Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Nov. 18, 2020 | Mar. 27, 2020 | |
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, 2020 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2020 | ||
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 | ||
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 | $ 6,144,651,405 | ||
Entity Common Stock, Shares Outstanding | 116,662,768 | ||
Entity Emerging Growth Company | false | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement in connection with the 2021 Annual Meeting of Stockholders (2021 Proxy Statement) are incorporated by reference into Part III. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 275,458 | $ 269,579 |
Short-term marketable securities | 28,129 | 27,891 |
Accounts receivable, net of allowance for doubtful accounts of $543 and $744 at September 30, 2020 and 2019, respectively | 415,221 | 372,743 |
Prepaid expenses | 69,408 | 52,701 |
Other current assets | 45,231 | 59,707 |
Total current assets | 833,447 | 782,621 |
Property and equipment, net | 101,499 | 105,531 |
Goodwill | 1,625,786 | 1,238,179 |
Acquired intangible assets, net | 237,570 | 169,949 |
Long-term marketable securities | 30,970 | 29,544 |
Deferred tax assets | 190,963 | 198,634 |
Operating right-of-use lease assets | 149,933 | 0 |
Other assets | 212,570 | 140,130 |
Total assets | 3,382,738 | 2,664,588 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 24,910 | 42,442 |
Accrued expenses and other current liabilities | 96,313 | 104,028 |
Accrued compensation and benefits | 101,087 | 88,769 |
Accrued income taxes | 7,011 | 17,407 |
Deferred revenue | 416,804 | 385,509 |
Short-term lease obligations | 34,635 | 0 |
Total current liabilities | 680,760 | 638,155 |
Long-term debt | 1,005,314 | 669,134 |
Deferred tax liabilities | 12,431 | 41,683 |
Deferred revenue | 9,661 | 11,123 |
Long-term lease obligations | 180,388 | 0 |
Other liabilities | 55,936 | 102,495 |
Total liabilities | 1,944,490 | 1,462,590 |
Commitments and contingencies (Note 10) | 0 | 0 |
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; 116,125 and 114,899 shares issued and outstanding at September 30, 2020 and 2019, respectively | 1,161 | 1,149 |
Additional paid-in capital | 1,602,728 | 1,502,949 |
Accumulated deficit | (62,267) | (191,390) |
Accumulated other comprehensive loss | (103,374) | (110,710) |
Total stockholders’ equity | 1,438,248 | 1,201,998 |
Total liabilities and stockholders’ equity | $ 3,382,738 | $ 2,664,588 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Current assets: | ||
Allowance for doubtful accounts | $ 543 | $ 744 |
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 | 116,125,000 | 114,899,000 |
Common stock, shares outstanding | 116,125,000 | 114,899,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | |||
Revenue | $ 1,458,415 | $ 1,255,631 | $ 1,241,824 |
Cost of revenue: | |||
Cost of revenue | 334,271 | 325,378 | 326,502 |
Gross margin | 1,124,144 | 930,253 | 915,322 |
Operating expenses: | |||
Sales and marketing | 435,451 | 417,449 | 414,764 |
Research and development | 256,575 | 246,888 | 249,786 |
General and administrative | 159,826 | 127,919 | 143,045 |
Amortization of acquired intangible assets | 28,713 | 23,841 | 31,350 |
Restructuring and other charges, net | 32,716 | 51,114 | 3,764 |
Total operating expenses | 913,281 | 867,211 | 842,709 |
Operating income | 210,863 | 63,042 | 72,613 |
Interest and debt premium expense | (76,428) | (43,047) | (41,673) |
Other income (expense), net | 271 | 305 | (2,284) |
Income before income taxes | 134,706 | 20,300 | 28,656 |
Provision (benefit) for income taxes | 4,011 | 47,760 | (23,331) |
Net income (loss) | $ 130,695 | $ (27,460) | $ 51,987 |
Earnings (loss) per share—Basic | $ 1.13 | $ (0.23) | $ 0.45 |
Earnings (loss) per share—Diluted | $ 1.12 | $ (0.23) | $ 0.44 |
Weighted-average shares outstanding—Basic | 115,663 | 117,724 | 116,390 |
Weighted-average shares outstanding—Diluted | 116,267 | 117,724 | 118,158 |
License | |||
Revenue: | |||
Revenue | $ 509,792 | $ 324,400 | $ 529,265 |
Cost of revenue: | |||
Cost of revenue | 53,195 | 51,936 | 47,737 |
Support and cloud services | |||
Revenue: | |||
Revenue | 804,825 | 763,700 | 559,222 |
Cost of revenue: | |||
Cost of revenue | 145,386 | 133,478 | 135,106 |
Software | |||
Revenue: | |||
Revenue | 1,314,617 | 1,088,100 | 1,088,487 |
Cost of revenue: | |||
Cost of revenue | 198,581 | 185,414 | 182,843 |
Professional services | |||
Revenue: | |||
Revenue | 143,798 | 167,531 | 153,337 |
Cost of revenue: | |||
Cost of revenue | $ 135,690 | $ 139,964 | $ 143,659 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 130,695 | $ (27,460) | $ 51,987 |
Other comprehensive income (loss), net of tax: | |||
Hedge gain (loss) arising during the period, net of tax of $1.7 million, $1.7 million, and $0.2 million in 2020, 2019, and 2018, respectively | (13,242) | 5,251 | 1,445 |
Net hedge gain (loss) reclassified into earnings, net of tax of $0 million, $0.1 million, and $0.1 million in 2020, 2019, and 2018, respectively | 0 | (549) | 483 |
Realized and unrealized gain (loss) on hedging instruments | (13,242) | 4,702 | 1,928 |
Foreign currency translation adjustment, net of tax of $0 for all periods | 22,076 | (24,755) | (11,767) |
Unrealized gain on marketable securities, net of tax of $0 for all periods | 188 | 530 | (269) |
Amortization of net actuarial pension gain included in net income, net of tax of $0.9 million, $0.7 million, and $0.7 million in 2020, 2019, and 2018, respectively | 2,983 | 1,691 | 1,629 |
Pension net loss arising during the period net of tax of $0.7 million, $3.6 million, and $1.5 million in 2020, 2019, and 2018, respectively | (2,791) | (8,743) | (3,787) |
Change in unamortized pension gain (loss) during the period related to changes in foreign currency | (1,878) | 1,450 | 588 |
Other comprehensive income (loss) | 7,336 | (25,125) | (11,678) |
Comprehensive income (loss) | $ 138,031 | $ (52,585) | $ 40,309 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Hedge gain (loss) arising during the period, tax | $ 1,700,000 | $ 1,700,000 | $ 200,000 |
Net hedge gain (loss) reclassified into earnings, tax | 0 | 100,000 | 100,000 |
Foreign currency translation adjustment, tax | 0 | 0 | 0 |
Unrealized gain on marketable securities, tax | 0 | 0 | 0 |
Amortization of net actuarial pension gain included in net income, tax | 900,000 | 700,000 | 700,000 |
Tax provision (benefit) related to pension net loss occurring during the year | $ 700,000 | $ 3,600,000 | $ 1,500,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 130,695 | $ (27,460) | $ 51,987 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 80,817 | 77,824 | 87,408 |
Amortization of right-of-use lease assets | 38,687 | 0 | 0 |
Stock-based compensation | 115,149 | 86,400 | 82,939 |
Other non-cash items, net | (3,167) | (4,148) | 534 |
Provision (benefit) from deferred income taxes | (24,641) | 1,708 | (56,556) |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||
Accounts receivable | (32,365) | 29,446 | 20,396 |
Accounts payable and accrued expenses | (5,135) | 16,200 | 5,251 |
Accrued compensation and benefits | 10,282 | (12,098) | (6,988) |
Deferred revenue | 17,046 | 45,875 | 56,141 |
Accrued income taxes | (26,616) | 232 | 10,323 |
Other current assets and prepaid expenses | 36,189 | (2,829) | (10,642) |
Operating lease liabilities | (11,110) | 0 | 0 |
Other noncurrent assets and liabilities | (92,023) | 73,995 | 6,959 |
Net cash provided by operating activities | 233,808 | 285,145 | 247,752 |
Cash flows from investing activities: | |||
Additions to property and equipment | (20,196) | (64,411) | (36,041) |
Purchases of short- and long-term marketable securities | (33,869) | (33,027) | (24,311) |
Proceeds from sales of short- and long-term marketable securities | 1,521 | 1,507 | 0 |
Proceeds from maturities of short- and long-term marketable securities | 30,521 | 30,469 | 18,140 |
Acquisitions of businesses, net of cash acquired | (483,478) | (86,737) | (3,000) |
Purchases of investments | 0 | (7,500) | (1,000) |
Purchase of intangible assets | (11,050) | 0 | (3,000) |
Settlement of net investment hedges | (9,421) | 9,675 | 0 |
Net cash used in investing activities | (525,972) | (150,024) | (49,212) |
Cash flows from financing activities: | |||
Proceeds from issuance of Senior Notes | 1,000,000 | 0 | 0 |
Borrowings under credit facility | 455,000 | 205,000 | 250,000 |
Repayments of Senior Notes | (500,000) | 0 | 0 |
Repayments of borrowings under credit facility | (610,125) | (180,000) | (320,000) |
Repurchases of common stock | 0 | (114,994) | (1,100,000) |
Proceeds from issuance of common stock | 18,382 | 12,975 | 1,015,654 |
Debt issuance costs | (17,107) | 0 | (2,851) |
Contingent consideration | 0 | (1,575) | (8,275) |
Debt early redemption premium | (15,000) | 0 | 0 |
Payments of withholding taxes in connection with stock-based awards | (33,740) | (44,366) | (45,374) |
Net cash provided by (used in) financing activities | 297,410 | (122,960) | (210,846) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 25 | (2,565) | (7,810) |
Net change in cash, cash equivalents, and restricted cash | 5,271 | 9,596 | (20,116) |
Cash, cash equivalents, and restricted cash, beginning of period | 270,689 | 261,093 | 281,209 |
Cash, cash equivalents, and restricted cash, end of period | 275,960 | 270,689 | 261,093 |
Supplemental disclosure of non-cash financing activities: | |||
Fair value of contingent consideration recorded for acquisition | $ 0 | $ 0 | $ 2,100 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Previously Reported | Cash Flow Hedging | Net Investment Hedging | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalPreviously Reported | Accumulated Deficit | Accumulated DeficitPreviously Reported | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCash Flow Hedging | Accumulated Other Comprehensive LossNet Investment Hedging |
Beginning balance at Sep. 30, 2017 | $ 885,436 | $ 1,153 | $ 1,609,030 | $ (650,840) | $ (73,907) | |||||||
Beginning balance (Accounting Standards Update 2016-09) at Sep. 30, 2017 | $ 125 | $ 681 | $ (556) | |||||||||
Beginning balance (in shares) at Sep. 30, 2017 | 115,333,000 | |||||||||||
Common stock issued for employee stock-based awards | $ 18 | (18) | ||||||||||
Common stock issued for employee stock-based awards (in shares) | 1,830,000 | |||||||||||
Shares surrendered by employees to pay taxes related to stock-based awards | (45,374) | $ (6) | (45,368) | |||||||||
Shares surrendered by employees to pay taxes related to stock-based awards (in shares) | (664,000) | |||||||||||
Common stock issued | 995,500 | $ 106 | 995,394 | |||||||||
Common stock issued (in shares) | 10,582,000 | |||||||||||
Common stock issued for employee stock purchase plan | 15,654 | $ 2 | 15,652 | |||||||||
Common stock issued for employee stock purchase plan (in shares) | 292,000 | |||||||||||
Compensation expense from stock-based awards | 82,939 | 82,939 | ||||||||||
Net income (loss) | 51,987 | 51,987 | ||||||||||
Repurchases of common stock | (1,100,000) | $ (93) | (1,099,907) | |||||||||
Repurchases of common stock (in shares) | (9,392,000) | |||||||||||
Unrealized gain (loss) on hedging instruments, net of tax | $ 1,928 | $ 1,928 | ||||||||||
Foreign currency translation adjustment | (11,767) | (11,767) | ||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (269) | (269) | ||||||||||
Change in pension benefits, net of tax | (1,570) | (1,570) | ||||||||||
Ending balance at Sep. 30, 2018 | 874,589 | $ 1,180 | 1,558,403 | (599,409) | (85,585) | |||||||
Ending balance (Accounting Standards Update 2016-16) at Sep. 30, 2018 | 72,261 | 72,261 | ||||||||||
Ending balance (Accounting Standards Update 2014-09) at Sep. 30, 2018 | 363,218 | 363,218 | ||||||||||
Ending balance (in shares) at Sep. 30, 2018 | 117,981,000 | |||||||||||
Common stock issued for employee stock-based awards | $ 15 | (15) | ||||||||||
Common stock issued for employee stock-based awards (in shares) | 1,495,000 | |||||||||||
Shares surrendered by employees to pay taxes related to stock-based awards | (44,366) | $ (5) | (44,361) | |||||||||
Shares surrendered by employees to pay taxes related to stock-based awards (in shares) | (504,000) | |||||||||||
Common stock issued | (140) | (140) | ||||||||||
Common stock issued for employee stock purchase plan | 17,615 | $ 3 | 17,612 | |||||||||
Common stock issued for employee stock purchase plan (in shares) | 275,000 | |||||||||||
Compensation expense from stock-based awards | 86,400 | 86,400 | ||||||||||
Net income (loss) | (27,460) | (27,460) | ||||||||||
Repurchases of common stock | $ (114,994) | $ (44) | (114,950) | |||||||||
Repurchases of common stock (in shares) | (1,400,000) | (4,348,000) | ||||||||||
Unrealized gain (loss) on hedging instruments, net of tax | $ (385) | $ 5,087 | $ (385) | $ 5,087 | ||||||||
Foreign currency translation adjustment | $ (24,755) | (24,755) | ||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 530 | 530 | ||||||||||
Change in pension benefits, net of tax | (5,602) | (5,602) | ||||||||||
Ending balance at Sep. 30, 2019 | $ 1,201,998 | $ 1,149 | 1,502,949 | (191,390) | (110,710) | |||||||
Ending balance (Accounting Standards Update 2016-02) at Sep. 30, 2019 | $ (1,572) | $ (1,572) | ||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 114,899,000 | 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 (loss) | $ 130,695 | 130,695 | ||||||||||
Repurchases of common stock (in shares) | 0 | |||||||||||
Unrealized gain (loss) on hedging instruments, net of tax | $ (13,242) | $ (13,242) | ||||||||||
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 | 116,125,000 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Sep. 30, 2020 | |
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 and services company that delivers a technology platform and solutions to help companies design, manufacture, operate, and service things for a smart, connected world. Risks and Uncertainties - COVID-19 Pandemic In December 2019, the COVID-19 coronavirus surfaced. The virus has spread worldwide, including the United States, and has been declared a pandemic by the World Health Organization. The COVID-19 pandemic has significantly impacted global economic activity and has created macroeconomic uncertainty. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of September 30, 2020, and through the date of this report. The accounting matters assessed included, but were not limited to, our allowance for doubtful accounts, stock-based compensation, the carrying value of our goodwill and other long-lived assets, financial assets, valuation allowances for tax assets and revenue recognition. While there was not a material impact to our consolidated financial statements as of and for the year ended September 30, 2020, resulting from our assessments, our future assessment of our current expectations at that time of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to our consolidated financial statements in future reporting periods. Basis of Presentation Our fiscal year-end is September 30. The consolidated financial statements include PTC Inc. (the parent company) and its wholly owned subsidiaries, including those operating outside the U.S. All intercompany balances and transactions have been eliminated in the consolidated financial statements. We prepare our financial statements under generally accepted accounting principles in the U.S. that require management to make estimates and assumptions that affect the amounts reported and the related disclosures. Actual results could differ from these estimates. Changes in Presentation and Reclassifications On October 1, 2019, we adopted ASU No. 2016-02, Leases: Topic 842 (ASC 842), which replaced the existing guidance in ASC 840, Leases |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
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 foreign currency net losses in the Consolidated Statements of Operations. Revenue Recognition Nature of Products and Services Our sources of revenue include: (1) subscription, (2) perpetual license, (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. Effective October 1, 2018, we record revenues in accordance with the guidance provided by ASC 606, Revenue from Contracts with Customers (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 license, support and professional services, 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 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 Through 2018, we recorded revenues for software-related deliverables in accordance with the guidance provided by ASC 985-605, Software-Revenue Recognition , Revenue Recognition, Multiple-Element Arrangements. 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 that 55% of the estimated standalone selling price for subscriptions is attributable to software licenses and 45% is 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 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 Practical Expedients We elected certain practical expedients with the adoption of the new revenue standard. 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 Our investment portfolio consists of certificates of deposit, commercial paper, corporate notes/bonds and government securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. All unrealized losses are primarily due to changes in market interest rates and/or bond yields. We review our investments to identify and evaluate investments that have an indication of possible impairment. We concluded that, at September 30, 2020, the unrealized losses were temporary. Non-Marketable Equity Investments We account for non-marketable equity investments at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. We monitor non-marketable equity investments for events that could indicate that the investments are impaired, such as deterioration in the investee's financial condition and business forecasts and lower valuations in recent or proposed financings. Changes in fair value of non-marketable equity investments are recorded in o ther income (expense), net on the Consolidated Statements of Operations. In the year ended September 30, 2020, we recorded an impairment charge of $ 0.5 million related to one of our investment s . The carrying value of our non-marketable equity investments is recorded in o ther assets on the Consolidated Balance Sheets and totaled $ 8.9 million and $ 9.4 million as of September 30, 2020 and 2019 , 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, 2020 or 2019 or more than 10% of our revenue for the years ended September 30, 2020, 2019 or 2018. 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. 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 $0.5 million as of September 30, 2020, $0.7 million as of September 30, 2019, and $0.6 million as of September 30, 2018. Uncollectible trade accounts receivable written-off, net of recoveries, were $0.2 million, $0.2 million and $1.0 million in 2020, 2019 and 2018, respectively. Bad debt expense was $0.0 million, $0.3 million and $0.5 million in 2020, 2019 and 2018, respectively, 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 Canada. 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, 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, net investment hedge, and cash flow 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 three months. Generally, we do not designate these foreign currency forward contracts as hedges for accounting purposes and changes in the fair value of these instruments are recognized immediately in earnings. Because we enter into forward contracts only as an economic hedge, any gain or loss on the underlying foreign-denominated balance would be offset by the loss or gain on the forward contract. Gains or losses on the underlying foreign-denominated balance are offset by the loss or gain on the forward contract and are included in foreign currency losses, 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 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 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 seven 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 2020, 2019 or 2018. In 2020, we purchased software of $11.5 million. Additionally, we acquired capitalized software through business combinations (for further detail, see Note 6. Acquisitions 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. 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. 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, including consideration of the impact of the COVID-19 pandemic on our future results; 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 27, 2020, based on a quantitative assessment. The estimated fair value of each reporting unit exceeded its carrying value as of June 27, 2020. Through September 30, 2020, 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 12 years and trademarks are amortized over periods up to 12 years. We review long-lived assets for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. 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 $3.8 million, $3.6 million and $2.9 million in 2020, 2019 and 2018, 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 in the Consolidated Statements of Operations. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which includes foreign currency translation adjustments, 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, 2020, comprised the following: cumulative translation adjustment losses of $69.1 million, unrecognized actuarial losses related to pension benefits of $37.2 million ($26.4 million net of tax), unrecognized gains on marketable securities of $0.3 million ($0.3 million net of tax), and accumulated net losses from net investment hedges of $8.2 million ($8.2 million net of tax). As of September 30, 2019, accumulated other comprehensive loss comprised the following: cumulative translation adjustment losses of $91.2 million, unrecognized actuarial losses related to pension benefits of $34.9 million ($24.8 million net of tax), unrecognized gains on marketable securities of $0.1 million, and accumulated net gains from net investment hedges of $6.8 million ($5.1 million net of tax). Earnings (Loss) per Share (EPS) Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, restricted shares and restricted stock units using the treasury stock method. The calculation of the dilutive effect of outstanding equity awards under the treasury stock method includes consideration of proceeds from the assumed exercise of stock options, unrecognized compensation expense and any tax benefits as additional proceeds. Due to the net loss generated in the year ended September 30, 2019, approximately 1.0 million restricted stock units were excluded from the computation of diluted EPS in that year as the effect would have been anti-dilutive. Anti-dilutive shares excluded from the calculations of diluted EPS were immaterial in the years ended September 30, 2020 and 2018. The following table presents the calculation for both basic and diluted EPS: (in thousands, except per share data) Year ended September 30, 2020 2019 2018 Net income (loss) $ 130,695 $ (27,460 ) $ 51,987 Weighted average shares outstanding 115,663 117,724 116,390 Dilutive effect of employee stock options, restricted shares and restricted stock units 604 — 1,768 Diluted weighted average shares outstanding 116,267 117,724 118,158 Basic earnings (loss) per share $ 1.13 $ (0.23 ) $ 0.45 Diluted earnings (loss) per share $ 1.12 $ (0.23 ) $ 0.44 Stock-Based Compensation We measure the compensation cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. See Note 12. Equity Incentive Plan Note 8. Income Taxes Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2016-02, Leases: Topic 842 (ASC 842), which replaced the existing guidance in ASC 840, Leases We elected the package of practical expedients as permitted under the transition guidance, which allowed us: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and (3) not to reassess the treatment of initial direct costs for existing leases. In addition, we elected an accounting policy not to recognize leases with an initial term of one year or less on the balance sheet. Upon the adoption of this standard on October 1, 2019, we recognized an operating lease liability of $224.0 million, representing the present value of the minimum lease payments remaining as of the adoption date, and a right-of-use asset in the amount of $167.9 million. The right-of-use asset reflects adjustments for derecognition of deferred leasing incentives. We also recorded a $1.6 million decrease to retained earnings as a result of the change in scheduling of reversal of temporary tax differences due to the adoption of ASC 842. Pension Plans In August 2018, FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), which amends, adds and removes disclosure requirements for pension and other postretirement plans. We adopted ASU 2018-14 for the year ended September 30, 2020 with no impact on our consolidated financial statements. See Note 14. Pension Plans 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 . Income Taxes In December 2019, the FASB issued Accounting Standards Update 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 Goodwill and Other—Internal-Use Software In August 2018, the FASB issued 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. ASU 2018-15 will be effective for us in the first quarter of 2021. Entities can choose to adopt the new guidance prospectively or retrospectively. We plan to adopt this standard using the prospective adoption approach. We do not expect this accounting standard to have a material impact on our consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, modifies and adds disclosure requirements for fair value measurements. The new standard will be effective for us in the first quarter of 2021. We do not expect this accounting standard to have a material impact on our consolidated financial statements. Financial Instruments — In June 2016, the FASB issued ASU 2016-13, Financial Instruments — The new standard will be effective for us in the first quarter of 2021. