Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Nov. 14, 2022 | Mar. 31, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | PTC Inc. | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Sep. 30, 2022 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Tax Identification Number | 04-2866152 | ||
Title of 12(b) Security | Common Stock, $.01 par value per share | ||
Trading Symbol | PTC | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 0-18059 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000857005 | ||
Entity Filer Category | Large Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Entity Small Business | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Address, Address Line One | 121 Seaport Boulevard | ||
Entity Address, City or Town | Boston | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02210 | ||
City Area Code | 781 | ||
Local Phone Number | 370-5000 | ||
Entity Public Float | $ 11,336,087,091 | ||
Entity Common Stock, Shares Outstanding | 117,471,969 | ||
Entity Emerging Growth Company | false | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement in connection with the 2023 Annual Meeting of Stockholders (2023 Proxy Statement) are incorporated by reference into Part III. | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 272,182 | $ 326,532 |
Accounts receivable, net of allowance for doubtful accounts of $362 and $304 at September 30, 2022 and September 30, 2021, respectively | 636,556 | 541,072 |
Prepaid expenses | 88,854 | 69,991 |
Other current assets | 71,065 | 135,415 |
Total current assets | 1,068,657 | 1,073,010 |
Property and equipment, net | 98,101 | 100,237 |
Goodwill | 2,353,654 | 2,191,887 |
Acquired intangible assets, net | 382,718 | 378,967 |
Deferred tax assets | 256,091 | 297,789 |
Operating right-of-use lease assets | 137,780 | 152,337 |
Other assets | 390,267 | 313,333 |
Total assets | 4,687,268 | 4,507,560 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 40,153 | 33,381 |
Accrued expenses and other current liabilities | 117,158 | 113,067 |
Accrued compensation and benefits | 104,022 | 117,784 |
Accrued income taxes | 5,142 | 5,055 |
Deferred revenue | 503,781 | 482,131 |
Short-term lease obligations | 22,002 | 27,864 |
Total current liabilities | 792,258 | 779,282 |
Long-term debt | 1,350,628 | 1,439,471 |
Deferred tax liabilities | 28,396 | 4,165 |
Deferred revenue | 16,552 | 15,546 |
Long-term lease obligations | 167,573 | 180,935 |
Other liabilities | 35,827 | 49,693 |
Total liabilities | 2,391,234 | 2,469,092 |
Commitments and contingencies (Note 10) | ||
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; 117,472 and 117,163 shares issued and outstanding at September 30, 2022 and September 30, 2021, respectively | 1,175 | 1,172 |
Additional paid-in capital | 1,720,580 | 1,718,504 |
Retained earnings | 727,737 | 414,656 |
Accumulated other comprehensive loss | (153,458) | (95,864) |
Total stockholders’ equity | 2,296,034 | 2,038,468 |
Total liabilities and stockholders’ equity | $ 4,687,268 | $ 4,507,560 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Current assets: | ||
Allowance for doubtful accounts | $ 362 | $ 304 |
Stockholders’ equity: | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 117,472,000 | 117,163,000 |
Common stock, shares outstanding | 117,472,000 | 117,163,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | |||
Total revenue | $ 1,933,347 | $ 1,807,159 | $ 1,458,415 |
Cost of revenue: | |||
Total cost of revenue | 385,980 | 371,102 | 334,271 |
Gross margin | 1,547,367 | 1,436,057 | 1,124,144 |
Operating expenses: | |||
Sales and marketing | 485,247 | 517,779 | 435,451 |
Research and development | 338,822 | 299,917 | 256,575 |
General and administrative | 204,732 | 206,006 | 159,826 |
Amortization of acquired intangible assets | 34,970 | 29,396 | 28,713 |
Restructuring and other charges, net | 36,234 | 2,211 | 32,716 |
Total operating expenses | 1,100,005 | 1,055,309 | 913,281 |
Operating income | 447,362 | 380,748 | 210,863 |
Interest and debt premium expense | (54,268) | (50,478) | (76,428) |
Other income, net | 4,004 | 61,485 | 271 |
Income before income taxes | 397,098 | 391,755 | 134,706 |
Provision (benefit) for income taxes | 84,017 | (85,168) | 4,011 |
Net income (loss) | $ 313,081 | $ 476,923 | $ 130,695 |
Earnings (loss) per share—Basic | $ 2.67 | $ 4.08 | $ 1.13 |
Earnings (loss) per share—Diluted | $ 2.65 | $ 4.03 | $ 1.12 |
Weighted-average shares outstanding—Basic | 117,194 | 116,836 | 115,663 |
Weighted-average shares outstanding—Diluted | 118,233 | 118,367 | 116,267 |
License | |||
Revenue: | |||
License Revenue | $ 782,680 | $ 738,053 | $ 509,792 |
Cost of revenue: | |||
Cost Of License Revenue | 49,240 | 61,750 | 53,195 |
Support and cloud services | |||
Revenue: | |||
Support and cloud services | 987,573 | 911,288 | 804,825 |
Cost of revenue: | |||
Cost Of support and cloud services revenue | 184,789 | 164,108 | 145,386 |
Software | |||
Revenue: | |||
Total software revenue | 1,770,253 | 1,649,341 | 1,314,617 |
Cost of revenue: | |||
Total cost of software revenue | 234,029 | 225,858 | 198,581 |
Professional services | |||
Revenue: | |||
Professional services | 163,094 | 157,818 | 143,798 |
Cost of revenue: | |||
Cost of professional services revenue | $ 151,951 | $ 145,244 | $ 135,690 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 313,081 | $ 476,923 | $ 130,695 |
Other comprehensive income (loss), net of tax: | |||
Hedge gain (loss) arising during the period, net of tax of $5.8 million, $0.4 million, and $1.7 million in 2022, 2021, and 2020, respectively | 17,556 | 1,248 | (13,242) |
Foreign currency translation adjustment, net of tax of $0 for each period | (92,768) | 1,613 | 22,076 |
Unrealized gain (loss) on marketable securities, net of tax of $0 for each period | 0 | (307) | 188 |
Amortization of net actuarial pension gain included in net income, net of tax of $0.4 million, $1.2 million, and $0.9 million in 2022, 2021, and 2020, respectively | 1,010 | 2,930 | 2,983 |
Pension net gain (loss) arising during the period net of tax of $6.1 million, $0.7 million, and $0.7 million in 2022, 2021, and 2020, respectively | 15,027 | 1,891 | (2,791) |
Change in unamortized pension gain (loss) related to changes in foreign currency, net of tax of $0.6 million, $0.0 million, and $0.7 million in 2022, 2021, and 2020, respectively | 1,581 | 135 | (1,878) |
Other comprehensive income (loss) | (57,594) | 7,510 | 7,336 |
Comprehensive income | $ 255,487 | $ 484,433 | $ 138,031 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Hedge gain (loss) arising during the period, tax | $ (5,800) | $ 400 | $ 1,700 |
Foreign currency translation adjustment, tax | 0 | 0 | 0 |
Unrealized gain (loss) on marketable securities, tax | 0 | 0 | 0 |
Amortization of net actuarial pension gain included in net income, tax | 400 | 1,200 | 900 |
Tax provision (benefit) related to pension net gain (loss) occurring during the year | 6,100 | 700 | 700 |
Change in unamortized pension gain (loss) related to changes in foreign currency, tax | $ 600 | $ 0 | $ 700 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 313,081 | $ 476,923 | $ 130,695 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 87,694 | 85,239 | 80,817 |
Amortization of right-of-use lease assets | 34,346 | 37,295 | 38,687 |
Stock-based compensation | 174,863 | 177,289 | 115,149 |
Loss (gain) on investment | 31,854 | (68,829) | 0 |
Gain on divestiture of business | (29,808) | 0 | 0 |
Other non-cash items, net | (4,560) | (1,381) | (3,167) |
Provision (benefit) from deferred income taxes | 42,963 | (158,105) | (24,641) |
Accounts receivable | (165,006) | (119,418) | (32,365) |
Accounts payable and accrued expenses | 6,957 | 25,096 | (5,135) |
Accrued compensation and benefits | (6,645) | 16,775 | 10,282 |
Deferred revenue | 57,586 | 58,702 | 17,046 |
Income taxes | (15,329) | 13,979 | (26,616) |
Other current assets and prepaid expenses | (40,643) | (14,206) | 36,189 |
Operating lease liabilities | (13,610) | (7,129) | (11,110) |
Other noncurrent assets and liabilities | (38,417) | (153,421) | (92,023) |
Net cash provided by operating activities | 435,326 | 368,809 | 233,808 |
Cash flows from investing activities: | |||
Additions to property and equipment | (19,496) | (24,713) | (20,196) |
Purchases of short- and long-term marketable securities | 0 | (7,562) | (33,869) |
Proceeds from sales of short- and long-term marketable securities | 0 | 56,170 | 1,521 |
Proceeds from maturities of short- and long-term marketable securities | 0 | 9,861 | 30,521 |
Acquisitions of businesses, net of cash acquired | (282,943) | (718,030) | (483,478) |
Proceeds from sales of investments | 46,906 | 0 | 0 |
Purchases of investments | 0 | (4,000) | 0 |
Purchase of intangible assets | (6,451) | (550) | (11,050) |
Settlement of net investment hedges | 24,857 | 965 | (9,421) |
Divestiture of business, net | 32,518 | 0 | 0 |
Other investing activities | 3,408 | 0 | 0 |
Net cash used in investing activities | (201,201) | (687,859) | (525,972) |
Cash flows from financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | 0 | 1,000,000 |
Borrowings under credit facility | 264,000 | 600,000 | 455,000 |
Repayments of Senior Notes | 0 | 0 | (500,000) |
Repayments of borrowings under credit facility | (355,000) | (168,000) | (610,125) |
Repurchases of common stock | (125,000) | (30,000) | 0 |
Proceeds from issuance of common stock | 21,207 | 21,575 | 18,382 |
Debt issuance costs | 0 | 0 | (17,107) |
Debt early redemption premium | 0 | 0 | (15,000) |
Payments of withholding taxes in connection with stock-based awards | (68,991) | (52,957) | (33,740) |
Payments of principal for financing leases | (297) | (354) | 0 |
Net cash (used in) provided by financing activities | (264,081) | 370,264 | 297,410 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (24,203) | (127) | 25 |
Net change in cash, cash equivalents, and restricted cash | (54,159) | 51,087 | 5,271 |
Cash, cash equivalents, and restricted cash, beginning of period | 327,047 | 275,960 | 270,689 |
Cash, cash equivalents, and restricted cash, end of period | 272,888 | 327,047 | 275,960 |
Supplemental disclosure of non-cash financing activities: | |||
Withholding taxes in connection with stock-based awards, accrued | $ 0 | $ 120 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Previously Reported | Net Investment Hedging | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Previously Reported | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Net Investment Hedging |
Beginning balance at Sep. 30, 2019 | $ 1,201,998 | $ 1,149 | $ 1,502,949 | $ (191,390) | $ (110,710) | ||||
Beginning balance (Accounting Standards Update 2016-02) at Sep. 30, 2019 | $ (1,572) | $ (1,572) | |||||||
Beginning balance (in shares) at Sep. 30, 2019 | 114,899,000 | ||||||||
Common stock issued for employee stock-based awards | $ 14 | (14) | |||||||
Common stock issued for employee stock-based awards (in shares) | 1,392,000 | ||||||||
Shares surrendered by employees to pay taxes related to stock-based awards | (33,740) | $ (4) | (33,736) | ||||||
Shares surrendered by employees to pay taxes related to stock-based awards (in shares) | (455,000) | ||||||||
Common stock issued for employee stock purchase plan | 18,382 | $ 2 | 18,380 | ||||||
Common stock issued for employee stock purchase plan (in shares) | 289,000 | ||||||||
Compensation expense from stock-based awards | 115,149 | 115,149 | |||||||
Net income | $ 130,695 | 130,695 | |||||||
Unrealized gain (loss) on net investment hedges, net of tax | $ (13,242) | $ (13,242) | |||||||
Repurchases of common stock (in shares) | 0 | ||||||||
Foreign currency translation adjustment | $ 22,076 | 22,076 | |||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 188 | 188 | |||||||
Change in pension benefits, net of tax | (1,686) | (1,686) | |||||||
Ending balance at Sep. 30, 2020 | 1,438,248 | $ 1,161 | 1,602,728 | (62,267) | (103,374) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 116,125,000 | ||||||||
Common stock issued for employee stock-based awards | $ 15 | (15) | |||||||
Common stock issued for employee stock-based awards (in shares) | 1,490,000 | ||||||||
Shares surrendered by employees to pay taxes related to stock-based awards | (53,077) | $ (4) | (53,073) | ||||||
Shares surrendered by employees to pay taxes related to stock-based awards (in shares) | (466,000) | ||||||||
Common stock issued for employee stock purchase plan | 21,575 | $ 2 | 21,573 | ||||||
Common stock issued for employee stock purchase plan (in shares) | 240,000 | ||||||||
Compensation expense from stock-based awards | 177,289 | 177,289 | |||||||
Net income | 476,923 | 476,923 | |||||||
Unrealized gain (loss) on net investment hedges, net of tax | 1,248 | 1,248 | |||||||
Repurchases of common stock | $ (30,000) | $ (2) | (29,998) | ||||||
Repurchases of common stock (in shares) | (230,000) | (226,000) | |||||||
Foreign currency translation adjustment | $ 1,613 | 1,613 | |||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (307) | (307) | |||||||
Change in pension benefits, net of tax | 4,956 | 4,956 | |||||||
Ending balance at Sep. 30, 2021 | $ 2,038,468 | $ 1,172 | 1,718,504 | 414,656 | (95,864) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 117,163,000 | 117,163,000 | |||||||
Common stock issued for employee stock-based awards | $ 18 | (18) | |||||||
Common stock issued for employee stock-based awards (in shares) | 1,737,000 | ||||||||
Shares surrendered by employees to pay taxes related to stock-based awards | $ (68,991) | $ (6) | (68,985) | ||||||
Shares surrendered by employees to pay taxes related to stock-based awards (in shares) | (597,000) | ||||||||
Common stock issued for employee stock purchase plan | 21,207 | $ 2 | 21,205 | ||||||
Common stock issued for employee stock purchase plan (in shares) | 215,000 | ||||||||
Compensation expense from stock-based awards | 174,863 | 174,863 | |||||||
Net income | 313,081 | 313,081 | |||||||
Unrealized gain (loss) on net investment hedges, net of tax | 17,556 | $ 17,556 | |||||||
Repurchases of common stock | $ (125,000) | $ (11) | (124,989) | ||||||
Repurchases of common stock (in shares) | (1,050,000) | (1,046,000) | |||||||
Foreign currency translation adjustment | $ (92,768) | (92,768) | |||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 0 | ||||||||
Change in pension benefits, net of tax | 17,618 | 17,618 | |||||||
Ending balance at Sep. 30, 2022 | $ 2,296,034 | $ 1,175 | $ 1,720,580 | $ 727,737 | $ (153,458) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 117,472,000 | 117,472 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation Business PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts. PTC is a global software company that provides a portfolio of innovative digital solutions that work together to transform how physical products are engineered, manufactured, and serviced. 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 United States. All intercompany balances and transactions have been eliminated in the consolidated financial statements. We prepare our financial statements under generally accepted accounting principles in the United States. that require management to make estimates and assumptions that affect the amounts reported and the related disclosures. Actual results could differ from these estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. 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 non-monetary 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 Other income, net in the Consolidated Statements of Operations. Revenue Recognition Nature of Products and Services Our sources of revenue include: (1) subscriptions, (2) perpetual licenses, (3) support for perpetual licenses and (4) professional services. Revenue is derived from the licensing of computer software products and from related support and/or professional services contracts. In accordance with ASC 606, Revenue from Contracts with Customers , revenue is recognized when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these products or services. To achieve the core principle of this standard, we apply the following five steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to performance obligations in the contract, and (5) recognize revenue when or as we satisfy a performance obligation. We enter into contracts that include combinations of licenses, support and professional services, each of which are accounted for as separate performance obligations with differing revenue recognition patterns referenced below. Performance Obligation When Performance Obligation is Typically Satisfied Term-based subscriptions On-premises software licenses Point in Time: Upon the later of when the software is made available or the subscription term commences Support and cloud-based offerings (including SaaS) Over Time: Ratably over the contractual term; commencing upon the later of when the software is made available or the subscription term commences Perpetual software licenses Point in Time: when the software is made available Support for perpetual software licenses Over Time: Ratably over the contractual term Professional services Over Time: As services are provided Judgments and Estimates Our contracts with customers for subscriptions typically include commitments to transfer term-based, on-premises software licenses bundled with support and/or cloud services. On-premises software is determined to be a distinct performance obligation from support which is sold for the same term of the subscription. For subscription arrangements which include cloud services and on-premises licenses, we assess whether the cloud component is highly interrelated with the on-premises term-based software licenses. Other than a limited population of subscriptions, the cloud component is not currently deemed to be interrelated with the on-premises term software and, as a result, cloud services are accounted for as a distinct performance obligation from the software and support components of the subscription. Judgment is required to allocate the transaction price to each performance obligation. We use the estimated standalone selling price method to allocate the transaction price for items that are not sold separately. The estimated standalone selling price is determined using all information reasonably available to us, including market conditions and other observable inputs. The corresponding revenues are recognized as the related performance obligations are satisfied. Where subscriptions include on-premises software and support only, we determined th at approximately 55 % of the estimated standalone selling price for subscriptions is attributable to software licenses and approximately 45 % i s attributable to support for those licenses. Some of our subscription offerings include a combination of on-premises and cloud-based technology. In such cases, the cloud-based technology is considered distinct and receives an allocation of approximately 5 % to 50 % of the estimated standalone selling price of the subscription. The amounts allocated to cloud are based on assessment of the relative value of the cloud functionality in the subscription, with the remaining amounts allocated between software and support. Our multi-year, non-cancellable on-premises subscription contracts provide customers with an annual right to exchange software within the original subscription with other software. Although the exchange right is limited to software products within a similar product grouping, the exchange right is not limited to products with substantially similar features and functionality as those originally delivered. We determined that this right to exchange previously delivered software for different software represents variable consideration to be accounted for as a liability. We have identified a standard portfolio of contracts with common characteristics and applied the expected value method of determining variable consideration associated with this right. Additionally, where there are isolated situations that are outside of the standard portfolio of contracts due to contract size, longer contract duration, or other unique contractual terms, we use the most likely amount method to determine the amount of variable consideration. In both circumstances, the variable consideration included in the transaction price is constrained to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. As of September 30, 2022 and 2021, the total liability was $ 34.2 million and $ 40.3 million, respectively, primarily associated with the annual right to exchange on-premises subscription software. Practical Expedients We have elected certain practical expedients associated with our revenue recognition policy. We do not account for significant financing components if the period between revenue recognition and when the customer pays for the products or services is one year or less. Additionally, we recognize revenue equal to the amount we have a right to invoice when the amount corresponds directly with the value to the customer of our performance to date. 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. Marketable Securities As of September 30, 2022, our investment portfolio consisted of certificates of deposit, commercial paper, corporate notes/bonds and government securities that had a maximum maturity of three years. In December 2020, we sold all our marketable securities to partially fund the Arena acquisition, resulting in proceeds of $ 56.2 million. Neither gross realized gains nor gross realized losses related to the sale were material. Equity Securities On July 22, 2021, a company in which we were a preferred equity investor, Matterport, Inc., completed a business combination with a public company. The carrying value of our investment, which was classified as a non-marketable equity investment, was approximately $ 8.7 million prior to the business combination. Our preferred shares were converted into common shares of Matterport. As of September 30, 2022, PTC held no shares in Matterport, as we sold all previously held shares during the three months ended March 31, 2022. The shares sold included those held as of September 30, 2021, as well as additional shares which PTC earned during the second quarter of FY'22 based on contingent earn-outs achieved in January 2022. Shares related to the original investment were restricted from sale until January 2022 (six months after Matterport became a public company). At expiration of this lock-out, we sold all shares held from the original investment for $ 39.1 million at an average price of $ 9.1 per share. In February 2022, we sold all remaining shares for $ 3.6 million at an average share price of $ 7.6 per share. Due to the decline in the price per share during the first six months of fiscal 2022, we recognized a net loss of $ 34.8 million in Other income, net on the Consolidated Statements of Operations. No additional gains or losses have been recognized for 2022 and the aggregate realized gain from the original investment of $ 8.7 million was $ 34.0 million. The fair value of the Matterport shares as of September 30, 2021 was $ 77.5 million and was determined using the closing price of Matterport's common stock as of September 30, 2021, less a temporary discount for lack of marketability. For the year ended September 30, 2021, we recorded an unrealized gain of $ 68.8 million on the appreciation of the value of the shares in Other income, net on the Consolidated Statement of Operations. We also have non-marketable equity investments that we account for at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar investments off the same issuer. We monitor non-marketable equity investments for events that could indicate that the investments are impaired, such as deterioration in the issuer's financial condition and business forecasts and lower valuation in recent or proposed financings. Changes in fair value of non-marketable equity investments are recorded in Other income, net on the Consolidated Statements of Operations. In the years ended September 30, 2022 and 2021, we did no t record any impairment charges for our investments. The carrying value of our non-marketable equity investments is recorded in Other assets on the Consolidated Balance Sheets and totaled $ 1.0 million and $ 2.2 million as of September 30, 2022 and 2021, respectively. 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 many geographically diverse customers dispersed across many industries. No individual customer comprised more than 10% of our trade accounts receivable as of September 30, 2022 or 2021 or more than 10% of our revenue for the years ended September 30, 2022, 2021 or 2020 . 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. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Allowance for Doubtful Accounts We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. Effective October 1, 2020, we adopted ASC 326, Financial Instruments—Credit Losses, which replaced the incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. 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 $ 0.4 million, $ 0.3 million and $ 0.5 million as of September 30, 2022, 2021 and 2020, respectively. Uncollectible trade accounts receivable written-off, net of recoveries, were $ 0.4 million, $ 0.1 million and $ 0.2 million in 2022, 2021 and 2020, respectively. Net bad debt expense was $ 0.5 million in 2022, net bad debt recovery was $ 0.2 million in 2021 and net bad debt expense was $ 0.0 million in 2020 , and is included in General and administrative expenses in the accompanying Consolidated Statements of Operations. 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. Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates. Our most significant foreign currency exposures relate to Western European countries, Japan, China and India. Our foreign currency risk management strategy is principally designed to mitigate the future potential financial impact of changes in the U.S. dollar value of anticipated transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. We enter into derivative transactions, specifically foreign currency forward contracts and options, to manage the exposures to foreign currency exchange risk to reduce earnings volatility. We do not enter into derivatives transactions for trading or speculative purposes. For a description of our non-designated hedge and net investment hedge activity see Note 17. Derivative Financial Instruments . Non-Designated Hedges We hedge our net foreign currency monetary assets and liabilities primarily resulting from foreign currency denominated receivables and payables with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These contracts have maturities of up to approximately four months . The majority of our foreign currency forward contracts are not designated 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 or losses on the underlying foreign-denominated balance are offset by the loss or gain on the forward contract and are included in Other income, net. Net Investment Hedges We translate balance sheet accounts of subsidiaries with foreign functional currencies into U.S. Dollars using the exchange rate at each balance sheet date. Resulting translation adjustments are reported as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheet. We designate certain foreign exchange forward contracts as net investment hedges against exposure on translation of balance sheet accounts of Euro functional subsidiaries. Net investment hedges partially offset the impact of foreign currency translation adjustment recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheet. All foreign exchange forward contracts are carried at fair value on the Consolidated Balance Sheet and the maximum duration of foreign exchange forward contracts is approximately three months . Net investment hedge relationships are designated at inception, and effectiveness is assessed retrospectively on a quarterly basis using the net equity position of Euro functional subsidiaries. As the forward contracts are highly effective in offsetting exchange rate exposure, we record changes in these Unrealized gain (loss) on net investment hedges in Accumulated other comprehensive loss and subsequently reclassify them to Foreign currency translation adjustment in Accumulated other comprehensive loss at the time of forward contract maturity. Changes in the fair value of foreign exchange forward contracts due to changes in time value are excluded from the assessment of effectiveness. Our derivatives are not subject to any credit contingent features. We manage credit risk with counterparties by trading among several counterparties, and we review our counterparties’ credit at least quarterly. Leases We adopted ASC 842, Leases effective October 1, 2019. ASC 842 requires a modified retrospective transition method that could either be applied at the earliest comparative period in the financial statements or in the period of adoption. We elected to use the period of adoption (October 1, 2019) transition method and therefore did not recast prior periods. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets and Operating lease obligations on our Consolidated Balance Sheets. Our operating leases are primarily for office space, cars, servers, and office equipment. We made an election not to separate lease components from non-lease components for office space, servers and office equipment. We combine fixed payments for non-lease components with lease payments and account for them together as a single lease component which increases the amount of our lease assets and liabilities. Finance leases are included in Property and equipment, Accrued expenses and Other current liabilities, and Other liabilities on our Consolidated Balance Sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the leases. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term as that of the lease payments at the commencement date. The right-of-use assets include any lease payments made and exclude lease incentives received. Operating lease expense is recognized on a straight-line basis over the lease term. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We generally use the base non-cancellable lease term when determining the lease assets and liabilities. Certain lease agreements contain variable payments, which are expensed as incurred and not included in the lease assets and liabilities. These variable payments include insurance, taxes, consumer price index payments, and payments for maintenance and utilities. Our operating leases expire at various dates through 2037 . 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 twelve 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 term 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. Our research and development expenses consist principally of salaries and benefits, costs of computer equipment, and facility expenses. 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 2022, 2021 or 2020. We purchased software of $ 6.0 million and $ 0.6 million in 2022 and 2021, respectively. Additionally, we acquired capitalized software through business combinations (for further detail, see Note 6. Acquisitions and Disposition of Business ). These assets are included in Intangible assets in the accompanying Consolidated Balance Sheets. Business Combinations We allocate the purchase price of acquisitions to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value. Goodwill is measured as the excess of the purchase price over the value of net identifiable assets acquired. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. Any adjustments to estimated fair value are recorded to goodwill, provided that we are within the measurement period (up to one year from the acquisition date) and that we continue to collect information to determine estimated fair value. Subsequent to the measurement period or our final determination of estimated fair value, whichever comes first, adjustments are recorded in the Consolidated Statements of Operations. Goodwill, Acquired Intangible Assets and Long-lived Assets Goodwill is the amount by which the purchase price in a business acquisition exceeds the fair value 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 segment basis, when applicable, that could trigger an impairment review include significant under-performance 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. Our annual goodwill impairment test is based on either a quantitative or qualitative assessment. A quantitative assessment compares the fair value of the reporting unit 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 estimated 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 and operating plans; and industry data. A qualitative assessment is designed to determine whether we believe it is more likely than not that the fair values of our reporting units exceed their carrying values. Qualitative assessment includes a review of qualitative factors, including company-specific (financial performance and long-range plans), industry, and macroeconomic factors, and a consideration of the fair value of each reporting unit at the last valuation date. We completed our annual goodwill impairment review as of June 30, 2022, which consisted of a qualitative assessment of our Software Products segment and a quantitative assessment of our Professional Services segment in conjunction with the sale of a portion of that business to ITC Infotech. Our qualitative assessment for Software Products included company-specific (e.g., financial performance and long-range plans), industry, and macroeconomic factors, as well as consideration of the fair value of each reporting unit relative to its carrying value at the last valuation date (June 27, 2020). Based on our qualitative assessment, we believe it is more likely than not that the fair value of our Software Products reporting unit exceeds its carrying value and no further impairment testing is required. Our quantitative assessment for the Professional Services segment compared the fair value of the reporting unit to its carrying value. We estimated the fair value of the reporting unit using a discounted cash flow valuation model. This model requires estimates of future revenues, profits, capital expenditures, working capital, and a terminal value based on a residual cash flow valuation model. We estimated this amount by evaluating historical trends, current budgets and operating plans, including consideration of the completed transaction with ITC Infotech. Based on a comparison of the estimated fair value to the carrying value of the Professional Services reporting unit as of June 30, 2022, no impairment was required. Through September 30, 2022, there were no events or changes in circumstances that indicated that the carrying values of goodwill or acquired intangible assets may not be recoverable. 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 16 years, customer lists are amortized over periods up to 13 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. An 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 $ 8.6 million, $ 7.1 million and $ 3.8 million in 2022, 2021 and 2020 , respectively and are included in sales and marketing expenses in the accompanying Consolidated Statements of Operations. 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 (benefit) for income taxes in the Consolidated Statements of Operations. Comprehensive Income Comprehensive income consists of Net income and Other comprehensive income (loss), which includes foreign currency translation adjustments, changes in unrecognized actuarial gains and losses (net of tax) related to pension benefits, unrealized gains and losses on hedging instruments and unrealized gains and losses on marketable securities. 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, 2022, was comprised of the following: cumulative translation adjustment losses of $ 160.2 million, unrecognized actuarial losses related to pension benefits of $ 5.4 million ($ 3.9 million net of tax), and accumulated net gains from net investment hedges of $ 16.9 million ($ 10.6 million net of tax). As of September 30, 2021, Accumulated other comprehensive loss was comprised of the following: cumulative translation adjustment losses of $ 67.5 million, unrecognized actuarial losses related to pension benefits of $ 30.2 million ($ 21.5 million net of tax), and accumulated net losses from net investment hedges of $ 6.5 million ($ 6.5 million net of tax). Earnings per Share (EPS) Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. 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. Anti-dilutive shares excluded from the calculations of diluted EPS were immaterial in the years ended September 30, 2022 and 2021. The following table presents the calculation for both basic and diluted EPS: (in thousands, except per share data) Year ended September 30, 2022 2021 2020 Net income $ 313,081 $ 476,923 $ 130,695 Weighted average shares outstanding 117,194 116,836 115,663 Dilutive effect of employee stock options, restricted shares and restricted stock units 1,039 1,531 604 Diluted weighted average shares outstanding 118,233 118,367 116,267 Earnings per share—Basic $ 2.67 $ 4.08 $ 1.13 Earnings per share—Diluted $ 2.65 $ 4.03 $ 1.12 Stock-Based Compensation We measure the compensation cost |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers Contract Assets and Contract Liabilities (in thousands) September 30, 2022 2021 Contract asset $ 21,096 $ 12,934 Deferred revenue $ 520,333 $ 497,677 As of September 30, 2022, $ 16.9 million of our contract assets are expected to be transferred to receivables within the next 12 months and therefore are included in Other current assets. The remainder is included in Other assets and expected to be transferred within the next 24 months. As of September 30, 2021, $ 8.2 million of our contract asset balance was included in Other current assets. Approximately $ 7.0 million of the September 30, 2021 contract asset balance was transferred to receivables during the year ended September 30, 2022 as a result of the right to payment becoming unconditional. The majority of the contract asset balance relates to two large professional services contracts with invoicing terms based on performance milestones. The net increase in contract assets of $ 8.2 million includes an increase of approximately $ 15.2 million related to revenue recognized in the period, net of billings. During the year ended September 30, 2022, we recognized $ 491.6 million of revenue that was included in Deferred revenue as of September 30, 2021 and there were additional deferrals of $ 507.3 million, primarily related to new billings. In addition, deferred revenue increased by $ 6.9 million as a result of the acquisition of Intland Software. For subscription contracts, we generally invoice customers annually. The balance of total short- and long-term receivables as of September 30, 2022 was $ 871.0 million, compared to $ 744.6 million as of September 30, 2021. Costs to Obtain or Fulfill a Contract We recognize an asset for the incremental costs of obtaining a contract with a customer if the benefit of those costs is expected to be longer than one year. These deferred costs (primarily commissions) are amortized proportionately related to revenue over 5 years, which is generally longer than the term of the initial contract because of anticipated renewals as commissions for renewals are not commensurate with commissions related to our initial contracts. As of September 30, 2022 and September 30, 2021, deferred costs of $ 40.7 million and $ 40.2 million, respectively, were included in Other current assets and $ 77.0 million and $ 81.1 million, respectively, were included in Other assets. Amortization expense related to costs to obtain a contract with a customer was $ 50.9 million and $ 46.7 million in the years ended September 30, 2022 and 2021 , respectively. There were no imp airments of the contract cost asset in the years ended September 30, 2022 and 2021. Remaining Performance Obligations Our contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. As of September 30, 2022, the amounts include additional performance obligations of $ 520.3 million recorded in deferred revenue and $ 1,092.7 million that are not yet recorded in the Consolidated Balance Sheets . We expect to recognize approximately 57 % of the total $ 1,613.0 million over the next 12 months, with the remaining amount thereafter. Disaggregation of Revenue (in thousands) Year ended September 30, 2022 2021 2020 Total recurring revenue $ 1,736,188 $ 1,616,328 $ 1,281,949 Perpetual license 34,065 33,013 32,668 Professional services 163,094 157,818 143,798 Total revenue $ 1,933,347 $ 1,807,159 $ 1,458,415 For further disaggregation of revenue by geographic region and product group see Note 18. Segment and Geographic Information . |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | 4. Restructuring and Other Charges Restructuring and other charges, net includes restructuring charges (credits), headquarters relocation charges, and impairment and accretion expense charges related to the lease assets of exited facilities. Refer to Note 19. Leases for additional information about exited facilities. In 2022, Restructuring and other charges, net totaled $ 36.2 million, of which $ 32.4 mill ion is attributable to restructuring charges, $ 5.1 million is attributable to other charges for professional fees included in restructuring related to our SaaS transformation, offset by a $ 1.3 million credit attributable to sublease income and the reversal of lease liabilities related to exited lease facilities. We made cash payments related to restructuring charges of $ 40.8 million ($ 34.0 million related to employee charges, $ 2.5 million in payments for other professional fees included in restructuring related to our SaaS transformation, and $ 4.3 million in net payments for variable costs related to restructured facilities). In 2021, Restructuring and other charges, net totaled $ 2.2 million, of which $ 2.1 million was attributable to restructuring charges and $ 0.1 million was attributable to impairment and accretion expense related to exited lease facilities. We made cash payments related to restructuring charges of $ 6.7 million ($ 3.9 million related to the 2020 restructuring and $ 2.8 million in rent payments for the restructured facilities). In 2020, Restructuring and other charges, net totaled $ 32.7 million, of which $ 26.4 million was attributable to restructuring charges, $ 5.6 million was attributable to impairment and accretion expense related to exited lease facilities, and $ 0.7 million was attributable to accelerated depreciation related to the planned exit of a facility. We made cash payments related to restructuring charges of $ 31.5 million ($ 27.3 million related to the 2020 restructuring, $ 3.9 million related to the 2019 restructuring, and $ 0.3 million related to a prior restructuring). Restructuring Charges In the first quarter of 2022, we committed to a plan to restructure our workforce and consolidate select facilities to align our customer facing and product-related functions with the SaaS industry best practices and accelerate the opportunity for our on-premises customers to move to the cloud. The restructuring plan resulted in charges of $ 33.1 millio n in 2022, primarily associated with the termination of benefits for approximately 330 employees. In the first quarter of 2020, we initiated a restructuring program as part of a realignment associated with expected synergies and operational efficiencies related to the Onshape acquisition. The restructuring plan resulted in charges of $ 30.8 million through fiscal year 2020 for termination benefits associated with approximately 250 employees. In the year ended September 30, 2022 and 2021, we recorded a credit of $ 0.1 million and a charge of $ 0.2 million, respectively, related to this restructuring plan. The following table summarizes restructuring accrual activity for the three years ended September 30, 2022: (in thousands) Employee severance Facility closures Consolidated total Balance, September 30, 2019 $ 298 $ 30,788 $ 31,086 ASC 842 adoption — ( 16,462 ) ( 16,462 ) Charges (credits) to operations, net 30,690 ( 4,263 ) 26,427 Cash disbursements ( 27,256 ) ( 4,246 ) ( 31,502 ) Other non-cash — 164 164 Foreign exchange impact 260 14 274 Balance, September 30, 2020 3,992 5,995 9,987 Charges to operations, net 1,887 249 2,136 Cash disbursements ( 3,925 ) ( 2,756 ) ( 6,681 ) Foreign exchange impact 27 17 44 Balance, September 30, 2021 1,981 3,505 5,486 Charges (credits) to operations, net 32,971 ( 561 ) 32,410 Cash disbursements ( 34,023 ) ( 2,355 ) ( 36,378 ) Foreign exchange impact ( 583 ) — ( 583 ) Balance, September 30, 2022 $ 346 $ 589 $ 935 As of September 30, 2022 and 2021, the accrual for employee severance and related benefits was included in Accrued compensation and benefits in the Consolidated Balance Sheets. As of September 30, 2022, the accrual for facility closures and related costs was included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets and as of September 30, 2021 , $ 2.6 million was included in Accrued expenses and other current liabilities and $ 0.9 million was included in Other liabilities in the Consolidated Balance Sheets. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consisted of the following: (in thousands) September 30, 2022 2021 Computer hardware and software $ 364,762 $ 352,704 Furniture and fixtures 29,744 30,568 Leasehold improvements 95,383 94,959 Gross property and equipment 489,889 478,231 Accumulated depreciation and amortization ( 391,788 ) ( 377,994 ) Net property and equipment $ 98,101 $ 100,237 Depreciation expense was $ 27.1 million, $ 26.1 million and $ 24.7 million in 2022, 2021 and 2020 , respectively. |
Acquisitions and Disposition of
Acquisitions and Disposition of Business | 12 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Disposition of Business | 6. Acqui sitions and Disposition of Business Acquisition and transaction-related costs were $ 13.2 million, $ 15.0 million and $ 8.6 million in 2022, 2021 and 2020, respectively. Acquisition and transaction-related costs include direct costs of potential and completed acquisitions (e.g., investment banker fees and professional fees, including legal and valuation services) and expenses related to acquisition integration activities (e.g., professional fees and severance). In addition, subsequent adjustments to our initial estimated amount of contingent consideration associated with specific acquisitions are included within acquisition and transaction-related charges. Other transactional charges include third-party costs related to structuring unusual transactions, such as the divestiture of a portion of our business. These costs are classified in General and administrative expenses in the accompanying Consolidated Statements of Operations. Our results of operations include the results of acquired businesses beginning on their respective acquisition date. For all acquisitions made in 2022, our results of operations, if presented on a pro forma basis, would not differ materially from our reported results. Intland Software On April 29, 2022, we acquired Intland Software, GmbH, and Eger Invest GmbH (together, “Intland Software”) pursuant to a Share Sale and Purchase Agreement. Intland Software developed and marketed the Codebeamer Application Lifecycle Management (ALM) family of software products. The purchase price of the acquisition was $ 278.1 million, net of cash acquired, which was financed with cash on hand and $ 264 million borrowed under our existing credit facility. Intland Software had approximately 150 employees on the close date. The acquisition of Intland Software has been accounted for as a business combination. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The fair values of intangible assets were based on valuations using a discounted cash flow model which requires the use of significant estimates and assumptions, including estimating future revenues and costs. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The purchase price allocation is considered preliminary, and additional adjustments may be recorded during the measurement period as the company receives additional information relevant to the acquisition related to the finalization of working capital adjustments to the purchase price and deferred tax assets and liabilities. The purchase price allocation resulted in $ 240.9 million of goodwill, $ 38.8 million of customer relationships, $ 19.1 million of purchased software, $ 1.3 million of trademarks, $ 20.1 million of deferred tax liabilities, $ 0.7 million of income tax payables, $ 6.9 million of deferred revenue, $ 6.5 million of accounts receivable, and $ 0.8 million of other net liabilities. The purchase price allocation includes the finalization of measurement period adjustments, which resulted in a $ 0.9 million increase in goodwill from $ 240.0 million as of Q3'22, driven by completion of working capital adjustments. The acquired customer relationships, purchased software, and trademarks are being amortized over useful lives of 11 years , 10 years , and 10 years , respectively, based on the expected economic benefit pattern of the assets. The acquired goodwill was allocated to our software products segment and will not be deductible for income tax purposes. The resulting amount of goodwill reflects the expected value that will be created by expanding our ALM offerings, which are complementary to our PLM offerings Arena On January 15, 2021, we acquired Arena Holdings, Inc. (“Arena”) pursuant to an Agreement and Plan of Merger dated as of December 12, 2020 by and among PTC, Arena, Astronauts Merger Sub, Inc., and the Representative named therein. We paid approximately $ 715 million, net of cash acquired of $ 11.1 million, for Arena, which amount was financed with cash on hand and $ 600 million borrowed under our existing credit facility. Arena had approximately 170 employees on the close date. The acquisition of Arena added revenue of approximately $ 29.8 million in FY'21, which was net of approximately $ 9.1 million in fair value adjustments related to purchase accounting for the acquisition. The acquisition of Arena was accounted for as a business combination. Assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. The fair values of intangible assets were based on valuations using a discounted cash flow model which requires the use of significant estimates and assumptions, including estimating future revenues and costs. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The purchase price allocation resulted in $ 562.8 million of goodwill, $ 155.0 million of customer relationships, $ 38.3 million of purchased software, $ 4.2 million of trademarks, $ 41.3 million of deferred tax liabilities, $ 15.5 million of deferred revenue, $ 11.4 million of accounts receivable, and $ 0.4 million of other net liabilities. The acquired customer relationships, purchased software, and trademarks are being amortized over useful lives of 13 years, 9 years, and 12 years, respectively, based on the expected economic benefit pattern of the assets. The acquired goodwill was allocated to our software products segment and will not be deductible for income tax purposes. The resulting amount of goodwill reflects the expected value that will be created by participation in expected future growth of the PLM SaaS market and expansion into the mid-market for PLM, where SaaS solutions are becoming the standard. PLM Services Business Disposition On June 1, 2022, we sold a portion of our PLM services business to ITC Infotech India Limited pursuant to a Strategic Partner Agreement dated as of April 20, 2022 by and between PTC and ITC Infotech. Consideration received from ITC Infotech for the sale was approximately $ 60.4 million, consisting of $ 32.5 million cash paid on closing and $ 28.0 million of services to be provided by ITC Infotech to PTC for no additional charge. We recognized a gain on the sale of $ 29.8 million, which is included within Other income, net. The recognized gain consists of $ 60.4 million of consideration received, less net assets of the business of $ 30.6 million. Net assets include $ 33.0 million of goodwill allocated to the business, less $ 2.4 million of liabilities associated with approximately 160 employees who transferred to ITC Infotech. Goodwill was allocated to the sold business based on a relative fair value allocation of total goodwill of the Professional Services segment. Additional future contingent consideration of up to $ 20 million may be received by PTC based on certain performance milestones. We have elected to defer the recognition of gains associated with contingent consideration until they become realizable. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | 7. Goodwill and Acquired Intangible Assets We have two operating and reportable segments: (1) Software Products and (2) Professional Services. We assess goodwill for impairment at the reporting unit level. Our reporting units are determined based on the components of our operating segments that constitute a business for which discrete financial information is available and for which operating results are regularly reviewed by segment management. Our reporting units are the same as our operating segments. As of September 30, 2022, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $ 2,725.2 million and attributable to our Professional Services segment was $ 11.2 million. As of September 30, 2021, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $ 2,525.7 million and attributable to our Professional Services segment was $ 45.2 million. Goodwill and acquired intangible assets consisted of the following: (in thousands) September 30, 2022 September 30, 2021 Gross Accumulated Net Book Gross Accumulated Net Book Goodwill (not amortized) $ 2,353,654 $ 2,191,887 Intangible assets with finite lives (amortized) (1) : Purchased software $ 502,859 $ 355,857 $ 147,002 $ 483,771 $ 338,542 $ 145,229 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 594,970 369,390 225,580 574,516 350,648 223,868 Trademarks and trade names 27,546 17,410 10,136 26,906 17,036 9,870 Other 3,766 3,766 — 4,000 4,000 — $ 1,152,018 $ 769,300 $ 382,718 $ 1,112,070 $ 733,103 $ 378,967 Total goodwill and acquired intangible assets $ 2,736,372 $ 2,570,854 (1) The weighted-average useful lives of purchased software, customer lists and relationships, and trademarks and trade names with a remaining net book value are 11 years, 11 years, and 12 years, respectively. The changes in the carrying amounts of goodwill from September 30, 2021 to September 30, 2022 are due to the impact of acquisitions 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: (in thousands) Software Professional Total Balance, September 30, 2020 $ 1,583,316 $ 42,470 $ 1,625,786 Arena acquisition 563,620 — 563,620 Other acquisitions 181 400 581 Foreign currency translation adjustments 1,851 49 1,900 Balance, September 30, 2021 $ 2,148,968 $ 42,919 $ 2,191,887 Intland Software acquisition 240,971 — 240,971 Other acquisitions 691 — 691 Divestiture of business — ( 32,992 ) ( 32,992 ) Foreign currency translation adjustments ( 46,611 ) ( 292 ) ( 46,903 ) Balance, September 30, 2022 $ 2,344,019 $ 9,635 $ 2,353,654 The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2022, 2021 and 2020 was reflected in our Consolidated Statements of Operations as follows: (in thousands) Year ended September 30, 2022 2021 2020 Amortization of acquired intangible assets $ 34,970 $ 29,396 $ 28,713 Cost of software revenue 25,578 29,769 27,391 Total amortization expense $ 60,548 $ 59,165 $ 56,104 The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2022 is $ 56.4 million for 2023, $ 48.3 million for 2024, $ 42.1 million for 2025, $ 38.7 million for 2026, $ 36.2 million for 2027 and $ 161.0 million thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Our income before income taxes consisted of the following: (in thousands) Year ended September 30, 2022 2021 2020 Domestic $ 97,460 $ 41,199 $ ( 73,865 ) Foreign 299,638 350,556 208,571 Total income before income taxes $ 397,098 $ 391,755 $ 134,706 Our provision (benefit) for income taxes consisted of the following: (in thousands) Year ended September 30, 2022 2021 2020 Current: Federal $ 767 $ 4,774 $ 2,187 State 6,675 1,609 1,266 Foreign 33,612 66,554 25,199 41,054 72,937 28,652 Deferred: Federal 25,730 ( 152,311 ) ( 26,811 ) State ( 3,177 ) ( 27,228 ) ( 4,063 ) Foreign 20,410 21,434 6,233 42,963 ( 158,105 ) ( 24,641 ) Provision (benefit) for income taxes $ 84,017 $ ( 85,168 ) $ 4,011 Taxes computed at the statutory federal income tax rates are reconciled to the provision (benefit) for income taxes as follows: (in thousands) Year ended September 30, 2022 2021 2020 Statutory federal income tax rate $ 83,391 21 % $ 82,268 21 % $ 28,288 21 % Change in valuation allowance — — ( 134,695 ) ( 34 )% ( 16,489 ) ( 12 )% State income taxes, net of federal tax benefit 6,518 2 % ( 28,768 ) ( 8 )% ( 2,998 ) ( 2 )% Federal research and development credits ( 7,477 ) ( 2 )% ( 5,764 ) ( 2 )% ( 5,483 ) ( 4 )% Uncertain tax positions 2,418 1 % 3,398 1 % 3,072 2 % Foreign tax credit ( 9,078 ) ( 2 )% ( 35,368 ) ( 9 )% — — Foreign rate differences ( 8,982 ) ( 2 )% ( 34,584 ) ( 9 )% ( 22,074 ) ( 16 )% Foreign tax on U.S. provision 9,078 2 % 5,931 2 % 4,523 3 % Excess tax benefits from restricted stock ( 8,278 ) ( 2 )% ( 6,141 ) ( 2 )% ( 1,743 ) ( 1 )% Audits and settlements — — 33,370 9 % — — U.S. permanent items 15,304 3 % 18,389 5 % 6,590 5 % Base Erosion Anti-Abuse Tax (BEAT) — — 2,936 1 % ( 1,759 ) ( 1 )% GILTI, net of foreign tax credits 2,705 1 % 18,217 4 % 14,899 11 % Foreign-Derived Intangible Income (FDII) ( 6,848 ) ( 2 )% ( 4,428 ) ( 1 )% ( 2,461 ) ( 2 )% Sale of a portion of the PLM services business 6,844 2 % — — — — Other, net ( 1,578 ) ( 1 )% 71 — ( 354 ) ( 1 )% Provision (benefit) for income taxes $ 84,017 21 % $ ( 85,168 ) ( 22 )% $ 4,011 3 % In 2022, 2021, and 2020, our effective tax rate is impacted by our corporate structure in which our foreign taxes are at a net effective tax rate lower than the U.S. rate. A significant amount of our foreign earnings is generated by our subsidiaries organized in Ireland and the Cayman Islands. In 2022, 2021, and 2020, the foreign rate differential predominantly relates to these earnings. In addition to the foreign rate differential, our tax rate differed from the U.S. statutory federal income tax due to the net effects of the Global Intangible Low-Taxed Income (GILTI) and Foreign Derived Intangible Income (FDII) regimes (together referred to as U.S. Tax reform), and the excess tax benefit related to stock-based compensation. Additionally in 2022, our results include tax expense relating to the book over tax basis difference in goodwill disposed of as part of the sale of a portion of the PLM services business. As a result of the net effect of these items in 2022, our effective tax rate did not differ significantly from the U.S. federal income tax rate. In 2021, our tax rate includes a benefit due to the release of the valuation allowance on the majority of our U.S. net deferred tax assets. In 2020, we recorded benefits for the reduction of the U.S. valuation allowance as a result of the Onshape acquisition. A further reduction to the valuation allowance was also recorded to reflect the impact from the scheduling of the reversal of existing temporary differences resulting in deferred tax liabilities that cannot be offset against deferred tax assets. At September 30, 2022 and 2021, income taxes payable and income tax accruals recorded on the accompanying Consolidated Balance Sheets were $ 17.3 million ($ 5.1 million in Accrued income taxes, $ 5.6 million in Other current liabilities and $ 6.6 million in Other liabilities) and $ 15.7 million ($ 5.0 million in Accrued income taxes, $ 0.8 million in Other current liabilities and $ 9.9 million in Other liabilities), respectively. At September 30, 2022 and 2021, prepaid taxes recorded in Prepaid expenses on the accompanying Consolidated Balance Sheets were $ 25.8 million and $ 15.4 million, respectively. We made net income tax payments of $ 55.0 million, $ 56.0 million and $ 52.6 million in 2022, 2021 and 2020, respectively. The significant temporary differences that created deferred tax assets and liabilities are shown below: (in thousands) September 30, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 40,419 $ 65,383 Foreign tax credits 14,527 36,287 Capitalized research and development 23,274 27,546 Pension benefits 7,639 14,097 Prepaid expenses 15,886 12,540 Deferred revenue 2,146 2,274 Stock-based compensation 19,486 15,822 Other reserves not currently deductible 14,689 16,796 Amortization of intangible assets 130,825 147,385 Research and development and other tax credits 78,862 74,846 Lease liabilities 46,672 51,471 Fixed assets 78,249 53,025 Capital loss carryforward 3,955 35,156 Other 1,256 2,269 Gross deferred tax assets 477,885 554,897 Valuation allowance $ ( 22,283 ) ( 52,085 ) Total deferred tax assets 455,602 502,812 Deferred tax liabilities: Acquired intangible assets not deductible $ ( 118,360 ) ( 108,746 ) Lease assets ( 36,940 ) ( 37,273 ) Pension prepayments ( 2,622 ) ( 2,834 ) Deferred revenue ( 35,193 ) ( 2,662 ) Depreciation ( 6,937 ) ( 7,121 ) Unbilled accounts receivable - ( 6,391 ) Deferred income ( 5,991 ) ( 21,744 ) Prepaid commissions ( 13,356 ) ( 16,990 ) Other ( 8,508 ) ( 5,427 ) Total deferred tax liabilities ( 227,907 ) ( 209,188 ) Net deferred tax assets $ 227,695 $ 293,624 We reassess our valuation allowance requirements each financial reporting period. We assess available positive and negative evidence to estimate whether sufficient future taxable income will be generated to use our existing deferred tax assets. In the assessment for the period ended September 30, 2021, we concluded that it was more likely than not that our deferred tax assets related to U.S. federal and state income would be realizable, and therefore, the U.S. federal and the majority of the state valuation allowances were released, which resulted in non-cash federal and state tax benefits of $ 109.4 million and $ 24.8 million, respectively, to earnings in 2021. That determination was based, in part, on the Company’s cumulative profits before tax and permanent differences from the past three years, which became profitable during 2021, and projections of profits before tax and permanent differences in future years. In 2022, we continue to maintain this conclusion. 