Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Nov. 20, 2015 | Apr. 04, 2015 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2015 | ||
Entity Registrant Name | PTC Inc. | ||
Entity Central Index Key | 857,005 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2,015 | ||
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 | $ 4,159,706,082 | ||
Entity Common Stock, Shares Outstanding | 114,529,462 | 113,933,336 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 273,417 | $ 293,654 |
Accounts receivable, net of allowance for doubtful accounts of $998 and $1,622 at September 30, 2015 and 2014, respectively | 197,275 | 235,688 |
Prepaid expenses | 56,365 | 37,667 |
Other current assets | 140,819 | 133,859 |
Deferred tax assets | 36,803 | 31,299 |
Total current assets | 704,679 | 732,167 |
Property and equipment, net | 65,162 | 67,783 |
Goodwill | 1,069,041 | 1,012,527 |
Acquired intangible assets, net | 291,301 | 336,873 |
Deferred tax assets | 38,936 | 8,958 |
Other assets | 40,794 | 41,646 |
Total assets | 2,209,913 | 2,199,954 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts Payable, Current | 13,361 | 19,802 |
Accrued expenses and other current liabilities | 97,613 | 57,536 |
Accrued compensation and benefits | 82,414 | 144,875 |
Accrued income taxes | 4,010 | 9,329 |
Deferred tax liabilities | 1,622 | 854 |
Current portion of long term debt | 50,000 | 25,000 |
Deferred revenue | 368,240 | 369,271 |
Total current liabilities | 617,260 | 626,667 |
Long term debt, net of current portion | 618,125 | 586,875 |
Deferred tax liabilities | 42,361 | 36,601 |
Deferred revenue | 18,610 | 13,273 |
Other liabilities | 53,386 | 82,649 |
Total liabilities | $ 1,349,742 | $ 1,346,065 |
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; 113,745 and 115,025 shares issued and outstanding at September 30, 2015 and 2014, respectively | 1,137 | 1,150 |
Additional paid-in capital | 1,553,390 | 1,597,277 |
Accumulated deficit | (602,614) | (650,171) |
Accumulated other comprehensive loss | (91,742) | (94,367) |
Total stockholders' equity | 860,171 | 853,889 |
Total liabilities and stockholders' equity | $ 2,209,913 | $ 2,199,954 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Allowance for doubtful accounts | $ 998 | $ 1,622 |
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 | 113,745 | 115,025 |
Common stock, shares outstanding | 113,745 | 115,025 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue: | |||
License and subscription | $ 347,999 | $ 389,739 | $ 354,282 |
Support | 681,524 | 688,502 | 654,679 |
Professional services | 225,719 | 278,726 | 284,580 |
Total revenue | 1,255,242 | 1,356,967 | 1,293,541 |
Cost of revenue: | |||
Cost of license and subscription revenue | 53,163 | 45,005 | 39,037 |
Cost of support revenue | 82,829 | 84,703 | 81,081 |
Cost of professional services revenue | 198,742 | 243,975 | 252,921 |
Total cost of revenue | 334,734 | 373,683 | 373,039 |
Gross margin | 920,508 | 983,284 | 920,502 |
Sales and marketing | 338,777 | 357,447 | 360,640 |
Research and development | 227,513 | 226,496 | 221,918 |
General and administrative | 166,732 | 142,232 | 131,937 |
U.S. pension settlement loss | 66,332 | 0 | 0 |
Amortization of acquired intangible assets | 36,129 | 32,127 | 26,486 |
Restructuring charges | 43,409 | 28,406 | 52,197 |
Total operating expenses | 878,892 | 786,708 | 793,178 |
Operating income | 41,616 | 196,576 | 127,324 |
Foreign currency losses, net | (2,706) | (4,469) | (2,027) |
Interest income | 3,697 | 3,117 | 2,862 |
Interest expense | (14,742) | (8,155) | (6,976) |
Other expense (income), net | (1,340) | (957) | 5,051 |
Income before income taxes | 26,525 | 186,112 | 126,234 |
Provision (benefit) for income taxes | (21,032) | 25,918 | (17,535) |
Net income | $ 47,557 | $ 160,194 | $ 143,769 |
Earnings (loss) per share—Basic (in USD per share) | $ 0.41 | $ 1.36 | $ 1.20 |
Earnings (loss) per share—Diluted (in USD per share) | $ 0.41 | $ 1.34 | $ 1.19 |
Weighted average shares outstanding—Basic (in shares) | 114,775 | 118,094 | 119,473 |
Weighted average shares outstanding—Diluted (in shares) | 116,012 | 119,984 | 121,240 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 47,557 | $ 160,194 | $ 143,769 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment, net of tax of $0 for all periods | (47,177) | (24,069) | 7,165 |
Amortization of net actuarial pension loss included in net income, net of tax of $18.5 million, $0.3 million, and $1.6 million in 2015, 2014 and 2013, respectively | 52,249 | 3,048 | 2,772 |
Pension net gain (loss) arising during the period net of tax of $1.6 million, $2.8 million and ($6.3 million) in 2015, 2014, and 2013, respectively | (4,797) | (24,267) | 11,971 |
Change in unamortized pension loss during the period related to changes in foreign currency | 2,350 | 2,081 | (567) |
Other comprehensive income (loss) | 2,625 | (43,207) | 21,341 |
Comprehensive income | $ 50,182 | $ 116,987 | $ 165,110 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive (Loss) Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Tax provision (benefit) related to pension net gain(loss) occurring during the year | (1.6) | (2.8) | 6.3 |
Tax benefit related to amortization of net actuarial loss | $ 18.5 | $ 0.3 | $ 1.6 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 47,557 | $ 160,194 | $ 143,769 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Stock-based compensation | 50,182 | 50,889 | 48,787 |
Depreciation and amortization | 84,433 | 77,307 | 76,551 |
Benefit from deferred income taxes | (49,361) | (19,946) | (39,714) |
Excess tax benefits realized from stock-based awards | (24) | (10,428) | (334) |
Pension settlement loss | 66,332 | 0 | 0 |
Other non-cash costs, net | 157 | (760) | 339 |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||
Accounts receivable | 29,723 | 7,554 | 17,308 |
Accounts payable and accrued expenses | 31,134 | (436) | (4,828) |
Accrued compensation and benefits | (56,950) | 8,974 | 11,036 |
Deferred revenue | 8,852 | 24,998 | 6,727 |
Accrued income taxes, net of income tax receivable | (3,536) | 19,134 | (15,211) |
Other current assets and prepaid expenses | (10,716) | 4,417 | (9,113) |
Other noncurrent assets | (17,880) | (17,345) | (10,634) |
Net cash provided by operating activities | 179,903 | 304,552 | 224,683 |
Cash flows from investing activities: | |||
Additions to property and equipment | (30,628) | (25,275) | (29,328) |
Acquisitions of businesses, net of cash acquired | (98,411) | (323,525) | (245,843) |
Purchases of investments | (11,000) | 0 | 0 |
Other | 0 | 0 | 721 |
Net cash used by investing activities | (140,039) | (348,800) | (274,450) |
Cash flows from financing activities: | |||
Borrowings under credit facility | 185,000 | 1,386,250 | 0 |
Repayments of borrowings under revolving credit facility | (128,750) | (1,032,500) | (111,875) |
Repurchases of common stock | (64,940) | (224,915) | (74,871) |
Proceeds from issuance of common stock | 41 | 877 | 4,884 |
Excess tax benefits realized from stock-based awards | 24 | 10,428 | 334 |
Payments of withholding taxes in connection with vesting of stock-based awards | (29,207) | (26,857) | (14,996) |
Credit facility origination costs | 0 | (7,930) | 0 |
Payments to Business Combination Contingent Consideration Financing Activities | 4,323 | 0 | 0 |
Net cash provided (used) by financing activities | (42,155) | 105,353 | (196,524) |
Effect of exchange rate changes on cash and cash equivalents | (17,946) | (9,364) | (1,339) |
Net increase (decrease) in cash and cash equivalents | (20,237) | 51,741 | (247,630) |
Cash and cash equivalents, beginning of year | 293,654 | 241,913 | 489,543 |
Cash and cash equivalents, end of year | 273,417 | 293,654 | 241,913 |
Fair value of contingent consideration recorded for acquisition | $ 3,800 | $ 13,048 | $ 0 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance, shares at Sep. 30, 2012 | 119,553 | ||||
Balance, value at Sep. 30, 2012 | $ 797,259 | $ 1,196 | $ 1,822,698 | $ (954,134) | $ (72,501) |
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 | $ 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, shares at Sep. 30, 2013 | 118,446 | ||||
Balance, value at Sep. 30, 2013 | 926,480 | $ 1,185 | 1,786,820 | (810,365) | (51,160) |
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 | $ 160,194 | 160,194 | |||
Repurchases of common stock, shares | (5,068) | (5,068) | |||
Repurchases of common stock, value | $ (187,415) | $ (51) | (187,364) | ||
Common stock repurchase holdback | (37,500) | (37,500) | |||
Foreign currency translation adjustment | (24,069) | (24,069) | |||
Change in pension benefits, net of tax | $ (19,138) | (19,138) | |||
Balance, shares at Sep. 30, 2014 | 115,025 | 115,025 | |||
Balance, value at Sep. 30, 2014 | $ 853,889 | $ 1,150 | 1,597,277 | (650,171) | (94,367) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued for employee stock-based awards, shares | 2,212 | ||||
Common stock issued for employee stock-based awards, value | 41 | $ 22 | 19 | ||
Shares surrendered by employees to pay taxes related to stock-based awards, shares | (764) | ||||
Shares surrendered by employees to pay taxes related to stock-based awards, value | (29,207) | $ (8) | (29,199) | ||
Compensation expense from stock-based awards | 50,182 | 50,182 | |||
Excess tax benefits (tax shortfalls) from stock-based awards | 24 | 24 | |||
Net income | $ 47,557 | 47,557 | |||
Repurchases of common stock, shares | (2,728) | (2,728) | |||
Repurchases of common stock, value | $ (64,940) | $ (27) | (64,913) | ||
Common stock repurchase holdback | (64,940) | ||||
Foreign currency translation adjustment | (47,177) | (47,177) | |||
Change in pension benefits, net of tax | $ 49,802 | 49,802 | |||
Balance, shares at Sep. 30, 2015 | 113,745 | 113,745 | |||
Balance, value at Sep. 30, 2015 | $ 860,171 | $ 1,137 | $ 1,553,390 | $ (602,614) | $ (91,742) |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Sep. 30, 2015 | |
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 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. In 2015, we recorded an out of period correction of approximately $6.4 million of additional revenue that was deferred and should have been recognized previously. Management believes this correction is not material to the current period financial statements or any previously issued 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. Reclassifications Through 2014, we classified revenue in three categories: 1) license; 2) service; and 3) support. Effective with the beginning of the first quarter of 2015, we are reporting revenue as follows: 1) license and subscription; 2) support; and 3) professional services. License and subscription revenue includes perpetual license revenue, subscription revenue and cloud services revenue. Cloud service offerings were previously reflected in service revenue and cost of service revenue. Consulting and training service revenue and consulting and training cost of service revenue are now referred to as professional services revenue and cost of professional services revenue in the accompanying Consolidated Statements of Operations. The following revenue and costs have been reclassified in the accompanying Consolidated Statements of Operations for the year ended September 30, 2014 and 2013 to conform to the current period presentation. Year Ended September 30, 2014 2013 Reclassifications within revenue (in millions) From Services to L&S $ 16.3 $ 10.0 From Support to L&S 3.7 — $ 20.0 $ 10.0 Reclassifications within cost of revenue From Services to L&S $ 12.9 $ 6.0 From Support to L&S 0.4 — $ 13.3 $ 6.0 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2015 | |
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 Statements 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 Our sources of revenue include: (1) license and subscription, (2) support and (3) professional services. We record revenues in accordance with the guidance provided by ASC 985-605, Software-Revenue Recognition when the following criteria are met: (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. 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. Our primary judgments involve the following: • determining whether collection is probable; • assessing whether the fee is fixed or determinable; • determining whether service arrangements, including modifications and customization of the underlying software, are not essential to the functionality of the licensed software and thus would result in the revenue for license and service elements of an agreement being recorded separately; and • determining the fair value of services and support elements included in multiple-element arrangements, which is the basis for allocating and deferring revenue for such services and support. 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. 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. License and Subscription License and subscription revenue includes revenue from three primary sources: (1) sales of perpetual licenses, (2) subscription-based licenses, and (3) cloud services. Under perpetual license arrangements, we generally recognize license revenue up front upon shipment to the customer. We use the residual method to recognize revenue from perpetual license 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 below. Under the residual method, the fair value of the undelivered elements (i.e., support and services) based on our vendor-specific objective evidence (“VSOE”) of fair value is deferred and the remaining portion of the total arrangement fee is allocated to the delivered elements (i.e., perpetual 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 is determined based on a substantive 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 elements to ensure that it reflects our recent pricing experience. Subscription-based licenses include the right for a customer to use our licenses and receive related support for a specified term and revenue is recognized ratably over the term of the arrangement. When sold in arrangements with other elements, VSOE of fair value is established for the subscription-based licenses through the use of a substantive renewal clause within the customer contract for a combined annual fee that includes the term-based license and related support. Cloud services reflect recurring revenues that include fees for hosting and application management of customers’ perpetual or subscription-based licenses. Generally, customers have the right to terminate the cloud services contract and take possession of the licenses without a significant penalty. When cloud services are sold as part of a multi-element transaction, revenue is allocated to cloud services based on VSOE, and recognized ratably over the contractual term beginning on the commencement dates of each contract, which is the date the services are made available to the customer. VSOE is established for cloud services either through a substantive stated renewal option or stated contractual overage rates, as these rates represent the value the customer is willing to pay on a standalone basis. In addition, cloud services include set-up fees, which are recognized ratably over the contract term or the expected customer life, whichever is longer. Support 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. Professional Services Our software arrangements often include implementation, consulting and training 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 (i.e. VSOE of fair value). We consider various factors in assessing whether a service is not essential to the functionality of the software, including if the services may be provided by independent third parties experienced in providing such services (i.e. consulting and implementation) in coordination with dedicated customer personnel, and whether the services result in significant modification or customization of the software’s functionality. When professional services qualify for separate accounting, professional services revenues under time and materials billing arrangements are recognized as the services are performed. Professional services 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 professional services that are 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 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. Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in professional services revenue, with the offsetting expense recorded in cost of professional services 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 customer receivable is included in other current assets. Billed but uncollected support and subscription-related amounts included in other current assets at September 30, 2015 and 2014 were $129.3 million and $116.2 million , respectively. Deferred revenue consisted of the following: September 30, 2015 2014 (in thousands) Deferred license and subscription revenue $ 42,418 $ 30,440 Deferred support revenue 331,793 335,827 Deferred professional services revenue 12,639 16,277 Total deferred revenue $ 386,850 $ 382,544 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, 2015 or 2014 . 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. Generally accepted accounting principles 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, 2015 and 2014 were as follows: September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash equivalents (1) $ 91,216 $ — $ — $ 91,216 Forward contracts — 507 — 507 $ 91,216 $ 507 $ — $ 91,723 Financial liabilities: Contingent consideration related to ThingWorx & ColdLight acquisitions $ — $ — $ 13,000 $ 13,000 Forward contracts — 46 — 46 $ — $ 46 $ 13,000 $ 13,046 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 (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 acquisitions of ThingWorx and ColdLight were as follows: Contingent Consideration (in thousands) ThingWorx ColdLight Balance at October 1, 2013 — — Contingent consideration at acquisition 13,048 — Change in fair value of contingent consideration 2,143 — Balance at October 1, 2014 15,191 — Contingent consideration at acquisition — 3,800 Change in fair value of contingent consideration 2,809 200 Payment of contingent consideration (9,000 ) — Balance at September 30, 2015 $ 9,000 $ 4,000 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 $1.0 million as of September 30, 2015 , $1.6 million as of September 30, 2014 , $3.0 million as of September 30, 2013 and $3.4 million as of September 30, 2012 . Uncollectible trade accounts receivable written-off, net of recoveries, were $0.8 million , $0.6 million and $0.6 million in 2015 , 2014 and 2013 , respectively. Bad debt (credit) expense was $0.2 million , $(0.8) million and $0.2 million in 2015 , 2014 and 2013 , 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 an S&P bond rating of BBB- or above, we designate the customer as a Tier 1. If a customer does not have an 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, 2015 and 2014 , amounts due from customers for contracts with original payment terms greater than twelve months (financing receivables) totaled $27.4 million and $58.1 million , respectively. Accounts receivable and other current assets in the accompanying Consolidated Balance Sheets include current receivables from such contracts totaling $21.8 million and $44.6 million at September 30, 2015 and 2014 , respectively, and other assets in the accompanying Consolidated Balance Sheets include long-term receivables from such contracts totaling $5.6 million and $13.5 million at September 30, 2015 and 2014 , respectively. As of September 30, 2015 and September 30, 2014 , respectively, $0.5 million and $0 of these receivables were past due. Our credit risk assessment for financing receivables was as follows: September 30, 2015 2014 (in thousands) S&P bond rating BBB- and above-Tier 1 $ 16,841 $ 41,152 Internal Credit Assessment-Tier 2 10,593 16,989 Internal Credit Assessment-Tier 3 — — Total financing receivables $ 27,434 $ 58,141 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, 2015 and 2014 , 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 2015 , 2014 and 2013 . 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 2015 , 2014 and 2013 , we sold $3.0 million , $24.5 million and $17.0 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, 2015 and 2014 , we had outstanding forward contracts with notional amounts equivalent to the following: September 30, Currency Hedged 2015 2014 (in thousands) Canadian/U.S. Dollar $ 17,448 $ 25,583 Euro/U.S. Dollar 82,917 61,751 British Pound/Euro 9,409 14,259 Israeli Sheqel/U.S. Dollar 4,607 6,144 Japanese Yen/Euro 25,133 — Swiss Franc/U.S. Dollar 5,149 1,200 All other 12,592 8,051 Total $ 157,255 $ 116,988 The accompanying Consolidated Balance Sheets include net assets of $0.5 million and $0.3 million in other current assets as of September 30, 2015 and 2014, respectively and a net liability of $46.0 thousand and $0.9 million in accrued expenses and other current liabilities as of September 30, 2015 and 2014 , 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 $2.7 million , $4.5 million and $2.0 million for 2015 , 2014 and 2013 , 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 a net gain of $0.6 million in 2015 , a net loss of $3.8 million in 2014 , 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 2015 , 2014 or 2013 . In connection with acquisitions of businesses described in Note E, we capitalized software of $13.6 million and $48.9 million in 2015 and 2014 , 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 July 4, 2015 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 July 4, 2015 . 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 $1.1 million , $2.2 million and $4.2 million in 2015 , 2014 and 2013 , 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 Statements 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, 2015 and 2014 , was comprised of cumulative translation adjustment losses of $71.6 million and $24.5 million , respectively, and unrecognized actuarial losses related to pension benefits of $28.3 million ( $20.1 million net of tax) and $95.9 million ( $69.9 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, 2015 2014 2013 (in thousands, except per share data) Net income $ 47,557 $ 160,194 $ 143,769 Weighted average shares outstanding 114,775 118,094 119,473 Dilutive effect of employee stock options, restricted shares and restricted stock units 1,237 1,890 1,767 Diluted weighted average shares outstanding 116,012 119,984 121,240 Basic earnings per share $ 0.41 $ 1.36 $ 1.20 Diluted earnings per share $ 0.41 $ 1.34 $ 1.19 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 Statements of Operations related to stock-based compensation. Related Party Transaction On November 27, 2013, we entered into a consulting agreement with Professor Michael Porter, who was a director of PTC at the time. 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 vested on March 4, 2015 . P |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Sep. 30, 2015 | |
