Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 16, 2016 | Apr. 02, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Entity Registrant Name | PTC Inc. | ||
Entity Central Index Key | 857,005 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 115,604,111 | 114,620,630 | |
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,742,819,047 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 277,935 | $ 273,417 |
Short term marketable securities | 18,695 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $1,012 and $998 at September 30, 2016 and 2015, respectively | 161,357 | 197,275 |
Prepaid expenses | 52,819 | 56,365 |
Other current assets | 131,783 | 140,819 |
Deferred tax assets | 0 | 36,803 |
Total current assets | 642,589 | 704,679 |
Property and equipment, net | 67,113 | 65,162 |
Goodwill | 1,169,813 | 1,069,041 |
Acquired intangible assets, net | 310,305 | 291,301 |
Long term marketable securities | 30,921 | 0 |
Deferred tax assets | 89,692 | 38,936 |
Other assets | 41,820 | 40,794 |
Total assets | 2,352,253 | 2,209,913 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 18,022 | 13,361 |
Accrued expenses and other current liabilities | 84,141 | 97,613 |
Accrued compensation and benefits | 145,633 | 82,414 |
Accrued income taxes | 6,303 | 4,010 |
Deferred tax liabilities | 0 | 1,622 |
Current portion of long term debt | 0 | 50,000 |
Deferred revenue | 400,420 | 368,240 |
Total current liabilities | 654,519 | 617,260 |
Long term debt, net of current portion | 758,125 | 618,125 |
Deferred tax liabilities | 13,754 | 42,361 |
Deferred revenue | 13,237 | 18,610 |
Other liabilities | 69,952 | 53,386 |
Total liabilities | 1,509,587 | 1,349,742 |
Commitments and contingencies (Note I) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 500,000 shares authorized; 114,968 and 113,745 shares issued and outstanding at September 30, 2016 and 2015, respectively | 1,150 | 1,137 |
Additional paid-in capital | 1,598,548 | 1,553,390 |
Accumulated deficit | (657,079) | (602,614) |
Accumulated other comprehensive loss | (99,953) | (91,742) |
Total stockholders' equity | 842,666 | 860,171 |
Total liabilities and stockholders' equity | $ 2,352,253 | $ 2,209,913 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Allowance for doubtful accounts | $ 1,012 | $ 998 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 114,968,000 | 113,745,000 |
Common stock, shares outstanding | 114,968,000 | 113,745,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | |||
Subscription | $ 118,322 | $ 65,239 | $ 27,137 |
Support | 651,807 | 681,524 | 688,502 |
Total recurring software revenue | 770,129 | 746,763 | 715,639 |
Perpetual license | 173,467 | 282,760 | 362,602 |
Total software revenue | 943,596 | 1,029,523 | 1,078,241 |
Professional services | 196,937 | 225,719 | 278,726 |
Total revenue | 1,140,533 | 1,255,242 | 1,356,967 |
Cost of revenue: | |||
Cost of software revenue | 155,439 | 135,992 | 129,708 |
Cost of professional services revenue | 170,226 | 198,742 | 243,975 |
Total cost of revenue | 325,665 | 334,734 | 373,683 |
Gross margin | 814,868 | 920,508 | 983,284 |
Sales and marketing | 367,465 | 346,794 | 367,454 |
Research and development | 229,331 | 227,513 | 226,496 |
General and administrative | 145,615 | 158,715 | 132,225 |
U.S. pension settlement loss | 0 | 66,332 | 0 |
Amortization of acquired intangible assets | 33,198 | 36,129 | 32,127 |
Restructuring charges | 76,273 | 43,409 | 28,406 |
Total operating expenses | 851,882 | 878,892 | 786,708 |
Operating income (loss) | (37,014) | 41,616 | 196,576 |
Foreign currency losses, net | (1,889) | (2,706) | (4,469) |
Interest income | 3,437 | 3,697 | 3,117 |
Interest expense | (29,882) | (14,742) | (8,155) |
Other expense (income), net | (1,844) | (1,340) | (957) |
Income (loss) before income taxes | (67,192) | 26,525 | 186,112 |
Provision (benefit) for income taxes | (12,727) | (21,032) | 25,918 |
Net income (loss) | $ (54,465) | $ 47,557 | $ 160,194 |
Earnings (loss) per share—Basic (in USD per share) | $ (0.48) | $ 0.41 | $ 1.36 |
Earnings (loss) per share—Diluted (in USD per share) | $ (0.48) | $ 0.41 | $ 1.34 |
Weighted average shares outstanding—Basic (in shares) | 114,612 | 114,775 | 118,094 |
Weighted average shares outstanding—Diluted (in shares) | 114,612 | 116,012 | 119,984 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ (54,465) | $ 47,557 | $ 160,194 |
Other comprehensive income (loss), net of tax: | |||
Unrealized hedge gain (loss) arising during the period | (3,375) | 0 | 0 |
Net hedge loss reclassified into earnings | 2,131 | 0 | 0 |
Unrealized loss on hedging instruments | (1,244) | 0 | 0 |
Foreign currency translation adjustment, net of tax of $0 for all periods | 408 | (47,177) | (24,069) |
Unrealized loss on marketable securities, net of tax | (122) | 0 | 0 |
Amortization of net actuarial pension loss included in net income, net of tax of $0.7 million, $18.5 million, and $0.3 million in 2016, 2015 and 2014, respectively | 1,609 | 52,249 | 3,048 |
Pension net loss arising during the period net of tax of $3.5 million, $1.6 million and $2.8 million in 2016, 2015, and 2014, respectively | (8,646) | (4,797) | (24,267) |
Change in unamortized pension loss during the period related to changes in foreign currency | (216) | 2,350 | 2,081 |
Other comprehensive income (loss) | (8,211) | 2,625 | (43,207) |
Comprehensive income (loss) | $ (62,676) | $ 50,182 | $ 116,987 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive (Loss) Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Tax provision (benefit) related to pension net gain(loss) occurring during the year | (3.5) | (1.6) | (2.8) |
Tax benefit related to amortization of net actuarial loss | $ 0.7 | $ 18.5 | $ 0.3 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | |||
Net income | $ (54,465) | $ 47,557 | $ 160,194 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Stock-based compensation | 65,996 | 50,182 | 50,889 |
Depreciation and amortization | 86,554 | 84,433 | 77,307 |
Benefit from deferred income taxes | (44,182) | (49,361) | (19,946) |
Excess tax benefits realized from stock-based awards | (93) | (24) | (10,428) |
Pension settlement loss | 0 | 66,332 | 0 |
Other non-cash costs, net | 966 | 157 | (760) |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||
Accounts receivable | 52,617 | 29,723 | 7,554 |
Accounts payable and accrued expenses | (14,185) | 31,134 | (436) |
Accrued compensation and benefits | 60,944 | (56,950) | 8,974 |
Deferred revenue | 16,232 | 8,852 | 24,998 |
Accrued income taxes, net of income tax receivable | 6,749 | (3,536) | 19,134 |
Other current assets and prepaid expenses | 4,591 | (10,716) | 4,417 |
Other noncurrent assets | 1,444 | (17,880) | (17,345) |
Net cash provided by operating activities | 183,168 | 179,903 | 304,552 |
Cash flows from investing activities: | |||
Additions to property and equipment | (26,189) | (30,628) | (25,275) |
Acquisitions of businesses, net of cash acquired | (165,802) | (98,411) | (323,525) |
Purchases of investments | (45,165) | (11,000) | 0 |
Net cash used by investing activities | (237,156) | (140,039) | (348,800) |
Cash flows from financing activities: | |||
Borrowings under credit facility | 670,000 | 185,000 | 1,386,250 |
Repayments of borrowings under revolving credit facility | (580,000) | (128,750) | (1,032,500) |
Repurchases of common stock | 0 | (64,940) | (224,915) |
Proceeds from issuance of common stock | 21 | 41 | 877 |
Excess tax benefits realized from stock-based awards | 93 | 24 | 10,428 |
Payments of withholding taxes in connection with vesting of stock-based awards | (20,939) | (29,207) | (26,857) |
Credit facility origination costs | (6,855) | 0 | (7,930) |
Contingent consideration | (10,621) | (4,323) | 0 |
Net cash provided (used) by financing activities | 51,699 | (42,155) | 105,353 |
Effect of exchange rate changes on cash and cash equivalents | 6,807 | (17,946) | (9,364) |
Net increase (decrease) in cash and cash equivalents | 4,518 | (20,237) | 51,741 |
Cash and cash equivalents, beginning of year | 273,417 | 293,654 | 241,913 |
Cash and cash equivalents, end of year | 277,935 | 273,417 | 293,654 |
Fair value of contingent consideration recorded for acquisition | $ 16,900 | $ 3,800 | $ 13,048 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance, shares at Sep. 30, 2013 | 118,446 | ||||
Beginning Balance, value at Sep. 30, 2013 | $ 926,480 | $ 1,185 | $ 1,786,820 | $ (810,365) | $ (51,160) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued for employee stock-based awards, shares | 2,455 | ||||
Common stock issued for employee stock-based awards, value | 877 | $ 24 | 853 | ||
Shares surrendered by employees to pay taxes related to stock-based awards, shares | (808) | ||||
Shares surrendered by employees to pay taxes related to stock-based awards, value | (26,857) | $ (8) | (26,849) | ||
Compensation expense from stock-based awards | 50,889 | 50,889 | |||
Excess tax benefits (tax shortfalls) from stock-based awards | 10,428 | 10,428 | |||
Net income | $ 160,194 | 160,194 | |||
Repurchases of common stock, shares | (5,100) | (5,068) | |||
Repurchases of common stock, value | $ (187,415) | $ (51) | (187,364) | ||
Common stock repurchase holdback | (37,500) | (37,500) | |||
Unrealized loss on hedging instruments, net of tax | 0 | ||||
Foreign currency translation adjustment | (24,069) | (24,069) | |||
Unrealized loss on available-for-sale securities, net of tax | 0 | ||||
Change in pension benefits, net of tax | (19,138) | (19,138) | |||
Ending Balance, shares at Sep. 30, 2014 | 115,025 | ||||
Ending Balance, value at Sep. 30, 2014 | 853,889 | $ 1,150 | 1,597,277 | (650,171) | (94,367) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued for employee stock-based awards, shares | 2,212 | ||||
Common stock issued for employee stock-based awards, value | 41 | $ 22 | 19 | ||
Shares surrendered by employees to pay taxes related to stock-based awards, shares | (764) | ||||
Shares surrendered by employees to pay taxes related to stock-based awards, value | (29,207) | $ (8) | (29,199) | ||
Compensation expense from stock-based awards | 50,182 | 50,182 | |||
Excess tax benefits (tax shortfalls) from stock-based awards | 24 | 24 | |||
Net income | $ 47,557 | 47,557 | |||
Repurchases of common stock, shares | (2,700) | (2,728) | |||
Repurchases of common stock, value | $ (64,940) | $ (27) | (64,913) | ||
Unrealized loss on hedging instruments, net of tax | 0 | ||||
Foreign currency translation adjustment | (47,177) | (47,177) | |||
Unrealized loss on available-for-sale securities, net of tax | 0 | ||||
Change in pension benefits, net of tax | $ 49,802 | 49,802 | |||
Ending Balance, shares at Sep. 30, 2015 | 113,745 | 113,745 | |||
Ending Balance, value at Sep. 30, 2015 | $ 860,171 | $ 1,137 | 1,553,390 | (602,614) | (91,742) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued for employee stock-based awards, shares | 1,820 | ||||
Common stock issued for employee stock-based awards, value | 21 | $ 18 | 3 | ||
Shares surrendered by employees to pay taxes related to stock-based awards, shares | (597) | ||||
Shares surrendered by employees to pay taxes related to stock-based awards, value | (20,939) | $ (5) | (20,934) | ||
Compensation expense from stock-based awards | 65,996 | 65,996 | |||
Excess tax benefits (tax shortfalls) from stock-based awards | 93 | 93 | |||
Net income | (54,465) | (54,465) | |||
Unrealized loss on hedging instruments, net of tax | (1,244) | (1,244) | |||
Foreign currency translation adjustment | 408 | 408 | |||
Unrealized loss on available-for-sale securities, net of tax | (122) | (122) | |||
Change in pension benefits, net of tax | $ (7,253) | (7,253) | |||
Ending Balance, shares at Sep. 30, 2016 | 114,968 | 114,968 | |||
Ending Balance, value at Sep. 30, 2016 | $ 842,666 | $ 1,150 | $ 1,598,548 | $ (657,079) | $ (99,953) |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Sep. 30, 2016 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Description of Business and Basis Of Presentation | Description of Business and Basis of Presentation Business PTC Inc. was incorporated in 1985 and is headquartered in Needham, Massachusetts. PTC Inc. develops and delivers technology solutions, comprised of software and services, that transform the way our customers create, operate and service their products for a smart, connected world. Our technology solutions are complemented by our services and support organizations, as well as third-party resellers and other strategic partners, who provide services and support to customers worldwide. Basis of Presentation Our fiscal year-end is September 30. The consolidated financial statements include PTC Inc. (the parent company) and its wholly owned subsidiaries, including those operating outside the U.S. All intercompany balances and transactions have been eliminated in the consolidated financial statements. In 2015, we recorded an out of period correction of approximately $6.4 million of additional revenue that was deferred and should have been recognized previously. Management believes this correction was not material to the then current period financial statements or any previously issued financial statements. We prepare our financial statements under generally accepted accounting principles in the U.S. that require management to make estimates and assumptions that affect the amounts reported and the related disclosures. Actual results could differ from these estimates. Reclassifications In 2015, we classified 2015 and 2014 revenue and cost of revenue in three categories: 1) license and subscription ("L&S"), 2) support and 3) professional services. Effective with the beginning of the first quarter of 2016, we are reporting perpetual license revenue separately from subscription revenue and are presenting revenue in four categories: 1) subscription, 2) support, 3) perpetual license and 4) professional services. Effective with the beginning of the first quarter of 2016, we are combining cost of license and subscription revenue with cost of support revenue and reporting it as cost of software revenue. As a result, we are presenting cost of revenue in two categories: 1) cost of software revenue and 2) cost of professional services revenue. Effective with the beginning of the first quarter of 2016, we reclassified certain expenses related to management of our product lines from general and administrative to marketing. The following revenue and costs have been reclassified in the accompanying Consolidated Statements of Operations for the year ended September 30, 2015 and 2014 to conform to the current period presentation. Year Ended September 30, 2015 2014 Reclassifications within revenue (in millions) From L&S to Perpetual License $ 282.8 $ 362.6 From L&S to Subscription 65.2 27.1 Reclassifications within cost of revenue From L&S to Software $ 53.2 $ 45.0 From Support to Software 82.8 84.7 Reclassifications within operating expenses From General and Administrative to Selling and Marketing $ 8.0 $ 10.0 Segments Through the second quarter of 2016, we had two operating and reportable segments: (1) Software Products, which included license and related support revenue (including updates and technical support) for all our products except training-related products; and (2) Services, which included consulting, implementation, training, cloud services, computer-based training products, including support on these products, and other services revenue. With a change in our organizational structure in an effort to create more effective and efficient operations and to improve customer and product focus, during the three months ended July 2, 2016, we revised the information that our chief executive officer, who is also our chief operating decision maker (“CODM”), regularly reviews for purposes of allocating resources and assessing performance. As a result, effective with the beginning of the third quarter of 2016, we changed our operating and reportable segments from two to three : (1) the Solutions Group, which includes license, subscription, support and cloud services revenue for our core CAD, SLM and PLM products; (2) the IoT Group, which includes license, subscription, support and cloud services revenue for our IoT, analytics and augmented reality solutions; and (3) Professional Services, which includes consulting, implementation and training revenue. Revenue and operating income in Note O. Segment Information have been reclassified to conform to the current period presentation. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Foreign Currency Translation For our non-U.S. operations where the functional currency is the local currency, we translate assets and liabilities at exchange rates in effect at the balance sheet date and record translation adjustments in stockholders’ equity. For our non-U.S. operations where the U.S. dollar is the functional currency, we remeasure monetary assets and liabilities using exchange rates in effect at the balance sheet date and nonmonetary assets and liabilities at historical rates and record resulting exchange gains or losses in foreign currency net losses in the Consolidated Statements of Operations. We translate income statement amounts at average rates for the period. Transaction gains and losses are recorded in foreign currency net losses in the Consolidated Statements of Operations. Revenue Recognition Our sources of revenue include: (1) subscription, (2) support, (3) perpetual license and (4) professional services. We record revenues for software related deliverables in accordance with the guidance provided by ASC 985-605, Software-Revenue Recognition and revenues for non-software deliverables in accordance with ASC 605-25 , Revenue Recognition, Multiple-Element Arrangements when the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred (generally, FOB shipping point or electronic distribution), (3) the fee is fixed or determinable, and (4) collection is probable. We exercise judgment and use estimates in connection with determining the amounts of software license and services revenues to be recognized in each accounting period. Our primary judgments involve the following: • determining whether collection is probable; • assessing whether the fee is fixed or determinable; • determining whether service arrangements, including modifications and customization of the underlying software, are not essential to the functionality of the licensed software and thus would result in the revenue for license and service elements of an agreement being recorded separately; and • determining the fair value of services and support elements included in multiple-element arrangements, which is the basis for allocating and deferring revenue for such services and support. Our software is distributed primarily through our direct sales force. In addition, we have an indirect distribution channel through alliances with resellers. Revenue arrangements with resellers are generally recognized on a sell-through basis; that is, when we deliver the product to the end-user customer. We record consideration given to a reseller as a reduction of revenue to the extent we have recorded revenue from the reseller. We do not offer contractual rights of return, stock balancing, or price protection to our resellers, and actual product returns from them have been insignificant to date. As a result, we do not maintain reserves for reseller product returns. At the time of each sale transaction, we must make an assessment of the collectability of the amount due from the customer. Revenue is only recognized at that time if management deems that collection is probable. In making this assessment, we consider customer credit-worthiness and historical payment experience. At that same time, we assess whether fees are fixed or determinable and free of contingencies or significant uncertainties. In assessing whether the fee is fixed or determinable, we consider the payment terms of the transaction, including transactions with payment terms that extend beyond our customary payment terms, and our collection experience in similar transactions without making concessions, among other factors. We have periodically provided financing to credit-worthy customers with payment terms up to 24 months. If the fee is determined not to be fixed or determinable, revenue is recognized only as payments become due from the customer, provided that all other revenue recognition criteria are met. Our software license arrangements generally do not include customer acceptance provisions. However, if an arrangement includes an acceptance provision, we record revenue only upon the earlier of (1) receipt of written acceptance from the customer or (2) expiration of the acceptance period. Generally, our contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. Subscription Subscription revenue includes revenue from two primary sources: (1) subscription-based licenses, and (2) cloud services. Subscription-based licenses include the right for a customer to use our licenses and receive related support for a specified term and revenue is recognized ratably over the term of the arrangement. When sold in arrangements with other elements, VSOE of fair value is established for the subscription-based licenses through the use of a substantive renewal clause within the customer contract for a combined annual fee that includes the term-based license and related support. Cloud services reflect recurring revenues that include fees for hosting and application management of customers’ perpetual or subscription-based licenses. Generally, customers have the right to terminate the cloud services contract and take possession of the licenses without a significant penalty. When cloud services are sold as part of a multi-element transaction, revenue is allocated to cloud services based on VSOE, and recognized ratably over the contractual term beginning on the commencement dates of each contract, which is the date the services are made available to the customer. VSOE is established for cloud services either through a substantive stated renewal option or stated contractual overage rates, as these rates represent the value the customer is willing to pay on a standalone basis. We also offer Cloud services under SaaS arrangements whereby customers access our software in the cloud. Under SaaS arrangements, customers are not entitled to terminate the cloud services and cannot take possession of the software. Cloud services include set-up fees, which are recognized ratably over the contract term or the expected customer life, whichever is longer. Support Support contracts generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates and bug fixes. Support revenue is recognized ratably over the term of the support contract on a straight-line basis. Perpetual License Under perpetual license arrangements, we generally recognize license revenue up front upon shipment to the customer. We use the residual method to recognize revenue from perpetual license software arrangements that include one or more elements to be delivered at a future date when evidence of the fair value of all undelivered elements exists, and the elements of the arrangement qualify for separate accounting as described below. Under the residual method, the fair value of the undelivered elements (i.e., support and services) based on our vendor-specific objective evidence (“VSOE”) of fair value is deferred and the remaining portion of the total arrangement fee is allocated to the delivered elements (i.e., perpetual software license). If evidence of the fair value of one or more of the undelivered elements does not exist, all revenues are deferred and recognized when delivery of all of those elements has occurred or when fair values can be established. We determine VSOE of the fair value of services and support revenue based upon our recent pricing for those elements when sold separately. For certain transactions, VSOE is determined based on a substantive renewal clause within a customer contract. Our current pricing practices are influenced primarily by product type, purchase volume, sales channel and customer location. We review services and support sold separately on a periodic basis and update, when appropriate, our VSOE of fair value for such elements to ensure that it reflects our recent pricing experience. Professional Services Our software arrangements often include implementation, consulting and training services that are sold under consulting engagement contracts or as part of the software license arrangement. When we determine that such services are not essential to the functionality of the licensed software, we record revenue separately for the license and service elements of these arrangements, provided that appropriate evidence of fair value exists for the undelivered services (i.e. VSOE of fair value). We consider various factors in assessing whether a service is not essential to the functionality of the software, including if the services may be provided by independent third parties experienced in providing such services (i.e. consulting and implementation) in coordination with dedicated customer personnel, and whether the services result in significant modification or customization of the software’s functionality. When professional services qualify for separate accounting, professional services revenues under time and materials billing arrangements are recognized as the services are performed. Professional services revenues under fixed-priced contracts are generally recognized as the services are performed using a proportionate performance model with hours or costs as the input method of attribution. When we provide professional services that are considered essential to the functionality of the software, the arrangement does not qualify for separate accounting of the license and service elements, and the license revenue is recognized together with the consulting services using the percentage-of-completion method of contract accounting. Under such arrangements, consideration is recognized as the services are performed as measured by an observable input. In these circumstances, we separate license revenue from service revenue for income statement presentation by allocating VSOE of fair value of the consulting services as service revenue, and the residual portion as license revenue. Under the percentage-of-completion method, we estimate the stage of completion of contracts with fixed or “not to exceed” fees based on hours or costs incurred to date as compared with estimated total project hours or costs at completion. Adjustments to estimates to complete are made in the periods in which facts resulting in a change become known. When total cost estimates exceed revenues, we accrue for the estimated losses when identified. The use of the proportionate performance and percentage-of-completion methods of accounting require significant judgment relative to estimating total contract costs or hours (hours being a proxy for costs), including assumptions relative to the length of time to complete the project, the nature and complexity of the work to be performed and anticipated changes in salaries and other costs. Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in professional services revenue, with the offsetting expense recorded in cost of professional services revenue. Training services include on-site and classroom training. Training revenues are recognized as the related training services are provided. Deferred Revenue Deferred revenue primarily relates to software subscription and support agreements billed to customers for which the services have not yet been provided. The liability associated with performing these services is included in deferred revenue and, if not yet paid, the related customer receivable is included in other current assets. Billed but uncollected support and subscription-related amounts included in other current assets at September 30, 2016 and 2015 were $126.3 million and $129.3 million , respectively. Deferred revenue consisted of the following: September 30, 2016 2015 (in thousands) Deferred subscription revenue $ 102,847 $ 37,478 Deferred support revenue 297,684 331,793 Deferred perpetual license revenue 4,151 4,940 Deferred professional services revenue 8,975 12,639 Total deferred revenue $ 413,657 $ 386,850 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 The amortized cost and fair value of marketable securities as of September 30, 2016 were as follows: September 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (in thousands) Certificates of deposit $ 681 $ — $ — $ 681 Commercial paper 11,945 — (20 ) 11,925 Corporate notes/bonds 34,701 — (100 ) 34,601 US government agency securities 2,411 — (2 ) 2,409 $ 49,738 $ — $ (122 ) $ 49,616 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 due to changes in market interest rates, bond yields and/or credit ratings. We review our investments to identify and evaluate investments that have an indication of possible impairment. We concluded that, at September 30, 2016, the unrealized losses were temporary. The following table presents our available-for-sale marketable securities by contractual maturity date, as of September 31, 2016. September 31, 2016 Amortized cost Fair value (in thousands) Due in one year or less $ 18,585 $ 18,549 Due after one year through three years 31,153 31,067 $ 49,738 $ 49,616 Cost Method Investments We generally account for non-marketable equity investments under the cost method. 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. For an other-than-temporary impairment in the investment, we record a charge to other expense for the difference between the estimated fair value and the carrying value. The carrying value of our non-marketable equity investments are recorded in noncurrent assets and totaled $11.6 million and $11.0 million as of September 30, 2016 and 2015, 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 large numbers of geographically diverse customers dispersed across many industries. No individual customer comprised more than 10% of our trade accounts receivable as of September 30, 2016 or 2015 or comprised more than 10% of our revenue for the years ended September 30, 2016, 2015 or 2014. Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. Generally accepted accounting principles prescribe a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs that may be used to measure fair value: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or • Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. 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. 