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, 2022, we had U.S. federal tax effected NOL carryforwards from acquisitions of $ 22.5 million, of which $ 1.6 million expire in 2023 to 2034. The remaining carryforwards of $ 20.9 million do not expire. The use of these NOL carryforwards is limited as a result of the change in ownership rules under Internal Revenue Code Section 382. As of September 30, 2022, we had federal R&D credit carryforwards of $ 60.9 million, which expire beginning in 2025 and ending in 2042, and Massachusetts R&D credit carryforwards of $ 26.1 million, which expire beginning in 2023 and ending in 2037. We also had foreign tax credits of $ 14.5 million, which expire beginning in 2027 and ending in 2032. We also have tax effected NOL carryforwards in non-U.S. jurisdictions totaling $ 7.2 million, the majority of which do not expire, and non-U.S. tax credit carryforwards of $ 4.0 million that expire beginning in 2030 and ending in 2041 . Additionally, we have tax effected amortization carryforwards of $ 118.5 million in a foreign jurisdiction. There are limitations imposed on the use of such attributes that could restrict the recognition of any tax benefits. As of September 30, 2022, we have a valuation allowance of $ 17.8 million against net deferred tax assets in the United States and a valuation allowance of $ 4.5 million against net deferred tax assets in certain foreign jurisdictions. The $ 17.8 million U.S. valuation allowance relates to Massachusetts tax credit carryforwards which we do not expect to realize a benefit from prior to expiration. The valuation allowance recorded against net deferred tax assets of certain foreign jurisdictions is established primarily for our capital loss carryforwards, the majority of which do not expire. However, there are limitations imposed on the utilization of such capital losses that could restrict the recognition of any tax benefits. The changes to the valuation allowance were primarily due to the following: (in thousands) Year ended September 30, 2022 2021 2020 Valuation allowance, beginning of year $ 52,085 $ 205,423 $ 177,663 Net release of valuation allowance (1) — ( 134,235 ) — Net increase (decrease) in deferred tax assets with a full valuation allowance (2) ( 29,802 ) ( 19,103 ) 27,760 Valuation allowance, end of year $ 22,283 $ 52,085 $ 205,423 (1) In 2021, this is attributable to the release in the United States. (2) In 2022, this change included the loss of foreign attributes upon liquidation of a foreign subsidiary. In 2021, this change includes the loss of state attributes upon merger of two wholly-owned subsidiaries. In 2020, this change is largely attributed to the Onshape acquisition, the adoption of ASC 842 and the impact to the change in scheduling of the reversal of existing temporary differences. 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 2022, 2021 and 2020 we recorded interest expense of $ 0.2 million, $ 2.2 million and $ 0.3 million, respectively. In 2022 and 2020 we had no penalty expenses in our income tax provision. In 2021 we had $ 2.0 million tax penalty expense in our income tax provision. As of September 30, 2022 and 2021, we had accrued $ 0.9 million and $ 0.7 million of net estimated interest expense, respectively. We had no accrued tax penalties as of September 30, 2022, 2021 or 2020. Year ended September 30, Unrecognized tax benefits (in thousands) 2022 2021 2020 Unrecognized tax benefit, beginning of year $ 21,166 $ 16,107 $ 11,484 Tax positions related to current year: Additions 3,144 4,844 2,173 Tax positions related to prior years: Additions 785 30,130 2,452 Reductions ( 1,172 ) ( 478 ) ( 2 ) Settlements — ( 29,437 ) — Unrecognized tax benefit, end of year $ 23,923 $ 21,166 $ 16,107 If all of our unrecognized tax benefits as of September 30, 2022 were to become recognizable in the future, we would record a benefit to the income tax provision of $ 23.9 million (which would be partially offset by an increase in the U.S. valuation allowance of $ 5.2 million). Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in favorable or unfavorable changes in our estimates. We believe it is reasonably possible that within the next 12 months the amount of unrecognized tax benefits related to the resolution of multi-jurisdictional tax positions could be reduced by up to $ 5 million as audits close and statutes of limitations expire. Our results for the year ended September 30, 2021 include a charge of $ 37.3 million related to the effects of a tax matter in the Republic of Korea (South Korea) of $ 34.4 million, and the resulting impact on U.S. income taxes of $ 2.9 million, and additional payments of approximately $ 20 million to South Korea in settlement of the amounts previously accrued. In the normal course of business, PTC and its subsidiaries are examined by various taxing authorities, including the IRS in the United States. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. We are currently under audit by tax authorities in several jurisdictions. Audits by tax authorities typically involve examination of the deductibility of certain permanent items, transfer pricing, limitations on net operating losses and tax credits. Although we believe our tax estimates are appropriate, the final d etermination of tax audits and any related litigation could result in material changes in our estimates. A s of September 30, 2022 , we remained subject to examination in the following major tax jurisdictions for the tax years indicated: Major Tax Jurisdiction Open Years United States 2018 through 2022 Germany 2015 through 2022 France 2019 through 2022 Japan 2017 through 2022 Ireland 2018 through 2022 Additionally, net operating loss and tax credit carryforwards from certain earlier periods in these jurisdictions may be subject to examination to the extent they are used in later periods. We incurred expenses related to stock-based compensation in 2022, 2021 and 2020 of $ 174.9 million, $ 177.3 million and $ 115.1 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 $ 27.1 million, $ 39.9 million and $ 13.4 million in 2022, 2021 and 2020, respectively. Upon vesting of the stock-based awards, 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 recorded to the tax provision. In 2022, 2021 and 2020, net windfall tax benefits of $ 5.2 million, $ 9.9 million and $ 1.3 million were recorded to the tax provision. Prior to the passage of the U.S. Tax Cuts and Jobs Act in December of 2017 (the Tax Act), we asserted that substantially all of the undistributed earnings of our foreign subsidiaries were considered indefinitely reinvested and accordingly, no deferred taxes were provided. Pursuant to the provisions of the U.S. Tax Act, these earnings were subjected to U.S. federal taxation via a one-time transition tax, and there is therefore no longer a material cumulative basis difference associated with the undistributed earnings. We maintain our assertion of our intention to permanently reinvest these earnings outside the United States unless repatriation can be done substantially tax-free, with the exception of a foreign holding company formed in 2018 and our Taiwan subsidiary. If we decide to repatriate any additional non-U.S. earnings in the future, we may be required to establish a deferred tax liability on such earnings. The amount of unrecognized deferred tax liability on the undistributed earnings would not be material. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt As of September 30, 2022 and 2021, we had the following long-term debt obligations: (in thousands) September 30, 2022 2021 4.000% Senior notes due 2028 $ 500,000 $ 500,000 3.625% Senior notes due 2025 500,000 500,000 Credit facility revolver (1) 359,000 450,000 Total debt 1,359,000 1,450,000 Unamortized debt issuance costs for the senior notes (2) ( 8,372 ) ( 10,529 ) Total debt, net of issuance costs (3) $ 1,350,628 $ 1,439,471 (1) Unamortized debt issuance costs related to the credit facility were $ 2.7 million and $ 3.8 million as of September 30, 2022 and 2021, respectively, and were included in Other assets on the Consolidated Balance Sheets. (2) Of the $ 14.1 million in financing costs incurred in connection with the issuance of the 2028 and 2025 notes, unamortized debt issuance costs were $ 8.4 million and $ 10.5 million as of September 30, 2022 and 2021, respectively, and were included in Long-term debt on the Consolidated Balance Sheet. (3) As of September 30, 2022 and 2021 all debt was classified as long term. Senior Unsecured Notes In February 2020, we issued $ 500 million in aggregate principal amount of 4.0 % senior, unsecured long-term debt at par value, due in 2028 (the 2028 notes) and $ 500 million in aggregate principal amount of 3.625 % senior, unsecured long-term debt at par value, due in 2025 (the 2025 notes). As of September 30, 2022, the total estimated fair value of the 2028 and 2025 senior notes was approximately $ 436.3 million and $ 468.7 million respectively, based on quoted prices for the notes on that date. We were in compliance with all the covenants for all of our senior notes as of September 30, 2022. Terms of the 2028 and 2025 Notes Interest on the 2028 and 2025 notes is payable semi-annually on February 15 and August 15. The debt indenture for the 2028 and 2025 notes includes covenants that limit our ability to, among other things, incur additional debt, grant liens on our properties or capital stock, enter into sale and leaseback transactions or asset sales, and make capital distributions. We may, on one or more occasions, redeem the 2028 and 2025 notes in whole or in part at specified redemption prices. In certain circumstances constituting a change of control, we will be required to make an offer to repurchase the notes at a purchase price equal to 101 % of the aggregate principal amount of the notes, plus accrued and unpaid interest. Our ability to repurchase the notes upon such event may be limited by law, by the indenture associated with the notes, by our then-available financial resources or by the terms of other agreements to which we may be party at such time. If we fail to repurchase the notes as required by the indenture, it would constitute an event of default under the indenture which, in turn, may also constitute an event of default under other obligations. Credit Agreement In February 2020, we entered into a Third Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as Administrative Agent, for a new secured multi-currency bank credit facility with a syndicate of banks. We use the credit facility for general corporate purposes, including acquisitions of businesses, share repurchases and working capital requirements. The credit facility consists of a $ 1 billion revolving credit facility, which may be increased by up to an additional $ 500 million in the aggregate if the existing or additional lenders are willing to make such increased commitments. As of September 30, 2022, unused commitments under our credit facility were approximately $ 641.0 million. The maturity date of the credit facility is February 13, 2025 , when all remaining amounts outstanding will be due and payable. 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 our option without penalty or premium. As of September 30, 2022, the fair value of our credit facility approximates its book value. PTC and certain eligible foreign subsidiaries are eligible borrowers under the credit facility. Any borrowings by PTC Inc. under the credit facility would be guaranteed by PTC Inc.’s material domestic subsidiaries that become parties to the subsidiary guaranty, if any. As of the filing of this Form 10-K, there are no subsidiary guarantors of the obligations under the credit facility. Any borrowings by eligible foreign subsidiary borrowers would be guaranteed by PTC Inc. and any subsidiary guarantors. As of the filing of this Form 10-K, no funds were borrowed by an eligible foreign subsidiary borrower. In addition, owned property (including equity interests) of PTC and certain of its material domestic subsidiaries' owned property is subject to first priority perfected liens in favor of the lenders under 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. Loans under the credit facility bear interest at variable rates which reset every 30 to 180 days depending on the rate and period selected by PTC as described below. As of September 30, 2022, the annual rate for borrowings outstanding was 4.14 %. Interest rates on borrowings outstanding under the credit facility range from 1.25 % to 1.75 % above an adjusted LIBO rate (or an agreed successor rate) for Euro currency borrowings or range from 0.25 % to 0.75 % above the defined base rate (the greater of the Prime Rate, the NYFRB rate plus 0.5 %, or an adjusted LIBO rate plus 1 %) for base rate borrowings, in each case based upon PTC’s total leverage ratio. A quarterly commitment fee on the undrawn portion of the credit facility is required, ranging from 0.175 % to 0.30 % per annum, based upon PTC’s total leverage ratio. The credit facility limits PTC’s and its subsidiaries’ ability to, among other things: incur additional indebtedness; incur liens or guarantee obligations; pay dividends (other than to PTC) and make other distributions; make investments and enter into joint ventures; dispose of assets; and engage in transactions with affiliates, except on an arms-length basis. Under the credit facility, PTC and its material domestic subsidiaries may not invest cash or property in, or loan to, PTC’s foreign subsidiaries in aggregate amounts exceeding $ 100 million for any purpose and an additional $ 200 million for acquisitions of businesses. In addition, under the credit facility, PTC and its subsidiaries must maintain the following financial ratios: • Total leverage ratio, defined as consolidated funded indebtedness to consolidated trailing four quarters EBITDA, not to exceed 4.50 to 1.00 as of the last day of any fiscal quarter; • Senior secured leverage ratio, defined as senior consolidated total indebtedness (which excludes unsecured indebtedness) to the consolidated trailing four quarters EBITDA, not to exceed 3.00 to 1.00 as of the last day of any fiscal quarter; and • Interest coverage ratio, defined as the ratio of consolidated trailing four quarters EBITDA to consolidated trailing four quarters of cash basis interest expense, of not less than 3.00 to 1.00 as of the last day of any fiscal quarter. As of September 30, 2022, our total leverage ratio was 1.79 to 1.00, our senior secured leverage ratio was 0.49 to 1.00, our interest coverage ratio was 14.21 to 1.00 and we were in compliance with all financial and operating covenants of the credit facility. Any failure to comply with the financial or operating covenants of the credit facility would prevent PTC from being able to borrow additional funds, and would constitute a default, permitting the lenders to, among other things, accelerate the amounts outstanding, including all accrued interest and unpaid fees, under the credit facility and to terminate the credit facility. A change in control of PTC, as defined in the agreement, also constitutes an event of default, permitting the lenders to accelerate the indebtedness and terminate the credit facility. In 2020, we incurred $ 2.0 million in financing costs in connection with the February 2020 credit facility and $ 1.0 million in connection with a November 2019 amendment to our prior credit facility. These origination costs are recorded as deferred debt issuance costs and are included in Other assets. Financing costs are expensed over the remaining term of the obligations. In 2022, 2021 and 2020, we incurred interest expense of $ 54.3 million, $ 50.5 million, and $ 76.4 million, respectively, and paid $ 48.5 million, $ 45.2 million and $ 60.6 million, respectively, of interest on our debt. A dditionally, in the third quarter of 2020, we paid $ 15.0 million in penalties for the early redemption of the 2024 notes. The average interest rate on borrowings outstanding during 2022, 2021 and 2020 was approximately 3.4 %, 3.3 % and 4.3 %, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies As of September 30, 2022 and 2021, we had letters of credit and bank guarantees outstanding of $ 15.0 million (of which $ 0.5 million was collateralized) and $ 16.3 million (of which $ 0.5 million was collateralized), respectively, primarily related to our corporate headquarters lease. Legal and Regulatory Matters Legal Proceedings 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. 401(k) Plan On September 17, 2020 , three individual plaintiffs filed a putative class action lawsuit against PTC, the Investment Committee for the PTC Inc. 401(k) Plan (the “Plan”), and the PTC Board of Directors (collectively, the “PTC Defendants”) in the U.S. District Court for the District of Massachusetts alleging that the defendants breached their fiduciary duties under the Employee Retirement Income Security Act of 1974 in the oversight of the Plan. On September 22, 2021, the plaintiffs and the PTC Defendants reached an agreement in principle to settle the lawsuit for a gross settlement amount of $ 1.725 million. The Court issued an Order of final approval of the settlement on October 18, 2022. The settlement amount will be funded by PTC’s insurer and paid into the Qualified Settlement Fund for the benefit of the class members. Other Legal Proceedings In addition to the matter listed above, we are subject to legal proceedings and claims against us in the ordinary course of business. As of September 30, 2022, we estimate that the range of possible outcomes for such matters is immaterial and we do not believe that resolving them 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 reporting period could be adversely affected. Guarantees and Indemnification Obligations We enter into standard indemnification agreements with our customers and business partners in the ordinary course of our business. Under such agreements, we typically indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to our products. Indemnification may also cover other types of claims, including claims relating to certain data breaches. Except for intellectual property infringement indemnification, these agreements typically limit our liability with respect to other indemnification claims. Historically, our costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and, accordingly, we 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 during the term of the license/subscription. Additionally, we generally warrant that our consulting services will be performed consistent with generally accepted industry standards and, in the case of fixed price services, the agreed-upon specifications. In most cases, liability for these warranties is capped. If necessary, we would provide for the estimated cost of product and service warranties based on specific warranty claims and claim history; however, we have not incurred significant cost under our product or services warranties. As a result, we believe the estimated fair value of these liabilities is immaterial. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 11. 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 authorized us to repurchase up to $ 1 billion of our common stock in the period October 1, 2020 through September 30, 2023. We use cash from operations and borrowings under our credit facility to make such repurchases. All shares of our common stock repurchased are automatically restored to the status of authorized and unissued. In 2022 and 2021 we repurchased 1.05 million shares for $ 125 million and 0.23 million shares for $ 30 million, respectively. We did no t repurchase any shares in 2020. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement, Recognized Amount [Abstract] | |
Equity Incentive Plans | 12. Equity Incentive Plan s We have two equity incentive plans – our 2000 Equity Incentive Plan and our 2016 Employee Stock Purchase Plan (ESPP). Our 2000 Equity Incentive 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 (RSUs) 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 RSU represents the contingent right to receive one share of our common stock. Our ESPP allows eligible employees to contribute up to 10 % of their base salary, up to a maximum of $ 25,000 per year and subject to any other plan limitations, toward the purchase of our common stock at a discounted price. The purchase price of the shares on each purchase date is equal to 85 % of the lower of the fair market value of our common stock on the first and last trading days of each offering period. The ESPP is qualified under Section 423 of the Internal Revenue Code. We estimate the fair value of each purchase right under the ESPP on the date of grant using the Black-Scholes option valuation model and use the straight-line attribution approach to record the expense over the six-month offering period. The following table shows total stock-based compensation expense recorded in our Consolidated Statements of Operations: (in thousands) Year ended September 30, 2022 2021 2020 Cost of license revenue $ 272 $ 100 $ 47 Cost of support and cloud services revenue 11,022 9,900 6,910 Cost of professional services revenue 11,481 9,263 7,012 Sales and marketing 49,467 53,712 37,351 Research and development 41,944 34,272 27,005 General and administrative 60,677 70,042 36,824 Total stock-based compensation expense $ 174,863 $ 177,289 $ 115,149 Stock-based compensation expense in 2022, 2021 and 2020 includes $ 6.4 million, $ 7.3 million, and $ 5.8 million respectively, related to our ESPP. 2000 Equity Incentive Plan Accounting and Stock-Based Compensation Expense The fair value of RSUs granted in 2022, 2021 and 2020 was based on the fair market value of our stock on the date of grant for service- and certain performance- based RSUs and based on a Monte Carlo simulation model for relative total shareholder return (rTSR) performance RSUs. The weighted average fair value per share of RSUs granted in 2022, 2021 and 2020 was $ 114.31 , $ 111.48 and $ 77.57 , respectively. We account for forfeitures as they occur, rather than estimate expected forfeitures. As of September 30, 2022, total unrecognized compensation cost related to unvested RSUs expected to vest was approximately $ 201.5 million and the weighted average remaining recognition period for unvested RSUs was 17 months. As of September 30, 2022, 2.8 million shares of common stock were available for grant under the equity incentive plan and 2.8 million shares of common stock were reserved for issuance upon vesting of RSUs granted and outstanding. Restricted stock unit activity for the year ended September 30, 2022 (in thousands, except grant date fair value data) Shares Weighted Aggregate Balance of outstanding RSUs at October 1, 2021 3,217 $ 92.46 Granted (1) 1,659 $ 114.31 Vested ( 1,736 ) $ 92.70 Forfeited or not earned ( 386 ) $ 100.05 Balance of outstanding RSUs at September 30, 2022 2,754 $ 105.07 $ 288,068 (1) RSUs granted includes 37 shares from prior period rTSR awards that were earned upon achievement of the performance criteria and vested in November 2021 and 87 shares from prior period performance-based awards that were earned upon achievement of the performance criteria and vested in November 2021 . The following table presents the number of RSU awards granted by award type: (in thousands) Twelve months ended September 30, 2022 Performance-based RSUs (1) 106 Service-based RSUs (2) 1,353 Relative Total Shareholder Return RSUs (3) 76 (1) The performance-based RSUs are primarily made up of RSUs granted to our executives and are eligible to vest based upon annual increasing performance measures over a three-year period. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2022, November 15, 2023, and November 15, 2024, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. Up to a maximum of two times the number of RSUs can be earned (up to a maximum aggregate of 152 RSUs). (2) The service-based RSUs were granted to employees, including our executive officers. Substantially all service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. (3) The rTSR RSUs were granted to our executives and are eligible to vest 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 the measurement period ending on September 30, 2024. The RSUs earned will vest on November 15, 2024. Up to a maximum of two times the number of rTSR RSUs eligible to be earned for the period (up to a maximum aggregate of 152 RSUs) may vest. If the return to PTC shareholders is negative for the period but still meets or exceeds the peer group indexed return, a maximum of 100 % of the rTSR RSUs may vest. As of September 30, 2022, weighted average remaining vesting term for outstanding awards is 1.0 year. The weighted-average fair value of the rTSR RSUs was $ 136.43 per target RSU on the grant date. The fair value of the rTSR RSUs 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 historical 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 rTSR 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 34.67 % Risk-free interest rate 0.81 % Dividend yield — % Total value on vest date of RSUs vested are as follows : (in thousands) Year ended September 30, Value of stock option and stock-based award activity 2022 2021 2020 Total value of restricted stock unit awards at vest $ 199,738 $ 171,316 $ 103,265 In 2022, shares issued upon vesting of restricted stock units were net of 0.6 million shares retained by us to cover employee tax withholdings of $ 69.0 million. In 2021, shares issued upon vesting of restricted stock units were net of 0.5 million shares retained by us to cover employee tax withholdings of $ 53.1 million. In 2020, shares issued upon vesting of restricted stock and restricted stock units were net of 0.5 million shares retained by us to cover employee tax withholdings of $ 33.7 million. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2022 | |