Restructuring [Abstract] | |
Restructuring Charges | Restructuring Charges On April 4, 2015, we committed to a plan to restructure our workforce and consolidate select facilities to realign our global workforce to increase investment in our Internet of Things business and to reduce our cost structure through organizational efficiencies in the face of significant foreign currency depreciation relative to the U.S. Dollar and a more cautious outlook on global macroeconomic conditions. In 2015 , we recorded restructuring charges of $42.0 million attributable to severance and related costs associated with 411 employees. Additionally, we recorded a charge of $1.4 million related to the closure of excess facilities. The facility charge reflects estimated costs including gross lease commitments of approximately $2.3 million , net of estimated sublease income of $0.9 million . As of September 30, 2015, this restructuring plan was substantially completed. In September 2014, in support of integrating businesses acquired 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. The following table summarizes restructuring charges reserve activity for the three years ended September 30, 2015 : Employee Severance and Related Benefits Facility Closures and Other Costs Consolidated Total (in thousands) Balance, October 1, 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 Charges to operations 41,997 1,412 43,409 Cash disbursements (52,882 ) (706 ) (53,588 ) Foreign currency impact (864 ) (73 ) (937 ) Balance, September 30, 2015 $ 14,086 $ 1,168 $ 15,254 The accrual for facility closures and related costs is included in accrued expenses and other current liabilities in the Consolidated Balance Sheets, and the accrual for employee severance and related benefits is included in accrued compensation and benefits in the Consolidated Balance Sheets. |
Acquisition
Acquisition | 12 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions In 2015, we completed the acquisition of ColdLight (on May 7, 2015 ), and in 2014, we completed the acquisitions of Axeda (on August 11, 2014 ), Atego (on June 30, 2014 ) and ThingWorx (on December 30, 2013 ). The results of operations of these acquired businesses have been included in our consolidated financial statements beginning on their respective acquisition dates. 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 as well as the ColdLight and ThingWorx contingent consideration liabilities 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 in 2014 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 $8.9 million , $12.7 million and $9.9 million in 2015 , 2014 and 2013 , 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 amounts of ColdLight and 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. 2015 Acquisition ColdLight On May 7, 2015 , we acquired all of the ownership interest of ColdLight Solutions, LLC, a company that offered solutions for data machine learning and predictive analytics, for approximately $98.6 million in cash (net of cash acquired of $1.3 million ). The acquisition of the ColdLight automated predictive analytics platform will expand our technology portfolio in the Internet of Things (IoT) market. At the time of the acquisition, ColdLight had approximately 60 employees and annualized revenues which were immaterial to our financial results. The former shareholders of ColdLight are eligible to receive additional consideration (the earn-out) of up to $5.0 million , which is contingent upon achievement of certain technology milestones within two years of the acquisition. If an earn-out milestone is achieved, a portion of the contingent consideration becomes earned and payable in cash after each six-month period. In connection with accounting for the business combination, we recorded a liability of $3.8 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 technology milestones. The estimated undiscounted range of outcomes for the contingent consideration was $3.8 million to $5.0 million at the acquisition date. As of September 30, 2015 , our estimate of the liability was increased to $4.0 million . We will continue to assess the probability that the unearned milestones will be met and at what level each reporting period. The subsequent changes in the estimated fair value of the liability are reflected in earnings until the liability is fully settled. The total purchase price for ColdLight was allocated to assets and liabilities acquired as follows: Purchase price allocation: (in thousands) Goodwill $ 85,288 Identifiable intangible assets 17,620 Cash 1,313 Other assets and liabilities, net (516 ) Total allocation of purchase price consideration 103,705 Less: cash acquired (1,313 ) Total purchase price allocation, net of cash acquired 102,392 Less: contingent consideration (3,800 ) Net cash used to acquire ColdLight $ 98,592 The purchase price allocation resulted in $85.3 million of goodwill, which will be deductible for income tax purposes. All of the acquired goodwill was allocated to our software products segment. Intangible assets of $17.6 million includes purchased software of $13.6 million , customer relationships of $3.5 million and trademarks of $0.5 million , which are being amortized over weighted average useful lives of 10 years, 9 years and 7 years, respectively, based upon the pattern in which economic benefits related to such assets are expected to be realized. The resulting amount of goodwill reflects our expectations of the following benefits: (1) ColdLight provides a differentiated machine learning platform for critical data analytics in our solution portfolio; (2) ColdLight’s Neuron ® product suite can automate the analytics process, reducing the dependency on manual processes; (3) ColdLight is addressing challenging aspects of data analytics aligned with the PTC / ThingWorx analytics vision; (4) ColdLight has a presence in industries outside of PTC's traditional markets which create a foundation for us to pursue opportunities in non-traditional vertical markets. 2014 Acquisitions Axeda and Atego In the fourth quarter of 2014, we acquired all of the outstanding shares of capital stock of Axeda (a privately-held U.S.-based company) and Atego Group Limited (a privately-held company with operations in the U.K., the U.S. and France) for a total of $212.0 million , net of 13.1 million of cash acquired. The acquisitions resulted in goodwill of $157.7 million , intangible assets of $86.9 million and deferred tax liabilities related to the intangible assets of $12.6 million . Our results of operations prior to these acquisitions, if presented on a proforma basis, would not differ materially from our reported results. ThingWorx In the second quarter of 2014, we acquired ThingWorx, Inc. for $111.5 million (net of cash acquired of $0.1 million ). The former shareholders of ThingWorx are eligible to receive additional consideration (the earn-out) of up to $18.0 million if certain profitability and bookings targets are achieved within two years of the acquisition from December 30, 2013 to January 1, 2016 . The earn-out is payable in cash in two installments after each measurement period. In connection with accounting for the business combination, we recorded a liability 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 the financial targets. We assess the probability that the targets will be met each reporting period. Any subsequent changes in the estimated fair value of the liability are reflected in earnings until the liability is fully settled. The ThingWorx contingent consideration first year payment criteria were attained. As such, $9.0 million of the total contingent consideration was paid in July 2015 . Of the $9.0 million payment, $4.3 million represents the fair value of the first installment payment at acquisition date and is included in financing activities in the Consolidated Statements of Cash Flows. The remaining $4.7 million payment is included in operating activities in the Consolidated Statements of Cash Flows. As of September 30, 2015 , we expect that the remaining $9.0 million of the total contingent consideration will be fully earned and become payable in 2016. 2013 Acquisition 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 life cycle 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 2013. The pro forma information for the period 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 2013, including amortization charges from acquired intangible assets, the fair value adjustment of acquired deferred support revenue being recorded, 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 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 2013. Unaudited Pro Forma Financial Information Year ended September 30, 2013 (in millions, except per share amounts) Revenue $ 1,296.6 Net income $ 116.5 Earnings per share—Basic $ 0.98 Earnings per share—Diluted $ 0.96 |
Property And Equipment
Property And Equipment | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | Property and Equipment Property and equipment consisted of the following: September 30, 2015 2014 (in thousands) Computer hardware and software $ 246,756 $ 230,591 Furniture and fixtures 18,370 19,025 Leasehold improvements 38,005 36,896 Gross property and equipment 303,131 286,512 Accumulated depreciation and amortization (237,969 ) (218,729 ) Net property and equipment $ 65,162 $ 67,783 Depreciation expense was $28.9 million , $27.1 million and $31.5 million in 2015 , 2014 and 2013 , respectively. |
Goodwill And Acquired Intangibl
Goodwill And Acquired Intangible Assets | 12 Months Ended |
Sep. 30, 2015 | |
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, 2015 and 2014 , goodwill and acquired intangible assets in the aggregate attributable to our software products segment was $1,297.9 million and $1,283.0 million , respectively, and attributable to our services segment was $62.4 million and $66.4 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 July 4, 2015 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 July 4, 2015 . Through September 30, 2015 , 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: September 30, 2015 September 30, 2014 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Goodwill (not amortized) $ 1,069,041 $ 1,012,527 Intangible assets with finite lives (amortized) (1): Purchased software $ 284,257 $ 174,887 $ 109,370 $ 278,012 $ 162,259 $ 115,753 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 349,938 174,017 175,921 360,530 147,469 213,061 Trademarks and trade names 18,534 12,759 5,775 18,479 10,964 7,515 Other 3,946 3,711 235 4,117 3,573 544 $ 679,552 $ 388,251 $ 291,301 $ 684,015 $ 347,142 $ 336,873 Total goodwill and acquired intangible assets $ 1,360,342 $ 1,349,400 (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, 10 years and 3 years, respectively. The changes in the carrying amounts of goodwill from October 1, 2014 to September 30, 2015 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 Products Segment Services Segment Total (in thousands) Balance, October 1, 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 Axeda adjustment of purchase price from escrow (180 ) — (180 ) Acquisition of ColdLight 85,288 — 85,288 Foreign currency translation adjustments (28,463 ) (131 ) (28,594 ) Balance, September 30, 2015 $ 1,016,413 $ 52,628 $ 1,069,041 The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2015 , 2014 and 2013 was reflected in our Consolidated Statements of Operations as follows: Year ended September 30, 2015 2014 2013 (in thousands) Amortization of acquired intangible assets $ 36,129 $ 32,127 $ 26,486 Cost of license and subscription revenue 19,402 18,112 18,586 Total amortization expense $ 55,531 $ 50,239 $ 45,072 The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2015 is $49.9 million for 2016 , $47.8 million for 2017 , $46.1 million for 2018 , $38.4 million for 2019 , $35.4 million for 2020 , and $73.7 million thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income (loss) before income taxes consisted of the following: Year ended September 30, 2015 2014 2013 (in thousands) Domestic $ (110,867 ) $ 17,038 $ 6,112 Foreign 137,392 169,074 120,122 Total income before income taxes $ 26,525 $ 186,112 $ 126,234 Our (benefit) provision for income taxes consisted of the following: Year ended September 30, 2015 2014 2013 (in thousands) Current: Federal $ 3,907 $ 12,792 $ 7,081 State 599 2,062 1,512 Foreign 23,823 31,010 13,586 28,329 45,864 22,179 Deferred: Federal (20,809 ) (13,200 ) (38,224 ) State (566 ) (2,085 ) (4,718 ) Foreign (27,986 ) (4,661 ) 3,228 (49,361 ) (19,946 ) (39,714 ) Total provision (benefit) for income taxes $ (21,032 ) $ 25,918 $ (17,535 ) The reconciliation between the statutory federal income tax rate and our effective income tax rate is shown below: Year ended September 30, 2015 2014 2013 Statutory federal income tax rate 35 % 35 % 35 % Change in valuation allowance 63 % (11 )% (32 )% State income taxes, net of federal tax benefit 7 % 1 % 1 % Federal and state research and development credits (8 )% — % (1 )% Resolution of uncertain tax positions (11 )% — % (1 )% Foreign rate differences (213 )% (19 )% (26 )% Foreign withholding tax 14 % 3 % 5 % U.S. permanent items 34 % 4 % 5 % Other, net — % 1 % — % Effective income tax rate (79 )% 14 % (14 )% In 2015, our effective tax rate was a benefit of 79% on pre-tax income of $26.5 million . Our effective tax rate was lower than the 35% statutory federal income tax rate due, in large part, to our corporate structure in which our foreign taxes are at an effective tax rate lower than the U.S. A significant amount of our foreign earnings is generated by our subsidiaries organized in Ireland. In 2015, 2014 and 2013, the foreign rate differential predominantly relates to these Irish earnings. Our foreign rate differential in 2015 includes a rate benefit from a business realignment completed on September 30, 2014 in which intellectual property was transferred between two wholly-owned foreign subsidiaries. The realignment allows us to more efficiently manage the distribution of our products to European customers. In 2015, this realignment resulted in a tax benefit of approximately $24.0 million . U.S. permanent items include the tax effect of a $14.5 million expense related to a pending legal settlement. Other factors impacting the effective tax rate include: the release of a valuation allowance totaling $18.7 million relating to the U.S. pension plan termination, foreign withholding taxes of $3.8 million , a tax benefit of $3.1 million relating to the reassessment of our reserve requirements and a benefit of $1.4 million in conjunction with the reorganization of our Atego U.S. subsidiaries. Additionally, our provision reflects a $2.1 million tax benefit related to a retroactive extension of the U.S. research and development tax credit enacted in the first quarter of 2015. This benefit was offset by a corresponding provision to increase our U.S. valuation allowance. 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. At September 30, 2015 and 2014 , 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 $14.7 million ( $4.0 million in accrued income taxes, $2.2 million in other current liabilities and $8.5 million in other liabilities) and $17.7 million ( $9.3 million in accrued income taxes, $1.3 million in other current liabilities and $7.1 million in other liabilities), respectively. At September 30, 2015 and 2014 , prepaid taxes recorded in prepaid expenses on the accompanying Consolidated Balance Sheets were $8.2 million and $6.3 million , respectively. We made net income tax payments of $30.1 million , $25.5 million and $35.4 million in 2015 , 2014 and 2013 , respectively. The significant temporary differences that created deferred tax assets and liabilities are shown below: September 30, 2015 2014 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 71,533 $ 57,677 Foreign tax credits 15,962 9,022 Capitalized research and development expense 31,690 41,720 Pension benefits 11,009 39,063 Deferred revenue 71,399 67,433 Stock-based compensation 16,777 18,828 Other reserves not currently deductible 21,940 24,273 Amortization of intangible assets 62,227 9,302 Other tax credits 37,270 30,982 Depreciation 3,465 3,157 Capital loss carryforward 8,040 7,964 Other 10,116 7,118 Gross deferred tax assets 361,428 316,539 Valuation allowance (198,168 ) (177,541 ) Total deferred tax assets 163,260 138,998 Deferred tax liabilities: Acquired intangible assets not deductible (124,401 ) (110,003 ) Pension prepayments (395 ) (20,263 ) Deferred revenue (3,110 ) (1,446 ) Other (3,598 ) (4,484 ) Total deferred tax liabilities (131,504 ) (136,196 ) Net deferred tax assets $ 31,756 $ 2,802 We have concluded, based on the weight of available evidence, that a full valuation allowance continues to be required against our U.S. net deferred tax assets as they are not more likely than not to be realized in the future. We will continue to reassess whether a valuation allowance is required each financial reporting period. 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, 2015 , we had U.S. federal NOL carryforwards of $159.7 million that expire in 2018 to 2035 . These include NOL carryforwards from acquisitions of $81 million . 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 $38.8 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, 2015 , we had Federal R&D credit carryforwards of $18.5 million , which expire beginning in 2021 and ending in 2035 , and Massachusetts R&D credit carryforwards of $25.7 million , which expire beginning in 2016 and ending in 2030 . We also had foreign tax credits of $16.0 million , which expire beginning in 2023 and ending in 2025 . A full valuation allowance is recorded against these carryforwards. We also have NOL carryforwards in non-U.S. jurisdictions totaling $117.7 million , the majority of which do not expire. We also have non-U.S. tax credit carryforwards of $7.2 million that expire beginning in 2025 and ending in 2034. There are limitations imposed on the utilization of such NOLs that could restrict the recognition of any tax benefits. As of September 30, 2015 , we have a valuation allowance of $166.5 million against net deferred tax assets in the U.S. and a remaining valuation allowance of $31.7 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, 2015 2014 2013 (in millions) Valuation allowance beginning of year $ 177.5 $ 156.5 $ 170.4 Net release of valuation allowance (1) (18.7 ) (18.1 ) (44.6 ) Net increase/decrease in deferred tax assets for foreign jurisdictions with a full valuation allowance (1.9 ) (5.2 ) 1.9 Establish valuation allowance for acquired businesses — 21.5 12.1 Establish valuation allowance in foreign jurisdictions — 3.5 — Adjust deferred tax asset and valuation allowance 41.3 19.3 16.7 Valuation allowance end of year $ 198.2 $ 177.5 $ 156.5 (1) In 2014 and 2013, this is attributable to recognition of deferred tax liabilities recorded in connection with accounting for acquisitions and in 2015 and 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 2015 and 2014, we recorded interest expense of $0.1 million and $0.3 million , respectively. In 2013, we recorded a net benefit of $1.2 million . In 2015, 2014 and 2013, we had no tax penalty expense in our income tax provision. As of September 30, 2015 and 2014 , we had accrued $1.5 million and $1.4 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, 2015 or 2014. Year ended September 30, Unrecognized tax benefits 2015 2014 2013 (in millions) Unrecognized tax benefit beginning of year $ 15.0 $ 13.7 $ 19.1 Tax positions related to current year: Additions 1.3 2.2 1.0 Tax positions related to prior years: Additions 0.8 0.3 1.8 Reductions (3.0 ) (0.1 ) (6.3 ) Settlements — (0.6 ) (0.7 ) Statute expirations — (0.5 ) (1.2 ) Unrecognized tax benefit end of year $ 14.1 $ 15.0 $ 13.7 If all of our unrecognized tax benefits as of September 30, 2015 were to become recognizable in the future, we would record a benefit to the income tax provision of $12.5 million (which would be partially offset by an increase in the U.S. valuation allowance of $4.5 million ) and a credit to additional paid-in capital (APIC) of $1.6 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 $4 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, 2015 , 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 2015 Germany 2011 through 2015 France 2013 through 2015 Japan 2009 through 2015 Ireland 2011 through 2015 We incurred expenses related to stock-based compensation in 2015 , 2014 and 2013 of $50.2 million , $50.9 million and $48.8 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 Statements of Operations related to stock-based compensation totaled $0.7 million , $0.7 million and $2.7 million in 2015 , 2014 and 2013 , 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 2015 , 2014 and 2013, we recorded windfall tax benefits of $0.0 million , $10.4 million and $0.3 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, 2015 , the tax effect of windfall tax deductions which had not yet reduced taxes payable was $30.1 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, with the exception of a newly formed foreign holding company. There was no impact to this assertion in the current year. In the future, we expect to incur annual deferred tax expense of $11 million . 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 $1,915 million and $613 million as of September 30, 2015 and 2014 , 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, 2015 | |
