,112 | $ | (11,422 | ) | |||||
Foreign | 169,074 | 120,122 | 132,158 | |||||||||
Total income before income taxes | $ | 186,112 | $ | 126,234 | $ | 120,736 | ||||||
Schedule Of Provision For (Benefit From) Income Taxes | ' | |||||||||||
Our (benefit) provision for income taxes consisted of the following: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 12,792 | $ | 7,081 | $ | 8,534 | ||||||
State | 2,062 | 1,512 | 1,733 | |||||||||
Foreign | 31,010 | 13,586 | 41,101 | |||||||||
45,864 | 22,179 | 51,368 | ||||||||||
Deferred: | ||||||||||||
Federal | (13,200 | ) | (38,224 | ) | 106,041 | |||||||
State | (2,085 | ) | (4,718 | ) | 7,706 | |||||||
Foreign | (4,661 | ) | 3,228 | (8,981 | ) | |||||||
(19,946 | ) | (39,714 | ) | 104,766 | ||||||||
Total provision (benefit) for income taxes | $ | 25,918 | $ | (17,535 | ) | $ | 156,134 | |||||
Summary Of Federal Income Tax Rate And Effective Income Tax Rate | ' | |||||||||||
The reconciliation between the statutory federal income tax rate and our effective income tax rate is shown below: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
Change in valuation allowance | (11 | )% | (32 | )% | 103 | % | ||||||
State income taxes, net of federal tax benefit | 1 | % | 1 | % | — | % | ||||||
Federal and state research and development credits | — | % | (1 | )% | (1 | )% | ||||||
Tax audit and examination settlements | — | % | (1 | )% | 1 | % | ||||||
Foreign rate differences | (19 | )% | (26 | )% | (16 | )% | ||||||
Foreign withholding tax | 3 | % | 5 | % | 3 | % | ||||||
Subsidiary reorganization | — | % | — | % | 3 | % | ||||||
Other, net | 5 | % | 5 | % | 1 | % | ||||||
Effective income tax rate | 14 | % | (14 | )% | 129 | % | ||||||
Schedule Of Deferred Tax Assets And Liabilities | ' | |||||||||||
The significant temporary differences that created deferred tax assets and liabilities are shown below: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 65,640 | $ | 47,770 | ||||||||
Foreign tax credits | 9,022 | 5,994 | ||||||||||
Capitalized research and development expense | 41,720 | 51,237 | ||||||||||
Pension benefits | 39,063 | 30,870 | ||||||||||
Deferred revenue | 67,433 | 63,976 | ||||||||||
Stock-based compensation | 16,744 | 18,045 | ||||||||||
Other reserves not currently deductible | 25,258 | 19,343 | ||||||||||
Amortization of intangible assets | 9,302 | 5,772 | ||||||||||
Other tax credits | 30,982 | 31,263 | ||||||||||
Depreciation | 3,157 | 3,077 | ||||||||||
Other | 8,218 | 4,396 | ||||||||||
Gross deferred tax assets | 316,539 | 281,743 | ||||||||||
Valuation allowance | (177,541 | ) | (156,547 | ) | ||||||||
Total deferred tax assets | 138,998 | 125,196 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Acquired intangible assets not deductible | (110,003 | ) | (88,134 | ) | ||||||||
Pension prepayments | (20,263 | ) | (15,607 | ) | ||||||||
Deferred revenue | (1,446 | ) | (12,592 | ) | ||||||||
Other | (4,484 | ) | (4,463 | ) | ||||||||
Total deferred tax liabilities | (136,196 | ) | (120,796 | ) | ||||||||
Net deferred tax assets | $ | 2,802 | $ | 4,400 | ||||||||
Summary Of Valuation Allowance | ' | |||||||||||
The changes to the valuation allowance were primarily due to: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in millions) | ||||||||||||
Valuation allowance beginning of year | $ | 156.5 | $ | 170.4 | $ | 38.6 | ||||||
Net release of valuation allowance (1) | (18.1 | ) | (44.6 | ) | — | |||||||
Establish valuation allowance in the U.S. | — | — | 124.5 | |||||||||
Net increase/decrease in deferred tax assets for foreign jurisdictions with a full valuation allowance | (5.2 | ) | 1.9 | (2.1 | ) | |||||||
Establish valuation allowance for acquired businesses | 21.5 | 12.1 | — | |||||||||
Establish valuation allowance in foreign jurisdictions | 3.5 | — | 0.6 | |||||||||
Adjust deferred tax asset and valuation allowance | 19.3 | 16.7 | 8.8 | |||||||||
Valuation allowance end of year | $ | 177.5 | $ | 156.5 | $ | 170.4 | ||||||
-1 | In 2014 and 2013, this is attributable to recognition of deferred tax liabilities recorded in connection with accounting for acquisitions and in 2013 a reduction in deferred tax assets associated with our U.S. pension plan, both of which are described above. | |||||||||||
Schedule Of Unrecognized Tax Benefit | ' | |||||||||||
Year ended September 30, | ||||||||||||
Unrecognized tax benefits | 2014 | 2013 | 2012 | |||||||||
(in millions) | ||||||||||||
Unrecognized tax benefit beginning of year | $ | 13.7 | $ | 19.1 | $ | 16.2 | ||||||
Tax positions related to current year: | ||||||||||||
Additions | 2.2 | 1 | 3.4 | |||||||||
Tax positions related to prior years: | ||||||||||||
Additions | 0.3 | 1.8 | 1.4 | |||||||||
Reductions | (0.1 | ) | (6.3 | ) | (0.5 | ) | ||||||
Settlements | (0.6 | ) | (0.7 | ) | — | |||||||
Statute expirations | (0.5 | ) | (1.2 | ) | (1.4 | ) | ||||||
Unrecognized tax benefit end of year | $ | 15 | $ | 13.7 | $ | 19.1 | ||||||
Summary Of Income Tax Examinations Years | ' | |||||||||||
As of September 30, 2014, we remained subject to examination in the following major tax jurisdictions for the tax years indicated: | ||||||||||||
Major Tax Jurisdiction | Open Years | |||||||||||
United States | 2011 through 2014 | |||||||||||
Germany | 2011 through 2014 | |||||||||||
France | 2013 through 2014 | |||||||||||
Japan | 2009 through 2014 | |||||||||||
Ireland | 2010 through 2014 |
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future Minimum Lease Payments | ' | |||
At September 30, 2014, our future minimum lease payments under noncancellable operating leases are as follows: | ||||
Year ending September 30, | (in thousands) | |||
2015 | $ | 40,233 | ||
2016 | 32,371 | |||
2017 | 23,974 | |||
2018 | 20,203 | |||
2019 | 16,594 | |||
Thereafter | 39,191 | |||
Total minimum lease payments | $ | 172,566 | ||
Equity_Incentive_Plan_Tables
Equity Incentive Plan (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||
Total Stock Based Compensation Expense | ' | |||||||||||
The following table shows total stock-based compensation expense recorded from our stock-based awards as reflected in our consolidated statements of operations: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Cost of license revenue | $ | 17 | $ | 21 | $ | 22 | ||||||
Cost of service revenue | 6,648 | 6,134 | 5,682 | |||||||||
Cost of support revenue | 3,745 | 3,324 | 3,234 | |||||||||
Sales and marketing | 10,982 | 11,326 | 13,809 | |||||||||
Research and development | 10,119 | 8,590 | 8,761 | |||||||||
General and administrative | 19,378 | 19,392 | 19,797 | |||||||||
Total stock-based compensation expense | $ | 50,889 | $ | 48,787 | $ | 51,305 | ||||||
Restricted Stock And Restricted Stock Unit Grants | ' | |||||||||||
Restricted Stock Units | ||||||||||||
Restricted stock unit grants | Performance-based (1) | Time-based (2) | ||||||||||
(Number of Units in thousands) | ||||||||||||
Year ended September 30, 2014 | 451 | 1,492 | ||||||||||
-1 | The performance-based RSUs were granted to employees, including our executive officers. Approximately 87,000 of these RSUs are eligible to vest in three substantially equal installments in November 2016, 2017 and 2018 based on achievement of the applicable performance criteria. Substantially all other performance-based RSUs are eligible to vest in three substantially equal installments in November 2014, 2015 and 2016 to the extent the applicable performance criteria have been achieved. RSUs not earned for a period may be earned in subsequent periods. | |||||||||||
-2 | The time-based RSUs were issued to directors and employees, including some of our executive officers. The time-based RSUs issued to employees and executives generally vest in three substantially equal annual installments from the date of grant. Substantially all of the time-based RSUs issued to our directors will vest one year from the date of grant. | |||||||||||
Value Of Stock Option And Stock-Based Award Activity | ' | |||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Value of stock option and stock-based award activity | (in thousands) | |||||||||||
Total intrinsic value of stock options exercised | $ | 2,040 | $ | 6,525 | $ | 31,746 | ||||||
Total fair value of restricted stock and restricted stock unit awards vested | $ | 79,660 | $ | 48,083 | $ | 65,574 | ||||||
Restricted Stock [Member] | ' | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||
Restricted Stock Activity | ' | |||||||||||
Shares | Weighted | Aggregate Intrinsic Value as of September 30, 2014 | ||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Restricted stock activity for the year ended September 30, 2014 | (in thousands except grant date fair value data) | |||||||||||
Balance of nonvested outstanding restricted stock October 1, 2013 | 5 | $ | 21.27 | |||||||||
Vested | (5 | ) | $ | 21.27 | ||||||||
Balance of nonvested outstanding restricted stock September 30, 2014 | — | $ | — | $ | — | |||||||
Restricted Stock Units [Member] | ' | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||
Restricted Stock Activity | ' | |||||||||||
Shares | Weighted | Aggregate Intrinsic Value as of September 30, 2014 | ||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Restricted stock unit activity for the year ended September 30, 2014 | (in thousands except grant date fair value data) | |||||||||||
Balance of nonvested outstanding restricted stock units October 1, 2013 | 5,186 | $ | 21.67 | |||||||||
Granted | 1,943 | $ | 33.88 | |||||||||
Vested | (2,370 | ) | $ | 21.63 | ||||||||
Forfeited or not earned | (380 | ) | $ | 24.26 | ||||||||
Balance of nonvested outstanding restricted stock units September 30, 2014 | 4,379 | $ | 26.87 | $ | 161,595 | |||||||
Pension_Plans_Tables
Pension Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | |||||||||||||||||||||||
Accounting For The Pension Plans | ' | |||||||||||||||||||||||
The following table presents the actuarial assumptions used in accounting for the pension plans: | ||||||||||||||||||||||||
U.S. Plan | International Plans | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date: | ||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.9 | % | 4 | % | 2.4 | % | 3.3 | % | 3.4 | % | ||||||||||||
Rate of increase in future compensation (1) | — | % | — | % | — | % | 3 | % | 3 | % | 3 | % | ||||||||||||
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: | ||||||||||||||||||||||||
Discount rate | 4.9 | % | 4 | % | 4.5 | % | 3.3 | % | 3.4 | % | 4.8 | % | ||||||||||||
Rate of increase in future compensation | — | % | — | % | — | % | 3 | % | 3 | % | 3 | % | ||||||||||||
Rate of return on plan assets | 7.25 | % | 7.25 | % | 7.25 | % | 5.7 | % | 5.4 | % | 5.4 | % | ||||||||||||
-1 | The rate of increase in future compensation is weighted for all plans, ongoing and frozen (with a 0% increase for frozen plans). The weighted rate of increase for ongoing non-U.S. plans was 3% at September 30, 2014 and 2013. | |||||||||||||||||||||||
Components Of Net Periodic Pension Cost | ' | |||||||||||||||||||||||
The actuarially computed components of net periodic pension cost recognized in our consolidated statements of operations for each year are shown below: | ||||||||||||||||||||||||
U.S. Plan | International Plans | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Interest cost of projected benefit obligation | $ | 5,461 | $ | 4,989 | $ | 5,490 | $ | 2,442 | $ | 2,384 | $ | 2,554 | ||||||||||||
Service cost | — | — | — | 1,659 | 2,017 | 1,882 | ||||||||||||||||||
Expected return on plan assets | (7,151 | ) | (6,128 | ) | (5,412 | ) | (2,506 | ) | (2,126 | ) | (1,929 | ) | ||||||||||||
Amortization of prior service cost | — | — | — | (5 | ) | (6 | ) | (7 | ) | |||||||||||||||