Deferred Compensation Arrangements [Abstract] | |
Employee Benefit Plan | 13. Employee Benefit Plan We offer a savings plan to eligible U.S. employees. The plan is qualified 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 3 % of the employee’s earnings. Our matching contributions vest immediately. We made matching contributions of $ 7.8 million, $ 7.8 million and $ 6.7 million in 2022, 2021 and 2020 , respectively. |
Pension Plans
Pension Plans | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Pension Plans | 14. Pension Plans We maintain several international defined benefit pension plans primarily covering certain employees of Computervision, which we acquired in 1998, and 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. The following table presents the actuarial assumptions used in accounting for the pension plans: 2022 2021 2020 Weighted average assumptions used to determine benefit obligations at September 30 measurement date: Discount rate 3.7 % 1.0 % 1.1 % Rate of increase in future compensation 3.6 % 2.8 % 2.8 % Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: Discount rate 1.0 % 1.1 % 0.9 % Rate of increase in future compensation 2.8 % 2.8 % 2.8 % Rate of return on plan assets 5.0 % 5.0 % 5.4 % 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. The discount rate is based on yield curves for highly rated corporate fixed income securities matched against cash flows for each future year. The weighted long-term rate of return assumption, together with the assumptions used to determine the benefit obligations as of September 30, 2022 in the table above, will be used to determine our 2023 net periodic pension income, which we expect to be approximately $ 0.4 million. As of September 30, 2022, the weighted average interest crediting rate used in our only cash balance pension plan is 4.1 %. All non-service net periodic pension costs are presented in Other income, net on the Consolidated Statement of Operations. The actuarially computed components of net periodic pension cost recognized in our Consolidated Statements of Operations for each year are shown below: (in thousands) Year ended September 30, 2022 2021 2020 Interest cost of projected benefit obligation $ 550 $ 692 $ 527 Service cost 1,016 1,127 1,426 Expected return on plan assets ( 3,712 ) ( 3,643 ) ( 3,878 ) Amortization of prior service cost ( 4 ) ( 5 ) ( 5 ) Recognized actuarial loss 1,425 4,139 3,854 Settlement gain ( 82 ) — — Net periodic pension (benefit) cost $ ( 807 ) $ 2,310 $ 1,924 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: (in thousands) Year ended September 30, 2022 2021 Change in benefit obligation: Projected benefit obligation, beginning of year $ 96,512 $ 97,832 Service cost 1,016 1,127 Interest cost 550 692 Actuarial loss (gain) ( 22,616 ) 1,100 Foreign exchange impact ( 12,949 ) ( 1,562 ) Participant contributions 96 109 Benefits paid ( 2,343 ) ( 2,786 ) Divestiture of business ( 1,184 ) — Settlements ( 953 ) — Projected benefit obligation, end of year $ 58,129 $ 96,512 Change in plan assets and funded status: Plan assets at fair value, beginning of year $ 78,385 $ 72,063 Actual return on plan assets 2,348 7,383 Employer contributions 3,007 3,049 Participant contributions 96 109 Foreign exchange impact ( 12,959 ) ( 1,433 ) Settlements ( 953 ) — Benefits paid ( 2,343 ) ( 2,786 ) Plan assets at fair value—end of year 67,581 78,385 Projected benefit obligation, end of year 58,129 96,512 Underfunded status $ ( 9,782 ) $ ( 18,982 ) Overfunded status $ 19,234 $ 855 Accumulated benefit obligation, end of year $ 57,310 $ 95,090 Amounts recognized in the balance sheet: Non-current asset $ 19,234 $ 855 Non-current liability $ ( 9,434 ) $ ( 18,615 ) Current liability $ ( 348 ) $ ( 367 ) Amounts in accumulated other comprehensive loss: Unrecognized actuarial loss $ 5,408 $ 30,213 As of September 30, 2022 and 2021, two of our pension plans had project benefit obligations and accumulated benefit obligations in excess of plan assets. Three international plans were overfunded. The following table shows the change in accumulated other comprehensive loss: (in thousands) Year ended September 30, 2022 2021 Accumulated other comprehensive loss, beginning of year $ 30,213 $ 37,175 Recognized during year - net actuarial losses ( 1,421 ) ( 4,135 ) Occurring during year - settlement gain 82 — Occurring during year - net actuarial gains ( 21,253 ) ( 2,640 ) Foreign exchange impact ( 2,213 ) ( 187 ) Accumulated other comprehensive loss, end of year $ 5,408 $ 30,213 In 2022 our actuarial gains were impacted by the change in discount rate from 1.0 % in 2021 to 3.7 % in 2022. In 2021, our net actuarial gains were driven by the asset performance. The following table shows the percentage of total plan assets for each major category of plan assets: September 30, Asset category 2022 2021 Equity securities 33 % 35 % Fixed income securities 33 % 34 % Commodities 1 % 11 % Insurance company funds 10 % 12 % Options 2 % 1 % Cash 21 % 7 % 100 % 100 % We periodically review the pension plans’ investments in the various asset classes. For the CoCreate plan in Germany, assets are actively allocated between equity and fixed income securities to achieve target return. For the other international plans, assets are allocated 100 % to fixed income securities. 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 equity and fixed income securities. In 2022, 2021 and 2020 our actual return on plan assets was $ 2.3 million, $ 7.4 million and $ ( 3.0 ) million, respectively. Based on actuarial valuations and additional voluntary contributions, we contributed $ 3.0 million, $ 3.0 million and $ 2.6 million in 2022, 2021 and 2020, respectively, to the plans. We expect to pay $ 3.1 million in contributions in 2023, of which $ 0.6 million will be paid directly to the plans. As of September 30, 2022, benefit payments expected to be paid over the next ten years are as follows: (in thousands) Future Benefit Payments 2023 $ 3,410 2024 4,068 2025 3,793 2026 3,830 2027 4,216 2028 to 2032 20,680 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 equities and 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. (in thousands) September 30, 2022 Level 1 Level 2 Level 3 Total Fixed income securities: Government $ 20,430 $ — $ — $ 20,430 Corporate investment grade 2,038 — — 2,038 Large capitalization stocks 22,379 — — 22,379 Commodities 599 — — 599 Insurance company funds (1) — 6,823 — 6,823 Options 1,430 — — 1,430 Cash 13,882 — — 13,882 Total plan assets $ 60,758 $ 6,823 $ — $ 67,581 (in thousands) September 30, 2021 Level 1 Level 2 Level 3 Total Fixed income securities: Government $ 24,013 $ — $ — $ 24,013 Corporate investment grade 2,924 — — 2,924 Large capitalization stocks 27,078 — — 27,078 Commodities 8,558 — — 8,558 Insurance company funds (1) — 9,105 — 9,105 Options 1,122 — — 1,122 Cash 5,585 — — 5,585 Total plan assets $ 69,280 $ 9,105 $ — $ 78,385 (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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 15. Fair Value Measurements Money market funds, time deposits and corporate notes/bonds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. Certificates of deposit, commercial paper and certain U.S. government agency securities are classified within Level 2 of the fair value hierarchy. These instruments are valued based on quoted prices in markets that are not active or based on other observable inputs consisting of market yields, reported trades and broker/dealer quotes. The principal market in which we execute our foreign currency forward contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large financial institutions. Our foreign currency forward contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy. Our significant financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and 2021 were as follows: (in thousands) September 30, 2022 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 102,313 $ — $ — $ 102,313 Convertible note — — 2,000 2,000 Forward contracts — 9,058 — 9,058 $ 102,313 $ 9,058 $ 2,000 $ 113,371 Financial liabilities: Forward contracts — 2,908 — 2,908 $ — $ 2,908 $ — $ 2,908 (in thousands) September 30, 2021 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 114,375 $ — $ — $ 114,375 Convertible note — — 2,000 2,000 Equity securities — — 77,540 77,540 Forward contracts — 5,363 — 5,363 $ 114,375 $ 5,363 $ 79,540 $ 199,278 Financial liabilities: Forward contracts — 3,318 — 3,318 $ — $ 3,318 $ — $ 3,318 (1) Money market funds and time deposits. Level 3 Investments Convertible Note In the fourth quarter of 2021, we invested $ 2.0 million in a non-marketable convertible note. This debt security is classified as available-for-sale and is included in Other assets on the Consolidated Balance Sheet. There were no changes in the fair value of this level 3 investment in the twelve months ended September 30, 2022. Non-Marketable Equity Investments The carrying value of our non-marketable equity investments is recorded in Other assets on the Consolidated Balance Sheets and totaled $ 1.0 million as of September 30, 2022 and $ 2.2 million as of September 30, 2021. In 2022 , PTC sold a non-marketable equity investment for $ 4.2 million, which had been held at a cost of $ 1.2 million. The $ 3.0 million gain recognized on the sale is included in Other income, net for the twelve months ended September 30, 2022 Equity Securities As of September 30, 2022 , PTC held no remaining shares in Matterport, Inc., a publicly traded company, as we sold all previously held shares during the three months ended March 31, 2022. The shares sold included those held as of September 30, 2021, as well as additional shares which PTC earned during the second quarter of FY'22 based on contingent earn-outs achieved in January 2022. Shares related to the original investment were restricted from sale until January 2022 (six months after Matterport became a public company). At expiration of this lock-out, we sold all shares held from the original investment for $ 39.1 million at an average price of $ 9.1 per share. In February 2022, we sold all remaining shares held for $ 3.6 million at an average share price of $ 7.6 per share. Due to the decline in the price per share during the first six months of fiscal 2022, we recognized a loss of $ 34.8 million in Other income, net on the Consolidated Statements of Operations. No additional gains or losses were recognized in 2022 and the aggregate realized gain from the original investment of $ 8.7 million was $ 34.0 million. The following table presents changes in fair value of our Level 3 investment in the Matterport, Inc. shares from October 1, 2021 to September 30, 2022: (in thousands) September 30, 2022 Fair Values Balance, October 1, 2021 $ 77,540 Realized loss ( 38,468 ) Sale of investment ( 39,072 ) Balance, September 30, 2022 $ — |
Marketable Securities
Marketable Securities | 12 Months Ended |
Sep. 30, 2022 | |
Marketable Securities [Abstract] | |
Marketable Securities | 16. Marketable Securities We did no t hold any marketable securities as of September 30, 2022 or 2021. In December 2020, we sold all our marketable securities to partially fund the Arena acquisition, resulting in proceeds of $ 56.2 million. Neither gross realized gains nor gross realized losses related to the sale were material. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 17. Derivative Financial Instruments Non-Designated Hedges As of September 30, 2022 and 2021, we had outstanding forward contracts for derivatives not designated as hedging instruments with notional amounts equivalent to the following: September 30, Currency Hedged (in thousands) 2022 2021 Canadian / U.S. Dollar $ 2,731 $ 4,894 Euro / U.S. Dollar 316,869 387,466 British Pound / U.S. Dollar 7,368 23,141 Israeli Shekel / U.S. Dollar 12,052 10,475 Japanese Yen / U.S. Dollar 25,566 46,450 Swiss Franc / U.S. Dollar 25,559 18,039 Swedish Krona / U.S. Dollar 35,713 34,196 Singapore Dollar / U.S. Dollar 3,637 3,498 Chinese Renminbi / U.S. Dollar 23,965 23,297 New Taiwan Dollar / U.S. Dollar 13,906 3,369 Russian Ruble/ U.S. Dollar — 2,614 Korean Won/ U.S. Dollar 4,919 — Danish Krone/ U.S. Dollar 3,192 2,380 Australian Dollar/ U.S. Dollar 3,269 2,086 All other 4,432 2,016 Total $ 483,178 $ 563,921 The following table shows the effect of our non-designated hedges, all of which were forward contracts, on the Consolidated Statements of Operations for the years ended September 30, 2022, 2021 and 2020: (in thousands) Year ended September 30, Location of gain (loss) 2022 2021 2020 Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged Other income, net $ 11,950 $ ( 3,758 ) $ 3,518 Net Investment Hedges As of September 30, 2022 and 2021 , we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following: September 30, Currency Hedged (in thousands) 2022 2021 Euro / U.S. Dollar $ 110,466 $ 128,103 The following table shows the effect of our derivative instruments designated as net investment hedges, all of which were forward contracts, on the Consolidated Statements of Operations for the years ended September 30, 2022, 2021, and 2020 : (in thousands) Year ended September 30, Location of gain (loss) 2022 2021 2020 Gain (loss) recognized in OCI—effective portion OCI $ ( 1,478 ) $ 695 $ ( 5,483 ) Gain (loss) reclassified from OCI—effective portion OCI $ ( 17,466 ) $ 2,723 $ 109 Gain recognized —portion excluded from effectiveness testing Other income, net $ 1,862 $ 1,249 $ 3,506 As of September 30, 2022 , we estimate that all amounts reported in Accumulated other comprehensive loss will be applied against exposed balance sheet accounts upon translation within the next three months . The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets: (in thousands) Fair Value of Derivatives Fair Value of Derivatives September 30, 2022 2021 2022 2021 Derivative assets: (1) Forward contracts $ 1,960 $ 1,641 $ 7,098 $ 3,722 Derivative liabilities: (2) Forward contracts $ — $ — $ 2,908 $ 3,318 (1) As of September 30, 2022 and 2021, current derivative assets of $ 9.1 million and $ 5.4 million, respectively, are recorded in Other current assets on the Consolidated Balance Sheets. (2) As of September 30, 2022 and 2021, current derivative liabilities of $ 2.9 million and $ 3.3 million, respectively, are recorded in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. Offsetting Derivative Assets and Liabilities We have entered into master netting arrangements that allow net settlements under certain conditions. Although netting is permitted, it is currently our policy and practice to record all derivative assets and liabilities on a gross basis in the Consolidated Balance Sheets. The following table sets forth the offsetting of derivative assets as of September 30, 2022: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of September 30, 2022 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Forward Contracts $ 9,058 $ — $ 9,058 $ ( 2,908 ) $ — $ 6,150 The following table sets forth the offsetting of derivative liabilities as of September 30, 2022: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of September 30, 2022 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Forward Contracts $ 2,908 $ — $ 2,908 $ ( 2,908 ) $ — $ — Net gains and losses on foreign currency exposures, including realized and unrealized gains and losses on forward contracts, included in Other income, net, were net losses of $ 0.9 million, $ 8.0 million and $ 1.7 million in 2022, 2021 and 2020, respectively. Net realized and unrealized gains and losses on forward contracts included in Other income, net were a net gain of $ 16.4 million and $ 7.0 million in 2022 and 2020, and net loss of $ 4.9 million in 2021 . |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 18. Segment and Geographic 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 Chief Executive Officer. We have two operating and reportable segments: (1) Software Products, which includes license, subscription and related support revenue (including updates and technical support) for all our products; and (2) Professional Services, which includes consulting, implementation and training services. We do not allocate sales and marketing or general and administrative expense to our operating segments as these activities are managed on a consolidated basis. Additionally, segment profit does not include stock-based compensation, amortization of intangible assets, restructuring charges and certain other identified costs that we do not allocate to the segments for purposes of evaluating their operational performance. The revenue and profit attributable to our operating segments are summarized below. We do not produce or report asset information by reportable segment. (in thousands) Year ended September 30, 2022 2021 2020 Software Products Revenue $ 1,770,253 $ 1,649,341 $ 1,314,617 Operating costs (1) 494,035 451,734 393,803 Profit 1,276,218 1,197,607 920,814 Professional Services Revenue 163,094 157,818 143,798 Operating costs (2) 140,470 135,981 128,678 Profit 22,624 21,837 15,120 Total segment revenue 1,933,347 1,807,159 1,458,415 Total segment costs 634,505 587,715 522,481 Total segment profit 1,298,842 1,219,444 935,934 Unallocated operating expenses: (3) Sales and marketing expenses 435,780 464,067 398,100 General and administrative expenses 130,870 120,954 114,386 Intangibles amortization 60,548 59,165 56,104 Restructuring and other charges, net 36,234 2,211 32,716 Stock-based compensation 174,863 177,289 115,149 Other unallocated operating expenses (4) 13,185 15,010 8,616 Total operating income 447,362 380,748 210,863 Interest expense ( 54,268 ) ( 50,478 ) ( 76,428 ) Other income, net 4,004 61,485 271 Income before income taxes $ 397,098 $ 391,755 $ 134,706 (1) Operating costs for the Software Products segment include all costs of software revenue and research and development costs, excluding stock-based compensation and intangible amortization. Operating costs for the Software Products segment include depreciation of $ 4.9 million, $ 4.0 million and $ 4.2 million in 2022, 2021 and 2020, respectively. (2) Operating costs for the Professional Services segment include all costs of professional services revenue, excluding stock-based compensation, and intangible amortization. The Professional Services segment includes depreciation of $ 0.9 million, $ 1.1 million and $ 1.1 million in 2022, 2021 and 2020, respectively. (3) Unallocated departments include depreciation of $ 21.4 million, $ 21.0 million and $ 19.4 million in 2022, 2021 and 2020, respectively. (4) Other unallocated operating expenses include acquisition and transaction-related costs. For 2022, 2021 and 2020, w e reported revenue by the following three product groups: (in thousands) Year ended September 30, 2022 2021 2020 Digital Thread - Core $ 1,318,857 $ 1,257,817 $ 1,025,709 Digital Thread - Growth 279,566 273,949 215,353 Digital Thread - FSG 251,621 233,268 210,101 Digital Thread (Total) 1,850,044 1,765,034 1,451,163 Velocity 83,303 42,125 7,252 Total revenue $ 1,933,347 $ 1,807,159 $ 1,458,415 Product lifecycle management (PLM) 1,137,016 1,012,120 807,016 Computer-aided design (CAD) 796,331 795,039 651,399 Total revenue $ 1,933,347 $ 1,807,159 $ 1,458,415 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 region. Intercompany sales and transfers between geographic areas are accounted for at prices that are designed to be representative of unaffiliated party transactions. Our material long-lived assets primarily reside in the United States in 2022, 2021 and 2020 . Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below. (in thousands) Year ended September 30, 2022 2021 2020 Revenue: Americas (1) $ 895,095 $ 766,021 $ 649,383 Europe (2) 714,216 722,977 543,779 Asia Pacific 324,036 318,161 265,253 Total revenue $ 1,933,347 $ 1,807,159 $ 1,458,415 (1) Includes revenue in the United States totaling $ 864.7 million, $ 741.3 million, and $ 621.8 million for 2022, 2021 and 2020, respectively. (2) Includes revenue in Germany totaling $ 318.5 million, $ 290.7 million, and $ 198.7 million for 2022, 2021 and 2020 , respectively. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 19. Leases Our operating leases expire at various dates through 2037 and are primarily for office space, automobiles, servers, and office equipment. Our headquarters are located at 121 Seaport Boulevard, Boston, Massachusetts (the Boston lease). The Boston lease is for approximately 250,000 square feet and runs through June 30, 2037. Base rent for the first year of the lease was $ 11.0 million and increases by $ 1 per square foot per year thereafter ($ 0.3 million per year). Base rent first became payable on July 1, 2020. In addition to the base rent, we are required to pay our pro rata portions of building operating costs and real estate taxes (together, “Additional Rent”). Annual Additional Rent is estimated to be approximately $ 7.1 million. The lease provides for $ 25 million in landlord funding for leasehold improvements ($ 100 per square foot). The leasehold improvement funding provision was fully utilized by us and was reflected as a derecognition adjustment to the right-of-use asset. In February 2019, we subleased a portion of the Boston location through June 30, 2022, and received approximately $ 9.1 million in sublease income over the term of the sublease. In March 2022, we extended the sublease through June 30, 2023 and we will receive $ 2.9 million in sublease income over the term of the extension. The components of lease cost reflected in the Consolidated Statement of Operations for the year ended September 30, 2022 were as follows: (in thousands) Year ended September 30, 2022 Operating lease cost $ 34,346 Short-term lease cost 2,653 Variable lease cost 10,095 Sublease income ( 4,600 ) Total lease cost $ 42,494 Supplemental cash flow and right-of use assets information for the year ended September 30, 2022 was as follows: (in thousands) Year ended September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 38,709 Financing cash flows from operating leases $ 297 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 15,431 Financing leases $ — Supplemental balance sheet information related to the leases as of September 30, 2022 was as follows: As of September 30, 2022 Weighted-average remaining lease term - operating leases 11.8 years Weighted-average remaining lease term - financing leases 2 years Weighted-average discount rate - operating leases 5.4 % Weighted-average discount rate - financing leases 3.0 % Maturities of lease liabilities as of September 30, 2022 are as follows: (in thousands) Operating Leases 2022 $ 31,612 2023 26,907 2024 23,495 2025 19,487 2026 16,662 Thereafter 143,236 Total future lease payments 261,399 Less: imputed interest ( 71,824 ) Total $ 189,575 As of September 30, 2022 we had operating leases that had not yet commenced. The leases will commence in FY'23 with a lease term of 10 years and we will make future lease payments of approximately $ 11.6 million. Exited (Restructured) Facilities As of September 30, 2022, we have net liabilities of $ 0.3 million related to excess facilities (compared to $ 3.6 million at September 30, 2021), representing lease obligations classified as short term. In determining the amount of right-of-use assets for restructured facilities, we are required to estimate such factors as future vacancy rates, the time required to sublet properties, and sublease rates. Updates to these estimates may result in revisions to the value of right-of-use assets recorded. The amounts recorded are based on the net present value of estimated sublease income. As of September 30, 2022 , There was no committed sublease income included in the right-of-use assets for exited facilities and there was no uncommitted sublease income. As a result of changes in our sublease income assumptions and an incremental obligation to exit a portion of our former headquarters facility early in the year ended September 30, 2022, we recorded a facility impairment charge of $ 1.3 million. In the year ended September 30, 2022, we made payments of $ 2.0 million related to lease costs for exited facilities. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
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 non-monetary 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 Other income, net in the Consolidated Statements of Operations. |
Revenue Recognition | Revenue Recognition Nature of Products and Services Our sources of revenue include: (1) subscriptions, (2) perpetual licenses, (3) support for perpetual licenses and (4) professional services. Revenue is derived from the licensing of computer software products and from related support and/or professional services contracts. In accordance with ASC 606, Revenue from Contracts with Customers , revenue is recognized when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these products or services. To achieve the core principle of this standard, we apply the following five steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to performance obligations in the contract, and (5) recognize revenue when or as we satisfy a performance obligation. We enter into contracts that include combinations of licenses, support and professional services, each of which are accounted for as separate performance obligations with differing revenue recognition patterns referenced below. Performance Obligation When Performance Obligation is Typically Satisfied Term-based subscriptions On-premises software licenses Point in Time: Upon the later of when the software is made available or the subscription term commences Support and cloud-based offerings (including SaaS) Over Time: Ratably over the contractual term; commencing upon the later of when the software is made available or the subscription term commences Perpetual software licenses Point in Time: when the software is made available Support for perpetual software licenses Over Time: Ratably over the contractual term Professional services Over Time: As services are provided Judgments and Estimates Our contracts with customers for subscriptions typically include commitments to transfer term-based, on-premises software licenses bundled with support and/or cloud services. On-premises software is determined to be a distinct performance obligation from support which is sold for the same term of the subscription. For subscription arrangements which include cloud services and on-premises licenses, we assess whether the cloud component is highly interrelated with the on-premises term-based software licenses. Other than a limited population of subscriptions, the cloud component is not currently deemed to be interrelated with the on-premises term software and, as a result, cloud services are accounted for as a distinct performance obligation from the software and support components of the subscription. Judgment is required to allocate the transaction price to each performance obligation. We use the estimated standalone selling price method to allocate the transaction price for items that are not sold separately. The estimated standalone selling price is determined using all information reasonably available to us, including market conditions and other observable inputs. The corresponding revenues are recognized as the related performance obligations are satisfied. Where subscriptions include on-premises software and support only, we determined th at approximately 55 % of the estimated standalone selling price for subscriptions is attributable to software licenses and approximately 45 % i s attributable to support for those licenses. Some of our subscription offerings include a combination of on-premises and cloud-based technology. In such cases, the cloud-based technology is considered distinct and receives an allocation of approximately 5 % to 50 % of the estimated standalone selling price of the subscription. The amounts allocated to cloud are based on assessment of the relative value of the cloud functionality in the subscription, with the remaining amounts allocated between software and support. Our multi-year, non-cancellable on-premises subscription contracts provide customers with an annual right to exchange software within the original subscription with other software. Although the exchange right is limited to software products within a similar product grouping, the exchange right is not limited to products with substantially similar features and functionality as those originally delivered. We determined that this right to exchange previously delivered software for different software represents variable consideration to be accounted for as a liability. We have identified a standard portfolio of contracts with common characteristics and applied the expected value method of determining variable consideration associated with this right. Additionally, where there are isolated situations that are outside of the standard portfolio of contracts due to contract size, longer contract duration, or other unique contractual terms, we use the most likely amount method to determine the amount of variable consideration. In both circumstances, the variable consideration included in the transaction price is constrained to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. As of September 30, 2022 and 2021, the total liability was $ 34.2 million and $ 40.3 million, respectively, primarily associated with the annual right to exchange on-premises subscription software. Practical Expedients We have elected certain practical expedients associated with our revenue recognition policy. We do not account for significant financing components if the period between revenue recognition and when the customer pays for the products or services is one year or less. Additionally, we recognize revenue equal to the amount we have a right to invoice when the amount corresponds directly with the value to the customer of our performance to date. |