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. acted as Administrative Agent. We used the credit facility for general corporate purposes, including acquisitions of businesses, share repurchases and working capital requirements. As of September 30, 2015, the fair value of our credit facility approximated our book value. This credit facility was replaced by a new credit facility in November, 2015. Refer to Note O Subsequent Event for details. The credit facility consisted of a $500 million term loan and a $1 billion revolving loan commitment. The revolving loan commitment did not require amortization of principal. The term loan required prepayment of principal at the end of each calendar quarter. The revolving loan and term loan could be repaid in whole or in part prior to the scheduled maturity dates at our option without penalty or premium. The credit facility was scheduled to mature on September 15, 2019, when all remaining amounts outstanding would have been due and payable in full. We would have been required to make principal payments under the term loan of $50 million , $50 million , $75 million and $300 million in 2016, 2017, 2018 and 2019, respectively. PTC was the sole borrower under the credit facility. The obligations under the credit facility were guaranteed by PTC’s material domestic subsidiaries and 65% of the voting equity interests of PTC’s material first-tier foreign subsidiaries were pledged as collateral for the obligations. As of September 30, 2015 , we had $668.1 million outstanding under the credit facility comprised of the $475 million term loan and a $193.1 million revolving loan. Loans under the credit facility bore 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, 2015 , the annual rate on the term loan and $43.1 million of the revolving loan was 1.875% . The annual rate on $50.0 million of the revolving loan was 1.875% . The annual rate on the remaining $100.0 million revolving loan was 1.75% on September 30, 2015 and was reset to 1.875% on October 6, 2015. Interest rates on borrowings outstanding under the credit facility ranged from 1.25% to 1.5% above an adjusted LIBO rate for Eurodollar-based borrowings or 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 could 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 was required, ranging from 0.175% to 0.25% per annum, based upon PTC’s leverage ratio. The credit facility limited 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 could 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 was required to 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, 2015 , our leverage ratio was 2.45 to 1.00 , our fixed charge coverage ratio was 6.54 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 would have constituted an event of default, permitting the lenders to accelerate the indebtedness and terminate the credit facility. We incurred $7.9 million of origination costs in 2014 in connection with entering into the new credit facilities. These origination costs were recorded as deferred debt issuance costs when incurred and were being expensed over the remaining term of the credit facility. In 2015 , 2014 and 2013 , we paid $10.1 million , $5.7 million and $5.8 million , respectively, of interest on the credit facilities. The average interest rate on borrowings outstanding during 2015 , 2014 and 2013 was approximately 1.7% , 1.6% and 1.7% , respectively. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Sep. 30, 2015 | |
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 2025 . Certain leases require us to pay for taxes, insurance, maintenance and other operating expenses in addition to rent. Lease expense was $36.9 million , $38.6 million and $38.4 million in 2015 , 2014 and 2013 , respectively. At September 30, 2015 , our future minimum lease payments under noncancellable operating leases are as follows: Year ending September 30, (in thousands) 2016 $ 35,829 2017 26,582 2018 21,705 2019 18,242 2020 15,033 Thereafter 26,698 Total minimum lease payments $ 144,089 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, 2015 and 2014 , we had letters of credit and bank guarantees outstanding of $4 million (of which $1.1 million was collateralized) and $3.6 million (of which $0.9 million was collateralized), respectively, primarily related to our corporate headquarters lease. Legal and Regulatory Matters China Investigation We have been in discussions with the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) to resolve a previously announced investigation concerning expenditures by our business partners in China and by our China business, including for travel and entertainment, that apparently benefited employees of customers regarded as state owned enterprises in China. This matter involves issues regarding compliance with laws, including the U.S. Foreign Corrupt Practices Act. In the third quarter of 2015, we recorded a liability of $13.6 million and, as a result of an agreement in principle reached in mid-November to settle the matter with these agencies, we recorded an additional liability of $14.6 million for a total accrual of $28.2 million . There can be no assurance that we and these agencies will enter into final settlements on the foregoing terms or, if not, that the cost of any final settlements, if reached, would not exceed the existing accrual. Further, any settlement or other resolution of this matter could have collateral effects on our business in China, the United States and elsewhere. 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 probable that a liability has been incurred and the amount of the loss can be reasonably estimated. For legal proceedings and claims for which the likelihood that a liability has been incurred is more than remote but less than probable, we estimate the range of possible outcomes. As of September 30, 2015, we had a legal proceedings and claims accrual of $30.5 million , including an accrual of $28.2 million for the China investigation. 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. |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Sep. 30, 2015 | |
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 stock units granted in 2015 , 2014 and 2013 was based on the fair market value of our stock on the date of grant. The weighted average fair value per share of restricted stock units granted in 2015 , 2014 and 2013 was $38.19 , $33.88 and $22.87 , 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, 2015 2014 2013 (in thousands) Cost of license and subscription revenue $ 521 $ 314 $ 21 Cost of support revenue 3,775 3,745 3,324 Cost of professional services revenue 5,871 6,351 6,134 Sales and marketing 12,223 10,982 11,326 Research and development 11,623 10,119 8,590 General and administrative 16,169 19,378 19,392 Total stock-based compensation expense $ 50,182 $ 50,889 $ 48,787 As of September 30, 2015 , total unrecognized compensation cost related to unvested restricted stock units expected to vest was approximately $62.5 million and the weighted average remaining recognition period for unvested awards was 17 months. As of September 30, 2015 , 3.6 million shares of common stock were available for grant under the 2000 Plan and 3.7 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 Average Grant Date Fair Value Aggregate Intrinsic Value as of September 30, 2015 Restricted stock unit activity for the year ended September 30, 2015 (in thousands except grant date fair value data) Balance of nonvested outstanding restricted stock units October 1, 2014 4,379 $ 26.87 Granted 1,910 $ 38.19 Vested (2,206 ) $ 24.67 Forfeited or not earned (429 ) $ 30.94 Balance of nonvested outstanding restricted stock units September 30, 2015 3,654 $ 33.64 $ 115,987 Restricted Stock Units Restricted stock unit grants Performance-based (1) Time-based (2) (Number of Units in thousands) Year ended September 30, 2015 313 1,597 (1) The performance-based RSUs were granted to employees, including our executive officers, pursuant to the terms described below. (2) The service-based RSUs were issued to employees, including our executive officers, and our directors. Of these RSUs, approximately 212,000 will vest one year from the date of grant. Substantially all other service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. In 2015, we granted the target performance-based restricted stock units ("target RSUs") shown in the table above to senior level employees, including our executive officers. These RSUs are eligible to vest based upon our total shareholder return relative to a peer group (the “TSR units”), measured annually over a three-year period. The number of TSR units to vest over the three years period will be determined based on the performance of PTC stock relative to the stock performance of an index of PTC peer companies established as of the grant date, as determined at the end of three measurement periods ending on September 30, 2015, 2016 and 2017, respectively. The shares earned for each period will vest on November 15 following each measurement period, up to a maximum of two times or one and one half times, as applicable, the number of target RSUs (up to a maximum of 590,000 shares). No vesting will occur in a period unless an annual threshold requirement is achieved. The employee must remain employed by PTC through the applicable vest date for any RSUs to vest. If the return to PTC shareholders is negative but still meets or exceeds the peer group indexed return, a maximum of 100% of the target RSUs shall vest for the measurement period. TSR units not earned in the first two year measurement periods are eligible to be earned in the third measurement period. The weighted average fair value of the TSR units was $41.32 per target RSU on the grant date. The fair value of the TSR units was determined using a Monte Carlo simulation model, a generally accepted statistical technique used to simulate a range of possible future stock prices for PTC and the peer group. The method uses a risk-neutral framework to model future stock price movements based upon the risk-free rate of return, the volatility of each entity, and the pairwise correlations of each entity being modeled. The fair value for each simulation is the product of the payout percentage determined by PTC’s TSR rank against the peer group, the projected price of PTC stock, and a discount factor based on the risk-free rate. The significant assumptions used in the Monte Carlo simulation model were as follows: Average volatility of peer group 29.8 % Risk free interest rate 0.85 % Dividend yield — % 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. There were 3,000 options outstanding and exercisable at September 30, 2015. Year ended September 30, 2015 2014 2013 Value of stock option and stock-based award activity (in thousands) Total intrinsic value of stock options exercised $ 182 $ 2,040 $ 6,525 Total fair value of restricted stock unit awards vested $ 84,189 $ 79,660 $ 48,083 In 2015 , shares issued upon vesting of restricted stock units were net of 0.8 million shares retained by us to cover employee tax withholdings of $29.2 million . 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 and restricted stock units were net of 0.7 million shares retained by us to cover employee tax withholdings of $15.0 million . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2015 | |
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 and 2013. 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. We repurchased 2.7 million shares at a cost of $64.9 million in 2015, 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 accelerated share repurchase ("ASR") agreement described below) and 3.1 million shares at a cost of $74.9 million in 2013. 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 allowed 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 in August 2014 of 2.3 million shares. We settled the ASR in December 2014 and the Bank delivered to us 1.1 million additional shares. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2015 | |
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 $5.3 million , $5.1 million , and $5.0 million in 2015 , 2014 and 2013 , respectively. |
Pension Plans
Pension Plans | 12 Months Ended |
Sep. 30, 2015 | |
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 maintained a U.S. defined benefit pension plan (the Plan) that covered 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 included settling Plan liabilities by offering lump sum distributions to plan participants and purchasing annuity contracts to cover vested benefits. We completed the termination in the fourth quarter of 2015. In connection with the termination, we contributed $25.5 million to the Plan and recorded a settlement loss of $66.3 million . The following table presents the actuarial assumptions used in accounting for the pension plans: U.S. Plan International Plans 2015 2014 2013 2015 2014 2013 Weighted average assumptions used to determine benefit obligations at September 30 measurement date: Discount rate — % 3.80 % 4.90 % 2.2 % 2.4 % 3.3 % Rate of increase in future compensation (1) — % — % — % 3.0 % 3.0 % 3.0 % Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: Discount rate 3.80 % 4.90 % 4.00 % 2.4 % 3.3 % 3.4 % Rate of increase in future compensation — % — % — % 3.0 % 3.0 % 3.0 % Rate of return on plan assets 1.35 % 7.25 % 7.25 % 5.8 % 5.7 % 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, 2015 and 2014 . 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, 2015 , for the international plans, the weighted long-term rate of return assumption is 5.73% . These rates of return, together with the assumptions used to determine the benefit obligations as of September 30, 2015 in the table above, will be used to determine our 2016 net periodic pension cost, which we expect to be approximately $2 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 2015 2014 2013 2015 2014 2013 (in thousands) Interest cost of projected benefit obligation $ 4,591 $ 5,461 $ 4,989 $ 1,828 $ 2,442 $ 2,384 Service cost — — — 1,466 1,659 2,017 Expected return on plan assets (1,364 ) (7,151 ) (6,128 ) (3,364 ) (2,506 ) (2,126 ) Amortization of prior service cost — — — (4 ) (5 ) (6 ) Recognized actuarial loss 2,577 2,213 3,152 1,815 1,181 1,248 Settlement loss 66,332 — — — — — Net periodic pension cost $ 72,136 $ 523 $ 2,013 $ 1,740 $ 2,771 $ 3,517 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, 2015 2014 2015 2014 2015 2014 (in thousands) Change in benefit obligation: Projected benefit obligation—beginning of year $ 134,453 $ 113,378 $ 84,106 $ 74,956 $ 218,559 $ 188,334 Service cost — — 1,466 1,659 1,466 1,659 Interest cost 4,591 5,461 1,828 2,442 6,419 7,903 Actuarial loss 1,606 20,563 1,988 12,732 3,594 33,295 Foreign exchange impact — — (9,515 ) (6,480 ) (9,515 ) (6,480 ) Participant contributions — — 198 325 198 325 Benefits paid (5,300 ) (4,949 ) (1,883 ) (1,528 ) (7,183 ) (6,477 ) Settlements (135,350 ) — — — (135,350 ) — Projected benefit obligation—end of year $ — $ 134,453 $ 78,188 $ 84,106 $ 78,188 $ 218,559 Change in plan assets and funded status: Plan assets at fair value—beginning of year $ 112,859 $ 94,831 $ 44,491 $ 43,362 $ 157,350 $ 138,193 Actual return on plan assets 2,316 12,425 (438 ) 3,489 1,878 15,914 Employer contributions 25,475 10,552 21,225 2,353 46,700 12,905 Participant contributions — — 198 325 198 325 Foreign exchange impact — — (5,632 ) (3,510 ) (5,632 ) (3,510 ) Settlements (135,350 ) — — — (135,350 ) — Benefits paid (5,300 ) (4,949 ) (1,883 ) (1,528 ) (7,183 ) (6,477 ) Plan assets at fair value—end of year — 112,859 57,961 44,491 57,961 157,350 Projected benefit obligation—end of year — 134,453 78,188 84,106 78,188 218,559 Underfunded status $ — $ (21,594 ) $ (20,227 ) $ (39,615 ) $ (20,227 ) $ (61,209 ) Accumulated benefit obligation—end of year $ — $ 134,453 $ 74,928 $ 80,364 $ 74,928 $ 214,817 Amounts recognized in the balance sheet: Non-current liability $ — $ — $ (20,227 ) $ (39,615 ) $ (20,227 ) $ (39,615 ) Current liability $ — $ (21,594 ) $ — $ — $ — $ (21,594 ) Amounts in accumulated other comprehensive loss: Unrecognized actuarial loss $ — $ 68,256 $ 28,339 $ 27,669 $ 28,339 $ 95,925 We expect to recognize approximately $2 million of the unrecognized actuarial loss as of September 30, 2015 as a component of net periodic pension cost in 2016 . The following table shows change in accumulated other comprehensive loss: U.S. Plan International Plans Total Year ended September 30, 2015 2014 2015 2014 2015 2014 (in thousands) Accumulated other comprehensive loss- beginning of year $ 68,256 $ 55,180 $ 27,669 $ 19,177 $ 95,925 $ 74,357 Recognized during year - net actuarial (losses) (2,577 ) (2,213 ) (1,811 ) (1,176 ) (4,388 ) (3,389 ) Occurring during year - settlement loss (66,332 ) — — — (66,332 ) — Occurring during year - net actuarial losses 653 15,289 5,792 11,749 6,445 27,038 Foreign exchange impact — — (3,311 ) (2,081 ) (3,311 ) (2,081 ) Accumulated other comprehensive loss- end of year $ — $ 68,256 $ 28,339 $ 27,669 $ 28,339 $ 95,925 The following table shows the percentage of total plan assets for each major category of plan assets: U.S. Plan International Plans September 30, 2015 2014 2015 2014 Asset category: Equity securities — % — % 53 % 51 % Fixed income securities — % 100 % 32 % 28 % Insurance company — % — % 13 % 19 % Cash — % — % 2 % 2 % — % 100 % 100 % 100 % We periodically review the pension plans’ investments in the various asset classes. The current asset allocation target is 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 German CoCreate plan's investment policy prohibits 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 2015 , 2014 and 2013 our actual return on plan assets was $1.9 million , $15.9 million and $13.6 million , respectively. Based on actuarial valuations and additional voluntary contributions, we contributed $46.7 million , $12.9 million , and $10.0 million in 2015 , 2014 and 2013 , respectively, to the plans. We expect to make contributions totaling approximately $0.8 million in 2016 for voluntary contributions to a non-U.S. plan. As of September 30, 2015 , benefit payments expected to be paid over the next ten years are outlined in the following table: U.S. Plan International Plans Total (in thousands) Year ending September 30, 2016 $ — $ 1,714 $ 1,714 2017 — 1,810 1,810 2018 — 2,204 2,204 2019 — 2,624 2,624 2020 — 2,906 2,906 2021 to 2025 — 19,827 19,827 Fair Value of Plan Assets 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. September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) International plan assets: Fixed income securities: Government $ 11,086 $ — $ — $ 11,086 Europe corporate investment grade 7,487 — — 7,487 Europe large capitalization stocks 30,887 — — 30,887 Insurance company funds (1) — 7,668 — 7,668 Cash 833 — — 833 $ 50,293 $ 7,668 $ — $ 57,961 (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, 2015 | |