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 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 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. The fair value of our contingent consideration arrangements are determined based on our evaluation as to the probability and amount of any earn-out that will be achieved based on expected future performances by the acquired entities. These arrangements are classified within Level 3 of the fair value hierarchy. Our significant financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and 2015 were as follows: September 30, 2016 Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash equivalents (1) $ 60,139 $ — $ — $ 60,139 Marketable securities Certificates of deposit — 681 — 681 Commercial paper — 11,925 — 11,925 Corporate notes/bonds 34,601 — — 34,601 U.S. government agency securities — 2,409 — 2,409 Forward contracts — 260 — 260 $ 94,740 $ 15,275 $ — $ 110,015 Financial liabilities: Contingent consideration related acquisitions $ — $ — $ 19,570 $ 19,570 Forward contracts — 3,170 — 3,170 $ — $ 3,170 $ 19,570 $ 22,740 September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash equivalents (1) $ 91,216 $ — $ — $ 91,216 Forward contracts — 507 — 507 $ 91,216 $ 507 $ — $ 91,723 Financial liabilities: Contingent consideration related to acquisitions $ — $ — $ 13,000 $ 13,000 Forward contracts — 46 — 46 $ — $ 46 $ 13,000 $ 13,046 (1) Money market funds and time deposits. For a description of the inputs used to value the contingent consideration liability see Note E Acquisitions . Changes in the fair value of Level 3 contingent consideration liability associated with our acquisitions of ThingWorx, ColdLight and Kepware were as follows: Contingent Consideration (in thousands) ThingWorx ColdLight Kepware Total Balance at October 1, 2014 $ 15,191 $ — $ — $ 15,191 Contingent consideration at acquisition — 3,800 — 3,800 Change in fair value of contingent consideration 2,809 200 — 3,009 Payment of contingent consideration (9,000 ) — — (9,000 ) Balance at October 1, 2015 9,000 4,000 — 13,000 Contingent consideration at acquisition — — 16,900 16,900 Change in fair value of contingent consideration — 1,000 170 1,170 Payment of contingent consideration (9,000 ) (2,500 ) — (11,500 ) Balance at September 30, 2016 $ — $ 2,500 $ 17,070 $ 19,570 Of the total, $11.8 million of the contingent consideration liabilities is included in accrued expenses and other current liabilities, with the remaining $7.8 million in other liabilities in the Consolidated Balance Sheet as of September 30, 2016 . Allowance for Doubtful Accounts We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. In determining the adequacy of the allowance for doubtful accounts, management specifically analyzes individual accounts receivable, historical bad debts, customer concentrations, customer credit-worthiness, current economic conditions, and accounts receivable aging trends. Our allowance for doubtful accounts on trade accounts receivable was $1.0 million as of September 30, 2016 , $1.0 million as of September 30, 2015 , $1.6 million as of September 30, 2014 and $3.0 million as of September 30, 2013 . Uncollectible trade accounts receivable written-off, net of recoveries, were $0.3 million , $0.8 million and $0.6 million in 2016 , 2015 and 2014 , respectively. Bad debt (credit) expense was $0.3 million , $0.2 million and $(0.8) million in 2016 , 2015 and 2014 , respectively, and is included in general and administrative expenses in the accompanying Consolidated Statements of Operations. Financing Receivables and Transfers of Financial Assets We periodically provide extended payment terms for software purchases to credit-worthy customers with payment terms up to 24 months. The determination of whether to offer such payment terms is based on the size, nature and credit-worthiness of the customer, and the history of collecting amounts due, without concession, from the customer and customers generally. This determination is based on an internal credit assessment. In making this assessment, we use the Standard & Poor's (S&P) credit rating as our primary credit quality indicator, if available. If a customer, whether commercial and U.S. Federal government, has an S&P bond rating of BBB- or above, we designate the customer as a Tier 1. If a customer does not have an S&P bond rating, or has a S&P bond rating below BBB-, we base our assessment on an internal credit assessment which considers selected balance sheet, operating and liquidity measures, historical payment experience, and current business conditions within the industry or region. We designate these customers as Tier 2 or Tier 3, with Tier 3 being lower credit quality than Tier 2. As of September 30, 2016 and 2015 , amounts due from customers for contracts with original payment terms greater than twelve months (financing receivables) totaled $7.1 million and $27.4 million , respectively. Accounts receivable and other current assets in the accompanying Consolidated Balance Sheets include current receivables from such contracts totaling $7.1 million and $21.8 million at September 30, 2016 and 2015 , respectively, and other assets in the accompanying Consolidated Balance Sheets include long-term receivables from such contracts totaling $5.6 million at September 30, 2015 and none at September 30, 2016 . As of September 30, 2016 and September 30, 2015 , $0.1 million and $0.5 million , respectively, of these receivables were past due. Our credit risk assessment for financing receivables was as follows: September 30, 2016 2015 (in thousands) S&P bond rating BBB- and above-Tier 1 $ 5,953 $ 16,841 Internal Credit Assessment-Tier 2 1,182 10,593 Internal Credit Assessment-Tier 3 — — Total financing receivables $ 7,135 $ 27,434 We evaluate the need for an allowance for doubtful accounts for estimated losses resulting from the inability of these customers to make required payments. As of September 30, 2016 and 2015 , we concluded that all financing receivables were collectible and no reserve for credit losses was recorded. We did not provide a reserve for credit losses or write off any uncollectible financing receivables in 2016 , 2015 and 2014 . We write off uncollectible trade and financing receivables when we have exhausted all collection avenues. We periodically transfer future payments under certain of these contracts to third-party financial institutions on a non-recourse basis. We record such transfers as sales of the related accounts receivable when we surrender control of such receivables. In 2016 , we did not sell any financing receivables to third-party financial institutions. In 2015 and 2014 , we sold $3.0 million and $24.5 million , respectively, of financing receivables to third-party financial institutions. Derivatives Generally accepted accounting principles require all derivatives, whether designated in a hedging relationship or not, to be recorded on the balance sheet at fair value. 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 currency, 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 and cash flow hedge activities see Note N 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 and losses on forward contracts and foreign denominated receivables and payables are included in other income (expense), net. Cash Flow Hedges Our foreign exchange risk management program objective is to identify foreign exchange exposures and implement appropriate hedging strategies to minimize earnings fluctuations resulting from foreign exchange rate movements. We designate certain foreign exchange forward contracts as cash flow hedges of Euro, Yen and SEK denominated intercompany forecasted revenue transactions (supported by third party sales). All foreign exchange forward contracts are carried at fair value on the Consolidated Balance Sheets and the maximum duration of foreign exchange forward contracts does not exceed 13 months. Cash flow hedge relationships are designated at inception, and effectiveness is assessed prospectively and retrospectively using regression analysis on a monthly basis. As the forward contracts are highly effective in offsetting changes to future cash flows on the hedged transactions, we record the effective portion of changes in these cash flow hedges in accumulated other comprehensive income and subsequently reclassify into earnings in the same period during which the hedged transactions are recognized in earnings. Changes in the fair value of foreign exchange forward contracts due to changes in time value are included in 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. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Computer hardware and software are typically amortized over three to five years, and furniture and fixtures over three to eight years. Leasehold improvements are amortized over the shorter of their useful lives or the remaining terms of the related leases. Property and equipment under capital leases are amortized over the lesser of the lease terms or their estimated useful lives. Maintenance and repairs are charged to expense when incurred; additions and improvements are capitalized. When an item is sold or retired, the cost and related accumulated depreciation is relieved, and the resulting gain or loss, if any, is recognized in income. Software Development Costs We incur costs to develop computer software to be licensed or otherwise marketed to customers. Research and development costs are expensed as incurred, except for costs of internally developed or externally purchased software that qualify for capitalization. Development costs for software to be sold externally incurred subsequent to the establishment of technological feasibility, but prior to the general release of the product, are capitalized and, upon general release, are amortized using the greater of either the straight-line method over the expected life of the related products or based upon the pattern in which economic benefits related to such assets are realized. The straight-line method is used if it approximates the same amount of expense as that calculated using the ratio that current period gross product revenues bear to total anticipated gross product revenues. No development costs for software to be sold externally were capitalized in 2016 , 2015 or 2014 . In connection with acquisitions of businesses described in Note E, we capitalized software of $69.9 million and $13.6 million in 2016 and 2015 , respectively. These assets are included in acquired intangible assets in the accompanying Consolidated Balance Sheets. Goodwill, Acquired Intangible Assets and Long-lived Assets Goodwill is the amount by which the purchase price in a business acquisition exceeds the fair values of net identifiable assets on the date of purchase. Goodwill is evaluated for impairment annually, as of the end of the third quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Factors we consider important, on an overall company basis and reportable-segment basis, when applicable, that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, a significant decline in our stock price for a sustained period and a reduction of our market capitalization relative to net book value. We completed our annual goodwill impairment review as of July 2, 2016 and concluded that no impairment charge was required as of that date. To conduct these tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss equal to the difference between the carrying value of goodwill and its implied fair value. We estimate the fair values of our reporting units using discounted cash flow valuation models. Those models require estimates of future revenues, profits, capital expenditures, working capital, terminal values based on revenue multiples, and discount rates for each reporting unit. We estimate these amounts by evaluating historical trends, current budgets, operating plans and industry data. The estimated fair value of each reporting unit was at least approximately twice its carrying value as of July 2, 2016. Long-lived assets primar |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges for 2016 were $76.3 million , $76.9 million related to the plan announced in October 2015 described below, offset by a $0.6 million credit related to prior year restructuring actions. On October 23, 2015, we initiated a plan to restructure our workforce and consolidate select facilities in order to reduce our cost structure to enable us to invest in our identified growth opportunities. The restructuring is expected to result in a charge of up to $80.0 million . In 2016, we recorded restructuring charges of $74.9 million attributable to termination benefits associated with 810 employees. Additionally, we recorded charges of $1.3 million related to the closure of excess facilities. The majority of the remaining charges are associated with excess facilities and are expected to be recorded in the first and second quarters of 2017. On April 4, 2015, we committed to a plan to restructure our workforce and consolidate select facilities to realign our global workforce to increase investment in our Internet of Things business and to reduce our cost structure through organizational efficiencies in the face of significant foreign currency depreciation relative to the U.S. Dollar and a more cautious outlook on global macroeconomic conditions. In 2015, we recorded restructuring charges of $42.0 million attributable termination benefits associated with 411 employees. Additionally, we recorded charges of $1.4 million related to the closure of excess facilities. The facility charge reflects estimated costs including gross lease commitments of approximately $2.3 million , net of estimated sublease income of $0.9 million . As of September 30, 2015, this restructuring plan was substantially completed. In September 2014, in support of integrating businesses acquired and the continued evolution of our business model, we committed to a plan to restructure our workforce. As a result, we recorded a restructuring charge of $ 26.8 million associated with severance and related costs associated with 283 employees. Additionally, in 2014, we recorded restructuring charges of $1.6 million , primarily associated with the completion of the restructuring actions initiated in the fourth quarter of 2013. The following table summarizes restructuring charges reserve activity for the three years ended September 30, 2016 : Employee Severance and Related Benefits Facility Closures and Other Costs Consolidated Total (in thousands) Balance, October 1, 2013 $ 19,234 $ 295 $ 19,529 Charges to operations 27,918 488 28,406 Cash disbursements (20,334 ) (241 ) (20,575 ) Foreign currency impact (983 ) (7 ) (990 ) Balance, September 30, 2014 25,835 535 26,370 Charges to operations 41,997 1,412 43,409 Cash disbursements (52,882 ) (706 ) (53,588 ) Foreign currency impact (864 ) (73 ) (937 ) Balance, September 30, 2015 14,086 1,168 15,254 Charges to operations 74,929 1,344 76,273 Cash disbursements (53,966 ) (1,053 ) (55,019 ) Foreign currency impact 128 (28 ) 100 Balance, September 30, 2016 $ 35,177 $ 1,431 $ 36,608 The accrual for facility closures and related costs is included in accrued expenses and other current liabilities in the Consolidated Balance Sheets, and the accrual for employee severance and related benefits is included in accrued compensation and benefits in the Consolidated Balance Sheets. |
Acquisition
Acquisition | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions In 2016, we completed the acquisition of Kepware (on January 12, 2016 ) and Vuforia (on November 3, 2015 ), in 2015, we completed the acquisition of ColdLight (on May 7, 2015 ), and in 2014, we completed the acquisitions of Axeda (on August 11, 2014 ), Atego (on June 30, 2014 ) and ThingWorx (on December 30, 2013 ). The results of operations of these acquired businesses have been included in our consolidated financial statements beginning on their respective acquisition dates. Our results of operations prior to these acquisitions, if presented on a pro forma basis, would not differ materially from our reported results. These acquisitions have been accounted for as business combinations. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the respective acquisition date. The fair values of intangible assets for Kepware, ColdLight and the 2014 acquisitions were based on valuations using an income approach, with estimates and assumptions provided by management of the acquired companies and PTC. The fair values of intangible assets for Vuforia were based on valuations using a cost approach which requires the use of significant estimates and assumptions, including estimating costs to reproduce an asset. The process for estimating the fair values of identifiable intangible assets as well as the Kepware, ColdLight and ThingWorx contingent consideration liabilities requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. In accounting for these business combinations, we recorded net deferred tax liabilities of $21.6 million in 2014, primarily related to the tax effect of the acquired intangible assets other than goodwill that are not deductible for income tax purposes, partially offset by net operating loss carryforwards. As described in Note G, these net deferred tax liabilities reduced our net deferred tax asset balance and resulted in a tax benefit to decrease our valuation allowance in the U.S. and the U.K. Acquisition-related costs were $3.5 million , $8.9 million and $12.7 million in 2016 , 2015 and 2014 , respectively. Acquisition-related costs include direct costs of completing an acquisition (e.g., investment banker fees and professional fees, including legal and valuation services) and expenses related to acquisition integration activities (e.g., professional fees, severance, and retention bonuses). In addition, subsequent adjustments to our initial estimated amounts of Kepware, ColdLight and ThingWorx contingent consideration, primarily net present value changes, are included within acquisition-related charges. These costs have been classified in general and administrative expenses in the accompanying Consolidated Statements of Operations. 2016 Acquisitions Kepware On January 12, 2016, we acquired all of the ownership interest in Kepware, Inc., for $99.4 million in cash (net of cash acquired of $0.6 million ) and, $16.9 million representing the fair value of contingent consideration payable upon achievement of targets described below. We borrowed $100.0 million under our existing credit facility in January of 2016 to fund the acquisition. The acquisition of Kepware's KEPServerEX ® communication platform enhances our portfolio of Internet of Things (IoT) technology, and accelerates our entry into the factory setting and industrial IoT. At the time of the acquisition, Kepware had historical annualized revenues which were immaterial to our financial results. Kepware added approximately $16 million to our 2016 revenue and approximately $15 million in costs and expenses. The former shareholders of Kepware are eligible to receive additional consideration of up to $18.0 million , which is contingent on the achievement of certain Financial Performance, Product Integration and Business Integration targets (as defined in the Stock Purchase Agreement) within 24 months from April 1, 2016. If such targets are achieved within the defined 12 month, 18 month and 24 month earn-out periods, the consideration corresponding to each target will be earned and payable in cash. Up to $9.6 million of the total contingent consideration is eligible to become payable in 2017, and the remainder, if subsequently earned, will become payable in 2018. In connection with accounting for the business combination, we recorded a liability of $16.9 million representing the fair value of the contingent consideration. The liability was valued using a discounted cash flow method and a probability weighted estimate of achievement of the targets. The estimated undiscounted range of outcomes for the contingent consideration was $16.9 million to $18.0 million at the acquisition date. As of September 30, 2016, our estimate of the liability was increased to $17.1 million . We will continue to assess the probability that the unearned milestones will be met and at what level each reporting period. The subsequent changes in the estimated fair value of the liability are reflected in earnings until the liability is fully settled. The purchase price allocation resulted in $77.1 million of goodwill, which will be deductible for income tax purposes. Intangible assets of $34.5 million includes purchased software of $28.7 million , customer relationships of $5.2 million and trademarks of $0.6 million , which are being amortized over useful lives of 10 years , 10 years and 6 years , respectively, based upon the pattern in which economic benefits related to such assets are expected to be realized. The resulting amount of goodwill reflects our expectations of the following benefits: 1) Kepware’s protocol translators and connectivity platform strengthen the ThingWorx technology platform and accelerate our entry into the factory setting and Industrial IoT (IIoT); 2) cross-selling opportunities for our integrated technology platforms in the critical infrastructure markets to drive revenue growth; and 3) Kepware’s 20 years of manufacturing experience strengthens our manufacturing talent and domain expertise and provides support for our manufacturing strategy initiatives. Vuforia On November 3, 2015, pursuant to an Asset Purchase Agreement, we acquired the Vuforia business from Qualcomm Connected Experiences, Inc., a subsidiary of Qualcomm Incorporated, for $64.8 million in cash (net of cash acquired of $4.5 million ). We borrowed $50.0 million under our credit facility to finance this acquisition. The acquisition of Vuforia's augmented reality (AR) technology platform enhances our technology portfolio and accelerates our strategy as a leading provider of technologies and solutions that blend the digital and physical worlds. At the time of the acquisition, Vuforia had approximately 80 employees and historical annualized revenues which were immaterial to our financial results. The purchase price allocation resulted in $23.3 million of goodwill, $41.2 million of technology and $0.3 million of net tangible assets. The acquired technology is being amortized over a useful life of 6 years . The resulting amount of goodwill reflects the value of the synergies created by integrating Vuforia’s augmented technology platform into PTC’s IoT solutions. The total purchase price for our 2016 acquisitions was allocated to assets and liabilities acquired as follows: Purchase price allocation: Kepware Vuforia (in thousands) Goodwill $ 77,081 $ 23,316 Identifiable intangible assets 34,500 41,200 Cash 590 4,466 Other assets and liabilities, net 4,729 261 Total allocation of purchase price consideration 116,900 69,243 Less: cash acquired (590 ) (4,466 ) Total purchase price allocation, net of cash acquired 116,310 64,777 Less: contingent consideration (16,900 ) — Net cash used for acquisitions of businesses $ 99,410 $ 64,777 2015 Acquisition ColdLight On May 7, 2015 , we acquired all of the ownership interest of ColdLight Solutions, LLC, a company that offered solutions for data machine learning and predictive analytics, for approximately $98.6 million in cash (net of cash acquired of $1.3 million ). The total purchase price for ColdLight was allocated to assets and liabilities acquired as follows: Purchase price allocation: (in thousands) Goodwill $ 85,288 Identifiable intangible assets 17,620 Cash 1,313 Other assets and liabilities, net (516 ) Total allocation of purchase price consideration 103,705 Less: cash acquired (1,313 ) Total purchase price allocation, net of cash acquired 102,392 Less: contingent consideration (3,800 ) Net cash used to acquire ColdLight $ 98,592 The purchase price allocation resulted in $85.3 million of goodwill, which will be deductible for income tax purposes. Intangible assets of $17.6 million includes purchased software of $13.6 million , customer relationships of $3.5 million and trademarks of $0.5 million , which are being amortized over useful lives of 10 years, 9 years and 7 years, respectively, based upon the pattern in which economic benefits related to such assets are expected to be realized. The resulting amount of goodwill reflects our expectations of the following benefits: (1) ColdLight provides a differentiated machine learning platform for critical data analytics in our solution portfolio; (2) ColdLight’s Neuron ® product suite can automate the analytics process, reducing the dependency on manual processes; (3) ColdLight is addressing challenging aspects of data analytics aligned with the PTC / ThingWorx analytics vision; (4) ColdLight has a presence in industries outside of PTC's traditional markets which create a foundation for us to pursue opportunities in non-traditional vertical markets. The former shareholders of ColdLight are eligible to receive additional consideration (the earn-out) of up to $5.0 million , which is contingent upon achievement of certain technology milestones within two years of the acquisition. If an earn-out milestone is achieved, a portion of the contingent consideration becomes earned and payable in cash after each six-month period. In connection with accounting for the business combination, we recorded a liability of $3.8 million , representing the fair value of the contingent consideration. The liability was valued using a discounted cash flow method and a probability weighted estimate of achievement of the technology milestones. The estimated undiscounted range of outcomes for the contingent consideration was $3.8 million to $5.0 million at the acquisition date. As of September 30, 2016, our estimate of the liability was $2.5 million , net of $2.5 million in payments made in 2016. $1.9 million of the total payments represents the fair value of the liability recorded at acquisition date and is included in financing activities in the Consolidated Statements of Cash Flows. The remaining $0.6 million of the total payments represents changes in the estimated liability recorded at acquisition date and is included in operating activities in the Consolidated Statements of Cash Flow. 2014 Acquisitions Axeda and Atego In the fourth quarter of 2014, we acquired all of the outstanding shares of capital stock of Axeda (a privately-held U.S.-based company) and Atego Group Limited (a privately-held company with operations in the U.K., the U.S. and France) for a total of $212.0 million , net of $13.1 million of cash acquired. The acquisitions resulted in goodwill of $157.7 million , intangible assets of $86.9 million and deferred tax liabilities related to the intangible assets of $12.6 million . ThingWorx In the second quarter of 2014, we acquired ThingWorx, Inc. for $111.5 million (net of cash acquired of $0.1 million ). The former shareholders of ThingWorx were eligible to receive additional consideration (the earn-out) of up to $18.0 million if certain profitability and bookings targets were achieved within two years of the acquisition from December 30, 2013 to January 1, 2016 . In connection with accounting for the business combination, we recorded a liability representing the fair value of the contingent consideration. The liability was valued using a discounted cash flow method and a probability weighted estimate of achievement the financial targets. The ThingWorx contingent earn-out first year payment criteria were attained in fiscal 2015. As such, $9.0 million of the total contingent consideration was paid in July 2015 . Of this payment, $4.3 million represents the fair value of the first installment payment recorded at the acquisition date and is included in financing activities in the Consolidated Statements of Cash Flows. The remaining $4.7 million of this payment represents changes in the estimated liability recorded since the acquisition date and was included in operating activities in the Consolidated Statements of Cash Flows. The contingent earn-out second year payment criteria were attained in fiscal 2016. We paid the remaining $9.0 million of the total contingent consideration in April 2016. Of this payment, $8.7 million represents the fair value of the second installment payment liability recorded at the acquisition date and is included in financing activities in the Consolidated Statements of Cash Flows. The remaining $0.3 million of this payment represents changes in the estimated liability recorded since the acquisition date and is included in operating activities in the Consolidated Statements of Cash Flows. |
Property And Equipment
Property And Equipment | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | Property and Equipment Property and equipment consisted of the following: September 30, 2016 2015 (in thousands) Computer hardware and software $ 267,928 $ 246,756 Furniture and fixtures 20,742 18,370 Leasehold improvements 43,769 38,005 Gross property and equipment 332,439 303,131 Accumulated depreciation and amortization (265,326 ) (237,969 ) Net property and equipment $ 67,113 $ 65,162 Depreciation expense was $28.8 million , $28.9 million and $27.1 million in 2016 , 2015 and 2014 , respectively. |
Goodwill And Acquired Intangibl
Goodwill And Acquired Intangible Assets | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Acquired Intangible Assets At the start of 2016, we had two operating and reportable segments: (1) Software Products and (2) Services. In the third quarter of 2016, we changed our operating and reportable segments from two to three : (1) Solutions Group, (2) IoT Group and (3) 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, 2016 , goodwill and acquired intangible assets in the aggregate attributable to our Solutions Group, IoT Group and Professional Services segment was $1,196.6 million , $252.8 million and $30.7 million , respectively. As of September 30, 2015 , goodwill and acquired intangible assets in the aggregate attributable to our software products segment and services segment was $1,297.9 million and $62.4 million , respectively. Goodwill is tested for impairment at least annually, or on an interim basis if an event occurs or circumstances change that would, more likely than not, reduce the fair value of the reporting segment below its carrying value. We completed our annual goodwill impairment review as of July 2, 2016 and concluded that no impairment charge was required as of that date. To conduct these tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss equal to the difference between the carrying value of goodwill and its implied fair value. We estimate the fair values of our reporting units using discounted cash flow valuation models. Those models require estimates of future revenues, profits, capital expenditures, working capital, terminal values based on revenue multiples, and discount rates for each reporting unit. We estimate these amounts by evaluating historical trends, current budgets, operating plans and industry data. The estimated fair value of each reporting unit was approximately at least double its carrying value as of July 2, 2016 . Through September 30, 2016 , there have not been any events or changes in circumstances that indicate that the carrying values of goodwill or acquired intangible assets may not be recoverable. Goodwill and acquired intangible assets consisted of the following: September 30, 2016 September 30, 2015 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Goodwill (not amortized) $ 1,169,813 $ 1,069,041 Intangible assets with finite lives (amortized) (1): Purchased software $ 354,595 $ 199,192 $ 155,403 $ 284,257 $ 174,887 $ 109,370 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 355,698 206,515 149,183 349,938 174,017 175,921 Trademarks and trade names 19,007 13,323 5,684 18,534 12,759 5,775 Other 3,955 3,920 35 3,946 3,711 235 $ 756,132 $ 445,827 $ 310,305 $ 679,552 $ 388,251 $ 291,301 Total goodwill and acquired intangible assets $ 1,480,118 $ 1,360,342 (1) The weighted average useful lives of purchased software, capitalized software, customer lists and relationships, trademarks and trade names and other intangible assets with a remaining net book value are 9 years, 10 years, 10 years and 3 years, respectively. The changes in the carrying amounts of goodwill from October 1, 2015 to September 30, 2016 are due to the impact of acquisitions (described in Note E) and to foreign currency translation adjustments related to those asset balances that are recorded in non-U.S. currencies. Changes in goodwill presented by reportable segment were as follows: Software Products Segment Services Segment Total (in thousands) Balance, October 1, 2014 $ 959,768 $ 52,759 $ 1,012,527 Axeda adjustment of purchase price from escrow (180 ) — (180 ) Acquisition of ColdLight 85,288 — 85,288 Foreign currency translation adjustments (28,463 ) (131 ) (28,594 ) Balance, September 30, 2015 $ 1,016,413 $ 52,628 $ 1,069,041 Acquisition of Vuforia 23,316 — 23,316 Acquisition of Kepware 77,081 — 77,081 Foreign currency translation adjustments 228 (6 ) 222 Balance, July 2, 2016 prior to reallocation $ 1,117,038 $ 52,622 $ 1,169,660 Solutions Group IoT Group Professional Services Total (in thousands) Balance, July 2, 2016 after reallocation $ 1,050,013 $ 90,053 $ 29,594 $ 1,169,660 Foreign currency translation adjustments 137 12 4 153 Balance, September 30, 2016 $ 1,050,150 $ 90,065 $ 29,598 $ 1,169,813 The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2016 , 2015 and 2014 was reflected in our Consolidated Statements of Operations as follows: Year ended September 30, 2016 2015 2014 (in thousands) Amortization of acquired intangible assets $ 33,198 $ 36,129 $ 32,127 Cost of software revenue 24,604 19,402 18,112 Total amortization expense $ 57,802 $ 55,531 $ 50,239 The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2016 is $58.0 million for 2017 , $57.0 million for 2018 , $49.9 million for 2019 , $47.2 million for 2020 , $41.8 million for 2021 , and $56.5 million thereafter . |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income (loss) before income taxes consisted of the following: Year ended September 30, 2016 2015 2014 (in thousands) Domestic $ (156,166 ) $ (110,867 ) $ 17,038 Foreign 88,974 137,392 169,074 Total income before income taxes $ (67,192 ) $ 26,525 $ 186,112 Our (benefit) provision for income taxes consisted of the following: Year ended September 30, 2016 2015 2014 (in thousands) Current: Federal $ 2,417 $ 3,907 $ 12,792 State 571 599 2,062 Foreign 28,467 23,823 31,010 31,455 28,329 45,864 Deferred: Federal 965 (20,809 ) (13,200 ) State 515 (566 ) (2,085 ) Foreign (45,662 ) (27,986 ) (4,661 ) (44,182 ) (49,361 ) (19,946 ) Total provision (benefit) for income taxes $ (12,727 ) $ (21,032 ) $ 25,918 The reconciliation between the statutory federal income tax rate and our effective income tax rate is shown below: Year ended September 30, 2016 2015 2014 Statutory federal income tax rate (35 )% 35 % 35 % Change in valuation allowance 57 % 63 % (11 )% State income taxes, net of federal tax benefit — % 7 % 1 % Federal and state research and development credits (9 )% (8 )% — % Resolution of uncertain tax positions — % (11 )% — % Foreign rate differences (41 )% (213 )% (19 )% Foreign withholding tax 3 % 14 % 3 % U.S. permanent items 4 % 34 % 4 % Other, net 2 % — % 1 % Effective income tax rate (19 )% (79 )% 14 % In 2016 and 2015, our effective tax rate was lower than the 35% statutory federal income tax rate due, in large part, to our corporate structure in which our foreign taxes are at an effective tax rate lower than the U.S. A significant amount of our foreign earnings is generated by our subsidiaries organized in Ireland and in 2016, 2015 and 2014, the foreign rate differential predominantly relates to these Irish earnings. Our foreign rate differential in 2016 and 2015 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 