Recognized actuarial loss | 2,213 | 3,152 | 2,967 | 1,181 | 1,248 | 341 | ||||||||||||||||||
Net periodic pension cost | $ | 523 | $ | 2,013 | $ | 3,045 | $ | 2,771 | $ | 3,517 | $ | 2,841 | ||||||||||||
Change In Benefit Obligation And Plan Assets | ' | |||||||||||||||||||||||
The following tables display the change in benefit obligation and the change in the plan assets and funded status of the plans as well as the amounts recognized in our consolidated balance sheets: | ||||||||||||||||||||||||
U.S. Plan | International Plans | Total | ||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Projected benefit obligation—beginning of year | $ | 113,378 | $ | 129,701 | $ | 74,956 | $ | 71,408 | $ | 188,334 | $ | 201,109 | ||||||||||||
Service cost | — | — | 1,659 | 2,017 | 1,659 | 2,017 | ||||||||||||||||||
Interest cost | 5,461 | 4,989 | 2,442 | 2,384 | 7,903 | 7,373 | ||||||||||||||||||
Actuarial (gain) loss | 20,563 | (12,728 | ) | 12,732 | 1,426 | 33,295 | (11,302 | ) | ||||||||||||||||
Foreign exchange impact | — | — | (6,480 | ) | 629 | (6,480 | ) | 629 | ||||||||||||||||
Participant contributions | — | — | 325 | 432 | 325 | 432 | ||||||||||||||||||
Benefits paid | (4,949 | ) | (8,584 | ) | (1,528 | ) | (1,732 | ) | (6,477 | ) | (10,316 | ) | ||||||||||||
Plan curtailments | — | — | — | (1,608 | ) | — | (1,608 | ) | ||||||||||||||||
Projected benefit obligation—end of year | $ | 134,453 | $ | 113,378 | $ | 84,106 | $ | 74,956 | $ | 218,559 | $ | 188,334 | ||||||||||||
Change in plan assets and funded status: | ||||||||||||||||||||||||
Plan assets at fair value—beginning of year | $ | 94,831 | $ | 86,016 | $ | 43,362 | $ | 38,817 | $ | 138,193 | $ | 124,833 | ||||||||||||
Actual return on plan assets | 12,425 | 10,438 | 3,489 | 3,172 | 15,914 | 13,610 | ||||||||||||||||||
Employer contributions | 10,552 | 6,961 | 2,353 | 3,008 | 12,905 | 9,969 | ||||||||||||||||||
Participant contributions | — | — | 325 | 432 | 325 | 432 | ||||||||||||||||||
Foreign exchange impact | — | — | (3,510 | ) | (335 | ) | (3,510 | ) | (335 | ) | ||||||||||||||
Benefits paid | (4,949 | ) | (8,584 | ) | (1,528 | ) | (1,732 | ) | (6,477 | ) | (10,316 | ) | ||||||||||||
Plan assets at fair value—end of year | 112,859 | 94,831 | 44,491 | 43,362 | 157,350 | 138,193 | ||||||||||||||||||
Projected benefit obligation—end of year | 134,453 | 113,378 | 84,106 | 74,956 | 218,559 | 188,334 | ||||||||||||||||||
Underfunded status | $ | (21,594 | ) | $ | (18,547 | ) | $ | (39,615 | ) | $ | (31,594 | ) | $ | (61,209 | ) | $ | (50,141 | ) | ||||||
Accumulated benefit obligation—end of year | $ | 134,453 | $ | 113,378 | $ | 80,364 | $ | 71,513 | $ | 214,817 | $ | 184,891 | ||||||||||||
Amounts recognized in the balance sheet: | ||||||||||||||||||||||||
Non-current liability | $ | — | $ | (18,547 | ) | $ | (39,615 | ) | $ | (31,594 | ) | $ | (39,615 | ) | $ | (50,141 | ) | |||||||
Current liability | $ | (21,594 | ) | $ | — | $ | — | $ | — | $ | (21,594 | ) | $ | — | ||||||||||
Amounts in accumulated other comprehensive loss: | ||||||||||||||||||||||||
Unrecognized actuarial loss | $ | 68,256 | $ | 55,180 | $ | 27,669 | $ | 19,177 | $ | 95,925 | $ | 74,357 | ||||||||||||
Percentage Of Total Plan Assets | ' | |||||||||||||||||||||||
The following table shows the percentage of total plan assets for each major category of plan assets: | ||||||||||||||||||||||||
U.S. Plan | International Plans | |||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Asset category: | ||||||||||||||||||||||||
Equity securities | — | % | 62 | % | 51 | % | 51 | % | ||||||||||||||||
Fixed income securities | 100 | % | 38 | % | 28 | % | 27 | % | ||||||||||||||||
Insurance company | — | % | — | % | 19 | % | 19 | % | ||||||||||||||||
Cash | — | % | — | % | 2 | % | 3 | % | ||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Expected Future Benefit Payments | ' | |||||||||||||||||||||||
As of September 30, 2014, benefit payments expected to be paid over the next ten years are outlined in the following table: | ||||||||||||||||||||||||
U.S. Plan | International | Total | ||||||||||||||||||||||
Plans | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Year ending September 30, | ||||||||||||||||||||||||
2015 | $ | 134,453 | $ | 2,033 | $ | 136,486 | ||||||||||||||||||
2016 | — | 2,040 | 2,040 | |||||||||||||||||||||
2017 | — | 2,139 | 2,139 | |||||||||||||||||||||
2018 | — | 2,558 | 2,558 | |||||||||||||||||||||
2019 | — | 2,837 | 2,837 | |||||||||||||||||||||
2020 to 2024 | — | 21,557 | 21,557 | |||||||||||||||||||||
U.S. Plan Assets Common Collective Trusts [Member] | ' | |||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | |||||||||||||||||||||||
Fair Value Of Plan Assets | ' | |||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. plan assets-common/collective trusts: | ||||||||||||||||||||||||
Cash | $ | — | $ | 270 | $ | — | $ | 270 | ||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||
U.S. Treasury, agency and other local government and non-corporate | — | 25,025 | — | 25,025 | ||||||||||||||||||||
Corporate investment grade | — | 87,538 | — | 87,538 | ||||||||||||||||||||
Corporate high yield | — | 26 | — | 26 | ||||||||||||||||||||
$ | — | $ | 112,859 | $ | — | $ | 112,859 | |||||||||||||||||
International Plan Assets [Member] | ' | |||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | |||||||||||||||||||||||
Fair Value Of Plan Assets | ' | |||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
International plan assets: | ||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||
Government | $ | 4,910 | $ | — | $ | — | $ | 4,910 | ||||||||||||||||
Europe corporate investment grade | 7,769 | — | — | 7,769 | ||||||||||||||||||||
Europe large capitalization stocks | 22,746 | — | — | 22,746 | ||||||||||||||||||||
Insurance company funds (1) | — | 8,235 | — | 8,235 | ||||||||||||||||||||
Cash | 831 | — | — | 831 | ||||||||||||||||||||
$ | 36,256 | $ | 8,235 | $ | — | $ | 44,491 | |||||||||||||||||
(1) These investments are comprised primarily of funds invested with an insurance company in Japan with a guaranteed rate of return. The insurance company invests these assets primarily in government and corporate bonds. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Operating Segments [Member] | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | |||||||||||
Revenue And Operating Income | ' | |||||||||||
The revenue and operating income attributable to these operating segments are summarized as follows: | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Software Products segment revenue | $ | 1,032,230 | $ | 977,523 | $ | 935,472 | ||||||
Services segment revenue | 324,737 | 316,018 | 320,207 | |||||||||
Total revenue | $ | 1,356,967 | $ | 1,293,541 | $ | 1,255,679 | ||||||
Operating income: (1) (2) | ||||||||||||
Software Products segment | $ | 663,593 | $ | 605,963 | $ | 598,344 | ||||||
Services segment | 48,378 | 37,131 | 41,793 | |||||||||
Sales and marketing expenses | (371,392 | ) | (378,771 | ) | (392,956 | ) | ||||||
General and administrative expenses | (144,003 | ) | (136,999 | ) | (119,085 | ) | ||||||
Total operating income | $ | 196,576 | $ | 127,324 | $ | 128,096 | ||||||
Other (expense) income, net | (10,464 | ) | (1,090 | ) | (7,360 | ) | ||||||
Income before income taxes | $ | 186,112 | $ | 126,234 | $ | 120,736 | ||||||
-1 | We recorded restructuring charges of $28.4 million in 2014. Software Products included $2.8 million; Services included $9.8 million; sales and marketing expenses included $13.9 million; and general and administrative expenses included $1.8 million of the total restructuring charges recorded in 2014.We recorded restructuring charges of $52.2 million in 2013. Software Products included $17.7 million; Services included $11.3 million; sales and marketing expenses included $18.1 million; and general and administrative expenses included $5.1 million of the total restructuring charges recorded in 2013. We recorded restructuring charges of $24.9 million in 2012. Software Products included $4.1 million; Services included $4.0 million; sales and marketing expenses included $15.2 million; and general and administrative expenses included $1.6 million of the total restructuring charges recorded in 2012. | |||||||||||
-2 | The Software Products segment operating income includes depreciation and amortization of $30.0 million, $32.0 million, and $30.8 million in 2014, 2013, and 2012, respectively. The Services segment operating income includes depreciation and amortization of $7.4 million, $6.1 million, and $4.8 million in 2014, 2013, and 2012, respectively. | |||||||||||
Products and Services Segments [Member] | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | |||||||||||
Revenue And Operating Income | ' | |||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
CAD | $ | 581,508 | $ | 552,442 | $ | 573,457 | ||||||
EPLM | 599,312 | 571,058 | 604,339 | |||||||||
SLM & IoT | 176,147 | 170,041 | 77,883 | |||||||||
Total revenue | $ | 1,356,967 | $ | 1,293,541 | $ | 1,255,679 | ||||||
Geographical Segments [Member] | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | |||||||||||
Revenue And Operating Income | ' | |||||||||||
Data for the geographic regions in which we operate is presented below. | ||||||||||||
Year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Revenue: | ||||||||||||
Americas (1) | $ | 558,671 | $ | 522,788 | $ | 479,932 | ||||||
Europe (2) | 528,090 | 479,877 | 480,287 | |||||||||
Pacific Rim | 148,151 | 161,587 | 160,834 | |||||||||
Japan | 122,055 | 129,289 | 134,626 | |||||||||
Total revenue | $ | 1,356,967 | $ | 1,293,541 | $ | 1,255,679 | ||||||
September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Long-lived tangible assets: | ||||||||||||
Americas (3) | $ | 51,027 | $ | 49,788 | $ | 46,083 | ||||||
Europe | 7,020 | 5,557 | 6,649 | |||||||||
Asia-Pacific | 9,736 | 9,307 | 10,734 | |||||||||
Total long-lived tangible assets | $ | 67,783 | $ | 64,652 | $ | 63,466 | ||||||
-1 | Includes revenue in the United States totaling $518.7 million, $485.2 million and $453.2 million for 2014, 2013 and 2012, respectively. | |||||||||||
-2 | Includes revenue in Germany totaling $200.3 million, $167.2 million and $188.3 million for 2014, 2013 and 2012, respectively. | |||||||||||
-3 | Substantially all of the Americas long-lived tangible assets are located in the United States. |
Subsequent_Events_Tables
Subsequent Events (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Subsequent Events [Abstract] | ' | |||||||
Schedule Of Restricted Units Granted | ' | |||||||
November 2014, we granted the restricted stock units shown in the table below to employees, including some of our executive officers. The performance-based RSUs are eligible to vest based upon our total shareholder return relative to a peer group target (the “TSR units”), measured annually over a three-year period that commenced October 1, 2014. To the extent earned, these TSR units will vest in three substantially equal installments on the later of November 15, 2015, November 15, 2016 and November 15, 2017, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. RSUs not earned for a period may be earned in subsequent periods. The number of TSR units that will vest will be based on the level of achievement up to a maximum of 522 thousand, with no vesting if the annual threshold requirement is not achieved, or the employee is no longer with the Company at the end of the relevant performance period. | ||||||||
The time-based RSUs were issued to employees, including some of our executive officers. Of these, 757 thousand will vest in three substantially equal annual installments on November 15, 2015, 2016 and 2017 and 109 thousand will vest on November 15, 2015. | ||||||||