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 training-related products; and (2) Services, which includes consulting, implementation, training, cloud services, computer-based training products, including support on these products, and other services revenue. 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, 2015 2014 2013 (in thousands) Software Products segment revenue $ 973,312 $ 1,032,230 $ 977,523 Services segment revenue 281,930 324,737 316,018 Total revenue $ 1,255,242 $ 1,356,967 $ 1,293,541 Operating income: (1) (2) Software Products segment $ 591,845 $ 663,593 $ 605,963 Services segment 43,029 48,378 37,131 Sales and marketing expenses (355,070 ) (371,392 ) (378,771 ) General and administrative expenses (238,188 ) (144,003 ) (136,999 ) Total operating income $ 41,616 $ 196,576 $ 127,324 Other expense, net (15,091 ) (10,464 ) (1,090 ) Income before income taxes $ 26,525 $ 186,112 $ 126,234 (1) We recorded restructuring charges of $43.4 million in 2015. Software Products included $11.6 million ; Services included $10.4 million ; sales and marketing expenses included $16.3 million ; and general and administrative expenses included $5.1 million of the restructuring charges recorded in 2015.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. (2) The Software Products segment operating income includes depreciation and amortization of $60.7 million , $55.0 million , and $52.6 million in 2015, 2014, and 2013, respectively. The Services segment operating income includes depreciation and amortization of $8.1 million , $7.4 million , and $6.1 million in 2015, 2014, and 2013, respectively. We report revenue by the following four product areas: • CAD: PTC Creo ® and PTC Mathcad ® . • ePLM: PLM solutions (primarily PTC Windchill ® ) and ALM solutions (primarily PTC Integrity ™ ) and Atego ® . • SLM: PTC Arbortext ® and PTC Servigistics ® . • IoT: ThingWorx ® , Axeda ® and ThingWorx Machine Learning™ products. Year ended September 30, 2015 2014 2013 (in thousands) CAD $ 511,582 $ 581,508 $ 552,442 ePLM 524,741 599,312 571,058 SLM 166,060 170,980 170,041 IoT 52,859 5,167 — Total revenue $ 1,255,242 $ 1,356,967 $ 1,293,541 Data for the geographic regions in which we operate is presented below. Year ended September 30, 2015 2014 2013 (in thousands) Revenue: Americas (1) $ 530,311 $ 558,671 $ 522,788 Europe (2) 467,805 528,090 479,877 Pacific Rim 139,165 148,151 161,587 Japan 117,961 122,055 129,289 Total revenue $ 1,255,242 $ 1,356,967 $ 1,293,541 September 30, 2015 2014 2013 (in thousands) Long-lived tangible assets: Americas (3) $ 47,509 $ 51,027 $ 49,788 Europe 7,424 7,020 5,557 Asia-Pacific 10,229 9,736 9,307 Total long-lived tangible assets $ 65,162 $ 67,783 $ 64,652 (1) Includes revenue in the United States totaling $500.6 million , $518.7 million and $485.2 million for 2015 , 2014 and 2013 , respectively. (2) Includes revenue in Germany totaling $177.1 million , $200.3 million and $167.2 million for 2015 , 2014 and 2013 , 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, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Restricted Stock Unit Grants In November 2015, we granted the restricted stock units shown in the table below to employees, including some of our executive officers. The performance-based RSUs are granted to the executive officers only and 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 on October 1, 2015. To the extent earned, these TSR units will vest in three substantially equal installments on the later of November 15, 2016, November 15, 2017 and November 15, 2018, 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 the third period. The number of TSR units that will vest will be based on the level of achievement up to a maximum of 570 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 both employees and our executive officers. In addition, executive officers have opportunity to earn up to one or, for our CEO, two times the number of time-based RSUs (up to a maximum of 302 thousand shares) if certain performance conditions are met. The time-based RSUs will vest in three substantially equal annual installments on November 15, 2016, 2017 and 2018. The performance-based RSUs will vest in three substantially equal installments on the later of November 15, 2016, November 15, 2017 and November 15, 2018, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved. TSR units Performance-Based RSUs Time-Based RSUs (in thousands) Maximum number of RSUs eligible to vest 570 302 839 Intrinsic value on grant date based on the maximum number of RSUs eligible to vest $ 13,382 $ 10,928 $ 30,326 Performance-Based Stock Modification In November 2015, the Compensation of Committee of our Board of Directors modified certain performance-based RSUs previously granted under our long-term incentive programs due to the impact of changes in our business model and foreign currency on our financial results. As a result, we expect to record approximately of $10 million of stock-based compensation expense in the first quarter of 2016 for RSUs that were not expected to vest under the original grant terms. Credit Facility Subsequent to year end, we borrowed $50 million under our credit facility in anticipation of our acquisition of Vuforia described below. On November 4, 2015, we entered into a credit agreement with a syndicate of sixteen banks. This credit facility amended and restated our credit facility described in Note H in its entirety. We expect to use the credit facility for general corporate purposes, including acquisitions of businesses, share repurchases and working capital requirements. The credit facility consists of $1 billion revolving loan commitment which may be increased by an additional $500 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. We borrowed $475 million under the credit agreement to repay an existing term loan under our previous credit facility described in Note H. The revolving loan commitment does not require amortization of principal and may be repaid in whole or in part prior to the scheduled maturity date at PTC's 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. PTC and certain eligible foreign subsidiaries are eligible borrowers under this credit facility. Under the restated credit facility, we must maintain • a total leverage ratio, defined as consolidated total indebtedness to the consolidated trailing four quarters EBITDA, not to exceed ◦ prior to a Covenant Modification Trigger Event (incurring unsecured indebtedness of not less than $200 million in aggregate) (x) 3.50 to 1.00 as of the last day of any fiscal quarter ending on or prior to July 2, 2016, and (y) 3.25 to 1.00 as of the last day of any fiscal quarter ending on or after September 30, 2016 ◦ on and after a Covenant Modification Trigger Event, 4.00 to 1.00 as of the last day of any fiscal quarter. • a senior secured leverage ratio, defined as consolidated total indebtedness to consolidated trailing four quarters EBITDA, not to exceed 3.00 to 1.00 as of the last day of any fiscal quarter ending after a Covenant Modification Trigger Event, 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 not less than 3.50 to 1.00 as of the last day of any fiscal quarter. The obligations under the credit facility are guaranteed by PTC and certain of its material domestic subsidiaries. In addition, PTC and certain of its material domestic subsidiaries' owned property (including equity interests) is subject to first priority perfected liens in favor of the lenders of this credit facility. 100% of the voting equity interests of certain of PTC’s domestic subsidiaries and 65% of its material first-tier foreign subsidiaries are pledged as collateral for the obligations under the credit facility. Other terms of the credit facility including interest rates, commitment fees, and restrictions are substantially the same as the previous credit facility. Acquisition On November 3, 2015, pursuant to an Asset Purchase Agreement, PTC acquired Vuforia business from Qualcomm Connected Experiences, Inc., a subsidiary of Qualcomm Incorporated, for approximately $65 million in cash. We acquired Vuforia and its augmented reality technology platform to enrich PTC’s technology portfolio. At the time of the acquisition, Vuforia had approximately 80 employees and historical annualized revenues were not material. We have not yet completed our acquisition accounting. Restructuring On October 23, 2015, we committed to a plan to restructure our workforce and consolidate select facilities in order to reduce our cost structure and to realign our investments with our highest growth opportunities. The restructuring is expected to result in a charge of approximately $40 million to $50 million , which is primarily attributable to termination benefits, substantially all of which will be recorded in our first fiscal quarter ending January 2, 2016. The restructuring will result in cash expenditures of approximately $40 million to $50 million , which we expect will primarily be paid over the first three quarters of fiscal 2016. We expect that the effect of the expense reductions, offset by certain planned cost increases and investments in our business, will result in a decrease in costs and expenses of approximately $17 million in 2016, as compared to 2015. |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Sep. 30, 2015 | |
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 Statements 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 Our sources of revenue include: (1) license and subscription, (2) support and (3) professional services. We record revenues in accordance with the guidance provided by ASC 985-605, Software-Revenue Recognition when the following criteria are met: (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. 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. Our primary judgments involve the following: • determining whether collection is probable; • assessing whether the fee is fixed or determinable; • determining whether service arrangements, including modifications and customization of the underlying software, are not essential to the functionality of the licensed software and thus would result in the revenue for license and service elements of an agreement being recorded separately; and • determining the fair value of services and support elements included in multiple-element arrangements, which is the basis for allocating and deferring revenue for such services and support. 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. 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. License and Subscription License and subscription revenue includes revenue from three primary sources: (1) sales of perpetual licenses, (2) subscription-based licenses, and (3) cloud services. Under perpetual license arrangements, we generally recognize license revenue up front upon shipment to the customer. We use the residual method to recognize revenue from perpetual license 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 below. Under the residual method, the fair value of the undelivered elements (i.e., support and services) based on our vendor-specific objective evidence (“VSOE”) of fair value is deferred and the remaining portion of the total arrangement fee is allocated to the delivered elements (i.e., perpetual 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 is determined based on a substantive 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 elements to ensure that it reflects our recent pricing experience. Subscription-based licenses include the right for a customer to use our licenses and receive related support for a specified term and revenue is recognized ratably over the term of the arrangement. When sold in arrangements with other elements, VSOE of fair value is established for the subscription-based licenses through the use of a substantive renewal clause within the customer contract for a combined annual fee that includes the term-based license and related support. Cloud services reflect recurring revenues that include fees for hosting and application management of customers’ perpetual or subscription-based licenses. Generally, customers have the right to terminate the cloud services contract and take possession of the licenses without a significant penalty. When cloud services are sold as part of a multi-element transaction, revenue is allocated to cloud services based on VSOE, and recognized ratably over the contractual term beginning on the commencement dates of each contract, which is the date the services are made available to the customer. VSOE is established for cloud services either through a substantive stated renewal option or stated contractual overage rates, as these rates represent the value the customer is willing to pay on a standalone basis. In addition, cloud services include set-up fees, which are recognized ratably over the contract term or the expected customer life, whichever is longer. Support 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. Professional Services Our software arrangements often include implementation, consulting and training 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 (i.e. VSOE of fair value). We consider various factors in assessing whether a service is not essential to the functionality of the software, including if the services may be provided by independent third parties experienced in providing such services (i.e. consulting and implementation) in coordination with dedicated customer personnel, and whether the services result in significant modification or customization of the software’s functionality. When professional services qualify for separate accounting, professional services revenues under time and materials billing arrangements are recognized as the services are performed. Professional services 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 professional services that are 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 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. Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in professional services revenue, with the offsetting expense recorded in cost of professional services 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 customer receivable is included in other current assets. Billed but uncollected support and subscription-related amounts included in other current assets at September 30, 2015 and 2014 were $129.3 million and $116.2 million , respectively. Deferred revenue consisted of the following: September 30, 2015 2014 (in thousands) Deferred license and subscription revenue $ 42,418 $ 30,440 Deferred support revenue 331,793 335,827 Deferred professional services revenue 12,639 16,277 Total deferred revenue $ 386,850 $ 382,544 |
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, 2015 or 2014 . |
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. Generally accepted accounting principles 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, 2015 and 2014 were as follows: September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash equivalents (1) $ 91,216 $ — $ — $ 91,216 Forward contracts — 507 — 507 $ 91,216 $ 507 $ — $ 91,723 Financial liabilities: Contingent consideration related to ThingWorx & ColdLight acquisitions $ — $ — $ 13,000 $ 13,000 Forward contracts — 46 — 46 $ — $ 46 $ 13,000 $ 13,046 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 |
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 $1.0 million as of September 30, 2015 , $1.6 million as of September 30, 2014 , $3.0 million as of September 30, 2013 and $3.4 million as of September 30, 2012 . Uncollectible trade accounts receivable written-off, net of recoveries, were $0.8 million , $0.6 million and $0.6 million in 2015 , 2014 and 2013 , respectively. Bad debt (credit) expense was $0.2 million , $(0.8) million and $0.2 million in 2015 , 2014 and 2013 , 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 an S&P bond rating of BBB- or above, we designate the customer as a Tier 1. If a customer does not have an 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, 2015 and 2014 , amounts due from customers for contracts with original payment terms greater than twelve months (financing receivables) totaled $27.4 million and $58.1 million , respectively. Accounts receivable and other current assets in the accompanying Consolidated Balance Sheets include current receivables from such contracts totaling $21.8 million and $44.6 million at September 30, 2015 and 2014 , respectively, and other assets in the accompanying Consolidated Balance Sheets include long-term receivables from such contracts totaling $5.6 million and $13.5 million at September 30, 2015 and 2014 , respectively. As of September 30, 2015 and September 30, 2014 , respectively, $0.5 million and $0 of these receivables were past due. Our credit risk assessment for financing receivables was as follows: September 30, 2015 2014 (in thousands) S&P bond rating BBB- and above-Tier 1 $ 16,841 $ 41,152 Internal Credit Assessment-Tier 2 10,593 16,989 Internal Credit Assessment-Tier 3 — — Total financing receivables $ 27,434 $ 58,141 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, 2015 and 2014 , 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 2015 , 2014 and 2013 . 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 2015 , 2014 and 2013 , we sold $3.0 million , $24.5 million and $17.0 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, 2015 and 2014 , we had outstanding forward contracts with notional amounts equivalent to the following: September 30, Currency Hedged 2015 2014 (in thousands) Canadian/U.S. Dollar $ 17,448 $ 25,583 Euro/U.S. Dollar 82,917 61,751 British Pound/Euro 9,409 14,259 Israeli Sheqel/U.S. Dollar 4,607 6,144 Japanese Yen/Euro 25,133 — Swiss Franc/U.S. Dollar 5,149 1,200 All other 12,592 8,051 Total $ 157,255 $ 116,988 The accompanying Consolidated Balance Sheets include net assets of $0.5 million and $0.3 million in other current assets as of September 30, 2015 and 2014, respectively and a net liability of $46.0 thousand and $0.9 million in accrued expenses and other current liabilities as of September 30, 2015 and 2014 , 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 $2.7 million , $4.5 million and $2.0 million for 2015 , 2014 and 2013 , 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 a net gain of $0.6 million in 2015 , a net loss of $3.8 million in 2014 , 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 2015 , 2014 or 2013 . In connection with acquisitions of businesses described in Note E, we capitalized software of $13.6 million and $48.9 million in 2015 and 2014 , 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 July 4, 2015 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 July 4, 2015 . 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 $1.1 million , $2.2 million and $4.2 million in 2015 , 2014 and 2013 , 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 Statements 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, 2015 and 2014 , was comprised of cumulative translation adjustment losses of $71.6 million and $24.5 million , respectively, and unrecognized actuarial losses related to pension benefits of $28.3 million ( $20.1 million net of tax) and $95.9 million ( $69.9 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, 2015 2014 2013 (in thousands, except per share data) Net income $ 47,557 $ 160,194 $ 143,769 Weighted average shares outstanding 114,775 118,094 119,473 Dilutive effect of employee stock options, restricted shares and restricted stock units 1,237 1,890 1,767 Diluted weighted average shares outstanding 116,012 119,984 121,240 Basic earnings per share $ 0.41 $ 1.36 $ 1.20 Diluted earnings per share $ 0.41 $ 1.34 $ 1.19 |
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 Statements of Operations related to stock-based compensation. |
Description of Business and B25
Description of Business and Basis of Presentation (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Reclassifications | The following revenue and costs have been reclassified in the accompanying Consolidated Statements of Operations for the year ended September 30, 2014 and 2013 to conform to the current period presentation. Year Ended September 30, 2014 2013 Reclassifications within revenue (in millions) From Services to L&S $ 16.3 $ 10.0 From Support to L&S 3.7 — $ 20.0 $ 10.0 Reclassifications within cost of revenue From Services to L&S $ 12.9 $ 6.0 From Support to L&S 0.4 — $ 13.3 $ 6.0 |
Summary Of Significant Accoun26
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Deferred Revenue | Deferred revenue consisted of the following: September 30, 2015 2014 (in thousands) Deferred license and subscription revenue $ 42,418 $ 30,440 Deferred support revenue 331,793 335,827 Deferred professional services revenue 12,639 16,277 Total deferred revenue $ 386,850 $ 382,544 |
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, 2015 and 2014 were as follows: September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash equivalents (1) $ 91,216 $ — $ — $ 91,216 Forward contracts — 507 — 507 $ 91,216 $ 507 $ — $ 91,723 Financial liabilities: Contingent consideration related to ThingWorx & ColdLight acquisitions $ — $ — $ 13,000 $ 13,000 Forward contracts — 46 — 46 $ — $ 46 $ 13,000 $ 13,046 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 (1) Money market funds and time deposits. |
Financing Receivable Credit Quality Indicators | As of September 30, 2015 and September 30, 2014 , respectively, $0.5 million and $0 of these receivables were past due. Our credit risk assessment for financing receivables was as follows: September 30, 2015 2014 (in thousands) S&P bond rating BBB- and above-Tier 1 $ 16,841 $ 41,152 Internal Credit Assessment-Tier 2 10,593 16,989 Internal Credit Assessment-Tier 3 — — Total financing receivables $ 27,434 $ 58,141 |
Notional Amounts Of Outstanding Forward Contracts | As of September 30, 2015 and 2014 , we had outstanding forward contracts with notional amounts equivalent to the following: September 30, Currency Hedged 2015 2014 (in thousands) Canadian/U.S. Dollar $ 17,448 $ 25,583 Euro/U.S. Dollar 82,917 61,751 British Pound/Euro 9,409 14,259 Israeli Sheqel/U.S. Dollar 4,607 6,144 Japanese Yen/Euro 25,133 — Swiss Franc/U.S. Dollar 5,149 1,200 All other 12,592 8,051 Total $ 157,255 $ 116,988 |
Earnings Per Share Basic And Diluted | The following table presents the calculation for both basic and diluted EPS: Year ended September 30, 2015 2014 2013 (in thousands, except per share data) Net income $ 47,557 $ 160,194 $ 143,769 Weighted average shares outstanding 114,775 118,094 119,473 Dilutive effect of employee stock options, restricted shares and restricted stock units 1,237 1,890 1,767 Diluted weighted average shares outstanding 116,012 119,984 121,240 Basic earnings per share $ 0.41 $ 1.36 $ 1.20 Diluted earnings per share $ 0.41 $ 1.34 $ 1.19 |
Summary Of Significant Accoun27
Summary Of Significant Accounting Policies Changes in fair value of contingent consideration (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
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 acquisitions of ThingWorx and ColdLight were as follows: Contingent Consideration (in thousands) ThingWorx ColdLight Balance at October 1, 2013 — — Contingent consideration at acquisition 13,048 — Change in fair value of contingent consideration 2,143 — Balance at October 1, 2014 15,191 — Contingent consideration at acquisition — 3,800 Change in fair value of contingent consideration 2,809 200 Payment of contingent consideration (9,000 ) — Balance at September 30, 2015 $ 9,000 $ 4,000 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