Cash Equivalents | 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. |
Marketable Securities | Marketable Securities As of September 30, 2022, our investment portfolio consisted of certificates of deposit, commercial paper, corporate notes/bonds and government securities that had a maximum maturity of three years. In December 2020, we sold all our marketable securities to partially fund the Arena acquisition, resulting in proceeds of $ 56.2 million. Neither gross realized gains nor gross realized losses related to the sale were material. |
Equity Securities | Equity Securities On July 22, 2021, a company in which we were a preferred equity investor, Matterport, Inc., completed a business combination with a public company. The carrying value of our investment, which was classified as a non-marketable equity investment, was approximately $ 8.7 million prior to the business combination. Our preferred shares were converted into common shares of Matterport. As of September 30, 2022, PTC held no shares in Matterport, as we sold all previously held shares during the three months ended March 31, 2022. The shares sold included those held as of September 30, 2021, as well as additional shares which PTC earned during the second quarter of FY'22 based on contingent earn-outs achieved in January 2022. Shares related to the original investment were restricted from sale until January 2022 (six months after Matterport became a public company). At expiration of this lock-out, we sold all shares held from the original investment for $ 39.1 million at an average price of $ 9.1 per share. In February 2022, we sold all remaining shares for $ 3.6 million at an average share price of $ 7.6 per share. Due to the decline in the price per share during the first six months of fiscal 2022, we recognized a net loss of $ 34.8 million in Other income, net on the Consolidated Statements of Operations. No additional gains or losses have been recognized for 2022 and the aggregate realized gain from the original investment of $ 8.7 million was $ 34.0 million. The fair value of the Matterport shares as of September 30, 2021 was $ 77.5 million and was determined using the closing price of Matterport's common stock as of September 30, 2021, less a temporary discount for lack of marketability. For the year ended September 30, 2021, we recorded an unrealized gain of $ 68.8 million on the appreciation of the value of the shares in Other income, net on the Consolidated Statement of Operations. We also have non-marketable equity investments that we account for at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar investments off the same issuer. We monitor non-marketable equity investments for events that could indicate that the investments are impaired, such as deterioration in the issuer's financial condition and business forecasts and lower valuation in recent or proposed financings. Changes in fair value of non-marketable equity investments are recorded in Other income, net on the Consolidated Statements of Operations. In the years ended September 30, 2022 and 2021, we did no t record any impairment charges for our investments. The carrying value of our non-marketable equity investments is recorded in Other assets on the Consolidated Balance Sheets and totaled $ 1.0 million and $ 2.2 million as of September 30, 2022 and 2021, respectively. |
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 many geographically diverse customers dispersed across many industries. No individual customer comprised more than 10% of our trade accounts receivable as of September 30, 2022 or 2021 or more than 10% of our revenue for the years ended September 30, 2022, 2021 or 2020 . |
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. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
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. Effective October 1, 2020, we adopted ASC 326, Financial Instruments—Credit Losses, which replaced the incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. 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 $ 0.4 million, $ 0.3 million and $ 0.5 million as of September 30, 2022, 2021 and 2020, respectively. Uncollectible trade accounts receivable written-off, net of recoveries, were $ 0.4 million, $ 0.1 million and $ 0.2 million in 2022, 2021 and 2020, respectively. Net bad debt expense was $ 0.5 million in 2022, net bad debt recovery was $ 0.2 million in 2021 and net bad debt expense was $ 0.0 million in 2020 , and is included in General and administrative expenses in the accompanying Consolidated Statements of Operations. |
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. Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates. Our most significant foreign currency exposures relate to Western European countries, Japan, China and India. Our foreign currency risk management strategy is principally designed to mitigate the future potential financial impact of changes in the U.S. dollar value of anticipated transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. We enter into derivative transactions, specifically foreign currency forward contracts and options, to manage the exposures to foreign currency exchange risk to reduce earnings volatility. We do not enter into derivatives transactions for trading or speculative purposes. For a description of our non-designated hedge and net investment hedge activity see Note 17. Derivative Financial Instruments . Non-Designated Hedges We hedge our net foreign currency monetary assets and liabilities primarily resulting from foreign currency denominated receivables and payables with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These contracts have maturities of up to approximately four months . The majority of our foreign currency forward contracts are not designated 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 or losses on the underlying foreign-denominated balance are offset by the loss or gain on the forward contract and are included in Other income, net. Net Investment Hedges We translate balance sheet accounts of subsidiaries with foreign functional currencies into U.S. Dollars using the exchange rate at each balance sheet date. Resulting translation adjustments are reported as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheet. We designate certain foreign exchange forward contracts as net investment hedges against exposure on translation of balance sheet accounts of Euro functional subsidiaries. Net investment hedges partially offset the impact of foreign currency translation adjustment recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheet. All foreign exchange forward contracts are carried at fair value on the Consolidated Balance Sheet and the maximum duration of foreign exchange forward contracts is approximately three months . Net investment hedge relationships are designated at inception, and effectiveness is assessed retrospectively on a quarterly basis using the net equity position of Euro functional subsidiaries. As the forward contracts are highly effective in offsetting exchange rate exposure, we record changes in these Unrealized gain (loss) on net investment hedges in Accumulated other comprehensive loss and subsequently reclassify them to Foreign currency translation adjustment in Accumulated other comprehensive loss at the time of forward contract maturity. Changes in the fair value of foreign exchange forward contracts due to changes in time value are excluded from the assessment of effectiveness. Our derivatives are not subject to any credit contingent features. We manage credit risk with counterparties by trading among several counterparties, and we review our counterparties’ credit at least quarterly. |
Leases | Leases We adopted ASC 842, Leases effective October 1, 2019. ASC 842 requires a modified retrospective transition method that could either be applied at the earliest comparative period in the financial statements or in the period of adoption. We elected to use the period of adoption (October 1, 2019) transition method and therefore did not recast prior periods. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets and Operating lease obligations on our Consolidated Balance Sheets. Our operating leases are primarily for office space, cars, servers, and office equipment. We made an election not to separate lease components from non-lease components for office space, servers and office equipment. We combine fixed payments for non-lease components with lease payments and account for them together as a single lease component which increases the amount of our lease assets and liabilities. Finance leases are included in Property and equipment, Accrued expenses and Other current liabilities, and Other liabilities on our Consolidated Balance Sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the leases. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term as that of the lease payments at the commencement date. The right-of-use assets include any lease payments made and exclude lease incentives received. Operating lease expense is recognized on a straight-line basis over the lease term. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We generally use the base non-cancellable lease term when determining the lease assets and liabilities. Certain lease agreements contain variable payments, which are expensed as incurred and not included in the lease assets and liabilities. These variable payments include insurance, taxes, consumer price index payments, and payments for maintenance and utilities. Our operating leases expire at various dates through 2037 . |
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 twelve 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 term 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. Our research and development expenses consist principally of salaries and benefits, costs of computer equipment, and facility expenses. 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 2022, 2021 or 2020. We purchased software of $ 6.0 million and $ 0.6 million in 2022 and 2021, respectively. Additionally, we acquired capitalized software through business combinations (for further detail, see Note 6. Acquisitions and Disposition of Business ). These assets are included in Intangible assets in the accompanying Consolidated Balance Sheets. |
Business Combinations | Business Combinations We allocate the purchase price of acquisitions to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value. Goodwill is measured as the excess of the purchase price over the value of net identifiable assets acquired. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. Any adjustments to estimated fair value are recorded to goodwill, provided that we are within the measurement period (up to one year from the acquisition date) and that we continue to collect information to determine estimated fair value. Subsequent to the measurement period or our final determination of estimated fair value, whichever comes first, adjustments are recorded in the Consolidated Statements of Operations. |
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 value 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 segment basis, when applicable, that could trigger an impairment review include significant under-performance 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. Our annual goodwill impairment test is based on either a quantitative or qualitative assessment. A quantitative assessment compares the fair value of the reporting unit 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 estimated 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 and operating plans; and industry data. A qualitative assessment is designed to determine whether we believe it is more likely than not that the fair values of our reporting units exceed their carrying values. Qualitative assessment includes a review of qualitative factors, including company-specific (financial performance and long-range plans), industry, and macroeconomic factors, and a consideration of the fair value of each reporting unit at the last valuation date. We completed our annual goodwill impairment review as of June 30, 2022, which consisted of a qualitative assessment of our Software Products segment and a quantitative assessment of our Professional Services segment in conjunction with the sale of a portion of that business to ITC Infotech. Our qualitative assessment for Software Products included company-specific (e.g., financial performance and long-range plans), industry, and macroeconomic factors, as well as consideration of the fair value of each reporting unit relative to its carrying value at the last valuation date (June 27, 2020). Based on our qualitative assessment, we believe it is more likely than not that the fair value of our Software Products reporting unit exceeds its carrying value and no further impairment testing is required. Our quantitative assessment for the Professional Services segment compared the fair value of the reporting unit to its carrying value. We estimated the fair value of the reporting unit using a discounted cash flow valuation model. This model requires estimates of future revenues, profits, capital expenditures, working capital, and a terminal value based on a residual cash flow valuation model. We estimated this amount by evaluating historical trends, current budgets and operating plans, including consideration of the completed transaction with ITC Infotech. Based on a comparison of the estimated fair value to the carrying value of the Professional Services reporting unit as of June 30, 2022, no impairment was required. Through September 30, 2022, there were no events or changes in circumstances that indicated that the carrying values of goodwill or acquired intangible assets may not be recoverable. 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 16 years, customer lists are amortized over periods up to 13 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. An 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 $ 8.6 million, $ 7.1 million and $ 3.8 million in 2022, 2021 and 2020 , respectively and are included in sales and marketing expenses in the accompanying Consolidated Statements of Operations. |
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 (benefit) for income taxes in the Consolidated Statements of Operations. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of Net income and Other comprehensive income (loss), which includes foreign currency translation adjustments, changes in unrecognized actuarial gains and losses (net of tax) related to pension benefits, unrealized gains and losses on hedging instruments and unrealized gains and losses on marketable securities. 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, 2022, was comprised of the following: cumulative translation adjustment losses of $ 160.2 million, unrecognized actuarial losses related to pension benefits of $ 5.4 million ($ 3.9 million net of tax), and accumulated net gains from net investment hedges of $ 16.9 million ($ 10.6 million net of tax). As of September 30, 2021, Accumulated other comprehensive loss was comprised of the following: cumulative translation adjustment losses of $ 67.5 million, unrecognized actuarial losses related to pension benefits of $ 30.2 million ($ 21.5 million net of tax), and accumulated net losses from net investment hedges of $ 6.5 million ($ 6.5 million net of tax). |
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. 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. Anti-dilutive shares excluded from the calculations of diluted EPS were immaterial in the years ended September 30, 2022 and 2021. The following table presents the calculation for both basic and diluted EPS: (in thousands, except per share data) Year ended September 30, 2022 2021 2020 Net income $ 313,081 $ 476,923 $ 130,695 Weighted average shares outstanding 117,194 116,836 115,663 Dilutive effect of employee stock options, restricted shares and restricted stock units 1,039 1,531 604 Diluted weighted average shares outstanding 118,233 118,367 116,267 Earnings per share—Basic $ 2.67 $ 4.08 $ 1.13 Earnings per share—Diluted $ 2.65 $ 4.03 $ 1.12 |
Stock-Based Compensation | Stock-Based Compensation We measure the compensation cost of employee services received in exchange for an award of equity 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 12. Equity Incentive Plans for a description of the types of equity awards granted, the compensation expense related to such awards and detail of such awards outstanding. See Note 8. Income Taxes for detail of the tax benefit related to stock-based compensation recognized in the Consolidated Statements of Operations. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements Intangibles—Goodwill and Other—Internal-Use Software In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the requirements for capitalizing implementation costs in cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted the new standard prospectively effective October 1, 2020. As a result, we are required to capitalize certain costs related to the implementation of cloud computing arrangements. Capitalized costs related to clou d computing arrangements, which are included in Other assets on the Consolidated Balance Sheets, were $ 14.3 million and $ 2.8 million a s of September 30, 2022 and September 30, 2021, respectively, Financial Instruments — Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC 326), which, along with subsequent amendments, replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when recording credit loss estimates. We adopted the new standard effective October 1, 2020, with no impact on our consolidated financial statements. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) on Simplifying the Accounting for Income Taxes. The decisions reflected in ASU 2019-12 update specific areas of ASC 740, Income Taxes, to reduce complexity while maintaining or improving the usefulness of the information provided to users of financial statements. The new standard became effective for us in the first quarter of 2022 ending December 31, 2021 and did not have a material impact on our consolidated financial statements. Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) on Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to 1) recognition of an acquired contract asset and liability, and 2) payment terms and their effect on subsequent revenue recognized by the acquirer. We adopted ASU 2021-08 early as of the third quarter of 2022 and applied it to our acquisition of Intland Software, which was completed in the quarter. The adoption of ASU 2021-08 did not have a material impact on our consolidated financial statements. Refer to Note 6. Acquisitions and Disposition of Business for additional discussion regarding the accounting for the acquisition of Intland Software. Pending Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. ASU 2020-04 is effective for all entities upon issuance through December 31, 2022. We are still evaluating the impact, but do not expect the standard to have a material impact on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Earnings Per Share Basic And Diluted | The following table presents the calculation for both basic and diluted EPS: (in thousands, except per share data) Year ended September 30, 2022 2021 2020 Net income $ 313,081 $ 476,923 $ 130,695 Weighted average shares outstanding 117,194 116,836 115,663 Dilutive effect of employee stock options, restricted shares and restricted stock units 1,039 1,531 604 Diluted weighted average shares outstanding 118,233 118,367 116,267 Earnings per share—Basic $ 2.67 $ 4.08 $ 1.13 Earnings per share—Diluted $ 2.65 $ 4.03 $ 1.12 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | Contract Assets and Contract Liabilities (in thousands) September 30, 2022 2021 Contract asset $ 21,096 $ 12,934 Deferred revenue $ 520,333 $ 497,677 |
Disaggregation of Revenue | Disaggregation of Revenue (in thousands) Year ended September 30, 2022 2021 2020 Total recurring revenue $ 1,736,188 $ 1,616,328 $ 1,281,949 Perpetual license 34,065 33,013 32,668 Professional services 163,094 157,818 143,798 Total revenue $ 1,933,347 $ 1,807,159 $ 1,458,415 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes restructuring accrual activity for the three years ended September 30, 2022: (in thousands) Employee severance Facility closures Consolidated total Balance, September 30, 2019 $ 298 $ 30,788 $ 31,086 ASC 842 adoption — ( 16,462 ) ( 16,462 ) Charges (credits) to operations, net 30,690 ( 4,263 ) 26,427 Cash disbursements ( 27,256 ) ( 4,246 ) ( 31,502 ) Other non-cash — 164 164 Foreign exchange impact 260 14 274 Balance, September 30, 2020 3,992 5,995 9,987 Charges to operations, net 1,887 249 2,136 Cash disbursements ( 3,925 ) ( 2,756 ) ( 6,681 ) Foreign exchange impact 27 17 44 Balance, September 30, 2021 1,981 3,505 5,486 Charges (credits) to operations, net 32,971 ( 561 ) 32,410 Cash disbursements ( 34,023 ) ( 2,355 ) ( 36,378 ) Foreign exchange impact ( 583 ) — ( 583 ) Balance, September 30, 2022 $ 346 $ 589 $ 935 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following: (in thousands) September 30, 2022 2021 Computer hardware and software $ 364,762 $ 352,704 Furniture and fixtures 29,744 30,568 Leasehold improvements 95,383 94,959 Gross property and equipment 489,889 478,231 Accumulated depreciation and amortization ( 391,788 ) ( 377,994 ) Net property and equipment $ 98,101 $ 100,237 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Acquired Intangible Assets | Goodwill and acquired intangible assets consisted of the following: (in thousands) September 30, 2022 September 30, 2021 Gross Accumulated Net Book Gross Accumulated Net Book Goodwill (not amortized) $ 2,353,654 $ 2,191,887 Intangible assets with finite lives (amortized) (1) : Purchased software $ 502,859 $ 355,857 $ 147,002 $ 483,771 $ 338,542 $ 145,229 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 594,970 369,390 225,580 574,516 350,648 223,868 Trademarks and trade names 27,546 17,410 10,136 26,906 17,036 9,870 Other 3,766 3,766 — 4,000 4,000 — $ 1,152,018 $ 769,300 $ 382,718 $ 1,112,070 $ 733,103 $ 378,967 Total goodwill and acquired intangible assets $ 2,736,372 $ 2,570,854 (1) The weighted-average useful lives of purchased software, customer lists and relationships, and trademarks and trade names with a remaining net book value are 11 years, 11 years, and 12 years, respectively. |
Schedule of Changes in Goodwill by Reportable Segment | Changes in goodwill presented by reportable segment were as follows: (in thousands) Software Professional Total Balance, September 30, 2020 $ 1,583,316 $ 42,470 $ 1,625,786 Arena acquisition 563,620 — 563,620 Other acquisitions 181 400 581 Foreign currency translation adjustments 1,851 49 1,900 Balance, September 30, 2021 $ 2,148,968 $ 42,919 $ 2,191,887 Intland Software acquisition 240,971 — 240,971 Other acquisitions 691 — 691 Divestiture of business — ( 32,992 ) ( 32,992 ) Foreign currency translation adjustments ( 46,611 ) ( 292 ) ( 46,903 ) Balance, September 30, 2022 $ 2,344,019 $ 9,635 $ 2,353,654 |
Schedule of Aggregate Amortization Expense for Intangible Assets with Finite Lives | The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2022, 2021 and 2020 was reflected in our Consolidated Statements of Operations as follows: (in thousands) Year ended September 30, 2022 2021 2020 Amortization of acquired intangible assets $ 34,970 $ 29,396 $ 28,713 Cost of software revenue 25,578 29,769 27,391 Total amortization expense $ 60,548 $ 59,165 $ 56,104 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary Of Income Before Income Taxes | Our income before income taxes consisted of the following: (in thousands) Year ended September 30, 2022 2021 2020 Domestic $ 97,460 $ 41,199 $ ( 73,865 ) Foreign 299,638 350,556 208,571 Total income before income taxes $ 397,098 $ 391,755 $ 134,706 |
Schedule Of Provision For (Benefit From) Income Taxes | Our provision (benefit) for income taxes consisted of the following: (in thousands) Year ended September 30, 2022 2021 2020 Current: Federal $ 767 $ 4,774 $ 2,187 State 6,675 1,609 1,266 Foreign 33,612 66,554 25,199 41,054 72,937 28,652 Deferred: Federal 25,730 ( 152,311 ) ( 26,811 ) State ( 3,177 ) ( 27,228 ) ( 4,063 ) Foreign 20,410 21,434 6,233 42,963 ( 158,105 ) ( 24,641 ) Provision (benefit) for income taxes $ 84,017 $ ( 85,168 ) $ 4,011 |
Summary Of Federal Income Tax Rate And Effective Income Tax Rate | Taxes computed at the statutory federal income tax rates are reconciled to the provision (benefit) for income taxes as follows: (in thousands) Year ended September 30, 2022 2021 2020 Statutory federal income tax rate $ 83,391 21 % $ 82,268 21 % $ 28,288 21 % Change in valuation allowance — — ( 134,695 ) ( 34 )% ( 16,489 ) ( 12 )% State income taxes, net of federal tax benefit 6,518 2 % ( 28,768 ) ( 8 )% ( 2,998 ) ( 2 )% Federal research and development credits ( 7,477 ) ( 2 )% ( 5,764 ) ( 2 )% ( 5,483 ) ( 4 )% Uncertain tax positions 2,418 1 % 3,398 1 % 3,072 2 % Foreign tax credit ( 9,078 ) ( 2 )% ( 35,368 ) ( 9 )% — — Foreign rate differences ( 8,982 ) ( 2 )% ( 34,584 ) ( 9 )% ( 22,074 ) ( 16 )% Foreign tax on U.S. provision 9,078 2 % 5,931 2 % 4,523 3 % Excess tax benefits from restricted stock ( 8,278 ) ( 2 )% ( 6,141 ) ( 2 )% ( 1,743 ) ( 1 )% Audits and settlements — — 33,370 9 % — — U.S. permanent items 15,304 3 % 18,389 5 % 6,590 5 % Base Erosion Anti-Abuse Tax (BEAT) — — 2,936 1 % ( 1,759 ) ( 1 )% GILTI, net of foreign tax credits 2,705 1 % 18,217 4 % 14,899 11 % Foreign-Derived Intangible Income (FDII) ( 6,848 ) ( 2 )% ( 4,428 ) ( 1 )% ( 2,461 ) ( 2 )% Sale of a portion of the PLM services business 6,844 2 % — — — — Other, net ( 1,578 ) ( 1 )% 71 — ( 354 ) ( 1 )% Provision (benefit) for income taxes $ 84,017 21 % $ ( 85,168 ) ( 22 )% $ 4,011 3 % |
Schedule Of Deferred Tax Assets And Liabilities | The significant temporary differences that created deferred tax assets and liabilities are shown below: (in thousands) September 30, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 40,419 $ 65,383 Foreign tax credits 14,527 36,287 Capitalized research and development 23,274 27,546 Pension benefits 7,639 14,097 Prepaid expenses 15,886 12,540 Deferred revenue 2,146 2,274 Stock-based compensation 19,486 15,822 Other reserves not currently deductible 14,689 16,796 Amortization of intangible assets 130,825 147,385 Research and development and other tax credits 78,862 74,846 Lease liabilities 46,672 51,471 Fixed assets 78,249 53,025 Capital loss carryforward 3,955 35,156 Other 1,256 2,269 Gross deferred tax assets 477,885 554,897 Valuation allowance $ ( 22,283 ) ( 52,085 ) Total deferred tax assets 455,602 502,812 Deferred tax liabilities: Acquired intangible assets not deductible $ ( 118,360 ) ( 108,746 ) Lease assets ( 36,940 ) ( 37,273 ) Pension prepayments ( 2,622 ) ( 2,834 ) Deferred revenue ( 35,193 ) ( 2,662 ) Depreciation ( 6,937 ) ( 7,121 ) Unbilled accounts receivable - ( 6,391 ) Deferred income ( 5,991 ) ( 21,744 ) Prepaid commissions ( 13,356 ) ( 16,990 ) Other ( 8,508 ) ( 5,427 ) Total deferred tax liabilities ( 227,907 ) ( 209,188 ) Net deferred tax assets $ 227,695 $ 293,624 |
Summary Of Valuation Allowance | The changes to the valuation allowance were primarily due to the following: (in thousands) Year ended September 30, 2022 2021 2020 Valuation allowance, beginning of year $ 52,085 $ 205,423 $ 177,663 Net release of valuation allowance (1) — ( 134,235 ) — Net increase (decrease) in deferred tax assets with a full valuation allowance (2) ( 29,802 ) ( 19,103 ) 27,760 Valuation allowance, end of year $ 22,283 $ 52,085 $ 205,423 (1) In 2021, this is attributable to the release in the United States. (2) In 2022, this change included the loss of foreign attributes upon liquidation of a foreign subsidiary. In 2021, this change includes the loss of state attributes upon merger of two wholly-owned subsidiaries. In 2020, this change is largely attributed to the Onshape acquisition, the adoption of ASC 842 and the impact to the change in scheduling of the reversal of existing temporary differences. |