Performance-Based RSUs | Time-Based RSUs | |||||||
(in thousands) | ||||||||
Number Granted | 522 | 866 | ||||||
Intrinsic value on grant date based on the maximum number of RSU's eligible to vest | $ | 19,344 | $ | 32,182 | ||||
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation Disclosure Fair Value Unbservable Inputs (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 30, 2013 | Sep. 30, 2013 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ||
Cash and Cash Equivalents, Fair Value Disclosure | $101,113 | [1] | ' | $56,706 | [1] |
Business Combination, Contingent Consideration, Liability | 13,048 | 13,048 | ' | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 2,143 | ' | ' | ||
Contingent consideration related to ThingWorx acquisition | 15,191 | ' | 0 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ||
Cash and Cash Equivalents, Fair Value Disclosure | 101,113 | [1] | ' | 56,706 | [1] |
Contingent consideration related to ThingWorx acquisition | 0 | ' | ' | ||
Level 3 [Member] | ' | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | ' | 0 | ||
Contingent consideration related to ThingWorx acquisition | $15,191 | ' | ' | ||
[1] | Money market funds and time deposits. |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2010 | Sep. 30, 2011 | |
customers | customers | ||||
M | |||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Maximum payment terms on software purchases for credit-worthy customers (in months) | 24 | ' | ' | ' | ' |
Major number of customers | 0 | ' | 0 | ' | ' |
Ceiling percentage of revenue for major customer | 10.00% | ' | ' | ' | ' |
Allowance for doubtful accounts receivable | $1,600,000 | $3,000,000 | $3,400,000 | ' | $3,900,000 |
Accounts receivable written-off, net of recoveries | 600,000 | 600,000 | 800,000 | ' | ' |
Bad debt expense including general and administrative expense | -833,000 | 213,000 | 258,000 | ' | ' |
Financing receivables | 58,141,000 | 53,123,000 | ' | ' | ' |
Financing receivables past due | 0 | ' | 0 | ' | ' |
Reserve for credit losses | ' | 0 | 0 | 0 | ' |
Sale of finance receivable | 24,500,000 | 17,000,000 | 14,300,000 | ' | ' |
Uncollectible financing receivables written-off | ' | 0 | 0 | 0 | ' |
Fair value of our forward contracts | 116,988,000 | 124,434,000 | ' | ' | ' |
Net losses on foreign currency exposures | 4,500,000 | 2,000,000 | 5,900,000 | ' | ' |
Net realized and unrealized (gain) loss on forward contracts (excluding the underlying foreign currency exposure being hedged) | 3,800,000 | 3,400,000 | 3,600,000 | ' | ' |
Development costs for software | 0 | ' | 0 | 0 | ' |
Amortizable intangible assets | 48,900,000 | 54,000,000 | ' | ' | ' |
Advertising expense | 2,200,000 | 4,200,000 | 2,800,000 | ' | ' |
Cumulative translation adjustment gains (loss) | -24,500,000 | -400,000 | ' | ' | ' |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | 95,925,000 | 74,357,000 | ' | ' | ' |
Pension benefits net of tax | -69,900,000 | -50,800,000 | ' | ' | ' |
Accounts Receivable [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Financing receivables, current | 44,600,000 | 36,100,000 | ' | ' | ' |
Other Assets [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Billed but uncollected maintenance receivable | 116,200,000 | 108,600,000 | ' | ' | ' |
Long-term accounts receivable from customers for contracts with extended payment terms | 13,500,000 | 17,000,000 | ' | ' | ' |
Other Current Assets [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Fair value of our forward contracts | 300,000 | ' | ' | ' | ' |
Other Current Liabilities [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Fair value of our forward contracts | 900,000 | 400,000 | ' | ' | ' |
Standard & Poor's, BBB-1 Rating and Above-Tier 1 [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Financing receivables | 41,152,000 | 42,189,000 | ' | ' | ' |
Internally Assigned Grade, Tier 2 [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Financing receivables | 16,989,000 | 10,934,000 | ' | ' | ' |
Internally Assigned Grade, Tier 3 [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Financing receivables | $0 | $0 | ' | ' | ' |
Minimum [Member] | Computer Hardware And Software [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amortization period, minimum (in years) | '3 years | ' | ' | ' | ' |
Minimum [Member] | Furniture And Fixtures [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amortization period, minimum (in years) | '3 years | ' | ' | ' | ' |
Maximum [Member] | Purchased Software [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amortization period, minimum (in years) | '11 years | ' | ' | ' | ' |
Maximum [Member] | Customer Lists [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amortization period, minimum (in years) | '12 years | ' | ' | ' | ' |
Maximum [Member] | Trademarks And Trade Names [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amortization period, minimum (in years) | '12 years | ' | ' | ' | ' |
Maximum [Member] | Computer Hardware And Software [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amortization period, minimum (in years) | '5 years | ' | ' | ' | ' |
Maximum [Member] | Furniture And Fixtures [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amortization period, minimum (in years) | '8 years | ' | ' | ' | ' |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Revenue Recognition) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
source | |||
Accounting Policies [Abstract] | ' | ' | ' |
Primary sources of revenue | 3 | ' | ' |
License revenue | $369,691 | $344,209 | $348,394 |
Maintenance revenue | 692,267 | 654,679 | 611,943 |
Total revenue | $1,356,967 | $1,293,541 | $1,255,679 |
Summary_Of_Significant_Account6
Summary Of Significant Accounting Policies (Deferred Revenue) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | $382,544 | $336,913 |
Deferred Maintenance Revenue [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | 335,827 | 312,721 |
Deferred Other Service Revenue [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | 19,775 | 18,793 |
Deferred License Revenue [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | $26,942 | $5,399 |
Summary_Of_Significant_Account7
Summary Of Significant Accounting Policies (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financial assets: | ' | ' | ||
Cash equivalents | $101,113 | [1] | $56,706 | [1] |
Forward contracts | 339 | 301 | ||
Financial assets | 101,452 | 57,007 | ||
Financial liabilities: | ' | ' | ||
Contingent consideration related to ThingWorx acquisition | 15,191 | 0 | ||
Forward contracts | 911 | 438 | ||
Financial liabilities | 16,102 | 438 | ||
Level 1 [Member] | ' | ' | ||
Financial assets: | ' | ' | ||
Cash equivalents | 101,113 | [1] | 56,706 | [1] |
Forward contracts | 0 | 0 | ||
Financial assets | 101,113 | 56,706 | ||
Financial liabilities: | ' | ' | ||
Contingent consideration related to ThingWorx acquisition | 0 | ' | ||
Forward contracts | 0 | 0 | ||
Financial liabilities | 0 | 0 | ||
Level 2 [Member] | ' | ' | ||
Financial assets: | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Forward contracts | 339 | 301 | ||
Financial assets | 339 | 301 | ||
Financial liabilities: | ' | ' | ||
Contingent consideration related to ThingWorx acquisition | 0 | ' | ||
Forward contracts | 911 | 438 | ||
Financial liabilities | 911 | 438 | ||
Level 3 [Member] | ' | ' | ||
Financial assets: | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Forward contracts | 0 | 0 | ||
Financial assets | 0 | 0 | ||
Financial liabilities: | ' | ' | ||
Contingent consideration related to ThingWorx acquisition | 15,191 | ' | ||
Forward contracts | 0 | 0 | ||
Financial liabilities | $15,191 | $0 | ||
[1] | Money market funds and time deposits. |
Summary_Of_Significant_Account8
Summary Of Significant Accounting Policies (Notional Amounts Of Outstanding Forward Contracts) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair value of our forward contracts | $116,988 | $124,434 |
Switzerland, Francs | ' | ' |
Derivative, Notional Amount | 1,200 | 9,678 |
Foreign Exchange Forward [Member] | Canada, Dollars | ' | ' |
Derivative, Notional Amount | 25,583 | 41,852 |
Foreign Exchange Forward [Member] | Euro Member Countries, Euro | ' | ' |
Derivative, Notional Amount | 61,751 | 50,902 |
Foreign Exchange Forward [Member] | United Kingdom, Pounds | ' | ' |
Derivative, Notional Amount | 14,259 | 0 |
Foreign Exchange Forward [Member] | Israel, New Shekels | ' | ' |
Derivative, Notional Amount | 6,144 | 3,413 |
Foreign Exchange Forward [Member] | Japan, Yen | ' | ' |
Derivative, Notional Amount | 0 | 6,496 |
Foreign Exchange Forward [Member] | All Other [Member] | ' | ' |
Derivative, Notional Amount | 8,051 | 12,093 |
Other Current Liabilities [Member] | ' | ' |
Fair value of our forward contracts | $900 | $400 |
Summary_Of_Significant_Account9
Summary Of Significant Accounting Policies (Earnings Per Share Basic And Diluted) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | 2,300,000 |
Net income (loss) | $160,194 | $143,769 | ($35,398) |
Weighted average shares outstanding (in shares) | 118,094,000 | 119,473,000 | 118,705,000 |
Dilutive effect of employee stock options, restricted shares and restricted stock units (in shares) | 1,890,000 | 1,767,000 | 0 |
Diluted weighted average shares outstanding (in shares) | 119,984,000 | 121,240,000 | 118,705,000 |
Basic earnings (loss) per share (in USD per share) | $1.36 | $1.20 | ($0.30) |
Diluted earnings (loss) per share (in USD per share) | $1.34 | $1.19 | ($0.30) |
Recovered_Sheet2
Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Excluded Antidilutive Securities) (Details) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 |
Accounting Policies [Abstract] | ' |
Anti-dilutive securities excluded from computation of EPS (in shares) | 2.3 |
Recovered_Sheet3
Summary Of Significant Accounting Policies (Related Party Transaction) (Details) (USD $) | 0 Months Ended | 16 Months Ended | ||
Nov. 15, 2013 | Nov. 15, 2012 | Nov. 27, 2013 | Mar. 15, 2015 | |
Director [Member] | Scenario, Forecast [Member] | |||
Restricted Stock [Member] | Director [Member] | |||
Restricted Stock [Member] | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Granted, value | ' | ' | $200,000 | ' |
Shares granted | ' | ' | 6,213 | ' |
Awards vested in period, percentage | 50.00% | 50.00% | ' | ' |
Estimated future fees to be paid, maximum | ' | ' | ' | $240,000 |
Recovered_Sheet4
Summary Of Significant Accounting Policies Software Development Costs (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Amortizable intangible assets | $48.90 | $54 |
Restructuring_Charges_Narrativ
Restructuring Charges (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Jun. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
employees | employees | employees | |||
Restructuring [Abstract] | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | $28,406,000 | $52,197,000 | $24,928,000 |
Restructuring Charges, Gross | 26,825,000 | ' | ' | 52,448,000 | ' |
Restructuring Reserve, Accrual Adjustment | ' | 1,600,000 | ' | 200,000 | ' |
Severance costs | ' | ' | ' | 51,000,000 | 24,400,000 |
Number of employees associated with costs | ' | ' | 283 | 553 | 209 |
Other restructuring costs (benefits) | ' | ' | ' | $1,500,000 | $500,000 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance, beginning of period | $19,529 | $4,461 | $666 |
Restructuring charges | 28,406 | 52,197 | 24,928 |
Cash disbursements | -20,575 | -37,199 | -20,947 |
Foreign currency impact | -990 | 70 | -186 |
Balance, end of period | 26,370 | 19,529 | 4,461 |
Employee Severance And Related Benefits [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance, beginning of period | 19,234 | 3,798 | 0 |