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers We adopted Revenue from Contracts with Customers Contract Assets and Contract Liabilities (in thousands) September 30, 2020 2019 Contract asset $ 11,984 $ 21,038 Deferred revenue $ 426,465 $ 396,632 As of September 30, 2020, $6.9 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 long-term assets and expected to be transferred within the next 24 months. As of September 30, 2019, the entire contract asset balance was included in other current assets. Approximately $15.1 million of the September 30, 2019 contract asset balance was transferred to receivables during the year ended September 30, 2020 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 decrease in contract assets of $9.0 During the year ended September 30, 2020, we recognized $379.8 million of revenue that was included in deferred revenue as of September 30, 2019 and there were additional deferrals of $409.7 million, primarily related to new billings. The additional deferrals include an immaterial amount from the acquisition of Onshape. For subscription contracts, we generally invoice customers annually. The balance of total short- and long-term receivables as of September 30, 2020 was $ 511.3 million, compared to $ 412.5 million as of September 30, 2019 . Costs to Obtain or Fulfill a Contract ASC 606 requires the capitalization of certain incremental costs of obtaining a contract, which impacts the period in which we record our commission expense. Prior to our adoption of ASC 606, we recognized commissions expense as incurred. Under ASC 606, we are required to recognize these expenses over the period of benefit associated with these costs. This results in a deferral of certain commission expenses each period. Upon adoption of ASC 606 on October 1, 2018, we recognized a $70.0 million asset for deferred commission related to contracts that were not completed prior to October 1, 2018. As the revenue recognition pattern has changed under ASC 606, the recognition of costs to fulfill contracts has also changed to match this pattern of recognition. As of October 1, 2018, this resulted in a $2.8 million increase in our accumulated deficit with recognition of an offsetting current liability. 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 five 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, 2020 and September 30, 2019, deferred costs of $33.9 million and $27.7 million, respectively, were included in other current assets and $72.9 million and $64.8 million, respectively, were included in other assets (non-current). Amortization expense related to costs to obtain a contract with a customer was $36.2 million and $30.4 million in the years ended September 30, 2020 and 2019, respectively. There were no impairments of the contract cost asset in the years ended September 30, 2020 and 2019. 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, 2020, the amounts include additional performance obligations of $426.5 million recorded in deferred revenue and $794.4 million that are not yet recorded in the consolidated balance sheets. We expect to recognize approximately 85% of the total $1,220.9 million over the next 24 months, with the remaining amount thereafter. Some of our multi-year subscription contracts with start dates on or after October 1, 2018 contain a limited annual cancellation right. For such contracts, we consider each annual period a discrete contract. Early in the fourth quarter of 2019, we discontinued offering the cancellation right for substantially all new contracts. Remaining performance obligations do not include the cancellable value for subscriptions which contain this clause. Disaggregation of Revenue (in thousands) Year ended September 30, As Reported ASC 606 As Reported ASC 606 ASC 605 As Reported ASC 605 2020 2019 2019 2018 Total recurring revenue $ 1,281,949 $ 1,017,398 $ 1,078,627 $ 978,853 Perpetual license 32,668 70,702 72,191 109,634 Professional services 143,798 167,531 160,676 153,337 Total revenue $ 1,458,415 $ 1,255,631 $ 1,311,494 $ 1,241,824 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, 2020 | |
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 of $5.6 million related to the lease assets of exited facilities. Refer to Note 19. Leases In 2020, restructuring and other charges, net totaled $32.7 million, of which $26.4 million is attributable to restructuring charges, $5.6 million is attributable to impairment and accretion expense related to exited lease facilities, and $0.7 million is 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 the 2016 restructuring). In 2019, restructuring and other charges, net totaled $51.1 million, of which $48.6 million was attributable to restructuring charges ($0.2 million of which related to prior facility restructuring actions) and $2.5 million was attributable to headquarters relocation charges. We made cash payments related to restructuring charges of $24.7 million ($23.6 million related to the 2019 restructuring and $1.1 million related to the 2016 restructuring). In 2018, restructuring and other charges, net totaled $1.0 million, all of which was attributable to restructuring charges (of which $0.2 million related to the 2016 restructuring and $0.8 million related to the 2015 restructuring). We made cash payments related to restructuring charges of $2.8 million ($2.6 million related to the 2016 restructuring and $0.2 million related to the 2015 restructuring). Restructuring Charges During 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. In the year ended September 30, 2020, we incurred $30.8 million in connection with this restructuring plan for termination benefits associated with approximately 250 employees. During the first quarter of 2019, we initiated a restructuring plan to realign our workforce to shift investment to support Industrial Internet of Things and Augmented Reality strategic opportunities. As this was a realignment of resources rather than a cost-savings initiative, it did not result in significant cost savings. The restructuring plan was completed in the first quarter of 2019 and resulted in restructuring charges of $16.3 million for termination benefits associated with approximately 240 employees, substantially all of which has been paid. In the year ended September 30, 2020, we recorded $0.1 million of credits related to this restructuring plan. During the second quarter of 2019, we relocated our worldwide headquarters to the Boston Seaport District. We incurred a restructuring charge for the former headquarters lease, which expires in November 2022. As a result, we bear overlapping rent obligations for those premises and, in 2019, we recorded restructuring charges of approximately $32.7 million, based on the net present value of remaining lease commitments net of estimated sublease income. Other costs associated with the move were recorded as incurred. The following table summarizes restructuring accrual activity for the three years ended September 30, 2020: (in thousands) Employee severance and related benefits Facility closures and other costs Consolidated total Balance, September 30, 2017 $ 1,736 $ 4,508 $ 6,244 Charges (credits) to operations, net (509 ) (494 ) (1,003 ) Cash disbursements (1,247 ) (1,509 ) (2,756 ) Foreign exchange impact 20 (90 ) (70 ) Balance, September 30, 2018 — 2,415 2,415 Charges to operations, net 15,704 32,908 48,612 Cash disbursements (15,402 ) (9,319 ) (24,721 ) Other non-cash charges — 4,812 4,812 Foreign exchange impact (4 ) (28 ) (32 ) 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 The accrual for employee severance and related benefits is included in accrued compensation and benefits in the Consolidated Balance Sheets. Upon adoption of ASC 842, $16.5 million of accrued expenses and other current liabilities, representing the present value of lease commitments net of estimated sublease income, were reclassified to lease assets and obligations: $7.6 million to lease assets, $9.2 million to short-term lease obligations and $14.9 million to long-term lease obligations . As of September 30, 2020, the remaining restructuring facility accrual of $6.0 million relates to variable non-lease costs not subject to ASC 842, of which, $2.8 million is included in accrued expenses and other current liabilities and $3.2 million is included in other liabilities in the Consolidated Balance Sheets. Of the accrual for facility closures and related costs, as of September 30, 2019, $11.9 million is included in accrued expenses and other current liabilities and $18.9 million is included in other liabilities in the Consolidated Balance Sheets. Other - Headquarters Relocation Charges Headquarters relocation charges represent other expenses associated with exiting our prior Needham headquarters facility and relocating to our new worldwide headquarters in the Boston Seaport District. In 2019 and 2018, we recorded $1.9 million and $4.8 million, respectively, of accelerated depreciation expense related to shortening the estimated useful lives of leasehold improvements related to the Needham location. Headquarters relocation charges for 2019 also included $0.6 million of rental expense for the Needham facility that overlapped with rental expense for the new Seaport headquarters. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consisted of the following: (in thousands) September 30, 2020 2019 Computer hardware and software $ 330,392 $ 313,967 Furniture and fixtures 30,251 28,445 Leasehold improvements 99,883 97,657 Gross property and equipment 460,526 440,069 Accumulated depreciation and amortization (359,027 ) (334,538 ) Net property and equipment $ 101,499 $ 105,531 Depreciation expense was $24.7 million, $26.7 million and $29.4 million in 2020, 2019 and 2018, respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 6. Acquisitions Acquisition-related costs were $8.6 million, $3.1 million and $0.5 million in 2020, 2019 and 2018, respectively. Acquisition-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-related charges. 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 2020, our results of operations, if presented on a pro forma basis, would not differ materially from our reported results. Onshape On November 1, 2019, we completed our acquisition of Onshape Inc. pursuant to an Agreement and Plan of Merger dated as of October 23, 2019 by and among Onshape Inc., OPAL Acquisition Corporation and the Stockholder Representative named therein, the material terms of which are described in the Form 8-K filed by PTC on October 23, 2019 and which is filed as Exhibit 1.1 to that Form 8-K. PTC paid approximately $469 million, net of cash acquired of $7.5 million, for Onshape, which amount we borrowed under our existing credit facility. The acquisition of Onshape did not add material revenue in 2020. The acquisition of Onshape 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 judgment 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 $364.9 million of goodwill, $56.8 million of customer relationships, $47.3 million of purchased software, $3.6 million of trademarks and $4.1 million of other net liabilities. The acquired customer relationships, purchased software, and trademarks are being amortized over useful lives of 10 years, 16 years, and 15 years, respectively, based on the expected 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 the expected acceleration of CAD and PLM growth, especially in the low end of the market, and participation in expected future growth of the CAD and PLM SaaS market. In addition, over the longer term, we anticipate building products based on the Onshape SaaS technology platform. Frustum On November 19, 2018, we acquired Frustum Inc. for $69.5 million (net of cash acquired of $0.7 million). We financed the acquisition with borrowings under our credit facility. Frustum engaged in next-generation computer-aided design, including generative design, an approach that leverages artificial intelligence to generate design options. At the time of the acquisition, Frustum had approximately 12 employees and historical annualized revenues were not material. The acquisition of Frustum did not add material revenue in 2019. The acquisition of Frustum 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 resulted in $53.7 million of goodwill, $17.9 million of purchased software and $2.1 million of other net liabilities. The acquired technology is being amortized over a useful life of 15 years based on the expected 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 integrating Frustum generative design technology into our CAD solutions. Other Acquisitions In the fourth quarter of 2020, we completed an acquisition for $15.0 million (net of cash acquired of $0.1 million). At the time of acquisition, the company had approximately 20 employees and historical annualized revenues were not material. This acquisition did not add material revenue in 2020. The acquisition was accounted for as a business combination. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition dates. 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 $12.3 million of goodwill, $3.4 million of purchased software, $0.7 of customer relationships and $1.4 million of other net liabilities. The purchased software and customer relationships are being amortized over useful lives of 7 years and 10 years, respectively, In the third quarter of 2019, we completed two acquisitions for $17.3 million (net of cash acquired of $0.3 million). At the time of acquisitions, the combined companies had approximately 95 employees and historical annualized revenues were not material. These acquisitions did not add material revenue in 2019. The acquisitions were accounted for as business combinations. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition dates. 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 $12.6 million of goodwill, $3.4 million of customer relationships and $1.3 million of other net assets. The acquired goodwill was allocated to our services segment and will not be deductible for income tax purposes. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Sep. 30, 2020 | |
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, 2020, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $1,818.1 million and attributable to our Professional Services segment was $45.3 million. As of September 30, 2019, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $1,362.4 million and attributable to our Professional Services segment was $45.7 million. Goodwill and acquired intangible assets consisted of the following: (in thousands) September 30, 2020 September 30, 2019 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Goodwill (not amortized) $ 1,625,786 $ 1,238,179 Intangible assets with finite lives (amortized) (1) Purchased software $ 443,275 $ 309,124 $ 134,151 $ 377,359 $ 278,144 $ 99,215 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 418,953 322,092 96,861 355,931 288,828 67,103 Trademarks and trade names 22,687 16,129 6,558 18,891 15,260 3,631 Other 4,017 4,017 — 3,910 3,910 — $ 911,809 $ 674,239 $ 237,570 $ 778,968 $ 609,019 $ 169,949 Total goodwill and acquired intangible assets $ 1,863,356 $ 1,408,128 (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, 10 years, and 11 years, respectively. The changes in the carrying amounts of goodwill from September 30, 2019 to September 30, 2020 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 Products Professional Services Total Balance, September 30, 2018 $ 1,152,720 $ 29,737 $ 1,182,457 Frustum acquisition 53,673 — 53,673 Other acquisitions — 12,645 12,645 Foreign currency translation adjustments (10,329 ) (267 ) (10,596 ) Balance, September 30, 2019 $ 1,196,064 $ 42,115 $ 1,238,179 Onshape Acquisition 364,910 — 364,910 Other acquisitions 12,262 — 12,262 Foreign currency translation adjustments 10,080 355 10,435 Balance, September 30, 2020 $ 1,583,316 $ 42,470 $ 1,625,786 The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2020, 2019 and 2018 was reflected in our Consolidated Statements of Operations as follows: (in thousands) Year ended September 30, 2020 2019 2018 Amortization of acquired intangible assets $ 28,713 $ 23,841 $ 31,350 Cost of software revenue 27,391 27,307 26,706 Total amortization expense $ 56,104 $ 51,148 $ 58,056 The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2020 is $52.9 million for 2021, $39.1 million for 2022, $29.0 million for 2023, $20.3 million for 2024, $17.3 million for 2025 and $79.0 million thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Our income (loss) before income taxes consisted of the following: (in thousands) Year ended September 30, 2020 2019 2018 Domestic $ (73,865 ) $ (112,077 ) $ (114,591 ) Foreign 208,571 132,377 143,247 Total income before income taxes $ 134,706 $ 20,300 $ 28,656 Our provision (benefit) for income taxes consisted of the following: (in thousands) Year ended September 30, 2020 2019 2018 Current: Federal $ 2,187 $ 13,130 $ 3,009 State 1,266 (945 ) 2,003 Foreign 25,199 33,867 28,213 28,652 46,052 33,225 Deferred: Federal (26,811 ) 22,911 (12,594 ) State (4,063 ) 1,759 (445 ) Foreign 6,233 (22,962 ) (43,517 ) (24,641 ) 1,708 (56,556 ) Total provision (benefit) for income taxes $ 4,011 $ 47,760 $ (23,331 ) 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, 2020 2019 2018 Statutory federal income tax rate $ 28,288 21 % $ 4,263 21 % $ 7,021 25 % Change in valuation allowance (16,489 ) (12 )% 66,417 327 % (181,047 ) (632 )% Transition impact of U.S. Tax Act — — % — — % 126,122 440 % Federal rate change — — % — — % 69,648 243 % State income taxes, net of federal tax benefit (2,998 ) (2 )% 607 3 % 2,401 8 % Federal research and development credits (5,483 ) (4 )% (3,731 ) (18 )% (3,058 ) (11 )% Uncertain tax positions 3,072 2 % 2,611 13 % (4,646 ) (16 )% Foreign rate differences (22,074 ) (16 )% (26,952 ) (133 )% (38,743 ) (135 )% Foreign tax on U.S. provision 4,523 3 % 6,547 32 % 2,736 10 % Excess tax benefits from restricted stock (1,743 ) (1 )% (5,940 ) (29 )% (11,641 ) (41 )% Audits and settlements — — % 51 — % 2,352 8 % U.S. permanent items 6,590 5 % 2,483 12 % 5,408 19 % BEAT (1,759 ) (1 )% 1,759 9 % — — % GILTI, net of foreign tax credits 14,899 11 % 6,170 31 % — — % Foreign-Derived Intangible Income (FDII) (2,461 ) (2 )% (6,409 ) (32 )% — — % Other, net (354 ) (1 )% (116 ) (1 )% 116 1 % Provision (benefit) for income taxes $ 4,011 3 % $ 47,760 235 % $ (23,331 ) (81 )% In 2020, 2019, and 2018, our tax rate differed from the U.S. statutory federal income tax rate due to 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. In 2020, 2019, and 2018, the foreign rate differential predominantly relates to these Irish earnings. In 2020, in addition to the foreign rate differential, our tax rate differed from the statutory federal income tax rate due to U.S. tax reform, the excess tax benefit related to stock-based compensation and the indirect effects of the adoption of ASC 606. Additionally, 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. On March 27, 2020, the U.S. Federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES ACT”). The CARES Act is an emergency economic stimulus package in response to the COVID-19 pandemic, which among other things contains numerous income tax provisions. We have determined that the impact of the CARES Act was not material to our consolidated financial statements. In 2019, our effective tax rate was higher than the statutory federal income tax rate due in large part to the scheduling of the reversal of existing temporary differences resulting in deferred tax liabilities that cannot be offset against deferred tax assets requiring an increase to the U.S. valuation allowance, U.S. tax reform (as described below) and foreign withholding taxes, an obligation of the U.S. parent. This is offset by foreign rate differences, the excess tax benefit related to stock-based compensation and the indirect effects of the adoption of ASC 606. In 2018, our effective tax rate was lower than the statutory federal income tax rate due to U.S. tax reform, as described below. Additionally, we have a full valuation allowance against deferred tax assets in the U.S., primarily related to net operating losses, tax credit carryforwards, capitalized research and development and deferred revenue. As a result, we have not recorded a benefit related to ongoing U.S. losses. Our foreign rate differential in 2018 includes the continuing rate benefit from a business realignment completed on September 30, 2014 in which intellectual property was transferred between two wholly-owned foreign subsidiaries. The realignment allows us to more efficiently manage the distribution of our products to European customers. In 2018, this realignment resulted in a tax benefit of approximately $24 million. We recorded foreign withholding taxes, an obligation of the U.S. parent, of $2.7 million in 2018. On December 22, 2017, the United States enacted tax reform legislation through the Tax Cuts and Jobs Act, (the "Tax Act"), which significantly changed existing U.S. tax laws by a reduction of the corporate tax rate, the implementation of a new system of taxation for non-U.S. earnings, the imposition of a one-time tax on the deemed repatriation of undistributed earnings of non-U.S. subsidiaries, and the expansion of the limitations on the deductibility of executive compensation and interest expense. As we have a September 30 fiscal year-end, a blended U.S. statutory federal rate of approximately 24.5% applied for our fiscal year ended September 30, 2018 and 21% for subsequent fiscal years. The Tax Act also provides that net operating losses generated in years ending after December 31, 2017 (our fiscal 2018) will be carried forward indefinitely and can no longer be carried back, and that net operating losses generated in years beginning after December 31, 2017 (our fiscal 2019) can only reduce taxable income by up to 80% when utilized in a future period. The Tax Act includes a provision to tax global intangible low-tax income (GILTI) of foreign subsidiaries, a deduction for Foreign-Derived Intangible Income (FDII), and the base erosion anti-abuse tax (BEAT) measure that taxes certain payments between a U.S. corporation and its foreign subsidiaries. The GILTI, FDII and BEAT provisions were effective for us beginning October 1, 2018. Our accounting policy is to treat tax on GILTI as a current period cost included in tax expense in the year incurred. In 2018, we provided no federal income taxes payable as a result of the deemed repatriation of undistributed earnings as the tax was offset by a combination of current year losses and existing attributes which had a full valuation allowance recorded against the related deferred tax assets. In 2018, we recorded state income taxes payable on the deemed repatriation of $1.7 million. We also recorded a deferred tax benefit of $14.1 million for the impact of the Tax Act on our net U.S. deferred income tax balances. This was primarily attributable to the reduction of the federal tax rate on the net deferred tax liability in the U.S., and the ability to realize net operating losses from the reversal of existing deferred tax assets which can now be carried forward indefinitely and can therefore be netted against deferred tax liabilities for indefinite-lived intangible assets. The U.S. Securities and Exchange Commission issued rules that allow for a period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. We finalized recording the impacts of the Tax Act in the quarter ended December 29, 2018 and did not record any significant adjustments. At September 30, 2020 and 2019, income taxes payable and income tax accruals recorded on the accompanying Consolidated Balance Sheets were $15.4 million ($7.0 million in accrued income taxes, $1.0 million in other current liabilities and $7.4 million in other liabilities) and $23.4 million ($17.4 million in accrued income taxes, $0.4 million in other current liabilities and $5.6 million in other liabilities), respectively. At September 30, 2020 and 2019, prepaid taxes recorded in prepaid expenses on the accompanying Consolidated Balance Sheets were $17.3 million and $5.3 million, respectively. We made net income tax payments of $52.6 million, $38.9 million and $22.6 million in 2020, 2019 and 2018, respectively. The significant temporary differences that created deferred tax assets and liabilities are shown below: (in thousands) September 30, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 61,495 $ 26,462 Foreign tax credits 8,074 — Capitalized research and development 30,109 34,560 Pension benefits 14,370 14,838 Prepaid expenses 13,579 41,739 Deferred revenue 6,021 9,899 