2016 and 2015, this realignment resulted in a tax benefit of approximately $28 million and $24 million , respectively. In 2016 the change in valuation allowance primarily relates to U.S. losses not benefitted and the release of valuation allowance totaling $3.1 million in two foreign subsidiaries. Additionally, our provision reflects a $6.0 million tax benefit related to a U.S. research and development tax credit which was offset by a corresponding provision to increase our U.S. valuation allowance. Additionally, in 2015, U.S. permanent items include the tax effect of a $14.5 million expense related to a pending legal settlement. Other factors impacting the effective tax rate include: the release of a valuation allowance totaling $18.7 million relating to the U.S. pension plan termination, foreign withholding taxes of $3.8 million , a tax benefit of $3.1 million relating to the reassessment of our reserve requirements and a benefit of $1.4 million in conjunction with the reorganization of our Atego U.S. subsidiaries. Additionally, our provision reflects a $2.1 million tax benefit related to a retroactive extension of the U.S. research and development tax credit enacted in the first quarter of 2015. This benefit was offset by a corresponding provision to increase our U.S. valuation allowance. In 2014, our effective tax rate was lower than the 35% statutory federal income tax rate due, in large part, to the reversal of a portion of the valuation allowance against U.S. deferred tax assets. We recorded benefits resulting from 2014 acquisitions as described below. Other factors impacting the effective tax rate include: our corporate structure in which our foreign taxes are at an effective tax rate lower than the U.S. rate, foreign withholding taxes of $5.1 million and the establishment of a valuation allowance totaling $3.5 million in two foreign subsidiaries. Acquisitions in 2014 were accounted for as business combinations. Assets acquired, including the fair value of acquired tangible assets, intangible assets and assumed liabilities were recorded, and we recorded net deferred tax liabilities of $21.6 million in 2014, primarily related to the tax effect of the acquired intangible assets that are not deductible for income tax purposes. These deferred tax liabilities reduced our net deferred tax asset balance and resulted in a tax benefit of $18.1 million in 2014, to decrease our valuation allowance in jurisdictions where we have recorded a valuation allowance (primarily the U.S.). As these decreases in the valuation allowance are not part of the accounting for business combinations (the fair value of the assets acquired and liabilities assumed), they were recorded as an income tax benefit. At September 30, 2016 and 2015 , income taxes payable and income tax accruals recorded in accrued income taxes, other current liabilities, and other liabilities on the accompanying Consolidated Balance Sheets were $18.7 million ( $6.3 million in accrued income taxes, $5.5 million in other current liabilities and $6.9 million in other liabilities) and $14.7 million ( $4.0 million in accrued income taxes, $2.2 million in other current liabilities and $8.5 million in other liabilities), respectively. At September 30, 2016 and 2015 , prepaid taxes recorded in prepaid expenses on the accompanying Consolidated Balance Sheets were $9.9 million and $8.2 million , respectively. We made net income tax payments of $25.5 million , $30.1 million and $25.5 million in 2016 , 2015 and 2014 , respectively. The significant temporary differences that created deferred tax assets and liabilities are shown below: September 30, 2016 2015 (in thousands) Deferred tax assets (1): Net operating loss carryforwards $ 100,033 $ 71,533 Foreign tax credits 18,041 15,962 Capitalized research and development expense 22,504 31,690 Pension benefits 14,348 11,009 Deferred revenue 65,145 71,399 Stock-based compensation 19,846 16,777 Other reserves not currently deductible 25,993 21,940 Amortization of intangible assets 54,069 62,227 Other tax credits 41,381 37,270 Depreciation 3,002 3,465 Capital loss carryforward 8,019 8,040 Deferred interest 7,622 3,557 Other 14,778 6,559 Gross deferred tax assets 394,781 361,428 Valuation allowance (235,503 ) (198,168 ) Total deferred tax assets 159,278 163,260 Deferred tax liabilities (1): Acquired intangible assets not deductible (78,663 ) (124,401 ) Pension prepayments (542 ) (395 ) Deferred revenue (2,039 ) (3,110 ) Other (2,092 ) (3,598 ) Total deferred tax liabilities (83,336 ) (131,504 ) Net deferred tax assets $ 75,942 $ 31,756 (1) See Note B. Recent Accounting Pronouncements-Deferred Taxes regarding a change in the balance sheet classification of our deferred taxes. We have concluded, based on the weight of available evidence, that a full valuation allowance continues to be required against our U.S. net deferred tax assets as they are not more likely than not to be realized in the future. We will continue to reassess whether a valuation allowance is required each financial reporting period. For U.S. tax return purposes, net operating loss (NOL) carryforwards and tax credits are generally available to be carried forward to future years, subject to certain limitations. At September 30, 2016, we had U.S. federal NOL carryforwards of $247.1 million that expire in 2018 to 2036 . These include NOL carryforwards from acquisitions of $82.2 million . The utilization of these NOL carryforwards is limited as a result of the change in ownership rules under Internal Revenue Code Section 382. NOL's totaling $45.1 million relate to windfall tax benefits that have not been recognized, the impact of which will be recorded in APIC when realized. As of September 30, 2016, we had Federal R&D credit carryforwards of $25.2 million , which expire beginning in 2021 and ending in 2036 , and Massachusetts R&D credit carryforwards of $24.8 million , which expire beginning in 2017 and ending in 2031 . We also had foreign tax credits of $18.0 million , which expire beginning in 2023 and ending in 2026 . A full valuation allowance is recorded against these carryforwards. Federal R&D credits totaling $14.0 million relate to windfall tax benefits that have not been recognized, the impact of which will be recorded in APIC when realized. We also have NOL carryforwards in non-U.S. jurisdictions totaling $102.4 million , the majority of which do not expire. We also have non-U.S. tax credit carryforwards of $7.5 million that expire beginning in 2027 and ending in 2035. There are limitations imposed on the utilization of such NOLs that could restrict the recognition of any tax benefits. As of September 30, 2016, we have a valuation allowance of $209.0 million against net deferred tax assets in the U.S. and a valuation allowance of $26.5 million against net deferred tax assets in certain foreign jurisdictions. The valuation allowance recorded against net deferred tax assets of certain foreign jurisdictions is established primarily for our net operating loss carryforwards, the majority of which do not expire. There are limitations imposed on the utilization of such net operating losses that could restrict the recognition of any tax benefits. The changes to the valuation allowance were primarily due to: Year ended September 30, 2016 2015 2014 (in millions) Valuation allowance beginning of year $ 198.2 $ 177.5 $ 156.5 Net release of valuation allowance (1) (3.1 ) (18.7 ) (18.1 ) Net increase/decrease in deferred tax assets with a full valuation allowance 39.8 39.4 14.1 Establish valuation allowance for acquired businesses — — 21.5 Establish valuation allowance in foreign jurisdictions 0.6 — 3.5 Valuation allowance end of year $ 235.5 $ 198.2 $ 177.5 (1) In 2016, this is attributable to the release in two foreign jurisdictions. In 2015, this is attributable to a reduction in deferred tax assets associated with our U.S. pension plan, both of which are described above and in 2014 the recognition of deferred tax liabilities recorded in connection with accounting for acquisitions. 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 2016, 2015 and 2014, we recorded interest expense of $0.5 million , $0.1 million and $0.3 million , respectively. In 2016, 2015 and 2014, we had no tax penalty expense in our income tax provision. As of September 30, 2016 and 2015 , we had accrued $2.0 million and $1.5 million , respectively, of net estimated interest expense related to income tax accruals. We had no accrued tax penalties as of September 30, 2016, 2015 or 2014. Year ended September 30, Unrecognized tax benefits 2016 2015 2014 (in millions) Unrecognized tax benefit beginning of year $ 14.1 $ 15.0 $ 13.7 Tax positions related to current year: Additions 1.0 1.3 2.2 Tax positions related to prior years: Additions 0.4 0.8 0.3 Reductions — (3.0 ) (0.1 ) Settlements — — (0.6 ) Statute expirations — — (0.5 ) Unrecognized tax benefit end of year $ 15.5 $ 14.1 $ 15.0 If all of our unrecognized tax benefits as of September 30, 2016 were to become recognizable in the future, we would record a benefit to the income tax provision of $13.9 million (which would be partially offset by an increase in the U.S. valuation allowance of $4.8 million ) and a credit to additional paid-in capital (APIC) of $1.6 million . Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in favorable or unfavorable changes in our estimates. We anticipate the settlement of tax audits may be finalized within the next twelve months and could result in a decrease in our unrecognized tax benefits of up to $8.0 million . In the fourth quarter of 2016, we received an assessment from the tax authorities in Korea related to an ongoing tax audit of approximately $12 million . The assessment relates to various tax issues but primarily to foreign withholding taxes. We intend to appeal and will vigorously defend our positions. We believe that it is more likely than not that our positions will be sustained upon appeal. Accordingly, we have not recorded a tax reserve for this matter. We paid this assessment in the first quarter of 2017. In the normal course of business, PTC and its subsidiaries are examined by various taxing authorities, including the IRS in the United States. As of September 30, 2016 , we remained subject to examination in the following major tax jurisdictions for the tax years indicated: Major Tax Jurisdiction Open Years United States 2014 through 2016 Germany 2011 through 2016 France 2013 through 2016 Japan 2011 through 2016 Ireland 2012 through 2016 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 2016 , 2015 and 2014 of $66.0 million , $50.2 million and $50.9 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 $0.7 million , $0.7 million and $0.7 million in 2016 , 2015 and 2014 , respectively. Upon the settlement of the stock-based awards (i.e., exercise, vesting, forfeiture or cancellation), the actual tax deduction is compared with the cumulative financial reporting compensation cost and any excess tax deduction is considered a windfall tax benefit and is tracked in a “windfall tax benefit pool” to offset any future tax deduction shortfalls and will be recorded as increases to APIC in the period when the tax deduction reduces income taxes payable. In 2016 , 2015 and 2014, we recorded windfall tax benefits of $0.1 million , $0.0 million and $10.4 million to APIC, respectively. We follow the with-and-without approach for the direct effects of windfall tax deductions to determine the timing of the recognition of benefits for windfall tax deductions. We follow the direct method for indirect effects. As of September 30, 2016 , the tax effect of windfall tax deductions which had not yet reduced taxes payable was $33.4 million . We have not provided for U.S. income taxes or foreign withholding taxes on foreign unrepatriated earnings as it is our current intention to permanently reinvest these earnings outside the U.S. unless it can be done with no significant tax cost, with the exception of a foreign holding company formed in 2014. In 2016, we incurred U.S. tax expense of $12 million on the repatriation of the 2016 earnings of this foreign holding company. This expense was offset by a change in the valuation allowance. If we decide to change this assertion in the future to repatriate any additional non-U.S. earnings, we may be required to establish a deferred tax liability on such earnings. The cumulative basis difference associated with the undistributed earnings of our subsidiaries totaled approximately $789 million and $684 million as of September 30, 2016 and 2015 , respectively. The amount of unrecognized deferred tax liability on the undistributed earnings cannot be practicably determined at this time. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of September 30, 2016 and 2015 , we had the following long-term borrowing obligations: September 30, 2016 2015 (in thousands) 6.000% Senior notes due 2024 $ 500,000 $ — Credit facility-revolver 258,125 193,125 Credit facility-term loan — 475,000 Total debt 758,125 668,125 Unamortized debt issuance costs (10,709 ) (7,587 ) Total debt, net of issuance costs $ 747,416 $ 660,538 Reported as Current portion of long-term debt $ — $ 50,000 Long-term debt 758,125 618,125 Total debt $ 758,125 $ 668,125 Senior Unsecured Notes In May 2016, we issued $500 million in aggregate principal amount of 6.0% senior, unsecured long-term debt at par value, due in 2024. We used the net proceeds from the sale of the notes to repay a portion of our outstanding revolving loan under our current credit facility. Interest is payable semi-annually on November 15 and May 15. The debt indenture 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 were in compliance with all of the covenants as of September 30, 2016. On and after May 15, 2019, we may redeem the senior notes at any time in whole or from time to time in part at specified redemption prices. In certain circumstances constituting a change of control, we will be required to make an offer to repurchase the senior 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 senior notes in such event may be limited by law, by the indenture associated with the senior 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 senior notes as required by the indenture, it would constitute an event of default under the indenture governing the senior notes which, in turn, may also constitute an event of default under other obligations. As of September 30, 2016 , the total estimated fair value of the Notes was approximately $536.3 million , which is based on quoted prices for the notes on that date. Credit Agreement In November 2015, we entered into a multi-currency credit facility with a syndicate of sixteen banks for which JPMorgan Chase Bank, N.A. acts as Administrative Agent. We use the credit facility for general corporate purposes, including acquisitions of businesses, share repurchases and working capital requirements. As of September 30, 2016 , the fair value of our credit facility approximates its book value. The credit facility initially consisted of a $1 billion revolving loan commitment, which was reduced to $900 million in June 2016 pursuant to an amendment to the Credit Agreement. The loan commitment may be increased by an additional $500 million (in the form of revolving loans or term loans, or a combination thereof) if the existing or additional lenders are willing to make such increased commitments. 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. The credit facility matures on September 15, 2019, when all remaining amounts outstanding will be due and payable in full. PTC and certain eligible foreign subsidiaries are eligible borrowers under 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 amounts under the credit facility have been borrowed by an eligible foreign subsidiary borrower. In addition, PTC and certain of its material domestic subsidiaries' owned property (including equity interests) is subject to first priority perfected liens in favor of the lenders of this credit facility. 100% of the voting equity interests of certain of PTC’s domestic subsidiaries and 65% of its material first-tier foreign subsidiaries are pledged as collateral for the obligations under the credit facility. 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, 2016 , the annual rate for borrowing outstanding was 2.56% . Interest rates on borrowings outstanding under the credit facility range from 1.25% to 1.75% above an adjusted LIBO rate for Euro currency borrowings or would range from 0.25% to 0.75% above the defined base rate (the greater of the Prime Rate, the FRBYN rate plus 0.5% , or an adjusted LIBO rate plus 1% ) for base rate borrowings, in each case based upon PTC’s total leverage ratio. Additionally, PTC may borrow certain foreign currencies at rates set in the same range above the respective London interbank offered interest rates for those currencies, based on PTC’s 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 limited PTC’s and its subsidiaries’ ability to, among other things: incur liens or guarantee obligations; pay dividends (other than to PTC) and make other distributions; make investments and enter into joint ventures; dispose of assets; and engage in transactions with affiliates, except on an arms-length basis. Under the credit facility, PTC and its material domestic subsidiaries may not invest cash or property in, or loan to, PTC’s foreign subsidiaries in aggregate amounts exceeding $75 million for any purpose and an additional $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 4.00 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 • a fixed charge coverage ratio, defined as the ratio of consolidated trailing four quarters EBITDA less consolidated capital expenditures to consolidated fixed charges, of not less than 3.50 to 1.00 as of the last day of any fiscal quarter. As of September 30, 2016 , our total leverage ratio was 3.55 to 1.00 , our senior secured leverage ratio was 1.18 to 1.00 and our fixed charge coverage ratio was 7.14 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 $6.9 million in financing costs in connection with the Senior Notes in 2016. We incurred $7.9 million of origination costs in 2014 in connection with entering into prior credit facilities. These origination costs were recorded as deferred debt issuance costs when incurred and were being expensed over the remaining term of the obligations. In 2016 , 2015 and 2014 , we paid $13.3 million , $10.1 million and $5.7 million , respectively, of interest on the credit facilities. The average interest rate on borrowings outstanding during 2016 , 2015 and 2014 was approximately 3.0% , 1.7% and 1.6% , respectively. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Leasing Arrangements We lease office facilities under operating leases expiring at various dates through 2025 . Certain leases require us to pay for taxes, insurance, maintenance and other operating expenses in addition to rent. Lease expense was $37.2 million , $36.9 million and $38.6 million in 2016 , 2015 and 2014 , respectively. At September 30, 2016 , our future minimum lease payments under noncancellable operating leases are as follows: Year ending September 30, (in thousands) 2017 $ 39,994 2018 34,347 2019 27,150 2020 22,804 2021 14,943 Thereafter 16,776 Total minimum lease payments $ 156,014 Amounts above include future minimum lease payments for our corporate headquarters facility located in Needham, Massachusetts. The lease for our headquarters facility was renewed in the first quarter of 2011 for an additional 10 years (through November 2022) with a ten year renewal option through November 2032. Under the terms of the lease, we are paying approximately $7.4 million in annual base rent plus operating expenses. The amended lease provides for $12.8 million in landlord funding for leasehold improvements which we completed in 2014. We capitalized these leasehold improvements and will amortize them to expense over the shorter of the lease term or their expected useful life. The $12.8 million of funding by the landlord is not included in the table above and reduces rent expense over the lease term. As of September 30, 2016 and 2015 , we had letters of credit and bank guarantees outstanding of $4.2 million (of which $1.2 million was collateralized) and $4 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 . See Note G. Income Taxes for additional information. Follow-On China Investigation The China Administration for Industry and Commerce initiated a follow-on investigation at our China subsidiary related to the China Investigation described below under Legal Proceedings. In October 2016, this matter was resolved for an amount that is not material to our results of operations; the associated liability is recorded in our 2016 financial results. Legal Proceedings On March 7, 2016, a putative class action lawsuit captioned Matthew Crandall v. PTC Inc. et al ., No. 1:16-cv-10471, was filed against us and certain of our current and former officers and directors in the U.S. District Court for the District of Massachusetts ostensibly on behalf of purchasers of our stock during the period November 24, 2011 through July 29, 2015. The lawsuit, which seeks unspecified damages, interest, attorneys’ fees and costs, alleges (among other things) that, during that period, PTC’s public disclosures concerning investigations by the U.S. Securities and Exchange Commission and the U.S. Department of Justice into U.S. Foreign Corrupt Practices Act matters in China (the "China Investigation") were false and/or misleading. We have reached an agreement-in-principle with the plaintiff to settle this lawsuit for an amount that is not material to our results of operations and the associated liability has been accrued in our fiscal 2016 results. The settlement is conditioned on execution and final court approval of formal settlement documents. Accordingly, we cannot predict the outcome of this action nor when it will be resolved. We are subject to various other 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, 2016 and 2015, we had a legal proceedings and claims accrual of $3.6 million and $30.5 million (including and accrual of $28.2 million for the China Investigation), respectively. Guarantees and Indemnification Obligations We enter into standard indemnification agreements in the ordinary course of our business. Pursuant to such agreements with our business partners or customers, we indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to our products, as well as claims relating to property damage or personal injury resulting from the performance of services by us or our subcontractors. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited. Historically, our costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and we accordingly believe the estimated fair value of liabilities under these agreements is immaterial. We warrant that our software products will perform in all material respects in accordance with our standard published specifications in effect at the time of delivery of the licensed products for a specified period of time. Additionally, we generally warrant that our consulting services will be performed consistent with generally accepted industry standards. In most cases, liability for these warranties is capped. If necessary, we would provide for the estimated cost of product and service warranties based on specific warranty claims and claim history; however, we have not incurred significant cost under our product or services warranties. As a result, we believe the estimated fair value of these liabilities is immaterial. |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan Our 2000 Equity Incentive Plan (2000 Plan) provides for grants of nonqualified and incentive stock options, common stock, restricted stock, restricted stock units and stock appreciation rights to employees, directors, officers and consultants. We award restricted stock units as the principal equity incentive awards, including certain performance-based awards that are earned based on achieving performance criteria established by the Compensation Committee of our Board of Directors on or prior to the grant date. Each restricted stock unit represents the contingent right to receive one share of our common stock. The fair value of restricted stock units granted in 2016 , 2015 and 2014 was based on the fair market value of our stock on the date of grant. The weighted average fair value per share of restricted stock units granted in 2016 , 2015 and 2014 was $37.25 , $38.19 and $33.88 , respectively. Pre-vesting forfeiture rates for purposes of determining stock-based compensation for 2016 were estimated by us to be 0% for directors and executive officers, 6% to 8% for vice president-level employees and 11% for all other employees. Pre-vesting forfeiture rates for purposes of determining stock-based compensation for 2015 and 2014 were estimated by us to be 0% for directors and executive officers, 2% to 4% for vice president-level employees and 7% for all other employees. The following table shows total stock-based compensation expense recorded from our stock-based awards as reflected in our Consolidated Statements of Operations: Year ended September 30, 2016 2015 2014 (in thousands) Cost of software revenue $ 5,398 $ 4,296 $ 4,059 Cost of professional services revenue 5,393 5,871 6,351 Sales and marketing 14,659 14,189 13,441 Research and development 10,174 11,623 10,119 General and administrative 30,372 14,203 16,919 Total stock-based compensation expense $ 65,996 $ 50,182 $ 50,889 The stock-based compensation expense in 2016 included $10 million of expense related to modifications of certain performance-based RSUs previously granted under our long-term incentive programs. The Compensation Committee of our Board of Directors amended these equity awards due to the impact of changes in our business model and strategy and foreign currency on our financial results. As of September 30, 2016 , total unrecognized compensation cost related to unvested restricted stock units expected to vest was approximately $81.9 million and the weighted average remaining recognition period for unvested awards was 17 months. As of September 30, 2016 , 5.1 million shares of common stock were available for grant under the 2000 Plan and 3.8 million shares of common stock were reserved for issuance upon the exercise of stock options and vesting of restricted stock units granted and outstanding. Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value as of September 30, 2016 Restricted stock unit activity for the year ended September 30, 2016 (in thousands except grant date fair value data) Balance of nonvested outstanding restricted stock units October 1, 2015 3,654 $ 33.64 Granted 2,484 $ 37.25 Vested (1,818 ) $ 30.10 Forfeited or not earned (544 ) $ 36.49 Balance of nonvested outstanding restricted stock units September 30, 2016 3,776 $ 37.30 $ 167,314 Restricted Stock Units Restricted stock unit grants TSR Units (1) Performance-based RSUs (2) Service-based RSUs (2) (Number of Units in thousands) Year ended September 30, 2016 326 343 1,815 (1) The TSR units were granted to our executive officers pursuant to the terms described below. (2) The service-based RSUs were issued to employees, our executive officers, our directors and a consultant. Executive officers may earn up to one or, for our CEO, two times the number of time-based RSUs (up to a maximum of 343 thousand shares) if certain performance conditions are met. Of the service-based RSUs, approximately 64 thousand shares will vest in one installment on or about the anniversary of the date of grant. Approximately 121 thousand shares will vest in two substantially equal annual installments on or about the anniversary of the date of grant. All other service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. The performance-based RSUs will vest in three substantially equal installments on the later of November 15, 2016, November 15, 2017 and November 15, 2018, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved. In the first quarter of 2016, we granted the target performance-based TSR units ("target RSUs") shown in the table above to our executive officers. These RSUs are eligible to vest based upon our total shareholder return relative to a peer group (the “TSR units”), measured annually over a three year period. The number of TSR units to vest over the three 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, 2016, 2017 and 2018, respectively. The shares earned for each period will vest on November 15 following each measurement period, up to a maximum of two times the number of target RSUs (up to a maximum of 652 thousand shares). No vesting will occur in a period unless an annual threshold requirement is achieved. The employee must remain employed by PTC through the applicable vest date for any RSUs to vest. If the return to PTC shareholders is negative but still meets or exceeds the peer group indexed return, a maximum of 100% of the target RSUs will vest for the measurement period. TSR units 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 units was $46.96 per target RSU on the grant date. The fair value of the TSR units was determined using a Monte Carlo simulation model, a generally accepted statistical technique used to simulate a range of possible future stock prices for PTC and the peer group. The method uses a risk-neutral framework to model future stock price movements based upon the risk-free rate of return, the volatility of each entity, and the pairwise correlations of each entity being modeled. The fair value for each simulation is the product of the payout percentage determined by PTC’s TSR rank against the peer group, the projected price of PTC stock, and a discount factor based on the risk-free rate. The significant assumptions used in the Monte Carlo simulation model were as follows: Average volatility of peer group 28.1 % Risk free interest rate 1.05 % Dividend yield — % Until July 2005, we generally granted stock options. For those options, the option exercise price was typically the fair market value at the date of grant, and they generally vested over four years and expired ten years from the date of grant. There were no options outstanding and exercisable at September 30, 2016. Year ended September 30, 2016 2015 2014 Value of stock option and stock-based award activity (in thousands) Total intrinsic value of stock options exercised $ 88 $ 182 $ 2,040 Total fair value of restricted stock unit awards vested $ 63,655 $ 84,189 $ 79,660 In 2016 , shares issued upon vesting of restricted stock units were net of 0.6 million shares retained by us to cover employee tax withholdings of $20.9 million . In 2015 , shares issued upon vesting of restricted stock units were net of 0.8 million shares retained by us to cover employee tax withholdings of $29.2 million . In 2014 , shares issued upon vesting of restricted stock and restricted stock units were net of 0.8 million shares retained by us to cover employee tax withholdings of $26.9 million . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock We may issue up to 5.0 million shares of our preferred stock in one or more series. 0.5 million of these shares are designated as Series A Junior Participating Preferred Stock. Our Board of Directors is authorized to fix the rights and terms for any series of preferred stock without additional shareholder approval. Common Stock Our Articles of Organization authorize us to issue up to 500 million shares of our common stock. Our Board of Directors has periodically authorized the repurchase of shares of our common stock. We were authorized to repurchase up to $100 million worth of shares with cash from operations in fiscal year 2014. Additionally, on August 4, 2014, our Board of Directors authorized us to repurchase up to an additional $600 million of our common stock through September 30, 2017. We intend to use cash from operations and borrowings under our credit facility to make such repurchases. In 2016, we did not repurchase any shares. We repurchased 2.7 million shares at a cost of $64.9 million in 2015 and 5.1 million shares at a cost of $224.9 million in 2014 (including $37.5 million held by the bank pending final settlement of the accelerated share repurchase ("ASR") agreement described below). All shares of our common stock repurchased are automatically restored to the status of authorized and unissued. Future repurchases of shares will reduce our cash balances. On August 14, 2014, we entered into an accelerated share repurchase (“ASR”) agreement with a major financial institution (“Bank”). The ASR allowed us to buy a large number of shares immediately at a purchase price determined by an average market price over a period of time. Under the ASR, we agreed to purchase $125.0 million of our common stock, in total, with an initial delivery to us in August 2014 of 2.3 million shares. We settled the ASR in December 2014 and the Bank delivered to us 1.1 million additional shares. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2016 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan We offer a savings plan to eligible U.S. employees. The plan is intended to qualify under Section 401(k) of the Internal Revenue Code. Participating employees may defer a portion of their pre-tax compensation, as defined, but not more than statutory limits. We contribute 50% of the amount contributed by the employee, up to a maximum of 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 $5.4 million , $5.3 million , and $5.1 million in 2016 , 2015 and 2014 , respectively. |