Restructuring charges | 27,918 | 50,874 | 24,391 |
Cash disbursements | -20,334 | -35,510 | -20,401 |
Foreign currency impact | -983 | 72 | -192 |
Balance, end of period | 25,835 | 19,234 | 3,798 |
Facility Closures and Other Costs [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance, beginning of period | 295 | 663 | 666 |
Restructuring charges | 488 | 1,323 | 537 |
Cash disbursements | -241 | -1,689 | -546 |
Foreign currency impact | -7 | -2 | 6 |
Balance, end of period | $535 | $295 | $663 |
Property_And_Equipment_Details
Property And Equipment (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Computer hardware and software | $230,591,000 | $217,724,000 | ' |
Furniture and fixtures | 19,025,000 | 19,211,000 | ' |
Leasehold improvements | 36,896,000 | 35,289,000 | ' |
Gross property and equipment | 286,512,000 | 272,224,000 | ' |
Accumulated depreciation and amortization | -218,729,000 | -207,572,000 | ' |
Net property and equipment | 67,783,000 | 64,652,000 | 63,466,000 |
Depreciation expense | $27,100,000 | $31,500,000 | $30,400,000 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jul. 23, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Nov. 17, 2014 | Dec. 27, 2013 | |
Atego [Member] | Atego [Member] | ThingWorx, Inc. [Member] | ThingWorx, Inc. [Member] | ThingWorx, Inc. [Member] | ThingWorx [Member] | Servigistics, Enigma and NetIDEAS [Member] | NetIDEAS and Enigma [Member] | Servigistics [Member] | Servigistics [Member] | Servigistics [Member] | 2014 Acquisitions [Member] | Axeda [Member] | Axeda [Member] | Purchased Software [Member] | Purchased Software [Member] | Purchased Software [Member] | Purchased Software [Member] | Customer Lists and Relationships [Member] | Customer Lists and Relationships [Member] | Customer Lists and Relationships [Member] | Trademarks And Trade Names [Member] | Trademarks And Trade Names [Member] | Trademarks And Trade Names [Member] | Trademarks And Trade Names [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | Segment, Software Products [Member] | Segment, Software Products [Member] | Segment, Software Products [Member] | Segment, Software Products [Member] | Services [Member] | Services [Member] | Services [Member] | Services [Member] | Subsequent Event [Member] | Line of Credit [Member] | ||||||
employees | employees | employees | employees | Atego [Member] | ThingWorx, Inc. [Member] | Axeda [Member] | Atego [Member] | ThingWorx, Inc. [Member] | Axeda [Member] | Atego [Member] | ThingWorx, Inc. [Member] | Axeda [Member] | Atego [Member] | ThingWorx [Member] | Axeda [Member] | Atego [Member] | ThingWorx [Member] | Servigistics [Member] | Axeda [Member] | Atego [Member] | ThingWorx [Member] | Servigistics [Member] | Axeda [Member] | ThingWorx [Member] | ||||||||||||||||||||
Revenue from acquisition | ' | $9,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $94,900,000 | ' | ' | $80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Liabilities, Net | ' | 136,196,000 | 120,796,000 | ' | ' | ' | 3,476,000 | ' | 8,934,000 | ' | ' | 38,672,000 | ' | ' | ' | ' | 21,600,000 | ' | 9,145,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related cost | ' | 12,700,000 | 9,900,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees added by acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cost of acquired entity, cash paid | ' | 323,525,000 | 245,843,000 | 220,000 | ' | 46,015,000 | 46,106,000 | ' | 111,519,000 | ' | ' | ' | 25,000,000 | 220,818,000 | ' | ' | ' | ' | 165,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit | ' | 1,386,250,000 | 0 | 230,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | 110,000,000 |
Acquisition of businesses, net cash acquired | ' | 9,575,000 | ' | ' | ' | ' | 3,550,000 | ' | 133,000 | ' | ' | ' | 1,000,000 | 1,400,000 | ' | ' | ' | ' | 9,575,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | 13,048,000 | ' | ' | 13,048,000 | ' | 0 | ' | ' | 13,048,000 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | ' | 16,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | ' | 2,143,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Number of Employees of Acquiree | ' | ' | ' | ' | ' | 110 | ' | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 160 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill acquired | ' | ' | ' | ' | ' | ' | 27,256,000 | ' | 102,190,000 | ' | 102,190,000 | ' | 14,300,000 | ' | ' | 139,833,000 | ' | ' | 130,443,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,256,000 | 102,190,000 | 127,033,000 | 126,034,000 | 0 | 0 | 12,800,000 | 4,409,000 | ' | ' |
Finite-lived Intangible Assets Acquired | ' | 59,170,000 | ' | ' | ' | ' | 27,750,000 | ' | 32,520,000 | ' | ' | ' | 15,200,000 | ' | ' | ' | ' | ' | ' | ' | 8,200,000 | 21,000,000 | 19,700,000 | 19,400,000 | 8,800,000 | 36,600,000 | ' | 150,000 | 2,300,000 | 2,800,000 | ' | 0 | 420,000 | 70,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Liabilities, Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets, change in valuation allowance | -124,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average useful lives of acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9 years | '11 years | '11 years | '9 years | '9 years | '9 years | '11 years | '9 years | '3 years | '12 years | '12 years | '3 years | ' | '3 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and Development in Process | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Pro_Forma_Financi
Acquisitions (Pro Forma Financial Information) (Details) (Servigistics [Member], USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Servigistics [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Revenue | $1,296.60 | $1,328.50 |
Net income | $116.50 | ($11.60) |
Earnings per share-Basic (in USD per share) | $0.98 | ($0.10) |
Earnings per share-Diluted (in USD per share) | $0.96 | ($0.10) |
Acquisitions_Acquisitions_Purc
Acquisitions Acquisitions (Purchase Price Allocation) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Axeda [Member] | Atego [Member] | Atego [Member] | ThingWorx [Member] | ThingWorx, Inc. [Member] | ThingWorx, Inc. [Member] | Servigistics [Member] | Servigistics [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Trademarks [Member] | Trademarks [Member] | Trademarks [Member] | Trademarks [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | Computer Software, Intangible Asset [Member] | Computer Software, Intangible Asset [Member] | Computer Software, Intangible Asset [Member] | Computer Software, Intangible Asset [Member] | |||||
Axeda [Member] | Atego [Member] | ThingWorx, Inc. [Member] | Axeda [Member] | Atego [Member] | ThingWorx, Inc. [Member] | Axeda [Member] | Atego [Member] | ThingWorx [Member] | Axeda [Member] | Atego [Member] | ThingWorx, Inc. [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Acquired During Period | ' | ' | ' | ' | $130,443 | ' | $27,256 | $102,190 | $102,190 | ' | ' | $139,833 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | -18,242 | ' | ' | ' | ' | ' | -6,058 | ' | -900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Liabilities, Net | -136,196 | -120,796 | ' | ' | -9,145 | ' | -3,476 | ' | -8,934 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 3,674 | ' | ' | ' | ' | ' | 634 | ' | -309 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Acquired from Acquisition | -9,575 | ' | ' | ' | -9,575 | ' | -3,550 | ' | -133 | ' | -1,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 175,475 | ' | ' | ' | ' | ' | 49,656 | ' | 124,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | 323,525 | 245,843 | 220 | ' | 165,900 | 46,015 | 46,106 | ' | 111,519 | ' | 220,818 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived Intangible Assets Acquired | 59,170 | ' | ' | ' | ' | ' | 27,750 | ' | 32,520 | ' | ' | ' | 36,600 | 19,400 | 8,800 | ' | 2,800 | 150 | 2,300 | ' | 70 | 0 | 420 | ' | 19,700 | 8,200 | 21,000 |
Weighted average useful lives of acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '11 years | '9 years | '9 years | '9 years | '12 years | '3 years | '12 years | '3 years | '2 years | ' | '3 years | '9 years | '9 years | '11 years | '11 years |
Business Combination, Consideration Transferred | ' | ' | ' | ' | ' | ' | ' | ' | 124,567 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ($13,048) | ' | ' | ($13,048) | $0 | ' | $0 | ' | ' | ($13,048) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 |
segments | ||
Number of reportable segments | 2 | ' |
Estimated aggregate future amortization expense for intangible assets, 2014 | ' | $54.70 |
Estimated aggregate future amortization expense for intangible assets, 2015 | ' | 51.2 |
Estimated aggregate future amortization expense for intangible assets, 2016 | ' | 48.6 |
Estimated aggregate future amortization expense for intangible assets, 2017 | ' | 46.3 |
Estimated aggregate future amortization expense for intangible assets, 2018 | ' | 36.7 |
Estimated aggregate future amortization expense for intangible assets, thereafter | ' | 99.4 |
Software Products [Member] | ' | ' |
Goodwill and acquired intangible assets | 979.3 | 1,283 |
Services [Member] | ' | ' |
Goodwill and acquired intangible assets | 62.9 | $66.40 |
Goodwill_and_Acquired_Intangib2
Goodwill and Acquired Intangible Assets (Goodwill and Acquired Intangible Assets) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||||||||||
In Thousands, unless otherwise specified | Purchased Software [Member] | Purchased Software [Member] | Capitalized Software [Member] | Capitalized Software [Member] | Customer Lists and Relationships [Member] | Customer Lists and Relationships [Member] | Trademarks And Trade Names [Member] | Trademarks And Trade Names [Member] | Other [Member] | Other [Member] | |||||||||||||||
Goodwill (not amortized), Net Book Value | $1,012,527 | $769,095 | $610,347 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 684,015 | [1] | 578,088 | [1] | ' | 278,012 | [1] | 233,566 | [1] | 22,877 | [1] | 22,877 | [1] | 360,530 | [1] | 304,434 | [1] | 18,479 | [1] | 13,427 | [1] | 4,117 | [1] | 3,784 | [1] |
Intangible assets with finite lives (amortized), Accumulated Amortization | 347,142 | [1] | 304,967 | [1] | ' | 162,259 | [1] | 148,127 | [1] | 22,877 | [1] | 22,877 | [1] | 147,469 | [1] | 120,338 | [1] | 10,964 | [1] | 10,097 | [1] | 3,573 | [1] | 3,528 | [1] |
Intangible assets with finite lives (amortized), Net Book Value | 336,873 | [1] | 273,121 | [1] | ' | 115,753 | [1] | 85,439 | [1] | 0 | [1] | 0 | [1] | 213,061 | [1] | 184,096 | [1] | 7,515 | [1] | 3,330 | [1] | 544 | [1] | 256 | [1] |
Total goodwill and acquired intangible assets | $1,349,400 | $1,042,216 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Weighted average useful lives (in years) | ' | ' | ' | '9 years | ' | ' | ' | '10 years | ' | '9 years | ' | '3 years | ' | ||||||||||||
[1] | The weighted average useful lives of purchased software, customer lists and relationships, trademarks and trade names and other intangible assets with a remaining net book value are 9 years, 10 years, 9 years and 3 years, respectively. |
Goodwill_and_Acquired_Intangib3
Goodwill and Acquired Intangible Assets (Schedule Of Movements of Goodwill by Reportable Segment) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Goodwill [Roll Forward] | ' | ' |
Balance, beginning of period | $769,095 | $610,347 |
Foreign currency translation and other adjustments | -16,457 | 4,568 |
Balance, end of period | 1,012,527 | 769,095 |
Software Products [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Balance, beginning of period | 720,548 | 585,469 |
Foreign currency translation and other adjustments | -16,260 | 4,476 |
Balance, end of period | 959,768 | 720,548 |