Stock-based compensation 13,630 12,306 Other reserves not currently deductible 15,130 20,986 Amortization of intangible assets 162,426 168,376 Research and development and other tax credits 70,695 49,995 Lease liabilities 52,224 — Fixed assets 47,457 45,450 Capital loss carryforward 35,851 31,248 Deferred interest — 10,864 Other 1,849 1,623 Gross deferred tax assets 532,910 468,346 Valuation allowance (205,423 ) (177,663 ) Total deferred tax assets 327,487 290,683 Deferred tax liabilities: Acquired intangible assets not deductible (65,894 ) (42,554 ) Lease assets (35,885 ) — Pension prepayments (1,155 ) (2,532 ) Deferred revenue (594 ) (19,312 ) Depreciation (7,481 ) — Unbilled accounts receivable (12,699 ) (31,005 ) Deferred income (5,821 ) (19,040 ) Prepaid commissions (17,124 ) (17,423 ) Other (2,302 ) (1,866 ) Total deferred tax liabilities (148,955 ) (133,732 ) Net deferred tax assets $ 178,532 $ 156,951 In October 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The purpose of ASU 2016-16 is to simplify the income tax accounting of an intra-entity transfer of an asset other than inventory and to record its effect when the transfer occurs. We adopted this standard beginning in the first quarter of 2019 using the modified retrospective method with a cumulative effect adjustment to accumulated deficit of $72.3 million, with a corresponding increase of $75.3 million to deferred tax assets, a $6.0 million decrease to income tax assets and a $3.0 million decrease to income tax liabilities. The adjustment primarily relates to deductible amortization of intangible assets in Ireland. Post adoption, our effective tax rate no longer includes the benefit of this amortization. We have concluded, based on the weight of available evidence, that a full valuation allowance continues to be required against our U.S. net deferred tax assets as they are not more likely than not to be realized in the future. We will continue to reassess our valuation allowance requirements each financial reporting period. For U.S. tax return purposes, net operating loss (NOL) carryforwards and tax credits are generally available to be carried forward to future years, subject to certain limitations. At September 30, 2020, we had U.S. federal NOL carryforwards from acquisitions of $128.7 million, of which $53.2 million expire in 2021 to 2037. The remaining carryforwards of $75.5 million do not expire. The utilization 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, 2020, we had Federal R&D credit carryforwards of $42.2 million, which expire beginning in 2030 and ending in 2040, and Massachusetts R&D credit carryforwards of $26.9 million, which expire beginning in 2021 and ending in 2035. We also had foreign tax credits of $8.1 million, which expire in 2030. A full valuation allowance is recorded against the carryforwards. We also have NOL carryforwards in non-U.S. jurisdictions totaling $58.4 million, the majority of which do not expire, and non-U.S. tax credit carryforwards of $4.4 million that expire beginning in 2030 and ending in 2035. Additionally, we have amortization carryforwards of $907.4 million in a foreign jurisdiction. There are limitations imposed on the utilization of such attributes that could restrict the recognition of any tax benefits. As of September 30, 2020, we have a valuation allowance of $171.3 million against net deferred tax assets in the U.S. and a valuation allowance of $34.1 million against net deferred tax assets in certain foreign jurisdictions. The valuation allowance recorded against net deferred tax assets of certain foreign jurisdictions is established primarily for our 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, 2020 2019 2018 Valuation allowance, beginning of year $ 177,663 $ 141,950 $ 279,683 Net release of valuation allowance (1) — (1,772 ) (2,791 ) Net increase (decrease) in deferred tax assets with a full valuation allowance (2) 27,760 37,485 (134,942 ) Valuation allowance, end of year $ 205,423 $ 177,663 $ 141,950 (1) In 2019 and 2018 this is attributable to the release in foreign jurisdictions. (2) 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. In 2019, this is due in large part to a change in method of accounting for federal income tax purposes resulting in deferred tax liabilities that cannot be offset against available tax attributes in the scheduling of the reversal of existing temporary differences, and by the adoption of ASC 606. In 2018, this is primarily attributable to U.S. tax reform: the utilization of tax attributes used to offset the transition tax, the revaluation of the U.S. net deferred tax assets and liabilities, the ability to realize net operating losses from the reversal of existing deferred tax assets which can now be carried forward indefinitely and can therefore be netted against deferred tax liabilities for indefinite-lived intangibles. 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 2020 and 2019, we recorded interest expense of $0.3 million and $0.1 million, respectively, and in 2018 we reduced interest expense by $0.6 million. In 2020, 2019 and 2018, we had no tax penalty expense in our income tax provision. As of September 30, 2020 and 2019, we had accrued $0.6 million and $0.5 million of net estimated interest expense related to income tax accruals, respectively. We had no accrued tax penalties as of September 30, 2020, 2019 or 2018. Year ended September 30, Unrecognized tax benefits (in thousands) 2020 2019 2018 Unrecognized tax benefit, beginning of year $ 11,484 $ 9,812 $ 14,752 Tax positions related to current year: Additions 2,173 1,466 1,456 Tax positions related to prior years: Additions 2,452 1,375 — Reductions (2 ) (9 ) (4,631 ) Settlements — (1,160 ) — Statute expirations — — (1,765 ) Unrecognized tax benefit, end of year $ 16,107 $ 11,484 $ 9,812 If all of our unrecognized tax benefits as of September 30, 2020 were to become recognizable in the future, we would record a benefit to the income tax provision of $16.1 million (which would be partially offset by an increase in the U.S. valuation allowance of $7.7 next 12 months the amount of unrecognized tax benefits related to the resolution of multi-jurisdictional tax positions could be reduced by up to $ 1 million as audits close and statutes of limitations expire. In the fourth quarter of 2016, we received an assessment of approximately $12 million from the tax authorities in South Korea. The assessment relates to various tax issues, primarily foreign withholding taxes. We have appealed and intend to vigorously defend our positions. We believe that upon completion of a multi-level appeal process it is more likely than not that our positions will be sustained. Accordingly, we have not recorded a tax reserve for this matter. We paid this assessment in the first quarter of 2017 and have recorded the amount in other assets, pending resolution of the appeal process. If the South Korean tax authorities were to prevail then, in addition to the $12 million already assessed, the potential additional exposure through 2020 would be approximately $17 million. We are continuing to work with our advisors during the court process and still believe our position is sustainable. In the normal course of business, PTC and its subsidiaries are examined by various taxing authorities, including the IRS in the U.S. 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 determination of tax audits and any related litigation could result in material changes in our estimates. As of September 30, 2020, we remained subject to examination in the following major tax jurisdictions for the tax years indicated: Major Tax Jurisdiction Open Years United States 2016 through 2020 Germany 2015 through 2020 France 2017 through 2020 Japan 2015 through 2020 Ireland 2016 through 2020 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 utilized in later periods. We incurred expenses related to stock-based compensation in 2020, 2019 and 2018 of $115.1 million, $86.4 million and $82.9 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 $13.4 million, $16.6 million and $28.3 million in 2020, 2019 and 2018, respectively. Upon the settlement of the stock-based awards (i.e., exercise or vesting), 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 2020, 2019 and 2018, windfall tax benefits of $1.3 million, $6.7 million and $13.2 million were recorded to the tax provision. Prior to the adoption of ASU 2016-09, windfall tax benefits were recorded to APIC when they resulted in a reduction in taxes payable. In the first quarter of 2018, as a result of the adoption of ASU 2016-09, we recognized previously unrecognized tax benefits of $37.0 million as increases in deferred tax assets for tax loss carryovers and tax credits, primarily in the U.S. A corresponding increase to the valuation allowance of $36.9 million was recorded because it was not more likely than not that these benefits would be realized. In April 2020, we became aware of a potential new interpretation of a withholding tax law in a non-U.S. jurisdiction and its application to certain transactions that was not previously reasonably knowable by us. We have evaluated this new interpretation and made an estimate of the potential tax liability, a reserve for which was recorded in the third quarter of 2020 and had an immaterial impact to our consolidated financial statements. In July 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. The Company follows the 2015 Tax Court opinion, which was subsequently overturned by the Ninth Circuit Court of Appeals. All appeals have now been exhausted and the Altera decision is considered to be final in the Ninth Circuit. Because the Company does not reside in the Ninth Circuit and is therefore not bound by this decision, we have determined no adjustment is required to the consolidated financial statements as a result of this ruling. Prior to the passage of the U.S. Tax Act, the Company asserted that substantially all of the undistributed earnings of its foreign subsidiaries were considered indefinitely invested 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 U.S. 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, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt As of September 30, 2020 and 2019, we had the following long-term borrowing obligations: (in thousands) September 30, 2020 2019 4.000% Senior notes due 2028 $ 500,000 $ — 3.625% Senior notes due 2025 500,000 — 6.000% Senior notes due 2024 — 500,000 Credit facility revolver (1) 18,000 173,125 Total debt 1,018,000 673,125 Unamortized debt issuance costs for the Senior notes (2) (12,686 ) (3,991 ) Total debt, net of issuance costs (3) $ 1,005,314 $ 669,134 (1) Unamortized debt issuance costs related to the credit facility were $4.9 million and $3.1 million as of September 30, 2020 and 2019, 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 $12.7 million as of September 30, 2020 and were included in long-term debt on the Consolidated Balance Sheet. Unamortized debt issuance costs as of September 30, 2019 related to the 2024 notes and were included in long-term debt on the Consolidated Balance Sheet. (3) As of September 30, 2020 and 2019, 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). In the second quarter of 2020, we used $460 million of the net proceeds from the sale of the notes to repay a portion of the outstanding revolving loan under our credit facility. In the third quarter of 2020, we used the remaining net proceeds from the sale of the notes to redeem the $500 million aggregate principal amount of our outstanding 6.0% senior notes due in 2024 (the 2024 notes). The redemption price for the 2024 notes was 103% of the aggregate principal amount of the notes, plus accrued and unpaid interest. As of September 30, 2020, the total estimated fair value of the 2028 and 2025 senior notes was approximately $515.1 million and $507.5 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, 2020. 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 2025 and 2028 notes in whole or in part at specified redemption prices. In certain circumstances constituting a change of control, we would 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. The new credit facility replaced our prior credit facility. As with the prior credit facility, we expect to use the new credit facility for general corporate purposes, including acquisitions of businesses, share repurchases and working capital requirements. As of September 30, 2020, the fair value of our credit facility approximates its book value. 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, 2020, unused commitments under our credit facility were approximately $982.0 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. 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, 2020, the annual rate for borrowing outstanding was 1.81%. Interest rates on borrowings outstanding under the credit facility range from 1.25% to 1.75% above an adjusted London Interbank Offering Rate (LIBOR) 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 LIBOR plus 1%) for base rate borrowings, in each case based upon PTC’s total leverage ratio. Additionally, PTC may borrow certain foreign currencies at rates set in the same range above the respective LIBOR for those currencies, based on 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: • a 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; • a 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 • an interest coverage ratio, defined as the ratio of consolidated trailing four quarters EBITDA to consolidated trailing our 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, 2020, our total leverage ratio was 2.34 to 1.00, our senior secured leverage ratio was 0.08 to 1.00 and our interest coverage ratio was 5.85 to 1.00 and we were in compliance with all financial and operating covenants of the credit facility. Any failure to comply with the financial or operating covenants of the credit facility would prevent PTC from being able to borrow additional funds, and would constitute a default, permitting the lenders to, among other things, accelerate the amounts outstanding, including all accrued interest and unpaid fees, under the credit facility and to terminate the credit facility. A change in control of PTC, as defined in the agreement, also constitutes an event of default, permitting the lenders to accelerate the indebtedness and terminate the credit facility. We incurred $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 2020, 2019 and 2018, we incurred interest expense of $76.4 million, $43.0 million, and $41.7 million, respectively, and paid $60.6 million, $40.8 million and $39.8 million, respectively, of interest on our debt. Additionally, 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 2020, 2019 and 2018 was approximately 4.3%, 5.4% and 5.2%, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies As of September 30, 2020 and 2019, we had letters of credit and bank guarantees outstanding of $16.4 million (of which $0.5 million was collateralized) and $15.1 million (of which $1.1 million was collateralized), respectively, primarily related to our corporate headquarters lease. Legal and Regulatory Matters Korean Tax Audit In July 2016, we received an assessment from the tax authorities in Korea related to an ongoing tax audit of approximately $12 million. We estimate potential additional exposure of $17 million through 2020. See Note 8. Income Taxes Legal Proceedings 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 (“Plan”), and the Board of Directors in the U.S. District Court for the District of Massachusetts alleging claims regarding the Plan. The case alleges that the defendants breached their fiduciary duties under the Employee Retirement Income Security Act of 1974 ("ERISA") in the oversight of the Plan, principally by selecting and retaining certain investment options despite their higher fees and costs than other available investment options, causing participants in the Plan to pay excessive recordkeeping fees and suffer lower returns on their investments, and by failing to monitor other fiduciaries. The plaintiffs seek unspecified damages on behalf of a class of Plan participants from September 17, 2014 through the date of any judgment. PTC has not yet responded to the complaint, but we believe that defenses are available to us and will defend the case vigorously. We are currently unable to reasonably estimate what effect the ultimate outcome might have, if any, on our financial position, results of operations or cash flows . We are subject to various legal proceedings and claims that arise in the ordinary course of business. We do not believe that resolving the legal proceedings and claims that we are currently subject to will have a material adverse impact on our financial condition, results of operations or cash flows. However, the results of legal proceedings cannot be predicted with certainty. Should any of these legal proceedings and claims be resolved against us, the operating results for a particular reporting period could be adversely affected. Accruals With respect to legal proceedings and claims, we record an accrual for a contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. For legal proceedings and claims for which the likelihood that a liability has been incurred is more than remote but less than probable, we estimate the range of possible outcomes. As of September 30, 2020, we estimate that the range of possible outcomes in legal proceedings and claims is immaterial. Guarantees and Indemnification Obligations We enter into standard indemnification agreements in the ordinary course of our business. Under such agreements with our business partners or customers, we indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to our products, claims relating to property damage or personal injury resulting from the performance of services by us or our subcontractors and data breaches. The maximum potential amount of future payments we could be required to make under indemnification agreements for intellectual property and damage and injury claims is unlimited; in most cases the maximum potential amount for indemnification for data breaches is capped in those contracts. 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 in effect at the time of delivery of the licensed products for a specified period of time. Additionally, we generally warrant that our consulting services will be performed consistent with generally accepted industry standards. In most cases, liability for these warranties is capped. If necessary, we would provide for the estimated cost of product and service warranties based on specific warranty claims and claim history; however, we have not incurred significant cost under our product or services warranties. As a result, we believe the estimated fair value of these liabilities is immaterial. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Sep. 30, 2020 | |
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 authorized us to repurchase up to $1.5 billion of our common stock for the period October 1, 2017 through September 30, 2020. On November 13, 2020, the Board of Directors authorized us to repurchase $1 billion of our common stock 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. We did not repurchase any shares in 2020. As part of a strategic alliance, in the fourth quarter of 2018, Rockwell Automation made a $1 billion equity investment in PTC, by acquiring 10,582,010 shares at a price of $94.50 per share. |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Sep. 30, 2020 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |
Equity Incentive Plan | 12. Equity Incentive Plan Our 2000 Equity Incentive Plan (2000 Plan) provides for grants of nonqualified and incentive stock options, common stock, restricted stock, restricted stock units and stock appreciation rights to employees, directors, officers and consultants. We award restricted stock units (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 restricted stock unit represents the contingent right to receive one share of our common stock. In the fourth quarter of 2020, we modified certain performance-based awards for executives by adjusting the performance criteria for the current and future periods, as well as removing certain provisions for catch up of unearned awards. There was not a material impact in 2020 due to the timing of the modifications, but there is expected to be an increase in stock-based compensation in 2021 and 2022. The fair value of RSUs granted in 2020, 2019 and 2018 was based on the fair market value of our stock on the date of grant for performance- and service-based RSUs and based on Monte Carlo simulation model for total shareholder return (TSR) RSUs. The weighted average fair value per share of restricted stock units granted in 2020, 2019 and 2018 was $77.57, $82.77 and $76.17, respectively. We account for forfeitures as they occur, rather than estimate expected forfeitures. The following table shows total stock-based compensation expense recorded from our stock-based awards as reflected in our Consolidated Statements of Operations: (in thousands) Year ended September 30, 2020 2019 2018 Cost of license revenue $ 47 $ 509 $ 144 Cost of support and cloud services revenue 6,910 5,004 4,302 Cost of professional services revenue 7,012 6,426 7,079 Sales and marketing 37,351 32,026 24,893 Research and development 27,005 22,019 13,488 General and administrative 36,824 20,416 33,033 Total stock-based compensation expense $ 115,149 $ 86,400 $ 82,939 Stock-based compensation expense in 2020, 2019 and 2018 includes $5.8 million, $6.2 million, and $4.3 million respectively, related to our employee stock purchase plan (ESPP). As of September 30, 2020, total unrecognized compensation cost related to unvested restricted stock units expected to vest was approximately $213.5 million and the weighted average remaining recognition period for unvested awards was 19 months. As of September 30, 2020, 5.3 million shares of common stock were available for grant under the 2000 Plan and 3.5 million shares of common stock were reserved for issuance upon the exercise of stock options and vesting of restricted stock units granted and outstanding. Our ESPP, initiated in the fourth quarter of 2016, 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. Restricted stock unit activity for the year ended September 30, 2020 (in thousands, except grant date fair value data) Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Balance of outstanding restricted stock units, October 1, 2019 3,232 $ 80.52 Granted 2,770 $ 77.57 Vested (1,391 ) $ 71.55 Forfeited or not earned (1,102 ) $ 89.09 Balance of outstanding restricted stock units, September 30, 2020 3,509 $ 79.13 $ 290,227 (in thousands) Restricted Stock Units Grant period Performance- based RSUs (1) Service-based RSUs (2) Total Shareholder Return RSUs (3) Year ended September 30, 2020 501 2,168 101 (1) The performance-based RSUs were granted to our executive officers and are eligible to vest based upon annual increasing performance measures, measured over a three-year (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 Total Shareholder Return RSUs (TSR RSUs) were granted to our executives pursuant to the terms described below. As of September 30, 2020, weighted average remaining vesting term for outstanding awards is 1.3 years. The number of TSR RSUs that vest over the three-year period will be determined based on the performance of PTC stock relative to the stock performance of an index of PTC peer companies established as of the grant date, as determined at the end of three measurement periods ending on September 30, 2020, 2021 and 2022, respectively. The RSUs earned for each period will vest on November 15 following each measurement period, up to a maximum of two times the number of TSR RSUs eligible to be earned for the period (up to a maximum aggregate of 202 thousand RSUs). No vesting will occur in a period unless an annual threshold requirement is achieved. If the return to PTC shareholders is negative but still meets or exceeds the peer group indexed return, a maximum of 100% of the TSR RSUs will vest for the measurement period. TSR RSUs not earned in either of the first two measurement periods are eligible to be earned in the third measurement period. The weighted-average fair value of the TSR RSUs was $106.69 The significant assumptions used in the Monte Carlo simulation model were as follows: Average volatility of peer group 28.0 % Risk-free interest rate 1.59 % Dividend yield — % Total fair value of RSUs vested are as follows: (in thousands) Year ended September 30, Value of stock option and stock-based award activity 2020 2019 2018 Total fair value of restricted stock unit awards vested $ 103,265 $ 131,659 $ 127,525 In 2020, shares issued upon vesting of restricted stock units were net of 0.5 million shares retained by us to cover employee tax withholdings of $33.7 million. In 2019, shares issued upon vesting of restricted stock units were net of 0.5 million shares retained by us to cover employee tax withholdings of $44.4 million. In 2018, shares issued upon vesting of restricted stock and restricted stock units were net of 0.7 million shares retained by us to cover employee tax withholdings of $45.4 million. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2020 | |
Deferred Compensation Arrangements [Abstract] | |