Pension Plans
Pension Plans | 12 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension Plans | Pension Plans We maintain several international defined benefit pension plans primarily covering certain employees of Computervision, which we acquired in 1998, CoCreate, which we acquired in 2008 and covering employees in Japan. Benefits are based upon length of service and average compensation with vesting after one to five years of service. The pension cost was actuarially computed using assumptions applicable to each subsidiary plan and economic environment. We adjust our pension liability related to our plans due to changes in actuarial assumptions and performance of plan investments, as shown below. Effective in 1998, benefits under one of the international plans were frozen indefinitely. We maintained a U.S. defined benefit pension plan (the Plan) that covered certain persons who were employees of Computervision Corporation (acquired by us in 1998). Benefits under the Plan were frozen in 1990. In the second quarter of 2014, we began the process of terminating the Plan, which included settling Plan liabilities by offering lump sum distributions to plan participants and purchasing annuity contracts to cover vested benefits. We completed the termination in the fourth quarter of 2015. In connection with the termination, we contributed $25.5 million to the Plan and recorded a settlement loss of $66.3 million . The following table presents the actuarial assumptions used in accounting for the pension plans: U.S. Plan International Plans 2016 2015 2014 2016 2015 2014 Weighted average assumptions used to determine benefit obligations at September 30 measurement date: Discount rate — % — % 3.80 % 1.3 % 2.2 % 2.4 % Rate of increase in future compensation — % — % — % 2.8 % 3.0 % 3.0 % Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: Discount rate — % 3.80 % 4.90 % 2.2 % 2.4 % 3.3 % Rate of increase in future compensation — % — % — % 3.0 % 3.0 % 3.0 % Rate of return on plan assets — % 1.35 % 7.25 % 5.7 % 5.8 % 5.7 % In selecting the expected long-term rate of return on assets, we considered the current investment portfolio and the investment return goals in the plans’ investment policy statements. We, with input from the plans’ professional investment managers and actuaries, also considered the average rate of earnings expected on the funds invested or to be invested to provide plan benefits. This process included determining expected returns for the various asset classes that comprise the plans’ target asset allocation. This basis for selecting the long-term asset return assumptions is consistent with the prior year. Using generally accepted diversification techniques, the plans’ assets, in aggregate and at the individual portfolio level, are invested so that the total portfolio risk exposure and risk-adjusted returns best meet the plans’ long-term liabilities to employees. Plan asset allocations are reviewed periodically and rebalanced to achieve target allocation among the asset categories when necessary. As of September 30, 2016 , for the international plans, the weighted long-term rate of return assumption is 5.44% . These rates of return, together with the assumptions used to determine the benefit obligations as of September 30, 2016 in the table above, will be used to determine our 2017 net periodic pension cost, which we expect to be approximately $2.7 million . The actuarially computed components of net periodic pension cost recognized in our Consolidated Statements of Operations for each year are shown below: U.S. Plan International Plans 2016 2015 2014 2016 2015 2014 (in thousands) Interest cost of projected benefit obligation $ — $ 4,591 $ 5,461 $ 1,374 $ 1,828 $ 2,442 Service cost — — — 1,599 1,466 1,659 Expected return on plan assets — (1,364 ) (7,151 ) (3,305 ) (3,364 ) (2,506 ) Amortization of prior service cost — — — (5 ) (4 ) (5 ) Recognized actuarial loss — 2,577 2,213 2,292 1,815 1,181 Settlement loss — 66,332 — — — — Net periodic pension cost $ — $ 72,136 $ 523 $ 1,955 $ 1,741 $ 2,771 The following tables display the change in benefit obligation and the change in the plan assets and funded status of the plans as well as the amounts recognized in our Consolidated Balance Sheets: U.S. Plan International Plans Total Year ended September 30, 2016 2015 2016 2015 2016 2015 (in thousands) Change in benefit obligation: Projected benefit obligation—beginning of year $ — $ 134,453 $ 78,188 $ 84,106 $ 78,188 $ 218,559 Service cost — — 1,599 1,466 1,599 1,466 Interest cost — 4,591 1,374 1,828 1,374 6,419 Actuarial loss — 1,606 10,556 1,988 10,556 3,594 Foreign exchange impact — — 2,431 (9,515 ) 2,431 (9,515 ) Participant contributions — — 147 198 147 198 Benefits paid — (5,300 ) (1,600 ) (1,883 ) (1,600 ) (7,183 ) Settlements — (135,350 ) — — — (135,350 ) Projected benefit obligation—end of year $ — $ — $ 92,695 $ 78,188 $ 92,695 $ 78,188 Change in plan assets and funded status: Plan assets at fair value—beginning of year $ — $ 112,859 $ 57,961 $ 44,491 $ 57,961 $ 157,350 Actual return on plan assets — 2,316 1,742 (438 ) 1,742 1,878 Employer contributions — 25,475 1,978 21,225 1,978 46,700 Participant contributions — — 147 198 147 198 Foreign exchange impact — — 1,707 (5,632 ) 1,707 (5,632 ) Settlements — (135,350 ) — — — (135,350 ) Benefits paid — (5,300 ) (1,600 ) (1,883 ) (1,600 ) (7,183 ) Plan assets at fair value—end of year — — 61,935 57,961 61,935 57,961 Projected benefit obligation—end of year — — 92,695 78,188 92,695 78,188 Underfunded status $ — $ — $ (30,760 ) $ (20,227 ) $ (30,760 ) $ (20,227 ) Accumulated benefit obligation—end of year $ — $ — $ 88,768 $ 74,928 $ 88,768 $ 74,928 Amounts recognized in the balance sheet: Non-current liability $ — $ — $ (30,760 ) $ (20,227 ) $ (30,760 ) $ (20,227 ) Current liability $ — $ — $ — $ — $ — $ — Amounts in accumulated other comprehensive loss: Unrecognized actuarial loss $ — $ — $ 38,667 $ 28,339 $ 38,667 $ 28,339 We expect to recognize approximately $3.4 million of the unrecognized actuarial loss as of September 30, 2016 as a component of net periodic pension cost in 2017 . The following table shows change in accumulated other comprehensive loss: U.S. Plan International Plans Total Year ended September 30, 2016 2015 2016 2015 2016 2015 (in thousands) Accumulated other comprehensive loss- beginning of year $ — $ 68,256 $ 28,339 $ 27,669 $ 28,339 $ 95,925 Recognized during year - net actuarial (losses) — (2,577 ) (2,288 ) (1,811 ) (2,288 ) (4,388 ) Occurring during year - settlement loss — (66,332 ) — — — (66,332 ) Occurring during year - net actuarial losses — 653 12,119 5,792 12,119 6,445 Foreign exchange impact — — 497 (3,311 ) 497 (3,311 ) Accumulated other comprehensive loss- end of year $ — $ — $ 38,667 $ 28,339 $ 38,667 $ 28,339 The following table shows the percentage of total plan assets for each major category of plan assets: International Plans September 30, 2016 2015 Asset category: Equity securities 49% 53% Fixed income securities 30% 32% Commodities 4% —% Insurance company 16% 13% Cash 1% 2% 100% 100% We periodically review the pension plans’ investments in the various asset classes. The current asset allocation target is 60% equity securities and 40% fixed income securities for the CoCreate plan in Germany, and 100% fixed income securities for the other international plans. The fixed income securities for the other international plans primarily include investments held with insurance companies with fixed returns. The plans’ investment managers are provided specific guidelines under which they are to invest the assets assigned to them. In general, investment managers are expected to remain fully invested in their asset class with further limitations on risk as related to investments in a single security, portfolio turnover and credit quality. The German CoCreate plan's investment policy prohibits the use of derivatives associated with leverage and speculation or investments in securities issued by PTC, except through index-related strategies and/or commingled funds. An investment committee oversees management of the pension plans’ assets. Plan assets consist primarily of investments in mutual funds invested in equity and fixed income securities. In 2016 , 2015 and 2014 our actual return on plan assets was $1.7 million , $1.9 million and $15.9 million , respectively. Based on actuarial valuations and additional voluntary contributions, we contributed $2.0 million , $46.7 million , and $12.9 million in 2016 , 2015 and 2014 , respectively, to the plans. As of September 30, 2016 , benefit payments expected to be paid over the next ten years are outlined in the following table: Future Benefit Payments (in thousands) Year ending September 30, 2017 $ 1,899 2018 2,314 2019 2,566 2020 2,861 2021 3,175 2022 to 2026 22,034 Fair Value of Plan Assets The International Plan assets are comprised primarily of investments in a trust and an insurance company. The underlying investments in the trust are primarily publicly traded European DJ EuroStoxx50 equities and European governmental fixed income securities. They are classified as Level 1 because the underlying units of the trust are traded in open public markets. The fair value of the underlying investments in equity securities and fixed income are based upon publicly-traded exchange prices. September 30, 2016 Level 1 Level 2 Level 3 Total (in thousands) International plan assets: Fixed income securities: Government $ 8,518 $ — $ — $ 8,518 Europe corporate investment grade 10,218 — — 10,218 Europe large capitalization stocks 30,615 — — 30,615 Commodities 2,709 — — 2,709 Insurance company funds (1) — 9,578 — 9,578 Cash 297 — — 297 $ 52,357 $ 9,578 $ — $ 61,935 September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) International plan assets: Fixed income securities: Government $ 11,086 $ — $ — $ 11,086 Europe corporate investment grade 7,487 — — 7,487 Europe large capitalization stocks 30,887 — — 30,887 Insurance company funds (1) — 7,668 — 7,668 Cash 833 — — 833 $ 50,293 $ 7,668 $ — $ 57,961 (1) These investments are comprised primarily of funds invested with an insurance company in Japan with a guaranteed rate of return. The insurance company invests these assets primarily in government and corporate bonds. |
Derivative Financial Instrument
Derivative Financial Instruments (Notes) | 12 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments As of September 30, 2016 and 2015 , we had outstanding forward contracts for derivatives not designated as hedging instruments with notional amounts equivalent to the following: September 30, Currency Hedged 2016 2015 (in thousands) Canadian/U.S. Dollar $ 14,685 $ 17,448 Euro/U.S. Dollar 174,120 82,917 British Pound/Euro 1,382 9,409 Israeli Sheqel/U.S. Dollar 7,271 4,607 Japanese Yen/Euro 32,782 25,133 Japanese Yen/U.S. Dollar 6,716 — Swiss Franc/U.S. Dollar 730 5,149 All other 11,848 12,592 Total $ 249,534 $ 157,255 The following table shows the effect of our non-designated hedges in the Consolidated Statements of Operations for the twelve months ended September 30, 2016 and 2015 : Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged) Twelve months ended September 30, September 30, September 30, (in thousands) Forward Contracts Other Income (Expense) $ (883 ) $ 615 $ (3,769 ) As of September 30, 2016 and 2015 , we had outstanding forward contracts designated as cash flow hedges with notional amounts equivalent to the following: Currency Hedged September 30, September 30, (in thousands) Euro / U.S. Dollar $ 26,181 $ — Japanese Yen / U.S. Dollar 8,800 — SEK / U.S. Dollar 4,078 — Total $ 39,059 $ — We had no derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the twelve months ended September 30, 2015 and 2014. The following table shows the effect of the our derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the twelve months ended September 30, 2016 (in thousands): Derivatives Designated as Hedging Instruments Gain or (Loss)Recognized in OCI-Effective Portion Location of Gain or (Loss) Reclassified from OCI into Income-Effective Portion Gain or (Loss) Reclassified from OCI into Income-Effective Portion Location of Gain or (Loss) Recognized-Ineffective Portion Gain or (Loss) Recognized-Ineffective Portion Twelve Months Ended Twelve Months Ended Twelve Months Ended September 30, September 30, September 30, Forward Contracts $ (3,859 ) Software Revenue $ (2,436 ) Other Income (Expense) $ (24 ) As of September 30, 2016 , we estimated that approximately all values reported in accumulated other comprehensive income will be reclassified to income within the next twelve months. 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)” on the Consolidated Statements of Operations. For the twelve months ended September 30, 2016 , there were no such gains or losses. The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets: Fair Value of Derivatives Designated As Hedging Instruments Fair Value of Derivatives Not Designated As Hedging Instruments September 30, September 30, September 30, September 30, (in thousands) (in thousands) Derivative assets (a): Forward Contracts $ 44 $ — $ 216 $ 507 Derivative liabilities (b): Forward Contracts $ 1,477 $ — $ 1,693 $ 46 (a) All derivative assets are recorded in “other current assets” in the Consolidated Balance Sheets. (b) All derivative liabilities are recorded in "accrued expenses and other current liabilities" in 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, 2016 : Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets September 30, 2016 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 (in thousands) Forward Contracts $ 260 $ — $ 260 $ (260 ) $ — $ — The following table sets forth the offsetting of derivative liabilities as of September 30, 2016 : Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets September 30, 2016 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 (in thousands) Forward Contracts $ 3,170 $ — $ 3,170 $ (260 ) $ — $ 2,910 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 $1.9 million , $2.7 million and $4.5 million for 2016 , 2015 and 2014 , respectively. Net realized and unrealized gains and losses on forward contracts included in foreign currency net losses were a net loss of 0.5 million in 2016 , a net gain of 0.6 million in 2015 , and a net loss of 3.8 million in 2014 . |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate within a single industry segment-computer software and related services. Operating segments as defined under GAAP are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our President and Chief Executive Officer. We have three operating and reportable segments: (1) the Solutions Group, which includes license, subscription, support and cloud services revenue for our core CAD, SLM and PLM products; (2) the IoT Group, which includes license, subscription, support and cloud services revenue for our IoT, analytics and augmented reality solutions, and (3) Professional Services, which includes consulting, implementation and training revenue. Our reported segment profit includes revenue from third party sales of our products and services, less direct controllable segment costs. Direct costs of the segments include certain costs of revenue, research and development and certain marketing costs. Costs excluded from segment margin include cost of revenue, selling expenses, corporate marketing and general and administrative costs that are incurred in support of all of our segments and are not specifically allocated to our segments for management reporting. Additionally, the 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. Year ended September 30, 2016 2015 2014 (in thousands) Solutions Group Revenue $ 871,225 $ 980,274 $ 1,073,426 Direct costs 186,174 224,042 244,020 Profit 685,051 756,232 829,406 IoT Group Revenue 72,371 49,249 4,815 Direct costs 83,747 28,998 8,534 Profit (loss) (11,376 ) 20,251 (3,719 ) Professional Services Revenue 196,937 225,719 278,726 Direct costs 165,325 193,397 237,689 Profit 31,612 32,322 41,037 Total segment revenue 1,140,533 1,255,242 1,356,967 Total segment costs 435,246 446,437 490,243 Total segment profit 705,287 808,805 866,724 Other unallocated operating expenses (1) 666,028 723,780 641,742 Restructuring charges 76,273 43,409 28,406 Total operating income (loss) (37,014 ) 41,616 196,576 Interest and other expense, net 30,178 15,091 10,464 Income (loss) before income taxes $ (67,192 ) $ 26,525 $ 186,112 (1) The Solutions Group segment includes depreciation of $5.4 million , $5.6 million and $5.7 million in 2016, 2015 and 2014, respectively. The IoT Group segment includes depreciation of $1.6 million , $1.0 million and $0.1 million in 2016, 2015 and 2014, respectively. The Professional Services segment includes depreciation of $2.0 million , $2.2 million and $2.3 million in 2016, 2015 and 2014, respectively. Unallocated departments includes depreciation of $19.7 million , $20.1 million and $19.0 million in 2016, 2015 and 2014, respectively. We report revenue by the following four product areas: • CAD: PTC Creo ® and PTC Mathcad ® . • PLM: PLM solutions (primarily PTC Windchill ® ), PTC Integrity ™ and Atego ® . • SLM: PTC Arbortext ® and PTC Servigistics ® . • IoT: ThingWorx ® , Axeda ® and Vuforia. Year ended September 30, 2016 2015 2014 (in thousands) CAD $ 462,307 $ 511,582 $ 581,508 PLM 456,285 524,741 599,312 SLM 141,644 166,060 170,980 IoT 80,297 52,859 5,167 Total revenue $ 1,140,533 $ 1,255,242 $ 1,356,967 Revenue and long-lived tangible assets for the geographic regions in which we operate is presented below. Year ended September 30, 2016 2015 2014 (in thousands) Revenue: Americas (1) $ 487,594 $ 530,311 $ 558,671 Europe (2) 424,268 467,805 528,090 Pacific Rim 123,766 139,165 148,151 Japan 104,905 117,961 122,055 Total revenue $ 1,140,533 $ 1,255,242 $ 1,356,967 September 30, 2016 2015 2014 (in thousands) Long-lived tangible assets: Americas (3) $ 48,281 $ 47,509 $ 51,027 Europe 6,915 7,424 7,020 Asia-Pacific 11,917 10,229 9,736 Total long-lived tangible assets $ 67,113 $ 65,162 $ 67,783 (1) Includes revenue in the United States totaling $463.1 million , $500.6 million and $518.7 million for 2016 , 2015 and 2014 , respectively. (2) Includes revenue in Germany totaling $167.2 million , $177.1 million and $200.3 million for 2016 , 2015 and 2014 , respectively. (3) Substantially all of the Americas long-lived tangible assets are located in the United States. Our international revenue is presented based on the location of our customer. We license products to customers worldwide. Our sales and marketing operations outside the United States are conducted principally through our international sales subsidiaries throughout Europe and the Asia-Pacific regions. Intercompany sales and transfers between geographic areas are accounted for at prices that are designed to be representative of unaffiliated party transactions. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Korea Tax Payment In October 2016, we paid $12.0 million related the Korea tax assessment described in Note G. Income Taxes. Restricted Stock Unit Grants In November 2016, we granted the restricted stock units shown in the table below to employees, including some of our executive officers. The performance-based RSUs were granted to our executive officers. The RSUs granted to our executive officers are eligible to vest based upon our total shareholder return relative to a peer group target (the “TSR units”), measured annually over a three -year period that commenced on October 1, 2016. To the extent earned, these TSR units will vest in three substantially equal installments on the later of November 15, 2017, November 15, 2018 and November 15, 2019, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. RSUs not earned for a period may be earned in the third period. The number of TSR units that will vest will be based on the level of achievement up to a maximum of 495,000 shares, with no vesting if the annual threshold requirement is not achieved, or the employee is no longer with the Company at the end of the relevant performance period. The time-based RSUs were issued to both employees and our executive officers. In addition, executive officers have opportunity to earn up to one or, for our CEO, two times the number of time-based RSUs (up to a maximum of 305,000 shares) if certain performance conditions are met. The time-based RSUs will vest in three substantially equal annual installments on November 15, 2017, 2018 and 2019. The performance-based RSUs will vest in three substantially equal installments on the later of November 15, 2017, November 15, 2018 and November 15, 2019, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved. TSR units Performance-Based RSUs Time-Based RSUs (in thousands) Maximum number of RSUs eligible to vest 495 316 711 Intrinsic value on grant date based on the maximum number of RSUs eligible to vest $ 23,482 $ 14,991 $ 33,731 Borrowings In November 2016, we borrowed $60 million under our credit facility to fund working capital requirements, including 2016 year end incentive-based compensation accruals. |
Summary Of Significant Accoun25
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Cost Method Investments, Policy [Policy Text Block] | Cost Method Investments We generally account for non-marketable equity investments under the cost method. 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. For an other-than-temporary impairment in the investment, we record a charge to other expense for the difference between the estimated fair value and the carrying value. The carrying value of our non-marketable equity investments are recorded in noncurrent assets and totaled $11.6 million and $11.0 million as of September 30, 2016 and 2015, respectively. |
Foreign Currency Translation | Foreign Currency Translation For our non-U.S. operations where the functional currency is the local currency, we translate assets and liabilities at exchange rates in effect at the balance sheet date and record translation adjustments in stockholders’ equity. For our non-U.S. operations where the U.S. dollar is the functional currency, we remeasure monetary assets and liabilities using exchange rates in effect at the balance sheet date and nonmonetary assets and liabilities at historical rates and record resulting exchange gains or losses in foreign currency net losses in the Consolidated Statements of Operations. We translate income statement amounts at average rates for the period. Transaction gains and losses are recorded in foreign currency net losses in the Consolidated Statements of Operations. |
Revenue Recognition | Revenue Recognition Our sources of revenue include: (1) subscription, (2) support, (3) perpetual license and (4) professional services. We record revenues for software related deliverables in accordance with the guidance provided by ASC 985-605, Software-Revenue Recognition and revenues for non-software deliverables in accordance with ASC 605-25 , Revenue Recognition, Multiple-Element Arrangements when the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred (generally, FOB shipping point or electronic distribution), (3) the fee is fixed or determinable, and (4) collection is probable. We exercise judgment and use estimates in connection with determining the amounts of software license and services revenues to be recognized in each accounting period. Our primary judgments involve the following: • determining whether collection is probable; • assessing whether the fee is fixed or determinable; • determining whether service arrangements, including modifications and customization of the underlying software, are not essential to the functionality of the licensed software and thus would result in the revenue for license and service elements of an agreement being recorded separately; and • determining the fair value of services and support elements included in multiple-element arrangements, which is the basis for allocating and deferring revenue for such services and support. Our software is distributed primarily through our direct sales force. In addition, we have an indirect distribution channel through alliances with resellers. Revenue arrangements with resellers are generally recognized on a sell-through basis; that is, when we deliver the product to the end-user customer. We record consideration given to a reseller as a reduction of revenue to the extent we have recorded revenue from the reseller. We do not offer contractual rights of return, stock balancing, or price protection to our resellers, and actual product returns from them have been insignificant to date. As a result, we do not maintain reserves for reseller product returns. At the time of each sale transaction, we must make an assessment of the collectability of the amount due from the customer. Revenue is only recognized at that time if management deems that collection is probable. In making this assessment, we consider customer credit-worthiness and historical payment experience. At that same time, we assess whether fees are fixed or determinable and free of contingencies or significant uncertainties. In assessing whether the fee is fixed or determinable, we consider the payment terms of the transaction, including transactions with payment terms that extend beyond our customary payment terms, and our collection experience in similar transactions without making concessions, among other factors. We have periodically provided financing to credit-worthy customers with payment terms up to 24 months. If the fee is determined not to be fixed or determinable, revenue is recognized only as payments become due from the customer, provided that all other revenue recognition criteria are met. Our software license arrangements generally do not include customer acceptance provisions. However, if an arrangement includes an acceptance provision, we record revenue only upon the earlier of (1) receipt of written acceptance from the customer or (2) expiration of the acceptance period. Generally, our contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. Subscription Subscription revenue includes revenue from two primary sources: (1) subscription-based licenses, and (2) cloud services. Subscription-based licenses include the right for a customer to use our licenses and receive related support for a specified term and revenue is recognized ratably over the term of the arrangement. When sold in arrangements with other elements, VSOE of fair value is established for the subscription-based licenses through the use of a substantive renewal clause within the customer contract for a combined annual fee that includes the term-based license and related support. Cloud services reflect recurring revenues that include fees for hosting and application management of customers’ perpetual or subscription-based licenses. Generally, customers have the right to terminate the cloud services contract and take possession of the licenses without a significant penalty. When cloud services are sold as part of a multi-element transaction, revenue is allocated to cloud services based on VSOE, and recognized ratably over the contractual term beginning on the commencement dates of each contract, which is the date the services are made available to the customer. VSOE is established for cloud services either through a substantive stated renewal option or stated contractual overage rates, as these rates represent the value the customer is willing to pay on a standalone basis. We also offer Cloud services under SaaS arrangements whereby customers access our software in the cloud. Under SaaS arrangements, customers are not entitled to terminate the cloud services and cannot take possession of the software. Cloud services include set-up fees, which are recognized ratably over the contract term or the expected customer life, whichever is longer. Support Support contracts generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates and bug fixes. Support revenue is recognized ratably over the term of the support contract on a straight-line basis. Perpetual License Under perpetual license arrangements, we generally recognize license revenue up front upon shipment to the customer. We use the residual method to recognize revenue from perpetual license software arrangements that include one or more elements to be delivered at a future date when evidence of the fair value of all undelivered elements exists, and the elements of the arrangement qualify for separate accounting as described below. Under the residual method, the fair value of the undelivered elements (i.e., support and services) based on our vendor-specific objective evidence (“VSOE”) of fair value is deferred and the remaining portion of the total arrangement fee is allocated to the delivered elements (i.e., perpetual software license). If evidence of the fair value of one or more of the undelivered elements does not exist, all revenues are deferred and recognized when delivery of all of those elements has occurred or when fair values can be established. We determine VSOE of the fair value of services and support revenue based upon our recent pricing for those elements when sold separately. For certain transactions, VSOE is determined based on a substantive renewal clause within a customer contract. Our current pricing practices are influenced primarily by product type, purchase volume, sales channel and customer location. We review services and support sold separately on a periodic basis and update, when appropriate, our VSOE of fair value for such elements to ensure that it reflects our recent pricing experience. Professional Services Our software arrangements often include implementation, consulting and training services that are sold under consulting engagement contracts or as part of the software license arrangement. When we determine that such services are not essential to the functionality of the licensed software, we record revenue separately for the license and service elements of these arrangements, provided that appropriate evidence of fair value exists for the undelivered services (i.e. VSOE of fair value). We consider various factors in assessing whether a service is not essential to the functionality of the software, including if the services may be provided by independent third parties experienced in providing such services (i.e. consulting and implementation) in coordination with dedicated customer personnel, and whether the services result in significant modification or customization of the software’s functionality. When professional services qualify for separate accounting, professional services revenues under time and materials billing arrangements are recognized as the services are performed. Professional services revenues under fixed-priced contracts are generally recognized as the services are performed using a proportionate performance model with hours or costs as the input method of attribution. When we provide professional services that are considered essential to the functionality of the software, the arrangement does not qualify for separate accounting of the license and service elements, and the license revenue is recognized together with the consulting services using the percentage-of-completion method of contract accounting. Under such arrangements, consideration is recognized as the services are performed as measured by an observable input. In these circumstances, we separate license revenue from service revenue for income statement presentation by allocating VSOE of fair value of the consulting services as service revenue, and the residual portion as license revenue. Under the percentage-of-completion method, we estimate the stage of completion of contracts with fixed or “not to exceed” fees based on hours or costs incurred to date as compared with estimated total project hours or costs at completion. Adjustments to estimates to complete are made in the periods in which facts resulting in a change become known. When total cost estimates exceed revenues, we accrue for the estimated losses when identified. The use of the proportionate performance and percentage-of-completion methods of accounting require significant judgment relative to estimating total contract costs or hours (hours being a proxy for costs), including assumptions relative to the length of time to complete the project, the nature and complexity of the work to be performed and anticipated changes in salaries and other costs. Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in professional services revenue, with the offsetting expense recorded in cost of professional services revenue. Training services include on-site and classroom training. Training revenues are recognized as the related training services are provided. |