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, 2015 : Employee Severance and Related Benefits Facility Closures and Other Costs Consolidated Total (in thousands) Balance, October 1, 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 Charges to operations 41,997 1,412 43,409 Cash disbursements (52,882 ) (706 ) (53,588 ) Foreign currency impact (864 ) (73 ) (937 ) Balance, September 30, 2015 $ 14,086 $ 1,168 $ 15,254 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The total purchase price for ColdLight was allocated to assets and liabilities acquired as follows: Purchase price allocation: (in thousands) Goodwill $ 85,288 Identifiable intangible assets 17,620 Cash 1,313 Other assets and liabilities, net (516 ) Total allocation of purchase price consideration 103,705 Less: cash acquired (1,313 ) Total purchase price allocation, net of cash acquired 102,392 Less: contingent consideration (3,800 ) Net cash used to acquire ColdLight $ 98,592 |
Pro Forma Financial Information | Year ended September 30, 2013 (in millions, except per share amounts) Revenue $ 1,296.6 Net income $ 116.5 Earnings per share—Basic $ 0.98 Earnings per share—Diluted $ 0.96 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components Of Property And Equipment | Property and equipment consisted of the following: September 30, 2015 2014 (in thousands) Computer hardware and software $ 246,756 $ 230,591 Furniture and fixtures 18,370 19,025 Leasehold improvements 38,005 36,896 Gross property and equipment 303,131 286,512 Accumulated depreciation and amortization (237,969 ) (218,729 ) Net property and equipment $ 65,162 $ 67,783 |
Goodwill and Acquired Intangi31
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Acquired Intangible Assets | Goodwill and acquired intangible assets consisted of the following: September 30, 2015 September 30, 2014 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Goodwill (not amortized) $ 1,069,041 $ 1,012,527 Intangible assets with finite lives (amortized) (1): Purchased software $ 284,257 $ 174,887 $ 109,370 $ 278,012 $ 162,259 $ 115,753 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 349,938 174,017 175,921 360,530 147,469 213,061 Trademarks and trade names 18,534 12,759 5,775 18,479 10,964 7,515 Other 3,946 3,711 235 4,117 3,573 544 $ 679,552 $ 388,251 $ 291,301 $ 684,015 $ 347,142 $ 336,873 Total goodwill and acquired intangible assets $ 1,360,342 $ 1,349,400 (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, 10 years and 3 years, respectively. |
Schedule Of Movements in Goodwill by Reportable Segment | Changes in goodwill presented by reportable segment were as follows: Software Products Segment Services Segment Total (in thousands) Balance, October 1, 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 Axeda adjustment of purchase price from escrow (180 ) — (180 ) Acquisition of ColdLight 85,288 — 85,288 Foreign currency translation adjustments (28,463 ) (131 ) (28,594 ) Balance, September 30, 2015 $ 1,016,413 $ 52,628 $ 1,069,041 |
Amortization Of Intangible Assets | The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2015 , 2014 and 2013 was reflected in our Consolidated Statements of Operations as follows: Year ended September 30, 2015 2014 2013 (in thousands) Amortization of acquired intangible assets $ 36,129 $ 32,127 $ 26,486 Cost of license and subscription revenue 19,402 18,112 18,586 Total amortization expense $ 55,531 $ 50,239 $ 45,072 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 2013 (in thousands) Domestic $ (110,867 ) $ 17,038 $ 6,112 Foreign 137,392 169,074 120,122 Total income before income taxes $ 26,525 $ 186,112 $ 126,234 |
Schedule Of Provision For (Benefit From) Income Taxes | Our (benefit) provision for income taxes consisted of the following: Year ended September 30, 2015 2014 2013 (in thousands) Current: Federal $ 3,907 $ 12,792 $ 7,081 State 599 2,062 1,512 Foreign 23,823 31,010 13,586 28,329 45,864 22,179 Deferred: Federal (20,809 ) (13,200 ) (38,224 ) State (566 ) (2,085 ) (4,718 ) Foreign (27,986 ) (4,661 ) 3,228 (49,361 ) (19,946 ) (39,714 ) Total provision (benefit) for income taxes $ (21,032 ) $ 25,918 $ (17,535 ) |
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, 2015 2014 2013 Statutory federal income tax rate 35 % 35 % 35 % Change in valuation allowance 63 % (11 )% (32 )% State income taxes, net of federal tax benefit 7 % 1 % 1 % Federal and state research and development credits (8 )% — % (1 )% Resolution of uncertain tax positions (11 )% — % (1 )% Foreign rate differences (213 )% (19 )% (26 )% Foreign withholding tax 14 % 3 % 5 % U.S. permanent items 34 % 4 % 5 % Other, net — % 1 % — % Effective income tax rate (79 )% 14 % (14 )% |
Schedule Of Deferred Tax Assets And Liabilities | The significant temporary differences that created deferred tax assets and liabilities are shown below: September 30, 2015 2014 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 71,533 $ 57,677 Foreign tax credits 15,962 9,022 Capitalized research and development expense 31,690 41,720 Pension benefits 11,009 39,063 Deferred revenue 71,399 67,433 Stock-based compensation 16,777 18,828 Other reserves not currently deductible 21,940 24,273 Amortization of intangible assets 62,227 9,302 Other tax credits 37,270 30,982 Depreciation 3,465 3,157 Capital loss carryforward 8,040 7,964 Other 10,116 7,118 Gross deferred tax assets 361,428 316,539 Valuation allowance (198,168 ) (177,541 ) Total deferred tax assets 163,260 138,998 Deferred tax liabilities: Acquired intangible assets not deductible (124,401 ) (110,003 ) Pension prepayments (395 ) (20,263 ) Deferred revenue (3,110 ) (1,446 ) Other (3,598 ) (4,484 ) Total deferred tax liabilities (131,504 ) (136,196 ) Net deferred tax assets $ 31,756 $ 2,802 |
Summary Of Valuation Allowance | The changes to the valuation allowance were primarily due to: Year ended September 30, 2015 2014 2013 (in millions) Valuation allowance beginning of year $ 177.5 $ 156.5 $ 170.4 Net release of valuation allowance (1) (18.7 ) (18.1 ) (44.6 ) Net increase/decrease in deferred tax assets for foreign jurisdictions with a full valuation allowance (1.9 ) (5.2 ) 1.9 Establish valuation allowance for acquired businesses — 21.5 12.1 Establish valuation allowance in foreign jurisdictions — 3.5 — Adjust deferred tax asset and valuation allowance 41.3 19.3 16.7 Valuation allowance end of year $ 198.2 $ 177.5 $ 156.5 (1) In 2014 and 2013, this is attributable to recognition of deferred tax liabilities recorded in connection with accounting for acquisitions and in 2015 and 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 2015 2014 2013 (in millions) Unrecognized tax benefit beginning of year $ 15.0 $ 13.7 $ 19.1 Tax positions related to current year: Additions 1.3 2.2 1.0 Tax positions related to prior years: Additions 0.8 0.3 1.8 Reductions (3.0 ) (0.1 ) (6.3 ) Settlements — (0.6 ) (0.7 ) Statute expirations — (0.5 ) (1.2 ) Unrecognized tax benefit end of year $ 14.1 $ 15.0 $ 13.7 |
Summary Of Income Tax Examinations Years | As of September 30, 2015 , 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 2015 Germany 2011 through 2015 France 2013 through 2015 Japan 2009 through 2015 Ireland 2011 through 2015 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | At September 30, 2015 , our future minimum lease payments under noncancellable operating leases are as follows: Year ending September 30, (in thousands) 2016 $ 35,829 2017 26,582 2018 21,705 2019 18,242 2020 15,033 Thereafter 26,698 Total minimum lease payments $ 144,089 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 2013 (in thousands) Cost of license and subscription revenue $ 521 $ 314 $ 21 Cost of support revenue 3,775 3,745 3,324 Cost of professional services revenue 5,871 6,351 6,134 Sales and marketing 12,223 10,982 11,326 Research and development 11,623 10,119 8,590 General and administrative 16,169 19,378 19,392 Total stock-based compensation expense $ 50,182 $ 50,889 $ 48,787 |
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, 2015 313 1,597 (1) The performance-based RSUs were granted to employees, including our executive officers, pursuant to the terms described below. (2) The service-based RSUs were issued to employees, including our executive officers, and our directors. Of these RSUs, approximately 212,000 will vest one year from the date of grant. Substantially all other service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The significant assumptions used in the Monte Carlo simulation model were as follows: Average volatility of peer group 29.8 % Risk free interest rate 0.85 % Dividend yield — % |
Value Of Stock Option And Stock-Based Award Activity | Year ended September 30, 2015 2014 2013 Value of stock option and stock-based award activity (in thousands) Total intrinsic value of stock options exercised $ 182 $ 2,040 $ 6,525 Total fair value of restricted stock unit awards vested $ 84,189 $ 79,660 $ 48,083 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Activity | Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value as of September 30, 2015 Restricted stock unit activity for the year ended September 30, 2015 (in thousands except grant date fair value data) Balance of nonvested outstanding restricted stock units October 1, 2014 4,379 $ 26.87 Granted 1,910 $ 38.19 Vested (2,206 ) $ 24.67 Forfeited or not earned (429 ) $ 30.94 Balance of nonvested outstanding restricted stock units September 30, 2015 3,654 $ 33.64 $ 115,987 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
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 2015 2014 2013 2015 2014 2013 Weighted average assumptions used to determine benefit obligations at September 30 measurement date: Discount rate — % 3.80 % 4.90 % 2.2 % 2.4 % 3.3 % Rate of increase in future compensation (1) — % — % — % 3.0 % 3.0 % 3.0 % Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: Discount rate 3.80 % 4.90 % 4.00 % 2.4 % 3.3 % 3.4 % Rate of increase in future compensation — % — % — % 3.0 % 3.0 % 3.0 % Rate of return on plan assets 1.35 % 7.25 % 7.25 % 5.8 % 5.7 % 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, 2015 and 2014 . |
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 2015 2014 2013 2015 2014 2013 (in thousands) Interest cost of projected benefit obligation $ 4,591 $ 5,461 $ 4,989 $ 1,828 $ 2,442 $ 2,384 Service cost — — — 1,466 1,659 2,017 Expected return on plan assets (1,364 ) (7,151 ) (6,128 ) (3,364 ) (2,506 ) (2,126 ) Amortization of prior service cost — — — (4 ) (5 ) (6 ) Recognized actuarial loss 2,577 2,213 3,152 1,815 1,181 1,248 Settlement loss 66,332 — — — — — Net periodic pension cost $ 72,136 $ 523 $ 2,013 $ 1,740 $ 2,771 $ 3,517 |
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, 2015 2014 2015 2014 2015 2014 (in thousands) Change in benefit obligation: Projected benefit obligation—beginning of year $ 134,453 $ 113,378 $ 84,106 $ 74,956 $ 218,559 $ 188,334 Service cost — — 1,466 1,659 1,466 1,659 Interest cost 4,591 5,461 1,828 2,442 6,419 7,903 Actuarial loss 1,606 20,563 1,988 12,732 3,594 33,295 Foreign exchange impact — — (9,515 ) (6,480 ) (9,515 ) (6,480 ) Participant contributions — — 198 325 198 325 Benefits paid (5,300 ) (4,949 ) (1,883 ) (1,528 ) (7,183 ) (6,477 ) Settlements (135,350 ) — — — (135,350 ) — Projected benefit obligation—end of year $ — $ 134,453 $ 78,188 $ 84,106 $ 78,188 $ 218,559 Change in plan assets and funded status: Plan assets at fair value—beginning of year $ 112,859 $ 94,831 $ 44,491 $ 43,362 $ 157,350 $ 138,193 Actual return on plan assets 2,316 12,425 (438 ) 3,489 1,878 15,914 Employer contributions 25,475 10,552 21,225 2,353 46,700 12,905 Participant contributions — — 198 325 198 325 Foreign exchange impact — — (5,632 ) (3,510 ) (5,632 ) (3,510 ) Settlements (135,350 ) — — — (135,350 ) — Benefits paid (5,300 ) (4,949 ) (1,883 ) (1,528 ) (7,183 ) (6,477 ) Plan assets at fair value—end of year — 112,859 57,961 44,491 57,961 157,350 Projected benefit obligation—end of year — 134,453 78,188 84,106 78,188 218,559 Underfunded status $ — $ (21,594 ) $ (20,227 ) $ (39,615 ) $ (20,227 ) $ (61,209 ) Accumulated benefit obligation—end of year $ — $ 134,453 $ 74,928 $ 80,364 $ 74,928 $ 214,817 Amounts recognized in the balance sheet: Non-current liability $ — $ — $ (20,227 ) $ (39,615 ) $ (20,227 ) $ (39,615 ) Current liability $ — $ (21,594 ) $ — $ — $ — $ (21,594 ) Amounts in accumulated other comprehensive loss: Unrecognized actuarial loss $ — $ 68,256 $ 28,339 $ 27,669 $ 28,339 $ 95,925 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table shows change in accumulated other comprehensive loss: U.S. Plan International Plans Total Year ended September 30, 2015 2014 2015 2014 2015 2014 (in thousands) Accumulated other comprehensive loss- beginning of year $ 68,256 $ 55,180 $ 27,669 $ 19,177 $ 95,925 $ 74,357 Recognized during year - net actuarial (losses) (2,577 ) (2,213 ) (1,811 ) (1,176 ) (4,388 ) (3,389 ) Occurring during year - settlement loss (66,332 ) — — — (66,332 ) — Occurring during year - net actuarial losses 653 15,289 5,792 11,749 6,445 27,038 Foreign exchange impact — — (3,311 ) (2,081 ) (3,311 ) (2,081 ) Accumulated other comprehensive loss- end of year $ — $ 68,256 $ 28,339 $ 27,669 $ 28,339 $ 95,925 |
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, 2015 2014 2015 2014 Asset category: Equity securities — % — % 53 % 51 % Fixed income securities — % 100 % 32 % 28 % Insurance company — % — % 13 % 19 % Cash — % — % 2 % 2 % — % 100 % 100 % 100 % |
Expected Future Benefit Payments | As of September 30, 2015 , benefit payments expected to be paid over the next ten years are outlined in the following table: U.S. Plan International Plans Total (in thousands) Year ending September 30, 2016 $ — $ 1,714 $ 1,714 2017 — 1,810 1,810 2018 — 2,204 2,204 2019 — 2,624 2,624 2020 — 2,906 2,906 2021 to 2025 — 19,827 19,827 |
International Plan Assets [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value Of Plan Assets | September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) International plan assets: Fixed income securities: Government $ 11,086 $ — $ — $ 11,086 Europe corporate investment grade 7,487 — — 7,487 Europe large capitalization stocks 30,887 — — 30,887 Insurance company funds (1) — 7,668 — 7,668 Cash 833 — — 833 $ 50,293 $ 7,668 $ — $ 57,961 (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, 2015 | |
Operating Segments [Member] | |
Segment Reporting Information [Line Items] | |
Revenue And Operating Income | reportable segments: (1) Software Products, which includes license and related support revenue (including updates and technical support) for all our products except training-related products; and (2) Services, which includes consulting, implementation, training, cloud services, computer-based training products, including support on these products, and other services revenue. 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, 2015 2014 2013 (in thousands) Software Products segment revenue $ 973,312 $ 1,032,230 $ 977,523 Services segment revenue 281,930 324,737 316,018 Total revenue $ 1,255,242 $ 1,356,967 $ 1,293,541 Operating income: (1) (2) Software Products segment $ 591,845 $ 663,593 $ 605,963 Services segment 43,029 48,378 37,131 Sales and marketing expenses (355,070 ) (371,392 ) (378,771 ) General and administrative expenses (238,188 ) (144,003 ) (136,999 ) Total operating income $ 41,616 $ 196,576 $ 127,324 Other expense, net (15,091 ) (10,464 ) (1,090 ) Income before income taxes $ 26,525 $ 186,112 $ 126,234 (1) We recorded restructuring charges of $43.4 million in 2015. Software Products included $11.6 million ; Services included $10.4 million ; sales and marketing expenses included $16.3 million ; and general and administrative expenses included $5.1 million of the restructuring charges recorded in 2015.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. (2) The Software Products segment operating income includes depreciation and amortization of $60.7 million , $55.0 million , and $52.6 million in 2015, 2014, and 2013, respectively. The Services segment operating income includes depreciation and amortization of $8.1 million , $7.4 million , and $6.1 million in 2015, 2014, and 2013, respectively. |
Products and Services Segments [Member] | |
Segment Reporting Information [Line Items] | |
Revenue And Operating Income | Year ended September 30, 2015 2014 2013 (in thousands) CAD $ 511,582 $ 581,508 $ 552,442 ePLM 524,741 599,312 571,058 SLM 166,060 170,980 170,041 IoT 52,859 5,167 — Total revenue $ 1,255,242 $ 1,356,967 $ 1,293,541 |
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, 2015 2014 2013 (in thousands) Revenue: Americas (1) $ 530,311 $ 558,671 $ 522,788 Europe (2) 467,805 528,090 479,877 Pacific Rim 139,165 148,151 161,587 Japan 117,961 122,055 129,289 Total revenue $ 1,255,242 $ 1,356,967 $ 1,293,541 September 30, 2015 2014 2013 (in thousands) Long-lived tangible assets: Americas (3) $ 47,509 $ 51,027 $ 49,788 Europe 7,424 7,020 5,557 Asia-Pacific 10,229 9,736 9,307 Total long-lived tangible assets $ 65,162 $ 67,783 $ 64,652 (1) Includes revenue in the United States totaling $500.6 million , $518.7 million and $485.2 million for 2015 , 2014 and 2013 , respectively. (2) Includes revenue in Germany totaling $177.1 million , $200.3 million and $167.2 million for 2015 , 2014 and 2013 , 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, 2015 | |
Subsequent Events [Abstract] | |
Schedule Of Restricted Units Granted | November 2015, we granted the restricted stock units shown in the table below to employees, including some of our executive officers. The performance-based RSUs are granted to the executive officers only and 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 on October 1, 2015. To the extent earned, these TSR units will vest in three substantially equal installments on the later of November 15, 2016, November 15, 2017 and November 15, 2018, 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 the third period. The number of TSR units that will vest will be based on the level of achievement up to a maximum of 570 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 both employees and our executive officers. In addition, executive officers have opportunity to earn up to one or, for our CEO, two times the number of time-based RSUs (up to a maximum of 302 thousand shares) if certain performance conditions are met. The time-based RSUs will vest in three substantially equal annual installments on November 15, 2016, 2017 and 2018. The performance-based RSUs will vest in three substantially equal installments on the later of November 15, 2016, November 15, 2017 and November 15, 2018, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved. TSR units Performance-Based RSUs Time-Based RSUs (in thousands) Maximum number of RSUs eligible to vest 570 302 839 Intrinsic value on grant date based on the maximum number of RSUs eligible to vest $ 13,382 $ 10,928 $ 30,326 |
Description of Business and B38
Description of Business and Basis of Presentation Reclassification (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($)revenue_category | Sep. 30, 2013USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Immaterial Error Correction | 6.4 | ||
Number of revenue categories | revenue_category | 3 | ||
License and subscription | $ 347,999 | $ 389,739 | $ 354,282 |
Cost of license and subscription revenue | $ 53,163 | 45,005 | 39,037 |
Restatement Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
License and subscription | 20,000 | 10,000 | |
Cost of license and subscription revenue | 13,300 | 6,000 | |
From Services to L&S | Restatement Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
License and subscription | 16,300 | 10,000 | |
Cost of license and subscription revenue | 12,900 | 6,000 | |
From Support to L&S | Restatement Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
License and subscription | 3,700 | 0 | |
Cost of license and subscription revenue | $ 400 | $ 0 |
Summary Of Significant Accoun39
Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |||
Sep. 30, 2015USD ($)primary_sourcecustomersmo | Sep. 30, 2014USD ($)customers | Sep. 30, 2013USD ($)customers | Sep. 30, 2012USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Maximum payment terms on software purchases for credit-worthy customers (in months) | mo | 24 | |||
License and subscription revenue, number of primary sources | primary_source | 3 | |||
Major number of customers | customers | 0 | 0 | 0 | |
Ceiling percentage of revenue for major customer | 10.00% | |||
Allowance for doubtful accounts receivable | $ 1,000,000 | $ 1,600,000 | $ 3,000,000 | $ 3,400,000 |
Accounts receivable written-off, net of recoveries | 800,000 | 600,000 | 600,000 | |
Bad debt expense including general and administrative expense | 157,000 | (833,000) | 213,000 | |
Financing receivables | 27,434,000 | 58,141,000 | ||
Financing receivables past due | 528,000 | 0 | 0 | |
Sale of finance receivable | 3,000,000 | 24,500,000 | 17,000,000 | |
Uncollectible financing receivables written-off | 0 | 0 | 0 | |
Net losses on foreign currency exposures | 2,700,000 | 4,500,000 | 2,000,000 | |
Net realized and unrealized gain (loss) on forward contracts (excluding the underlying foreign currency exposure being hedged) | 600,000 | (3,800,000) | 3,400,000 | |
Development costs for software | 0 | 0 | 0 | |
Capitalized software in connection with acquisition | 13,600,000 | 48,900,000 | ||
Advertising expense | 1,100,000 | 2,200,000 | 4,200,000 | |
Cumulative translation adjustment gains (loss) | (71,600,000) | (24,500,000) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | (28,339,000) | (95,925,000) | (74,357,000) | |
Pension benefits net of tax | (20,100,000) | (69,900,000) | ||
Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Financing receivables, current | 21,800,000 | 44,600,000 | ||
Other Assets [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Billed but uncollected support and subscription receivable | 129,300,000 | 116,200,000 | ||
Long-term accounts receivable from customers for contracts with extended payment terms | 5,600,000 | 13,500,000 | ||
Other Current Assets [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
fair value outstanding forward contract | 500,000 | 300,000 | ||
Other Current Liabilities [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
fair value outstanding forward contract | 46,000 | 900,000 | ||
Standard & Poor's, BBB-1 Rating and Above-Tier 1 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Financing receivables | 16,841,000 | 41,152,000 | ||
Internally Assigned Grade, Tier 2 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Financing receivables | 10,593,000 | 16,989,000 | ||
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 (in years) | 3 years | |||
Minimum [Member] | Furniture And Fixtures [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period (in years) | 3 years | |||
Maximum [Member] | Purchased Software [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period (in years) | 11 years | |||
Maximum [Member] | Customer Lists [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period (in years) | 12 years | |||
Maximum [Member] | Trademarks And Trade Names [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period (in years) | 12 years | |||
Maximum [Member] | Computer Hardware And Software [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period (in years) | 5 years | |||
Maximum [Member] | Furniture And Fixtures [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period (in years) | 8 years | |||
Foreign Exchange Forward [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Derivative maturity (in months) | 3 months | |||
Unallocated Financing Receivables [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Reserve for credit losses | $ 0 | $ 0 | $ 0 |
Summary Of Significant Accoun40
Summary Of Significant Accounting Policies (Deferred Revenue) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 386,850 | $ 382,544 |
Deferred Support Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 331,793 | 335,827 |
Deferred Professional Service Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 12,639 | 16,277 |
Deferred License and Subscription Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 42,418 | $ 30,440 |
Summary Of Significant Accoun41
Summary Of Significant Accounting Policies Disclosure Fair Value Unbservable Inputs (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration | $ 15,191 | |||
Fair value of contingent consideration recorded for acquisition | 3,800 | $ 13,048 | $ 0 | |
Contingent consideration | 13,000 | 15,191 | ||
acquired entity name-ThingWorx [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration | 15,191 | 0 | ||
Fair value of contingent consideration recorded for acquisition | 0 | 13,048 | ||
Change in fair value of contingent consideration | 2,809 | 2,143 | ||
payment of contingent consideration | $ (9,000) | |||
Contingent consideration | 9,000 | 15,191 | ||
Acquired entity name: ColdLight [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration | 0 | 0 | ||
Fair value of contingent consideration recorded for acquisition | 3,800 | 0 | ||
Change in fair value of contingent consideration | 200 | 0 | ||
payment of contingent consideration | 0 | |||
Contingent consideration | $ 4,000 | $ 0 |
Summary Of Significant Accoun42
Summary Of Significant Accounting Policies (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | |
Financial assets: | |||
Cash equivalents | [1] | $ 91,216 | $ 101,113 |
Forward contracts | 507 | 339 | |
Financial assets | 91,723 | 101,452 | |
Financial liabilities: | |||
Contingent consideration | 13,000 | 15,191 | |
Forward contracts | 46 | 911 | |
Financial liabilities | 13,046 | 16,102 | |
Level 1 [Member] | |||
Financial assets: | |||
Cash equivalents | [1] | 91,216 | 101,113 |
Forward contracts | 0 | 0 | |
Financial assets | 91,216 | 101,113 | |
Financial liabilities: | |||
Contingent consideration | 0 | 0 | |
Forward contracts | 0 | 0 | |
Financial liabilities | 0 | 0 | |
Level 2 [Member] | |||
Financial assets: | |||
Cash equivalents | 0 | 0 | |
Forward contracts | 507 | 339 | |
Financial assets | 507 | 339 | |
Financial liabilities: | |||
Contingent consideration | 0 | 0 | |
Forward contracts | 46 | 911 | |
Financial liabilities | 46 | 911 | |
Level 3 [Member] | |||
Financial assets: | |||
Cash equivalents | 0 | 0 | |
Forward contracts | 0 | 0 | |
Financial assets | 0 | 0 | |
Financial liabilities: | |||
Contingent consideration | 13,000 | 15,191 | |
Forward contracts | 0 | 0 | |
Financial liabilities | $ 13,000 | $ 15,191 | |
[1] | Money market funds and time deposits. |
Summary Of Significant Accoun43
Summary Of Significant Accounting Policies (Earnings Per Share Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Accounting Policies [Abstract] | |||
Net income | $ 47,557 | $ 160,194 | $ 143,769 |
Weighted average shares outstanding (in shares) | 114,775 | 118,094 | 119,473 |
Dilutive effect of employee stock options, restricted shares and restricted stock units (in shares) | 1,237 | 1,890 | 1,767 |
Diluted weighted average shares outstanding (in shares) | 116,012 | 119,984 | 121,240 |
Basic earnings (loss) per share (in USD per share) | $ 0.41 | $ 1.36 | $ 1.20 |
Diluted earnings (loss) per share (in USD per share) | $ 0.41 | $ 1.34 | $ 1.19 |
Summary Of Significant Accoun44
Summary Of Significant Accounting Policies (Related Party Transaction) (Details) - Director [Member] - Restricted Stock [Member] - USD ($) | Nov. 27, 2013 | Mar. 04, 2015 |
Related Party Transaction [Line Items] | ||
Granted, value | $ 200,000 | |
Shares granted | 6,213 | |
Scenario, Forecast [Member] | ||
Related Party Transaction [Line Items] | ||
Total fee paid | $ 240,000 |
Summary Of Significant Accoun45
Summary Of Significant Accounting Policies Software Development Costs (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Accounting Policies [Abstract] | ||
Capitalized software in connection with acquisition | $ 13.6 | $ 48.9 |
Summary Of Significant Accoun46
Summary Of Significant Accounting Policies Summary of Significant Accounting Policies (Notional amount of foreign currency derivative contract) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 157,255 | $ 116,988 |
Switzerland, Francs | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 5,149 | 1,200 |
Foreign Exchange Forward [Member] | Canada, Dollars | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 17,448 | 25,583 |
Foreign Exchange Forward [Member] | Euro Member Countries, Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 82,917 | 61,751 |
Foreign Exchange Forward [Member] | United Kingdom, Pounds | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 9,409 | 14,259 |
Foreign Exchange Forward [Member] | Israel, New Shekels | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 4,607 | 6,144 |
Foreign Exchange Forward [Member] | Japan, Yen | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 25,133 | 0 |
Foreign Exchange Forward [Member] | All Other [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 12,592 | $ 8,051 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2014USD ($)employees | Sep. 30, 2015USD ($)employee | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($)employees | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 43,409 | $ 28,406 | $ 52,197 | |
Restructuring Charges, Gross | 52,448 | |||
Restructuring Reserve, Accrual Adjustment | 200 | |||
Severance costs | $ 51,000 | |||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 411 | |||
Number of employees associated with costs | employees | 283 | 553 | ||
Employee Severance And Related Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 41,997 | 27,918 | $ 50,874 | |
Facility Closures and Other Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,412 | 488 | 1,323 | |
Operating Leases, Rent Expense, Minimum Rentals | 2,300 | |||
Operating Leases, Rent Expense, Sublease Rentals | $ (900) | |||
Restructuring Plan 2014 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 26,825 | |||
Restructuring Plan 2013 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1,581 | |||
Restructuring Plan 2013 | Facility Closures and Other Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1,494 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | $ 26,370 | $ 19,529 | $ 4,461 |
Restructuring charges | 43,409 | 28,406 | 52,197 |
Cash disbursements | (53,588) | (20,575) | (37,199) |
Foreign currency impact | (937) | (990) | 70 |
Balance, end of period | 15,254 | 26,370 | 19,529 |
Employee Severance And Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | 25,835 | 19,234 | 3,798 |
Restructuring charges | 41,997 | 27,918 | 50,874 |
Cash disbursements | (52,882) | (20,334) | (35,510) |
Foreign currency impact | (864) | (983) | 72 |
Balance, end of period | 14,086 | 25,835 | 19,234 |
Facility Closures and Other Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | 535 | 295 | 663 |
Restructuring charges | 1,412 | 488 | 1,323 |
Cash disbursements | (706) | (241) | (1,689) |
Foreign currency impact | (73) | (7) | (2) |
Balance, end of period | $ 1,168 | $ 535 | $ 295 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | Oct. 02, 2012USD ($)employees | Jul. 31, 2015USD ($) | Mar. 29, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | May. 07, 2015USD ($) |
Acquisition-related cost | $ 8,900 | $ 12,700 | $ 9,900 | ||||
Business acquisition, cost of acquired entity, cash paid | 98,411 | 323,525 | 245,843 | ||||
Proceeds from Lines of Credit | 185,000 | 1,386,250 | 0 | ||||
Payments to Business Combination Contingent Consideration Financing Activities | 4,323 | 0 | 0 | ||||
Contingent consideration | 13,000 | 15,191 | |||||
Atego [Member] | |||||||
Goodwill acquired | 27,256 | ||||||
ThingWorx, Inc. [Member] | |||||||
Business acquisition, cost of acquired entity, cash paid | $ 111,519 | ||||||
Acquisition of businesses, net cash acquired | $ 133 | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 18,000 | ||||||
acquired entity name-ThingWorx [Member] | |||||||
Change in fair value of contingent consideration | 2,809 | 2,143 | |||||
payment of contingent consideration | $ 9,000 | ||||||
Contingent consideration | 9,000 | 15,191 | 0 | ||||
ThingWorx [Member] | |||||||
Goodwill acquired | 102,190 | ||||||
Servigistics, Enigma and NetIDEAS [Member] | |||||||
Deferred Tax Liabilities, Net | 38,700 | ||||||
Servigistics [Member] | |||||||
Revenue from acquisition | $ 80,000 | ||||||
Number of employees added by acquisition | employees | 400 | ||||||
Business acquisition, cost of acquired entity, cash paid | $ 220,818 | ||||||
Acquisition of businesses, net cash acquired | $ 1,400 | ||||||
Deferred tax assets, change in valuation allowance | 32,600 | ||||||
2014 Acquisitions [Member] | |||||||
Deferred Tax Liabilities, Net | 21,600 | ||||||
Acquired entity name: ColdLight [Member] | |||||||
Business acquisition, cost of acquired entity, cash paid | 98,592 | ||||||
Acquisition of businesses, net cash acquired | 1,313 | ||||||
Contingent consideration | 4,000 | $ 3,800 | |||||
Change in fair value of contingent consideration | 200 | 0 | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 5,000 | ||||||
payment of contingent consideration | 0 | ||||||
Goodwill acquired | 85,288 | ||||||
Finite-lived Intangible Assets Acquired | 17,620 | ||||||
Contingent consideration | $ 4,000 | 0 | $ 0 | ||||
Axeda [Member] | |||||||
Goodwill acquired | 130,443 | ||||||
Axeda and Atego Acquisitions [Member] | |||||||
Deferred Tax Liabilities, Net | 12,621 | ||||||
Business acquisition, cost of acquired entity, cash paid | 212,006 | ||||||
Acquisition of businesses, net cash acquired | 13,125 | ||||||
Goodwill acquired | 157,699 | ||||||
Finite-lived Intangible Assets Acquired | 86,920 | ||||||
Purchased Software [Member] | |||||||
Weighted average useful lives of acquired intangible assets | 9 years | ||||||
Purchased Software [Member] | Acquired entity name: ColdLight [Member] | |||||||
Finite-lived Intangible Assets Acquired | $ 13,600 | ||||||
Weighted average useful lives of acquired intangible assets | 10 years | ||||||
Customer Lists [Member] | |||||||
Weighted average useful lives of acquired intangible assets | 10 years | ||||||
Customer Lists [Member] | Acquired entity name: ColdLight [Member] | |||||||
Finite-lived Intangible Assets Acquired | $ 3,500 | ||||||
Weighted average useful lives of acquired intangible assets | 9 years | ||||||
Trademarks and Trade Names [Member] | Acquired entity name: ColdLight [Member] | |||||||
Finite-lived Intangible Assets Acquired | $ 500 | ||||||
Weighted average useful lives of acquired intangible assets | 7 years | ||||||
Segment, Software Products [Member] | Atego [Member] | |||||||
Goodwill acquired | 27,256 | ||||||
Segment, Software Products [Member] | ThingWorx [Member] | |||||||
Goodwill acquired | 102,190 | ||||||
Segment, Software Products [Member] | Acquired entity name: ColdLight [Member] | |||||||
Goodwill acquired | $ 85,288 | ||||||
Segment, Software Products [Member] | Axeda [Member] | |||||||
Goodwill acquired | 126,034 | ||||||
Services [Member] | Atego [Member] | |||||||
Goodwill acquired | 0 | ||||||
Services [Member] | ThingWorx [Member] | |||||||
Goodwill acquired | 0 | ||||||
Services [Member] | Acquired entity name: ColdLight [Member] | |||||||
Goodwill acquired | $ 0 | ||||||
Services [Member] | Axeda [Member] | |||||||
Goodwill acquired | $ 4,409 | ||||||
contingent consideration payment included in financing activities of cash flow [Member] | acquired entity name-ThingWorx [Member] | |||||||
Payments to Business Combination Contingent Consideration Financing Activities | 4,323 | ||||||
contingent consideration payment included in operating activities of cash flow [Member] | acquired entity name-ThingWorx [Member] | |||||||
Payments to Business Combination Contingent Consideration | $ 4,700 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Computer hardware and software | $ 246,756 | $ 230,591 | |
Furniture and fixtures | 18,370 | 19,025 | |
Leasehold improvements | 38,005 | 36,896 | |
Gross property and equipment | 303,131 | 286,512 | |
Accumulated depreciation and amortization | (237,969) | (218,729) | |
Net property and equipment | 65,162 | 67,783 | $ 64,652 |
Depreciation expense | $ 28,900 | $ 27,100 | $ 31,500 |
Acquisitions (Pro Forma Financi
Acquisitions (Pro Forma Financial Information) (Details) - Servigistics [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Sep. 30, 2013USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ | $ 1,296.6 |
Net income | $ | $ 116.5 |
Earnings per share-Basic (in USD per share) | $ 0.98 |
Earnings per share-Diluted (in USD per share) | $ 0.96 |
Acquisitions Acquisitions (Purc
Acquisitions Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Business Acquisition [Line Items] | |||
Net cash used to acquire | $ 98,411 | $ 323,525 | $ 245,843 |
Acquired entity name: ColdLight [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 85,288 | ||
Identifiable intangible assets | 17,620 | ||
Cash | 1,313 | ||
Other assets and liabilities, net | (516) | ||
Total allocation of purchase price consideration | 103,705 | ||
Less: cash acquired | (1,313) | ||
Total purchase price allocation, net of cash acquired | 102,392 | ||
Less: contingent consideration | (3,800) | ||
Net cash used to acquire | $ 98,592 |
Acquisition (Business Combinati
Acquisition (Business Combination) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | May. 07, 2015 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Acquisition-related cost | $ 8,900 | $ 12,700 | $ 9,900 | |
Payments to Acquire Businesses, Net of Cash Acquired | 98,411 | 323,525 | 245,843 | |
Borrowings under credit facility | 185,000 | 1,386,250 | $ 0 | |
Credit facility, borrowings outstanding | 668,100 | |||
Acquired entity name: ColdLight [Member] | ||||
Acquired entity Name | ||||
Goodwill, Acquired During Period | 85,288 | |||
Finite-lived Intangible Assets Acquired | 17,620 | |||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, Low | 3,800 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 98,592 | |||
Cash Acquired from Acquisition | 1,313 | |||
Business Combination, Consideration Transferred | 102,392 | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 5,000 | |||
Contingent consideration | 4,000 | $ 3,800 | ||
Increase in estimated fair value of liability | 200 | 0 | ||
Business acquisition, acquired net assets excluding goodwill, intangible assets and cash | (516) | |||
acquired entity name-ThingWorx [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Increase in estimated fair value of liability | $ 2,809 | $ 2,143 | ||
Computer Software, Intangible Asset [Member] | ||||
Acquired entity Name | ||||
Weighted average useful lives of acquired intangible assets | 9 years | |||
Computer Software, Intangible Asset [Member] | Acquired entity name: ColdLight [Member] | ||||
Acquired entity Name | ||||
Finite-lived Intangible Assets Acquired | $ 13,600 | |||
Weighted average useful lives of acquired intangible assets | 10 years | |||
Customer Lists [Member] | ||||
Acquired entity Name | ||||
Weighted average useful lives of acquired intangible assets | 10 years | |||
Customer Lists [Member] | Acquired entity name: ColdLight [Member] | ||||
Acquired entity Name | ||||
Finite-lived Intangible Assets Acquired | $ 3,500 | |||
Weighted average useful lives of acquired intangible assets | 9 years | |||
Trademarks and Trade Names [Member] | Acquired entity name: ColdLight [Member] | ||||
Acquired entity Name | ||||
Finite-lived Intangible Assets Acquired | $ 500 | |||
Weighted average useful lives of acquired intangible assets | 7 years | |||
Number of Employees, Total [Member] | Acquired entity name: ColdLight [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Business Acquisition, Description of Acquired Entity, Number of Employee Acquired | 60 | |||
Line of Credit [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Credit facility, borrowings outstanding | $ 193,100 | |||
Revolving Loan, Reset October 6, 2015 | Line of Credit [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Credit facility, borrowings outstanding | $ 100,000 |
Goodwill and Acquired Intangi54
Goodwill and Acquired Intangible Assets (Narrative) (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2015USD ($)segments | Sep. 30, 2014USD ($) | |
Number of reportable segments | segments | 2 | |
Estimated aggregate future amortization expense for intangible assets, 2016 | $ 49.9 | |
Estimated aggregate future amortization expense for intangible assets, 2017 | 47.8 | |
Estimated aggregate future amortization expense for intangible assets, 2018 | 46.1 | |
Estimated aggregate future amortization expense for intangible assets, 2019 | 38.4 | |
Estimated aggregate future amortization expense for intangible assets, 2020 | 35.4 | |
Estimated aggregate future amortization expense for intangible assets, thereafter | 73.7 | |
Software Products [Member] | ||
Goodwill and acquired intangible assets | 1,297.9 | $ 1,283 |
Services [Member] | ||
Goodwill and acquired intangible assets | $ 62.4 | $ 66.4 |
Goodwill and Acquired Intangi55
Goodwill and Acquired Intangible Assets (Goodwill and Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Goodwill (not amortized), Net Book Value | $ 1,069,041 | $ 1,012,527 | $ 769,095 | |
Intangible assets with finite lives (amortized), Gross Carrying Amount | 679,552 | 684,015 | ||
Intangible assets with finite lives (amortized), Accumulated Amortization | 388,251 | 347,142 | ||
Intangible assets with finite lives (amortized), Net Book Value | 291,301 | 336,873 | ||
Total goodwill and acquired intangible assets | 1,360,342 | 1,349,400 | ||
Purchased Software [Member] | ||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | 284,257 | 278,012 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 174,887 | 162,259 | |
Intangible assets with finite lives (amortized), Net Book Value | [1] | $ 109,370 | 115,753 | |
Weighted average useful lives (in years) | 9 years | |||
Capitalized Software [Member] | ||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | $ 22,877 | 22,877 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 22,877 | 22,877 | |
Intangible assets with finite lives (amortized), Net Book Value | [1] | 0 | 0 | |
Customer Lists [Member] | ||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | 349,938 | 360,530 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 174,017 | 147,469 | |
Intangible assets with finite lives (amortized), Net Book Value | [1] | $ 175,921 | 213,061 | |
Weighted average useful lives (in years) | 10 years | |||
Trademarks And Trade Names [Member] | ||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | $ 18,534 | 18,479 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 12,759 | 10,964 | |
Intangible assets with finite lives (amortized), Net Book Value | [1] | $ 5,775 | 7,515 | |
Weighted average useful lives (in years) | 10 years | |||
Other [Member] | ||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | $ 3,946 | 4,117 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 3,711 | 3,573 | |
Intangible assets with finite lives (amortized), Net Book Value | [1] | $ 235 | $ 544 | |
Weighted average useful lives (in 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, 10 years and 3 years, respectively. |
Goodwill and Acquired Intangi56
Goodwill and Acquired Intangible Assets (Schedule Of Movements of Goodwill by Reportable Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 1,012,527 | $ 769,095 |