Employee Benefit Plan | 13. Employee Benefit Plan We offer a savings plan to eligible U.S. employees. The plan is intended to qualify under Section 401(k) of the Internal Revenue Code. Participating employees may defer a portion of their pre-tax compensation, as defined, but not more than statutory limits. We contribute 50% of the amount contributed by the employee, up to a maximum of 3% of the employee’s earnings. Our matching contributions vest at a rate of 25% per year of service, with full vesting after 4 years of service. We made matching contributions of $6.7 million, $6.0 million, and $5.8 million in 2020, 2019 and 2018, respectively. |
Pension Plans
Pension Plans | 12 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [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: 2020 2019 2018 Weighted average assumptions used to determine benefit obligations at September 30 measurement date: Discount rate 1.1 % 0.9 % 1.9 % Rate of increase in future compensation 2.8 % 2.8 % 3.0 % Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: Discount rate 0.9 % 1.9 % 1.8 % Rate of increase in future compensation 2.8 % 3.0 % 2.8 % Rate of return on plan assets 5.4 % 5.4 % 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, 2020 in the table above, will be used to determine our 2021 net periodic pension cost, which we expect to be approximately $2.3 million. As of September 30, 2020, the weighted average interest crediting rate used in our only cash balance pension plan is 6%. All non-service net periodic pension costs are presented in other income (expense), 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, 2020 2019 2018 Interest cost of projected benefit obligation $ 527 $ 1,199 $ 1,260 Service cost 1,426 1,372 1,535 Expected return on plan assets (3,878 ) (3,728 ) (4,180 ) Amortization of prior service cost (5 ) (5 ) (5 ) Recognized actuarial loss 3,854 2,390 2,293 Settlement loss — (30 ) 9 Net periodic pension cost $ 1,924 $ 1,198 $ 912 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, 2020 2019 Change in benefit obligation: Projected benefit obligation, beginning of year $ 94,983 $ 87,864 Service cost 1,426 1,372 Interest cost 527 1,199 Actuarial (gain) loss (2,835 ) 12,059 Foreign exchange impact 6,452 (4,674 ) Participant contributions 86 154 Benefits paid (2,234 ) (1,836 ) Curtailments (573 ) — Settlements — (1,155 ) Projected benefit obligation, end of year $ 97,832 $ 94,983 Change in plan assets and funded status: Plan assets at fair value, beginning of year $ 69,879 $ 70,141 Actual return on plan assets (2,990 ) 3,512 Employer contributions 2,622 2,576 Participant contributions 86 154 Foreign exchange impact 4,700 (3,513 ) Settlements — (1,155 ) Benefits paid (2,234 ) (1,836 ) Plan assets at fair value—end of year 72,063 69,879 Projected benefit obligation, end of year 97,832 94,983 Underfunded status $ (25,769 ) $ (25,104 ) Accumulated benefit obligation, end of year $ 96,270 $ 92,280 Amounts recognized in the balance sheet: Non-current liability $ (25,437 ) $ (24,868 ) Current liability $ (332 ) $ (236 ) Amounts in accumulated other comprehensive loss: Unrecognized actuarial loss $ 37,175 $ 34,920 As of September 30, 2020 and 2019 all of our pension plans had project benefit obligations and accumulated benefit obligations in excess of plan assets. The following table shows the change in accumulated other comprehensive loss: (in thousands) Year ended September 30, 2020 2019 Accumulated other comprehensive loss, beginning of year $ 34,920 $ 27,027 Recognized during year - net actuarial losses (3,850 ) (2,385 ) Occurring during year - settlement loss — 30 Occurring during year - net actuarial losses 3,460 12,274 Foreign exchange impact 2,645 (2,026 ) Accumulated other comprehensive loss, end of year $ 37,175 $ 34,920 In 2020 our net actuarial losses occurring during the year were primarily driven by poor asset performance due to COVID-19 pandemic, offset by favorable impact on liabilities due primarily to a higher assumed discount rate. The following table shows the percentage of total plan assets for each major category of plan assets: September 30, Asset category 2020 2019 Equity securities 33 % 32 % Fixed income securities 34 % 46 % Commodities 11 % 2 % Insurance company funds 13 % 12 % Options 1 % — % Cash 8 % 8 % 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 2020, 2019 and 2018 our actual return on plan assets was $(3.0) million, $3.5 million and $1.0 million, respectively. Based on actuarial valuations and additional voluntary contributions, we contributed $2.6 million, $2.6 million, and $2.5 million in 2020, 2019 and 2018, respectively, to the plans. We expect to pay $3.5 million in contributions in 2021, of which $0.8 million will be paid directly to the plans. As of September 30, 2020, benefit payments expected to be paid over the next ten years are as follows: (in thousands) Future Benefit Payments 2021 $ 3,813 2022 4,321 2023 4,133 2024 4,822 2025 4,651 2026 to 2030 23,538 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, 2020 Level 1 Level 2 Level 3 Total Fixed income securities: Government $ 20,663 $ — $ — $ 20,663 Corporate investment grade 3,599 — — 3,599 Large capitalization stocks 23,878 — — 23,878 Commodities 7,750 — — 7,750 Insurance company funds (1) — 9,131 — 9,131 Options 1,126 — — 1,126 Cash 5,916 — — 5,916 Total plan assets $ 62,932 $ 9,131 $ — $ 72,063 (in thousands) September 30, 2019 Level 1 Level 2 Level 3 Total Fixed income securities: Government $ 26,996 $ — $ — $ 26,996 Corporate investment grade 4,816 — — 4,816 Large capitalization stocks 22,648 — — 22,648 Commodities 1,086 — — 1,086 Insurance company funds (1) — 8,494 — 8,494 Cash 5,839 — — 5,839 Total plan assets $ 61,385 $ 8,494 $ — $ 69,879 (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, 2020 | |
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, 2020 and 2019 were as follows: (in thousands) September 30, 2020 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 105,299 $ — $ — $ 105,299 Marketable securities: Corporate notes/bonds 59,099 — — 59,099 Forward contracts — 903 — 903 $ 164,398 $ 903 $ — $ 165,301 Financial liabilities: Forward contracts — 1,073 — 1,073 $ — $ 1,073 $ — $ 1,073 (in thousands) September 30, 2019 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 108,020 $ — $ — $ 108,020 Marketable securities: Commercial paper — 999 — 999 Corporate notes/bonds 56,436 — — 56,436 Forward contracts — 3,064 — 3,064 $ 164,456 $ 4,063 $ — $ 168,519 Financial liabilities: Forward contracts — 2,771 — 2,771 $ — $ 2,771 $ — $ 2,771 (1) Money market funds and time deposits. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Sep. 30, 2020 | |
Marketable Securities [Abstract] | |
Marketable Securities | 16. Marketable Securities The amortized cost and fair value of marketable securities as of September 30, 2020 and 2019 were as follows: (in thousands) September 30, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate notes/bonds $ 58,793 $ 323 $ (17 ) $ 59,099 (in thousands) September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Commercial paper $ 999 $ — $ — $ 999 Corporate notes/bonds 56,318 146 (28 ) 56,436 $ 57,317 $ 146 $ (28 ) $ 57,435 The following tables summarize the fair value and gross unrealized losses aggregated by category and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2020 and 2019. (in thousands) September 30, 2020 Less than twelve months Greater than twelve months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss Corporate notes/bonds $ 9,841 $ (17 ) $ — $ — $ 9,841 $ (17 ) (in thousands) September 30, 2019 Less than twelve months Greater than twelve months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss Corporate notes/bonds $ 12,419 $ (14 ) $ 16,369 $ (14 ) $ 28,788 $ (28 ) The following table presents our available-for-sale marketable securities by contractual maturity date as of September 30, 2020 and 2019. (in thousands) September 30, 2020 September 30, 2019 Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 27,727 $ 27,899 $ 27,725 $ 27,735 Due after one year through three years 31,066 31,200 29,592 29,700 $ 58,793 $ 59,099 $ 57,317 $ 57,435 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 17. Derivative Financial Instruments Non-Designated Hedges As of September 30, 2020 and 2019, 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) 2020 2019 Canadian / U.S. Dollar $ 6,847 $ 9,408 Euro / U.S. Dollar 390,673 308,282 British Pound / U.S. Dollar 6,328 3,756 Israeli Shekel / U.S. Dollar 9,503 10,272 Japanese Yen / U.S. Dollar 50,379 37,462 Swiss Franc / U.S. Dollar 12,874 12,001 Swedish Krona / U.S. Dollar 18,871 20,636 Singapore Dollar / U.S. Dollar 3,281 34,585 Chinese Renminbi / U.S. Dollar 5,415 52,466 All other 8,291 9,487 Total $ 512,462 $ 498,355 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, 2020, 2019 and 2018: (in thousands) Year ended September 30, Location of gain (loss) 2020 2019 2018 Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged Other income (expense), net $ 3,518 $ (11,314 ) $ (9,720 ) Cash Flow Hedges We stopped entering into cash flow hedges in the first quarter of 2019. We had no outstanding forward contracts designated as cash flow hedges as of either September 30, 2020 or 2019. The following table shows the effect of our derivative instruments designated as cash flow hedges, all of which were forward contracts, in the Consolidated Statements of Operations for the years ended September 30, 2020, 2019, and 2018: (in thousands) Year ended September 30, Location of gain (loss) 2020 2019 2018 Gain (loss) recognized in OCI—effective portion OCI $ - $ 187 $ 1,652 Gain (loss) reclassified from OCI into income—effective portion Software revenue $ - $ 627 $ (552 ) Gain (loss) recognized—ineffective portion Other income (expense), net $ - $ - $ 21 In the event the underlying forecast transaction does not occur, or it becomes probable that it will not occur, the related hedge gains and losses on the cash flow hedge would be immediately reclassified to other income (expense), net on the Consolidated Statements of Operations. For the years ended September 30, 2020, 2019 and 2018, there were no such gains or losses. Net Investment Hedges As of September 30, 2020 and 2019, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following: September 30, Currency Hedged (in thousands) 2020 2019 Euro / U.S. Dollar $ 164,885 $ 183,396 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, 2020, 2019, and 2018: (in thousands) Year ended September 30, Location of gain (loss) 2020 2019 2018 Gain (loss) recognized in OCI—effective portion OCI $ (5,483 ) $ (2,925 ) $ - Gain (loss) reclassified from OCI—effective portion OCI $ 109 $ (7,630 ) $ - Gain (loss) recognized—portion excluded from effectiveness testing Other income (expense), net $ 3,506 $ 4,598 $ - As of September 30, 2020, 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 Designated As Hedging Instruments Fair Value of Derivatives Not Designated As Hedging Instruments September 30, 2020 2019 2020 2019 Derivative assets: (1) Forward contracts $ 3 $ 1,674 $ 900 $ 1,390 Derivative liabilities: (2) Forward contracts $ 306 $ — $ 767 $ 2,771 ( 1 ) As of September 30, 2020 and 2019, current derivative assets of $0.9 million and $3.1 million, respectively, are recorded in other current assets on the Consolidated Balance Sheets. ( 2 ) As of September 30, 2020 and 2019, current derivative liabilities of $1.1 million and $2.8 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 which 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, 2020: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of September 30, 2020 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 $ 903 $ — $ 903 $ (903 ) $ — $ — The following table sets forth the offsetting of derivative liabilities as of September 30, 2020: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of September 30, 2020 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 $ 1,073 $ — $ 1,073 $ (903 ) $ — $ 170 Net gains and losses on foreign currency exposures, including realized and unrealized gains and losses on forward contracts, included in foreign currency net losses, were net losses of $1.7 million, $3.2 million and $7.0 million in 2020, 2019 and 2018, respectively. Net realized and unrealized gains and losses on forward contracts included in foreign currency net losses were a net gain of $7.0 million in 2020 and net losses of $8.4 million and $7.5 million in 2019 and 2018, respectively. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Sep. 30, 2020 | |
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 President and 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 asset information by reportable segment; therefore, it is not reported. (in thousands) Year ended September 30, As reported ASC 606 As reported ASC 606 ASC 605 As reported ASC 605 2020 2019 2019 2018 Software Products Revenue $ 1,314,617 $ 1,088,100 $ 1,150,818 $ 1,088,487 Operating costs (1) 393,803 377,464 375,268 387,989 Profit 920,814 710,636 775,550 700,498 Professional Services Revenue 143,798 167,531 160,676 153,337 Operating costs (2) 128,678 133,846 128,818 136,964 Profit 15,120 33,685 31,858 16,373 Total segment revenue 1,458,415 1,255,631 1,311,494 1,241,824 Total segment costs 522,481 511,310 504,086 524,953 Total segment profit 935,934 744,321 807,408 716,871 Unallocated operating expenses: (3) Sales and marketing expenses 398,100 385,423 409,932 389,871 General and administrative expenses 114,386 104,393 104,393 108,159 Intangibles amortization 56,104 51,147 51,147 58,056 Restructuring and other charges, net 32,716 51,114 51,114 3,764 Stock-based compensation 115,149 86,400 86,400 82,939 Other unallocated operating expenses (4) 8,616 2,802 2,802 1,469 Total operating income 210,863 63,042 101,620 72,613 Interest expense (76,428 ) (43,047 ) (43,047 ) (41,673 ) Other income (expense), net 271 305 131 (2,284 ) Income before income taxes $ 134,706 $ 20,300 $ 58,704 $ 28,656 (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 $4.2 million, $4.6 million and $5.1 million in 2020, 2019 and 2018, respectively. (2) Operating costs for the Professional Services segment include all costs of professional services revenue, excluding stock-based compensation, intangible amortization, and fair value adjustments for deferred services costs. The Professional Services segment includes depreciation of $1.1 million, $1.4 million and $1.6 million in 2020, 2019 and 2018, respectively. (3) Unallocated departments include depreciation of $19.4 million, $20.6 million and $22.7 million in 2020, 2019 and 2018, respectively. ( 4 ) Other unallocated operating expenses include acquisition-related and other transactional costs and fair value adjustments for deferred services costs. We report revenue by the following three product groups: (in thousands) Year ended September 30, As reported ASC 606 As reported ASC 606 ASC 605 As reported ASC 605 2020 2019 2019 2018 Core $ 1,025,668 $ 868,970 $ 921,386 $ 895,149 Growth 222,646 167,544 175,619 139,278 Focused Solutions Group (FSG) 210,101 219,117 214,489 207,397 Total revenue $ 1,458,415 $ 1,255,631 $ 1,311,494 $ 1,241,824 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 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, As reported ASC 606 As reported ASC 606 ASC 605 As reported ASC 605 2020 2019 2019 2018 Revenue: Americas (1) $ 649,383 $ 537,548 $ 565,362 $ 511,237 Europe (2) 543,779 464,666 494,864 485,851 Asia Pacific 265,253 253,417 251,268 244,736 Total revenue $ 1,458,415 $ 1,255,631 $ 1,311,494 $ 1,241,824 (1) Includes revenue in the United States totaling $621.8 million, $514.4 million (ASC 606) and $541.7 million (ASC 605), and $487.3 million for 2020, 2019 and 2018, respectively. (2) Includes revenue in Germany totaling $198.7 million, $185.4 |
Leases
Leases | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 19. Leases 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 from January 1, 2019 through June 30, 2037. Base rent for the first year of the lease is $11.0 million and will increase 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. The components of lease cost reflected in the Consolidated Statement of Operations for the year ended September 30, 2020 were as follows: (in thousands) Year ended September 30, 2020 Operating lease cost $ 38,687 Short-term lease cost 4,430 Variable lease cost 5,247 Sublease income (4,267 ) Total lease cost $ 44,097 Supplemental cash flow and right-of use assets information for the year ended September 30, 2020 was as follows: (in thousands) Year ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 38,553 Right-of-use assets obtained in exchange for new operating lease liabilities $ 7,632 Right-of-use assets obtained in exchange for new financing lease liabilities $ 1,500 Supplemental balance sheet information related to the leases as of September 30, 2020 was as follows: As of September 30, 2020 Weighted-average remaining lease term - operating leases 12.41 years Weighted-average remaining lease term - financing leases 5 years Weighted-average discount rate - operating leases 5.5 % Weighted-average discount rate - financing leases 3.0 % Maturities of lease liabilities as of September 30, 2020 are as follows: (in thousands) Operating Leases 2021 $ 44,710 2022 30,993 2023 22,326 2024 19,686 2025 17,051 Thereafter 170,303 Total future lease payments 305,069 Less: imputed interest (90,046 ) Total $ 215,023 Under the prior lease standard (ASC 840), as of September 30, 2019 future minimum lease payments under non-cancellable operating leases were as follows: (in thousands) Operating Leases 2020 $ 31,868 2021 33,094 2022 25,624 2023 19,279 2024 16,909 Thereafter 186,037 Total minimum lease payments $ 312,811 Exited (Restructured) Facilities As of September 30, 2020, we have net liabilities of $11.3 million related to excess facilities (compared to $16.5 million at September 30, 2019), representing $3.2 million of right-of-use assets and $14.5 million of lease obligations, of which $9.7 million is classified as short term and $4.8 million is classified as long 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, 2020, the right-of-use assets for exited facilities reflect discounted committed sublease income of approximately $2.8 million and uncommitted sublease income of approximately $0.4 million. 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, 2020, we recorded a facility impairment charge of $4.4 million. In addition, in the year ended September 30, 2020, we exited the former Onshape headquarters lease and recorded a related $1.2 million impairment charge. In the year ended September 30, 2020, we made payments of $10.5 million related to lease costs for exited facilities. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events Credit Facility Revolving Loan Repayment On October 27, 2020, we repaid the $18 million outstanding balance on our revolving credit facility. Stock Repurchase Authorization On November 13, 2020, the Board of Directors authorized us to repurchase $1 billion of our common stock through September 30, 2023. Equity Grants In November 2020, we granted shares valued at approximately $14.0 million to our employees, including our executive officers ($2.6 million), in payment of amounts earned under our annual Corporate Incentive Plan. In November 2020, we granted service-based restricted stock units (RSUs) valued at approximately $53.0 million to employees, including our executive officers ($19.6 million). The service-based RSUs will generally vest in three substantially equal annual installments on November 15, 2021, 2022 and 2023. In November 2020, we granted performance-based restricted stock units (RSUs) valued at approximately $17.0 million to executive officers. The performance-based RSUs will generally vest in three substantially equal annual installments on November 15, 2021, 2022 and 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
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 foreign currency net losses in the Consolidated Statements of Operations. |
Revenue Recognition | Revenue Recognition Nature of Products and Services Our sources of revenue include: (1) subscription, (2) perpetual license, (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. Effective October 1, 2018, we record revenues in accordance with the guidance provided by ASC 606, Revenue from Contracts with Customers (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 license, support and professional services, 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 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 Through 2018, we recorded revenues for software-related deliverables in accordance with the guidance provided by ASC 985-605, Software-Revenue Recognition , Revenue Recognition, Multiple-Element Arrangements. 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 that 55% of the estimated standalone selling price for subscriptions is attributable to software licenses and 45% is 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 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 Practical Expedients We elected certain practical expedients with the adoption of the new revenue standard. 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 Our investment portfolio consists of certificates of deposit, commercial paper, corporate notes/bonds and government securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. All unrealized losses are primarily due to changes in market interest rates and/or bond yields. We review our investments to identify and evaluate investments that have an indication of possible impairment. We concluded that, at September 30, 2020, the unrealized losses were temporary. |
Non-Marketable Equity Investments | Non-Marketable Equity Investments We account for non-marketable equity investments at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. We monitor non-marketable equity investments for events that could indicate that the investments are impaired, such as deterioration in the investee's financial condition and business forecasts and lower valuations in recent or proposed financings. Changes in fair value of non-marketable equity investments are recorded in o ther income (expense), net on the Consolidated Statements of Operations. In the year ended September 30, 2020, we recorded an impairment charge of $ 0.5 million related to one of our investment s . The carrying value of our non-marketable equity investments is recorded in o ther assets on the Consolidated Balance Sheets and totaled $ 8.9 million and $ 9.4 million as of September 30, 2020 and 2019 , 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, 2020 or 2019 or more than 10% of our revenue for the years ended September 30, 2020, 2019 or 2018. |
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. 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 $0.5 million as of September 30, 2020, $0.7 million as of September 30, 2019, and $0.6 million as of September 30, 2018. Uncollectible trade accounts receivable written-off, net of recoveries, were $0.2 million, $0.2 million and $1.0 million in 2020, 2019 and 2018, respectively. Bad debt expense was $0.0 million, $0.3 million and $0.5 million in 2020, 2019 and 2018, respectively, 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 Canada. 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, 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, net investment hedge, and cash flow 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 three months. Generally, we do not designate these foreign currency forward contracts as hedges for accounting purposes and changes in the fair value of these instruments are recognized immediately in earnings. Because we enter into forward contracts only as an economic hedge, any gain or loss on the underlying foreign-denominated balance would be offset by the loss or gain on the forward contract. Gains or losses on the underlying foreign-denominated balance are offset by the loss or gain on the forward contract and are included in foreign currency losses, 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 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 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 seven 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 2020, 2019 or 2018. In 2020, we purchased software of $11.5 million. Additionally, we acquired capitalized software through business combinations (for further detail, see Note 6. Acquisitions |
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. |