Services [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Balance, beginning of period | 48,547 | 24,878 |
Foreign currency translation and other adjustments | -197 | 92 |
Balance, end of period | 52,759 | 48,547 |
Servigistics [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | ' | 139,833 |
Servigistics [Member] | Software Products [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | ' | 127,033 |
Servigistics [Member] | Services [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | ' | 12,800 |
NetIDEAS [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | ' | 10,196 |
NetIDEAS [Member] | Software Products [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | ' | 0 |
NetIDEAS [Member] | Services [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | ' | 10,196 |
Enigma [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | ' | 4,151 |
Enigma [Member] | Software Products [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | ' | 3,570 |
Enigma [Member] | Services [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | ' | 581 |
ThingWorx [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | 102,190 | ' |
ThingWorx [Member] | Software Products [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | 102,190 | ' |
ThingWorx [Member] | Services [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | 0 | ' |
Atego [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | 27,256 | ' |
Atego [Member] | Software Products [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | 27,256 | ' |
Atego [Member] | Services [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | 0 | ' |
Axeda [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | 130,443 | ' |
Axeda [Member] | Software Products [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | 126,034 | ' |
Axeda [Member] | Services [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill acquired | $4,409 | ' |
Goodwill_and_Acquired_Intangib4
Goodwill and Acquired Intangible Assets (Amortization Of Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization of acquired intangible assets | $32,127 | $26,486 | $20,303 |
Cost of license revenue | 17,746 | 18,586 | 15,819 |
Amortization of Acquired Intangible Assets Recorded in Cost of Service Revenue | 366 | 0 | 0 |
Total amortization expense | $50,239 | $45,072 | $36,122 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Effective income tax rate | ' | 14.00% | -14.00% | 129.00% | ' |
Income before income taxes | ' | $186,112,000 | $126,234,000 | $120,736,000 | ' |
Statutory federal income tax rate | ' | 35.00% | 35.00% | 35.00% | ' |
Deferred tax assets, change in valuation allowance | 124,500,000 | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Withholding, Amount | ' | 5,100,000 | 6,000,000 | ' | ' |
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount | ' | ' | 5,300,000 | ' | ' |
Effect of change in the tax status of the foreign legal entity | ' | ' | ' | 4,200,000 | ' |
Effective income tax rate, one-time increase | ' | 0.00% | 0.00% | 3.00% | ' |
Tax provision related to research and development cost sharing prepayment | ' | 2,000,000 | ' | 7,800,000 | ' |
Deferred Tax Liabilities, Net | ' | 136,196,000 | 120,796,000 | ' | ' |
Prepaid income taxes | ' | 6,300,000 | 11,500,000 | ' | ' |
Income taxes payable | ' | 17,700,000 | 14,400,000 | ' | ' |
Accrued income taxes | ' | 9,300,000 | 7,100,000 | ' | ' |
Other current liabilities | ' | 1,300,000 | 2,100,000 | ' | ' |
Other liabilities | ' | 7,100,000 | 5,200,000 | ' | ' |
Income tax payments | ' | 25,500,000 | 35,400,000 | 53,000,000 | ' |
Net deferred tax assets | ' | 2,802,000 | 4,400,000 | ' | ' |
Net operating loss carryforwards | ' | 97,200,000 | ' | ' | ' |
Valuation allowance | 170,400,000 | 177,541,000 | 156,547,000 | 170,400,000 | 38,600,000 |
Interest expense | ' | 300,000 | -1,200,000 | 300,000 | ' |
Penalty expense | ' | 0 | ' | 100,000 | ' |
Interest expense related to income tax accruals | ' | 1,400,000 | 1,100,000 | ' | ' |
Accrued tax penalties | ' | ' | 100,000 | ' | ' |
Unrecognized tax benefit | 19,100,000 | 15,000,000 | 13,700,000 | 19,100,000 | 16,200,000 |
Income tax provision upon recognition of unrecognized tax benefit | ' | 13,800,000 | ' | ' | ' |
Unrecognized tax benefits, increase in valuation allowance upon recognition | ' | 7,600,000 | ' | ' | ' |
Unrecognized tax benefits, increase to additional paid-in capital upon recognition | ' | 1,200,000 | ' | ' | ' |
Potential decrease in unrecognized tax benefits | ' | 2,000,000 | ' | ' | ' |
Stock-based compensation | ' | 50,889,000 | 48,787,000 | 51,305,000 | ' |
Tax benefit recognition related to stock based compensation | ' | 700,000 | 2,700,000 | 3,900,000 | ' |
Increase (decrease) in income taxes payable | ' | -19,134,000 | 15,211,000 | 4,005,000 | ' |
Windfall tax deductions not yet recognized | ' | 21,000,000 | ' | ' | ' |
Undistributed Earnings of Foreign Subsidiaries | ' | 642,000,000 | 378,000,000 | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | ' | 9,022,000 | 5,994,000 | ' | ' |
Domestic Country [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Valuation allowance | ' | 144,000,000 | ' | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | ' | 9,000,000 | ' | ' | ' |
Domestic Country [Member] | Research Tax Credit Carryforward [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Credit carryforwards | ' | 17,700,000 | ' | ' | ' |
Foreign Country [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Net operating loss carryforwards | ' | 187,300,000 | ' | ' | ' |
Valuation allowance | ' | 33,500,000 | ' | ' | ' |
Credit carryforwards | ' | 7,400,000 | ' | ' | ' |
Japan [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Impact of a Japanese legislative change on our Japan entities' deferred tax assets | ' | ' | ' | 1,400,000 | ' |
Windfall Tax Benefit [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Increase (decrease) in income taxes payable | ' | 10,400,000 | 300,000 | 1,100,000 | ' |
Windfall tax deductions not yet recognized | ' | 21,000,000 | ' | ' | ' |
Massachusetts Research And Development Member | Research Tax Credit Carryforward [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Credit carryforwards | ' | 21,300,000 | ' | ' | ' |
2014 Acquisitions [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Deferred Tax Liabilities, Net | ' | 21,600,000 | ' | ' | ' |
Servigistics, Enigma and NetIDEAS [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Deferred Tax Liabilities, Net | ' | ' | 38,672,000 | ' | ' |
All Acquisitions [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Net operating loss carryforwards | ' | 82,700,000 | ' | ' | ' |
Axeda and ThingWorx [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Deferred tax assets, change in valuation allowance | ' | -18,100,000 | ' | ' | ' |
Net operating loss carryforwards | ' | 63,500,000 | ' | ' | ' |
Servigistics and Enigma [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Deferred tax assets, change in valuation allowance | ' | ' | -36,700,000 | ' | ' |
Prior Acquisitions [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Net operating loss carryforwards | ' | 19,200,000 | ' | ' | ' |
Deferred Tax Asset, Pension [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Deferred tax assets, change in valuation allowance | ' | ($7,900,000) | ' | ' | ' |
Income_Taxes_Summary_Of_Income
Income Taxes (Summary Of Income (Loss) Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | $17,038 | $6,112 | ($11,422) |
Foreign | 169,074 | 120,122 | 132,158 |
Total income before income taxes | $186,112 | $126,234 | $120,736 |
Income_Taxes_Schedule_Of_Provi
Income Taxes (Schedule Of Provision For (Benefit From) Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal | $12,792 | $7,081 | $8,534 |
State | 2,062 | 1,512 | 1,733 |
Foreign | 31,010 | 13,586 | 41,101 |
Current provision for income taxes | 45,864 | 22,179 | 51,368 |
Federal | -13,200 | -38,224 | 106,041 |
State | -2,085 | -4,718 | 7,706 |
Foreign | -4,661 | 3,228 | -8,981 |
Deferred provision for (benefit from) income taxes | -19,946 | -39,714 | 104,766 |
Total provision for income taxes | $25,918 | ($17,535) | $156,134 |
Income_Taxes_Summary_Of_Federa
Income Taxes (Summary Of Federal Income Tax Rate And Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Change in valuation allowance | -11.00% | -32.00% | 103.00% |
State income taxes, net of federal tax benefit | 1.00% | 1.00% | 0.00% |
Federal and state research and development credits | 0.00% | -1.00% | -1.00% |
Tax audit and examination settlements | 0.00% | -1.00% | 1.00% |
Foreign rate differences | -19.00% | -26.00% | -16.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Withholding, Percent | 3.00% | 5.00% | 3.00% |
Subsidiary reorganization | 0.00% | 0.00% | 3.00% |
Other, net | 5.00% | 5.00% | 1.00% |
Effective income tax rate | 14.00% | -14.00% | 129.00% |
Income_Taxes_Schedule_Of_Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
In Thousands, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Net operating loss carryforwards | $65,640 | $47,770 | ' | ' |
Foreign tax credits | 9,022 | 5,994 | ' | ' |
Capitalized research and development expense | 41,720 | 51,237 | ' | ' |
Pension benefits | 39,063 | 30,870 | ' | ' |
Deferred maintenance revenue | 67,433 | 63,976 | ' | ' |
Stock-based compensation | 16,744 | 18,045 | ' | ' |
Other reserves not currently deductible | 25,258 | 19,343 | ' | ' |
Amortization of intangible assets | 9,302 | 5,772 | ' | ' |
Other tax credits | 30,982 | 31,263 | ' | ' |
Depreciation | 3,157 | 3,077 | ' | ' |
Other | 8,218 | 4,396 | ' | ' |
Gross deferred tax assets | 316,539 | 281,743 | ' | ' |
Valuation allowance | -177,541 | -156,547 | -170,400 | -38,600 |
Total deferred tax assets | 138,998 | 125,196 | ' | ' |
Acquired intangible assets not deductible | -110,003 | -88,134 | ' | ' |
Pension prepayments | -20,263 | -15,607 | ' | ' |
Deferred revenue | -1,446 | -12,592 | ' | ' |
Other | -4,484 | -4,463 | ' | ' |
Total deferred tax liabilities | 136,196 | 120,796 | ' | ' |
Net deferred tax assets | $2,802 | $4,400 | ' | ' |
Income_Taxes_Summary_Of_Valuat
Income Taxes (Summary Of Valuation Allowance) (Details) (USD $) | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Valuation allowance beginning of year | $156,547,000 | $170,400,000 | $38,600,000 | |||
Net release of valuation allowance | -18,100,000 | [1] | -44,600,000 | [1] | 0 | [1] |
Establish valuation allowance in the U.S. on foreign tax credits | 0 | 0 | 124,500,000 | |||
Net increase in deferred tax assets for foreign jurisdictions with a full valuation allowance | -5,200,000 | 1,900,000 | -2,100,000 | |||
Net decrease in deferred tax assets for foreign jurisdictions with a full valuation allowance | 21,500,000 | 12,100,000 | 0 | |||
Establish valuation allowance in foreign jurisdictions | 3,500,000 | 0 | 600,000 | |||
Adjust deferred tax asset and valuation allowance in the U.S. primarily for tax credits | 19,300,000 | 16,700,000 | 8,800,000 | |||
Valuation allowance end of year | $177,541,000 | $156,547,000 | $170,400,000 | |||
[1] | In 2014 and 2013, this is attributable to recognition of deferred tax liabilities recorded in connection with accounting for acquisitions and in 2013 a reduction in deferred tax assets associated with our U.S. pension plan, both of which are described above. |
Income_Taxes_Schedule_Of_Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Unrecognized tax benefit beginning of year | $13.70 | $19.10 | $16.20 |
Tax positions related to current year: | ' | ' | ' |
Additions | 2.2 | 1 | 3.4 |
Tax positions related to prior years: | ' | ' | ' |
Additions | 0.3 | 1.8 | 1.4 |
Reductions | -0.1 | -6.3 | -0.5 |
Settlements | -0.6 | -0.7 | 0 |
Statute expirations | -0.5 | -1.2 | -1.4 |