Foreign currency translation and other adjustments | (28,594) | (16,457) |
Balance, end of period | 1,069,041 | 1,012,527 |
Software Products [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 959,768 | 720,548 |
Foreign currency translation and other adjustments | (28,463) | (16,260) |
Balance, end of period | 1,016,413 | 959,768 |
Services [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 52,759 | 48,547 |
Foreign currency translation and other adjustments | (131) | (197) |
Balance, end of period | 52,628 | 52,759 |
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 | |
Acquired entity name: Axeda [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Purchase Accounting Adjustments | (180) | |
Acquired entity name: Axeda [Member] | Software Products [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Purchase Accounting Adjustments | (180) | |
Acquired entity name: Axeda [Member] | Services [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Purchase Accounting Adjustments | 0 | |
Acquired entity name: ColdLight [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 85,288 | |
Acquired entity name: ColdLight [Member] | Software Products [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 85,288 | |
Acquired entity name: ColdLight [Member] | Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | $ 0 |
Goodwill and Acquired Intangi57
Goodwill and Acquired Intangible Assets (Amortization Of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of acquired intangible assets | $ 36,129 | $ 32,127 | $ 26,486 |
Cost of license and subscription | 19,402 | 18,112 | 18,586 |
Total amortization expense | $ 55,531 | $ 50,239 | $ 45,072 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Jan. 03, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($)foreign_subsidiary | Sep. 30, 2013USD ($) | Sep. 30, 2012USD ($) | |
Income Tax Disclosure [Line Items] | |||||
Effective income tax rate | (79.00%) | 14.00% | (14.00%) | ||
Income before income taxes | $ 26,525,000 | $ 186,112,000 | $ 126,234,000 | ||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ (24,000,000) | ||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | 14,500,000 | ||||
Pension valuation allowance | (18,700,000) | ||||
Deferred Other Tax Expense (Benefit) | (1,400,000) | ||||
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | $ (2,100,000) | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Withholding, Amount | 3,800,000 | $ 5,100,000 | $ 6,000,000 | ||
Other Tax Expense (Benefit) | 3,100,000 | ||||
Change in foreign income tax withholding valuation allowance | 0 | $ 3,500,000 | 0 | ||
Number of foreign subsidiaries included in valuation allowance | foreign_subsidiary | 2 | ||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount | (5,300,000) | ||||
Tax provision related to research and development cost sharing prepayment | 2,000,000 | $ 7,800,000 | |||
Prepaid income taxes | 8,200,000 | $ 6,300,000 | |||
Income taxes payable | 14,700,000 | 17,700,000 | |||
Accrued income taxes | 4,000,000 | 9,300,000 | |||
Other current liabilities | 2,200,000 | 1,300,000 | |||
Other liabilities | 8,500,000 | 7,100,000 | |||
Income tax payments | 30,100,000 | 25,500,000 | 35,400,000 | ||
Net deferred tax assets | 31,756,000 | 2,802,000 | |||
Net operating loss related to windfall tax deductions | 38,800,000 | ||||
Valuation allowance | 198,168,000 | 177,541,000 | 156,500,000 | 170,400,000 | |
Interest expense | 100,000 | 300,000 | (1,200,000) | ||
Penalty expense | 0 | 0 | |||
Interest expense related to income tax accruals | 1,500,000 | 1,400,000 | |||
Accrued tax penalties | 0 | 0 | 100,000 | ||
Unrecognized tax benefit | 14,100,000 | 15,000,000 | 13,700,000 | $ 19,100,000 | |
Income tax provision upon recognition of unrecognized tax benefit | (12,500,000) | ||||
Unrecognized tax benefits, increase in valuation allowance upon recognition | 4,500,000 | ||||
Unrecognized tax benefits, increase to additional paid-in capital upon recognition | 1,600,000 | ||||
Potential decrease in unrecognized tax benefits | 4,000,000 | ||||
Stock-based compensation | 50,182,000 | 50,889,000 | 48,787,000 | ||
Tax benefit recognition related to stock based compensation | 700,000 | 700,000 | 2,700,000 | ||
Increase (decrease) in income taxes payable | 3,536,000 | (19,134,000) | 15,211,000 | ||
Expected deferred tax expense | 11,000,000 | ||||
Undistributed Earnings of Foreign Subsidiaries | 1,915,000,000 | 613,000,000 | |||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 15,962,000 | 9,022,000 | |||
Domestic Country [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards | 159,700,000 | ||||
Valuation allowance | 166,500,000 | ||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 16,000,000 | ||||
Domestic Country [Member] | Research Tax Credit Carryforward [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Credit carryforwards | 18,500,000 | ||||
Foreign Country [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards | 117,700,000 | ||||
Valuation allowance | 31,700,000 | ||||
Credit carryforwards | 7,200,000 | ||||
Windfall Tax Benefit [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Increase (decrease) in income taxes payable | 0 | 10,400,000 | 300,000 | ||
Windfall tax deductions not yet recognized | 30,100,000 | ||||
Massachusetts Research And Development Member | Research Tax Credit Carryforward [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Credit carryforwards | 25,700,000 | ||||
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 | 38,700,000 | ||||
All Acquisitions [Member] | Domestic Country [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards | $ 81,000,000 | ||||
Axeda and ThingWorx [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Deferred tax assets, change in valuation allowance | $ (18,100,000) | ||||
Servigistics and Enigma [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Deferred tax assets, change in valuation allowance | (36,700,000) | ||||
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 ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (110,867) | $ 17,038 | $ 6,112 |
Foreign | 137,392 | 169,074 | 120,122 |
Income before income taxes | $ 26,525 | $ 186,112 | $ 126,234 |
Income Taxes (Schedule Of Provi
Income Taxes (Schedule Of Provision For (Benefit From) Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 3,907 | $ 12,792 | $ 7,081 |
State | 599 | 2,062 | 1,512 |
Foreign | 23,823 | 31,010 | 13,586 |
Current provision for income taxes | 28,329 | 45,864 | 22,179 |
Federal | (20,809) | (13,200) | (38,224) |
State | (566) | (2,085) | (4,718) |
Foreign | (27,986) | (4,661) | 3,228 |
Deferred provision for (benefit from) income taxes | (49,361) | (19,946) | (39,714) |
Total provision for income taxes | $ (21,032) | $ 25,918 | $ (17,535) |
Income Taxes (Summary Of Federa
Income Taxes (Summary Of Federal Income Tax Rate And Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Change in valuation allowance | 63.00% | (11.00%) | (32.00%) |
State income taxes, net of federal tax benefit | 7.00% | 1.00% | 1.00% |
Federal and state research and development credits | (8.00%) | 0.00% | (1.00%) |
Resolution of Uncertain Tax Position | (11.00%) | 0.00% | (1.00%) |
Foreign rate differences | (213.00%) | (19.00%) | (26.00%) |
Foreign withholding tax | 14.00% | 3.00% | 5.00% |
U.S. permanent items | 34.00% | 4.00% | 5.00% |
Other, net | 0.00% | 1.00% | 0.00% |
Effective income tax rate | (79.00%) | 14.00% | (14.00%) |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ||||
Net operating loss carryforwards | $ 71,533 | $ 57,677 | ||
Foreign tax credits | 15,962 | 9,022 | ||
Capitalized research and development expense | 31,690 | 41,720 | ||
Pension benefits | 11,009 | 39,063 | ||
Deferred revenue | 71,399 | 67,433 | ||
Stock-based compensation | 16,777 | 18,828 | ||
Other reserves not currently deductible | 21,940 | 24,273 | ||
Amortization of intangible assets | 62,227 | 9,302 | ||
Other tax credits | 37,270 | 30,982 | ||
Depreciation | 3,465 | 3,157 | ||
Capital loss carryforward | 8,040 | 7,964 | ||
Other | 10,116 | 7,118 | ||
Gross deferred tax assets | 361,428 | 316,539 | ||
Valuation allowance | (198,168) | (177,541) | $ (156,500) | $ (170,400) |
Total deferred tax assets | 163,260 | 138,998 | ||
Acquired intangible assets not deductible | (124,401) | (110,003) | ||
Pension prepayments | (395) | (20,263) | ||
Deferred revenue | (3,110) | (1,446) | ||
Other | (3,598) | (4,484) | ||
Deferred Tax Liabilities, Gross | 131,504 | 136,196 | ||
Net deferred tax assets | $ 31,756 | $ 2,802 |
Income Taxes (Summary Of Valuat
Income Taxes (Summary Of Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation allowance beginning of year | $ 177,541 | $ 156,500 | $ 170,400 | |
Net release of valuation allowance | [1] | (18,700) | (18,100) | (44,600) |
Net increase in deferred tax assets for foreign jurisdictions with a full valuation allowance | (1,900) | (5,200) | 1,900 | |
Establish valuation allowance for acquired businesses | 0 | 21,500 | 12,100 | |
Establish valuation allowance in foreign jurisdictions | 0 | 3,500 | 0 | |
Adjust deferred tax asset and valuation allowance | 41,300 | 19,300 | 16,700 | |
Valuation allowance end of year | $ 198,168 | $ 177,541 | $ 156,500 | |
[1] | In 2014 and 2013, this is attributable to recognition of deferred tax liabilities recorded in connection with accounting for acquisitions and in 2015 and 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 ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit beginning of year | $ 15 | $ 13.7 | $ 19.1 |
Tax positions related to current year: | |||
Additions | 1.3 | 2.2 | 1 |
Tax positions related to prior years: | |||
Additions | 0.8 | 0.3 | 1.8 |
Reductions | (3) | (0.1) | (6.3) |
Settlements | 0 | (0.6) | (0.7) |
Statute expirations | 0 | (0.5) | (1.2) |
Unrecognized tax benefit end of year | $ 14.1 | $ 15 | $ 13.7 |
Long Term Debt (Details)
Long Term Debt (Details) $ in Thousands | Nov. 04, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($)bank | Sep. 30, 2013USD ($) | Oct. 06, 2016 |
Debt Instrument [Line Items] | |||||
Credit facility, borrowings outstanding | $ 668,100 | ||||
term loan outstanding | $ (475,000) | 128,750 | $ 1,032,500 | $ 111,875 | |
Borrowings under credit facility | $ 185,000 | 1,386,250 | 0 | ||
Voting interest in foreign subsidiaries pledged against credit facility | 65.00% | ||||
Investment limit in foreign subsidiaries | $ 75,000 | ||||
Cash investment limit for acquisition of business | $ 150,000 | ||||
Maximum leverage ratio allowed under debt covenant | 3 | ||||
Minimum fixed charge coverage ratio allowed under debt covenant | 3.50 | ||||
Leverage ratio, actual | 2.45 | ||||
Fixed charge coverage ratio, actual | 6.54 | ||||
Credit facility, origination costs | 7,900 | ||||
Credit facility, periodic interest payment | $ 10,100 | $ 5,700 | $ 5,800 | ||
Credit facility, average interest rate during period | 1.70% | 1.60% | 1.70% | ||
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] | |||||
Number of banks in credit agreement | bank | 16 | ||||
Credit facility, current maximum amount | $ 500,000 | ||||
Credit facility, term loan, repayments of principal due in 2016 | 50,000 | ||||
Credit facility, term loan, repayments of principal due in 2017 | 50,000 | ||||
Credit facility, term loan, repayments of principal due in 2018 | 75,000 | ||||
Credit facility, term loan, repayments of principal due in 2019 | 300,000 | ||||
Credit facility, borrowings outstanding | 475,000 | ||||
Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, current maximum amount | 1,000,000 | ||||
Credit facility, borrowings outstanding | $ 193,100 | ||||
Credit facility, revolving loan, basis spread on federal funds effective rate | 0.005% | ||||
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 | 0.175% | ||||
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% | ||||
Revolving Loan, Reset December 17, 2015 | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, term loan, interest rate at period end | 1.875% | ||||
Revolving Loan, Reset December 17, 2015 | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowings outstanding | $ 43,100 | ||||
Revolving Loan, Reset November 20, 2015 | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, term loan, interest rate at period end | 1.875% | ||||
Revolving Loan, Reset November 20, 2015 | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowings outstanding | $ 50,000 | ||||
Revolving Loan, Reset October 6, 2015 | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, term loan, interest rate at period end | 1.75% | ||||
Revolving Loan, Reset October 6, 2015 | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowings outstanding | $ 100,000 | ||||
Subsequent Event [Member] | Revolving Loan, Reset January 6, 2016 | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, term loan, interest rate at period end | 1.875% |
Commitments And Contingencies66
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Jul. 04, 2015 | Jan. 01, 2011 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Commitments And Contingencies [Line Items] | ||||||
Lease expense, net of sublease income | $ 36.9 | $ 38.6 | $ 38.4 | |||
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 | $ 4 | $ 4 | 3.6 | |||
Bank guarantees outstanding collateralized | 1.1 | 1.1 | $ 0.9 | |||
China Matter [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Loss contingency accrual | $ 28.2 | 28.2 | ||||
Contingencies Disclosure [Text Block] | 14.6 | 13.6 | ||||
Pending or Threatened Litigation [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Loss contingency accrual | $ 30.5 | $ 30.5 |
Commitments And Contingencies67
Commitments And Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 35,829 |
2,017 | 26,582 |
2,018 | 21,705 |
2,019 | 18,242 |
2,020 | 15,033 |
Thereafter | 26,698 |
Total minimum lease payments | $ 144,089 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 03, 2015 | Aug. 14, 2014 | Aug. 04, 2014 | |
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Stock authorized to repurchase | $ 100,000 | $ 100,000 | $ 100,000 | $ 600,000 | |||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 125,000 | ||||||
Repurchases of common stock, shares | 2,728,000 | 5,068,000 | 3,053,000 | ||||
Stock repurchased in the period , including holdback | $ 224,915 | ||||||
Repurchases of common stock, value | $ 64,940 | $ 187,415 | $ 74,871 | ||||
Series A Junior Participating Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 500,000 | ||||||
Accelerated Share Repurchases, Date [Domain] | |||||||
Class of Stock [Line Items] | |||||||
Repurchases of common stock, shares | 2,300,000 | ||||||
Shares that would be deliverable upon settlement of accelerated share repurchase plan | 1,070,307 | ||||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Repurchases of common stock, shares | 2,728,000 | 5,068,000 | 3,053,000 | ||||
Repurchases of common stock, value | $ 27 | $ 51 | $ 31 | ||||
Additional Paid-in Capital [Member] | |||||||
Class of Stock [Line Items] | |||||||
Repurchases of common stock, value | $ 64,913 | 187,364 | $ 74,840 | ||||
Accelerated Share Repurchases, Date [Domain] | Accelerated Share Repurchases, Date [Domain] | |||||||
Class of Stock [Line Items] | |||||||
Repurchases of common stock, value | $ 37,500 |
Equity Incentive Plan (Narrativ
Equity Incentive Plan (Narrative) (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2005 | Sep. 30, 2015USD ($)shares / unitinstallment$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Sep. 30, 2013USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock issuable per restricted stock unit | shares / unit | 1 | |||
Total unrecognized compensation cost | $ | $ 62.5 | |||
Weighted average remaining recognition period, in months | 17 months | |||
Common stock were available for grant under the 2000 plan | 3,600,000 | |||
Common stock were reserved for issuance | 3,700,000 | |||
Shares retained by company to cover tax withholdings | 800,000 | 800,000 | 700,000 | |
Employee tax withholdings | $ | $ 29.2 | $ 26.9 | $ 15 | |
vesting period | 4 years | |||
Option expiration period | 10 years | |||
Options outstanding and exercisable (in shares) | 3,000 | |||
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 Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 1,910,000 | |||
Maximum percentage of target RSUs to vest (percent) | 100.00% | |||
Weighted average fair value per share | $ / shares | $ 38.19 | |||
Restricted Shares and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value per share | $ / shares | $ 38.19 | $ 33.88 | $ 22.87 | |
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% | |||
Time-based Award [Member] | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 1,597,000 | |||
TSR Units | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
vesting period | 3 years | |||
Performance Based [Member] | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value per share | $ / shares | $ 41.32 | |||
Performance Based [Member] | Maximum [Member] | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 590,000 | |||
Share-based Compensation Award, Tranche One | Restricted Stock Units (RSUs) | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target multiplier (up to) | 2 | |||
Share-based Compensation Award, Tranche Two | Restricted Stock Units (RSUs) | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target multiplier (up to) | 1.5 | |||
Vest in one installment [Member] [Domain] | Time-based Award [Member] | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 212,000 | |||
vesting period | 1 year | |||
Vest in 3 Equal Installments on November 15, 2015, November 15, 2016 and November 15, 2017 [Member] [Member] | Time Based Member | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Equal Annual Installments | installment | 3 |
Equity Incentive Plan (Total St
Equity Incentive Plan (Total Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 50,182 | $ 50,889 | $ 48,787 |
Cost Of License Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 521 | 314 | 21 |
Cost Of Service Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 5,871 | 6,351 | 6,134 |
Cost of Support Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 3,775 | 3,745 | 3,324 |
Sales And Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 12,223 | 10,982 | 11,326 |
Research And Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 11,623 | 10,119 | 8,590 |
General And Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 16,169 | $ 19,378 | $ 19,392 |
Equity Incentive Plan (Restrict
Equity Incentive Plan (Restricted Stock Activity) (Details) - Restricted Stock Units (RSUs) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Shares | |
Balance of outstanding restricted stock units, beginning, Shares | shares | 4,379 |
Shares granted | shares | 1,910 |
Vested, Shares | shares | (2,206) |
Forfeited or not earned, Shares | shares | (429) |
Balance of outstanding restricted stock units, ending, Shares | shares | 3,654 |
Weighted Average Grant Date Fair Value (Per Share) | |
Balance of outstanding restricted stock units, beginning (in USD per share) | $ 26.87 |
Weighted average fair value per share | 38.19 |
Vested (in USD per share) | 24.67 |
Forfeited or not earned (in USD per share) | 30.94 |
Balance of outstanding restricted stock units, ending (in USD per share) | $ 33.64 |
Intrinsic value [Abstract] | |
Aggregate Intrinsic Value, Ending Balance of outstanding restricted stock | $ | $ 115,987 |
Equity Incentive Plan (Restri72
Equity Incentive Plan (Restricted Stock And Restricted Stock Unit Grants) (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Sep. 30, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted | 1,910 |
Performance-based Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted | 313 |
Time-based Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted | 1,597 |
Equity Incentive Plan (Schedule
Equity Incentive Plan (Schedule of Restricted Stock Unit Activity) (Details) | 12 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 29.80% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.85% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Equity Incentive Plan (Value Of
Equity Incentive Plan (Value Of Stock Option And Stock-Based Award Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Total intrinsic value of stock options exercised | $ 182 | $ 2,040 | $ 6,525 |
Total fair value of restricted stock and restricted stock unit awards vested | $ 84,189 | $ 79,660 | $ 48,083 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - Savings Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
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 | $ 5.3 | $ 5.1 | $ 5 |
Pension Plans (Narrative) (Deta
Pension Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual return on plan assets gain (loss) | $ 1,878 | $ 15,914 | $ 13,610 | |
Pension settlement loss | 66,332 | 0 | 0 | |
Defined Benefit Plan, Contributions by Employer | $ 46,700 | $ 12,905 | $ 9,969 | |
Frozen Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 0.00% | |||
U.S. Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | [1] | 0.00% | 0.00% | 0.00% |
Net periodic pension cost | $ 72,136 | $ 523 | $ 2,013 | |
Pension settlement loss | 66,332 | 0 | $ 0 | |
Defined Benefit Plan, Contributions by Employer | $ 25,475 | $ 10,552 | ||
International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | [1] | 3.00% | 3.00% | 3.00% |
Long-term rate of return | 5.73% | |||
Net periodic pension cost | $ 1,740 | $ 2,771 | $ 3,517 | |
Pension settlement loss | 0 | 0 | $ 0 | |
Defined Benefit Plan, Contributions by Employer | $ 21,225 | $ 2,353 | ||
Cocreate Member | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current asset allocation target for equity securities | 60.00% | |||
Current asset allocation target for fixed income securities | 40.00% | |||