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. 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, including consideration of the impact of the COVID-19 pandemic on our future results; 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 27, 2020, based on a quantitative assessment. The estimated fair value of each reporting unit exceeded its carrying value as of June 27, 2020. Through September 30, 2020, 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 12 years and trademarks are amortized over periods up to 12 years. We review long-lived assets for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. 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 $3.8 million, $3.6 million and $2.9 million in 2020, 2019 and 2018, 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 in the Consolidated Statements of Operations. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) 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, 2020, comprised the following: cumulative translation adjustment losses of $69.1 million, unrecognized actuarial losses related to pension benefits of $37.2 million ($26.4 million net of tax), unrecognized gains on marketable securities of $0.3 million ($0.3 million net of tax), and accumulated net losses from net investment hedges of $8.2 million ($8.2 million net of tax). As of September 30, 2019, accumulated other comprehensive loss comprised the following: cumulative translation adjustment losses of $91.2 million, unrecognized actuarial losses related to pension benefits of $34.9 million ($24.8 million net of tax), unrecognized gains on marketable securities of $0.1 million, and accumulated net gains from net investment hedges of $6.8 million ($5.1 million net of tax). |
Earnings (Loss) per Share (EPS) | Earnings (Loss) per Share (EPS) Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, restricted shares and restricted stock units using the treasury stock method. The calculation of the dilutive effect of outstanding equity awards under the treasury stock method includes consideration of proceeds from the assumed exercise of stock options, unrecognized compensation expense and any tax benefits as additional proceeds. Due to the net loss generated in the year ended September 30, 2019, approximately 1.0 million restricted stock units were excluded from the computation of diluted EPS in that year as the effect would have been anti-dilutive. Anti-dilutive shares excluded from the calculations of diluted EPS were immaterial in the years ended September 30, 2020 and 2018. The following table presents the calculation for both basic and diluted EPS: (in thousands, except per share data) Year ended September 30, 2020 2019 2018 Net income (loss) $ 130,695 $ (27,460 ) $ 51,987 Weighted average shares outstanding 115,663 117,724 116,390 Dilutive effect of employee stock options, restricted shares and restricted stock units 604 — 1,768 Diluted weighted average shares outstanding 116,267 117,724 118,158 Basic earnings (loss) per share $ 1.13 $ (0.23 ) $ 0.45 Diluted earnings (loss) per share $ 1.12 $ (0.23 ) $ 0.44 |
Stock-Based Compensation | Stock-Based Compensation We measure the compensation cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. See Note 12. Equity Incentive Plan Note 8. Income Taxes |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2016-02, Leases: Topic 842 (ASC 842), which replaced the existing guidance in ASC 840, Leases We elected the package of practical expedients as permitted under the transition guidance, which allowed us: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and (3) not to reassess the treatment of initial direct costs for existing leases. In addition, we elected an accounting policy not to recognize leases with an initial term of one year or less on the balance sheet. Upon the adoption of this standard on October 1, 2019, we recognized an operating lease liability of $224.0 million, representing the present value of the minimum lease payments remaining as of the adoption date, and a right-of-use asset in the amount of $167.9 million. The right-of-use asset reflects adjustments for derecognition of deferred leasing incentives. We also recorded a $1.6 million decrease to retained earnings as a result of the change in scheduling of reversal of temporary tax differences due to the adoption of ASC 842. Pension Plans In August 2018, FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), which amends, adds and removes disclosure requirements for pension and other postretirement plans. We adopted ASU 2018-14 for the year ended September 30, 2020 with no impact on our consolidated financial statements. See Note 14. Pension Plans 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 . Income Taxes In December 2019, the FASB issued Accounting Standards Update 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 Goodwill and Other—Internal-Use Software In August 2018, the FASB issued 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. ASU 2018-15 will be effective for us in the first quarter of 2021. Entities can choose to adopt the new guidance prospectively or retrospectively. We plan to adopt this standard using the prospective adoption approach. We do not expect this accounting standard to have a material impact on our consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, modifies and adds disclosure requirements for fair value measurements. The new standard will be effective for us in the first quarter of 2021. We do not expect this accounting standard to have a material impact on our consolidated financial statements. Financial Instruments — In June 2016, the FASB issued ASU 2016-13, Financial Instruments — The new standard will be effective for us in the first quarter of 2021. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2018 Net income (loss) $ 130,695 $ (27,460 ) $ 51,987 Weighted average shares outstanding 115,663 117,724 116,390 Dilutive effect of employee stock options, restricted shares and restricted stock units 604 — 1,768 Diluted weighted average shares outstanding 116,267 117,724 118,158 Basic earnings (loss) per share $ 1.13 $ (0.23 ) $ 0.45 Diluted earnings (loss) per share $ 1.12 $ (0.23 ) $ 0.44 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | Contract Assets and Contract Liabilities (in thousands) September 30, 2020 2019 Contract asset $ 11,984 $ 21,038 Deferred revenue $ 426,465 $ 396,632 |
Disaggregation of Revenue | Disaggregation of Revenue (in thousands) Year ended September 30, As Reported ASC 606 As Reported ASC 606 ASC 605 As Reported ASC 605 2020 2019 2019 2018 Total recurring revenue $ 1,281,949 $ 1,017,398 $ 1,078,627 $ 978,853 Perpetual license 32,668 70,702 72,191 109,634 Professional services 143,798 167,531 160,676 153,337 Total revenue $ 1,458,415 $ 1,255,631 $ 1,311,494 $ 1,241,824 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2020: (in thousands) Employee severance and related benefits Facility closures and other costs Consolidated total Balance, September 30, 2017 $ 1,736 $ 4,508 $ 6,244 Charges (credits) to operations, net (509 ) (494 ) (1,003 ) Cash disbursements (1,247 ) (1,509 ) (2,756 ) Foreign exchange impact 20 (90 ) (70 ) Balance, September 30, 2018 — 2,415 2,415 Charges to operations, net 15,704 32,908 48,612 Cash disbursements (15,402 ) (9,319 ) (24,721 ) Other non-cash charges — 4,812 4,812 Foreign exchange impact (4 ) (28 ) (32 ) 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 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following: (in thousands) September 30, 2020 2019 Computer hardware and software $ 330,392 $ 313,967 Furniture and fixtures 30,251 28,445 Leasehold improvements 99,883 97,657 Gross property and equipment 460,526 440,069 Accumulated depreciation and amortization (359,027 ) (334,538 ) Net property and equipment $ 101,499 $ 105,531 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2020 September 30, 2019 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Goodwill (not amortized) $ 1,625,786 $ 1,238,179 Intangible assets with finite lives (amortized) (1) Purchased software $ 443,275 $ 309,124 $ 134,151 $ 377,359 $ 278,144 $ 99,215 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 418,953 322,092 96,861 355,931 288,828 67,103 Trademarks and trade names 22,687 16,129 6,558 18,891 15,260 3,631 Other 4,017 4,017 — 3,910 3,910 — $ 911,809 $ 674,239 $ 237,570 $ 778,968 $ 609,019 $ 169,949 Total goodwill and acquired intangible assets $ 1,863,356 $ 1,408,128 (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, 10 years, and 11 years, respectively. |
Schedule of Changes in Goodwill by Reportable Segment | Changes in goodwill presented by reportable segment were as follows: (in thousands) Software Products Professional Services Total Balance, September 30, 2018 $ 1,152,720 $ 29,737 $ 1,182,457 Frustum acquisition 53,673 — 53,673 Other acquisitions — 12,645 12,645 Foreign currency translation adjustments (10,329 ) (267 ) (10,596 ) Balance, September 30, 2019 $ 1,196,064 $ 42,115 $ 1,238,179 Onshape Acquisition 364,910 — 364,910 Other acquisitions 12,262 — 12,262 Foreign currency translation adjustments 10,080 355 10,435 Balance, September 30, 2020 $ 1,583,316 $ 42,470 $ 1,625,786 |
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, 2020, 2019 and 2018 was reflected in our Consolidated Statements of Operations as follows: (in thousands) Year ended September 30, 2020 2019 2018 Amortization of acquired intangible assets $ 28,713 $ 23,841 $ 31,350 Cost of software revenue 27,391 27,307 26,706 Total amortization expense $ 56,104 $ 51,148 $ 58,056 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary Of Income (Loss) Before Income Taxes | Our income (loss) before income taxes consisted of the following: (in thousands) Year ended September 30, 2020 2019 2018 Domestic $ (73,865 ) $ (112,077 ) $ (114,591 ) Foreign 208,571 132,377 143,247 Total income before income taxes $ 134,706 $ 20,300 $ 28,656 |
Schedule Of Provision For (Benefit From) Income Taxes | Our provision (benefit) for income taxes consisted of the following: (in thousands) Year ended September 30, 2020 2019 2018 Current: Federal $ 2,187 $ 13,130 $ 3,009 State 1,266 (945 ) 2,003 Foreign 25,199 33,867 28,213 28,652 46,052 33,225 Deferred: Federal (26,811 ) 22,911 (12,594 ) State (4,063 ) 1,759 (445 ) Foreign 6,233 (22,962 ) (43,517 ) (24,641 ) 1,708 (56,556 ) Total provision (benefit) for income taxes $ 4,011 $ 47,760 $ (23,331 ) |
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, 2020 2019 2018 Statutory federal income tax rate $ 28,288 21 % $ 4,263 21 % $ 7,021 25 % Change in valuation allowance (16,489 ) (12 )% 66,417 327 % (181,047 ) (632 )% Transition impact of U.S. Tax Act — — % — — % 126,122 440 % Federal rate change — — % — — % 69,648 243 % State income taxes, net of federal tax benefit (2,998 ) (2 )% 607 3 % 2,401 8 % Federal research and development credits (5,483 ) (4 )% (3,731 ) (18 )% (3,058 ) (11 )% Uncertain tax positions 3,072 2 % 2,611 13 % (4,646 ) (16 )% Foreign rate differences (22,074 ) (16 )% (26,952 ) (133 )% (38,743 ) (135 )% Foreign tax on U.S. provision 4,523 3 % 6,547 32 % 2,736 10 % Excess tax benefits from restricted stock (1,743 ) (1 )% (5,940 ) (29 )% (11,641 ) (41 )% Audits and settlements — — % 51 — % 2,352 8 % U.S. permanent items 6,590 5 % 2,483 12 % 5,408 19 % BEAT (1,759 ) (1 )% 1,759 9 % — — % GILTI, net of foreign tax credits 14,899 11 % 6,170 31 % — — % Foreign-Derived Intangible Income (FDII) (2,461 ) (2 )% (6,409 ) (32 )% — — % Other, net (354 ) (1 )% (116 ) (1 )% 116 1 % Provision (benefit) for income taxes $ 4,011 3 % $ 47,760 235 % $ (23,331 ) (81 )% |
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, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 61,495 $ 26,462 Foreign tax credits 8,074 — Capitalized research and development 30,109 34,560 Pension benefits 14,370 14,838 Prepaid expenses 13,579 41,739 Deferred revenue 6,021 9,899 Stock-based compensation 13,630 12,306 Other reserves not currently deductible 15,130 20,986 Amortization of intangible assets 162,426 168,376 Research and development and other tax credits 70,695 49,995 Lease liabilities 52,224 — Fixed assets 47,457 45,450 Capital loss carryforward 35,851 31,248 Deferred interest — 10,864 Other 1,849 1,623 Gross deferred tax assets 532,910 468,346 Valuation allowance (205,423 ) (177,663 ) Total deferred tax assets 327,487 290,683 Deferred tax liabilities: Acquired intangible assets not deductible (65,894 ) (42,554 ) Lease assets (35,885 ) — Pension prepayments (1,155 ) (2,532 ) Deferred revenue (594 ) (19,312 ) Depreciation (7,481 ) — Unbilled accounts receivable (12,699 ) (31,005 ) Deferred income (5,821 ) (19,040 ) Prepaid commissions (17,124 ) (17,423 ) Other (2,302 ) (1,866 ) Total deferred tax liabilities (148,955 ) (133,732 ) Net deferred tax assets $ 178,532 $ 156,951 |
Summary Of Valuation Allowance | The changes to the valuation allowance were primarily due to the following: (in thousands) Year ended September 30, 2020 2019 2018 Valuation allowance, beginning of year $ 177,663 $ 141,950 $ 279,683 Net release of valuation allowance (1) — (1,772 ) (2,791 ) Net increase (decrease) in deferred tax assets with a full valuation allowance (2) 27,760 37,485 (134,942 ) Valuation allowance, end of year $ 205,423 $ 177,663 $ 141,950 (1) In 2019 and 2018 this is attributable to the release in foreign jurisdictions. (2) 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. In 2019, this is due in large part to a change in method of accounting for federal income tax purposes resulting in deferred tax liabilities that cannot be offset against available tax attributes in the scheduling of the reversal of existing temporary differences, and by the adoption of ASC 606. In 2018, this is primarily attributable to U.S. tax reform: the utilization of tax attributes used to offset the transition tax, the revaluation of the U.S. net deferred tax assets and liabilities, the ability to realize net operating losses from the reversal of existing deferred tax assets which can now be carried forward indefinitely and can therefore be netted against deferred tax liabilities for indefinite-lived intangibles. |
Schedule Of Unrecognized Tax Benefit | Year ended September 30, Unrecognized tax benefits (in thousands) 2020 2019 2018 Unrecognized tax benefit, beginning of year $ 11,484 $ 9,812 $ 14,752 Tax positions related to current year: Additions 2,173 1,466 1,456 Tax positions related to prior years: Additions 2,452 1,375 — Reductions (2 ) (9 ) (4,631 ) Settlements — (1,160 ) — Statute expirations — — (1,765 ) Unrecognized tax benefit, end of year $ 16,107 $ 11,484 $ 9,812 |
Summary Of Income Tax Examinations Years | As of September 30, 2020, we remained subject to examination in the following major tax jurisdictions for the tax years indicated: Major Tax Jurisdiction Open Years United States 2016 through 2020 Germany 2015 through 2020 France 2017 through 2020 Japan 2015 through 2020 Ireland 2016 through 2020 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowing Obligations | As of September 30, 2020 and 2019, we had the following long-term borrowing obligations: (in thousands) September 30, 2020 2019 4.000% Senior notes due 2028 $ 500,000 $ — 3.625% Senior notes due 2025 500,000 — 6.000% Senior notes due 2024 — 500,000 Credit facility revolver (1) 18,000 173,125 Total debt 1,018,000 673,125 Unamortized debt issuance costs for the Senior notes (2) (12,686 ) (3,991 ) Total debt, net of issuance costs (3) $ 1,005,314 $ 669,134 (1) Unamortized debt issuance costs related to the credit facility were $4.9 million and $3.1 million as of September 30, 2020 and 2019, 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 $12.7 million as of September 30, 2020 and were included in long-term debt on the Consolidated Balance Sheet. Unamortized debt issuance costs as of September 30, 2019 related to the 2024 notes and were included in long-term debt on the Consolidated Balance Sheet. (3) As of September 30, 2020 and 2019, all debt was classified as long term. |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |
Schedule of Classification of Compensation Expense | The following table shows total stock-based compensation expense recorded from our stock-based awards as reflected in our Consolidated Statements of Operations: (in thousands) Year ended September 30, 2020 2019 2018 Cost of license revenue $ 47 $ 509 $ 144 Cost of support and cloud services revenue 6,910 5,004 4,302 Cost of professional services revenue 7,012 6,426 7,079 Sales and marketing 37,351 32,026 24,893 Research and development 27,005 22,019 13,488 General and administrative 36,824 20,416 33,033 Total stock-based compensation expense $ 115,149 $ 86,400 $ 82,939 |
Schedule of Restricted Stock Unit Activity and Grants for the Period | Restricted stock unit activity for the year ended September 30, 2020 (in thousands, except grant date fair value data) Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Balance of outstanding restricted stock units, October 1, 2019 3,232 $ 80.52 Granted 2,770 $ 77.57 Vested (1,391 ) $ 71.55 Forfeited or not earned (1,102 ) $ 89.09 Balance of outstanding restricted stock units, September 30, 2020 3,509 $ 79.13 $ 290,227 (in thousands) Restricted Stock Units Grant period Performance- based RSUs (1) Service-based RSUs (2) Total Shareholder Return RSUs (3) Year ended September 30, 2020 501 2,168 101 (1) The performance-based RSUs were granted to our executive officers and are eligible to vest based upon annual increasing performance measures, measured over a three-year (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 Total Shareholder Return RSUs (TSR RSUs) were granted to our executives pursuant to the terms described below. |
Schedule of Valuation Assumptions | The significant assumptions used in the Monte Carlo simulation model were as follows: Average volatility of peer group 28.0 % Risk-free interest rate 1.59 % Dividend yield — % |
Schedule of Total Fair Value of RSUs Vested | Total fair value of RSUs vested are as follows: (in thousands) Year ended September 30, Value of stock option and stock-based award activity 2020 2019 2018 Total fair value of restricted stock unit awards vested $ 103,265 $ 131,659 $ 127,525 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Accounting For The Pension Plans | The following table presents the actuarial assumptions used in accounting for the pension plans: 2020 2019 2018 Weighted average assumptions used to determine benefit obligations at September 30 measurement date: Discount rate 1.1 % 0.9 % 1.9 % Rate of increase in future compensation 2.8 % 2.8 % 3.0 % Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: Discount rate 0.9 % 1.9 % 1.8 % Rate of increase in future compensation 2.8 % 3.0 % 2.8 % Rate of return on plan assets 5.4 % 5.4 % 5.4 % |
Components of Net Periodic Pension Cost | All non-service net periodic pension costs are presented in other income (expense), 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, 2020 2019 2018 Interest cost of projected benefit obligation $ 527 $ 1,199 $ 1,260 Service cost 1,426 1,372 1,535 Expected return on plan assets (3,878 ) (3,728 ) (4,180 ) Amortization of prior service cost (5 ) (5 ) (5 ) Recognized actuarial loss 3,854 2,390 2,293 Settlement loss — (30 ) 9 Net periodic pension cost $ 1,924 $ 1,198 $ 912 |
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, 2020 2019 Change in benefit obligation: Projected benefit obligation, beginning of year $ 94,983 $ 87,864 Service cost 1,426 1,372 Interest cost 527 1,199 Actuarial (gain) loss (2,835 ) 12,059 Foreign exchange impact 6,452 (4,674 ) Participant contributions 86 154 Benefits paid (2,234 ) (1,836 ) Curtailments (573 ) — Settlements — (1,155 ) Projected benefit obligation, end of year $ 97,832 $ 94,983 Change in plan assets and funded status: Plan assets at fair value, beginning of year $ 69,879 $ 70,141 Actual return on plan assets (2,990 ) 3,512 Employer contributions 2,622 2,576 Participant contributions 86 154 Foreign exchange impact 4,700 (3,513 ) Settlements — (1,155 ) Benefits paid (2,234 ) (1,836 ) Plan assets at fair value—end of year 72,063 69,879 Projected benefit obligation, end of year 97,832 94,983 Underfunded status $ (25,769 ) $ (25,104 ) Accumulated benefit obligation, end of year $ 96,270 $ 92,280 Amounts recognized in the balance sheet: Non-current liability $ (25,437 ) $ (24,868 ) Current liability $ (332 ) $ (236 ) Amounts in accumulated other comprehensive loss: Unrecognized actuarial loss $ 37,175 $ 34,920 |
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, 2020 2019 Accumulated other comprehensive loss, beginning of year $ 34,920 $ 27,027 Recognized during year - net actuarial losses (3,850 ) (2,385 ) Occurring during year - settlement loss — 30 Occurring during year - net actuarial losses 3,460 12,274 Foreign exchange impact 2,645 (2,026 ) Accumulated other comprehensive loss, end of year $ 37,175 $ 34,920 |
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 2020 2019 Equity securities 33 % 32 % Fixed income securities 34 % 46 % Commodities 11 % 2 % Insurance company funds 13 % 12 % Options 1 % — % Cash 8 % 8 % 100 % 100 % |
Expected Future Benefit Payments | As of September 30, 2020, benefit payments expected to be paid over the next ten years are as follows: (in thousands) Future Benefit Payments 2021 $ 3,813 2022 4,321 2023 4,133 2024 4,822 2025 4,651 2026 to 2030 23,538 |
Fair Value of Plan Assets | (in thousands) September 30, 2020 Level 1 Level 2 Level 3 Total Fixed income securities: Government $ 20,663 $ — $ — $ 20,663 Corporate investment grade 3,599 — — 3,599 Large capitalization stocks 23,878 — — 23,878 Commodities 7,750 — — 7,750 Insurance company funds (1) — 9,131 — 9,131 Options 1,126 — — 1,126 Cash 5,916 — — 5,916 Total plan assets $ 62,932 $ 9,131 $ — $ 72,063 (in thousands) September 30, 2019 Level 1 Level 2 Level 3 Total Fixed income securities: Government $ 26,996 $ — $ — $ 26,996 Corporate investment grade 4,816 — — 4,816 Large capitalization stocks 22,648 — — 22,648 Commodities 1,086 — — 1,086 Insurance company funds (1) — 8,494 — 8,494 Cash 5,839 — — 5,839 Total plan assets $ 61,385 $ 8,494 $ — $ 69,879 (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, 2020 | |
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, 2020 and 2019 were as follows: (in thousands) September 30, 2020 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 105,299 $ — $ — $ 105,299 Marketable securities: Corporate notes/bonds 59,099 — — 59,099 Forward contracts — 903 — 903 $ 164,398 $ 903 $ — $ 165,301 Financial liabilities: Forward contracts — 1,073 — 1,073 $ — $ 1,073 $ — $ 1,073 (in thousands) September 30, 2019 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 108,020 $ — $ — $ 108,020 Marketable securities: Commercial paper — 999 — 999 Corporate notes/bonds 56,436 — — 56,436 Forward contracts — 3,064 — 3,064 $ 164,456 $ 4,063 $ — $ 168,519 Financial liabilities: Forward contracts — 2,771 — 2,771 $ — $ 2,771 $ — $ 2,771 (1) Money market funds and time deposits. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Marketable Securities [Abstract] | |
Marketable Securities | The amortized cost and fair value of marketable securities as of September 30, 2020 and 2019 were as follows: (in thousands) September 30, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate notes/bonds $ 58,793 $ 323 $ (17 ) $ 59,099 (in thousands) September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Commercial paper $ 999 $ — $ — $ 999 Corporate notes/bonds 56,318 146 (28 ) 56,436 $ 57,317 $ 146 $ (28 ) $ 57,435 |
Unrealized Gain (Loss) on Investments | The following tables summarize the fair value and gross unrealized losses aggregated by category and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2020 and 2019. (in thousands) September 30, 2020 Less than twelve months Greater than twelve months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss Corporate notes/bonds $ 9,841 $ (17 ) $ — $ — $ 9,841 $ (17 ) (in thousands) September 30, 2019 Less than twelve months Greater than twelve months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss Corporate notes/bonds $ 12,419 $ (14 ) $ 16,369 $ (14 ) $ 28,788 $ (28 ) |
Investments Classified by Contractual Maturity Date | The following table presents our available-for-sale marketable securities by contractual maturity date as of September 30, 2020 and 2019. (in thousands) September 30, 2020 September 30, 2019 Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 27,727 $ 27,899 $ 27,725 $ 27,735 Due after one year through three years 31,066 31,200 29,592 29,700 $ 58,793 $ 59,099 $ 57,317 $ 57,435 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Forward Contracts | As of September 30, 2020 and 2019, 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) 2020 2019 Canadian / U.S. Dollar $ 6,847 $ 9,408 Euro / U.S. Dollar 390,673 308,282 British Pound / U.S. Dollar 6,328 3,756 Israeli Shekel / U.S. Dollar 9,503 10,272 Japanese Yen / U.S. Dollar 50,379 37,462 Swiss Franc / U.S. Dollar 12,874 12,001 Swedish Krona / U.S. Dollar 18,871 20,636 Singapore Dollar / U.S. Dollar 3,281 34,585 Chinese Renminbi / U.S. Dollar 5,415 52,466 All other 8,291 9,487 Total $ 512,462 $ 498,355 As of September 30, 2020 and 2019, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following: September 30, Currency Hedged (in thousands) 2020 2019 Euro / U.S. Dollar $ 164,885 $ 183,396 |
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, 2020, 2019 and 2018: (in thousands) Year ended September 30, Location of gain (loss) 2020 2019 2018 Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged Other income (expense), net $ 3,518 $ (11,314 ) $ (9,720 ) The following table shows the effect of our derivative instruments designated as cash flow hedges, all of which were forward contracts, in the Consolidated Statements of Operations for the years ended September 30, 2020, 2019, and 2018: (in thousands) Year ended September 30, Location of gain (loss) 2020 2019 2018 Gain (loss) recognized in OCI—effective portion OCI $ - $ 187 $ 1,652 Gain (loss) reclassified from OCI into income—effective portion Software revenue $ - $ 627 $ (552 ) Gain (loss) recognized—ineffective portion Other income (expense), net $ - $ - $ 21 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, 2020, 2019, and 2018: (in thousands) Year ended September 30, Location of gain (loss) 2020 2019 2018 Gain (loss) recognized in OCI—effective portion OCI $ (5,483 ) $ (2,925 ) $ - Gain (loss) reclassified from OCI—effective portion OCI $ 109 $ (7,630 ) $ - Gain (loss) recognized—portion excluded from effectiveness testing Other income (expense), net $ 3,506 $ 4,598 $ - |