Deferred Revenue | Deferred Revenue Deferred revenue primarily relates to software subscription and support agreements billed to customers for which the services have not yet been provided. The liability associated with performing these services is included in deferred revenue and, if not yet paid, the related customer receivable is included in other current assets. Billed but uncollected support and subscription-related amounts included in other current assets at September 30, 2016 and 2015 were $126.3 million and $129.3 million , respectively. Deferred revenue consisted of the following: September 30, 2016 2015 (in thousands) Deferred subscription revenue $ 102,847 $ 37,478 Deferred support revenue 297,684 331,793 Deferred perpetual license revenue 4,151 4,940 Deferred professional services revenue 8,975 12,639 Total deferred revenue $ 413,657 $ 386,850 |
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 The amortized cost and fair value of marketable securities as of September 30, 2016 were as follows: September 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (in thousands) Certificates of deposit $ 681 $ — $ — $ 681 Commercial paper 11,945 — (20 ) 11,925 Corporate notes/bonds 34,701 — (100 ) 34,601 US government agency securities 2,411 — (2 ) 2,409 $ 49,738 $ — $ (122 ) $ 49,616 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 due to changes in market interest rates, bond yields and/or credit ratings. We review our investments to identify and evaluate investments that have an indication of possible impairment. We concluded that, at September 30, 2016, the unrealized losses were temporary. The following table presents our available-for-sale marketable securities by contractual maturity date, as of September 31, 2016. September 31, 2016 Amortized cost Fair value (in thousands) Due in one year or less $ 18,585 $ 18,549 Due after one year through three years 31,153 31,067 $ 49,738 $ 49,616 |
Concentration Of Credit Risk And Fair Value Of Financial Instruments | Concentration of Credit Risk and Fair Value of Financial Instruments The amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short maturities. Financial instruments that potentially subject us to concentration of credit risk consist primarily of investments, trade accounts receivable and foreign currency derivative instruments. Our cash, cash equivalents, and foreign currency derivatives are placed with financial institutions with high credit standings. Our credit risk for derivatives is also mitigated due to the short-term nature of the contracts. Our customer base consists of large numbers of geographically diverse customers dispersed across many industries. No individual customer comprised more than 10% of our trade accounts receivable as of September 30, 2016 or 2015 or comprised more than 10% of our revenue for the years ended September 30, 2016, 2015 or 2014. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. Generally accepted accounting principles prescribe a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs that may be used to measure fair value: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or • Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. 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. 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 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 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. The fair value of our contingent consideration arrangements are determined based on our evaluation as to the probability and amount of any earn-out that will be achieved based on expected future performances by the acquired entities. These arrangements are classified within Level 3 of the fair value hierarchy. Our significant financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and 2015 were as follows: September 30, 2016 Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash equivalents (1) $ 60,139 $ — $ — $ 60,139 Marketable securities Certificates of deposit — 681 — 681 Commercial paper — 11,925 — 11,925 Corporate notes/bonds 34,601 — — 34,601 U.S. government agency securities — 2,409 — 2,409 Forward contracts — 260 — 260 $ 94,740 $ 15,275 $ — $ 110,015 Financial liabilities: Contingent consideration related acquisitions $ — $ — $ 19,570 $ 19,570 Forward contracts — 3,170 — 3,170 $ — $ 3,170 $ 19,570 $ 22,740 September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash equivalents (1) $ 91,216 $ — $ — $ 91,216 Forward contracts — 507 — 507 $ 91,216 $ 507 $ — $ 91,723 Financial liabilities: Contingent consideration related to acquisitions $ — $ — $ 13,000 $ 13,000 Forward contracts — 46 — 46 $ — $ 46 $ 13,000 $ 13,046 (1) Money market funds and time deposits. For a description of the inputs used to value the contingent consideration liability see Note E Acquisitions . Changes in the fair value of Level 3 contingent consideration liability associated with our acquisitions of ThingWorx, ColdLight and Kepware were as follows: Contingent Consideration (in thousands) ThingWorx ColdLight Kepware Total Balance at October 1, 2014 $ 15,191 $ — $ — $ 15,191 Contingent consideration at acquisition — 3,800 — 3,800 Change in fair value of contingent consideration 2,809 200 — 3,009 Payment of contingent consideration (9,000 ) — — (9,000 ) Balance at October 1, 2015 9,000 4,000 — 13,000 Contingent consideration at acquisition — — 16,900 16,900 Change in fair value of contingent consideration — 1,000 170 1,170 Payment of contingent consideration (9,000 ) (2,500 ) — (11,500 ) Balance at September 30, 2016 $ — $ 2,500 $ 17,070 $ 19,570 Of the total, $11.8 million of the contingent consideration liabilities is included in accrued expenses and other current liabilities, with the remaining $7.8 million in other liabilities in the Consolidated Balance Sheet as of September 30, 2016 . |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. In determining the adequacy of the allowance for doubtful accounts, management specifically analyzes individual accounts receivable, historical bad debts, customer concentrations, customer credit-worthiness, current economic conditions, and accounts receivable aging trends. Our allowance for doubtful accounts on trade accounts receivable was $1.0 million as of September 30, 2016 , $1.0 million as of September 30, 2015 , $1.6 million as of September 30, 2014 and $3.0 million as of September 30, 2013 . Uncollectible trade accounts receivable written-off, net of recoveries, were $0.3 million , $0.8 million and $0.6 million in 2016 , 2015 and 2014 , respectively. Bad debt (credit) expense was $0.3 million , $0.2 million and $(0.8) million in 2016 , 2015 and 2014 , respectively, and is included in general and administrative expenses in the accompanying Consolidated Statements of Operations. |
Financing Receivables And Transfers Of Financial Assets | Financing Receivables and Transfers of Financial Assets We periodically provide extended payment terms for software purchases to credit-worthy customers with payment terms up to 24 months. The determination of whether to offer such payment terms is based on the size, nature and credit-worthiness of the customer, and the history of collecting amounts due, without concession, from the customer and customers generally. This determination is based on an internal credit assessment. In making this assessment, we use the Standard & Poor's (S&P) credit rating as our primary credit quality indicator, if available. If a customer, whether commercial and U.S. Federal government, has an S&P bond rating of BBB- or above, we designate the customer as a Tier 1. If a customer does not have an S&P bond rating, or has a S&P bond rating below BBB-, we base our assessment on an internal credit assessment which considers selected balance sheet, operating and liquidity measures, historical payment experience, and current business conditions within the industry or region. We designate these customers as Tier 2 or Tier 3, with Tier 3 being lower credit quality than Tier 2. As of September 30, 2016 and 2015 , amounts due from customers for contracts with original payment terms greater than twelve months (financing receivables) totaled $7.1 million and $27.4 million , respectively. Accounts receivable and other current assets in the accompanying Consolidated Balance Sheets include current receivables from such contracts totaling $7.1 million and $21.8 million at September 30, 2016 and 2015 , respectively, and other assets in the accompanying Consolidated Balance Sheets include long-term receivables from such contracts totaling $5.6 million at September 30, 2015 and none at September 30, 2016 . As of September 30, 2016 and September 30, 2015 , $0.1 million and $0.5 million , respectively, of these receivables were past due. Our credit risk assessment for financing receivables was as follows: September 30, 2016 2015 (in thousands) S&P bond rating BBB- and above-Tier 1 $ 5,953 $ 16,841 Internal Credit Assessment-Tier 2 1,182 10,593 Internal Credit Assessment-Tier 3 — — Total financing receivables $ 7,135 $ 27,434 We evaluate the need for an allowance for doubtful accounts for estimated losses resulting from the inability of these customers to make required payments. As of September 30, 2016 and 2015 , we concluded that all financing receivables were collectible and no reserve for credit losses was recorded. We did not provide a reserve for credit losses or write off any uncollectible financing receivables in 2016 , 2015 and 2014 . We write off uncollectible trade and financing receivables when we have exhausted all collection avenues. We periodically transfer future payments under certain of these contracts to third-party financial institutions on a non-recourse basis. We record such transfers as sales of the related accounts receivable when we surrender control of such receivables. In 2016 , we did not sell any financing receivables to third-party financial institutions. In 2015 and 2014 , we sold $3.0 million and $24.5 million , respectively, of financing receivables to third-party financial institutions. |
Derivatives | Derivatives Generally accepted accounting principles require all derivatives, whether designated in a hedging relationship or not, to be recorded on the balance sheet at fair value. 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 currency, 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 and cash flow hedge activities see Note N 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 and losses on forward contracts and foreign denominated receivables and payables are included in other income (expense), net. Cash Flow Hedges Our foreign exchange risk management program objective is to identify foreign exchange exposures and implement appropriate hedging strategies to minimize earnings fluctuations resulting from foreign exchange rate movements. We designate certain foreign exchange forward contracts as cash flow hedges of Euro, Yen and SEK denominated intercompany forecasted revenue transactions (supported by third party sales). All foreign exchange forward contracts are carried at fair value on the Consolidated Balance Sheets and the maximum duration of foreign exchange forward contracts does not exceed 13 months. Cash flow hedge relationships are designated at inception, and effectiveness is assessed prospectively and retrospectively using regression analysis on a monthly basis. As the forward contracts are highly effective in offsetting changes to future cash flows on the hedged transactions, we record the effective portion of changes in these cash flow hedges in accumulated other comprehensive income and subsequently reclassify into earnings in the same period during which the hedged transactions are recognized in earnings. Changes in the fair value of foreign exchange forward contracts due to changes in time value are included in 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. |
Property And Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Computer hardware and software are typically amortized over three to five years, and furniture and fixtures over three to eight years. Leasehold improvements are amortized over the shorter of their useful lives or the remaining terms of the related leases. Property and equipment under capital leases are amortized over the lesser of the lease terms or their estimated useful lives. Maintenance and repairs are charged to expense when incurred; additions and improvements are capitalized. When an item is sold or retired, the cost and related accumulated depreciation is relieved, and the resulting gain or loss, if any, is recognized in income. |
Software Development Costs | Software Development Costs We incur costs to develop computer software to be licensed or otherwise marketed to customers. Research and development costs are expensed as incurred, except for costs of internally developed or externally purchased software that qualify for capitalization. Development costs for software to be sold externally incurred subsequent to the establishment of technological feasibility, but prior to the general release of the product, are capitalized and, upon general release, are amortized using the greater of either the straight-line method over the expected life of the related products or based upon the pattern in which economic benefits related to such assets are realized. The straight-line method is used if it approximates the same amount of expense as that calculated using the ratio that current period gross product revenues bear to total anticipated gross product revenues. No development costs for software to be sold externally were capitalized in 2016 , 2015 or 2014 . In connection with acquisitions of businesses described in Note E, we capitalized software of $69.9 million and $13.6 million in 2016 and 2015 , respectively. These assets are included in acquired intangible assets in the accompanying Consolidated Balance Sheets. |
Goodwill, Acquired Intangible Assets And Long-lived Assets | Goodwill, Acquired Intangible Assets and Long-lived Assets Goodwill is the amount by which the purchase price in a business acquisition exceeds the fair values of net identifiable assets on the date of purchase. Goodwill is evaluated for impairment annually, as of the end of the third quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Factors we consider important, on an overall company basis and reportable-segment basis, when applicable, that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, a significant decline in our stock price for a sustained period and a reduction of our market capitalization relative to net book value. We completed our annual goodwill impairment review as of July 2, 2016 and concluded that no impairment charge was required as of that date. To conduct these tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss equal to the difference between the carrying value of goodwill and its implied fair value. We estimate the fair values of our reporting units using discounted cash flow valuation models. Those models require estimates of future revenues, profits, capital expenditures, working capital, terminal values based on revenue multiples, and discount rates for each reporting unit. We estimate these amounts by evaluating historical trends, current budgets, operating plans and industry data. The estimated fair value of each reporting unit was at least approximately twice its carrying value as of July 2, 2016. Long-lived assets primarily include property and equipment and acquired intangible assets with finite lives (including purchased software, customer lists and trademarks). Purchased software is amortized over periods up to 11 years, customer lists are amortized over periods up to 12 years and trademarks are amortized over periods up to 12 years. We review long-lived assets for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset or asset group. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. |
Advertising Expenses | Advertising Expenses Advertising costs are expensed as incurred. Total advertising expenses incurred were $2.1 million , $1.1 million and $2.2 million in 2016 , 2015 and 2014 , respectively. |
Income Taxes | Income Taxes Our income tax expense includes U.S. and international income taxes. Certain items of income and expense are not reported in tax returns and financial statements in the same year. The tax effects of these differences are reported as deferred tax assets and liabilities. Deferred tax assets are recognized for the estimated future tax effects of deductible temporary differences and tax operating loss and credit carryforwards. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe that it is more likely than not that all or a portion of deferred tax assets will not be realized, we establish a valuation allowance. To the extent we establish a valuation allowance or increase this allowance in a period, we include an expense within the tax provision in the Consolidated Statements of Operations. |
Comprehensive Income (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. For the purposes of comprehensive income disclosures, we do not record tax provisions or benefits for the net changes in the foreign currency translation adjustment, as we intend to reinvest permanently undistributed earnings of our foreign subsidiaries. Accumulated other comprehensive loss is reported as a component of stockholders’ equity and, as of September 30, 2016 and 2015 , was comprised of cumulative translation adjustment losses of $71.2 million and $71.6 million , respectively, unrecognized actuarial losses related to pension benefits of $38.7 million ( $27.4 million net of tax) and $28.3 million ( $20.1 million net of tax), respectively, unrecognized loss on hedging instruments of $1.4 million ( $1.2 million net of tax) and zero , respectively, and unrecognized losses on marketable securities of $0.1 million and zero , respectively. |
Earnings Per Share (EPS) | Earnings per Share (EPS) Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, restricted shares and restricted stock units using the treasury stock method. The calculation of the dilutive effect of outstanding equity awards under the treasury stock method includes consideration of proceeds from the assumed exercise of stock options, unrecognized compensation expense and any tax benefits as additional proceeds. Due to the net loss generated in the year ended September 30, 2016, approximately 1.7 million restricted stock units have been excluded from the computation of diluted EPS as the effect would have been anti-dilutive. The following table presents the calculation for both basic and diluted EPS: Year ended September 30, 2016 2015 2014 (in thousands, except per share data) Net income (loss) $ (54,465 ) $ 47,557 $ 160,194 Weighted average shares outstanding 114,612 114,775 118,094 Dilutive effect of employee stock options, restricted shares and restricted stock units — 1,237 1,890 Diluted weighted average shares outstanding 114,612 116,012 119,984 Basic earnings per share $ (0.48 ) $ 0.41 $ 1.36 Diluted earnings per share $ (0.48 ) $ 0.41 $ 1.34 |
Stock-Based Compensation | Stock-Based Compensation We measure the compensation cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. See Note K for a description of the types of stock-based awards granted, the compensation expense related to such awards and detail of equity-based awards outstanding. See Note G for detail of the tax benefit recognized in the Consolidated Statements of Operations related to stock-based compensation. |
Related Party Transaction | Related Party Transaction On November 27, 2013, we entered into a consulting agreement with Professor Michael Porter, who was a director of PTC at the time. In consideration for providing consulting services, we made a restricted stock unit grant valued at approximately $0.2 million ( 6,213 shares) to Professor Porter, half of which vested on November 15, 2014 and the other half of which vested on March 4, 2015 . Professor Porter earned $240,000 in fees for participation in strategy events on behalf of PTC under the agreement. The agreement and Professor Porter's tenure as director ended on March 4, 2015 . |
New Accounting Pronouncements | Recent Accounting Pronouncements Income Taxes In October 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). 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. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods and early adoption is permitted. We are currently assessing the potential impact of the adoption of ASU 2016-16 on our consolidated financial statements. Cash Flows In August 2016, the FASB issued ASU 2016-15 to clarify whether the following items should be categorized as operating, investing or financing in the statement of cash flows: (i) debt prepayments and extinguishment costs, (ii) settlement of zero-coupon debt, (iii) settlement of contingent consideration, (iv) insurance proceeds, (v) settlement of corporate-owned life insurance (COLI) and bank-owned life insurance (BOLI) policies, (vi) distributions from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) receipts and payments with aspects of more than one class of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Financial Instruments - Credit Losses In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities, and provides for additional disclosure requirements. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, our fiscal 2021, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Stock Compensation In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments, including accounting for income taxes, earnings per share, and forfeitures, as well as certain practical expedients for nonpublic entities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, our fiscal 2018, and interim periods within those years. Early adoption is permitted in any interim period, with all adjustments applied as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which will replace the existing guidance in ASC 840, Leases. The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and to disclose important information about leasing arrangements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, our fiscal 2020, and interim periods within those annual periods. Early adoption is permitted and modified retrospective application is required. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Financial Instruments In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. Entities may choose a practical expedient, to estimate the fair value of certain equity securities that do not have readily determinable fair values. If the practical expedient is elected, these investments would be recorded at cost, less impairment and subsequently adjusted for observable price changes. The guidance also updates certain presentation and disclosure requirements. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, our fiscal 2019, and interim periods within those fiscal years. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Deferred Taxes In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), to simplify the presentation of deferred income taxes. The amendments in this Update require that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that permits offsetting only within a jurisdiction and companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for public companies for fiscal years beginning after December 15, 2016, with early adoption permitted for all entities as of the beginning of an interim or annual reporting period. This guidance may be applied either prospectively or retrospectively (by reclassifying the comparative balance sheet). We adopted this new guidance in our first quarter ended January 2, 2016 and applied this guidance prospectively and therefore prior periods have not been retrospectively adjusted. At September 30, 2015, net current deferred tax assets and net current deferred tax liabilities were $36.8 million and $1.6 million , respectively. Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In July 2015, the FASB approved a one-year delay in the effective date. ASU 2014-09 is effective for us in our first quarter of fiscal 2019 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. Subsequently, the FASB has issued the following standards to provide additional clarification and implementation guidance on ASU 2014-09: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. We are currently evaluating the impact of these new standards on our consolidated financial statements. Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30), to simplify the required presentation of debt issuance costs. The amended guidance requires that debt issuance costs be presented in the balance sheet as a direct reduction from the carrying amount of the related debt liability rather than as an asset. It is effective for financial statements issued for fiscal years beginning after December 15, 2015, our fiscal 2017, with early adoption permitted. The new guidance will be applied retrospectively to each prior period presented. See Note H. Debt for our debt balances at September 30, 2016 and 2015 net of the debt issuance costs. Going Concern In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which requires management to evaluate whether there is substantial doubt about the entity's ability to continue as a going concern and, if so, provide certain footnote disclosures. This ASU is effective for annual periods ending after December 15, 2016, including interim reporting periods thereafter. We do not anticipate that adopting this standard will have an impact on the financial statements and are currently evaluating the potential impact to our footnote disclosures. |
Description of Business and B26
Description of Business and Basis of Presentation (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Reclassifications | The following revenue and costs have been reclassified in the accompanying Consolidated Statements of Operations for the year ended September 30, 2015 and 2014 to conform to the current period presentation. Year Ended September 30, 2015 2014 Reclassifications within revenue (in millions) From L&S to Perpetual License $ 282.8 $ 362.6 From L&S to Subscription 65.2 27.1 Reclassifications within cost of revenue From L&S to Software $ 53.2 $ 45.0 From Support to Software 82.8 84.7 Reclassifications within operating expenses From General and Administrative to Selling and Marketing $ 8.0 $ 10.0 |
Summary Of Significant Accoun27
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Deferred Revenue | Deferred revenue consisted of the following: September 30, 2016 2015 (in thousands) Deferred subscription revenue $ 102,847 $ 37,478 Deferred support revenue 297,684 331,793 Deferred perpetual license revenue 4,151 4,940 Deferred professional services revenue 8,975 12,639 Total deferred revenue $ 413,657 $ 386,850 |
Marketable Securities | The amortized cost and fair value of marketable securities as of September 30, 2016 were as follows: September 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (in thousands) Certificates of deposit $ 681 $ — $ — $ 681 Commercial paper 11,945 — (20 ) 11,925 Corporate notes/bonds 34,701 — (100 ) 34,601 US government agency securities 2,411 — (2 ) 2,409 $ 49,738 $ — $ (122 ) $ 49,616 |
Investments Classified by Contractual Maturity Date | The following table presents our available-for-sale marketable securities by contractual maturity date, as of September 31, 2016. September 31, 2016 Amortized cost Fair value (in thousands) Due in one year or less $ 18,585 $ 18,549 Due after one year through three years 31,153 31,067 $ 49,738 $ 49,616 |
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | Our significant financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and 2015 were as follows: September 30, 2016 Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash equivalents (1) $ 60,139 $ — $ — $ 60,139 Marketable securities Certificates of deposit — 681 — 681 Commercial paper — 11,925 — 11,925 Corporate notes/bonds 34,601 — — 34,601 U.S. government agency securities — 2,409 — 2,409 Forward contracts — 260 — 260 $ 94,740 $ 15,275 $ — $ 110,015 Financial liabilities: Contingent consideration related acquisitions $ — $ — $ 19,570 $ 19,570 Forward contracts — 3,170 — 3,170 $ — $ 3,170 $ 19,570 $ 22,740 September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash equivalents (1) $ 91,216 $ — $ — $ 91,216 Forward contracts — 507 — 507 $ 91,216 $ 507 $ — $ 91,723 Financial liabilities: Contingent consideration related to acquisitions $ — $ — $ 13,000 $ 13,000 Forward contracts — 46 — 46 $ — $ 46 $ 13,000 $ 13,046 (1) Money market funds and time deposits. |
Changes in fair value of contingent consideration | Changes in the fair value of Level 3 contingent consideration liability associated with our acquisitions of ThingWorx, ColdLight and Kepware were as follows: Contingent Consideration (in thousands) ThingWorx ColdLight Kepware Total Balance at October 1, 2014 $ 15,191 $ — $ — $ 15,191 Contingent consideration at acquisition — 3,800 — 3,800 Change in fair value of contingent consideration 2,809 200 — 3,009 Payment of contingent consideration (9,000 ) — — (9,000 ) Balance at October 1, 2015 9,000 4,000 — 13,000 Contingent consideration at acquisition — — 16,900 16,900 Change in fair value of contingent consideration — 1,000 170 1,170 Payment of contingent consideration (9,000 ) (2,500 ) — (11,500 ) Balance at September 30, 2016 $ — $ 2,500 $ 17,070 $ 19,570 |
Financing Receivable Credit Quality Indicators | Our credit risk assessment for financing receivables was as follows: September 30, 2016 2015 (in thousands) S&P bond rating BBB- and above-Tier 1 $ 5,953 $ 16,841 Internal Credit Assessment-Tier 2 1,182 10,593 Internal Credit Assessment-Tier 3 — — Total financing receivables $ 7,135 $ 27,434 |
Earnings Per Share Basic And Diluted | The following table presents the calculation for both basic and diluted EPS: Year ended September 30, 2016 2015 2014 (in thousands, except per share data) Net income (loss) $ (54,465 ) $ 47,557 $ 160,194 Weighted average shares outstanding 114,612 114,775 118,094 Dilutive effect of employee stock options, restricted shares and restricted stock units — 1,237 1,890 Diluted weighted average shares outstanding 114,612 116,012 119,984 Basic earnings per share $ (0.48 ) $ 0.41 $ 1.36 Diluted earnings per share $ (0.48 ) $ 0.41 $ 1.34 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes restructuring charges reserve activity for the three years ended September 30, 2016 : Employee Severance and Related Benefits Facility Closures and Other Costs Consolidated Total (in thousands) Balance, October 1, 2013 $ 19,234 $ 295 $ 19,529 Charges to operations 27,918 488 28,406 Cash disbursements (20,334 ) (241 ) (20,575 ) Foreign currency impact (983 ) (7 ) (990 ) Balance, September 30, 2014 25,835 535 26,370 Charges to operations 41,997 1,412 43,409 Cash disbursements (52,882 ) (706 ) (53,588 ) Foreign currency impact (864 ) (73 ) (937 ) Balance, September 30, 2015 14,086 1,168 15,254 Charges to operations 74,929 1,344 76,273 Cash disbursements (53,966 ) (1,053 ) (55,019 ) Foreign currency impact 128 (28 ) 100 Balance, September 30, 2016 $ 35,177 $ 1,431 $ 36,608 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The total purchase price for our 2016 acquisitions was allocated to assets and liabilities acquired as follows: Purchase price allocation: Kepware Vuforia (in thousands) Goodwill $ 77,081 $ 23,316 Identifiable intangible assets 34,500 41,200 Cash 590 4,466 Other assets and liabilities, net 4,729 261 Total allocation of purchase price consideration 116,900 69,243 Less: cash acquired (590 ) (4,466 ) Total purchase price allocation, net of cash acquired 116,310 64,777 Less: contingent consideration (16,900 ) — Net cash used for acquisitions of businesses $ 99,410 $ 64,777 The total purchase price for ColdLight was allocated to assets and liabilities acquired as follows: Purchase price allocation: (in thousands) Goodwill $ 85,288 Identifiable intangible assets 17,620 Cash 1,313 Other assets and liabilities, net (516 ) Total allocation of purchase price consideration 103,705 Less: cash acquired (1,313 ) Total purchase price allocation, net of cash acquired 102,392 Less: contingent consideration (3,800 ) Net cash used to acquire ColdLight $ 98,592 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components Of Property And Equipment | Property and equipment consisted of the following: September 30, 2016 2015 (in thousands) Computer hardware and software $ 267,928 $ 246,756 Furniture and fixtures 20,742 18,370 Leasehold improvements 43,769 38,005 Gross property and equipment 332,439 303,131 Accumulated depreciation and amortization (265,326 ) (237,969 ) Net property and equipment $ 67,113 $ 65,162 |
Goodwill and Acquired Intangi31
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Acquired Intangible Assets | Goodwill and acquired intangible assets consisted of the following: September 30, 2016 September 30, 2015 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Goodwill (not amortized) $ 1,169,813 $ 1,069,041 Intangible assets with finite lives (amortized) (1): Purchased software $ 354,595 $ 199,192 $ 155,403 $ 284,257 $ 174,887 $ 109,370 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 355,698 206,515 149,183 349,938 174,017 175,921 Trademarks and trade names 19,007 13,323 5,684 18,534 12,759 5,775 Other 3,955 3,920 35 3,946 3,711 235 $ 756,132 $ 445,827 $ 310,305 $ 679,552 $ 388,251 $ 291,301 Total goodwill and acquired intangible assets $ 1,480,118 $ 1,360,342 (1) The weighted average useful lives of purchased software, capitalized software, customer lists and relationships, trademarks and trade names and other intangible assets with a remaining net book value are 9 years, 10 years, 10 years and 3 years, respectively. |