Schedule Of Unrecognized Tax Benefit | Year ended September 30, Unrecognized tax benefits (in thousands) 2022 2021 2020 Unrecognized tax benefit, beginning of year $ 21,166 $ 16,107 $ 11,484 Tax positions related to current year: Additions 3,144 4,844 2,173 Tax positions related to prior years: Additions 785 30,130 2,452 Reductions ( 1,172 ) ( 478 ) ( 2 ) Settlements — ( 29,437 ) — Unrecognized tax benefit, end of year $ 23,923 $ 21,166 $ 16,107 |
Summary Of Income Tax Examinations Years | A s of September 30, 2022 , we remained subject to examination in the following major tax jurisdictions for the tax years indicated: Major Tax Jurisdiction Open Years United States 2018 through 2022 Germany 2015 through 2022 France 2019 through 2022 Japan 2017 through 2022 Ireland 2018 through 2022 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowing Obligations | As of September 30, 2022 and 2021, we had the following long-term debt obligations: (in thousands) September 30, 2022 2021 4.000% Senior notes due 2028 $ 500,000 $ 500,000 3.625% Senior notes due 2025 500,000 500,000 Credit facility revolver (1) 359,000 450,000 Total debt 1,359,000 1,450,000 Unamortized debt issuance costs for the senior notes (2) ( 8,372 ) ( 10,529 ) Total debt, net of issuance costs (3) $ 1,350,628 $ 1,439,471 (1) Unamortized debt issuance costs related to the credit facility were $ 2.7 million and $ 3.8 million as of September 30, 2022 and 2021, respectively, and were included in Other assets on the Consolidated Balance Sheets. (2) Of the $ 14.1 million in financing costs incurred in connection with the issuance of the 2028 and 2025 notes, unamortized debt issuance costs were $ 8.4 million and $ 10.5 million as of September 30, 2022 and 2021, respectively, and were included in Long-term debt on the Consolidated Balance Sheet. (3) As of September 30, 2022 and 2021 all debt was classified as long term. |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement, Recognized Amount [Abstract] | |
Schedule of Classification of Compensation Expense | The following table shows total stock-based compensation expense recorded in our Consolidated Statements of Operations: (in thousands) Year ended September 30, 2022 2021 2020 Cost of license revenue $ 272 $ 100 $ 47 Cost of support and cloud services revenue 11,022 9,900 6,910 Cost of professional services revenue 11,481 9,263 7,012 Sales and marketing 49,467 53,712 37,351 Research and development 41,944 34,272 27,005 General and administrative 60,677 70,042 36,824 Total stock-based compensation expense $ 174,863 $ 177,289 $ 115,149 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the year ended September 30, 2022 (in thousands, except grant date fair value data) Shares Weighted Aggregate Balance of outstanding RSUs at October 1, 2021 3,217 $ 92.46 Granted (1) 1,659 $ 114.31 Vested ( 1,736 ) $ 92.70 Forfeited or not earned ( 386 ) $ 100.05 Balance of outstanding RSUs at September 30, 2022 2,754 $ 105.07 $ 288,068 (1) RSUs granted includes 37 shares from prior period rTSR awards that were earned upon achievement of the performance criteria and vested in November 2021 and 87 shares from prior period performance-based awards that were earned upon achievement of the performance criteria and vested in November 2021 . |
Schedule of Number of RSU Awards Granted by Award Type | The following table presents the number of RSU awards granted by award type: (in thousands) Twelve months ended September 30, 2022 Performance-based RSUs (1) 106 Service-based RSUs (2) 1,353 Relative Total Shareholder Return RSUs (3) 76 (1) The performance-based RSUs are primarily made up of RSUs granted to our executives and are eligible to vest based upon annual increasing performance measures over a three-year period. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2022, November 15, 2023, and November 15, 2024, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. Up to a maximum of two times the number of RSUs can be earned (up to a maximum aggregate of 152 RSUs). (2) The service-based RSUs were granted to employees, including our executive officers. Substantially all service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. (3) The rTSR RSUs were granted to our executives and are eligible to vest 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 the measurement period ending on September 30, 2024. The RSUs earned will vest on November 15, 2024. Up to a maximum of two times the number of rTSR RSUs eligible to be earned for the period (up to a maximum aggregate of 152 RSUs) may vest. If the return to PTC shareholders is negative for the period but still meets or exceeds the peer group indexed return, a maximum of 100 % of the rTSR RSUs may vest. |
Schedule of Valuation Assumptions | The significant assumptions used in the Monte Carlo simulation model were as follows: Average volatility of peer group 34.67 % Risk-free interest rate 0.81 % Dividend yield — % |
Schedule of Total Fair Value of RSUs Vested | : (in thousands) Year ended September 30, Value of stock option and stock-based award activity 2022 2021 2020 Total value of restricted stock unit awards at vest $ 199,738 $ 171,316 $ 103,265 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Accounting For The Pension Plans | The following table presents the actuarial assumptions used in accounting for the pension plans: 2022 2021 2020 Weighted average assumptions used to determine benefit obligations at September 30 measurement date: Discount rate 3.7 % 1.0 % 1.1 % Rate of increase in future compensation 3.6 % 2.8 % 2.8 % Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: Discount rate 1.0 % 1.1 % 0.9 % Rate of increase in future compensation 2.8 % 2.8 % 2.8 % Rate of return on plan assets 5.0 % 5.0 % 5.4 % |
Components of Net Periodic Pension Cost | All non-service net periodic pension costs are presented in Other income, net on the Consolidated Statement of Operations. The actuarially computed components of net periodic pension cost recognized in our Consolidated Statements of Operations for each year are shown below: (in thousands) Year ended September 30, 2022 2021 2020 Interest cost of projected benefit obligation $ 550 $ 692 $ 527 Service cost 1,016 1,127 1,426 Expected return on plan assets ( 3,712 ) ( 3,643 ) ( 3,878 ) Amortization of prior service cost ( 4 ) ( 5 ) ( 5 ) Recognized actuarial loss 1,425 4,139 3,854 Settlement gain ( 82 ) — — Net periodic pension (benefit) cost $ ( 807 ) $ 2,310 $ 1,924 |
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: (in thousands) Year ended September 30, 2022 2021 Change in benefit obligation: Projected benefit obligation, beginning of year $ 96,512 $ 97,832 Service cost 1,016 1,127 Interest cost 550 692 Actuarial loss (gain) ( 22,616 ) 1,100 Foreign exchange impact ( 12,949 ) ( 1,562 ) Participant contributions 96 109 Benefits paid ( 2,343 ) ( 2,786 ) Divestiture of business ( 1,184 ) — Settlements ( 953 ) — Projected benefit obligation, end of year $ 58,129 $ 96,512 Change in plan assets and funded status: Plan assets at fair value, beginning of year $ 78,385 $ 72,063 Actual return on plan assets 2,348 7,383 Employer contributions 3,007 3,049 Participant contributions 96 109 Foreign exchange impact ( 12,959 ) ( 1,433 ) Settlements ( 953 ) — Benefits paid ( 2,343 ) ( 2,786 ) Plan assets at fair value—end of year 67,581 78,385 Projected benefit obligation, end of year 58,129 96,512 Underfunded status $ ( 9,782 ) $ ( 18,982 ) Overfunded status $ 19,234 $ 855 Accumulated benefit obligation, end of year $ 57,310 $ 95,090 Amounts recognized in the balance sheet: Non-current asset $ 19,234 $ 855 Non-current liability $ ( 9,434 ) $ ( 18,615 ) Current liability $ ( 348 ) $ ( 367 ) Amounts in accumulated other comprehensive loss: Unrecognized actuarial loss $ 5,408 $ 30,213 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table shows the change in accumulated other comprehensive loss: (in thousands) Year ended September 30, 2022 2021 Accumulated other comprehensive loss, beginning of year $ 30,213 $ 37,175 Recognized during year - net actuarial losses ( 1,421 ) ( 4,135 ) Occurring during year - settlement gain 82 — Occurring during year - net actuarial gains ( 21,253 ) ( 2,640 ) Foreign exchange impact ( 2,213 ) ( 187 ) Accumulated other comprehensive loss, end of year $ 5,408 $ 30,213 |
Percentage of Total Plan Assets | The following table shows the percentage of total plan assets for each major category of plan assets: September 30, Asset category 2022 2021 Equity securities 33 % 35 % Fixed income securities 33 % 34 % Commodities 1 % 11 % Insurance company funds 10 % 12 % Options 2 % 1 % Cash 21 % 7 % 100 % 100 % |
Expected Future Benefit Payments | As of September 30, 2022, benefit payments expected to be paid over the next ten years are as follows: (in thousands) Future Benefit Payments 2023 $ 3,410 2024 4,068 2025 3,793 2026 3,830 2027 4,216 2028 to 2032 20,680 |
Fair Value of Plan Assets | (in thousands) September 30, 2022 Level 1 Level 2 Level 3 Total Fixed income securities: Government $ 20,430 $ — $ — $ 20,430 Corporate investment grade 2,038 — — 2,038 Large capitalization stocks 22,379 — — 22,379 Commodities 599 — — 599 Insurance company funds (1) — 6,823 — 6,823 Options 1,430 — — 1,430 Cash 13,882 — — 13,882 Total plan assets $ 60,758 $ 6,823 $ — $ 67,581 (in thousands) September 30, 2021 Level 1 Level 2 Level 3 Total Fixed income securities: Government $ 24,013 $ — $ — $ 24,013 Corporate investment grade 2,924 — — 2,924 Large capitalization stocks 27,078 — — 27,078 Commodities 8,558 — — 8,558 Insurance company funds (1) — 9,105 — 9,105 Options 1,122 — — 1,122 Cash 5,585 — — 5,585 Total plan assets $ 69,280 $ 9,105 $ — $ 78,385 (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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | Our significant financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and 2021 were as follows: (in thousands) September 30, 2022 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 102,313 $ — $ — $ 102,313 Convertible note — — 2,000 2,000 Forward contracts — 9,058 — 9,058 $ 102,313 $ 9,058 $ 2,000 $ 113,371 Financial liabilities: Forward contracts — 2,908 — 2,908 $ — $ 2,908 $ — $ 2,908 (in thousands) September 30, 2021 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 114,375 $ — $ — $ 114,375 Convertible note — — 2,000 2,000 Equity securities — — 77,540 77,540 Forward contracts — 5,363 — 5,363 $ 114,375 $ 5,363 $ 79,540 $ 199,278 Financial liabilities: Forward contracts — 3,318 — 3,318 $ — $ 3,318 $ — $ 3,318 (1) Money market funds and time deposits. |
Schedule of Changes in Fair Value of Level 3 Investment | The following table presents changes in fair value of our Level 3 investment in the Matterport, Inc. shares from October 1, 2021 to September 30, 2022: (in thousands) September 30, 2022 Fair Values Balance, October 1, 2021 $ 77,540 Realized loss ( 38,468 ) Sale of investment ( 39,072 ) Balance, September 30, 2022 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Forward Contracts and Options | As of September 30, 2022 and 2021, we had outstanding forward contracts for derivatives not designated as hedging instruments with notional amounts equivalent to the following: September 30, Currency Hedged (in thousands) 2022 2021 Canadian / U.S. Dollar $ 2,731 $ 4,894 Euro / U.S. Dollar 316,869 387,466 British Pound / U.S. Dollar 7,368 23,141 Israeli Shekel / U.S. Dollar 12,052 10,475 Japanese Yen / U.S. Dollar 25,566 46,450 Swiss Franc / U.S. Dollar 25,559 18,039 Swedish Krona / U.S. Dollar 35,713 34,196 Singapore Dollar / U.S. Dollar 3,637 3,498 Chinese Renminbi / U.S. Dollar 23,965 23,297 New Taiwan Dollar / U.S. Dollar 13,906 3,369 Russian Ruble/ U.S. Dollar — 2,614 Korean Won/ U.S. Dollar 4,919 — Danish Krone/ U.S. Dollar 3,192 2,380 Australian Dollar/ U.S. Dollar 3,269 2,086 All other 4,432 2,016 Total $ 483,178 $ 563,921 As of September 30, 2022 and 2021 , we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following: September 30, Currency Hedged (in thousands) 2022 2021 Euro / U.S. Dollar $ 110,466 $ 128,103 |
Schedule of Net Gains and Losses on Foreign Currency Exposures | The following table shows the effect of our non-designated hedges, all of which were forward contracts, on the Consolidated Statements of Operations for the years ended September 30, 2022, 2021 and 2020: (in thousands) Year ended September 30, Location of gain (loss) 2022 2021 2020 Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged Other income, net $ 11,950 $ ( 3,758 ) $ 3,518 The following table shows the effect of our derivative instruments designated as net investment hedges, all of which were forward contracts, on the Consolidated Statements of Operations for the years ended September 30, 2022, 2021, and 2020 : (in thousands) Year ended September 30, Location of gain (loss) 2022 2021 2020 Gain (loss) recognized in OCI—effective portion OCI $ ( 1,478 ) $ 695 $ ( 5,483 ) Gain (loss) reclassified from OCI—effective portion OCI $ ( 17,466 ) $ 2,723 $ 109 Gain recognized —portion excluded from effectiveness testing Other income, net $ 1,862 $ 1,249 $ 3,506 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets: (in thousands) Fair Value of Derivatives Fair Value of Derivatives September 30, 2022 2021 2022 2021 Derivative assets: (1) Forward contracts $ 1,960 $ 1,641 $ 7,098 $ 3,722 Derivative liabilities: (2) Forward contracts $ — $ — $ 2,908 $ 3,318 (1) As of September 30, 2022 and 2021, current derivative assets of $ 9.1 million and $ 5.4 million, respectively, are recorded in Other current assets on the Consolidated Balance Sheets. As of September 30, 2022 and 2021, current derivative liabilities of $ 2.9 million and $ 3.3 million, respectively, are recorded in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. |
Schedule of Offsetting Assets | The following table sets forth the offsetting of derivative assets as of September 30, 2022: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of September 30, 2022 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Forward Contracts $ 9,058 $ — $ 9,058 $ ( 2,908 ) $ — $ 6,150 |
Schedule of Offsetting Liabilities | The following table sets forth the offsetting of derivative liabilities as of September 30, 2022: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of September 30, 2022 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Forward Contracts $ 2,908 $ — $ 2,908 $ ( 2,908 ) $ — $ — |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |
Summary of Revenue and Profit Attributable to Our Operating Segments | The revenue and profit attributable to our operating segments are summarized below. We do not produce or report asset information by reportable segment. (in thousands) Year ended September 30, 2022 2021 2020 Software Products Revenue $ 1,770,253 $ 1,649,341 $ 1,314,617 Operating costs (1) 494,035 451,734 393,803 Profit 1,276,218 1,197,607 920,814 Professional Services Revenue 163,094 157,818 143,798 Operating costs (2) 140,470 135,981 128,678 Profit 22,624 21,837 15,120 Total segment revenue 1,933,347 1,807,159 1,458,415 Total segment costs 634,505 587,715 522,481 Total segment profit 1,298,842 1,219,444 935,934 Unallocated operating expenses: (3) Sales and marketing expenses 435,780 464,067 398,100 General and administrative expenses 130,870 120,954 114,386 Intangibles amortization 60,548 59,165 56,104 Restructuring and other charges, net 36,234 2,211 32,716 Stock-based compensation 174,863 177,289 115,149 Other unallocated operating expenses (4) 13,185 15,010 8,616 Total operating income 447,362 380,748 210,863 Interest expense ( 54,268 ) ( 50,478 ) ( 76,428 ) Other income, net 4,004 61,485 271 Income before income taxes $ 397,098 $ 391,755 $ 134,706 (1) Operating costs for the Software Products segment include all costs of software revenue and research and development costs, excluding stock-based compensation and intangible amortization. Operating costs for the Software Products segment include depreciation of $ 4.9 million, $ 4.0 million and $ 4.2 million in 2022, 2021 and 2020, respectively. (2) Operating costs for the Professional Services segment include all costs of professional services revenue, excluding stock-based compensation, and intangible amortization. The Professional Services segment includes depreciation of $ 0.9 million, $ 1.1 million and $ 1.1 million in 2022, 2021 and 2020, respectively. (3) Unallocated departments include depreciation of $ 21.4 million, $ 21.0 million and $ 19.4 million in 2022, 2021 and 2020, respectively. (4) Other unallocated operating expenses include acquisition and transaction-related costs. |
Summary of Revenue for Geographic Regions | Revenue for the geographic regions in which we operate is presented below. (in thousands) Year ended September 30, 2022 2021 2020 Revenue: Americas (1) $ 895,095 $ 766,021 $ 649,383 Europe (2) 714,216 722,977 543,779 Asia Pacific 324,036 318,161 265,253 Total revenue $ 1,933,347 $ 1,807,159 $ 1,458,415 (1) Includes revenue in the United States totaling $ 864.7 million, $ 741.3 million, and $ 621.8 million for 2022, 2021 and 2020, respectively. (2) Includes revenue in Germany totaling $ 318.5 million, $ 290.7 million, and $ 198.7 million for 2022, 2021 and 2020 , respectively. |
Products and Services Segments [Member] | |
Segment Reporting Information [Line Items] | |
Summary of Revenue and Profit Attributable to Our Operating Segments | e reported revenue by the following three product groups: (in thousands) Year ended September 30, 2022 2021 2020 Digital Thread - Core $ 1,318,857 $ 1,257,817 $ 1,025,709 Digital Thread - Growth 279,566 273,949 215,353 Digital Thread - FSG 251,621 233,268 210,101 Digital Thread (Total) 1,850,044 1,765,034 1,451,163 Velocity 83,303 42,125 7,252 Total revenue $ 1,933,347 $ 1,807,159 $ 1,458,415 Product lifecycle management (PLM) 1,137,016 1,012,120 807,016 Computer-aided design (CAD) 796,331 795,039 651,399 Total revenue $ 1,933,347 $ 1,807,159 $ 1,458,415 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost reflected in the Consolidated Statement of Operations for the year ended September 30, 2022 were as follows: (in thousands) Year ended September 30, 2022 Operating lease cost $ 34,346 Short-term lease cost 2,653 Variable lease cost 10,095 Sublease income ( 4,600 ) Total lease cost $ 42,494 Supplemental cash flow and right-of use assets information for the year ended September 30, 2022 was as follows: (in thousands) Year ended September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 38,709 Financing cash flows from operating leases $ 297 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 15,431 Financing leases $ — Supplemental balance sheet information related to the leases as of September 30, 2022 was as follows: As of September 30, 2022 Weighted-average remaining lease term - operating leases 11.8 years Weighted-average remaining lease term - financing leases 2 years Weighted-average discount rate - operating leases 5.4 % Weighted-average discount rate - financing leases 3.0 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2022 are as follows: (in thousands) Operating Leases 2022 $ 31,612 2023 26,907 2024 23,495 2025 19,487 2026 16,662 Thereafter 143,236 Total future lease payments 261,399 Less: imputed interest ( 71,824 ) Total $ 189,575 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 28, 2022 | Jan. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percent of standalone selling price for subscriptions that contains software license | 55% | |||||||
Percent of standalone selling price for subscriptions that contains support | 45% | |||||||
Contract with customer, total liability | $ 34,200,000 | $ 40,300,000 | ||||||
Proceeds from sales of short- and long-term marketable securities | $ 56,200,000 | $ 56,200,000 | 0 | 56,170,000 | $ 1,521,000 | |||
Allowance for doubtful accounts receivable | 400,000 | 300,000 | 500,000 | |||||
Allowance for credit loss, writeoff | 400,000 | 100,000 | 200,000 | |||||
Bad debt expense (recoveries) including general and administrative expense, net | 500,000 | 200,000 | 0 | |||||
Lease expiration date | 2037 | |||||||
Development costs for software | 0 | 0 | 0 | |||||
Advertising expense | 8,600,000 | 7,100,000 | 3,800,000 | |||||
Cumulative translation adjustment gains (loss) | 160,200,000 | (67,500,000) | ||||||
Pension benefits, before tax | 5,400,000 | (30,200,000) | ||||||
Accumulated other comprehensive (income) loss, defined benefit plan, after tax | 3,900,000 | 21,500,000 | ||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Net Investment Hedges, Before Tax | 16,900,000 | 6,500,000 | ||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Net Investment Hedges, Effect Net of Tax | $ 10,600,000 | $ 6,500,000 | ||||||
Share price per share | $ 0.01 | $ 0.01 | ||||||
Net income (loss) | $ (313,081,000) | $ (476,923,000) | $ (130,695,000) | |||||
Impairment charges | 0 | 0 | ||||||
Non-marketable equity investments | 1,000,000 | 2,200,000 | ||||||
Purchased Software | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible assets acquired | 6,000,000 | 600,000 | ||||||
Matterport, Inc. | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cost method investments | 8,700,000 | |||||||
Original investment | 8,700,000 | |||||||
Aggregate realized gain | 34,000,000 | |||||||
Fair value of shares | 77,500,000 | |||||||
Unrealized gain on value of shares | 68,800,000 | |||||||
Matterport, Inc. | Equity Securities [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cost method investments | 8,700,000 | |||||||
Value of remaining shares held for sale | $ 3,600,000 | $ 39,100,000 | ||||||
Share price per share | $ 7.6 | $ 9.1 | ||||||
Net income (loss) | (34,800,000) | |||||||
Original investment | $ 8,700,000 | |||||||
Minimum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percent of standalone selling price for subscriptions | 5% | |||||||
Minimum | Computer Hardware And Software | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 3 years | |||||||
Minimum | Furniture And Fixtures | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 3 years | |||||||
Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percent of standalone selling price for subscriptions | 50% | |||||||
Maximum | Purchased Software | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 16 years | |||||||
Maximum | Customer Lists | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 13 years | |||||||
Maximum | Trademarks | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 12 years | |||||||
Maximum | Computer Hardware And Software | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 5 years | |||||||
Maximum | Furniture And Fixtures | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 12 years | |||||||
ASU 2018-15 | Other Assets | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Capitalized costs | $ 14,300,000 | $ 2,800,000 | ||||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Derivative maturity | 4 months | |||||||
Net Investment Hedging | Designated as Hedging Instrument | Foreign Exchange Forward | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Derivative maturity | 3 months |
Summary of Significant Accoun_5
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, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | |||
Net income | $ 313,081 | $ 476,923 | $ 130,695 |
Weighted average shares outstanding | 117,194 | 116,836 | 115,663 |
Dilutive effect of employee stock options, restricted shares and restricted stock units | 1,039 | 1,531 | 604 |
Diluted weighted average shares outstanding | 118,233 | 118,367 | 116,267 |
Earnings per share-Basic | $ 2.67 | $ 4.08 | $ 1.13 |
Earnings per share-Diluted | $ 2.65 | $ 4.03 | $ 1.12 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract asset | $ 21,096 | $ 12,934 |
Deferred revenue | $ 520,333 | $ 497,677 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from External Customer [Line Items] | ||
Contract with customer, asset, expected to be transferred to receivables within the next 12 months and therefore | $ 16,900,000 | |
Contract with customer other current asset | $ 8,200,000 | |
Contract with customer, asset, reclassified to receivable | 7,000,000 | |
Contract with customer, asset, increase in contract assets | 8,200,000 | |
Contract with customer, asset, increase in contract assets related to revenue recognized | 15,200,000 | |
Deferred revenue, revenue recognized | 491,600,000 | |
Deferred revenue, additions | 507,300,000 | |
Short term and long term accounts receivable | $ 871,000,000 | 744,600,000 |
Capitalized contract cost, amortization period | 5 years | |
Amortization expense related to costs to obtain a contract with a customer | $ 50,900,000 | 46,700,000 |
Impairments of the contract cost asset | 0 | 0 |
Deferred revenue | 520,333,000 | 497,677,000 |
Revenue, remaining performance obligation, amount | 1,613,000,000 | |
Unrecorded | ||
Revenue from External Customer [Line Items] | ||
Revenue, remaining performance obligation, amount | 1,092,700,000 | |
Other Current Assets | ||
Revenue from External Customer [Line Items] | ||
Capitalized contract cost, net | 40,700,000 | 40,200,000 |
Other Assets | ||
Revenue from External Customer [Line Items] | ||
Capitalized contract cost, net | 77,000,000 | $ 81,100,000 |
Intland Software | ||
Revenue from External Customer [Line Items] | ||
Deferred revenue increased | $ 6,900,000 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Remaining Performance Obligations - Additional Information (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-11-01 | Sep. 30, 2022 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, percentage | 57% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 1,933,347 | $ 1,807,159 | $ 1,458,415 |
Total recurring revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,736,188 | 1,616,328 | 1,281,949 |
Perpetual license | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 34,065 | 33,013 | 32,668 |
Professional services | |||
Disaggregation Of Revenue [Line Items] | |||
Professional services | $ 163,094 | $ 157,818 | $ 143,798 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 USD ($) Employee | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) Employee | Sep. 30, 2019 USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ (32,410) | $ (2,136) | $ (26,427) | |
Sublease Income | 4,600 | |||
Payments for restructuring | 40,800 | 6,681 | 31,502 | |
Restructuring and other charges, net | (36,234) | (2,211) | (32,716) | |
Restructuring Reserve | 935 | 5,486 | 9,987 | $ 31,086 |
Depreciation | 27,100 | 26,100 | 24,700 | |
Other Noncurrent Liabilities | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Reserve | 900 | |||
Accounting Standards Update 2016-02 | ||||
Restructuring Cost And Reserve [Line Items] | ||||
ASC 842 adoption | (16,462) | |||
Saas Transformation | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Other charges for professional fees | 5,100 | |||
Impairment and Accretion Expense Related to Exited Facilities | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and other charges, net | (100) | (5,600) | ||
Impairment and Accretion Exited Lease Facilities | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Sublease Income | 1,300 | |||
Employee Severance and Related Benefits | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | (32,971) | (1,887) | (30,690) | |
Payments for restructuring | 34,023 | 3,925 | 27,256 | |
Restructuring Reserve | 346 | 1,981 | 3,992 | 298 |
Employee Severance and Related Benefits | Accounting Standards Update 2016-02 | ||||
Restructuring Cost And Reserve [Line Items] | ||||
ASC 842 adoption | 0 | |||
Restructured Facilities | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Payments for restructuring | 4,300 | |||
Accelerated Depreciation Planned Facility Exit | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and other charges, net | (700) | |||
Facility Closures | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | 561 | (249) | 4,263 | |
Payments for restructuring | 2,355 | 2,756 | 4,246 | |
Restructuring Reserve | 589 | 3,505 | 5,995 | $ 30,788 |
Facility Closures | Accrued Expenses and Other Current Liabilities | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Reserve | 2,600 | |||
Facility Closures | Accounting Standards Update 2016-02 | ||||
Restructuring Cost And Reserve [Line Items] | ||||
ASC 842 adoption | (16,462) | |||
Restructuring Plan 2022 | Saas Transformation | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Other charges for professional fees | 2,500 | |||
Restructuring Plan 2022 | Employee Severance and Related Benefits | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ (33,100) | |||
Number of employees | Employee | 330 | |||
Restructuring Plan 2020 | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Payments for restructuring | 27,300 | |||
Restructuring Plan 2020 | Employee Severance and Related Benefits | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ (30,800) | |||