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 Designated As Hedging Instruments Fair Value of Derivatives Not Designated As Hedging Instruments September 30, 2020 2019 2020 2019 Derivative assets: (1) Forward contracts $ 3 $ 1,674 $ 900 $ 1,390 Derivative liabilities: (2) Forward contracts $ 306 $ — $ 767 $ 2,771 ( 1 ) As of September 30, 2020 and 2019, current derivative assets of $0.9 million and $3.1 million, respectively, are recorded in other current assets on the Consolidated Balance Sheets. ( 2 ) As of September 30, 2020 and 2019, current derivative liabilities of $1.1 million and $2.8 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, 2020: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of September 30, 2020 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 $ 903 $ — $ 903 $ (903 ) $ — $ — |
Schedule of Offsetting Liabilities | The following table sets forth the offsetting of derivative liabilities as of September 30, 2020: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of September 30, 2020 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 $ 1,073 $ — $ 1,073 $ (903 ) $ — $ 170 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 asset information by reportable segment; therefore, it is not reported. (in thousands) Year ended September 30, As reported ASC 606 As reported ASC 606 ASC 605 As reported ASC 605 2020 2019 2019 2018 Software Products Revenue $ 1,314,617 $ 1,088,100 $ 1,150,818 $ 1,088,487 Operating costs (1) 393,803 377,464 375,268 387,989 Profit 920,814 710,636 775,550 700,498 Professional Services Revenue 143,798 167,531 160,676 153,337 Operating costs (2) 128,678 133,846 128,818 136,964 Profit 15,120 33,685 31,858 16,373 Total segment revenue 1,458,415 1,255,631 1,311,494 1,241,824 Total segment costs 522,481 511,310 504,086 524,953 Total segment profit 935,934 744,321 807,408 716,871 Unallocated operating expenses: (3) Sales and marketing expenses 398,100 385,423 409,932 389,871 General and administrative expenses 114,386 104,393 104,393 108,159 Intangibles amortization 56,104 51,147 51,147 58,056 Restructuring and other charges, net 32,716 51,114 51,114 3,764 Stock-based compensation 115,149 86,400 86,400 82,939 Other unallocated operating expenses (4) 8,616 2,802 2,802 1,469 Total operating income 210,863 63,042 101,620 72,613 Interest expense (76,428 ) (43,047 ) (43,047 ) (41,673 ) Other income (expense), net 271 305 131 (2,284 ) Income before income taxes $ 134,706 $ 20,300 $ 58,704 $ 28,656 (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 $4.2 million, $4.6 million and $5.1 million in 2020, 2019 and 2018, respectively. (2) Operating costs for the Professional Services segment include all costs of professional services revenue, excluding stock-based compensation, intangible amortization, and fair value adjustments for deferred services costs. The Professional Services segment includes depreciation of $1.1 million, $1.4 million and $1.6 million in 2020, 2019 and 2018, respectively. (3) Unallocated departments include depreciation of $19.4 million, $20.6 million and $22.7 million in 2020, 2019 and 2018, respectively. ( 4 ) Other unallocated operating expenses include acquisition-related and other transactional costs and fair value adjustments for deferred services 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, As reported ASC 606 As reported ASC 606 ASC 605 As reported ASC 605 2020 2019 2019 2018 Revenue: Americas (1) $ 649,383 $ 537,548 $ 565,362 $ 511,237 Europe (2) 543,779 464,666 494,864 485,851 Asia Pacific 265,253 253,417 251,268 244,736 Total revenue $ 1,458,415 $ 1,255,631 $ 1,311,494 $ 1,241,824 (1) Includes revenue in the United States totaling $621.8 million, $514.4 million (ASC 606) and $541.7 million (ASC 605), and $487.3 million for 2020, 2019 and 2018, respectively. (2) Includes revenue in Germany totaling $198.7 million, $185.4 |
Products and Services Segments [Member] | |
Segment Reporting Information [Line Items] | |
Summary of Revenue and Profit Attributable to Our Operating Segments | We report revenue by the following three product groups: (in thousands) Year ended September 30, As reported ASC 606 As reported ASC 606 ASC 605 As reported ASC 605 2020 2019 2019 2018 Core $ 1,025,668 $ 868,970 $ 921,386 $ 895,149 Growth 222,646 167,544 175,619 139,278 Focused Solutions Group (FSG) 210,101 219,117 214,489 207,397 Total revenue $ 1,458,415 $ 1,255,631 $ 1,311,494 $ 1,241,824 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost reflected in the Consolidated Statement of Operations for the year ended September 30, 2020 were as follows: (in thousands) Year ended September 30, 2020 Operating lease cost $ 38,687 Short-term lease cost 4,430 Variable lease cost 5,247 Sublease income (4,267 ) Total lease cost $ 44,097 Supplemental cash flow and right-of use assets information for the year ended September 30, 2020 was as follows: (in thousands) Year ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 38,553 Right-of-use assets obtained in exchange for new operating lease liabilities $ 7,632 Right-of-use assets obtained in exchange for new financing lease liabilities $ 1,500 Supplemental balance sheet information related to the leases as of September 30, 2020 was as follows: As of September 30, 2020 Weighted-average remaining lease term - operating leases 12.41 years Weighted-average remaining lease term - financing leases 5 years Weighted-average discount rate - operating leases 5.5 % Weighted-average discount rate - financing leases 3.0 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2020 are as follows: (in thousands) Operating Leases 2021 $ 44,710 2022 30,993 2023 22,326 2024 19,686 2025 17,051 Thereafter 170,303 Total future lease payments 305,069 Less: imputed interest (90,046 ) Total $ 215,023 |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases Under Prior Lease Standard (ASC 840) | Under the prior lease standard (ASC 840), as of September 30, 2019 future minimum lease payments under non-cancellable operating leases were as follows: (in thousands) Operating Leases 2020 $ 31,868 2021 33,094 2022 25,624 2023 19,279 2024 16,909 Thereafter 186,037 Total minimum lease payments $ 312,811 |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, liability | $ 215,023 | ||
Operating right-of-use lease assets | $ 149,933 | $ 0 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, liability | $ 224,000 | ||
Operating right-of-use lease assets | $ 167,900 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Millions | 12 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 01, 2019 | Dec. 29, 2018 | Sep. 30, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percent of standalone selling price for subscriptions that contains software license | 55.00% | |||||
Percent of standalone selling price for subscriptions that contains support | 45.00% | |||||
Contract with customer, refund liability | $ 34,500,000 | $ 22,900,000 | ||||
Impairment charges | 500,000 | |||||
Non-marketable equity investments | 8,900,000 | 9,400,000 | ||||
Allowance for doubtful accounts receivable | 500,000 | 700,000 | $ 600,000 | |||
Allowance for credit loss, writeoff | 200,000 | 200,000 | 1,000,000 | |||
Bad debt expense including general and administrative expense | $ 0 | 300,000 | 500,000 | |||
Lease expiration date | 2037 | |||||
Development costs for software | $ 0 | 0 | 0 | |||
Advertising expense | 3,800,000 | 3,600,000 | 2,900,000 | |||
Cumulative translation adjustment gains (loss) | (69,100,000) | (91,200,000) | ||||
Pension benefits, before tax | (37,200,000) | (34,900,000) | ||||
Accumulated other comprehensive (income) loss, defined benefit plan, after tax | 26,400,000 | 24,800,000 | ||||
AOCI, Debt Securities, Available-for-sale, Adjustment, before tax | 300,000 | 100,000 | ||||
AOCI, Debt Securities, Available-for-sale, Adjustment, after Tax | 300,000 | 100,000 | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Net Investment Hedges, Before Tax | (8,200,000) | 6,800,000 | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Net Investment Hedges, Effect Net of Tax | (8,200,000) | $ 5,100,000 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1 | |||||
Operating lease, liability | 215,023,000 | |||||
Operating right-of-use lease assets | 149,933,000 | $ 0 | ||||
Total stockholders’ equity | 1,438,248,000 | 1,201,998,000 | 874,589,000 | $ 885,436,000 | ||
Purchased Software | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 11,500,000 | |||||
Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percent of standalone selling price for subscriptions | 5.00% | |||||
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 | 50.00% | |||||
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) | 12 years | |||||
Maximum | Trademarks And Trade Names | ||||||
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) | 7 years | |||||
Accumulated Deficit | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total stockholders’ equity | $ (62,267,000) | $ (191,390,000) | $ (599,409,000) | $ (650,840,000) | ||
Accounting Standards Update 2016-16 | Accumulated Deficit | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total stockholders’ equity | $ 72,300,000 | |||||
Accounting Standards Update 2016-02 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Operating lease, liability | $ 224,000,000 | |||||
Operating right-of-use lease assets | 167,900,000 | |||||
Accounting Standards Update 2016-02 | Accumulated Deficit | Scheduling of Reversal of Temporary Tax Differences | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total stockholders’ equity | $ (1,600,000) | |||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Derivative maturity | 3 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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | |||
Net income (loss) | $ 130,695 | $ (27,460) | $ 51,987 |
Weighted average shares outstanding | 115,663 | 117,724 | 116,390 |
Dilutive effect of employee stock options, restricted shares and restricted stock units | 604 | 0 | 1,768 |
Diluted weighted average shares outstanding | 116,267 | 117,724 | 118,158 |
Basic earnings (loss) per share | $ 1.13 | $ (0.23) | $ 0.45 |
Diluted earnings (loss) per share | $ 1.12 | $ (0.23) | $ 0.44 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Oct. 01, 2018 | |
Revenue from External Customer [Line Items] | |||
Contract with customer, asset, expected to be transferred to receivables within the next 12 months and therefore | $ 6,900,000 | ||
Contract with customer, asset, reclassified to receivable | 15,100,000 | ||
Contract with customer, asset, decrease in contract assets | (9,000,000) | ||
Contract with customer, asset, increase in contract assets related to revenue recognized | 6,100,000 | ||
Deferred revenue, revenue recognized | 379,800,000 | ||
Deferred revenue, additions | 409,700,000 | ||
Short term and long term accounts receivable | $ 511,300,000 | $ 412,500,000 | |
Capitalized contract cost, amortization period | 5 years | ||
Amortization expense related to costs to obtain a contract with a customer | $ 36,200,000 | 30,400,000 | |
Impairments of the contract cost asset | 0 | 0 | |
Deferred revenue | 426,465,000 | 396,632,000 | |
Revenue, remaining performance obligation, amount | 1,220,900,000 | ||
Unrecorded | |||
Revenue from External Customer [Line Items] | |||
Revenue, remaining performance obligation, amount | 794,400,000 | ||
Other Assets | |||
Revenue from External Customer [Line Items] | |||
Capitalized contract cost, net | 72,900,000 | 64,800,000 | |
Other Current Assets | |||
Revenue from External Customer [Line Items] | |||
Capitalized contract cost, net | $ 33,900,000 | $ 27,700,000 | |
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | |||
Revenue from External Customer [Line Items] | |||
Cumulative effect of new accounting principle | $ 363,200,000 | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | ||
Accumulated Deficit | Revenue from Contract with Customer Benchmark | Cumulative Effect, Period of Adoption, Adjustment | |||
Revenue from External Customer [Line Items] | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | ||
Accumulated Deficit | Deferred Revenue | Revenue from Contract with Customer Benchmark | Cumulative Effect, Period of Adoption, Adjustment | |||
Revenue from External Customer [Line Items] | |||
Cumulative effect of new accounting principle | 143,200,000 | ||
Accumulated Deficit | Other Assets | Revenue from Contract with Customer Benchmark | Cumulative Effect, Period of Adoption, Adjustment | |||
Revenue from External Customer [Line Items] | |||
Cumulative effect of new accounting principle | 5,100,000 | ||
Accumulated Deficit | Unbilled Contracts Receivables | Revenue from Contract with Customer Benchmark | Cumulative Effect, Period of Adoption, Adjustment | |||
Revenue from External Customer [Line Items] | |||
Cumulative effect of new accounting principle | 218,500,000 | ||
Accounting Standards Update 2014-09 | Accumulated Deficit | |||
Revenue from External Customer [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption, related to offsetting current liability | 2,800,000 | ||
Cumulative effect of new accounting principle in period of adoption, gross | 432,200,000 | ||
Cumulative effect of new accounting principle in period of adoption, related to deferral of commission expenses | 70,000,000 | ||
Accounting Standards Update 2014-09 | Accumulated Deficit | Revenue from Contract with Customer Benchmark | Cumulative Effect, Period of Adoption, Adjustment | |||
Revenue from External Customer [Line Items] | |||
Cumulative effect of new accounting principle | $ 366,800,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Contract asset | $ 11,984 | $ 21,038 |
Deferred revenue | $ 426,465 | $ 396,632 |
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: 2020-10-01 | Sep. 30, 2020 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, percentage | 85.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 1,458,415 | $ 1,255,631 | $ 1,241,824 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,311,494 | 1,241,824 | |
Total recurring revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,281,949 | 1,017,398 | |
Total recurring revenue | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,078,627 | 978,853 | |
Perpetual license | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 32,668 | 70,702 | |
Perpetual license | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 72,191 | 109,634 | |
Professional services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 143,798 | 167,531 | 153,337 |
Professional services | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 160,676 | $ 153,337 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Additional Information (Details) $ in Thousands | Oct. 02, 2019USD ($) | Dec. 28, 2018USD ($)Employee | Sep. 30, 2020USD ($)Employee | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and other charges, net | $ (32,716) | $ (51,114) | $ (3,764) | |||
Restructuring Charges | (26,427) | (48,612) | 1,003 | |||
Payments for restructuring | 31,502 | 24,721 | 2,756 | |||
Restructuring Reserve | 9,987 | 31,086 | 2,415 | $ 6,244 | ||
Depreciation | 24,700 | 26,700 | 29,400 | |||
Impairment and Accretion Exited Lease Facilities | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and other charges, net | (5,600) | |||||
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 | 4,263 | (32,908) | 494 | |||
Payments for restructuring | 4,246 | 9,319 | 1,509 | |||
Restructuring Reserve | 5,995 | 30,788 | 2,415 | 4,508 | ||
Facility Closures | Accrued Expenses and Other Current Liabilities | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Reserve | 2,800 | |||||
Facility Closures | Other Noncurrent Liabilities | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Reserve | 3,200 | 18,900 | ||||
Facility Closures | Other Current Liabilities | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Reserve | 11,900 | |||||
Facility Closures | Accounting Standards Update 2016-02 | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
ASC 842 adoption | $ 16,500 | |||||
Facility Closures | Accounting Standards Update 2016-02 | Operating Lease ROU Asset | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
ASC 842 adoption | 7,600 | |||||
Facility Closures | Accounting Standards Update 2016-02 | Operating Lease Short Term Lease Obligation | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
ASC 842 adoption | 9,200 | |||||
Facility Closures | Accounting Standards Update 2016-02 | Operating Lease Long Term Lease Obligation | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
ASC 842 adoption | $ 14,900 | |||||
Employee Severance and Related Benefits | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Charges | (30,690) | (15,704) | 509 | |||
Payments for restructuring | 27,256 | 15,402 | 1,247 | |||
Restructuring Reserve | 3,992 | 298 | 0 | $ 1,736 | ||
Prior Headquarters Relocation Charge | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and other charges, net | $ 4,300 | |||||
Restructuring Charges | (32,700) | |||||
Lease expiration, month and year | 2022-11 | |||||
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 | 250 | |||||
Restructuring Plan 2019 | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Payments for restructuring | $ 3,900 | 23,600 | ||||
Restructuring Plan 2019 | Employee Severance and Related Benefits | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Charges | $ (16,300) | 100 | ||||
Number of employees | Employee | 240 | |||||
Restructuring Plan 2016 | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Charges | (200) | |||||
Payments for restructuring | $ 300 | 1,100 | 2,600 | |||
2016 and 2019 Restructuring Plans | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Charges | (48,600) | |||||
Prior Year Plans | Facility Closures | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Charges | (200) | |||||
Prior Headquarters Relocation Charge | Facility Closures | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and other charges, net | (2,500) | |||||
Restructuring Plan 2015 | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Charges | (800) | |||||
Payments for restructuring | 200 | |||||
Prior Headquarters | Facility Closures | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Depreciation | 1,900 | $ 4,800 | ||||
Payments for Rent | $ 600 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Restructuring Accrual Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 31,086 | $ 2,415 | $ 6,244 |
Charges (credits) to operations, net | 26,427 | 48,612 | (1,003) |
Cash disbursements | (31,502) | (24,721) | (2,756) |
Foreign exchange impact | 274 | (32) | (70) |
Restructuring reserve, ending balance | 9,987 | 31,086 | 2,415 |
Other non-cash charges | 164 | 4,812 | |
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 | 298 | 0 | 1,736 |
Charges (credits) to operations, net | 30,690 | 15,704 | (509) |
Cash disbursements | (27,256) | (15,402) | (1,247) |
Foreign exchange impact | 260 | (4) | 20 |
Restructuring reserve, ending balance | 3,992 | 298 | 0 |
Other non-cash charges | 0 | 0 | |
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 | 30,788 | 2,415 | 4,508 |
Charges (credits) to operations, net | (4,263) | 32,908 | (494) |
Cash disbursements | (4,246) | (9,319) | (1,509) |
Foreign exchange impact | 14 | (28) | (90) |
Restructuring reserve, ending balance | 5,995 | 30,788 | $ 2,415 |
Other non-cash charges | 164 | $ 4,812 | |
Facility Closures | Accounting Standards Update 2016-02 | |||
Restructuring Reserve [Roll Forward] | |||
ASC 842 adoption | $ (16,462) |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Property Plant And Equipment [Abstract] | ||
Computer hardware and software | $ 330,392 | $ 313,967 |
Furniture and fixtures | 30,251 | 28,445 |
Leasehold improvements | 99,883 | 97,657 |
Gross property and equipment | 460,526 | 440,069 |
Accumulated depreciation and amortization | (359,027) | (334,538) |
Net property and equipment | $ 101,499 | $ 105,531 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 24.7 | $ 26.7 | $ 29.4 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | Nov. 01, 2019USD ($) | Nov. 19, 2018USD ($)Employee | Sep. 30, 2020USD ($)Employee | Jun. 29, 2019USD ($)Employee | Sep. 30, 2020USD ($)Employee | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||||
Business combination, acquisition related costs | $ 8,600,000 | $ 3,100,000 | $ 500,000 | ||||
Customer Lists | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible asset, weighted average useful life | 10 years | ||||||
Purchased Software | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible asset, weighted average useful life | 11 years | ||||||
Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible asset, weighted average useful life | 11 years | ||||||
Onshape | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, consideration transferred | $ 469,000,000 | ||||||
Cash acquired from acquisition | 7,500,000 | ||||||
Goodwill, acquired | 364,900,000 | $ 364,910,000 | |||||
Liabilities | 4,100,000 | ||||||
Onshape | Customer Lists | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | 56,800,000 | ||||||
Onshape | Purchased Software | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | 47,300,000 | ||||||
Onshape | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 3,600,000 | ||||||
Onshape | Maximum | Customer Lists | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible asset, weighted average useful life | 10 years | ||||||
Onshape | Maximum | Purchased Software | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible asset, weighted average useful life | 16 years | ||||||
Onshape | Maximum | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Acquired finite-lived intangible asset, weighted average useful life | 15 years | ||||||
Frustum | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, consideration transferred | $ 69,500,000 | ||||||
Cash acquired from acquisition | 700,000 | ||||||
Goodwill, acquired | 53,700,000 | 53,673,000 | |||||
Liabilities | $ 2,100,000 | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 15 years | ||||||
Entity number of employees | Employee | 12 | ||||||
Frustum | Purchased Software | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 17,900,000 | ||||||
Other Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, consideration transferred | $ 15,000,000 | $ 17,300,000 | |||||
Cash acquired from acquisition | 100,000 | 300,000 | |||||
Goodwill, acquired | 12,300,000 | 12,600,000 | 12,262,000 | $ 12,645,000 | |||
Liabilities | $ 1,400,000 | $ 1,300,000 | $ 1,400,000 | ||||
Entity number of employees | Employee | 20 | 95 | 20 | ||||
Other Acquisitions | Customer Lists | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 700,000 | $ 3,400,000 | |||||
Acquired finite-lived intangible asset, weighted average useful life | 10 years | ||||||
Other Acquisitions | Purchased Software | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 3,400 | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 7 years |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | |
Number of operating segments | Segment | 2 | |
Number of reportable segments | Segment | 2 | |
Intangible assets | $ 1,863,356 | $ 1,408,128 |
Estimated aggregate future amortization expense for intangible assets, 2021 | 52,900 | |
Estimated aggregate future amortization expense for intangible assets, 2022 | 39,100 | |
Estimated aggregate future amortization expense for intangible assets, 2023 | 29,000 | |
Estimated aggregate future amortization expense for intangible assets, 2024 | 20,300 | |
Estimated aggregate future amortization expense for intangible assets, 2025 | 17,300 | |
Estimated aggregate future amortization expense for intangible assets, thereafter | 79,000 | |
Software Products | ||
Intangible assets | 1,818,100 | 1,362,400 |
Professional Services | ||
Intangible assets | $ 45,300 | $ 45,700 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Schedule of Goodwill and Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Goodwill (not amortized) | $ 1,625,786 | $ 1,238,179 | $ 1,182,457 |
Intangible assets with finite lives (amortized), Gross Carrying Amount | 911,809 | 778,968 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 674,239 | 609,019 | |
Intangible assets with finite lives (amortized), Net Book Value | 237,570 | 169,949 | |
Intangible Assets, Net (Including Goodwill) | 1,863,356 | 1,408,128 | |
Purchased Software | |||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 443,275 | 377,359 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 309,124 | 278,144 | |
Intangible assets with finite lives (amortized), Net Book Value | 134,151 | 99,215 | |
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 | 418,953 | 355,931 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 322,092 | 288,828 | |
Intangible assets with finite lives (amortized), Net Book Value | 96,861 | 67,103 | |
Trademarks | |||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 22,687 | 18,891 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 16,129 | 15,260 | |