Unrecognized tax benefit end of year | $15 | $13.70 | $19.10 |
Long_Term_Debt_Details
Long Term Debt (Details) (USD $) | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2010 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, additional borrowing limit | $250,000,000 | ' | ' | ' |
Credit facility, borrowings outstanding | 611,900,000 | ' | ' | 0 |
Borrowings under revolving credit facility | 1,386,250,000 | 0 | 230,000,000 | ' |
Voting interest in foreign subsidiaries pledged against credit facility | 65.00% | ' | ' | ' |
Investment limit in foreign subsidiaries | 75,000,000 | ' | ' | ' |
Cash investment limit for acquisition of business | 150,000,000 | ' | ' | ' |
Maximum leverage ratio allowed under debt covenant | 3 | ' | ' | ' |
Minimum fixed charge coverage ratio allowed under debt covenant | 3.5 | ' | ' | ' |
Leverage ratio, actual | 1.82 | ' | ' | ' |
Fixed charge coverage ratio, actual | 17.7 | ' | ' | ' |
Credit facility, origination costs | 7,900,000 | ' | 1,900,000 | ' |
Credit facility, periodic interest payment | 5,700,000 | 5,800,000 | 3,700,000 | ' |
Credit facility, average interest rate during period | 1.60% | 1.70% | 1.80% | ' |
Maximum [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, variable interest rate, length of time between updates | '180 days | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, variable interest rate, length of time between updates | '30 days | ' | ' | ' |
Term Loan [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, current maximum amount | 500,000,000 | ' | ' | ' |
Credit facility, revolving loan, repayments of principal due in 2014 | 25,000,000 | ' | ' | ' |
Credit facility, revolving loan, repayments of principal due in 2015 | 50,000,000 | ' | ' | ' |
Credit facility, revolving loan, repayments of principal due in 2016 | 50,000,000 | ' | ' | ' |
Credit facility, revolving loan, repayments of principal due in 2017 | 75,000,000 | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 300,000,000 | ' | ' | ' |
Credit facility, borrowings outstanding | 500,000,000 | ' | ' | ' |
Credit facility, term loan, interest rate at period end | 1.63% | ' | ' | ' |
Line of Credit [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, current maximum amount | 1,000,000,000 | ' | ' | ' |
Credit facility, borrowings outstanding | $111,900,000 | ' | ' | ' |
Credit facility, revolving loan, basis spread on federal funds effective rate | 0.01% | ' | ' | ' |
Credit facility, revolving loan, basis spread on adjusted LIBOR | 1.00% | ' | ' | ' |
Line of Credit [Member] | Maximum [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, revolving loan, commitment fees percentage | 0.25% | ' | ' | ' |
Line of Credit [Member] | Minimum [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, revolving loan, commitment fees percentage | 0.18% | ' | ' | ' |
LIBOR for Eurodollar-Based Borrowings [Member] | Line of Credit [Member] | Maximum [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ' | ' | ' |
LIBOR for Eurodollar-Based Borrowings [Member] | Line of Credit [Member] | Minimum [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ' | ' | ' |
Base Rate [Member] | Line of Credit [Member] | Maximum [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | 0.50% | ' | ' |
Base Rate [Member] | Line of Credit [Member] | Minimum [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ' | ' | ' |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 01, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments And Contingencies [Line Items] | ' | ' | ' | ' |
Lease expense, net of sublease income | ' | $38.60 | $38.40 | $37.80 |
Lease renewal term | '10 years | ' | ' | ' |
Annual base rent plus operating expenses | ' | 7.4 | ' | ' |
Additional term of lease renewal | ' | '10 years | ' | ' |
Landlord reimbursements | ' | 12.8 | ' | ' |
Letters of credit and bank guarantees outstanding | ' | 3.6 | 3.9 | ' |
Bank guarantees outstanding collateralized | ' | 0.9 | 1 | ' |
Ceiling percentage of revenue for major customer | ' | 10.00% | ' | ' |
CHINA | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | Minimum [Member] | ' | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' | ' |
Ceiling percentage of revenue for major customer | ' | 5.00% | ' | ' |
CHINA | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | Maximum [Member] | ' | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' | ' |
Ceiling percentage of revenue for major customer | ' | 7.00% | ' | ' |
Pending or Threatened Litigation [Member] | ' | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' | ' |
Loss contingency accrual | ' | $4.70 | ' | ' |
Commitments_And_Contingencies_2
Commitments And Contingencies (Future Minimum Lease Payments) (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2013 | $40,233 |
2014 | 32,371 |
2015 | 23,974 |
2016 | 20,203 |
2017 | 16,594 |
Thereafter | 39,191 |
Total minimum lease payments | $172,566 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
Aug. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 14, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 14, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Series A Junior Participating Preferred Stock [Member] | Accelerated Share Repurchases, Date [Domain] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | ||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | 5,000,000 | 5,000,000 | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock authorized to repurchase | $600,000,000 | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accelerated Share Repurchases, Settlement (Payment) or Receipt | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchase holdback | ' | 187,415,000 | ' | ' | ' | ' | ' | 23,000 | ' | ' | ' | 87,500,000 | 37,500,000 | ' | ' |
Repurchases of common stock, shares | ' | 5,068,000 | 3,053,000 | 1,553,000 | ' | ' | 2,300,000 | ' | 5,068,000 | 3,053,000 | 1,553,000 | ' | ' | ' | ' |
Percentage of initial shares to total fixed purchase price | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shares that could be issued under Accelerated Share Repurchase program | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum % of shares that could be issued under Accelerated Share Repurchase Plan | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchases of common stock, value | ' | $224,915,000 | $74,871,000 | $34,953,000 | ' | ' | ' | ' | $51,000 | $31,000 | $15,000 | ' | $187,364,000 | $74,840,000 | $34,938,000 |
Shares that would be deliverable upon settlement of accelerated share repurchase plan | ' | 982,419 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity_Incentive_Plan_Narrativ
Equity Incentive Plan (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jul. 31, 2005 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock issuable per restricted stock unit | ' | 1 | ' | ' |
Total unrecognized compensation cost | ' | $65.40 | ' | ' |
Weighted average remaining recognition period, in months | ' | '18 months | ' | ' |
Common stock were available for grant under the 2000 plan | ' | 5,100,000 | ' | ' |
Common stock were reserved for issuance | ' | 4,400,000 | ' | ' |
Shares retained by company to cover tax withholdings | ' | 800,000 | 700,000 | 900,000 |
Employee tax withholdings | ' | $26.90 | $15 | $21 |
Award vesting period | '4 years | ' | ' | ' |
Award expiration period | '10 years | ' | ' | ' |
Options outstanding and exercisable (in shares) | ' | 9,000 | ' | ' |
Directors And Executive Officers [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Pre-vesting forfeiture rate | ' | 0.00% | ' | ' |
Other Employees [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Pre-vesting forfeiture rate | ' | 7.00% | ' | ' |
Restricted Shares and Restricted Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average fair value per share | ' | $33.88 | $22.87 | $20.16 |
Minimum [Member] | Vice President [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Pre-vesting forfeiture rate | ' | 2.00% | ' | ' |
Maximum [Member] | Vice President [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Pre-vesting forfeiture rate | ' | 4.00% | ' | ' |
Equity_Incentive_Plan_Total_St
Equity Incentive Plan (Total Stock Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $50,889 | $48,787 | $51,305 |
Cost Of License Revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 17 | 21 | 22 |
Cost Of Service Revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 6,648 | 6,134 | 5,682 |
Cost of Support Revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 3,745 | 3,324 | 3,234 |
Sales And Marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 10,982 | 11,326 | 13,809 |
Research And Development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 10,119 | 8,590 | 8,761 |
General And Administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $19,378 | $19,392 | $19,797 |
Equity_Incentive_Plan_Restrict
Equity Incentive Plan (Restricted Stock Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' |
Shares, Beginning Balance of outstanding restricted stock | 5,000 |
Shares, Vested | -5,000 |
Shares, Ending Balance of outstanding restricted stock | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Weighted Average Grant Date Fair Value, Beginning Balance of outstanding restricted stock | $21.27 |
Weighted Average Grant Date Fair Value, Vested | $21.27 |
Weighted Average Grant Date Fair Value, Ending Balance of outstanding restricted stock | $0 |
Intrinsic value [Abstract] | ' |
Aggregate Intrinsic Value, Ending Balance of outstanding restricted stock | $0 |
Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' |
Shares, Beginning Balance of outstanding restricted stock | 5,186,000 |
Shares, Granted | 1,943,000 |
Shares, Vested | -2,370,000 |
Shares, Forfeited or not earned | -380,000 |
Shares, Ending Balance of outstanding restricted stock | 4,379,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Weighted Average Grant Date Fair Value, Beginning Balance of outstanding restricted stock | $21.67 |
Weighted Average Grant Date Fair Value, Granted | $33.88 |
Weighted Average Grant Date Fair Value, Vested | $21.63 |
Weighted Average Grant Date Fair Value, Forfeited or not earned | $24.26 |
Weighted Average Grant Date Fair Value, Ending Balance of outstanding restricted stock | $26.87 |
Intrinsic value [Abstract] | ' |
Aggregate Intrinsic Value, Ending Balance of outstanding restricted stock | $161,595 |
Equity_Incentive_Plan_Restrict1
Equity Incentive Plan (Restricted Stock And Restricted Stock Unit Grants) (Details) (Restricted Stock Units [Member]) | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Sep. 30, 2014 | |||
Performance-based Award [Member] | Performance-based Award [Member] | Performance-based Award [Member] | Time-based Award [Member] | ||||
To vest on November 15, 2016, 2017 and 2018 [Member] | Vest in 3 Substantially Equal Installments on Later of November 15, 2014, November 15, 2015 and November 15, 2016 or Dates Specified by Compensation Committee [Member] [Member] | installment | |||||
installment | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ||
Shares, Granted | 1,943,000 | 451,000 | [1] | 87,000 | ' | 1,492,000 | [2] |
Number of equal annual installments | ' | ' | ' | 3 | 3 | ||
[1] | The performance-based RSUs were granted to employees, including our executive officers. Approximately 87,000 of these RSUs are eligible to vest in three substantially equal installments in November 2016, 2017 and 2018 based on achievement of the applicable performance criteria. Substantially all other performance-based RSUs are eligible to vest in three substantially equal installments in November 2014, 2015 and 2016 to the extent the applicable performance criteria have been achieved. RSUs not earned for a period may be earned in subsequent periods. | ||||||