Number of employees | Employee | 2,500 | |||
Restructuring Plan 2020 | Restructured Facilities | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Payments for restructuring | 2,800 | |||
Restructuring Plan 2019 | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Payments for restructuring | $ 3,900 | |||
Prior Restructuring | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Payments for restructuring | $ 300 | |||
Current Restructuring Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ (100) | $ (200) |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Restructuring Accrual Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 5,486 | $ 9,987 | $ 31,086 |
Charges (credits) to operations, net | 32,410 | 2,136 | 26,427 |
Cash disbursements | (40,800) | (6,681) | (31,502) |
Other non-cash | 164 | ||
Foreign exchange impact | (583) | 44 | 274 |
Restructuring reserve, ending balance | 935 | 5,486 | 9,987 |
Accounting Standards Update 2016-02 | |||
Restructuring Reserve [Roll Forward] | |||
ASC 842 adoption | (16,462) | ||
Employee Severance and Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 1,981 | 3,992 | 298 |
Charges (credits) to operations, net | 32,971 | 1,887 | 30,690 |
Cash disbursements | (34,023) | (3,925) | (27,256) |
Other non-cash | 0 | ||
Foreign exchange impact | (583) | 27 | 260 |
Restructuring reserve, ending balance | 346 | 1,981 | 3,992 |
Employee Severance and Related Benefits | Accounting Standards Update 2016-02 | |||
Restructuring Reserve [Roll Forward] | |||
ASC 842 adoption | 0 | ||
Facility Closures | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 3,505 | 5,995 | 30,788 |
Charges (credits) to operations, net | (561) | 249 | (4,263) |
Cash disbursements | (2,355) | (2,756) | (4,246) |
Other non-cash | 164 | ||
Foreign exchange impact | 0 | 17 | 14 |
Restructuring reserve, ending balance | 589 | $ 3,505 | 5,995 |
Facility Closures | Accounting Standards Update 2016-02 | |||
Restructuring Reserve [Roll Forward] | |||
ASC 842 adoption | $ (16,462) | ||
PTC Restructuring Plan 2022 | |||
Restructuring Reserve [Roll Forward] | |||
Cash disbursements | $ (36,378) |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Abstract] | ||
Computer hardware and software | $ 364,762 | $ 352,704 |
Furniture and fixtures | 29,744 | 30,568 |
Leasehold improvements | 95,383 | 94,959 |
Gross property and equipment | 489,889 | 478,231 |
Accumulated depreciation and amortization | (391,788) | (377,994) |
Net property and equipment | $ 98,101 | $ 100,237 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 27.1 | $ 26.1 | $ 24.7 |
Acquisitions and Disposition _2
Acquisitions and Disposition of Business - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 01, 2022 USD ($) Employees | Apr. 29, 2022 USD ($) Employees | Jan. 15, 2021 USD ($) Employees | Dec. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||||
Business combination, acquisition and transaction related costs | $ 13,200 | $ 15,000 | $ 8,600 | ||||
Borrowings under credit facility | 264,000 | 600,000 | 455,000 | ||||
Revenue | 1,933,347 | 1,807,159 | 1,458,415 | ||||
Deferred tax liabilities | 28,396 | 4,165 | |||||
Deferred revenue | 503,781 | 482,131 | |||||
Income taxes payable | 17,300 | 15,700 | |||||
Accounts receivable | 636,556 | 541,072 | |||||
Payments to acquire business, net of cash acquired | 282,943 | 718,030 | 483,478 | ||||
Goodwill | $ 2,353,654 | $ 2,191,887 | 1,625,786 | ||||
Customer Lists | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible asset, weighted average useful life | 11 years | 11 years | |||||
Purchased Software | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible asset, weighted average useful life | 11 years | 11 years | |||||
Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible asset, weighted average useful life | 12 years | 12 years | |||||
Arena Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business | $ 715,000 | ||||||
Cash acquired from acquisition | $ 11,100 | ||||||
Number Of Employees | Employees | 170 | ||||||
Revenue | $ 29,800 | ||||||
Fair value adjustments related to purchase accounting for acquisition | $ 9,100 | ||||||
Goodwill, acquired | $ 562,800 | ||||||
Deferred tax liabilities | 41,300 | ||||||
Deferred revenue | 15,500 | ||||||
Accounts receivable | 11,400 | ||||||
Liabilities | 400 | ||||||
Arena Solutions | Customer Lists | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 155,000 | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 13 years | ||||||
Arena Solutions | Purchased Software | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 38,300 | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 9 years | ||||||
Arena Solutions | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 4,200 | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 12 years | ||||||
Arena Solutions | Line of Credit | |||||||
Business Acquisition [Line Items] | |||||||
Borrowings under credit facility | $ 600,000 | ||||||
PLM Services Business Disposition | |||||||
Business Acquisition [Line Items] | |||||||
Number Of Employees | Employees | 160 | ||||||
Liabilities | $ 2,400 | ||||||
Total consideration | 60,400 | $ 6,844 | $ 0 | $ 0 | |||
Cash Consideration | 32,500 | ||||||
Gain On Sale | 29,800 | ||||||
Net Assets | 30,600 | ||||||
Goodwill | 33,000 | ||||||
Contingent Consideration | 20,000 | ||||||
PLM Services Business Disposition | Service To Be Performed [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Non Cash Consideration | $ 28,000 | ||||||
Other Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill, acquired | 691 | $ 581 | |||||
Intland Software | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business | $ 278,100 | ||||||
Borrowings under credit facility | $ 264,000 | ||||||
Number Of Employees | Employees | 150 | ||||||
Goodwill, acquired | $ 240,900 | 240,971 | |||||
Deferred tax liabilities | 20,100 | ||||||
Deferred revenue | 6,900 | ||||||
Income taxes payable | 700 | ||||||
Accounts receivable | 6,500 | ||||||
Liabilities | 800 | ||||||
Increase in Goodwill | 900 | ||||||
Increase in goodwill by Working capital adjustments | $ 240,000 | ||||||
Intland Software | Customer Lists | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 38,800 | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 11 years | ||||||
Intland Software | Purchased Software | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 19,100 | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 10 years | ||||||
Intland Software | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 1,300 | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 10 years |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 USD ($) Segment | Sep. 30, 2021 USD ($) | |
Number of operating segments | Segment | 2 | |
Number of reportable segments | Segment | 2 | |
Intangible assets | $ 2,736,372 | $ 2,570,854 |
Estimated aggregate future amortization expense for intangible assets, 2023 | 56,400 | |
Estimated aggregate future amortization expense for intangible assets, 2024 | 48,300 | |
Estimated aggregate future amortization expense for intangible assets, 2025 | 42,100 | |
Estimated aggregate future amortization expense for intangible assets, 2026 | 38,700 | |
Estimated aggregate future amortization expense for intangible assets, 2027 | 36,200 | |
Estimated aggregate future amortization expense for intangible assets, thereafter | 161,000 | |
Software Products | ||
Intangible assets | 2,725,200 | 2,525,700 |
Professional Services | ||
Intangible assets | $ 11,200 | $ 45,200 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Schedule of Goodwill and Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Goodwill (not amortized) | $ 2,353,654 | $ 2,191,887 | $ 1,625,786 |
Intangible assets with finite lives (amortized), Gross Carrying Amount | 1,152,018 | 1,112,070 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 769,300 | 733,103 | |
Intangible assets with finite lives (amortized), Net Book Value | 382,718 | 378,967 | |
Intangible Assets, Net (Including Goodwill) | 2,736,372 | 2,570,854 | |
Purchased Software | |||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 502,859 | 483,771 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 355,857 | 338,542 | |
Intangible assets with finite lives (amortized), Net Book Value | 147,002 | 145,229 | |
Capitalized Software | |||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 22,877 | 22,877 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 22,877 | 22,877 | |
Intangible assets with finite lives (amortized), Net Book Value | 0 | 0 | |
Customer Lists and Relationships | |||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 594,970 | 574,516 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 369,390 | 350,648 | |
Intangible assets with finite lives (amortized), Net Book Value | 225,580 | 223,868 | |
Trademarks and Trade Names | |||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 27,546 | 26,906 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 17,410 | 17,036 | |
Intangible assets with finite lives (amortized), Net Book Value | 10,136 | 9,870 | |
Other | |||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 3,766 | 4,000 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 3,766 | 4,000 | |
Intangible assets with finite lives (amortized), Net Book Value | $ 0 | $ 0 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Schedule of Goodwill and Acquired Intangible Assets (Parenthetical) (Details) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Purchased Software | ||
Weighted average useful lives (in years) | 11 years | 11 years |
Customer Lists and Relationships | ||
Weighted average useful lives (in years) | 11 years | 11 years |
Trademarks and Trade Names | ||
Weighted average useful lives (in years) | 12 years | 12 years |
Goodwill and Acquired Intangi_6
Goodwill and Acquired Intangible Assets - Schedule of Changes in Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Line Items] | |||
Balance, beginning of period | $ 2,191,887 | $ 1,625,786 | |
Foreign currency translation adjustments | (46,903) | 1,900 | |
Balance, end of period | 2,353,654 | 2,191,887 | |
Divestiture of business | |||
Goodwill [Line Items] | |||
Goodwill, acquired | 32,992 | ||
Intland Software | |||
Goodwill [Line Items] | |||
Goodwill, acquired | $ 240,900 | 240,971 | |
Other Acquisitions | |||
Goodwill [Line Items] | |||
Goodwill, acquired | 691 | 581 | |
Arena Acquisition | |||
Goodwill [Line Items] | |||
Goodwill, acquired | 563,620 | ||
Software Products | |||
Goodwill [Line Items] | |||
Balance, beginning of period | 2,148,968 | 1,583,316 | |
Foreign currency translation adjustments | (46,611) | 1,851 | |
Balance, end of period | 2,344,019 | 2,148,968 | |
Software Products | Divestiture of business | |||
Goodwill [Line Items] | |||
Goodwill, acquired | 0 | ||
Software Products | Intland Software | |||
Goodwill [Line Items] | |||
Goodwill, acquired | 240,971 | ||
Software Products | Other Acquisitions | |||
Goodwill [Line Items] | |||
Goodwill, acquired | 691 | 181 | |
Software Products | Arena Acquisition | |||
Goodwill [Line Items] | |||
Goodwill, acquired | 563,620 | ||
Professional Services | |||
Goodwill [Line Items] | |||
Balance, beginning of period | 42,919 | 42,470 | |
Foreign currency translation adjustments | (292) | 49 | |
Balance, end of period | 9,635 | 42,919 | |
Professional Services | Divestiture of business | |||
Goodwill [Line Items] | |||
Goodwill, acquired | (32,992) | ||
Professional Services | Intland Software | |||
Goodwill [Line Items] | |||
Goodwill, acquired | 0 | ||
Professional Services | Other Acquisitions | |||
Goodwill [Line Items] | |||
Goodwill, acquired | $ 0 | 400 | |
Professional Services | Arena Acquisition | |||
Goodwill [Line Items] | |||
Goodwill, acquired | $ 0 |
Goodwill and Acquired Intangi_7
Goodwill and Acquired Intangible Assets - Schedule of Aggregate Amortization Expense for Intangible Assets with Finite Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of acquired intangible assets | $ 34,970 | $ 29,396 | $ 28,713 |
Cost of software revenue | 25,578 | 29,769 | 27,391 |
Total amortization expense | $ 60,548 | $ 59,165 | $ 56,104 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 97,460 | $ 41,199 | $ (73,865) |
Foreign | 299,638 | 350,556 | 208,571 |
Income before income taxes | $ 397,098 | $ 391,755 | $ 134,706 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision For (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 767 | $ 4,774 | $ 2,187 |
State | 6,675 | 1,609 | 1,266 |
Foreign | 33,612 | 66,554 | 25,199 |
Current provision for income taxes | 41,054 | 72,937 | 28,652 |
Federal | 25,730 | (152,311) | (26,811) |
State | (3,177) | (27,228) | (4,063) |
Foreign | 20,410 | 21,434 | 6,233 |
Deferred provision for (benefit from) income taxes | 42,963 | (158,105) | (24,641) |
Provision (benefit) for income taxes | $ 84,017 | $ (85,168) | $ 4,011 |
Income Taxes - Summary of Feder
Income Taxes - Summary of Federal Income Tax Rate and Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation, Amount | ||||
Statutory federal income tax rate | $ 83,391 | $ 82,268 | $ 28,288 | |
Change in valuation allowance | 0 | (134,695) | (16,489) | |
State income taxes, net of federal tax benefit | 6,518 | (28,768) | (2,998) | |
Federal research and development credits | (7,477) | (5,764) | (5,483) | |
Uncertain tax positions | 2,418 | 3,398 | 3,072 | |
Foreign tax credit | (9,078) | (35,368) | 0 | |
Foreign rate differences | (8,982) | (34,584) | (22,074) | |
Foreign tax on U.S. provision | 9,078 | 5,931 | 4,523 | |
Excess tax benefits from restricted stock | (8,278) | (6,141) | (1,743) | |
Audits and settlements | 0 | 33,370 | 0 | |
U.S. permanent items | 15,304 | 18,389 | 6,590 | |
Base Erosion Anti-Abuse Tax (BEAT) | 0 | 2,936 | (1,759) | |
GILTI, net of foreign tax credits | 2,705 | 18,217 | 14,899 | |
Foreign-Derived Intangible Income (FDII) | (6,848) | (4,428) | (2,461) | |
Other, net | 1,578 | 71 | (354) | |
Provision (benefit) for income taxes | $ 84,017 | $ (85,168) | $ 4,011 | |
Reconciliation, Percent | ||||
Statutory federal income tax rate | 21% | 21% | 21% | |
Change in valuation allowance | 0% | (34.00%) | (12.00%) | |
State income taxes, net of federal tax benefit | 2% | (8.00%) | (2.00%) | |
Federal research and development credits | (2.00%) | (2.00%) | (4.00%) | |
Uncertain tax positions | 1% | 1% | 2% | |
Foreign tax credit | (2.00%) | (9.00%) | 0% | |
Foreign rate differences | (2.00%) | (9.00%) | (16.00%) | |
Foreign tax on U.S. provision | 2% | 2% | 3% | |
Excess tax benefits from restricted stock | (2.00%) | (2.00%) | (1.00%) | |
Audits and settlements | 0% | 9% | 0% | |
U.S. permanent items | 3% | 5% | 5% | |
Base Erosion Anti-Abuse Tax (BEAT) | 0% | 1% | (1.00%) | |
GILTI, net of foreign tax credits | 1% | 4% | 11% | |
Foreign-Derived Intangible Income (FDII) | (2.00%) | (1.00%) | (2.00%) | |
Other, net | (1.00%) | 0% | (1.00%) | |
Provision (benefit) for income taxes | 21% | (22.00%) | 3% | |
PLM Services Business Disposition | ||||
Reconciliation, Amount | ||||
Sale of a portion of the PLM services business | $ 60,400 | $ 6,844 | $ 0 | $ 0 |
Reconciliation, Percent | ||||
Sale of a portion of the PLM services business | 2% | 0% | 0% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Line Items] | ||||
Income taxes payable | $ 17,300 | $ 15,700 | ||
Accrued income taxes | 5,100 | 5,000 | ||
Prepaid income taxes | 25,800 | 15,400 | ||
Income tax payments | 55,000 | 56,000 | $ 52,600 | |
Non-cash federal | 109,400 | |||
State tax benefits | 24,800 | |||
Foreign tax credits | 14,527 | 36,287 | ||
Gross deferred amortization carryforward | 118,500 | |||
Valuation allowance | 22,283 | 52,085 | 205,423 | $ 177,663 |
Interest Expense | 54,268 | 50,478 | 76,428 | |
Penalty expense | 0 | 2,000 | 0 | |
Interest expense related to income tax accruals | 900 | 700 | ||
Accrued tax penalties | 0 | 0 | 0 | |
Income tax provision upon recognition of unrecognized tax benefit | 23,900 | |||
Unrecognized tax benefits, increase in valuation allowance upon recognition | 5,200 | |||
Potential decrease in unrecognized tax benefits | 5,000 | |||
Charge related to effects of Non US Jurisdiction Tax Matter | 37,300 | |||
US Income taxes on repatriated foreign earnings | 2,900 | |||
Stock-based compensation | 174,863 | 177,289 | 115,149 | |
Tax benefit recognition related to stock based compensation | 27,100 | 39,900 | 13,400 | |
Provision (benefit) for income taxes | 84,017 | (85,168) | 4,011 | |
Income Tax Expense | ||||
Income Tax Disclosure [Line Items] | ||||
Interest Expense | 200 | 2,200 | 300 | |
Domestic Country | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 22,500 | |||
Valuation allowance | 17,800 | |||
Domestic Country | Expire in 2023 to 2036 | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 1,600 | |||
Credit carryforwards | 60,900 | |||
Domestic Country | Not Expire | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 20,900 | |||
State - Massachusetts | ||||
Income Tax Disclosure [Line Items] | ||||
Valuation allowance | 17,800 | |||
State - Massachusetts | Research Tax Credit Carryforward | ||||
Income Tax Disclosure [Line Items] | ||||
Credit carryforwards | 26,100 | |||
Foreign Country | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 7,200 | |||
Credit carryforwards | $ 14,500 | |||
Credit carryforwards expiration | 2027 | |||
Foreign tax credits | $ 4,000 | |||
Valuation allowance | $ 4,500 | |||
Foreign Country | Minimum | ||||
Income Tax Disclosure [Line Items] | ||||
Non-U.S. tax credit carryforwards expiration | 2030 | |||
Foreign Country | Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Non-U.S. tax credit carryforwards expiration | 2041 | |||
REPUBLIC OF KOREA | ||||
Income Tax Disclosure [Line Items] | ||||
Charge related to effects of Non US Jurisdiction Tax Matter | 34,400 | |||
Payment related to effects of Non US jurisdiction tax matter | 20,000 | |||
Windfall Tax Benefit | ||||
Income Tax Disclosure [Line Items] | ||||
Provision (benefit) for income taxes | $ 5,200 | 9,900 | $ 1,300 | |
Other Current Liabilities | ||||
Income Tax Disclosure [Line Items] | ||||
Accrued income taxes | 5,600 | 800 | ||
Other Liabilities [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Accrued income taxes | $ 6,600 | $ 9,900 |
Income Taxes - Schedule Of Defe
Income Taxes - Schedule Of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred tax assets: | ||||
Net operating loss carryforwards | $ 40,419 | $ 65,383 | ||
Foreign tax credits | 14,527 | 36,287 | ||
Capitalized research and development | 23,274 | 27,546 | ||
Pension benefits | 7,639 | 14,097 | ||
Prepaid expenses | 15,886 | 12,540 | ||
Deferred revenue | 2,146 | 2,274 | ||
Stock-based compensation | 19,486 | 15,822 | ||
Other reserves not currently deductible | 14,689 | 16,796 | ||
Amortization of intangible assets | 130,825 | 147,385 | ||
Research and development and other tax credits | 78,862 | 74,846 | ||
Lease liabilities | 46,672 | 51,471 | ||
Fixed assets | 78,249 | 53,025 | ||
Capital loss carryforward | 3,955 | 35,156 | ||
Other | 1,256 | 2,269 | ||
Gross deferred tax assets | 477,885 | 554,897 | ||
Valuation allowance | (22,283) | (52,085) | $ (205,423) | $ (177,663) |
Total deferred tax assets | 455,602 | 502,812 | ||
Deferred tax liabilities: | ||||
Acquired intangible assets not deductible | (118,360) | (108,746) | ||
Lease assets | (36,940) | (37,273) | ||
Pension prepayments | (2,622) | (2,834) | ||
Deferred revenue | (35,193) | (2,662) | ||
Depreciation | (6,937) | (7,121) | ||
Unbilled accounts receivable | 0 | (6,391) | ||
Deferred income | (5,991) | (21,744) | ||
Prepaid commissions | (13,356) | (16,990) | ||
Other | (8,508) | (5,427) | ||
Total deferred tax liabilities | (227,907) | (209,188) | ||
Net deferred tax assets | $ 227,695 | $ 293,624 |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowance, beginning of year | $ 52,085 | $ 205,423 | $ 177,663 |
Net release of valuation allowance | 0 | (134,235) | 0 |
Net increase (decrease) in deferred tax assets with a full valuation allowance | (29,802) | (19,103) | 27,760 |
Valuation allowance, end of year | $ 22,283 | $ 52,085 | $ 205,423 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit, beginning of year | $ 21,166 | $ 16,107 | $ 11,484 |
Tax positions related to current year: | |||
Additions | 3,144 | 4,844 | 2,173 |
Tax positions related to prior years: | |||
Additions | 785 | 30,130 | 2,452 |
Reductions | (1,172) | (478) | (2) |
Settlements | (29,437) | 0 | |
Unrecognized tax benefit, end of year | $ 23,923 | $ 21,166 | $ 16,107 |
Income Taxes - Summary of Major
Income Taxes - Summary of Major Tax Jurisdiction (Details) | 12 Months Ended |
Sep. 30, 2022 | |
United States | |
Income Tax Examination [Line Items] | |
Open Years | 2018 2019 2020 2021 2022 |
Germany | |
Income Tax Examination [Line Items] | |
Open Years | 2015 2016 2017 2018 2019 2020 2021 2022 |
France | |
Income Tax Examination [Line Items] | |
Open Years | 2019 2020 2021 2022 |
Japan | |
Income Tax Examination [Line Items] | |
Open Years | 2017 2018 2019 2020 2021 2022 |
Ireland | |
Income Tax Examination [Line Items] | |
Open Years | 2018 2019 2020 2021 2022 |
Debt - Schedule of Long-term Bo
Debt - Schedule of Long-term Borrowing Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Feb. 13, 2020 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,359,000 | $ 1,450,000 | |
Unamortized debt issuance costs for the Senior notes | (8,372) | (10,529) | |
Total debt, net of issuance costs | 1,350,628 | 1,439,471 | |
4.000% Senior Notes Due 2028 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 500,000 | ||
3.625% Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 500,000 | ||
Long-term Debt [Member] | Line of Credit | |||
Debt Instrument [Line Items] | |||
Credit facility revolver | 359,000 | 450,000 | |
Long-term Debt [Member] | 4.000% Senior Notes Due 2028 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 500,000 | 500,000 | |
Long-term Debt [Member] | 3.625% Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 500,000 | $ 500,000 |
Debt - Schedule of Long-term _2
Debt - Schedule of Long-term Borrowing Obligations (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 28, 2020 |
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ 8,372 | $ 10,529 | |
Long-term Debt [Member] | Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | 8,400 | 10,500 | $ 14,100 |
Other Noncurrent Assets | Line of Credit | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ 2,700 | $ 3,800 |
Debt - Senior Notes - Additiona
Debt - Senior Notes - Additional Information (Details) - USD ($) $ in Millions | Feb. 13, 2020 | Sep. 30, 2022 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 101% | |
4.000% Senior Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 500 | |
Interest rate | 4% | |
4.000% Senior Notes Due 2028 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value amount | $ 436.3 | |
3.625% Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 500 | |
Interest rate | 3.625% | |
3.625% Senior Notes Due 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value amount | $ 468.7 |
Debt - Credit Agreement - Addit
Debt - Credit Agreement - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Feb. 13, 2020 | |
Debt Instrument [Line Items] | |||||||
Credit facility amount | $ 1,000,000,000 | ||||||
Voting interest in domestic subsidiaries pledged against credit facility | 100% | ||||||
Voting interest in foreign subsidiaries pledged against credit facility | 65% | ||||||
Leverage ratio, actual | 1.79 | ||||||
Senior debt leverage ratio, actual | 0.49 | ||||||
Fixed charge coverage ratio, actual | 14.21 | ||||||
Financing costs | $ 0 | $ 0 | $ 17,107,000 | ||||
Interest expense | 54,300,000 | 50,500,000 | 76,400,000 | ||||
Periodic interest payment | $ 48,500,000 | $ 45,200,000 | $ 60,600,000 | ||||
Amount paid in penalties for the early redemption of the 2024 notes | $ 15,000,000 | ||||||
Interest rate during period | 3.40% | 3.30% | 4.30% | ||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity expansion amount | $ 500,000,000 | ||||||
Unused commitments under credit facility | $ 641,000,000 | ||||||
Credit facility maturity date | Feb. 13, 2025 | ||||||
Basis spread on Federal Reserve Bank of New York (FRBNY) rate | 0.50% | ||||||
Basis spread on adjusted LIBOR | 1% | ||||||
Investment limit in foreign subsidiaries | $ 100,000,000 | ||||||
Cash investment limit for acquisition of business | $ 200,000,000 | ||||||
Total leverage ratio | 4.50 | ||||||
Senior secured leverage ratio | 3 | ||||||
Minimum fixed charge coverage ratio allowed under debt covenant | 3 | ||||||
Financing costs | $ 2,000,000 | $ 1,000,000 | |||||
Line of Credit | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate, length of time between updates | 30 days | ||||||
Credit facility commitment fees percentage | 0.175% | ||||||
Line of Credit | Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
Line of Credit | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Line of Credit | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate, length of time between updates | 180 days | ||||||
Credit facility commitment fees percentage | 0.30% | ||||||
Line of Credit | Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
Line of Credit | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Secured Debt | Revolving Loan, Reset Period One | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate at period end | 4.14% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Sep. 22, 2022 USD ($) | Sep. 30, 2022 USD ($) Plantiff | Sep. 30, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||
Letters of credit and bank guarantees outstanding | $ 15,000 | $ 16,300 | |
Bank guarantees outstanding collateralized | $ 500 | $ 500 | |
Putative Class Action | |||
Loss Contingencies [Line Items] | |||
Lawsuit filing date | September 17, 2020 | ||
Number of plaintiffs | Plantiff | 3 | ||
Lawsuit action domicile | U.S. District Court for the District of Massachusetts | ||
Gross settlement amount | $ 1,725 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Common stock, shares authorized | 500,000,000 | 500,000,000 | |
Stock repurchased during period (in shares) | 1,050,000 | 230,000 | 0 |
Stock repurchased during period, value | $ 125,000,000 | $ 30,000,000 | |
Maximum | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 500,000,000 | ||
Stock authorized to repurchase | $ 1,000,000,000 | ||
Series A Junior Participating Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 500,000 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 USD ($) shares $ / shares | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2020 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock Issuable per Restricted Stock Unit | shares | 1 | ||
Stock-based compensation | $ 174,863 | $ 177,289 | $ 115,149 |
Total unrecognized compensation cost | $ 201,500 | ||
Weighted average remaining recognition period, in months | 17 months | ||
Common stock were available for grant under the 2000 plan | shares | 2,800,000 | ||
Common stock were reserved for issuance | shares | 2,800,000 | ||
ESPP maximum contribution percentage | 10% | ||
ESPP maximum contribution amount by employee | $ 25,000 | ||
ESPP purchase price as a % of stock price | 85% | ||
Vesting period | 1 year | ||
Shares withheld for tax withholding obligation | shares | 600,000 | 500,000 | 500,000 |
Payments of withholding taxes in connection with vesting of stock-based awards | $ 68,991 | $ 52,957 | $ 33,740 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 6,400 | $ 7,300 | $ 5,800 |
Restricted Shares and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share | $ / shares | $ 114.31 | $ 111.48 | $ 77.57 |
TSR Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share | $ / shares | 136.43 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share | $ / shares | $ 114.31 | ||
Payments of withholding taxes in connection with vesting of stock-based awards | $ 69,000 | $ 53,100 | $ 33,700 |
Equity Incentive Plans - Schedu
Equity Incentive Plans - Schedule of Classification of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 174,863 | $ 177,289 | $ 115,149 |
Sales and marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 49,467 | 53,712 | 37,351 |
Research and development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 41,944 | 34,272 | 27,005 |
General and administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 60,677 | 70,042 | 36,824 |
License | Cost of Sales | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 272 | 100 | 47 |
Support and cloud services | Cost of Sales | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 11,022 | 9,900 | 6,910 |
Professional services | Cost of Sales | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 11,481 | $ 9,263 | $ 7,012 |
Equity Incentive Plans - Sche_2
Equity Incentive Plans - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Shares | |
Balance of outstanding restricted stock units, beginning, Shares | shares | 3,217 |
Granted, shares | shares | 1,659 |
Vested, Shares | shares | (1,736) |
Forfeited or not earned, Shares | shares | (386) |
Balance of outstanding restricted stock units, ending, Shares | shares | 2,754 |
Weighted- Average Grant Date Fair Value | |
Balance of outstanding restricted stock units, beginning (in USD per share) | $ / shares | $ 92.46 |