Intangible assets with finite lives (amortized), Net Book Value | 6,558 | 3,631 | |
Other | |||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 4,017 | 3,910 | |
Intangible assets with finite lives (amortized), Accumulated Amortization | 4,017 | 3,910 | |
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, 2020 | |
Purchased Software | |
Weighted average useful lives (in years) | 11 years |
Customer Lists and Relationships | |
Weighted average useful lives (in years) | 10 years |
Trademarks | |
Weighted average useful lives (in years) | 11 years |
Goodwill and Acquired Intangi_6
Goodwill and Acquired Intangible Assets - Schedule of Changes in Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Nov. 19, 2018 | Sep. 30, 2020 | Jun. 29, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Goodwill [Line Items] | ||||||
Balance, beginning of period | $ 1,238,179 | $ 1,182,457 | ||||
Foreign currency translation adjustments | 10,435 | (10,596) | ||||
Balance, end of period | $ 1,625,786 | 1,625,786 | 1,238,179 | |||
Frustum | ||||||
Goodwill [Line Items] | ||||||
Goodwill, acquired | $ 53,700 | 53,673 | ||||
Other Acquisitions | ||||||
Goodwill [Line Items] | ||||||
Goodwill, acquired | 12,300 | $ 12,600 | 12,262 | 12,645 | ||
Onshape | ||||||
Goodwill [Line Items] | ||||||
Goodwill, acquired | $ 364,900 | 364,910 | ||||
Software Products | ||||||
Goodwill [Line Items] | ||||||
Balance, beginning of period | 1,196,064 | 1,152,720 | ||||
Foreign currency translation adjustments | 10,080 | (10,329) | ||||
Balance, end of period | 1,583,316 | 1,583,316 | 1,196,064 | |||
Software Products | Frustum | ||||||
Goodwill [Line Items] | ||||||
Goodwill, acquired | 53,673 | |||||
Software Products | Other Acquisitions | ||||||
Goodwill [Line Items] | ||||||
Goodwill, acquired | 12,262 | 0 | ||||
Software Products | Onshape | ||||||
Goodwill [Line Items] | ||||||
Goodwill, acquired | 364,910 | |||||
Professional Services | ||||||
Goodwill [Line Items] | ||||||
Balance, beginning of period | 42,115 | 29,737 | ||||
Foreign currency translation adjustments | 355 | (267) | ||||
Balance, end of period | $ 42,470 | 42,470 | 42,115 | |||
Professional Services | Frustum | ||||||
Goodwill [Line Items] | ||||||
Goodwill, acquired | 0 | |||||
Professional Services | Other Acquisitions | ||||||
Goodwill [Line Items] | ||||||
Goodwill, acquired | 0 | $ 12,645 | ||||
Professional Services | Onshape | ||||||
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization of acquired intangible assets | $ 28,713 | $ 23,841 | $ 31,350 |
Cost of software revenue | 27,391 | 27,307 | 26,706 |
Total amortization expense | $ 56,104 | $ 51,148 | $ 58,056 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (73,865) | $ (112,077) | $ (114,591) |
Foreign | 208,571 | 132,377 | 143,247 |
Income before income taxes | $ 134,706 | $ 20,300 | $ 28,656 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision For (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 2,187 | $ 13,130 | $ 3,009 |
State | 1,266 | (945) | 2,003 |
Foreign | 25,199 | 33,867 | 28,213 |
Current provision for income taxes | 28,652 | 46,052 | 33,225 |
Federal | (26,811) | 22,911 | (12,594) |
State | (4,063) | 1,759 | (445) |
Foreign | 6,233 | (22,962) | (43,517) |
Deferred provision for (benefit from) income taxes | (24,641) | 1,708 | (56,556) |
Total provision (benefit) for income taxes | $ 4,011 | $ 47,760 | $ (23,331) |
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 | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation, Amount | |||
Statutory federal income tax rate | $ 28,288 | $ 4,263 | $ 7,021 |
Change in valuation allowance | (16,489) | 66,417 | (181,047) |
Transition impact of U.S. Tax Act | 0 | 0 | 126,122 |
Federal rate change | 0 | 0 | 69,648 |
State income taxes, net of federal tax benefit | (2,998) | 607 | 2,401 |
Federal research and development credits | (5,483) | (3,731) | (3,058) |
Uncertain tax positions | 3,072 | 2,611 | (4,646) |
Foreign rate differences | (22,074) | (26,952) | (38,743) |
Foreign tax on U.S. provision | 4,523 | 6,547 | 2,736 |
Excess tax benefits from restricted stock | (1,743) | (5,940) | (11,641) |
Audits and settlements | 0 | 51 | 2,352 |
U.S. permanent items | 6,590 | 2,483 | 5,408 |
BEAT | (1,759) | 1,759 | 0 |
GILTI, net of foreign tax credits | 14,899 | 6,170 | 0 |
Foreign-Derived Intangible Income (FDII) | (2,461) | (6,409) | 0 |
Other, net | (354) | (116) | 116 |
Total provision (benefit) for income taxes | $ 4,011 | $ 47,760 | $ (23,331) |
Reconciliation, Percent | |||
Statutory federal income tax rate | 21.00% | 21.00% | 25.00% |
Change in valuation allowance | (12.00%) | 327.00% | (632.00%) |
Transition impact of U.S. Tax Act | 0.00% | 0.00% | 440.00% |
Federal rate change | 0.00% | 0.00% | 243.00% |
State income taxes, net of federal tax benefit | (2.00%) | 3.00% | 8.00% |
Federal research and development credits | (4.00%) | (18.00%) | (11.00%) |
Uncertain tax positions | 2.00% | 13.00% | (16.00%) |
Foreign rate differences | (16.00%) | (133.00%) | (135.00%) |
Foreign tax on U.S. provision | 3.00% | 32.00% | 10.00% |
Excess tax benefits from restricted stock | (1.00%) | (29.00%) | (41.00%) |
Audits and settlements | 0.00% | 0.00% | 8.00% |
U.S. permanent items | 5.00% | 12.00% | 19.00% |
BEAT | (1.00%) | 9.00% | 0.00% |
GILTI, net of foreign tax credits | 11.00% | 31.00% | 0.00% |
Foreign-Derived Intangible Income (FDII) | (2.00%) | (32.00%) | 0.00% |
Other, net | (1.00%) | (1.00%) | 1.00% |
Provision (benefit) for income taxes | 3.00% | 235.00% | (81.00%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 29, 2018 | Oct. 01, 2017 | Sep. 30, 2017 | |
Income Tax Disclosure [Line Items] | |||||||
Foreign rate differences | $ (22,074,000) | $ (26,952,000) | $ (38,743,000) | ||||
Foreign tax on U.S. provision | $ 4,523,000 | $ 6,547,000 | $ 2,736,000 | ||||
Federal statutory income tax rate | 21.00% | 21.00% | 25.00% | ||||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 24.50% | ||||||
Income taxes payable | $ 15,400,000 | $ 23,400,000 | |||||
Provision (benefit) from deferred income taxes | (24,641,000) | 1,708,000 | $ (56,556,000) | ||||
Accrued income taxes | 7,000,000 | 17,400,000 | |||||
Prepaid income taxes | 17,300,000 | 5,300,000 | |||||
Income tax payments | 52,600,000 | 38,900,000 | 22,600,000 | ||||
Total stockholders’ equity | 1,438,248,000 | 1,201,998,000 | 874,589,000 | $ 885,436,000 | |||
Deferred tax assets | 190,963,000 | 198,634,000 | |||||
Foreign tax credits | 8,074,000 | 0 | |||||
Gross deferred amortization carryforward | 907,400,000 | ||||||
Valuation allowance | 205,423,000 | 177,663,000 | 141,950,000 | 279,683,000 | |||
Interest Expense | 76,428,000 | 43,047,000 | 41,673,000 | ||||
Penalty expense | 0 | 0 | 0 | ||||
Interest expense related to income tax accruals | 600,000 | 500,000 | |||||
Accrued tax penalties | 0 | 0 | 0 | ||||
Income tax provision upon recognition of unrecognized tax benefit | 16,100,000 | ||||||
Unrecognized tax benefits, increase in valuation allowance upon recognition | 7,700,000 | ||||||
Potential decrease in unrecognized tax benefits | 1,000,000 | ||||||
Stock-based compensation | 115,149,000 | 86,400,000 | 82,939,000 | ||||
Tax benefit recognition related to stock based compensation | 13,400,000 | 16,600,000 | 28,300,000 | ||||
Provision (benefit) for income taxes | 4,011,000 | 47,760,000 | (23,331,000) | ||||
Income Tax Expense | |||||||
Income Tax Disclosure [Line Items] | |||||||
Interest Expense | 300,000 | 100,000 | 600,000 | ||||
Accumulated Deficit | |||||||
Income Tax Disclosure [Line Items] | |||||||
Total stockholders’ equity | (62,267,000) | (191,390,000) | (599,409,000) | $ (650,840,000) | |||
Accounting Standards Update 2016-16 | |||||||
Income Tax Disclosure [Line Items] | |||||||
Deferred tax assets | $ 75,300,000 | ||||||
Other Tax Assets | 6,000,000 | ||||||
Other Tax Liabilities | 3,000,000 | ||||||
Accounting Standards Update 2016-16 | Accumulated Deficit | |||||||
Income Tax Disclosure [Line Items] | |||||||
Total stockholders’ equity | $ 72,300,000 | ||||||
Accounting Standards Update 2016-09 | |||||||
Income Tax Disclosure [Line Items] | |||||||
Windfall tax deductions not yet recognized | $ 37,000,000 | ||||||
Windfall tax deductions not yet recognized offset valuation allowance | $ 36,900,000 | ||||||
Other Current Liabilities | |||||||
Income Tax Disclosure [Line Items] | |||||||
Accrued income taxes | 1,000,000 | 400,000 | |||||
Other Liabilities [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Accrued income taxes | 7,400,000 | 5,600,000 | |||||
Net Decrease in Deferred Tax Liability | |||||||
Income Tax Disclosure [Line Items] | |||||||
Provision (benefit) from deferred income taxes | 14,100,000 | ||||||
Patents | |||||||
Income Tax Disclosure [Line Items] | |||||||
Foreign tax on U.S. provision | 2,700,000 | ||||||
Realignment | |||||||
Income Tax Disclosure [Line Items] | |||||||
Foreign rate differences | 24,000,000 | ||||||
State - Massachusetts | |||||||
Income Tax Disclosure [Line Items] | |||||||
Income taxes payable | 1,700,000 | ||||||
State - Massachusetts | Research Tax Credit Carryforward | |||||||
Income Tax Disclosure [Line Items] | |||||||
Credit carryforwards | 26,900,000 | ||||||
Domestic Country | |||||||
Income Tax Disclosure [Line Items] | |||||||
Net operating loss carryforwards | 128,700,000 | ||||||
Valuation allowance | 171,300,000 | ||||||
Domestic Country | Expire in 2030 to 2040 | |||||||
Income Tax Disclosure [Line Items] | |||||||
Credit carryforwards | 42,200,000 | ||||||
Domestic Country | Expire in 2021 to 2037 | |||||||
Income Tax Disclosure [Line Items] | |||||||
Net operating loss carryforwards | 53,200,000 | ||||||
Domestic Country | Not Expire | |||||||
Income Tax Disclosure [Line Items] | |||||||
Net operating loss carryforwards | 75,500,000 | ||||||
Foreign Country | |||||||
Income Tax Disclosure [Line Items] | |||||||
Net operating loss carryforwards | 58,400,000 | ||||||
Credit carryforwards | $ 8,100,000 | ||||||
Credit carryforwards expiration | 2030 | ||||||
Foreign tax credits | $ 4,400,000 | ||||||
Valuation allowance | $ 34,100,000 | ||||||
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 | 2035 | ||||||
KOREA, REPUBLIC OF | Paid in 2017 | |||||||
Income Tax Disclosure [Line Items] | |||||||
Income tax examination, estimate of possible loss | $ 12,000,000 | ||||||
KOREA, REPUBLIC OF | Additional Exposure | |||||||
Income Tax Disclosure [Line Items] | |||||||
Income tax examination, estimate of possible loss | $ 17,000,000 | ||||||
Windfall Tax Benefit | |||||||
Income Tax Disclosure [Line Items] | |||||||
Provision (benefit) for income taxes | $ 1,300,000 | $ 6,700,000 | $ 13,200,000 |
Income Taxes - Schedule Of Defe
Income Taxes - Schedule Of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||||
Net operating loss carryforwards | $ 61,495 | $ 26,462 | ||
Foreign tax credits | 8,074 | 0 | ||
Capitalized research and development | 30,109 | 34,560 | ||
Pension benefits | 14,370 | 14,838 | ||
Prepaid expenses | 13,579 | 41,739 | ||
Deferred revenue | 6,021 | 9,899 | ||
Stock-based compensation | 13,630 | 12,306 | ||
Other reserves not currently deductible | 15,130 | 20,986 | ||
Amortization of intangible assets | 162,426 | 168,376 | ||
Research and development and other tax credits | 70,695 | 49,995 | ||
Lease liabilities | 52,224 | 0 | ||
Fixed assets | 47,457 | 45,450 | ||
Capital loss carryforward | 35,851 | 31,248 | ||
Deferred interest | 0 | 10,864 | ||
Other | 1,849 | 1,623 | ||
Gross deferred tax assets | 532,910 | 468,346 | ||
Valuation allowance | (205,423) | (177,663) | $ (141,950) | $ (279,683) |
Total deferred tax assets | 327,487 | 290,683 | ||
Deferred tax liabilities: | ||||
Acquired intangible assets not deductible | (65,894) | (42,554) | ||
Lease assets | (35,885) | 0 | ||
Pension prepayments | (1,155) | (2,532) | ||
Deferred revenue | (594) | (19,312) | ||
Depreciation | (7,481) | 0 | ||
Unbilled accounts receivable | (12,699) | (31,005) | ||
Deferred income | (5,821) | (19,040) | ||
Prepaid commissions | (17,124) | (17,423) | ||
Other | (2,302) | (1,866) | ||
Total deferred tax liabilities | (148,955) | (133,732) | ||
Net deferred tax assets | $ 178,532 | $ 156,951 |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowance, beginning of year | $ 177,663 | $ 141,950 | $ 279,683 |
Net release of valuation allowance | 0 | (1,772) | (2,791) |
Net increase (decrease) in deferred tax assets with a full valuation allowance | 27,760 | 37,485 | (134,942) |
Valuation allowance, end of year | $ 205,423 | $ 177,663 | $ 141,950 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | |||
Unrecognized tax benefit, beginning of year | $ 11,484 | $ 9,812 | $ 14,752 |
Tax positions related to current year: | |||
Additions | 2,173 | 1,466 | 1,456 |
Tax positions related to prior years: | |||
Additions | 2,452 | 1,375 | 0 |
Reductions | (2) | (9) | (4,631) |
Settlements | 0 | (1,160) | 0 |
Statute expirations | 0 | 0 | (1,765) |
Unrecognized tax benefit, end of year | $ 16,107 | $ 11,484 | $ 9,812 |
Income Taxes - Summary of Major
Income Taxes - Summary of Major Tax Jurisdiction (Details) | 12 Months Ended |
Sep. 30, 2020 | |
United States | |
Income Tax Examination [Line Items] | |
Open Years | 2016 2017 2018 2019 2020 |
Germany | |
Income Tax Examination [Line Items] | |
Open Years | 2015 2016 2017 2018 2019 2020 |
France | |
Income Tax Examination [Line Items] | |
Open Years | 2017 2018 2019 2020 |
Japan | |
Income Tax Examination [Line Items] | |
Open Years | 2015 2016 2017 2018 2019 2020 |
Ireland | |
Income Tax Examination [Line Items] | |
Open Years | 2016 2017 2018 2019 2020 |
Debt - Schedule of Long-term Bo
Debt - Schedule of Long-term Borrowing Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Feb. 13, 2020 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,018,000 | $ 673,125 | |
Unamortized debt issuance costs for the Senior notes | (12,686) | (3,991) | |
Total debt, net of issuance costs | 1,005,314 | 669,134 | |
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 | 18,000 | 173,125 | |
Long-term Debt [Member] | 4.000% Senior Notes Due 2028 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 500,000 | 0 | |
Long-term Debt [Member] | 3.625% Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 500,000 | 0 | |
Long-term Debt [Member] | 6.000% Senior Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 0 | $ 500,000 |
Debt - Schedule of Long-term _2
Debt - Schedule of Long-term Borrowing Obligations (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 28, 2020 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ 12,686 | $ 3,991 | |
Long-term Debt [Member] | Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | 12,700 | $ 14,100 | |
Other Noncurrent Assets | Line of Credit | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ 4,900 | $ 3,100 |
Debt - Senior Unsecured Notes-
Debt - Senior Unsecured Notes- Additional Information (Details) - USD ($) $ in Thousands | Feb. 13, 2020 | May 31, 2016 | Mar. 28, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||||||
Repayments of lines of credit | $ 610,125 | $ 180,000 | $ 320,000 | |||
Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of lines of credit | $ 460,000 | |||||
Redemption price, percentage | 101.00% | |||||
4.000% Senior Notes Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | $ 500,000 | |||||
Interest rate | 4.00% | |||||
4.000% Senior Notes Due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Fair value amount | 515,100 | |||||
3.625% Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | $ 500,000 | |||||
Interest rate | 3.625% | |||||
3.625% Senior Notes Due 2025 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Fair value amount | $ 507,500 | |||||
6.000% Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.00% | |||||
6.000% Senior Notes Due 2024 | Q3 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | $ 500,000 | |||||
Redemption price, percentage | 103.00% |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Nov. 25, 2020 | Nov. 13, 2019 | |
Debt Instrument [Line Items] | ||||||||
Credit facility amount | $ 1,000,000,000 | |||||||
Voting interest in domestic subsidiaries pledged against credit facility | 100.00% | |||||||
Voting interest in foreign subsidiaries pledged against credit facility | 65.00% | |||||||
Leverage ratio, actual | 2.34 | |||||||
Senior debt leverage ratio, actual | 0.08 | |||||||
Fixed charge coverage ratio, actual | 5.85 | |||||||
Financing costs | $ 17,107,000 | $ 0 | $ 2,851,000 | |||||
Interest expense | 76,400,000 | 43,000,000 | 41,700,000 | |||||
Periodic interest payment | $ 60,600,000 | $ 40,800,000 | $ 39,800,000 | |||||
Amount paid in penalties for the early redemption of the 2024 notes | $ 15,000,000 | |||||||
Interest rate during period | 4.30% | 5.40% | 5.20% | |||||
Foreign Subsidiary | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term portion of long term debt | $ 0 | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity expansion amount | $ 500,000,000 | |||||||
Unused commitments under credit facility | $ 982,000,000 | |||||||
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 | 1.00% | |||||||
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 | 1.81% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2016USD ($) | Sep. 30, 2020USD ($)Plantiff | Sep. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | |||
Letters of credit and bank guarantees outstanding | $ 16.4 | $ 15.1 | |
Bank guarantees outstanding collateralized | $ 0.5 | $ 1.1 | |
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 | ||
Plaintiffs claim | The plaintiffs seek unspecified damages on behalf of a class of Plan participants from September 17, 2014 through the date of any judgment. | ||
Korea | |||
Loss Contingencies [Line Items] | |||
Income tax examination, estimate of possible loss | $ 12 | $ 17 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Jul. 20, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Nov. 13, 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) | 0 | 1,400,000 | |||||
Stock repurchased during period, value | $ 115,000,000 | ||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 1,000,000,000 | $ 100,000,000 | |||||
Accelerated Share Repurchase Initial Delivery Percent of Total | 80.00% | ||||||
Stock Repurchased and Retired During Period, Value | $ 114,994,000 | $ 1,100,000,000 | |||||
Rockwell Automation | |||||||
Class of Stock [Line Items] | |||||||
Sale of Stock, Consideration Received on Transaction | $ 1,000,000,000 | ||||||
Stock issued for equity investment | 10,582,010,000 | ||||||
Price per share (in dollars per share) | $ 94.50 | $ 94.50 | |||||
Accelerated Share Repurchase Agreement | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchased during period (in shares) | 8,200,000 | 1,200,000 | 3,000,000 | 8,200,000 | |||
Accelerated Share Repurchase Agreement | Final settlement | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchased and Retired During Period, Value | $ 200,000,000 | ||||||
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Stock authorized to repurchase | $ 1,000,000,000 | ||||||
Maximum | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized | 500,000,000 | ||||||
Stock authorized to repurchase | $ 1,500,000,000 | ||||||
Series A Junior Participating Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 500,000 |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional Information (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020USD ($)shares / unit$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock Issuable per Restricted Stock Unit | shares / unit | 1 | ||
Stock-based compensation | $ | $ 115,149 | $ 86,400 | $ 82,939 |
Total unrecognized compensation cost | $ | $ 213,500 | ||
Weighted average remaining recognition period, in months | 19 months | ||
Common stock were available for grant under the 2000 plan | shares | 5,300 | ||
Common stock were reserved for issuance | shares | 3,500 | ||
ESPP maximum contribution percentage | 10.00% | ||
ESPP maximum contribution amount by employee | $ | $ 25,000 | ||
ESPP purchase price as a % of stock price | 85.00% | ||
Vesting period | 1 year 3 months 18 days | ||
Shares withheld for tax withholding obligation | shares | 500 | 500 | 700 |
Payments of withholding taxes in connection with vesting of stock-based awards | $ | $ 33,740 | $ 44,366 | $ 45,374 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ | $ 5,800 | $ 6,200 | $ 4,300 |
Restricted Shares and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share | $ / shares | $ 77.57 | $ 82.77 | $ 76.17 |
TSR Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share | $ / shares | $ 106.69 | ||
Granted, shares | shares | 101 | ||
TSR Units | Catch-Up Provision | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, shares | shares | 202 |
Equity Incentive Plan - Schedul
Equity Incentive Plan - Schedule of Classification of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 115,149 | $ 86,400 | $ 82,939 |
Sales and marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 37,351 | 32,026 | 24,893 |
Research and development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 27,005 | 22,019 | 13,488 |
General and administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 36,824 | 20,416 | 33,033 |
License | Cost of Sales | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 47 | 509 | 144 |
Support and cloud services | Cost of Sales | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 6,910 | 5,004 | 4,302 |
Professional services | Cost of Sales | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 7,012 | $ 6,426 | $ 7,079 |
Equity Incentive Plan - Sched_2
Equity Incentive Plan - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Shares | |
Balance of outstanding restricted stock units, beginning, Shares | shares | 3,232 |
Granted, shares | shares | 2,770 |
Vested, Shares | shares | (1,391) |
Forfeited or not earned, Shares | shares | (1,102) |
Balance of outstanding restricted stock units, ending, Shares | shares | 3,509 |
Weighted- Average Grant Date Fair Value | |
Balance of outstanding restricted stock units, beginning (in USD per share) | $ / shares | $ 80.52 |
Granted (in USD per share) | $ / shares | 77.57 |
Vested (in USD per share) | $ / shares | 71.55 |
Forfeited or not earned (in USD per share) | $ / shares | 89.09 |
Balance of outstanding restricted stock units, ending (in USD per share) | $ / shares | $ 79.13 |
Intrinsic value [Abstract] | |
Aggregate Intrinsic Value, Ending Balance of outstanding restricted stock | $ | $ 290,227 |
Equity Incentive Plan - Sched_3
Equity Incentive Plan - Schedule of Restricted Stock Unit Grants for the Period (Details) shares in Thousands | 12 Months Ended |
Sep. 30, 2020shares | |
Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 501 |
Service-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 2,168 |
TSR Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 101 |
Equity Incentive Plan - Sched_4
Equity Incentive Plan - Schedule of Restricted Stock Unit Grants for the Period (Parenthetical) (Details) shares in Thousands | 12 Months Ended |
Sep. 30, 2020Installmentshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year 3 months 18 days |
TSR Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 101 |
Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 501 |
Vesting period | 3 years |
Number of equal annual installments | Installment | 3 |
Service-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 2,168 |
Number of equal annual installments | Installment | 3 |
Catch-Up Provision | TSR Units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 202 |
Catch-Up Provision | TSR Units | Maximum | Maximum Two Times | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 202 |
Number of RSUs | two times |
Catch-Up Provision | TSR Units | Maximum | Maximum 110% | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | 440 |
Percentage of number of RSUs | 110.00% |
November 15 2020, 2021 and 2022 | Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Eligible to vest, shares | 101 |
November 15 2021, 2022 and 2023 | Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Eligible to vest, shares | 400 |
Equity Incentive Plan - Sched_5
Equity Incentive Plan - Schedule of Valuation Assumptions (Details) | 12 Months Ended |
Sep. 30, 2020 | |
Volatility Assumptions [Abstract] | |
Average volatility of peer group | 28.00% |
Risk-free interest rate | 1.59% |
Dividend yield | 0.00% |
Equity Incentive Plan - Sched_6
Equity Incentive Plan - Schedule of Total Fair Value of RSUs Vested (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |||
Total fair value of restricted stock unit awards vested | $ 103,265 | $ 131,659 | $ 127,525 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - Savings Plan - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Defined contribution plan, percentage of employee's contributions matched by employer | 50.00% | ||
Defined contribution plan, percentage of employer contribution on employee's earnings | 3.00% | ||
Defined contribution plan, employers contribution, rate of vesting, percentage | 25.00% | ||
Defined contribution plan, vesting period | 4 years | ||
Matching contributions by employer | $ 6.7 | $ 6 | $ 5.8 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average interest crediting rate used in only cash balance pension plan | 6.00% | |||