Schedule Of Movements in Goodwill by Reportable Segment | Changes in goodwill presented by reportable segment were as follows: Software Products Segment Services Segment Total (in thousands) Balance, October 1, 2014 $ 959,768 $ 52,759 $ 1,012,527 Axeda adjustment of purchase price from escrow (180 ) — (180 ) Acquisition of ColdLight 85,288 — 85,288 Foreign currency translation adjustments (28,463 ) (131 ) (28,594 ) Balance, September 30, 2015 $ 1,016,413 $ 52,628 $ 1,069,041 Acquisition of Vuforia 23,316 — 23,316 Acquisition of Kepware 77,081 — 77,081 Foreign currency translation adjustments 228 (6 ) 222 Balance, July 2, 2016 prior to reallocation $ 1,117,038 $ 52,622 $ 1,169,660 Solutions Group IoT Group Professional Services Total (in thousands) Balance, July 2, 2016 after reallocation $ 1,050,013 $ 90,053 $ 29,594 $ 1,169,660 Foreign currency translation adjustments 137 12 4 153 Balance, September 30, 2016 $ 1,050,150 $ 90,065 $ 29,598 $ 1,169,813 |
Amortization Of Intangible Assets | The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2016 , 2015 and 2014 was reflected in our Consolidated Statements of Operations as follows: Year ended September 30, 2016 2015 2014 (in thousands) Amortization of acquired intangible assets $ 33,198 $ 36,129 $ 32,127 Cost of software revenue 24,604 19,402 18,112 Total amortization expense $ 57,802 $ 55,531 $ 50,239 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary Of Income (Loss) Before Income Taxes | Our income (loss) before income taxes consisted of the following: Year ended September 30, 2016 2015 2014 (in thousands) Domestic $ (156,166 ) $ (110,867 ) $ 17,038 Foreign 88,974 137,392 169,074 Total income before income taxes $ (67,192 ) $ 26,525 $ 186,112 |
Schedule Of Provision For (Benefit From) Income Taxes | Our (benefit) provision for income taxes consisted of the following: Year ended September 30, 2016 2015 2014 (in thousands) Current: Federal $ 2,417 $ 3,907 $ 12,792 State 571 599 2,062 Foreign 28,467 23,823 31,010 31,455 28,329 45,864 Deferred: Federal 965 (20,809 ) (13,200 ) State 515 (566 ) (2,085 ) Foreign (45,662 ) (27,986 ) (4,661 ) (44,182 ) (49,361 ) (19,946 ) Total provision (benefit) for income taxes $ (12,727 ) $ (21,032 ) $ 25,918 |
Summary Of Federal Income Tax Rate And Effective Income Tax Rate | The reconciliation between the statutory federal income tax rate and our effective income tax rate is shown below: Year ended September 30, 2016 2015 2014 Statutory federal income tax rate (35 )% 35 % 35 % Change in valuation allowance 57 % 63 % (11 )% State income taxes, net of federal tax benefit — % 7 % 1 % Federal and state research and development credits (9 )% (8 )% — % Resolution of uncertain tax positions — % (11 )% — % Foreign rate differences (41 )% (213 )% (19 )% Foreign withholding tax 3 % 14 % 3 % U.S. permanent items 4 % 34 % 4 % Other, net 2 % — % 1 % Effective income tax rate (19 )% (79 )% 14 % |
Schedule Of Deferred Tax Assets And Liabilities | The significant temporary differences that created deferred tax assets and liabilities are shown below: September 30, 2016 2015 (in thousands) Deferred tax assets (1): Net operating loss carryforwards $ 100,033 $ 71,533 Foreign tax credits 18,041 15,962 Capitalized research and development expense 22,504 31,690 Pension benefits 14,348 11,009 Deferred revenue 65,145 71,399 Stock-based compensation 19,846 16,777 Other reserves not currently deductible 25,993 21,940 Amortization of intangible assets 54,069 62,227 Other tax credits 41,381 37,270 Depreciation 3,002 3,465 Capital loss carryforward 8,019 8,040 Deferred interest 7,622 3,557 Other 14,778 6,559 Gross deferred tax assets 394,781 361,428 Valuation allowance (235,503 ) (198,168 ) Total deferred tax assets 159,278 163,260 Deferred tax liabilities (1): Acquired intangible assets not deductible (78,663 ) (124,401 ) Pension prepayments (542 ) (395 ) Deferred revenue (2,039 ) (3,110 ) Other (2,092 ) (3,598 ) Total deferred tax liabilities (83,336 ) (131,504 ) Net deferred tax assets $ 75,942 $ 31,756 (1) See Note B. Recent Accounting Pronouncements-Deferred Taxes regarding a change in the balance sheet classification of our deferred taxes. |
Summary Of Valuation Allowance | The changes to the valuation allowance were primarily due to: Year ended September 30, 2016 2015 2014 (in millions) Valuation allowance beginning of year $ 198.2 $ 177.5 $ 156.5 Net release of valuation allowance (1) (3.1 ) (18.7 ) (18.1 ) Net increase/decrease in deferred tax assets with a full valuation allowance 39.8 39.4 14.1 Establish valuation allowance for acquired businesses — — 21.5 Establish valuation allowance in foreign jurisdictions 0.6 — 3.5 Valuation allowance end of year $ 235.5 $ 198.2 $ 177.5 (1) In 2016, this is attributable to the release in two foreign jurisdictions. In 2015, this is attributable to a reduction in deferred tax assets associated with our U.S. pension plan, both of which are described above and in 2014 the recognition of deferred tax liabilities recorded in connection with accounting for acquisitions. |
Schedule Of Unrecognized Tax Benefit | Year ended September 30, Unrecognized tax benefits 2016 2015 2014 (in millions) Unrecognized tax benefit beginning of year $ 14.1 $ 15.0 $ 13.7 Tax positions related to current year: Additions 1.0 1.3 2.2 Tax positions related to prior years: Additions 0.4 0.8 0.3 Reductions — (3.0 ) (0.1 ) Settlements — — (0.6 ) Statute expirations — — (0.5 ) Unrecognized tax benefit end of year $ 15.5 $ 14.1 $ 15.0 |
Summary Of Income Tax Examinations Years | As of September 30, 2016 , we remained subject to examination in the following major tax jurisdictions for the tax years indicated: Major Tax Jurisdiction Open Years United States 2014 through 2016 Germany 2011 through 2016 France 2013 through 2016 Japan 2011 through 2016 Ireland 2012 through 2016 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | As of September 30, 2016 and 2015 , we had the following long-term borrowing obligations: September 30, 2016 2015 (in thousands) 6.000% Senior notes due 2024 $ 500,000 $ — Credit facility-revolver 258,125 193,125 Credit facility-term loan — 475,000 Total debt 758,125 668,125 Unamortized debt issuance costs (10,709 ) (7,587 ) Total debt, net of issuance costs $ 747,416 $ 660,538 Reported as Current portion of long-term debt $ — $ 50,000 Long-term debt 758,125 618,125 Total debt $ 758,125 $ 668,125 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | At September 30, 2016 , our future minimum lease payments under noncancellable operating leases are as follows: Year ending September 30, (in thousands) 2017 $ 39,994 2018 34,347 2019 27,150 2020 22,804 2021 14,943 Thereafter 16,776 Total minimum lease payments $ 156,014 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Stock Based Compensation Expense | The following table shows total stock-based compensation expense recorded from our stock-based awards as reflected in our Consolidated Statements of Operations: Year ended September 30, 2016 2015 2014 (in thousands) Cost of software revenue $ 5,398 $ 4,296 $ 4,059 Cost of professional services revenue 5,393 5,871 6,351 Sales and marketing 14,659 14,189 13,441 Research and development 10,174 11,623 10,119 General and administrative 30,372 14,203 16,919 Total stock-based compensation expense $ 65,996 $ 50,182 $ 50,889 |
Restricted Stock And Restricted Stock Unit Grants | Restricted Stock Units Restricted stock unit grants TSR Units (1) Performance-based RSUs (2) Service-based RSUs (2) (Number of Units in thousands) Year ended September 30, 2016 326 343 1,815 (1) The TSR units were granted to our executive officers pursuant to the terms described below. (2) The service-based RSUs were issued to employees, our executive officers, our directors and a consultant. Executive officers may earn up to one or, for our CEO, two times the number of time-based RSUs (up to a maximum of 343 thousand shares) if certain performance conditions are met. Of the service-based RSUs, approximately 64 thousand shares will vest in one installment on or about the anniversary of the date of grant. Approximately 121 thousand shares will vest in two substantially equal annual installments on or about the anniversary of the date of grant. All other service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. The performance-based RSUs will vest in three substantially equal installments on the later of November 15, 2016, November 15, 2017 and November 15, 2018, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved. |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The significant assumptions used in the Monte Carlo simulation model were as follows: Average volatility of peer group 28.1 % Risk free interest rate 1.05 % Dividend yield — % |
Value Of Stock Option And Stock-Based Award Activity | Year ended September 30, 2016 2015 2014 Value of stock option and stock-based award activity (in thousands) Total intrinsic value of stock options exercised $ 88 $ 182 $ 2,040 Total fair value of restricted stock unit awards vested $ 63,655 $ 84,189 $ 79,660 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Activity | Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value as of September 30, 2016 Restricted stock unit activity for the year ended September 30, 2016 (in thousands except grant date fair value data) Balance of nonvested outstanding restricted stock units October 1, 2015 3,654 $ 33.64 Granted 2,484 $ 37.25 Vested (1,818 ) $ 30.10 Forfeited or not earned (544 ) $ 36.49 Balance of nonvested outstanding restricted stock units September 30, 2016 3,776 $ 37.30 $ 167,314 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |
Accounting For The Pension Plans | The following table presents the actuarial assumptions used in accounting for the pension plans: U.S. Plan International Plans 2016 2015 2014 2016 2015 2014 Weighted average assumptions used to determine benefit obligations at September 30 measurement date: Discount rate — % — % 3.80 % 1.3 % 2.2 % 2.4 % Rate of increase in future compensation — % — % — % 2.8 % 3.0 % 3.0 % Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30: Discount rate — % 3.80 % 4.90 % 2.2 % 2.4 % 3.3 % Rate of increase in future compensation — % — % — % 3.0 % 3.0 % 3.0 % Rate of return on plan assets — % 1.35 % 7.25 % 5.7 % 5.8 % 5.7 % |
Components Of Net Periodic Pension Cost | The actuarially computed components of net periodic pension cost recognized in our Consolidated Statements of Operations for each year are shown below: U.S. Plan International Plans 2016 2015 2014 2016 2015 2014 (in thousands) Interest cost of projected benefit obligation $ — $ 4,591 $ 5,461 $ 1,374 $ 1,828 $ 2,442 Service cost — — — 1,599 1,466 1,659 Expected return on plan assets — (1,364 ) (7,151 ) (3,305 ) (3,364 ) (2,506 ) Amortization of prior service cost — — — (5 ) (4 ) (5 ) Recognized actuarial loss — 2,577 2,213 2,292 1,815 1,181 Settlement loss — 66,332 — — — — Net periodic pension cost $ — $ 72,136 $ 523 $ 1,955 $ 1,741 $ 2,771 |
Change In Benefit Obligation And Plan Assets | The following tables display the change in benefit obligation and the change in the plan assets and funded status of the plans as well as the amounts recognized in our Consolidated Balance Sheets: U.S. Plan International Plans Total Year ended September 30, 2016 2015 2016 2015 2016 2015 (in thousands) Change in benefit obligation: Projected benefit obligation—beginning of year $ — $ 134,453 $ 78,188 $ 84,106 $ 78,188 $ 218,559 Service cost — — 1,599 1,466 1,599 1,466 Interest cost — 4,591 1,374 1,828 1,374 6,419 Actuarial loss — 1,606 10,556 1,988 10,556 3,594 Foreign exchange impact — — 2,431 (9,515 ) 2,431 (9,515 ) Participant contributions — — 147 198 147 198 Benefits paid — (5,300 ) (1,600 ) (1,883 ) (1,600 ) (7,183 ) Settlements — (135,350 ) — — — (135,350 ) Projected benefit obligation—end of year $ — $ — $ 92,695 $ 78,188 $ 92,695 $ 78,188 Change in plan assets and funded status: Plan assets at fair value—beginning of year $ — $ 112,859 $ 57,961 $ 44,491 $ 57,961 $ 157,350 Actual return on plan assets — 2,316 1,742 (438 ) 1,742 1,878 Employer contributions — 25,475 1,978 21,225 1,978 46,700 Participant contributions — — 147 198 147 198 Foreign exchange impact — — 1,707 (5,632 ) 1,707 (5,632 ) Settlements — (135,350 ) — — — (135,350 ) Benefits paid — (5,300 ) (1,600 ) (1,883 ) (1,600 ) (7,183 ) Plan assets at fair value—end of year — — 61,935 57,961 61,935 57,961 Projected benefit obligation—end of year — — 92,695 78,188 92,695 78,188 Underfunded status $ — $ — $ (30,760 ) $ (20,227 ) $ (30,760 ) $ (20,227 ) Accumulated benefit obligation—end of year $ — $ — $ 88,768 $ 74,928 $ 88,768 $ 74,928 Amounts recognized in the balance sheet: Non-current liability $ — $ — $ (30,760 ) $ (20,227 ) $ (30,760 ) $ (20,227 ) Current liability $ — $ — $ — $ — $ — $ — Amounts in accumulated other comprehensive loss: Unrecognized actuarial loss $ — $ — $ 38,667 $ 28,339 $ 38,667 $ 28,339 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table shows change in accumulated other comprehensive loss: U.S. Plan International Plans Total Year ended September 30, 2016 2015 2016 2015 2016 2015 (in thousands) Accumulated other comprehensive loss- beginning of year $ — $ 68,256 $ 28,339 $ 27,669 $ 28,339 $ 95,925 Recognized during year - net actuarial (losses) — (2,577 ) (2,288 ) (1,811 ) (2,288 ) (4,388 ) Occurring during year - settlement loss — (66,332 ) — — — (66,332 ) Occurring during year - net actuarial losses — 653 12,119 5,792 12,119 6,445 Foreign exchange impact — — 497 (3,311 ) 497 (3,311 ) Accumulated other comprehensive loss- end of year $ — $ — $ 38,667 $ 28,339 $ 38,667 $ 28,339 |
Percentage Of Total Plan Assets | The following table shows the percentage of total plan assets for each major category of plan assets: International Plans September 30, 2016 2015 Asset category: Equity securities 49% 53% Fixed income securities 30% 32% Commodities 4% —% Insurance company 16% 13% Cash 1% 2% 100% 100% |
Expected Future Benefit Payments | As of September 30, 2016 , benefit payments expected to be paid over the next ten years are outlined in the following table: Future Benefit Payments (in thousands) Year ending September 30, 2017 $ 1,899 2018 2,314 2019 2,566 2020 2,861 2021 3,175 2022 to 2026 22,034 |
International Plan Assets [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value Of Plan Assets | September 30, 2016 Level 1 Level 2 Level 3 Total (in thousands) International plan assets: Fixed income securities: Government $ 8,518 $ — $ — $ 8,518 Europe corporate investment grade 10,218 — — 10,218 Europe large capitalization stocks 30,615 — — 30,615 Commodities 2,709 — — 2,709 Insurance company funds (1) — 9,578 — 9,578 Cash 297 — — 297 $ 52,357 $ 9,578 $ — $ 61,935 September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) International plan assets: Fixed income securities: Government $ 11,086 $ — $ — $ 11,086 Europe corporate investment grade 7,487 — — 7,487 Europe large capitalization stocks 30,887 — — 30,887 Insurance company funds (1) — 7,668 — 7,668 Cash 833 — — 833 $ 50,293 $ 7,668 $ — $ 57,961 (1) These investments are comprised primarily of funds invested with an insurance company in Japan with a guaranteed rate of return. The insurance company invests these assets primarily in government and corporate bonds. |
Derivative Financial Instrume37
Derivative Financial Instruments Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts of Outstanding Forward Contracts | As of September 30, 2016 and 2015 , we had outstanding forward contracts designated as cash flow hedges with notional amounts equivalent to the following: Currency Hedged September 30, September 30, (in thousands) Euro / U.S. Dollar $ 26,181 $ — Japanese Yen / U.S. Dollar 8,800 — SEK / U.S. Dollar 4,078 — Total $ 39,059 $ — As of September 30, 2016 and 2015 , we had outstanding forward contracts for derivatives not designated as hedging instruments with notional amounts equivalent to the following: September 30, Currency Hedged 2016 2015 (in thousands) Canadian/U.S. Dollar $ 14,685 $ 17,448 Euro/U.S. Dollar 174,120 82,917 British Pound/Euro 1,382 9,409 Israeli Sheqel/U.S. Dollar 7,271 4,607 Japanese Yen/Euro 32,782 25,133 Japanese Yen/U.S. Dollar 6,716 — Swiss Franc/U.S. Dollar 730 5,149 All other 11,848 12,592 Total $ 249,534 $ 157,255 |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table shows the effect of the our derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the twelve months ended September 30, 2016 (in thousands): Derivatives Designated as Hedging Instruments Gain or (Loss)Recognized in OCI-Effective Portion Location of Gain or (Loss) Reclassified from OCI into Income-Effective Portion Gain or (Loss) Reclassified from OCI into Income-Effective Portion Location of Gain or (Loss) Recognized-Ineffective Portion Gain or (Loss) Recognized-Ineffective Portion Twelve Months Ended Twelve Months Ended Twelve Months Ended September 30, September 30, September 30, Forward Contracts $ (3,859 ) Software Revenue $ (2,436 ) Other Income (Expense) $ (24 ) The following table shows the effect of our non-designated hedges in the Consolidated Statements of Operations for the twelve months ended September 30, 2016 and 2015 : Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged) Twelve months ended September 30, September 30, September 30, (in thousands) Forward Contracts Other Income (Expense) $ (883 ) $ 615 $ (3,769 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets: Fair Value of Derivatives Designated As Hedging Instruments Fair Value of Derivatives Not Designated As Hedging Instruments September 30, September 30, September 30, September 30, (in thousands) (in thousands) Derivative assets (a): Forward Contracts $ 44 $ — $ 216 $ 507 Derivative liabilities (b): Forward Contracts $ 1,477 $ — $ 1,693 $ 46 (a) All derivative assets are recorded in “other current assets” in the Consolidated Balance Sheets. (b) All derivative liabilities are recorded in "accrued expenses and other current liabilities" in the Consolidated Balance Sheets. |
Offsetting Assets [Table Text Block] | The following table sets forth the offsetting of derivative assets as of September 30, 2016 : Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets September 30, 2016 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 (in thousands) Forward Contracts $ 260 $ — $ 260 $ (260 ) $ — $ — |
Offsetting Liabilities [Table Text Block] | The following table sets forth the offsetting of derivative liabilities as of September 30, 2016 : Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets September 30, 2016 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 (in thousands) Forward Contracts $ 3,170 $ — $ 3,170 $ (260 ) $ — $ 2,910 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Operating Segments [Member] | |
Segment Reporting Information [Line Items] | |
Revenue And Operating Income | Year ended September 30, 2016 2015 2014 (in thousands) Solutions Group Revenue $ 871,225 $ 980,274 $ 1,073,426 Direct costs 186,174 224,042 244,020 Profit 685,051 756,232 829,406 IoT Group Revenue 72,371 49,249 4,815 Direct costs 83,747 28,998 8,534 Profit (loss) (11,376 ) 20,251 (3,719 ) Professional Services Revenue 196,937 225,719 278,726 Direct costs 165,325 193,397 237,689 Profit 31,612 32,322 41,037 Total segment revenue 1,140,533 1,255,242 1,356,967 Total segment costs 435,246 446,437 490,243 Total segment profit 705,287 808,805 866,724 Other unallocated operating expenses (1) 666,028 723,780 641,742 Restructuring charges 76,273 43,409 28,406 Total operating income (loss) (37,014 ) 41,616 196,576 Interest and other expense, net 30,178 15,091 10,464 Income (loss) before income taxes $ (67,192 ) $ 26,525 $ 186,112 (1) The Solutions Group segment includes depreciation of $5.4 million , $5.6 million and $5.7 million in 2016, 2015 and 2014, respectively. The IoT Group segment includes depreciation of $1.6 million , $1.0 million and $0.1 million in 2016, 2015 and 2014, respectively. The Professional Services segment includes depreciation of $2.0 million , $2.2 million and $2.3 million in 2016, 2015 and 2014, respectively. Unallocated departments includes depreciation of $19.7 million , $20.1 million and $19.0 million in 2016, 2015 and 2014, respectively. |
Products and Services Segments [Member] | |
Segment Reporting Information [Line Items] | |
Revenue And Operating Income | Year ended September 30, 2016 2015 2014 (in thousands) CAD $ 462,307 $ 511,582 $ 581,508 PLM 456,285 524,741 599,312 SLM 141,644 166,060 170,980 IoT 80,297 52,859 5,167 Total revenue $ 1,140,533 $ 1,255,242 $ 1,356,967 |
Geographical Segments [Member] | |
Segment Reporting Information [Line Items] | |
Revenue And Operating Income | Revenue and long-lived tangible assets for the geographic regions in which we operate is presented below. Year ended September 30, 2016 2015 2014 (in thousands) Revenue: Americas (1) $ 487,594 $ 530,311 $ 558,671 Europe (2) 424,268 467,805 528,090 Pacific Rim 123,766 139,165 148,151 Japan 104,905 117,961 122,055 Total revenue $ 1,140,533 $ 1,255,242 $ 1,356,967 September 30, 2016 2015 2014 (in thousands) Long-lived tangible assets: Americas (3) $ 48,281 $ 47,509 $ 51,027 Europe 6,915 7,424 7,020 Asia-Pacific 11,917 10,229 9,736 Total long-lived tangible assets $ 67,113 $ 65,162 $ 67,783 (1) Includes revenue in the United States totaling $463.1 million , $500.6 million and $518.7 million for 2016 , 2015 and 2014 , respectively. (2) Includes revenue in Germany totaling $167.2 million , $177.1 million and $200.3 million for 2016 , 2015 and 2014 , respectively. (3) Substantially all of the Americas long-lived tangible assets are located in the United States. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Schedule Of Restricted Units Granted | TSR units Performance-Based RSUs Time-Based RSUs (in thousands) Maximum number of RSUs eligible to vest 495 316 711 Intrinsic value on grant date based on the maximum number of RSUs eligible to vest $ 23,482 $ 14,991 $ 33,731 |
Description of Business and B40
Description of Business and Basis of Presentation Reclassification (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016USD ($)revenue_category | Sep. 30, 2015USD ($)revenue_category | Sep. 30, 2014USD ($)revenue_category | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Revenue, Net | $ 1,140,533 | $ 1,255,242 | $ 1,356,967 |
Number of Revenue Categories | revenue_category | 4 | 3 | 3 |
Number of Cost of Revenue Categories | revenue_category | 2 | 3 | 3 |
Perpetual license | $ 173,467 | $ 282,760 | $ 362,602 |
Subscription | 118,322 | 65,239 | 27,137 |
Cost of software revenue | $ 155,439 | 135,992 | 129,708 |
From License and Subscription to Perpetual License [Member] [Domain] | Restatement Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Perpetual license | 282,800 | 362,600 | |
From License and Subscription to Subscription License [Member] [Domain] | Restatement Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Subscription | 65,200 | 27,100 | |
From License and Subscription to Software [Member] [Domain] | Restatement Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cost of software revenue | 53,200 | 45,000 | |
From Support to Software [Member] [Domain] | Restatement Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cost of software revenue | 82,800 | 84,700 | |
From General and Administration to Selling and Marketing [Member] | Restatement Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cost of software revenue | 8,000 | $ 10,000 | |
Out of Period Correction [Member] | Restatement Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Revenue, Net | $ 6,400 |
Description of Business and B41
Description of Business and Basis of Presentation Segment Information (Details) - segments | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Apr. 02, 2016 | Sep. 30, 2016 | |
Segment Reporting [Abstract] | |||
Number of reportable segments | 3 | 2 | 3 |
Summary Of Significant Accoun42
Summary Of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||||
Jul. 02, 2016 | Jan. 02, 2016customers | Jan. 03, 2015customers | Dec. 28, 2013customers | Sep. 30, 2016USD ($)primary_sourcecustomersmo | Sep. 30, 2015USD ($)customers | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cost Method Investments | $ 11,600,000 | $ 11,000,000 | ||||||
Deferred tax assets | $ 0 | $ 36,803,000 | ||||||
Maximum payment terms on software purchases for credit-worthy customers (in months) | mo | 24 | |||||||
Subscription revenue, number of primary sources | primary_source | 2 | |||||||
Trade Accounts Receivable Major Number of Customers | customers | 0 | 0 | ||||||
Revenue Major Number of Customers | customers | 0 | 0 | 0 | |||||
Ceiling percentage of revenue for major customer | 10.00% | |||||||
Contingent consideration | $ 19,570,000 | $ 13,000,000 | $ 15,191,000 | |||||
Allowance for doubtful accounts receivable | 1,000,000 | 1,000,000 | 1,600,000 | $ 3,000,000 | ||||
Accounts receivable written-off, net of recoveries | 300,000 | 800,000 | 600,000 | |||||
Bad debt expense including general and administrative expense | 300,000 | 200,000 | (800,000) | |||||
Financing receivables | 7,135,000 | 27,434,000 | ||||||
Financing receivables past due | 100,000 | 500,000 | ||||||
Sale of finance receivable | 0 | 3,000,000 | 24,500,000 | |||||
Advertising expense | 2,100,000 | 1,100,000 | 2,200,000 | |||||
Development costs for software | 0 | 0 | 0 | |||||
Capitalized software in connection with acquisition | 69,900,000 | 13,600,000 | ||||||
Cumulative translation adjustment gains (loss) | (71,200,000) | (71,600,000) | ||||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | (38,667,000) | (28,339,000) | ||||||
Pension benefits net of tax | (27,400,000) | (20,100,000) | ||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Before Tax | 1,400,000 | |||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 1,200,000 | 0 | ||||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (100,000) | 0 | ||||||
Uncollectible financing receivables written-off | 0 | 0 | $ 0 | |||||
Deferred tax liabilities | 0 | 1,622,000 | ||||||
Accounts Receivable [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Financing receivables, current | 7,100,000 | 21,800,000 | ||||||
Other Assets [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Billed but uncollected support and subscription receivable | 126,300,000 | 129,300,000 | ||||||
Long-term accounts receivable from customers for contracts with extended payment terms | 0 | 5,600,000 | ||||||
Standard & Poor's, BBB-1 Rating and Above-Tier 1 [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Financing receivables | 5,953,000 | 16,841,000 | ||||||
Internally Assigned Grade, Tier 2 [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Financing receivables | 1,182,000 | 10,593,000 | ||||||
Internally Assigned Grade, Tier 3 [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Financing receivables | $ 0 | 0 | ||||||
Minimum [Member] | Computer Hardware And Software [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 3 years | |||||||
Minimum [Member] | Furniture And Fixtures [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 3 years | |||||||
Maximum [Member] | Purchased Software [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 11 years | |||||||
Maximum [Member] | Customer Lists [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 12 years | |||||||
Maximum [Member] | Trademarks And Trade Names [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 12 years | |||||||
Maximum [Member] | Computer Hardware And Software [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 5 years | |||||||
Maximum [Member] | Furniture And Fixtures [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization period (in years) | 8 years | |||||||
Foreign Exchange Forward [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Derivative maturity (in months) | 3 months | |||||||
Unallocated Financing Receivables [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Reserve for credit losses | $ 0 | $ 0 | ||||||
Current portion [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Contingent consideration | 11,800,000 | |||||||
Non-current portion [Member] [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Contingent consideration | $ 7,800,000 | |||||||
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Derivative, Remaining Maturity | 13 months |
Summary Of Significant Accoun43
Summary Of Significant Accounting Policies (Deferred Revenue) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 413,657 | $ 386,850 |
Deferred Subscription Revenue Member [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 102,847 | 37,478 |
Deferred Support Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 297,684 | 331,793 |
Deferred Professional Service Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 8,975 | 12,639 |
Deferred License and Subscription Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 4,151 | $ 4,940 |
Summary Of Significant Accoun44
Summary Of Significant Accounting Policies (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financial assets: | ||||
Cash equivalents | [1] | $ 60,139 | $ 91,216 | |
Available-for-sale Securities | 49,616 | |||
Forward contracts | 260 | 507 | ||
Financial assets | 110,015 | 91,723 | ||
Financial liabilities: | ||||
Contingent consideration | 19,570 | 13,000 | $ 15,191 | |
Forward contracts | 3,170 | 46 | ||
Financial liabilities | 22,740 | 13,046 | ||
Level 1 [Member] | ||||
Financial assets: | ||||
Cash equivalents | [1] | 60,139 | 91,216 | |
Forward contracts | 0 | 0 | ||
Financial assets | 94,740 | 91,216 | ||
Financial liabilities: | ||||
Contingent consideration | 0 | 0 | ||
Forward contracts | 0 | 0 | ||
Financial liabilities | 0 | 0 | ||
Level 2 [Member] | ||||
Financial assets: | ||||
Cash equivalents | 0 | 0 | ||
Forward contracts | 260 | 507 | ||
Financial assets | 15,275 | 507 | ||
Financial liabilities: | ||||
Contingent consideration | 0 | 0 | ||
Forward contracts | 3,170 | 46 | ||
Financial liabilities | 3,170 | 46 | ||
Level 3 [Member] | ||||
Financial assets: | ||||
Cash equivalents | 0 | 0 | ||
Forward contracts | 0 | 0 | ||
Financial assets | 0 | 0 | ||
Financial liabilities: | ||||
Contingent consideration | 19,570 | 13,000 | ||
Forward contracts | 0 | 0 | ||
Financial liabilities | 19,570 | $ 13,000 | ||
Certificates of Deposit [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 681 | |||
Certificates of Deposit [Member] | Level 1 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 0 | |||
Certificates of Deposit [Member] | Level 2 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 681 | |||
Certificates of Deposit [Member] | Level 3 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 0 | |||
Commercial Paper [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 11,925 | |||
Commercial Paper [Member] | Level 1 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 0 | |||
Commercial Paper [Member] | Level 2 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 11,925 | |||
Commercial Paper [Member] | Level 3 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 0 | |||
Corporate Bond Securities [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 34,601 | |||
Corporate Bond Securities [Member] | Level 1 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 34,601 | |||
Corporate Bond Securities [Member] | Level 2 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 0 | |||
Corporate Bond Securities [Member] | Level 3 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 0 | |||
US Government Agencies Debt Securities [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 2,409 | |||
US Government Agencies Debt Securities [Member] | Level 1 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 0 | |||
US Government Agencies Debt Securities [Member] | Level 2 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | 2,409 | |||
US Government Agencies Debt Securities [Member] | Level 3 [Member] | ||||
Financial assets: | ||||
Available-for-sale Securities | $ 0 | |||
[1] | Money market funds and time deposits. |
Summary Of Significant Accoun45
Summary Of Significant Accounting Policies (Earnings Per Share Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 02, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accounting Policies [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,700 | |||
Net income | $ (54,465) | $ 47,557 | $ 160,194 | |
Weighted average shares outstanding (in shares) | 114,612 | 114,775 | 118,094 | |
Dilutive effect of employee stock options, restricted shares and restricted stock units (in shares) | 0 | 1,237 | 1,890 | |
Diluted weighted average shares outstanding (in shares) | 114,612 | 116,012 | 119,984 | |
Basic earnings (loss) per share (in USD per share) | $ (0.48) | $ 0.41 | $ 1.36 | |
Diluted earnings (loss) per share (in USD per share) | $ (0.48) | $ 0.41 | $ 1.34 |
Summary Of Significant Accoun46