Granted (in USD per share) | $ / shares | 114.31 |
Vested (in USD per share) | $ / shares | 92.70 |
Forfeited or not earned (in USD per share) | $ / shares | 100.05 |
Balance of outstanding restricted stock units, ending (in USD per share) | $ / shares | $ 105.07 |
Intrinsic value [Abstract] | |
Aggregate Intrinsic Value, Ending Balance of outstanding restricted stock | $ | $ 288,068 |
Equity Incentive Plans - Sche_3
Equity Incentive Plans - Schedule of Restricted Stock Unit Activity (Parenthetical) (Details) | Nov. 30, 2021 shares |
Prior Period TSR Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 37 |
Prior Period Performance-based Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 87 |
Equity Incentive Plans - Sche_4
Equity Incentive Plans - Schedule of Number of RSU Awards Granted by Award Type (Details) shares in Thousands | 12 Months Ended | |
Sep. 30, 2022 shares | ||
Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 106 | [1] |
Service-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 1,353 | [2] |
TSR Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 76 | [3] |
[1] The performance-based RSUs are primarily made up of RSUs granted to our executives and are eligible to vest based upon annual increasing performance measures over a three-year period. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2022, November 15, 2023, and November 15, 2024, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. Up to a maximum of two times the number of RSUs can be earned (up to a maximum aggregate of 152 RSUs). The service-based RSUs were granted to employees, including our executive officers. Substantially all service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. The rTSR RSUs were granted to our executives and are eligible to vest 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 the measurement period ending on September 30, 2024. The RSUs earned will vest on November 15, 2024. Up to a maximum of two times the number of rTSR RSUs eligible to be earned for the period (up to a maximum aggregate of 152 RSUs) may vest. If the return to PTC shareholders is negative for the period but still meets or exceeds the peer group indexed return, a maximum of 100 % of the rTSR RSUs may vest. |
Equity Incentive Plans - Sche_5
Equity Incentive Plans - Schedule of Restricted Stock Unit Grants for the Period (Parenthetical) (Details) shares in Thousands | 12 Months Ended | |
Sep. 30, 2022 Installment shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Granted, shares | 106 | [1] |
Number of equal annual installments | Installment | 3 | |
Performance-Based Restricted Stock Units | Maximum | Catch-Up Provision | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 152 | |
Performance-Based Restricted Stock Units | Maximum Two Times | Maximum | Catch-Up Provision | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs | two times | |
Service-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 1,353 | [2] |
Number of equal annual installments | Installment | 3 | |
TSR Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 76 | [3] |
TSR Units | Maximum | Catch-Up Provision | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 152 | |
Percentage of number of RSUs | 100% | |
TSR Units | Maximum Two Times | Maximum | Catch-Up Provision | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs | two times | |
[1] The performance-based RSUs are primarily made up of RSUs granted to our executives and are eligible to vest based upon annual increasing performance measures over a three-year period. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2022, November 15, 2023, and November 15, 2024, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. Up to a maximum of two times the number of RSUs can be earned (up to a maximum aggregate of 152 RSUs). The service-based RSUs were granted to employees, including our executive officers. Substantially all service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. The rTSR RSUs were granted to our executives and are eligible to vest 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 the measurement period ending on September 30, 2024. The RSUs earned will vest on November 15, 2024. Up to a maximum of two times the number of rTSR RSUs eligible to be earned for the period (up to a maximum aggregate of 152 RSUs) may vest. If the return to PTC shareholders is negative for the period but still meets or exceeds the peer group indexed return, a maximum of 100 % of the rTSR RSUs may vest. |
Equity Incentive Plans - Sche_6
Equity Incentive Plans - Schedule of Valuation Assumptions (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Volatility Assumptions [Abstract] | |
Average volatility of peer group | 34.67% |
Risk-free interest rate | 0.81% |
Dividend yield | 0% |
Equity Incentive Plans - Sche_7
Equity Incentive Plans - Schedule of Total Fair Value of RSUs Vested (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-Based Payment Arrangement, Recognized Amount [Abstract] | |||
Total fair value of restricted stock unit awards at vest | $ 199,738 | $ 171,316 | $ 103,265 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - Savings Plan - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
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% | ||
Defined contribution plan, percentage of employer contribution on employee's earnings | 3% | ||
Matching contributions by employer | $ 7.8 | $ 7.8 | $ 6.7 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average interest crediting rate used in only cash balance pension plan | 4.10% | |||
Defined benefit plan, plan assets, increase (decrease) for actual return (loss) | $ 2,300 | $ 7,400 | $ (3,000) | |
Defined benefit plan, plan assets, contributions by employer | $ 3,000 | $ 3,000 | $ 2,600 | |
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plans, vesting period | 1 year | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plans, vesting period | 5 years | |||
Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension income | $ 400 | |||
Defined benefit plan, plan assets, contributions by employer | 3,100 | |||
Defined benefit plan, plan assets, contributions by employer, directly to plans | $ 600 | |||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Rate of return on plan assets | 5% | 5% | 5.40% | |
Net periodic pension income | $ (807) | $ 2,310 | $ 1,924 | |
Defined benefit plan, plan assets, increase (decrease) for actual return (loss) | 2,348 | 7,383 | ||
Defined benefit plan, plan assets, contributions by employer | $ 3,007 | $ 3,049 | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.70% | 1% | 1.10% | |
Pension Plan | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 1% | |||
Pension Plan | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.70% | |||
Pension Plan | Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current asset allocation target for fixed income securities | 100% |
Pension Plans - Accounting For
Pension Plans - Accounting For The Pension Plans (Details) - Pension Plan | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Discount rate | 3.70% | 1% | 1.10% |
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Rate of increase in future compensation | 3.60% | 2.80% | 2.80% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Discount rate | 1% | 1.10% | 0.90% |
Weighted average assumptions used to determine net periodic pension costs for fiscals years ended September 30, Rate of increase of future compensation | 2.80% | 2.80% | 2.80% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Rate of return on plan assets | 5% | 5% | 5.40% |
Pension Plans - Components of N
Pension Plans - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Amortization Of Acquired Intangible Assets Excluding Purchased Software | Amortization Of Acquired Intangible Assets Excluding Purchased Software | Amortization Of Acquired Intangible Assets Excluding Purchased Software |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring Costs and Asset Impairment Charges | Restructuring Costs and Asset Impairment Charges | Restructuring Costs and Asset Impairment Charges |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost of projected benefit obligation | $ 550 | $ 692 | $ 527 |
Service cost | 1,016 | 1,127 | 1,426 |
Expected return on plan assets | (3,712) | (3,643) | (3,878) |
Amortization of prior service cost | (4) | (5) | (5) |
Recognized actuarial loss | 1,425 | 4,139 | 3,854 |
Settlement gain | (82) | 0 | 0 |
Net periodic pension (benefit) cost | $ (807) | $ 2,310 | $ 1,924 |
Pension Plans - Change in Benef
Pension Plans - Change in Benefit Obligation And Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at fair value, beginning of year | $ 78,385 | ||
Actual return on plan assets | 2,300 | $ 7,400 | $ (3,000) |
Employer contributions | 3,000 | 3,000 | 2,600 |
Plan assets at fair value—end of year | 67,581 | 78,385 | |
Unrecognized actuarial loss | 5,400 | (30,200) | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, beginning of year | 96,512 | 97,832 | |
Service cost | 1,016 | 1,127 | 1,426 |
Interest cost | 550 | 692 | 527 |
Actuarial loss (gain) | (22,616) | 1,100 | |
Foreign exchange impact | (12,949) | (1,562) | |
Participant contributions | 96 | 109 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Benefits paid | (2,343) | (2,786) | |
Divestiture of business | 1,184 | 0 | |
Settlements | (953) | 0 | |
Projected benefit obligation, end of year | 58,129 | 96,512 | 97,832 |
Plan assets at fair value, beginning of year | 78,385 | 72,063 | |
Actual return on plan assets | 2,348 | 7,383 | |
Employer contributions | 3,007 | 3,049 | |
Participant contributions | 96 | 109 | |
Foreign exchange impact | (12,959) | (1,433) | |
Settlements | (953) | 0 | |
Benefits paid | (2,343) | (2,786) | |
Plan assets at fair value—end of year | 67,581 | 78,385 | $ 72,063 |
Accumulated benefit obligation, end of year | 57,310 | 95,090 | |
Non-current asset | 19,234 | 855 | |
Non-current liability | (9,434) | (18,615) | |
Current liability | (348) | (367) | |
Unrecognized actuarial loss | 5,408 | 30,213 | |
Pension Plan | Underfunded Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Underfunded or Overfunded Status | (9,782) | (18,982) | |
Pension Plan | Overfunded Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Underfunded or Overfunded Status | $ 19,234 | $ 855 |
Pension Plans - Change in Accum
Pension Plans - Change in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning balance | $ 2,038,468 | $ 1,438,248 |
Ending balance | 2,296,034 | 2,038,468 |
Pension Plan | ||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning balance | 30,213 | 37,175 |
Recognized during year - net actuarial losses | (1,421) | (4,135) |
Occurring during year - settlement gain | 82 | 0 |
Occurring during year - net actuarial losses | (21,253) | (2,640) |
Foreign exchange impact | (2,213) | (187) |
Ending balance | $ 5,408 | $ 30,213 |
Pension Plans - Percentage of T
Pension Plans - Percentage of Total Plan Assets (Details) - Pension Plan | Sep. 30, 2022 | Sep. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 100% | 100% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 33% | 35% |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 33% | 34% |
Commodity Option | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 1% | 11% |
Insurance Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 10% | 12% |
Options | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 2% | 1% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 21% | 7% |
Pension Plans - Expected Future
Pension Plans - Expected Future Benefit Payments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Retirement Benefits [Abstract] | |
2023 | $ 3,410 |
2024 | 4,068 |
2025 | 3,793 |
2026 | 3,830 |
2027 | 4,216 |
2028 to 2032 | $ 20,680 |
Pension Plans - Fair Value of P
Pension Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | $ 67,581 | $ 78,385 |
Government | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 20,430 | 24,013 |
Corporate Investment Grade | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 2,038 | 2,924 |
Large Capitalization Stocks | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 22,379 | 27,078 |
Commodity Option | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 599 | 8,558 |
Insurance Company Funds | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 6,823 | 9,105 |
Options | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 1,430 | 1,122 |
Cash | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 13,882 | 5,585 |
Level 1 | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 60,758 | 69,280 |
Level 1 | Government | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 20,430 | 24,013 |
Level 1 | Corporate Investment Grade | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 2,038 | 2,924 |
Level 1 | Large Capitalization Stocks | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 22,379 | 27,078 |
Level 1 | Commodity Option | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 599 | 8,558 |
Level 1 | Options | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 1,430 | 1,122 |
Level 1 | Cash | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 13,882 | 5,585 |
Level 2 | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 6,823 | 9,105 |
Level 2 | Insurance Company Funds | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | $ 6,823 | $ 9,105 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Financial assets: | ||
Cash equivalents | $ 102,313 | $ 114,375 |
Convertible note | 2,000 | 2,000 |
Equity securities | 77,540 | |
Forward contracts | $ 9,058 | $ 5,363 |
Derivative Asset Statement of Financial Position Extensible Enumeration | Other assets | Other assets |
Financial assets, fair value | $ 113,371 | $ 199,278 |
Financial liabilities: | ||
Forward contracts | 2,908 | 3,318 |
Financial liabilities, fair value | $ 2,908 | $ 3,318 |
Derivative Liability Statement Of Financial Position Extensible Enumeration | Other liabilities | Other liabilities |
Level 1 | ||
Financial assets: | ||
Cash equivalents | $ 102,313 | $ 114,375 |
Convertible note | 0 | 0 |
Equity securities | 0 | |
Forward contracts | 0 | 0 |
Financial assets, fair value | 102,313 | 114,375 |
Financial liabilities: | ||
Forward contracts | 0 | 0 |
Financial liabilities, fair value | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash equivalents | 0 | 0 |
Convertible note | 0 | 0 |
Equity securities | 0 | |
Forward contracts | 9,058 | 5,363 |
Financial assets, fair value | 9,058 | 5,363 |
Financial liabilities: | ||
Forward contracts | 2,908 | 3,318 |
Financial liabilities, fair value | 2,908 | 3,318 |
Level 3 | ||
Financial assets: | ||
Cash equivalents | 0 | 0 |
Convertible note | 2,000 | 2,000 |
Equity securities | 77,540 | |
Forward contracts | 0 | 0 |
Financial assets, fair value | 2,000 | 79,540 |
Financial liabilities: | ||
Forward contracts | 0 | 0 |
Financial liabilities, fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2022 | Jan. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Non-marketable equity investments | $ 1,000,000 | $ 2,200,000 | |||
Cash received from sale of non-marketable equity investments | $ 4,200,000 | ||||
Share price per share | $ 0.01 | $ 0.01 | |||
Net income (loss) | $ (313,081,000) | $ (476,923,000) | $ (130,695,000) | ||
Aggregate realized gain | 3,000,000 | ||||
Non Marketable Equity Investment Member | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Original investment | 1,200,000 | ||||
Matterport, Inc. | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Original investment | 8,700,000 | ||||
Aggregate realized gain | 34,000,000 | ||||
Equity Securities | Matterport, Inc. | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Value of remaining shares held for sale | $ 3,600,000 | $ 39,100,000 | |||
Share price per share | $ 7.6 | $ 9.1 | |||
Net income (loss) | (34,800,000) | ||||
Original investment | 8,700,000 | ||||
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount invested in non-marketable convertible note | $ 2,000,000 | ||||
Changes in fair value | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Changes in Fair Value of Level 3 Investment (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Realized loss | $ (38,468) |
Matterport, Inc. | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance, October 1, 2021 | 77,540 |
Sale of investment | (39,072) |
Balance, September 30, 2022 | $ 0 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Marketable Securities [Abstract] | |||||
Marketable securities held | $ 0 | ||||
Proceeds from sale of marketable securities | $ 56,200,000 | $ 56,200,000 | $ 0 | $ 56,170,000 | $ 1,521,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Notional Amounts of Outstanding Forward Contracts (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | $ 483,178 | $ 563,921 |
Canadian / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 2,731 | 4,894 |
Euro / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 316,869 | 387,466 |
Euro / U.S. Dollar | Designated as Hedging Instrument | Foreign Exchange Forward | Net Investment Hedging | ||
Derivative [Line Items] | ||
Notional amount | 110,466 | 128,103 |
British Pound / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 7,368 | 23,141 |
Israeli Shekel / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 12,052 | 10,475 |
Japanese Yen / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 25,566 | 46,450 |
Swiss Franc / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 25,559 | 18,039 |
Swedish Krona / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 35,713 | 34,196 |
Singapore Dollar / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 3,637 | 3,498 |
Chinese Renminbi / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 23,965 | 23,297 |
New Taiwan Dollar / U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 13,906 | 3,369 |
Russian Ruble/ U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 0 | 2,614 |
Korean Won/ U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 4,919 | 0 |
Danish Krone/ U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 3,192 | 2,380 |
Australian Dollar/ U.S. Dollar | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | 3,269 | 2,086 |
All other | Not Designated as Hedging Instrument | Foreign Exchange Forward Contract and Options | ||
Derivative [Line Items] | ||
Notional amount | $ 4,432 | $ 2,016 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivative Instruments and Hedging Activities Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | Nonoperating Income (Expense) | Nonoperating Income (Expense) |
Foreign Exchange Forward Contract and Options | Not Designated as Hedging Instrument | Other income, net | |||
Derivative Instruments Gain Loss [Line Items] | |||
Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged | $ 11,950 | $ (3,758) | $ 3,518 |
Foreign Exchange Forward | Designated as Hedging Instrument | Net Investment Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged | (1,478) | 695 | (5,483) |
Gain (loss) reclassified from OCI—effective portion | (17,466) | 2,723 | 109 |
Gain recognized—portion excluded from effectiveness testing | $ 1,862 | $ 1,249 | $ 3,506 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | |||
Net losses on foreign currency exposures | $ 0.9 | $ 8 | $ 1.7 |
Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged) | $ (16.4) | $ 4.9 | $ 7 |
Forward Contracts | Maximum | Designated as Hedging Instrument | Net Investment Hedging | |||
Derivative [Line Items] | |||
Derivative, remaining maturity | 3 months |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Derivative Financial Instruments at Gross Fair Value (Details) - Foreign Exchange Forward - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Assets | $ 0 | $ 0 |
Gross Amount of Recognized Liabilities | 1,960 | 1,641 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fair Value of Derivatives Not Designated As Hedging Instruments | 2,908 | 3,318 |
Fair Value of Derivatives Not Designated As Hedging Instruments | $ 7,098 | $ 3,722 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Derivative Financial Instruments at Gross Fair Value (Parentheticals) (Details) - Forward Contracts - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Other Current Assets | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Assets | $ 9.1 | $ 5.4 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Liabilities | $ 2.9 | $ 3.3 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Schedule of Offsetting Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Derivative [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheets | $ 9,058 | $ 5,363 |
Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Assets | 9,058 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 9,058 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | (2,908) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | 0 | |
Net Amount | $ 6,150 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of Offsetting Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Derivative [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | $ 2,908 | $ 3,318 |
Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Liabilities | 2,908 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | 2,908 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (2,908) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Amount | $ 0 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) | 12 Months Ended |
Sep. 30, 2022 Segment Product_area | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Number of product areas | Product_area | 3 |
Segment and Geographic Inform_4
Segment and Geographic Information - Summary of Revenue and Profit Attributable to Our Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | $ 1,933,347 | $ 1,807,159 | $ 1,458,415 |
Operating costs | 385,980 | 371,102 | 334,271 |
Gross margin | 1,547,367 | 1,436,057 | 1,124,144 |
Sales and marketing | 485,247 | 517,779 | 435,451 |
General and administrative | 204,732 | 206,006 | 159,826 |
Intangibles amortization | 60,548 | 59,165 | 56,104 |
Restructuring and other charges, net | 36,234 | 2,211 | 32,716 |
Total operating income | 447,362 | 380,748 | 210,863 |
Interest expense | (54,268) | (50,478) | (76,428) |
Other income, net | 4,004 | 61,485 | 271 |
Income before income taxes | 397,098 | 391,755 | 134,706 |
Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 1,933,347 | 1,807,159 | 1,458,415 |
Operating costs | 634,505 | 587,715 | 522,481 |
Gross margin | 1,298,842 | 1,219,444 | 935,934 |
Operating Segments | Software Products | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 1,770,253 | 1,649,341 | 1,314,617 |
Operating costs | 494,035 | 451,734 | 393,803 |
Gross margin | 1,276,218 | 1,197,607 | 920,814 |
Operating Segments | Professional Services | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 163,094 | 157,818 | 143,798 |
Operating costs | 140,470 | 135,981 | 128,678 |
Gross margin | 22,624 | 21,837 | 15,120 |
Unallocated | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Sales and marketing | 435,780 | 464,067 | 398,100 |
General and administrative | 130,870 | 120,954 | 114,386 |
Intangibles amortization | 60,548 | 59,165 | 56,104 |
Restructuring and other charges, net | 36,234 | 2,211 | 32,716 |
Stock-based compensation | 174,863 | 177,289 | 115,149 |
Other unallocated operating expenses | $ 13,185 | $ 15,010 | $ 8,616 |
Segment and Geographic Inform_5
Segment and Geographic Information - Summary of Revenue and Profit Attributable to Our Operating Segments (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 87,694 | $ 85,239 | $ 80,817 |
Unallocated | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | 21,400 | 21,000 | 19,400 |
Software Products | Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | 4,900 | 4,000 | 4,200 |
Professional Services | Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 900 | $ 1,100 | $ 1,100 |
Segment and Geographic Inform_6
Segment and Geographic Information - Revenue By Product Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Total revenue | $ 1,933,347 | $ 1,807,159 | $ 1,458,415 |
Operating Segments | |||
Total revenue | 1,933,347 | 1,807,159 | 1,458,415 |
Digital Thread Core Group | Operating Segments | |||
Total revenue | 1,318,857 | 1,257,817 | 1,025,709 |
Digital Thread Growth Group | Operating Segments | |||
Total revenue | 279,566 | 273,949 | 215,353 |
Digital Thread FSG Group | Operating Segments | |||
Total revenue | 251,621 | 233,268 | 210,101 |
Digital Thread Group | Operating Segments | |||
Total revenue | 1,850,044 | 1,765,034 | 1,451,163 |
Velocity Group | Operating Segments | |||
Total revenue | 83,303 | 42,125 | 7,252 |
Product lifecycle management (PLM) | Operating Segments | |||
Total revenue | 1,137,016 | 1,012,120 | 807,016 |
Computer-aided design (CAD) | Operating Segments | |||
Total revenue | $ 796,331 | $ 795,039 | $ 651,399 |
Segment and Geographic Inform_7
Segment and Geographic Information - Revenue By Geographic Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total revenue | $ 1,933,347 | $ 1,807,159 | $ 1,458,415 |
Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total revenue | 1,933,347 | 1,807,159 | 1,458,415 |
Americas | Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total revenue | 895,095 | 766,021 | 649,383 |
Europe | Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total revenue | 714,216 | 722,977 | 543,779 |
Asia Pacific | Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total revenue | $ 324,036 | $ 318,161 | $ 265,253 |
Segment and Geographic Inform_8
Segment and Geographic Information - Revenue By Geographic Segment (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Total revenue | $ 1,933,347 | $ 1,807,159 | $ 1,458,415 |
United States | |||
Total revenue | 864,700 | 741,300 | 621,800 |
Germany | |||
Total revenue | $ 318,500 | $ 290,700 | $ 198,700 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended | |||
Sep. 30, 2022 USD ($) ft² | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Feb. 28, 2019 USD ($) | |
Lessee Lease Description [Line Items] | ||||
Boston Lease Square Feet | ft² | 250,000 | |||
Boston lease year one payments | $ 11,000,000 | |||
Boston lease per square foot annual increase | 1 | |||
Boston lease annual increase | 300,000 | |||
Boston lease building operating cost amount estimate year one | 7,100,000 | |||
Boston lease leasehold improvement allowance | 25,000,000 | |||
Boston lease leasehold improvement allowance per square foot | 100 | |||
Future lease payments | 11,600,000 | |||
Operating right-of-use lease assets | 137,780,000 | $ 152,337,000 | ||
Operating lease, liability | 189,575,000 | |||
Payments to be received as sublease income | $ 2,900,000 | $ 9,100,000 | ||
Lease Cost | ||||
Operating cash flows from operating leases | $ 38,709,000 | |||
Minimum | ||||
Lessee Lease Description [Line Items] | ||||
Leases not yet commenced, Term of contract | 10 years | |||
Facility Closures and Related Costs | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease liability, net. restructured facilities | $ 300,000 | $ 3,600,000 | ||
Lease Cost | ||||
Operating cash flows from operating leases | 2,000,000 | |||
Facility Closures and Related Costs | Prior Headquarters | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease, impairment loss | 1,300,000 | |||
Sublease Income Committed | ||||
Lessee Lease Description [Line Items] | ||||
Sublease income assumed | 0 | |||
Sublease Income Estimated Uncommitted | ||||
Lessee Lease Description [Line Items] | ||||
Sublease income assumed | $ 0 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Lease Cost | |
Operating lease cost | $ 34,346 |
Short-term lease cost | 2,653 |
Variable lease cost | 10,095 |
Sublease income | (4,600) |
Total lease cost | $ 42,494 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow and Right of Use Assets Information (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 38,709 |
Financing cash flows from operating leases | 297 |
Operating leases | 15,431 |
Financing leases | $ 0 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) | Sep. 30, 2022 |
Leases [Abstract] | |
Weighted-average remaining lease term - operating leases | 11 years 9 months 18 days |
Weighted-average remaining lease term - financing leases | 2 years |
Weighted-average discount rate - operating leases | 5.40% |
Weighted-average discount rate - financing leases | 3% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 | $ 31,612 |
2023 | 26,907 |
2024 | 23,495 |
2025 | 19,487 |
2026 | 16,662 |
Thereafter | 143,236 |
Total future lease payments | 261,399 |
Less: imputed interest | (71,824) |
Total | $ 189,575 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 USD ($) Installment | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Subsequent Event [Line Items] | |||
Vesting period | 1 year | ||
Restructuring Charges | $ | $ (32,410) | $ (2,136) | $ (26,427) |
Payments for restructuring | $ | $ 40,800 | $ 6,681 | $ 31,502 |
Service-Based Restricted Stock Units | |||
Subsequent Event [Line Items] | |||
Number of equal annual installments | Installment | 3 | ||
Performance-Based Restricted Stock Units | |||
Subsequent Event [Line Items] | |||
Number of equal annual installments | Installment | 3 | ||
Vesting period | 3 years |