[2] | The time-based RSUs were issued to directors and employees, including some of our executive officers. The time-based RSUs issued to employees and executives generally vest in three substantially equal annual installments from the date of grant. Substantially all of the time-based RSUs issued to our directors will vest one year from the date of grant. |
Equity_Incentive_Plan_Value_Of
Equity Incentive Plan (Value Of Stock Option And Stock-Based Award Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | ' | ' |
Total intrinsic value of stock options exercised | $2,040 | $6,525 | $31,746 |
Total fair value of restricted stock and restricted stock unit awards vested | $79,660 | $48,083 | $65,574 |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (Savings Plan [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Savings Plan [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Defined contribution plan, percentage of employee's contributions matched by employer | 50.00% | ' | ' |
Defined contribution plan, percentage of employer contribution on employee's earnings | 6.00% | ' | ' |
Defined contribution plan, employers contribution, rate of vesting, percentage | 25.00% | ' | ' |
Defined contribution plan, vesting period | '4 years | ' | ' |
Matching contributions by employer | $5.10 | $5 | $4.90 |
Pension_Plans_Narrative_Detail
Pension Plans (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | |||||||
Frozen Plans [Member] | U.S. Plan [Member] | U.S. Plan [Member] | U.S. Plan [Member] | International Plans [Member] | International Plans [Member] | International Plans [Member] | U.S. Plan And The German Co Create Plan [Member] | Cocreate Member | Other International Plans [Member] | Minimum [Member] | Maximum [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | ||||||||||
U.S. Plan [Member] | Subsequent Year, Estimated Cost [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Defined Benefit Plan, Curtailments | $0 | $1,608,000 | ' | ' | $0 | $0 | ' | $0 | $1,608,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | ' | ' | ' | 0.00% | 0.00% | [1] | 0.00% | [1] | 0.00% | [1] | 3.00% | [1] | 3.00% | [1] | 3.00% | [1] | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plans, vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '5 years | ' | ' | ' | ||||||
Long-term rate of return | ' | ' | ' | ' | 1.35% | ' | ' | 5.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net periodic pension cost | ' | ' | ' | ' | 523,000 | 2,013,000 | 3,045,000 | 2,771,000 | 3,517,000 | 2,841,000 | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ||||||
Actuarial loss expected to be recognized in the following year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,800,000 | ' | ' | ||||||
Current asset allocation target for equity securities | 100.00% | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ||||||
Current asset allocation target for fixed income securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 40.00% | 100.00% | ' | ' | ' | ' | ' | ||||||
Actual return on plan assets gain (loss) | 15,900,000 | 13,600,000 | 16,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Employer contributions | 12,900,000 | 10,000,000 | 7,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Expected 2013 employer contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ||||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | 95,925,000 | 74,357,000 | ' | ' | 68,256,000 | 55,180,000 | ' | 27,669,000 | 19,177,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Defined Benefit Plan, Contributions by Employer | $12,905,000 | $9,969,000 | ' | ' | $10,552,000 | $6,961,000 | ' | $2,353,000 | $3,008,000 | ' | ' | ' | ' | ' | ' | ' | $25,000,000 | ' | ||||||
[1] | The rate of increase in future compensation is weighted for all plans, ongoing and frozen (with a 0% increase for frozen plans). The weighted rate of increase for ongoing non-U.S. plans was 3% at SeptemberB 30, 2014 and 2013. |
Pension_Plans_Accounting_For_T
Pension Plans (Accounting For The Pension Plans) (Details) | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Non U S Plans [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Weighted average assumptions used to determine net periodic pension costs for fiscals years ended September 30, Rate of increase of future compensation | ' | ' | 3.00% | |||
U.S. Plan [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Discount rate | 3.80% | 4.90% | 4.00% | |||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Rate of increase in future compensation | 0.00% | [1] | 0.00% | [1] | 0.00% | [1] |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Discount rate | 4.90% | 4.00% | 4.50% | |||
Weighted average assumptions used to determine net periodic pension costs for fiscals years ended September 30, Rate of increase of future compensation | 0.00% | 0.00% | 0.00% | |||
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Rate of return on plan assets | 7.25% | 7.25% | 7.25% | |||
International Plans [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Discount rate | 2.38% | 3.28% | 3.40% | |||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Rate of increase in future compensation | 3.00% | [1] | 3.00% | [1] | 3.00% | [1] |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Discount rate | 3.28% | 3.38% | 4.80% | |||
Weighted average assumptions used to determine net periodic pension costs for fiscals years ended September 30, Rate of increase of future compensation | 3.00% | 3.00% | 3.00% | |||
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Rate of return on plan assets | 5.70% | 5.40% | 5.40% | |||
Frozen Plans [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Rate of increase in future compensation | 0.00% | ' | ' | |||
[1] | The rate of increase in future compensation is weighted for all plans, ongoing and frozen (with a 0% increase for frozen plans). The weighted rate of increase for ongoing non-U.S. plans was 3% at SeptemberB 30, 2014 and 2013. |
Pension_Plans_Components_Of_Ne
Pension Plans (Components Of Net Periodic Pension Cost) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost of projected benefit obligation | $7,903 | $7,373 | ' |
Service cost | 1,659 | 2,017 | ' |
U.S. Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost of projected benefit obligation | 5,461 | 4,989 | 5,490 |
Service cost | 0 | 0 | 0 |
Expected return on plan assets | -7,151 | -6,128 | -5,412 |
Amortization of prior service cost | 0 | 0 | 0 |
Recognized actuarial loss (gain) | 2,213 | 3,152 | 2,967 |
Net periodic pension cost | 523 | 2,013 | 3,045 |
International Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost of projected benefit obligation | 2,442 | 2,384 | 2,554 |
Service cost | 1,659 | 2,017 | 1,882 |
Expected return on plan assets | -2,506 | -2,126 | -1,929 |
Amortization of prior service cost | -5 | -6 | -7 |
Recognized actuarial loss (gain) | 1,181 | 1,248 | 341 |
Net periodic pension cost | $2,771 | $3,517 | $2,841 |
Pension_Plans_Change_In_Benefi
Pension Plans (Change In Benefit Obligation And Plan Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Projected benefit obligationbbeginning of year | $188,334 | $201,109 | ' |
Service cost | 1,659 | 2,017 | ' |
Interest cost | 7,903 | 7,373 | ' |
Actuarial loss | 33,295 | -11,302 | ' |
Foreign exchange impact | -6,480 | 629 | ' |
Participant contributions | 325 | 432 | ' |
Benefits paid | -6,477 | -10,316 | ' |
Plan Amendments | 0 | -1,608 | ' |
Projected benefit obligationbend of year | 218,559 | 188,334 | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Plan assets at fair value-beginning of year | 138,193 | 124,833 | ' |
Actual return on plan assets | 15,914 | 13,610 | ' |
Employer contributions | 12,905 | 9,969 | ' |
Participant contributions | 325 | 432 | ' |
Foreign exchange impact | -3,510 | -335 | ' |
Benefits paid | -6,477 | -10,316 | ' |
Plan assets at fair value-end of year | 157,350 | 138,193 | ' |
Underfunded status | -61,209 | -50,141 | ' |
Accumulated benefit obligation-end of year | 214,817 | 184,891 | ' |
Non-current liability | -39,615 | -50,141 | ' |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | -21,594 | 0 | ' |
Unrecognized actuarial loss | 95,925 | 74,357 | ' |
U.S. Plan [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Projected benefit obligationbbeginning of year | 113,378 | 129,701 | ' |
Service cost | 0 | 0 | 0 |
Interest cost | 5,461 | 4,989 | 5,490 |
Actuarial loss | 20,563 | -12,728 | ' |
Foreign exchange impact | 0 | 0 | ' |
Participant contributions | 0 | 0 | ' |
Benefits paid | -4,949 | -8,584 | ' |
Plan Amendments | 0 | 0 | ' |
Projected benefit obligationbend of year | 134,453 | 113,378 | 129,701 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Plan assets at fair value-beginning of year | 94,831 | 86,016 | ' |
Actual return on plan assets | 12,425 | 10,438 | ' |
Employer contributions | 10,552 | 6,961 | ' |
Participant contributions | 0 | 0 | ' |
Foreign exchange impact | 0 | 0 | ' |
Benefits paid | -4,949 | -8,584 | ' |
Plan assets at fair value-end of year | 112,859 | 94,831 | 86,016 |
Underfunded status | -21,594 | -18,547 | ' |
Accumulated benefit obligation-end of year | 134,453 | 113,378 | ' |
Non-current liability | 0 | -18,547 | ' |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | -21,594 | 0 | ' |
Unrecognized actuarial loss | 68,256 | 55,180 | ' |
International Plans [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Projected benefit obligationbbeginning of year | 74,956 | 71,408 | ' |
Service cost | 1,659 | 2,017 | 1,882 |
Interest cost | 2,442 | 2,384 | 2,554 |
Actuarial loss | 12,732 | 1,426 | ' |
Foreign exchange impact | -6,480 | 629 | ' |
Participant contributions | 325 | 432 | ' |
Benefits paid | -1,528 | -1,732 | ' |
Plan Amendments | 0 | -1,608 | ' |
Projected benefit obligationbend of year | 84,106 | 74,956 | 71,408 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Plan assets at fair value-beginning of year | 43,362 | 38,817 | ' |
Actual return on plan assets | 3,489 | 3,172 | ' |
Employer contributions | 2,353 | 3,008 | ' |
Participant contributions | 325 | 432 | ' |
Foreign exchange impact | -3,510 | -335 | ' |
Benefits paid | -1,528 | -1,732 | ' |
Plan assets at fair value-end of year | 44,491 | 43,362 | 38,817 |
Underfunded status | -39,615 | -31,594 | ' |
Accumulated benefit obligation-end of year | 80,364 | 71,513 | ' |
Non-current liability | -39,615 | -31,594 | ' |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | 0 | ' |
Unrecognized actuarial loss | $27,669 | $19,177 | ' |
Pension_Plans_Percentage_Of_To
Pension Plans (Percentage Of Total Plan Assets) (Details) | Sep. 30, 2014 | Sep. 30, 2013 |
U.S. Plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 100.00% | 100.00% |
International Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 100.00% | 100.00% |
Equity Securities [Member] | U.S. Plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 0.00% | 62.00% |
Equity Securities [Member] | International Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 51.00% | 51.00% |
Fixed Income Securities [Member] | U.S. Plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 100.00% | 38.00% |
Fixed Income Securities [Member] | International Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 28.00% | 27.00% |
Insurance Company [Member] | U.S. Plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Insurance company | 0.00% | 0.00% |
Insurance Company [Member] | International Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Insurance company | 19.00% | 19.00% |
Cash [Member] | U.S. Plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 0.00% | 0.00% |
Cash [Member] | International Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 2.00% | 3.00% |