Summary Of Significant Accounting Policies (Related Party Transaction) (Details) - Director [Member] - Restricted Stock [Member] - USD ($) $ in Thousands | Nov. 27, 2013 | Mar. 04, 2015 |
Related Party Transaction [Line Items] | ||
Granted, value | $ 200 | |
Shares granted | 6,213 | |
Total fee paid | $ 240 |
Summary Of Significant Accoun47
Summary Of Significant Accounting Policies (Marketable Securities - Amortized Cost and Fair Value) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | $ 49,738 |
Gross unrealized gains | 0 |
Gross unrealized losses | (122) |
Fair value | 49,616 |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis | 18,585 |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 18,549 |
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Amortized Cost Basis | 31,153 |
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Fair Value | 31,067 |
Certificates of Deposit [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 681 |
Gross unrealized gains | 0 |
Gross unrealized losses | 0 |
Fair value | 681 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 11,945 |
Gross unrealized gains | 0 |
Gross unrealized losses | (20) |
Fair value | 11,925 |
Corporate Bond Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 34,701 |
Gross unrealized gains | 0 |
Gross unrealized losses | (100) |
Fair value | 34,601 |
US Government Agencies Debt Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 2,411 |
Gross unrealized gains | 0 |
Gross unrealized losses | (2) |
Fair value | $ 2,409 |
Summary Of Significant Accoun48
Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Contingent Consideration Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||
Contingent consideration, beginning balance | $ 13,000 | $ 15,191 |
Contingent consideration at acquisition | 16,900 | 3,800 |
Change in fair value of contingent consideration | 1,170 | 3,009 |
Payment of contingent consideration | (11,500) | (9,000) |
Contingent consideration, ending balance | 19,570 | 13,000 |
Acquired entity name-ThingWorx [Member] | ||
Business Acquisition [Line Items] | ||
Contingent consideration, beginning balance | 9,000 | 15,191 |
Contingent consideration at acquisition | 0 | 0 |
Change in fair value of contingent consideration | 0 | 2,809 |
Payment of contingent consideration | (9,000) | (9,000) |
Contingent consideration, ending balance | 0 | 9,000 |
Acquired entity name: ColdLight [Member] | ||
Business Acquisition [Line Items] | ||
Contingent consideration, beginning balance | 4,000 | 0 |
Contingent consideration at acquisition | 0 | 3,800 |
Change in fair value of contingent consideration | 1,000 | 200 |
Payment of contingent consideration | (2,500) | 0 |
Contingent consideration, ending balance | 2,500 | 4,000 |
Acquired entity name: Kepware [Member] | ||
Business Acquisition [Line Items] | ||
Contingent consideration, beginning balance | 0 | 0 |
Contingent consideration at acquisition | 16,900 | 0 |
Change in fair value of contingent consideration | 170 | 0 |
Payment of contingent consideration | 0 | 0 |
Contingent consideration, ending balance | $ 17,070 | $ 0 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014USD ($)employees | Jul. 02, 2016employee | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($)employee | Sep. 30, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 76,273 | $ 43,409 | $ 28,406 | ||
Number of employees associated with costs | employees | 283 | ||||
Employee Severance And Related Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 74,929 | 41,997 | 27,918 | ||
Facility Closures and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1,344 | $ 1,412 | 488 | ||
Restructuring Plan 2016 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 76,900 | ||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 810 | ||||
Restructuring Plan 2016 | Employee Severance And Related Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 74,900 | ||||
Restructuring Plan 2016 | Facility Closures and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1,300 | ||||
Restructuring Plan 2015 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 600 | ||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 411 | ||||
Restructuring Plan 2015 | Employee Severance And Related Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 42,000 | ||||
Restructuring Plan 2015 | Facility Closures and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1,400 | ||||
Operating Leases, Rent Expense, Minimum Rentals | 2,300 | ||||
Operating Leases, Sublease Revenue | $ 900 | ||||
Restructuring Plan 2014 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 26,800 | ||||
Restructuring Plan 2013 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 1,600 | ||||
Maximum [Member] | Restructuring Plan 2016 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 80,000 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | $ 15,254 | $ 26,370 | $ 19,529 |
Restructuring charges | 76,273 | 43,409 | 28,406 |
Cash disbursements | (55,019) | (53,588) | (20,575) |
Foreign currency impact | 100 | (937) | (990) |
Balance, end of period | 36,608 | 15,254 | 26,370 |
Employee Severance And Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | 14,086 | 25,835 | 19,234 |
Restructuring charges | 74,929 | 41,997 | 27,918 |
Cash disbursements | (53,966) | (52,882) | (20,334) |
Foreign currency impact | 128 | (864) | (983) |
Balance, end of period | 35,177 | 14,086 | 25,835 |
Facility Closures and Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | 1,168 | 535 | 295 |
Restructuring charges | 1,344 | 1,412 | 488 |
Cash disbursements | (1,053) | (706) | (241) |
Foreign currency impact | (28) | (73) | (7) |
Balance, end of period | $ 1,431 | $ 1,168 | $ 535 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2016USD ($) | Jul. 31, 2015USD ($) | Apr. 02, 2016USD ($) | Mar. 29, 2014USD ($) | Sep. 30, 2016USD ($)employee | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jan. 12, 2016USD ($) | Nov. 03, 2015USD ($) | May 07, 2015USD ($) | |
Acquisition-related cost | $ 3,500 | $ 8,900 | $ 12,700 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 165,802 | 98,411 | 323,525 | |||||||
Payment of contingent consideration | 11,500 | 9,000 | ||||||||
Payments to Business Combination Contingent Consideration Financing Activities | 10,621 | 4,323 | 0 | |||||||
Credit facility, borrowings outstanding | 758,125 | 618,125 | ||||||||
Revenue, Net | 1,140,533 | 1,255,242 | 1,356,967 | |||||||
Costs and Expenses | 851,882 | 878,892 | 786,708 | |||||||
ThingWorx, Inc. [Member] | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 111,500 | |||||||||
Acquisition of businesses, net cash acquired | 100 | |||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 18,000 | |||||||||
Payment of contingent consideration | $ 9,000 | $ 9,000 | ||||||||
Payments to Business Combination Contingent Consideration Financing Activities | 8,700 | 4,300 | ||||||||
Payments to Business Combination Contingent Consideration | $ 300 | $ 4,700 | ||||||||
2014 Acquisitions [Member] | ||||||||||
Deferred Tax Liabilities, Net | 21,600 | |||||||||
Acquired entity name: ColdLight [Member] | ||||||||||
Contingent consideration | 2,500 | $ 3,800 | ||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 5,000 | |||||||||
Payment of contingent consideration | 2,500 | 0 | ||||||||
Goodwill acquired | 85,288 | |||||||||
Finite-lived Intangible Assets Acquired | 17,620 | |||||||||
Payments to Business Combination Contingent Consideration Financing Activities | 1,900 | |||||||||
Payments to Business Combination Contingent Consideration | 600 | |||||||||
Axeda and Atego Acquisitions [Member] | ||||||||||
Deferred Tax Liabilities, Net | 12,600 | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 212,000 | |||||||||
Acquisition of businesses, net cash acquired | 13,100 | |||||||||
Goodwill acquired | 157,700 | |||||||||
Finite-lived Intangible Assets Acquired | $ 86,900 | |||||||||
Acquired entity name: Kepware [Member] | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 99,410 | 98,592 | ||||||||
Acquisition of businesses, net cash acquired | 590 | 1,313 | ||||||||
Contingent consideration | 17,100 | $ 16,900 | ||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 18,000 | |||||||||
Estimated contingent consideration payment in 2017 | 9,600 | |||||||||
Payment of contingent consideration | 0 | 0 | ||||||||
Goodwill acquired | $ 77,081 | 77,081 | ||||||||
Finite-lived Intangible Assets Acquired | 34,500 | |||||||||
Business acquisition, acquired net assets excluding goodwill, intangible assets and cash | 4,729 | |||||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, Low | 16,900 | 3,800 | ||||||||
Revenue, Net | 16,000 | |||||||||
Costs and Expenses | 15,000 | |||||||||
Acquired entity name: Vuforia [Member] | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 64,777 | |||||||||
Acquisition of businesses, net cash acquired | 4,466 | |||||||||
Goodwill acquired | 23,316 | |||||||||
Finite-lived Intangible Assets Acquired | 41,200 | |||||||||
Business acquisition, acquired net assets excluding goodwill, intangible assets and cash | $ 261 | |||||||||
Weighted average useful lives of acquired intangible assets | 6 years | |||||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, Low | $ 0 | |||||||||
Number of employees in acquired entity | employee | 80 | |||||||||
Purchased Software [Member] | ||||||||||
Weighted average useful lives of acquired intangible assets | 9 years | |||||||||
Purchased Software [Member] | Acquired entity name: ColdLight [Member] | ||||||||||
Finite-lived Intangible Assets Acquired | 13,600 | |||||||||
Purchased Software [Member] | Acquired entity name: Kepware [Member] | ||||||||||
Finite-lived Intangible Assets Acquired | $ 28,700 | |||||||||
Weighted average useful lives of acquired intangible assets | 10 years | |||||||||
Customer Lists [Member] | ||||||||||
Weighted average useful lives of acquired intangible assets | 10 years | |||||||||
Customer Lists [Member] | Acquired entity name: ColdLight [Member] | ||||||||||
Finite-lived Intangible Assets Acquired | 3,500 | |||||||||
Customer Lists [Member] | Acquired entity name: Kepware [Member] | ||||||||||
Finite-lived Intangible Assets Acquired | $ 5,200 | |||||||||
Weighted average useful lives of acquired intangible assets | 10 years | |||||||||
Trademarks and Trade Names [Member] | Acquired entity name: ColdLight [Member] | ||||||||||
Finite-lived Intangible Assets Acquired | 500 | |||||||||
Trademarks and Trade Names [Member] | Acquired entity name: Kepware [Member] | ||||||||||
Finite-lived Intangible Assets Acquired | $ 600 | |||||||||
Weighted average useful lives of acquired intangible assets | 6 years | |||||||||
Line of Credit [Member] | ||||||||||
Credit facility, borrowings outstanding | $ 258,125 | $ 193,125 | ||||||||
Line of Credit [Member] | Acquired entity name: Kepware [Member] | ||||||||||
Credit facility, borrowings outstanding | $ 100,000 | |||||||||
Line of Credit [Member] | Acquired entity name: Vuforia [Member] | ||||||||||
Credit facility, borrowings outstanding | $ 50,000 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Computer hardware and software | $ 267,928 | $ 246,756 | |
Furniture and fixtures | 20,742 | 18,370 | |
Leasehold improvements | 43,769 | 38,005 | |
Gross property and equipment | 332,439 | 303,131 | |
Accumulated depreciation and amortization | (265,326) | (237,969) | |
Net property and equipment | 67,113 | 65,162 | $ 67,783 |
Depreciation expense | $ 28,800 | $ 28,900 | $ 27,100 |
Acquisitions Acquisitions (Purc
Acquisitions Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 165,802 | $ 98,411 | $ 323,525 | |
Acquired entity name: Kepware [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 77,081 | 77,081 | ||
Identifiable intangible assets | 34,500 | |||
Cash | 590 | 1,313 | ||
Other assets and liabilities, net | 4,729 | |||
Total allocation of purchase price consideration | 116,900 | 103,705 | ||
Less: cash acquired | (590) | (1,313) | ||
Total purchase price allocation, net of cash acquired | 116,310 | 102,392 | ||
Less: contingent consideration | (16,900) | (3,800) | ||
Payments to Acquire Businesses, Net of Cash Acquired | 99,410 | $ 98,592 | ||
Acquired entity name: Vuforia [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 23,316 | |||
Identifiable intangible assets | 41,200 | |||
Cash | 4,466 | |||
Other assets and liabilities, net | 261 | |||
Total allocation of purchase price consideration | 69,243 | |||
Less: cash acquired | (4,466) | |||
Total purchase price allocation, net of cash acquired | 64,777 | |||
Less: contingent consideration | 0 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 64,777 |
Goodwill and Acquired Intangi54
Goodwill and Acquired Intangible Assets (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($)segments | Apr. 02, 2016segments | Sep. 30, 2016USD ($)segments | Sep. 30, 2015USD ($) | |
Number of reportable segments | segments | 3 | 2 | 3 | |
Estimated aggregate future amortization expense for intangible assets, 2016 | $ 58 | $ 58 | ||
Estimated aggregate future amortization expense for intangible assets, 2017 | 57 | 57 | ||
Estimated aggregate future amortization expense for intangible assets, 2018 | 49.9 | 49.9 | ||
Estimated aggregate future amortization expense for intangible assets, 2019 | 47.2 | 47.2 | ||
Estimated aggregate future amortization expense for intangible assets, 2020 | 41.8 | 41.8 | ||
Estimated aggregate future amortization expense for intangible assets, thereafter | 56.5 | 56.5 | ||
Solutions Group [Member] | ||||
Goodwill and acquired intangible assets | 1,196.6 | 1,196.6 | ||
Technology Platform Group [Member] | ||||
Goodwill and acquired intangible assets | 252.8 | 252.8 | ||
Professional Services [Member] | ||||
Goodwill and acquired intangible assets | $ 30.7 | $ 30.7 | ||
Software Products [Member] | ||||
Goodwill and acquired intangible assets | $ 1,297.9 | |||
Services [Member] | ||||
Goodwill and acquired intangible assets | $ 62.4 |
Goodwill and Acquired Intangi55
Goodwill and Acquired Intangible Assets (Goodwill and Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2016 | Jul. 02, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Goodwill (not amortized), Net Book Value | $ 1,169,813 | $ 1,169,660 | $ 1,069,041 | $ 1,012,527 | |
Intangible assets with finite lives (amortized), Gross Carrying Amount | 756,132 | 679,552 | |||
Intangible assets with finite lives (amortized), Accumulated Amortization | 445,827 | 388,251 | |||
Intangible assets with finite lives (amortized), Net Book Value | 310,305 | 291,301 | |||
Total goodwill and acquired intangible assets | 1,480,118 | 1,360,342 | |||
Purchased Software [Member] | |||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | 354,595 | 284,257 | ||
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 199,192 | 174,887 | ||
Intangible assets with finite lives (amortized), Net Book Value | [1] | $ 155,403 | 109,370 | ||
Weighted average useful lives (in years) | 9 years | ||||
Capitalized Software [Member] | |||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | $ 22,877 | 22,877 | ||
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 22,877 | 22,877 | ||
Intangible assets with finite lives (amortized), Net Book Value | [1] | 0 | 0 | ||
Customer Lists [Member] | |||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | 355,698 | 349,938 | ||
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 206,515 | 174,017 | ||
Intangible assets with finite lives (amortized), Net Book Value | [1] | $ 149,183 | 175,921 | ||
Weighted average useful lives (in years) | 10 years | ||||
Trademarks And Trade Names [Member] | |||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | $ 19,007 | 18,534 | ||
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 13,323 | 12,759 | ||
Intangible assets with finite lives (amortized), Net Book Value | [1] | $ 5,684 | 5,775 | ||
Weighted average useful lives (in years) | 10 years | ||||
Other [Member] | |||||
Intangible assets with finite lives (amortized), Gross Carrying Amount | [1] | $ 3,955 | 3,946 | ||
Intangible assets with finite lives (amortized), Accumulated Amortization | [1] | 3,920 | 3,711 | ||
Intangible assets with finite lives (amortized), Net Book Value | [1] | $ 35 | $ 235 | ||
Weighted average useful lives (in years) | 3 years | ||||
[1] | The weighted average useful lives of purchased software, capitalized software, customer lists and relationships, trademarks and trade names and other intangible assets with a remaining net book value are 9 years, 10 years, 10 years and 3 years, respectively. |
Goodwill and Acquired Intangi56
Goodwill and Acquired Intangible Assets (Schedule Of Movements of Goodwill by Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Apr. 02, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill [Roll Forward] | ||||||
Balance, beginning of period | $ 1,169,660 | $ 1,069,041 | $ 1,069,041 | $ 1,069,041 | $ 1,012,527 | |
Foreign currency translation and other adjustments | 153 | 222 | (28,594) | |||
Balance, end of period | 1,169,813 | 1,169,813 | 1,069,041 | |||
Software Products [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Balance, beginning of period | 1,117,038 | 1,016,413 | 1,016,413 | 1,016,413 | 959,768 | |
Foreign currency translation and other adjustments | 228 | (28,463) | ||||
Balance, end of period | 1,016,413 | |||||
Services [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Balance, beginning of period | 52,622 | 52,628 | 52,628 | 52,628 | 52,759 | |
Foreign currency translation and other adjustments | $ (6) | (131) | ||||
Balance, end of period | 52,628 | |||||
Solutions Group [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Balance, beginning of period | 1,050,013 | |||||
Foreign currency translation and other adjustments | 137 | |||||
Balance, end of period | 1,050,150 | 1,050,150 | ||||
Technology Platform Group [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Balance, beginning of period | 90,053 | |||||
Foreign currency translation and other adjustments | 12 | |||||
Balance, end of period | 90,065 | 90,065 | ||||
Professional Services [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Balance, beginning of period | 29,594 | |||||
Foreign currency translation and other adjustments | 4 | |||||
Balance, end of period | $ 29,598 | 29,598 | ||||
Acquired entity name: Axeda [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Adjustment of purchase price from escrow | (180) | |||||
Acquired entity name: Axeda [Member] | Software Products [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Adjustment of purchase price from escrow | (180) | |||||
Acquired entity name: Axeda [Member] | Services [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Adjustment of purchase price from escrow | 0 | |||||
Acquired entity name: ColdLight [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill acquired | 85,288 | |||||
Acquired entity name: ColdLight [Member] | Software Products [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill acquired | 85,288 | |||||
Acquired entity name: ColdLight [Member] | Services [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill acquired | $ 0 | |||||
Vuforia Acquisition [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill acquired | 23,316 | |||||
Vuforia Acquisition [Member] | Software Products [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill acquired | 23,316 | |||||
Vuforia Acquisition [Member] | Services [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill acquired | $ 0 | |||||
Acquired entity name: Kepware [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill acquired | $ 77,081 | $ 77,081 | ||||
Acquired entity name: Kepware [Member] | Software Products [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill acquired | 77,081 | |||||
Acquired entity name: Kepware [Member] | Services [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill acquired | $ 0 |
Goodwill and Acquired Intangi57
Goodwill and Acquired Intangible Assets (Amortization Of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of acquired intangible assets | $ 33,198 | $ 36,129 | $ 32,127 |
Cost of license and subscription | 24,604 | 19,402 | 18,112 |
Total amortization expense | $ 57,802 | $ 55,531 | $ 50,239 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 12 Months Ended | 60 Months Ended | |||||||
Jan. 03, 2015USD ($) | Sep. 30, 2016USD ($)foreign_subsidiary | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($)foreign_subsidiary | Sep. 30, 2015USD ($) | Sep. 30, 2013USD ($) | |||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective income tax rate | (19.00%) | (79.00%) | 14.00% | |||||||
Income before income taxes | $ (67,192,000) | $ 26,525,000 | $ 186,112,000 | |||||||
Statutory federal income tax rate | (35.00%) | 35.00% | 35.00% | |||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ (28,000,000) | $ (24,000,000) | ||||||||
Decrease of valuation allowance in foreign jurisdictions | 3,100,000 | |||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | 14,500,000 | |||||||||
Pension valuation allowance | (18,700,000) | |||||||||
Deferred Other Tax Expense (Benefit) | (1,400,000) | |||||||||
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | $ 2,100,000 | 6,000,000 | ||||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Withholding, Amount | 3,800,000 | $ 5,100,000 | ||||||||
Other Tax Expense (Benefit) | 3,100,000 | |||||||||
Change in foreign income tax withholding valuation allowance | $ 600,000 | 0 | $ 3,500,000 | |||||||
Number of foreign subsidiaries included in valuation allowance | foreign_subsidiary | 2 | 2 | ||||||||
Prepaid income taxes | $ 9,900,000 | 8,200,000 | $ 8,200,000 | |||||||
Income taxes payable | 18,700,000 | 14,700,000 | 14,700,000 | |||||||
Accrued income taxes | 6,300,000 | 4,000,000 | 4,000,000 | |||||||
Other current liabilities | 5,500,000 | 2,200,000 | 2,200,000 | |||||||
Other liabilities | 6,900,000 | 8,500,000 | 8,500,000 | |||||||
Income tax payments | 25,500,000 | 30,100,000 | $ 25,500,000 | |||||||
Net deferred tax assets | [1] | 75,942,000 | 31,756,000 | 31,756,000 | ||||||
Net operating loss related to windfall tax deductions | 45,100,000 | |||||||||
Valuation allowance | 235,503,000 | [1] | 198,168,000 | [1] | 177,500,000 | 198,168,000 | [1] | $ 156,500,000 | ||
Interest expense | 500,000 | 100,000 | 300,000 | |||||||
Penalty expense | 0 | 0 | 0 | |||||||
Interest expense related to income tax accruals | 2,000,000 | 1,500,000 | 1,500,000 | |||||||
Accrued tax penalties | 0 | 0 | 0 | 0 | ||||||
Unrecognized tax benefit | 15,500,000 | 14,100,000 | 15,000,000 | 14,100,000 | $ 13,700,000 | |||||
Income tax provision upon recognition of unrecognized tax benefit | (13,900,000) | |||||||||
Unrecognized tax benefits, increase in valuation allowance upon recognition | 4,800,000 | |||||||||
Unrecognized tax benefits, increase to additional paid-in capital upon recognition | 1,600,000 | |||||||||
Potential decrease in unrecognized tax benefits | 8,000,000 | |||||||||
Stock-based compensation | 65,996,000 | 50,182,000 | 50,889,000 | |||||||
Tax benefit recognition related to stock based compensation | 700,000 | 700,000 | 700,000 | |||||||
Increase (decrease) in income taxes payable | (6,749,000) | 3,536,000 | (19,134,000) | |||||||
Expected deferred tax expense | 12,000,000 | |||||||||
Undistributed Earnings of Foreign Subsidiaries | 789,000,000 | 684,000,000 | 684,000,000 | |||||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | [1] | 18,041,000 | 15,962,000 | $ 15,962,000 | ||||||
R&D credit related to windfall tax deductions | 14,000,000 | |||||||||
Domestic Country [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Net operating loss carryforwards | 247,100,000 | |||||||||
Valuation allowance | 209,000,000 | |||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 18,000,000 | |||||||||
Domestic Country [Member] | Research Tax Credit Carryforward [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Credit carryforwards | 25,200,000 | |||||||||
State - Massachusetts [Member] | Research Tax Credit Carryforward [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Credit carryforwards | 24,800,000 | |||||||||
Foreign Country [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Net operating loss carryforwards | 102,400,000 | |||||||||
Valuation allowance | 26,500,000 | |||||||||
Credit carryforwards | $ 7,500,000 | |||||||||
Korea | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Income Tax Examination, Description | 12 | 12 | ||||||||
Windfall Tax Benefit [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Increase (decrease) in income taxes payable | $ 100,000 | $ 0 | 10,400,000 | |||||||
Windfall tax deductions not yet recognized | 33,400,000 | |||||||||
2014 Acquisitions [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Deferred tax assets, change in valuation allowance | (18,100,000) | |||||||||
Deferred Tax Liabilities, Net | $ 21,600,000 | |||||||||
All Acquisitions [Member] | Domestic Country [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Net operating loss carryforwards | $ 82,200,000 | |||||||||
[1] | (1) See Note B. Recent Accounting Pronouncements-Deferred Taxes regarding a change in the balance sheet classification of our deferred taxes. |
Income Taxes (Summary Of Income
Income Taxes (Summary Of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (156,166) | $ (110,867) | $ 17,038 |
Foreign | 88,974 | 137,392 | 169,074 |
Income before income taxes | $ (67,192) | $ 26,525 | $ 186,112 |
Income Taxes (Schedule Of Provi
Income Taxes (Schedule Of Provision For (Benefit From) Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 2,417 | $ 3,907 | $ 12,792 |
State | 571 | 599 | 2,062 |
Foreign | 28,467 | 23,823 | 31,010 |
Current provision for income taxes | 31,455 | 28,329 | 45,864 |
Federal | 965 | (20,809) | (13,200) |
State | 515 | (566) | (2,085) |
Foreign | (45,662) | (27,986) | (4,661) |
Deferred provision for (benefit from) income taxes | (44,182) | (49,361) | (19,946) |
Total provision for income taxes | $ (12,727) | $ (21,032) | $ 25,918 |
Income Taxes (Summary Of Federa
Income Taxes (Summary Of Federal Income Tax Rate And Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | (35.00%) | 35.00% | 35.00% |
Change in valuation allowance | 57.00% | 63.00% | (11.00%) |
State income taxes, net of federal tax benefit | 0.00% | 7.00% | 1.00% |
Federal and state research and development credits | (9.00%) | (8.00%) | (0.00%) |
Resolution of Uncertain Tax Position | 0.00% | (11.00%) | 0.00% |
Foreign rate differences | (41.00%) | (213.00%) | (19.00%) |
Foreign withholding tax | 3.00% | 14.00% | 3.00% |
U.S. permanent items | 4.00% | 34.00% | 4.00% |
Other, net | 2.00% | 0.00% | 1.00% |
Effective income tax rate | (19.00%) | (79.00%) | 14.00% |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Income Tax Disclosure [Abstract] | |||||||
Net operating loss carryforwards | [1] | $ 100,033 | $ 71,533 | ||||
Foreign tax credits | [1] | 18,041 | 15,962 | ||||
Capitalized research and development expense | [1] | 22,504 | 31,690 | ||||
Pension benefits | [1] | 14,348 | 11,009 | ||||
Deferred revenue | [1] | 65,145 | 71,399 | ||||
Stock-based compensation | [1] | 19,846 | 16,777 | ||||
Other reserves not currently deductible | [1] | 25,993 | 21,940 | ||||
Amortization of intangible assets | [1] | 54,069 | 62,227 | ||||
Other tax credits | [1] | 41,381 | 37,270 | ||||
Depreciation | [1] | 3,002 | 3,465 | ||||
Capital loss carryforward | [1] | 8,019 | 8,040 | ||||
Deferred Tax Asset, Deferred Interest | [1] | 7,622 | 3,557 | ||||
Other | [1] | 14,778 | 6,559 | ||||
Gross deferred tax assets | [1] | 394,781 | 361,428 | ||||
Valuation allowance | (235,503) | [1] | (198,168) | [1] | $ (177,500) | $ (156,500) | |
Total deferred tax assets | [1] | 159,278 | 163,260 | ||||
Acquired intangible assets not deductible | [1] | (78,663) | (124,401) | ||||
Pension prepayments | [1] | (542) | (395) | ||||
Deferred revenue | [1] | (2,039) | (3,110) | ||||
Other | [1] | (2,092) | (3,598) | ||||
Deferred Tax Liabilities, Gross | [1] | 83,336 | 131,504 | ||||
Net deferred tax assets | [1] | $ 75,942 | $ 31,756 | ||||
[1] | (1) See Note B. Recent Accounting Pronouncements-Deferred Taxes regarding a change in the balance sheet classification of our deferred taxes. |
Income Taxes (Summary Of Valuat
Income Taxes (Summary Of Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Valuation allowance beginning of year | $ 198,168 | [1] | $ 177,500 | $ 156,500 | ||
Net release of valuation allowance | [2] | (3,100) | (18,700) | (18,100) | ||
Net increase in deferred tax assets for foreign jurisdictions with a full valuation allowance | 39,800 | 39,400 | 14,100 | |||
Establish valuation allowance for acquired businesses | 0 | 0 | 21,500 | |||
Establish valuation allowance in foreign jurisdictions | 600 | 0 | 3,500 | |||
Valuation allowance end of year | $ 235,503 | [1] | $ 198,168 | [1] | $ 177,500 | |
[1] | (1) See Note B. Recent Accounting Pronouncements-Deferred Taxes regarding a change in the balance sheet classification of our deferred taxes. | |||||
[2] | In 2016, this is attributable to the release in two foreign jurisdictions. In 2015, this is attributable to a reduction in deferred tax assets associated with our U.S. pension plan, both of which are described above and in 2014 the recognition of deferred tax liabilities recorded in connection with accounting for acquisitions. |
Income Taxes (Schedule Of Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit beginning of year | $ 14.1 | $ 15 | $ 13.7 |
Tax positions related to current year: | |||
Additions | 1 | 1.3 | 2.2 |
Tax positions related to prior years: | |||
Additions | 0.4 | 0.8 | 0.3 |
Reductions | 0 | (3) | (0.1) |
Settlements | 0 | 0 | (0.6) |
Statute expirations | 0 | 0 | (0.5) |
Unrecognized tax benefit end of year | $ 15.5 | $ 14.1 | $ 15 |
Debt (Details)
Debt (Details) | May 15, 2019 | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($)bank | Sep. 30, 2014USD ($) | Jul. 02, 2016USD ($) | May 31, 2016USD ($) | Apr. 02, 2016USD ($) |
Debt Instrument [Line Items] | |||||||
Senior Notes | $ 500,000,000 | $ 0 | $ 500,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||
Debt Instrument, Fair Value Disclosure | $ 536,300,000 | ||||||
Additional borrowing capacity on credit facility if agreed to by lenders | $ 500,000,000 | ||||||
Voting interest in domestic subsidiaries pledged against credit facility | 100.00% | ||||||
Credit facility, borrowings outstanding | $ 758,125,000 | 618,125,000 | |||||
Voting interest in foreign subsidiaries pledged against credit facility | 65.00% | ||||||
Investment limit in foreign subsidiaries | $ 75,000,000 | ||||||
Cash investment limit for acquisition of business | $ 200,000,000 | ||||||
Maximum leverage ratio allowed under debt covenant | 4 | ||||||
Minimum fixed charge coverage ratio allowed under debt covenant | 3.50 | ||||||
Leverage ratio, actual | 3.55 | ||||||
Debt Instrument, Covenant Compliance, Senior Debt Leverage Ratio, actual | 1.18 | ||||||
Fixed charge coverage ratio, actual | 7.14 | ||||||
Credit facility, origination costs | $ 6,900,000 | $ 7,900,000 | |||||
Credit facility, periodic interest payment | $ 13,300,000 | $ 10,100,000 | $ 5,700,000 | ||||
Credit facility, average interest rate during period | 3.00% | 1.70% | 1.60% | ||||
Long-term Debt, Gross | $ 758,125,000 | $ 668,125,000 | |||||
Unamortized Debt Issuance Expense | (10,709,000) | (7,587,000) | |||||
debt net of unamortized debt issuance cost | 747,416,000 | 660,538,000 | |||||
Current portion of long term debt | $ 0 | $ 50,000,000 | |||||
Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, variable interest rate, length of time between updates | 180 days | ||||||
Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, variable interest rate, length of time between updates | 30 days | ||||||
Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of banks in credit agreement | bank | 16 | ||||||
Credit facility, borrowings outstanding | $ 0 | $ 475,000,000 | |||||
Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, current maximum amount | $ 1,000,000,000 | ||||||
Credit facility, borrowings outstanding | $ 258,125,000 | $ 193,125,000 | |||||
Credit facility, revolving loan, basis spread on federal funds effective rate | 0.50% | ||||||
Credit facility, revolving loan, basis spread on adjusted LIBOR | 1.00% | ||||||
Debt Instrument, Covenant Compliance, Senior Debt Leverage Ratio | 3 | ||||||
Line of Credit [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, revolving loan, commitment fees percentage | 0.30% | ||||||
Line of Credit [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, revolving loan, commitment fees percentage | 0.175% | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, current maximum amount | $ 900,000,000 | ||||||
LIBOR for Eurodollar-Based Borrowings [Member] | Line of Credit [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||
LIBOR for Eurodollar-Based Borrowings [Member] | Line of Credit [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||
Base Rate [Member] | Line of Credit [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||
Base Rate [Member] | Line of Credit [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||
Revolving Loan, Reset December 17, 2015 | Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, term loan, interest rate at period end | 2.56% | ||||||