Other International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current asset allocation target for fixed income securities | 100.00% | |||
Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plans, vesting period | 1 year | |||
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plans, vesting period | 5 years | |||
Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial loss expected to be recognized in the following year | $ 2,314 | |||
Scenario, Forecast [Member] | Subsequent Year, Estimated Cost [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension cost | 1,896 | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 769 | |||
[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, 2015 and 2014. |
Pension Plans (Accounting For T
Pension Plans (Accounting For The Pension Plans) (Details) | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
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 | 0.00% | 3.80% | 4.90% | |
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Rate of increase in future compensation | [1] | 0.00% | 0.00% | 0.00% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Discount rate | 3.80% | 4.90% | 4.00% | |
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 | 1.35% | 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 | 2.22% | 2.38% | 3.28% | |
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Rate of increase in future compensation | [1] | 3.00% | 3.00% | 3.00% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Discount rate | 2.38% | 3.28% | 3.38% | |
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 | 5.75% | 5.70% | 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 September 30, 2015 and 2014. |
Pension Plans (Components Of Ne
Pension Plans (Components Of Net Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost of projected benefit obligation | $ 6,419 | $ 7,903 | |
Service cost | 1,466 | 1,659 | |
Settlement loss | 66,332 | 0 | $ 0 |
U.S. Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost of projected benefit obligation | 4,591 | 5,461 | 4,989 |
Service cost | 0 | 0 | 0 |
Expected return on plan assets | (1,364) | (7,151) | (6,128) |
Amortization of prior service cost | 0 | 0 | 0 |
Recognized actuarial loss (gain) | 2,577 | 2,213 | 3,152 |
Settlement loss | 66,332 | 0 | 0 |
Net periodic pension cost | 72,136 | 523 | 2,013 |
International Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost of projected benefit obligation | 1,828 | 2,442 | 2,384 |
Service cost | 1,466 | 1,659 | 2,017 |
Expected return on plan assets | (3,364) | (2,506) | (2,126) |
Amortization of prior service cost | (4) | (5) | (6) |
Recognized actuarial loss (gain) | 1,815 | 1,181 | 1,248 |
Settlement loss | 0 | 0 | 0 |
Net periodic pension cost | $ 1,740 | $ 2,771 | $ 3,517 |
Pension Plans (Change In Benefi
Pension Plans (Change In Benefit Obligation And Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation—beginning of year | $ 218,559 | $ 188,334 | |
Service cost | 1,466 | 1,659 | |
Interest cost | 6,419 | 7,903 | |
Actuarial loss | 3,594 | 33,295 | |
Foreign exchange impact | (9,515) | (6,480) | |
Participant contributions | 198 | 325 | |
Benefits paid | (7,183) | (6,477) | |
Settlements | (135,350) | 0 | |
Projected benefit obligation—end of year | 78,188 | 218,559 | $ 188,334 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at fair value-beginning of year | 157,350 | 138,193 | |
Actual return on plan assets | 1,878 | 15,914 | |
Employer contributions | 46,700 | 12,905 | 9,969 |
Participant contributions | 198 | 325 | |
Foreign exchange impact | (5,632) | (3,510) | |
Settlements | (135,350) | 0 | |
Benefits paid | (7,183) | (6,477) | |
Plan assets at fair value-end of year | 57,961 | 157,350 | 138,193 |
Underfunded status | (20,227) | (61,209) | |
Accumulated benefit obligation-end of year | 74,928 | 214,817 | |
Non-current liability | (20,227) | (39,615) | |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | (21,594) | |
Unrecognized actuarial loss | (28,339) | (95,925) | (74,357) |
U.S. Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation—beginning of year | 134,453 | 113,378 | |
Service cost | 0 | 0 | 0 |
Interest cost | 4,591 | 5,461 | 4,989 |
Actuarial loss | 1,606 | 20,563 | |
Foreign exchange impact | 0 | 0 | |
Participant contributions | 0 | 0 | |
Benefits paid | (5,300) | (4,949) | |
Settlements | (135,350) | 0 | |
Projected benefit obligation—end of year | 0 | 134,453 | 113,378 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at fair value-beginning of year | 112,859 | 94,831 | |
Actual return on plan assets | 2,316 | 12,425 | |
Employer contributions | 25,475 | 10,552 | |
Participant contributions | 0 | 0 | |
Foreign exchange impact | 0 | 0 | |
Settlements | (135,350) | 0 | |
Benefits paid | (5,300) | (4,949) | |
Plan assets at fair value-end of year | 0 | 112,859 | 94,831 |
Underfunded status | 0 | (21,594) | |
Accumulated benefit obligation-end of year | 0 | 134,453 | |
Non-current liability | 0 | 0 | |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | (21,594) | |
Unrecognized actuarial loss | 0 | (68,256) | (55,180) |
International Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation—beginning of year | 84,106 | 74,956 | |
Service cost | 1,466 | 1,659 | 2,017 |
Interest cost | 1,828 | 2,442 | 2,384 |
Actuarial loss | 1,988 | 12,732 | |
Foreign exchange impact | (9,515) | (6,480) | |
Participant contributions | 198 | 325 | |
Benefits paid | (1,883) | (1,528) | |
Settlements | 0 | 0 | |
Projected benefit obligation—end of year | 78,188 | 84,106 | 74,956 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at fair value-beginning of year | 44,491 | 43,362 | |
Actual return on plan assets | (438) | 3,489 | |
Employer contributions | 21,225 | 2,353 | |
Participant contributions | 198 | 325 | |
Foreign exchange impact | (5,632) | (3,510) | |
Settlements | 0 | 0 | |
Benefits paid | (1,883) | (1,528) | |
Plan assets at fair value-end of year | 57,961 | 44,491 | 43,362 |
Underfunded status | (20,227) | (39,615) | |
Accumulated benefit obligation-end of year | 74,928 | 80,364 | |
Non-current liability | (20,227) | (39,615) | |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | 0 | |
Unrecognized actuarial loss | $ 28,339 | $ (27,669) | $ (19,177) |
Pension Plans (Change in Accumu
Pension Plans (Change in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Accumulated other comprehensive loss- beginning of year | $ 95,925 | $ 74,357 |
Recognized during year - net actuarial (losses) | (4,388) | (3,389) |
Occurring during year - settlement loss | (66,332) | 0 |
Occurring during year - net actuarial losses | 6,445 | 27,038 |
Foreign exchange impact | (3,311) | (2,081) |
Accumulated other comprehensive loss- end of year | 28,339 | 95,925 |
U.S. Plan [Member] | ||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Accumulated other comprehensive loss- beginning of year | 68,256 | 55,180 |
Recognized during year - net actuarial (losses) | (2,577) | (2,213) |
Occurring during year - settlement loss | (66,332) | 0 |
Occurring during year - net actuarial losses | 653 | 15,289 |
Foreign exchange impact | 0 | 0 |
Accumulated other comprehensive loss- end of year | 0 | 68,256 |
International Plans [Member] | ||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Accumulated other comprehensive loss- beginning of year | 27,669 | 19,177 |
Recognized during year - net actuarial (losses) | (1,811) | (1,176) |
Occurring during year - settlement loss | 0 | 0 |
Occurring during year - net actuarial losses | 5,792 | 11,749 |
Foreign exchange impact | (3,311) | (2,081) |
Accumulated other comprehensive loss- end of year | $ (28,339) | $ 27,669 |
Pension Plans (Percentage Of To
Pension Plans (Percentage Of Total Plan Assets) (Details) | Sep. 30, 2015 | Sep. 30, 2014 |
U.S. Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 0.00% | 100.00% |
International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 100.00% | 100.00% |
Equity Securities [Member] | U.S. Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 0.00% | 0.00% |
Equity Securities [Member] | International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 53.00% | 51.00% |
Fixed Income Securities [Member] | U.S. Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 0.00% | 100.00% |
Fixed Income Securities [Member] | International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 32.00% | 28.00% |
Insurance Company [Member] | U.S. Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 0.00% | 0.00% |
Insurance Company [Member] | International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 13.00% | 19.00% |
Cash [Member] | U.S. Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 0.00% | 0.00% |
Cash [Member] | International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 2.00% | 2.00% |
Pension Plans (Expected Future
Pension Plans (Expected Future Benefit Payments) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 1,714 |
2,017 | 1,810 |
2,018 | 2,204 |
2,019 | 2,624 |
2,020 | 2,906 |
2021 to 2025 | 19,827 |
U.S. Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2021 to 2025 | 0 |
International Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 1,714 |
2,017 | 1,810 |
2,018 | 2,204 |
2,019 | 2,624 |
2,020 | 2,906 |
2021 to 2025 | $ 19,827 |
Pension Plans (Fair Value Of Pl
Pension Plans (Fair Value Of Plan Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | $ 57,961 | $ 157,350 | $ 138,193 | |
International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 57,961 | |||
Government [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 11,086 | |||
Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 7,487 | |||
Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 30,887 | |||
Insurance Company Funds [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | [1] | 7,668 | ||
Cash [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 833 | |||
Level 1 [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 50,293 | |||
Level 1 [Member] | Government [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 11,086 | |||
Level 1 [Member] | Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 7,487 | |||
Level 1 [Member] | Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 30,887 | |||
Level 1 [Member] | Insurance Company Funds [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | [1] | 0 | ||
Level 1 [Member] | Cash [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 833 | |||
Level 2 [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 7,668 | |||
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 | [1] | 7,668 | ||
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] | International Plan Assets [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 | [1] | 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 ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Revenue | $ 1,255,242 | $ 1,356,967 | $ 1,293,541 | ||
Operating income | 41,616 | 196,576 | 127,324 | ||
Sales and marketing expenses | (355,070) | (371,392) | [1] | (378,771) | [1] |
General and administrative expenses | (238,188) | (144,003) | [1] | (136,999) | [1] |
Other income (expense), net | (15,091) | (10,464) | (1,090) | ||
Income before income taxes | 26,525 | 186,112 | 126,234 | ||
Restructuring charges | 43,409 | 28,406 | 52,197 | ||
Depreciation and amortization | 84,433 | 77,307 | 76,551 | ||
Software Products [Member] | |||||
Revenue | 973,312 | 1,032,230 | 977,523 | ||
Operating income | 591,845 | 663,593 | [1] | 605,963 | [1] |
Restructuring charges | 11,600 | 2,800 | 17,700 | ||
Depreciation and amortization | 60,700 | 55,000 | 52,600 | ||
Services [Member] | |||||
Revenue | 281,930 | 324,737 | 316,018 | ||
Operating income | 43,029 | 48,378 | [1],[2] | 37,131 | [1],[2] |
Restructuring charges | 10,400 | 9,800 | 11,300 | ||
Depreciation and amortization | 8,100 | 7,400 | 6,100 | ||
General And Administrative [Member] | |||||
Restructuring charges | 5,100 | 1,800 | 5,100 | ||
Sales And Marketing [Member] | |||||
Restructuring charges | $ 16,300 | $ 13,900 | $ 18,100 | ||
[1] | We recorded restructuring charges of $43.4 million in 2015. Software Products included $11.6 million; Services included $10.4 million; sales and marketing expenses included $16.3 million; and general and administrative expenses included $5.1 million of the restructuring charges recorded in 2015.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. | ||||
[2] | The Software Products segment operating income includes depreciation and amortization of $60.7 million, $55.0 million, and $52.6 million in 2015, 2014, and 2013, respectively. The Services segment operating income includes depreciation and amortization of $8.1 million, $7.4 million, and $6.1 million in 2015, 2014, and 2013, respectively.We report revenue by the following four product areas: •CAD: PTC Creo® and PTC Mathcad®. •ePLM: PLM solutions (primarily PTC Windchill®) and ALM solutions (primarily PTC Integrity™) and Atego®.•SLM: PTC Arbortext® and PTC Servigistics®. |
Segment Information (Revenue By
Segment Information (Revenue By Product Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue | $ 1,255,242 | $ 1,356,967 | $ 1,293,541 |
CAD [Member] | |||
Revenue | 511,582 | 581,508 | 552,442 |
Extended PLM [Member] | |||
Revenue | 524,741 | 599,312 | 571,058 |
SLM [Member] | |||
Revenue | 166,060 | 170,980 | 170,041 |
IoT Segment [Member] | |||
Revenue | $ 52,859 | $ 5,167 | $ 0 |
Segment Information (Revenue 86
Segment Information (Revenue By Geographic Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Revenue | $ 1,255,242 | $ 1,356,967 | $ 1,293,541 | |||
Total long-lived intangible assets | 65,162 | 67,783 | 64,652 | |||
Americas [Member] | ||||||
Revenue | 530,311 | 558,671 | [1] | 522,788 | [1] | |
Total long-lived intangible assets | [2] | 47,509 | 51,027 | 49,788 | ||
Europe [Member] | ||||||
Revenue | 467,805 | 528,090 | [3] | 479,877 | [3] | |
Total long-lived intangible assets | 7,424 | 7,020 | 5,557 | |||
Pacific Rim [Member] | ||||||
Revenue | 139,165 | 148,151 | 161,587 | |||
Japan [Member] | ||||||
Revenue | 117,961 | 122,055 | 129,289 | |||
Asia Pacific Member | ||||||
Total long-lived intangible assets | 10,229 | 9,736 | 9,307 | |||
United States [Member] | ||||||
Revenue | 500,600 | 518,700 | 485,200 | |||
Germany [Member] | ||||||
Revenue | $ 177,100 | $ 200,300 | $ 167,200 | |||
[1] | Includes revenue in the United States totaling $500.6 million, $518.7 million and $485.2 million for 2015, 2014 and 2013, respectively. | |||||
[2] | Substantially all of the Americas long-lived tangible assets are located in the United States. | |||||
[3] | Includes revenue in Germany totaling $177.1 million, $200.3 million and $167.2 million for 2015, 2014 and 2013, respectively. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015USD ($)segmentsproduct_area | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Restructuring charges | $ 43,409 | $ 28,406 | $ 52,197 |
Number of operating and reportable segments | segments | 2 | ||
Number of product areas | product_area | 4 | ||
Software Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | $ 11,600 | 2,800 | 17,700 |
Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | 10,400 | 9,800 | 11,300 |
General And Administrative [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | 5,100 | 1,800 | 5,100 |
Selling and Marketing Expense [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | $ 16,300 | $ 13,900 | $ 18,100 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) | Nov. 04, 2015USD ($)bank | Nov. 03, 2015USD ($)employee | Oct. 23, 2015USD ($) | Nov. 30, 2015installmentshares | Jul. 31, 2005 | Jan. 02, 2016USD ($) | Jul. 02, 2016USD ($) | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($)bank | Sep. 30, 2013USD ($) |
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||
Additional borrowing capacity on credit facility if agreed to by lenders | $ 500,000,000 | |||||||||
term loan repayment | $ (475,000,000) | $ 128,750,000 | $ 1,032,500,000 | $ 111,875,000 | ||||||
Maximum leverage ratio allowed under debt covenant | 3 | |||||||||
Debt Covenant, Fixed Charge Coverage Ratio, Minimum | 3.50 | |||||||||
Payments for Restructuring | $ 53,588,000 | $ 20,575,000 | $ 37,199,000 | |||||||
Credit facility, borrowings outstanding | $ 668,100,000 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 1,910,000 | |||||||||
Subsequent Event [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
TSR Units | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
TSR Units | Subsequent Event [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of Equal Annual Installments | installment | 3 | |||||||||
Performance Based [Member] | Subsequent Event [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of Equal Annual Installments | installment | 3 | |||||||||
Performance-based Award [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 313,000 | |||||||||
Time-based Award [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 1,597,000 | |||||||||
Maximum [Member] | Performance Based [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 590,000 | |||||||||
Maximum [Member] | Performance Based [Member] | Subsequent Event [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 570,000 | |||||||||
Executive Officer | Maximum [Member] | Performance Based [Member] | Subsequent Event [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 302,000 | |||||||||
Line of Credit [Member] | Credit Facility 2015 [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of banks in credit agreement | bank | 16 | |||||||||
Line of Credit [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Credit facility, current maximum amount | $ 1,000,000,000 | |||||||||
Credit facility, borrowings outstanding | 193,100,000 | |||||||||
Line of Credit [Member] | Revolving Loan, Reset Period Five [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Credit facility, borrowings outstanding | $ 50,000,000 | |||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Credit Facility 2015 [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Credit facility, current maximum amount | $ 1,000,000,000 | |||||||||
Unsecured indebtedness threshold | $ 200,000,000 | |||||||||
Leverage ratio on or prior to July 2, 2016 | 3.50 | |||||||||
Leverage ratio on or after September 30, 2016 | 3.25 | |||||||||
Leverage ratio on or after the Covenant Modification Trigger Event | 4 | |||||||||
Secured Debt [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of banks in credit agreement | bank | 16 | |||||||||
Credit facility, current maximum amount | 500,000,000 | |||||||||
Credit facility, borrowings outstanding | $ 475,000,000 | |||||||||
Secured Debt [Member] | Line of Credit [Member] | Credit Facility 2015 [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt Instrument, Covenant Compliance, Senior Debt Leverage Ratio | 3 | |||||||||
Vuforia Acquisition [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Payments to acquire business | $ 65,000,000 | |||||||||
Number of employees | employee | 80 | |||||||||
One-time Termination Benefits [Member] | Minimum [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Expected restructuring costs | $ 40,000,000 | |||||||||
One-time Termination Benefits [Member] | Maximum [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Expected restructuring costs | 50,000,000 | |||||||||
Share-based Compensation Award, Tranche One | Executive Officer | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Target multiplier (up to) | 2 | |||||||||
Share-based Compensation Award, Tranche One | Executive Officer | Subsequent Event [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Target multiplier (up to) | 1 | |||||||||
Share-based Compensation Award, Tranche Two | Executive Officer | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Target multiplier (up to) | 1.5 | |||||||||
Share-based Compensation Award, Tranche Two | Executive Officer | Subsequent Event [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Target multiplier (up to) | 2 | |||||||||
Scenario, Forecast [Member] | Restricted Stock Units (RSUs) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Expected compensation cost | $ 10,000,000 | |||||||||
Scenario, Forecast [Member] | One-time Termination Benefits [Member] | Minimum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Payments for Restructuring | $ 40,000,000 | |||||||||
Scenario, Forecast [Member] | One-time Termination Benefits [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Payments for Restructuring | $ 50,000,000 | |||||||||
Reduced Employee Expenses | One-time Termination Benefits [Member] | Minimum [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Expected annualized effect of expense reductions | $ 17,000,000 | |||||||||
Domestic [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Voting interest in subsidiaries, pledged against credit facility (percent) | 100.00% | |||||||||
Foreign Subsidiary [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Voting interest in subsidiaries, pledged against credit facility (percent) | 65.00% |
Subsequent Events (Schedule Of
Subsequent Events (Schedule Of Restricted Units Granted) (Details) - Subsequent Event [Member] - Restricted Stock Units (RSUs) shares in Thousands, $ in Thousands | 1 Months Ended |
Nov. 30, 2015USD ($)shares | |
TSR Units | |
Subsequent Event [Line Items] | |
Intrinsic Value | $ 13,382 |
Performance-based Award [Member] | |
Subsequent Event [Line Items] | |
Intrinsic Value | $ 10,928 |
Time-based Award [Member] | |
Subsequent Event [Line Items] | |
Number Granted | shares | 839 |
Intrinsic Value | $ 30,326 |
Maximum [Member] | TSR Units | |
Subsequent Event [Line Items] | |
Number Granted | shares | 570 |
Maximum [Member] | Performance-based Award [Member] | |
Subsequent Event [Line Items] | |
Number Granted | shares | 302 |