Defined benefit plan, plan assets, increase (decrease) for actual return (loss) | $ (3,000) | $ 3,500 | $ 1,000 | |
Defined benefit plan, plan assets, contributions by employer | $ 2,600 | $ 2,600 | $ 2,500 | |
Scenario Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension cost | $ 2,300 | |||
Defined benefit plan, plan assets, contributions by employer | 3,500 | |||
Defined benefit plan, plan assets, contributions by employer, directly to plans | $ 800 | |||
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 | 5.40% | 5.40% | 5.40% | |
Net periodic pension cost | $ 1,924 | $ 1,198 | $ 912 | |
Defined benefit plan, plan assets, increase (decrease) for actual return (loss) | (2,990) | 3,512 | ||
Defined benefit plan, plan assets, contributions by employer | $ 2,622 | $ 2,576 | ||
Pension Plan | Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current asset allocation target for fixed income securities | 100.00% | |||
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 |
Pension Plans - Accounting For
Pension Plans - Accounting For The Pension Plans (Details) - Pension Plan | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Discount rate | 1.10% | 0.90% | 1.90% |
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Rate of increase in future compensation | 2.80% | 2.80% | 3.00% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Discount rate | 0.90% | 1.90% | 1.80% |
Weighted average assumptions used to determine net periodic pension costs for fiscals years ended September 30, Rate of increase of future compensation | 2.80% | 3.00% | 2.80% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Rate of return on plan assets | 5.40% | 5.40% | 5.40% |
Pension Plans - Components of N
Pension Plans - Components of Net Periodic Pension Cost (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost of projected benefit obligation | $ 527 | $ 1,199 | $ 1,260 |
Service cost | 1,426 | 1,372 | 1,535 |
Expected return on plan assets | (3,878) | (3,728) | (4,180) |
Amortization of prior service cost | (5) | (5) | (5) |
Recognized actuarial loss | 3,854 | 2,390 | 2,293 |
Settlement loss | 0 | (30) | 9 |
Net periodic pension cost | $ 1,924 | $ 1,198 | $ 912 |
Pension Plans - Change in Benef
Pension Plans - Change in Benefit Obligation And Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at fair value, beginning of year | $ 69,879 | ||
Actual return on plan assets | (3,000) | $ 3,500 | $ 1,000 |
Employer contributions | 2,600 | 2,600 | 2,500 |
Plan assets at fair value—end of year | 72,063 | 69,879 | |
Unrecognized actuarial loss | (37,200) | (34,900) | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, beginning of year | 94,983 | 87,864 | |
Service cost | 1,426 | 1,372 | 1,535 |
Interest cost | 527 | 1,199 | 1,260 |
Actuarial (gain) loss | (2,835) | 12,059 | |
Foreign exchange impact | 6,452 | (4,674) | |
Participant contributions | 86 | 154 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Benefits paid | (2,234) | (1,836) | |
Curtailments | (573) | 0 | |
Settlements | 0 | (1,155) | |
Projected benefit obligation, end of year | 97,832 | 94,983 | 87,864 |
Plan assets at fair value, beginning of year | 69,879 | 70,141 | |
Actual return on plan assets | (2,990) | 3,512 | |
Employer contributions | 2,622 | 2,576 | |
Participant contributions | 86 | 154 | |
Foreign exchange impact | 4,700 | (3,513) | |
Settlements | 0 | (1,155) | |
Benefits paid | (2,234) | (1,836) | |
Plan assets at fair value—end of year | 72,063 | 69,879 | $ 70,141 |
Underfunded status | (25,769) | (25,104) | |
Accumulated benefit obligation, end of year | 96,270 | 92,280 | |
Non-current liability | (25,437) | (24,868) | |
Liability, Defined Benefit Plan, Current | (332) | (236) | |
Unrecognized actuarial loss | $ 37,175 | $ 34,920 |
Pension Plans - Change in Accum
Pension Plans - Change in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning balance | $ 1,201,998 | $ 874,589 |
Ending balance | 1,438,248 | 1,201,998 |
Pension Plan | ||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning balance | 34,920 | 27,027 |
Recognized during year - net actuarial losses | (3,850) | (2,385) |
Occurring during year - settlement loss | 0 | 30 |
Occurring during year - net actuarial losses | 3,460 | 12,274 |
Foreign exchange impact | 2,645 | (2,026) |
Ending balance | $ 37,175 | $ 34,920 |
Pension Plans - Percentage of T
Pension Plans - Percentage of Total Plan Assets (Details) - Pension Plan | Sep. 30, 2020 | Sep. 30, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 33.00% | 32.00% |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 34.00% | 46.00% |
Commodity Option | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 11.00% | 2.00% |
Insurance Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 13.00% | 12.00% |
Options | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 1.00% | 0.00% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 8.00% | 8.00% |
Pension Plans - Expected Future
Pension Plans - Expected Future Benefit Payments (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Compensation And Retirement Disclosure [Abstract] | |
2021 | $ 3,813 |
2022 | 4,321 |
2023 | 4,133 |
2024 | 4,822 |
2025 | 4,651 |
2026 to 2030 | $ 23,538 |
Pension Plans - Fair Value of P
Pension Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | $ 72,063 | $ 69,879 |
Government | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 20,663 | 26,996 |
Corporate Investment Grade | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 3,599 | 4,816 |
Large Capitalization Stocks | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 23,878 | 22,648 |
Commodity Option | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 7,750 | 1,086 |
Insurance Company Funds | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 9,131 | 8,494 |
Options | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 1,126 | |
Cash | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 5,916 | 5,839 |
Level 1 | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 62,932 | 61,385 |
Level 1 | Government | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 20,663 | 26,996 |
Level 1 | Corporate Investment Grade | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 3,599 | 4,816 |
Level 1 | Large Capitalization Stocks | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 23,878 | 22,648 |
Level 1 | Commodity Option | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 7,750 | 1,086 |
Level 1 | Options | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 1,126 | |
Level 1 | Cash | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 5,916 | 5,839 |
Level 2 | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | 9,131 | 8,494 |
Level 2 | Insurance Company Funds | ||
Fair Value of Plan Assets [Line Items] | ||
Fair value of plan assets | $ 9,131 | $ 8,494 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | |
Financial assets: | |||
Cash equivalents | [1] | $ 105,299 | $ 108,020 |
Marketable securities: | 59,099 | 57,435 | |
Forward contracts | 903 | 3,064 | |
Financial assets, fair value | 165,301 | 168,519 | |
Financial liabilities: | |||
Forward contracts | 1,073 | 2,771 | |
Financial liabilities, fair value | 1,073 | 2,771 | |
Corporate notes/bonds | |||
Financial assets: | |||
Marketable securities: | 59,099 | 56,436 | |
Commercial paper | |||
Financial assets: | |||
Marketable securities: | 999 | ||
Level 1 | |||
Financial assets: | |||
Cash equivalents | [1] | 105,299 | 108,020 |
Forward contracts | 0 | 0 | |
Financial assets, fair value | 164,398 | 164,456 | |
Financial liabilities: | |||
Forward contracts | 0 | 0 | |
Financial liabilities, fair value | 0 | 0 | |
Level 1 | Corporate notes/bonds | |||
Financial assets: | |||
Marketable securities: | 59,099 | 56,436 | |
Level 1 | Commercial paper | |||
Financial assets: | |||
Marketable securities: | 0 | ||
Level 2 | |||
Financial assets: | |||
Cash equivalents | [1] | 0 | 0 |
Forward contracts | 903 | 3,064 | |
Financial assets, fair value | 903 | 4,063 | |
Financial liabilities: | |||
Forward contracts | 1,073 | 2,771 | |
Financial liabilities, fair value | 1,073 | 2,771 | |
Level 2 | Corporate notes/bonds | |||
Financial assets: | |||
Marketable securities: | 0 | 0 | |
Level 2 | Commercial paper | |||
Financial assets: | |||
Marketable securities: | 999 | ||
Level 3 | |||
Financial assets: | |||
Cash equivalents | [1] | 0 | 0 |
Forward contracts | 0 | 0 | |
Financial assets, fair value | 0 | 0 | |
Financial liabilities: | |||
Forward contracts | 0 | 0 | |
Financial liabilities, fair value | 0 | 0 | |
Level 3 | Corporate notes/bonds | |||
Financial assets: | |||
Marketable securities: | $ 0 | 0 | |
Level 3 | Commercial paper | |||
Financial assets: | |||
Marketable securities: | $ 0 | ||
[1] | Money market funds and time deposits. |
Marketable Securities (Amortize
Marketable Securities (Amortized Cost and Fair Value of Marketable Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 58,793 | $ 57,317 |
Gross unrealized gains | 146 | |
Gross unrealized losses | (28) | |
Fair value | 59,099 | 57,435 |
Corporate notes/bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 58,793 | 56,318 |
Gross unrealized gains | 323 | 146 |
Gross unrealized losses | (17) | (28) |
Fair value | $ 59,099 | 56,436 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 999 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | $ 999 |
Marketable Securities (Schedule
Marketable Securities (Schedule of Fair Value and Gross Unrealized Losses) (Details) - Corporate notes/bonds - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 9,841 | $ 12,419 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (17) | (14) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 16,369 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (14) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | 9,841 | 28,788 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ (17) | $ (28) |
Marketable Securities (Schedu_2
Marketable Securities (Schedule of Available-for-sale Marketable Securities by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, amortized cost | $ 27,727 | $ 27,725 |
Due after one year through three years, amortized cost | 31,066 | 29,592 |
Amortized cost | 58,793 | 57,317 |
Due in one year or less, fair value | 27,899 | 27,735 |
Due after one year through three years, fair value | 31,200 | 29,700 |
Fair value | $ 59,099 | $ 57,435 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Notional Amounts of Outstanding Forward Contracts (Details) - Foreign Exchange Forward - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | $ 512,462 | $ 498,355 |
Canadian / U.S. Dollar | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 6,847 | 9,408 |
Euro / U.S. Dollar | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 390,673 | 308,282 |
Euro / U.S. Dollar | Designated as Hedging Instrument | Net Investment Hedging | ||
Derivative [Line Items] | ||
Notional amount | 164,885 | 183,396 |
British Pound / U.S. Dollar | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 6,328 | 3,756 |
Israeli Shekel / U.S. Dollar | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 9,503 | 10,272 |
Japanese Yen / U.S. Dollar | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 50,379 | 37,462 |
Swiss Franc / U.S. Dollar | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 12,874 | 12,001 |
Swedish Krona / U.S. Dollar | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 18,871 | 20,636 |
Singapore Dollar / U.S. Dollar | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 3,281 | 34,585 |
Chinese Renminbi / U.S. Dollar | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 5,415 | 52,466 |
All other | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | $ 8,291 | $ 9,487 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivative Instruments and Hedging Activities Disclosures (Details) - Foreign Exchange Forward - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Not Designated as Hedging Instrument | Other income (expense), net | |||
Derivative Instruments Gain Loss [Line Items] | |||
Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged | $ 3,518 | $ (11,314) | $ (9,720) |
Designated as Hedging Instrument | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) recognized in OCI—effective portion | 0 | 187 | 1,652 |
Gain (loss) reclassified from OCI into income—effective portion | 0 | 627 | (552) |
Gain (loss) recognized—ineffective portion | 0 | 0 | 21 |
Designated as Hedging Instrument | Net Investment Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) recognized in OCI—effective portion | (5,483) | (2,925) | 0 |
Gain (loss) reclassified from OCI—effective portion | 109 | (7,630) | 0 |
Designated as Hedging Instrument | Other income (expense), net | Net Investment Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) recognized—portion excluded from effectiveness testing | $ 3,506 | $ 4,598 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | |||
Net losses on foreign currency exposures | $ 1.7 | $ 3.2 | $ 7 |
Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged) | $ 7 | $ (8.4) | $ (7.5) |
Forward Contracts | 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) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Derivative [Line Items] | ||
Gross Amount of Recognized Assets | $ 903 | |
Gross Amount of Recognized Liabilities | 1,073 | |
Foreign Exchange Forward | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Assets | 3 | $ 1,674 |
Gross Amount of Recognized Liabilities | 306 | 0 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fair Value of Derivatives Not Designated As Hedging Instruments | 900 | 1,390 |
Fair Value of Derivatives Not Designated As Hedging Instruments | $ 767 | $ 2,771 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Derivative Financial Instruments at Gross Fair Value (Parentheticals) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Derivative [Line Items] | ||
Gross Amount of Recognized Assets | $ 903 | |
Gross Amount of Recognized Liabilities | 1,073 | |
Other Current Assets | Forward Contracts | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Assets | 900 | $ 3,100 |
Other Current Liabilities | Forward Contracts | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Liabilities | $ 1,100 | $ 2,800 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Schedule of Offsetting Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Gross Amount of Recognized Assets | $ 903 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 903 | $ 3,064 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | (903) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | 0 | |
Net Amount | $ 0 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of Offsetting Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Gross Amount of Recognized Liabilities | $ 1,073 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | 1,073 | $ 2,771 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (903) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Amount | $ 170 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) | 12 Months Ended |
Sep. 30, 2020Segmentproduct_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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | $ 1,458,415 | $ 1,255,631 | $ 1,241,824 |
Operating costs | 334,271 | 325,378 | 326,502 |
Gross margin | 1,124,144 | 930,253 | 915,322 |
Sales and marketing | 435,451 | 417,449 | 414,764 |
General and administrative | 159,826 | 127,919 | 143,045 |
Restructuring and other charges, net | 32,716 | 51,114 | 3,764 |
Total operating income | 210,863 | 63,042 | 72,613 |
Interest expense | (76,428) | (43,047) | (41,673) |
Other income (expense), net | 271 | 305 | (2,284) |
Income before income taxes | 134,706 | 20,300 | 28,656 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 1,311,494 | 1,241,824 | |
Total operating income | 101,620 | ||
Interest expense | (43,047) | ||
Other income (expense), net | 131 | ||
Income before income taxes | 58,704 | ||
Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 1,458,415 | 1,255,631 | 1,241,824 |
Operating costs | 522,481 | 511,310 | 524,953 |
Gross margin | 935,934 | 744,321 | 716,871 |
Operating Segments | Software Products | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 1,314,617 | 1,088,100 | 1,088,487 |
Operating costs | 393,803 | 377,464 | 387,989 |
Gross margin | 920,814 | 710,636 | 700,498 |
Operating Segments | Professional Services | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 143,798 | 167,531 | 153,337 |
Operating costs | 128,678 | 133,846 | 136,964 |
Gross margin | 15,120 | 33,685 | 16,373 |
Operating Segments | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 1,311,494 | ||
Operating costs | 504,086 | ||
Gross margin | 807,408 | ||
Operating Segments | Calculated under Revenue Guidance in Effect before Topic 606 | Software Products | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 1,150,818 | ||
Operating costs | 375,268 | ||
Gross margin | 775,550 | ||
Operating Segments | Calculated under Revenue Guidance in Effect before Topic 606 | Professional Services | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenue | 160,676 | ||
Operating costs | 128,818 | ||
Gross margin | 31,858 | ||
Unallocated | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Sales and marketing | 398,100 | 385,423 | 389,871 |
General and administrative | 114,386 | 104,393 | 108,159 |
Intangibles amortization | 56,104 | 51,147 | 58,056 |
Restructuring and other charges, net | 32,716 | 51,114 | 3,764 |
Stock-based compensation | 115,149 | 86,400 | 82,939 |
Other unallocated operating expenses | $ 8,616 | 2,802 | $ 1,469 |
Unallocated | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Sales and marketing | 409,932 | ||
General and administrative | 104,393 | ||
Intangibles amortization | 51,147 | ||
Restructuring and other charges, net | 51,114 | ||
Stock-based compensation | 86,400 | ||
Other unallocated operating expenses | $ 2,802 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 80,817 | $ 77,824 | $ 87,408 |
Unallocated | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | 19,400 | 20,600 | 22,700 |
Software Products | Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | 4,200 | 4,600 | 5,100 |
Professional Services | Operating Segments | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 1,100 | $ 1,400 | $ 1,600 |
Segment and Geographic Inform_6
Segment and Geographic Information - Revenue By Product Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenue | $ 1,458,415 | $ 1,255,631 | $ 1,241,824 |
Operating Segments | |||
Total revenue | 1,458,415 | 1,255,631 | 1,241,824 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Total revenue | 1,311,494 | 1,241,824 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | |||
Total revenue | 1,311,494 | ||
Core Group | Operating Segments | |||
Total revenue | 1,025,668 | 868,970 | 895,149 |
Core Group | Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | |||
Total revenue | 921,386 | ||
Growth Group | Operating Segments | |||
Total revenue | 222,646 | 167,544 | 139,278 |
Growth Group | Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | |||
Total revenue | 175,619 | ||
Focused Solutions Group | Operating Segments | |||
Total revenue | $ 210,101 | 219,117 | $ 207,397 |
Focused Solutions Group | Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | |||
Total revenue | $ 214,489 |
Segment and Geographic Inform_7
Segment and Geographic Information - Revenue By Geographic Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenue | $ 1,458,415 | $ 1,255,631 | $ 1,241,824 |
Operating Segments | |||
Total revenue | 1,458,415 | 1,255,631 | 1,241,824 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Total revenue | 1,311,494 | 1,241,824 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | |||
Total revenue | 1,311,494 | ||
Americas | Operating Segments | |||
Total revenue | 649,383 | 537,548 | 511,237 |
Americas | Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | |||
Total revenue | 565,362 | ||
Europe | Operating Segments | |||
Total revenue | 543,779 | 464,666 | 485,851 |
Europe | Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | |||
Total revenue | 494,864 | ||
Asia Pacific | Operating Segments | |||
Total revenue | $ 265,253 | 253,417 | $ 244,736 |
Asia Pacific | Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | |||
Total revenue | $ 251,268 |
Segment and Geographic Inform_8
Segment and Geographic Information - Revenue By Geographic Segment (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenue | $ 1,458,415 | $ 1,255,631 | $ 1,241,824 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Total revenue | 1,311,494 | 1,241,824 | |
United States | |||
Total revenue | 621,800 | 514,400 | 487,300 |
United States | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Total revenue | 541,700 | ||
Germany | |||
Total revenue | $ 198,700 | 185,400 | $ 193,300 |
Germany | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Total revenue | $ 197,200 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended | |
Sep. 30, 2020USD ($)ft² | Sep. 30, 2019USD ($) | |
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 | |
Operating right-of-use lease assets | 149,933,000 | $ 0 |
Operating lease, liability | 215,023,000 | |
Lease Cost | ||
Operating cash flows from operating leases | 38,553,000 | |
Onshape | ||
Lessee Lease Description [Line Items] | ||
Operating lease, impairment loss | 1,200,000 | |
Facility Closures and Related Costs | ||
Lessee Lease Description [Line Items] | ||
Operating lease liability, net. restructured facilities | 11,300,000 | $ 16,500,000 |
Operating right-of-use lease assets | 3,200,000 | |
Operating lease, liability | 14,500,000 | |
Lease Cost | ||
Operating cash flows from operating leases | 10,500,000 | |
Facility Closures and Related Costs | Prior Headquarters | ||
Lessee Lease Description [Line Items] | ||
Operating lease, impairment loss | 4,400,000 | |
Facility Closures and Related Costs | Operating Lease Short Term Lease Obligation | ||
Lessee Lease Description [Line Items] | ||
Operating lease, liability | 9,700,000 | |
Facility Closures and Related Costs | Operating Lease Long Term Lease Obligation | ||
Lessee Lease Description [Line Items] | ||
Operating lease, liability | 4,800,000 | |
Sublease Income Committed | ||
Lessee Lease Description [Line Items] | ||
Sublease income assumed | 2,800,000 | |
Sublease Income Estimated Uncommitted | ||
Lessee Lease Description [Line Items] | ||
Sublease income assumed | $ 400,000 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Lease Cost | |
Operating lease cost | $ 38,687 |
Short-term lease cost | 4,430 |
Variable lease cost | 5,247 |
Sublease income | (4,267) |
Total lease cost | $ 44,097 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow and Right of Use Assets Information (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 38,553 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 7,632 |
Right-of-use assets obtained in exchange for new financing lease liabilities | $ 1,500 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) | Sep. 30, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term - operating leases | 12 years 4 months 28 days |
Weighted-average remaining lease term - financing leases | 5 years |
Weighted-average discount rate - operating leases | 5.50% |
Weighted-average discount rate - financing leases | 3.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Operating Lease (ASC 842) | |
2021 | $ 44,710 |
2022 | 30,993 |
2023 | 22,326 |
2024 | 19,686 |
2025 | 17,051 |
Thereafter | 170,303 |
Total future lease payments | 305,069 |
Less: imputed interest | (90,046) |
Total | $ 215,023 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases Under Prior Lease Standard (ASC 840) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases (ASC 840) | |
2020 | $ 31,868 |
2021 | 33,094 |
2022 | 25,624 |
2023 | 19,279 |
2024 | 16,909 |
Thereafter | 186,037 |
Total minimum lease payments | $ 312,811 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Nov. 15, 2020 | Oct. 27, 2020 | Sep. 30, 2020 | Nov. 13, 2020 |
Subsequent Event [Line Items] | ||||
Vesting period | 1 year 3 months 18 days | |||
Performance-Based Restricted Stock Units | ||||
Subsequent Event [Line Items] | ||||
Vesting period | 3 years | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Stock authorized to repurchase | $ 1,000,000,000 | |||
Subsequent Event | Corporate Incentive Plan | ||||
Subsequent Event [Line Items] | ||||
Restricted stock units granted, value | $ 14,000,000 | |||
Subsequent Event | Corporate Incentive Plan | Executive Officers | ||||
Subsequent Event [Line Items] | ||||
Restricted stock units granted, value | 2,600,000 | |||
Subsequent Event | Service-Based Restricted Stock Units | ||||
Subsequent Event [Line Items] | ||||
Restricted stock units granted, value | $ 53,000,000 | |||
Vesting period | 3 years | |||
Subsequent Event | Service-Based Restricted Stock Units | Executive Officers | ||||
Subsequent Event [Line Items] | ||||
Restricted stock units granted, value | $ 19,600,000 | |||
Subsequent Event | Performance-Based Restricted Stock Units | ||||
Subsequent Event [Line Items] | ||||
Vesting period | 3 years | |||
Subsequent Event | Performance-Based Restricted Stock Units | Executive Officers | ||||
Subsequent Event [Line Items] | ||||
Restricted stock units granted, value | $ 17,000,000 | |||
Revolving Credit Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Debt repaid | $ 18,000,000 |