Scenario, Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Redemption Price, Percentage | 101.00% |
Commitments And Contingencies66
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 60 Months Ended | ||
Jan. 01, 2011 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Commitments And Contingencies [Line Items] | |||||
Lease expense, net of sublease income | $ 37.2 | $ 36.9 | $ 38.6 | ||
Lease renewal term | 10 years | ||||
Annual base rent plus operating expenses | $ 7.4 | ||||
Additional term of lease renewal | 10 years | ||||
Landlord reimbursements | $ 12.8 | ||||
Letters of credit and bank guarantees outstanding | $ 4.2 | 4 | $ 4 | ||
Bank guarantees outstanding collateralized | 1.2 | 1.1 | 1.1 | ||
Pending or Threatened Litigation [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Loss contingency accrual | $ 3.6 | 30.5 | $ 30.5 | ||
Korea | |||||
Commitments And Contingencies [Line Items] | |||||
Income Tax Examination, Description | 12 | 12 | |||
China Matter [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Loss contingency accrual | $ 28.2 | $ 28.2 |
Commitments And Contingencies67
Commitments And Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 39,994 |
2,018 | 34,347 |
2,019 | 27,150 |
2,020 | 22,804 |
2,021 | 14,943 |
Thereafter | 16,776 |
Total minimum lease payments | $ 156,014 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Jan. 03, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2016 | Aug. 14, 2014 | Aug. 04, 2014 | |
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 authorized to repurchase | $ 100,000,000 | $ 100,000,000 | $ 600,000,000 | ||||
Repurchases of common stock, shares | 2,700,000 | 5,100,000 | |||||
Repurchases of common stock, value | $ (64,940,000) | $ (187,415,000) | |||||
Stock repurchased in the period , including holdback | 224,900,000 | ||||||
Common stock repurchase holdback | 37,500,000 | ||||||
Series A Junior Participating Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 500,000 | ||||||
Accelerated Share Repurchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 125,000,000 | ||||||
Repurchases of common stock, shares | 1,100,000 | 2,300,000 | |||||
Common stock repurchase holdback | $ 37,500,000 |
Equity Incentive Plan (Narrativ
Equity Incentive Plan (Narrative) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2005 | Sep. 30, 2016USD ($)shares / unit$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation | $ | $ 65,996 | $ 50,182 | $ 50,889 | |
Common stock issuable per restricted stock unit | shares / unit | 1 | |||
Total unrecognized compensation cost | $ | $ 81,900 | |||
Weighted average remaining recognition period, in months | 17 months | |||
Common stock were available for grant under the 2000 plan | shares | 5,100 | |||
Common stock were reserved for issuance | shares | 3,800 | |||
vesting period | 4 years | |||
Option expiration period | 10 years | |||
Options outstanding and exercisable (in shares) | shares | 0 | |||
Shares retained by company to cover tax withholdings | shares | 600 | 800 | 800 | |
Employee tax withholdings | $ | $ 20,900 | $ 29,200 | $ 26,900 | |
Directors And Executive Officers [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-vesting forfeiture rate | 0.00% | 0.00% | 0.00% | |
Other Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-vesting forfeiture rate | 11.00% | 7.00% | 7.00% | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value per share | $ / shares | $ 37.25 | |||
Restricted Shares and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value per share | $ / shares | $ 37.25 | $ 38.19 | $ 33.88 | |
Minimum [Member] | Vice President [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-vesting forfeiture rate | 6.00% | 2.00% | 2.00% | |
Maximum [Member] | Vice President [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-vesting forfeiture rate | 8.00% | 4.00% | 4.00% | |
Performance-based Award [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value per share | $ / shares | $ 46.96 | |||
stock modification [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation | $ | $ 10,000 |
Equity Incentive Plan (Total St
Equity Incentive Plan (Total Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | $ 65,996 | $ 50,182 | $ 50,889 |
Cost of Software Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | 5,398 | 4,296 | 4,059 |
Cost Of Service Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | 5,393 | 5,871 | 6,351 |
Sales And Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | 14,659 | 14,189 | 13,441 |
Research And Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | 10,174 | 11,623 | 10,119 |
General And Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation | $ 30,372 | $ 14,203 | $ 16,919 |
Equity Incentive Plan (Restrict
Equity Incentive Plan (Restricted Stock Activity) (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Shares | |
Balance of outstanding restricted stock units, beginning, Shares | shares | 3,654 |
Shares granted | shares | 2,484 |
Vested, Shares | shares | (1,818) |
Forfeited or not earned, Shares | shares | (544) |
Balance of outstanding restricted stock units, ending, Shares | shares | 3,776 |
Weighted Average Grant Date Fair Value (Per Share) | |
Balance of outstanding restricted stock units, beginning (in USD per share) | $ / shares | $ 33.64 |
Weighted average fair value per share | $ / shares | 37.25 |
Vested (in USD per share) | $ / shares | 30.10 |
Forfeited or not earned (in USD per share) | $ / shares | 36.49 |
Balance of outstanding restricted stock units, ending (in USD per share) | $ / shares | $ 37.30 |
Intrinsic value [Abstract] | |
Aggregate Intrinsic Value, Ending Balance of outstanding restricted stock | $ | $ 167,314 |
Equity Incentive Plan (Restri72
Equity Incentive Plan (Restricted Stock And Restricted Stock Unit Grants) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended | |
Sep. 30, 2016installmentshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 2,484,000 | |
TSR Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 326,000 | [1] |
Target multiplier (up to) | 2 | |
Performance-based Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 343,000 | [2] |
Time-based Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 1,815,000 | [2] |
Executive Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target multiplier (up to) | 1 | |
Chief Executive Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target multiplier (up to) | 2 | |
Maximum [Member] | TSR Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 652,000 | |
Maximum [Member] | Performance-based Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 343,000 | |
Share-based Compensation Award, Tranche One [Member] | Time-based Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 64,000 | |
Share-based Compensation Award, Tranche Two [Member] | Time-based Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 121,000 | |
Number of Equal Annual Installments | installment | 2 | |
Share-based Compensation Award, Tranche Three [Member] | Performance-based Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Equal Annual Installments | installment | 3 | |
Share-based Compensation Award, Tranche Three [Member] | Time-based Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Equal Annual Installments | installment | 3 | |
[1] | The TSR units were granted to our executive officers pursuant to the terms described below. | |
[2] | The service-based RSUs were issued to employees, our executive officers, our directors and a consultant. Executive officers may earn up to one or, for our CEO, two times the number of time-based RSUs (up to a maximum of 343 thousand shares) if certain performance conditions are met. Of the service-based RSUs, approximately 64 thousand shares will vest in one installment on or about the anniversary of the date of grant. Approximately 121 thousand shares will vest in two substantially equal annual installments on or about the anniversary of the date of grant. All other service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. The performance-based RSUs will vest in three substantially equal installments on the later of November 15, 2016, November 15, 2017 and November 15, 2018, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved. |
Equity Incentive Plan (Schedule
Equity Incentive Plan (Schedule of Restricted Stock Unit Activity) (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 28.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.05% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Equity Incentive Plan (Value Of
Equity Incentive Plan (Value Of Stock Option And Stock-Based Award Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Total intrinsic value of stock options exercised | $ 88 | $ 182 | $ 2,040 |
Total fair value of restricted stock and restricted stock unit awards vested | $ 63,655 | $ 84,189 | $ 79,660 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - Savings Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
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 | $ 5.4 | $ 5.3 | $ 5.1 |
Pension Plans (Narrative) (Deta
Pension Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Contributions by Employer | $ 1,978 | $ 46,700 | $ 12,900 | |
Pension settlement loss | 0 | 66,332 | 0 | |
Actuarial loss expected to be recognized in the following year | 3,400 | |||
Actual return on plan assets gain (loss) | 1,700 | 1,900 | 15,900 | |
U.S. Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Contributions by Employer | 0 | 25,475 | ||
Pension settlement loss | 0 | 66,332 | 0 | |
Net periodic pension cost | 0 | 72,136 | 523 | |
International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Contributions by Employer | 1,978 | 21,225 | ||
Pension settlement loss | $ 0 | 0 | 0 | |
Long-term rate of return | 5.44% | |||
Net periodic pension cost | $ 1,955 | $ 1,741 | $ 2,771 | |
Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plans, vesting period | 1 year | |||
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plans, vesting period | 5 years | |||
Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension cost | $ 2,700 | |||
Germany [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current asset allocation target for equity securities | 60.00% | |||
Current asset allocation target for fixed income securities | 40.00% | |||
Other International [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current asset allocation target for fixed income securities | 100.00% |
Pension Plans (Accounting For T
Pension Plans (Accounting For The Pension Plans) (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
U.S. Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Discount rate | 0.00% | 0.00% | 3.80% |
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Rate of increase in future compensation | 0.00% | 0.00% | 0.00% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Discount rate | 0.00% | 3.80% | 4.90% |
Weighted average assumptions used to determine net periodic pension costs for fiscals years ended September 30, Rate of increase of future compensation | 0.00% | 0.00% | 0.00% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Rate of return on plan assets | 0.00% | 1.35% | 7.25% |
International Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Discount rate | 1.30% | 2.20% | 2.40% |
Weighted average assumptions used to determine benefit obligations at September 30 measurement date, Rate of increase in future compensation | 2.80% | 3.00% | 3.00% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Discount rate | 2.20% | 2.40% | 3.30% |
Weighted average assumptions used to determine net periodic pension costs for fiscals years ended September 30, Rate of increase of future compensation | 3.00% | 3.00% | 3.00% |
Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30, Rate of return on plan assets | 5.73% | 5.80% | 5.70% |
Pension Plans (Components Of Ne
Pension Plans (Components Of Net Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost of projected benefit obligation | $ 1,374 | $ 6,419 | |
Service cost | 1,599 | 1,466 | |
Settlement loss | 0 | 66,332 | $ 0 |
U.S. Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost of projected benefit obligation | 0 | 4,591 | 5,461 |
Service cost | 0 | 0 | 0 |
Expected return on plan assets | 0 | (1,364) | (7,151) |
Amortization of prior service cost | 0 | 0 | 0 |
Recognized actuarial loss (gain) | 0 | 2,577 | 2,213 |
Settlement loss | 0 | 66,332 | 0 |
Net periodic pension cost | 0 | 72,136 | 523 |
International Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost of projected benefit obligation | 1,374 | 1,828 | 2,442 |
Service cost | 1,599 | 1,466 | 1,659 |
Expected return on plan assets | (3,305) | (3,364) | (2,506) |
Amortization of prior service cost | (5) | (4) | (5) |
Recognized actuarial loss (gain) | 2,292 | 1,815 | 1,181 |
Settlement loss | 0 | 0 | 0 |
Net periodic pension cost | $ 1,955 | $ 1,741 | $ 2,771 |
Pension Plans (Change In Benefi
Pension Plans (Change In Benefit Obligation And Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation—beginning of year | $ 78,188 | $ 218,559 | |
Service cost | 1,599 | 1,466 | |
Interest cost | 1,374 | 6,419 | |
Actuarial loss | 10,556 | 3,594 | |
Foreign exchange impact | 2,431 | (9,515) | |
Participant contributions | 147 | 198 | |
Benefits paid | (1,600) | (7,183) | |
Settlements | 0 | (135,350) | |
Projected benefit obligation—end of year | 92,695 | 78,188 | $ 218,559 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at fair value-beginning of year | 57,961 | 157,350 | |
Actual return on plan assets | 1,742 | 1,878 | |
Employer contributions | 1,978 | 46,700 | 12,900 |
Participant contributions | 147 | 198 | |
Foreign exchange impact | 1,707 | (5,632) | |
Settlements | 0 | (135,350) | |
Benefits paid | (1,600) | (7,183) | |
Plan assets at fair value-end of year | 61,935 | 57,961 | 157,350 |
Underfunded status | (30,760) | (20,227) | |
Accumulated benefit obligation-end of year | 88,768 | 74,928 | |
Non-current liability | (30,760) | (20,227) | |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | 0 | |
Unrecognized actuarial loss | (38,667) | (28,339) | |
U.S. Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation—beginning of year | 0 | 134,453 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 4,591 | 5,461 |
Actuarial loss | 0 | 1,606 | |
Foreign exchange impact | 0 | 0 | |
Participant contributions | 0 | 0 | |
Benefits paid | 0 | (5,300) | |
Settlements | 0 | (135,350) | |
Projected benefit obligation—end of year | 0 | 0 | 134,453 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at fair value-beginning of year | 0 | 112,859 | |
Actual return on plan assets | 0 | 2,316 | |
Employer contributions | 0 | 25,475 | |
Participant contributions | 0 | 0 | |
Foreign exchange impact | 0 | 0 | |
Settlements | 0 | (135,350) | |
Benefits paid | 0 | (5,300) | |
Plan assets at fair value-end of year | 0 | 0 | 112,859 |
Underfunded status | 0 | 0 | |
Accumulated benefit obligation-end of year | 0 | 0 | |
Non-current liability | 0 | 0 | |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | 0 | |
Unrecognized actuarial loss | 0 | 0 | |
International Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation—beginning of year | 78,188 | 84,106 | |
Service cost | 1,599 | 1,466 | 1,659 |
Interest cost | 1,374 | 1,828 | 2,442 |
Actuarial loss | 10,556 | 1,988 | |
Foreign exchange impact | 2,431 | (9,515) | |
Participant contributions | 147 | 198 | |
Benefits paid | (1,600) | (1,883) | |
Settlements | 0 | 0 | |
Projected benefit obligation—end of year | 92,695 | 78,188 | 84,106 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at fair value-beginning of year | 57,961 | 44,491 | |
Actual return on plan assets | 1,742 | (438) | |
Employer contributions | 1,978 | 21,225 | |
Participant contributions | 147 | 198 | |
Foreign exchange impact | 1,707 | (5,632) | |
Settlements | 0 | 0 | |
Benefits paid | (1,600) | (1,883) | |
Plan assets at fair value-end of year | 61,935 | 57,961 | $ 44,491 |
Underfunded status | (30,760) | (20,227) | |
Accumulated benefit obligation-end of year | 88,768 | 74,928 | |
Non-current liability | (30,760) | (20,227) | |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | 0 | |
Unrecognized actuarial loss | $ (38,667) | $ (28,339) |
Pension Plans (Change in Accumu
Pension Plans (Change in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning Balance, value | $ 860,171 | $ 853,889 |
Ending Balance, value | 842,666 | 860,171 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning Balance, value | 28,339 | 95,925 |
Recognized during year - net actuarial (losses) | (2,288) | (4,388) |
Occurring during year - settlement loss | 0 | (66,332) |
Occurring during year - net actuarial losses | 12,119 | 6,445 |
Foreign exchange impact | 497 | (3,311) |
Ending Balance, value | 38,667 | 28,339 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | U.S. Plan [Member] | ||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning Balance, value | 0 | 68,256 |
Recognized during year - net actuarial (losses) | 0 | (2,577) |
Occurring during year - settlement loss | 0 | (66,332) |
Occurring during year - net actuarial losses | 0 | 653 |
Foreign exchange impact | 0 | 0 |
Ending Balance, value | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | International Plans [Member] | ||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning Balance, value | 28,339 | 27,669 |
Recognized during year - net actuarial (losses) | (2,288) | (1,811) |
Occurring during year - settlement loss | 0 | 0 |
Occurring during year - net actuarial losses | 12,119 | 5,792 |
Foreign exchange impact | 497 | (3,311) |
Ending Balance, value | $ 38,667 | $ 28,339 |
Pension Plans (Percentage Of To
Pension Plans (Percentage Of Total Plan Assets) (Details) - International Plans [Member] | Sep. 30, 2016 | Sep. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 49.00% | 53.00% |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 30.00% | 32.00% |
Commodity Option [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 4.00% | 0.00% |
Insurance Company [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 16.00% | 13.00% |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category | 1.00% | 2.00% |
Pension Plans (Expected Future
Pension Plans (Expected Future Benefit Payments) (Details) - International Plans [Member] $ in Thousands | Sep. 30, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 1,899 |
2,018 | 2,314 |
2,019 | 2,566 |
2,020 | 2,861 |
2,021 | 3,175 |
2022 to 2026 | $ 22,034 |
Pension Plans (Fair Value Of Pl
Pension Plans (Fair Value Of Plan Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | $ 61,935 | $ 57,961 | $ 157,350 | |
International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 61,935 | 57,961 | ||
Government [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 8,518 | 11,086 | ||
Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 10,218 | 7,487 | ||
Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 30,615 | 30,887 | ||
Commodity Option [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 2,709 | |||
Insurance Company Funds [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | [1] | 9,578 | 7,668 | |
Cash [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 297 | 833 | ||
Level 1 [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 52,357 | 50,293 | ||
Level 1 [Member] | Government [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 8,518 | 11,086 | ||
Level 1 [Member] | Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 10,218 | 7,487 | ||
Level 1 [Member] | Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 30,615 | 30,887 | ||
Level 1 [Member] | Commodity Option [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 2,709 | |||
Level 1 [Member] | Insurance Company Funds [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Level 1 [Member] | Cash [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 297 | 833 | ||
Level 2 [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 9,578 | 7,668 | ||
Level 2 [Member] | Government [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 2 [Member] | Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 2 [Member] | Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 2 [Member] | Commodity Option [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | |||
Level 2 [Member] | Insurance Company Funds [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | [1] | 9,578 | 7,668 | |
Level 2 [Member] | Cash [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | Government [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | Europe Corporate Investment Grade [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | Europe Large Capitalization Stocks [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | Commodity Option [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | 0 | |||
Level 3 [Member] | Insurance Company Funds [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Level 3 [Member] | Cash [Member] | International Plan Assets [Member] | ||||
Fair Value of Plan Assets [Line Items] | ||||
Fair value of plan assets | $ 0 | $ 0 | ||
[1] | These investments are comprised primarily of funds invested with an insurance company in Japan with a guaranteed rate of return. The insurance company invests these assets primarily in government and corporate bonds. |
Derivative Financial Instrume84
Derivative Financial Instruments Derivative Financial Instruments (Notional Amounts of Outstanding Forward Contracts (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 249,534 | $ 157,255 |
Canadian/U.S. Dollar | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 14,685 | 17,448 |
Euro/U.S. Dollar | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 174,120 | 82,917 |
British Pound/Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,382 | 9,409 |
Israeli Sheqel/U.S. Dollar | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 7,271 | 4,607 |
Japanese Yen to Euro [Domain] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 32,782 | 25,133 |
Japanese Yen to USD [Domain] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 6,716 | 0 |
Swiss Franc/U.S. Dollar | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 730 | 5,149 |
All other | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 11,848 | 12,592 |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 39,059 | 0 |
Designated as Hedging Instrument [Member] | Euro/U.S. Dollar | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 26,181 | 0 |
Designated as Hedging Instrument [Member] | Japanese Yen/Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 8,800 | 0 |
Designated as Hedging Instrument [Member] | SEK / U.S. Dollar | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 4,078 | $ 0 |
Derivative Financial Instrume85
Derivative Financial Instruments Derivative Financial Instruments (Derivative Instruments and Hedging Activities Disclosure) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative [Line Items] | |||
Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged) | $ (500) | $ 600 | $ (3,800) |
Gain or (Loss)Recognized in OCI-Effective Portion | (3,375) | 0 | 0 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Gain or (Loss)Recognized in OCI-Effective Portion | (3,859) | ||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | (2,436) | ||
Gain or (Loss) Recognized-Ineffective Portion | (24) | ||
Other Income (Expense) [Member] | Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged) | $ 883 | $ (615) | $ 3,769 |
Derivative Financial Instrume86
Derivative Financial Instruments Derivative Financial Instruments (Derivative Instruments at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 44 | $ 0 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 216 | 507 |
Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 1,477 | 0 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 1,693 | $ 46 |
Derivative Financial Instrume87
Derivative Financial Instruments Derivative Financial Instruments (Offsetting Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | $ 260 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative Asset | 260 | $ 507 |
Derivative, Collateral, Obligation to Return Securities | (260) | |
Derivative, Collateral, Obligation to Return Cash | 0 | |
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | $ 0 |
Derivative Financial Instrume88
Derivative Financial Instruments Derivative Financial Instruments (Offsetting Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Liability, Fair Value, Gross Liability | $ 3,170 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Derivative Liability | 3,170 | $ 46 |
Derivative, Collateral, Right to Reclaim Securities | (260) | |
Derivative, Collateral, Right to Reclaim Cash | 0 | |
Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | $ 2,910 |
Derivative Financial Instrume89
Derivative Financial Instruments Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Net losses on foreign currency exposures | $ 1.9 | $ 2.7 | $ 4.5 |
Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged) | $ (0.5) | $ 0.6 | $ (3.8) |
Segment Information (Revenue An
Segment Information (Revenue And Operating Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Revenue | $ 1,140,533 | $ 1,255,242 | $ 1,356,967 | |
Cost of Revenue | 325,665 | 334,734 | 373,683 | |
Gross Profit | 814,868 | 920,508 | 983,284 | |
Total Segment Cost of Revenue | 435,246 | 446,437 | 490,243 | |
Segment Gross Profit | 705,287 | 808,805 | 866,724 | |
Unallocated Operating Expennses | [1] | 666,028 | 723,780 | 641,742 |
Operating income | (37,014) | 41,616 | 196,576 | |
Other income (expense), net | 30,178 | 15,091 | 10,464 | |
Restructuring charges | 76,273 | 43,409 | 28,406 | |
Income before income taxes | (67,192) | 26,525 | 186,112 | |
Depreciation and amortization | 86,554 | 84,433 | 77,307 | |
Solutions Group [Member] | ||||
Revenue | 871,225 | 980,274 | 1,073,426 | |
Cost of Revenue | 186,174 | 224,042 | 244,020 | |
Gross Profit | 685,051 | 756,232 | 829,406 | |
Depreciation and amortization | 5,400 | 5,600 | 5,700 | |
Technology Platform Group [Member] | ||||
Revenue | 72,371 | 49,249 | 4,815 | |
Cost of Revenue | 83,747 | 28,998 | 8,534 | |
Gross Profit | (11,376) | 20,251 | (3,719) | |
Depreciation and amortization | 1,600 | 1,000 | 100 | |
Professional Services [Member] | ||||
Revenue | 196,937 | 225,719 | 278,726 | |
Cost of Revenue | 165,325 | 193,397 | 237,689 | |
Gross Profit | 31,612 | 32,322 | 41,037 | |
Depreciation and amortization | 2,000 | 2,200 | 2,300 | |
Unallocated [Member] | ||||
Depreciation and amortization | $ 19,700 | $ 20,100 | $ 19,000 | |
[1] | The Solutions Group segment includes depreciation of $5.4 million, $5.6 million and $5.7 million in 2016, 2015 and 2014, respectively. The IoT Group segment includes depreciation of $1.6 million, $1.0 million and $0.1 million in 2016, 2015 and 2014, respectively. The Professional Services segment includes depreciation of $2.0 million, $2.2 million and $2.3 million in 2016, 2015 and 2014, respectively. Unallocated departments includes depreciation of $19.7 million, $20.1 million and $19.0 million in 2016, 2015 and 2014, respectively. |
Segment Information (Revenue By
Segment Information (Revenue By Product Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | $ 1,140,533 | $ 1,255,242 | $ 1,356,967 |
CAD [Member] | |||
Revenue | 462,307 | 511,582 | 581,508 |
Extended PLM [Member] | |||
Revenue | 456,285 | 524,741 | 599,312 |
SLM [Member] | |||
Revenue | 141,644 | 166,060 | 170,980 |
IoT Segment [Member] | |||
Revenue | $ 80,297 | $ 52,859 | $ 5,167 |
Segment Information (Revenue 92
Segment Information (Revenue By Geographic Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Revenue | $ 1,140,533 | $ 1,255,242 | $ 1,356,967 | |
Total long-lived intangible assets | 67,113 | 65,162 | 67,783 | |
Americas [Member] | ||||
Revenue | [1] | 487,594 | 530,311 | 558,671 |
Total long-lived intangible assets | [2] | 48,281 | 47,509 | 51,027 |
Europe [Member] | ||||
Revenue | [3] | 424,268 | 467,805 | 528,090 |
Total long-lived intangible assets | 6,915 | 7,424 | 7,020 | |
Pacific Rim [Member] | ||||
Revenue | 123,766 | 139,165 | 148,151 | |
Japan [Member] | ||||
Revenue | 104,905 | 117,961 | 122,055 | |
Asia Pacific [Member] | ||||
Total long-lived intangible assets | 11,917 | 10,229 | 9,736 | |
United States [Member] | ||||
Revenue | 463,100 | 500,600 | 518,700 | |
Germany [Member] | ||||
Revenue | $ 167,200 | $ 177,100 | $ 200,300 | |
[1] | Includes revenue in the United States totaling $463.1 million, $500.6 million and $518.7 million for 2016, 2015 and 2014, respectively. | |||
[2] | Substantially all of the Americas long-lived tangible assets are located in the United States. | |||
[3] | Includes revenue in Germany totaling $167.2 million, $177.1 million and $200.3 million for 2016, 2015 and 2014, respectively. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Sep. 30, 2016segments | Apr. 02, 2016segments | Sep. 30, 2016segmentsproduct_area | |
Segment Reporting [Abstract] | |||
Number of operating Segments | 3 | ||
Number of reportable segments | 3 | 2 | 3 |
Number of product areas | product_area | 4 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2016USD ($)installmentshares | Oct. 31, 2016USD ($) | Jul. 31, 2005 | Sep. 30, 2016installmentshares | ||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,484,000 | ||||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
TSR Units [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | [1] | 326,000 | |||
Target multiplier (up to) | 2 | ||||
TSR Units [Member] | Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of Equal Annual Installments | installment | 3 | ||||
Performance-based Award [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | [2] | 343,000 | |||
Performance-based Award [Member] | Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of Equal Annual Installments | installment | 3 | ||||
Time-based Award [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | [2] | 1,815,000 | |||
Maximum [Member] | TSR Units [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 652,000 | ||||
Maximum [Member] | Performance-based Award [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 343,000 | ||||
Maximum [Member] | Performance-based Award [Member] | Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 495,000 | ||||
Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Target multiplier (up to) | 1 | ||||
Executive Officer [Member] | Maximum [Member] | Performance-based Award [Member] | Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 305,000 | ||||
Korea | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Income Tax Assessment Paid | $ | $ 12 | ||||
Share-based Compensation Award, Tranche One [Member] | Time-based Award [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 64,000 | ||||
Share-based Compensation Award, Tranche One [Member] | Executive Officer [Member] | Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Target multiplier (up to) | 1 | ||||
Share-based Compensation Award, Tranche Two [Member] | Time-based Award [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 121,000 | ||||
Number of Equal Annual Installments | installment | 2 | ||||
Share-based Compensation Award, Tranche Two [Member] | Executive Officer [Member] | Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Subsequent Event [Line Items] | |||||
Target multiplier (up to) | 2 | ||||
Line of Credit [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from (Repayments of) Lines of Credit | $ | $ 60 | ||||
[1] | The TSR units were granted to our executive officers pursuant to the terms described below. | ||||
[2] | The service-based RSUs were issued to employees, our executive officers, our directors and a consultant. Executive officers may earn up to one or, for our CEO, two times the number of time-based RSUs (up to a maximum of 343 thousand shares) if certain performance conditions are met. Of the service-based RSUs, approximately 64 thousand shares will vest in one installment on or about the anniversary of the date of grant. Approximately 121 thousand shares will vest in two substantially equal annual installments on or about the anniversary of the date of grant. All other service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. The performance-based RSUs will vest in three substantially equal installments on the later of November 15, 2016, November 15, 2017 and November 15, 2018, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved. |
Subsequent Events (Schedule Of
Subsequent Events (Schedule Of Restricted Units Granted) (Details) - Subsequent Event [Member] - Restricted Stock Units (RSUs) [Member] shares in Thousands, $ in Thousands | 1 Months Ended |
Nov. 30, 2016USD ($)shares | |
TSR Units [Member] | |
Subsequent Event [Line Items] | |
Intrinsic Value | $ | $ 23,482 |
Performance-based Award [Member] | |
Subsequent Event [Line Items] | |
Intrinsic Value | $ | 14,991 |
Time-based Award [Member] | |
Subsequent Event [Line Items] | |
Intrinsic Value | $ | $ 33,731 |
Maximum [Member] | TSR Units [Member] | |
Subsequent Event [Line Items] | |
Number Granted | shares | 495 |
Maximum [Member] | Performance-based Award [Member] | |
Subsequent Event [Line Items] | |
Number Granted | shares | 316 |
Maximum [Member] | Time-based Award [Member] | |
Subsequent Event [Line Items] | |
Number Granted | shares | 711 |