Pension_Plans_Expected_Future_
Pension Plans (Expected Future Benefit Payments) (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | ' |
2013 | $136,486 |
2014 | 2,040 |
2015 | 2,139 |
2016 | 2,558 |
2017 | 2,837 |
2018 to 2022 | 21,557 |
U.S. Plan [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2013 | 134,453 |
2014 | 0 |
2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 to 2022 | 0 |
International Plans [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2013 | 2,033 |
2014 | 2,040 |
2015 | 2,139 |
2016 | 2,558 |
2017 | 2,837 |
2018 to 2022 | $21,557 |
Pension_Plans_Fair_Value_Of_Pl
Pension Plans (Fair Value Of Plan Assets) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
In Thousands, unless otherwise specified | ||||
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | $157,350 | $138,193 | $124,833 | |
U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 112,859 | ' | ' | |
International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 44,491 | ' | ' | |
U.S. Treasury, Agency And Other Local Government And Non-Corporate [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 25,025 | ' | ' | |
Corporate Investment Grade [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 87,538 | ' | ' | |
Corporate High Yield [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 26 | ' | ' | |
Government [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 4,910 | ' | ' | |
Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 7,769 | ' | ' | |
Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 22,746 | ' | ' | |
Insurance Company Funds [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 8,235 | [1] | ' | ' |
Cash [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 270 | ' | ' | |
Cash [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 831 | ' | ' | |
Level 1 [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 1 [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 36,256 | ' | ' | |
Level 1 [Member] | U.S. Treasury, Agency And Other Local Government And Non-Corporate [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 1 [Member] | Corporate Investment Grade [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 1 [Member] | Corporate High Yield [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 1 [Member] | Government [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 4,910 | ' | ' | |
Level 1 [Member] | Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 7,769 | ' | ' | |
Level 1 [Member] | Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 22,746 | ' | ' | |
Level 1 [Member] | Insurance Company Funds [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | [1] | ' | ' |
Level 1 [Member] | Cash [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 1 [Member] | Cash [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 831 | ' | ' | |
Level 2 [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 112,859 | ' | ' | |
Level 2 [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 8,235 | ' | ' | |
Level 2 [Member] | U.S. Treasury, Agency And Other Local Government And Non-Corporate [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 25,025 | ' | ' | |
Level 2 [Member] | Corporate Investment Grade [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 87,538 | ' | ' | |
Level 2 [Member] | Corporate High Yield [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 26 | ' | ' | |
Level 2 [Member] | Government [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 2 [Member] | Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 2 [Member] | Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 2 [Member] | Insurance Company Funds [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 8,235 | [1] | ' | ' |
Level 2 [Member] | Cash [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 270 | ' | ' | |
Level 2 [Member] | Cash [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | U.S. Treasury, Agency And Other Local Government And Non-Corporate [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | Corporate Investment Grade [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | Corporate High Yield [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | Government [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | Insurance Company Funds [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | [1] | ' | ' |
Level 3 [Member] | Cash [Member] | U.S. Plan Assets Common Collective Trusts [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | 0 | ' | ' | |
Level 3 [Member] | Cash [Member] | International Plan Assets [Member] | ' | ' | ' | |
Fair Value of Plan Assets [Line Items] | ' | ' | ' | |
Fair value of plan assets | $0 | ' | ' | |
[1] | These investments are comprised primarily of funds invested with an insurance company in Japan with a guaranteed rate of return. The insurance company invests these assets primarily in government and corporate bonds. |
Segment_Information_Revenue_An
Segment Information (Revenue And Operating Income) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Revenue | $1,356,967 | $1,293,541 | $1,255,679 | ||
Operating income | 196,576 | 127,324 | 128,096 | ||
Sales and marketing expenses | -371,392 | -378,771 | [1] | -392,956 | [1] |
General and administrative expenses | -144,003 | -136,999 | [1] | -119,085 | [1] |
Other income (expense), net | -10,464 | -1,090 | -7,360 | ||
Income before income taxes | 186,112 | 126,234 | 120,736 | ||
Restructuring charges | 28,406 | 52,197 | 24,928 | ||
Depreciation and amortization | 77,307 | 76,551 | 66,471 | ||
Software Products [Member] | ' | ' | ' | ||
Revenue | 1,032,230 | 977,523 | 935,472 | ||
Operating income | 663,593 | 605,963 | [1] | 598,344 | [1] |
Restructuring charges | 2,800 | 17,700 | 4,100 | ||
Depreciation and amortization | 30,000 | 32,000 | 30,800 | ||
Services [Member] | ' | ' | ' | ||
Revenue | 324,737 | 316,018 | 320,207 | ||
Operating income | 48,378 | 37,131 | [1],[2] | 41,793 | [1],[2] |
Restructuring charges | 9,800 | 11,300 | 4,000 | ||
Depreciation and amortization | 7,400 | 6,100 | 4,800 | ||
General And Administrative [Member] | ' | ' | ' | ||
Restructuring charges | 1,800 | 5,100 | 1,600 | ||
Sales And Marketing [Member] | ' | ' | ' | ||
Restructuring charges | $13,900 | $18,100 | $15,200 | ||
[1] | We recorded restructuring charges of $28.4 million in 2014. Software Products included $2.8 million; Services included $9.8 million; sales and marketing expenses included $13.9 million; and general and administrative expenses included $1.8 million of the total restructuring charges recorded in 2014.We recorded restructuring charges of $52.2 million in 2013. Software Products included $17.7 million; Services included $11.3 million; sales and marketing expenses included $18.1 million; and general and administrative expenses included $5.1 million of the total restructuring charges recorded in 2013. We recorded restructuring charges of $24.9 million in 2012. Software Products included $4.1 million; Services included $4.0 million; sales and marketing expenses included $15.2 million; and general and administrative expenses included $1.6 million of the total restructuring charges recorded in 2012. | ||||
[2] | The Software Products segment operating income includes depreciation and amortization of $30.0 million, $32.0 million, and $30.8 million in 2014, 2013, and 2012, respectively. The Services segment operating income includes depreciation and amortization of $7.4 million, $6.1 million, and $4.8 million in 2014, 2013, and 2012, respectively.We report revenue by the following three product areas: b"CAD: PTC CreoB. and PTC MathcadB.. b"EPLM: PLM solutions (primarily PTC WindchillB. and PTC CreoB. ViewTM ) and ALM solutions (primarily PTC Integrityb"). b"SLM & IoT: PTC ArbortextB. , PTC ServigisticsB., ThingWorxB. and AxedaB.. |
Segment_Information_Revenue_By
Segment Information (Revenue By Product Segment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue | $1,356,967 | $1,293,541 | $1,255,679 |
CAD [Member] | ' | ' | ' |
Revenue | 581,508 | 552,442 | 573,457 |
Extended PLM [Member] | ' | ' | ' |
Revenue | 599,312 | 571,058 | 604,339 |
SLM [Member] | ' | ' | ' |
Revenue | $176,147 | $170,041 | $77,883 |
Segment_Information_Revenue_By1
Segment Information (Revenue By Geographic Segment) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Revenue | $1,356,967 | $1,293,541 | $1,255,679 | |||
Total long-lived intangible assets | 67,783 | 64,652 | 63,466 | |||
Americas [Member] | ' | ' | ' | |||
Revenue | 558,671 | 522,788 | [1] | 479,932 | [1] | |
Total long-lived intangible assets | 51,027 | [2] | 49,788 | [2] | 46,083 | [2] |
Europe [Member] | ' | ' | ' | |||
Revenue | 528,090 | 479,877 | [3] | 480,287 | [3] | |
Total long-lived intangible assets | 7,020 | 5,557 | 6,649 | |||
Pacific Rim [Member] | ' | ' | ' | |||
Revenue | 148,151 | 161,587 | 160,834 | |||
Japan [Member] | ' | ' | ' | |||
Revenue | 122,055 | 129,289 | 134,626 | |||
Asia Pacific Member | ' | ' | ' | |||
Total long-lived intangible assets | 9,736 | 9,307 | 10,734 | |||
United States [Member] | ' | ' | ' | |||
Revenue | 518,700 | 485,200 | 453,200 | |||
Germany [Member] | ' | ' | ' | |||
Revenue | $200,300 | $167,200 | $188,300 | |||
[1] | Includes revenue in the United States totaling $518.7 million, $485.2 million and $453.2 million for 2014, 2013 and 2012, respectively. | |||||
[2] | Substantially all of the Americas long-lived tangible assets are located in the United States. | |||||
[3] | Includes revenue in Germany totaling $200.3 million, $167.2 million and $188.3 million for 2014, 2013 and 2012, respectively. |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
segments | |||
Segment Reporting [Abstract] | ' | ' | ' |
Restructuring charges | $28,406 | $52,197 | $24,928 |
Number of operating and reportable segments | ' | 2 | ' |
Software Products [Member] | ' | ' | ' |
Segment Reporting [Abstract] | ' | ' | ' |
Restructuring charges | 2,800 | 17,700 | 4,100 |
Services [Member] | ' | ' | ' |
Segment Reporting [Abstract] | ' | ' | ' |
Restructuring charges | 9,800 | 11,300 | 4,000 |
General And Administrative [Member] | ' | ' | ' |
Segment Reporting [Abstract] | ' | ' | ' |
Restructuring charges | 1,800 | 5,100 | 1,600 |
Selling and Marketing Expense [Member] | ' | ' | ' |
Segment Reporting [Abstract] | ' | ' | ' |
Restructuring charges | $13,900 | $18,100 | $15,200 |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 17, 2014 | Nov. 10, 2014 | Sep. 30, 2014 | Nov. 10, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Subsequent Event [Member] | Performance-based Award [Member] | Time-based Award [Member] | Time-based Award [Member] | Vest in Equal Annual Installments on November 15, 2015, 2016 and 2017 [Member] | November 15, 2015 [Member] | ||||
Subsequent Event [Member] | Restricted Stock Units [Member] | Subsequent Event [Member] | |||||||
Restricted Stock Units [Member] | installment | Restricted Stock Units [Member] | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Units To Be Issued | ' | ' | ' | ' | 522 | ' | 866 | 757 | 109 |
Number of equal annual installments | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Proceeds from Lines of Credit | $1,386,250 | $0 | $230,000 | $35,000 | ' | ' | ' | ' | ' |
Subsequent_Events_Schedule_Of_
Subsequent Events (Schedule Of Restricted Units Granted) (Details) (Subsequent Event [Member], Restricted Stock Units [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Nov. 10, 2014 |
Performance-based Award [Member] | ' |
Subsequent Event [Line Items] | ' |
Number Granted | 522 |
Intrinsic Value | $19,344 |
Time-based Award [Member] | ' |
Subsequent Event [Line Items] | ' |
Number Granted | 866 |
Intrinsic Value | $32,182 |