Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 0-18059 | |
Entity Registrant Name | PTC Inc. | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2866152 | |
Entity Address, Address Line One | 121 Seaport Boulevard | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02210 | |
City Area Code | 781 | |
Local Phone Number | 370-5000 | |
Title of 12(b) Security | Common Stock, $.01 par value per share | |
Trading Symbol | PTC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 120,135,231 | |
Amendment Flag | false | |
Entity Central Index Key | 0000857005 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 247,749 | $ 288,103 |
Accounts receivable, net of allowance for doubtful accounts of $1,269 and $429 at June 30, 2024 and September 30, 2023, respectively | 674,959 | 811,398 |
Prepaid expenses | 109,373 | 96,016 |
Other current assets | 59,690 | 81,849 |
Total current assets | 1,091,771 | 1,277,366 |
Property and equipment, net | 77,535 | 88,391 |
Goodwill | 3,442,245 | 3,358,511 |
Acquired intangible assets, net | 910,505 | 941,249 |
Deferred tax assets | 151,659 | 123,319 |
Operating right-of-use lease assets | 131,297 | 143,028 |
Other assets | 323,133 | 356,978 |
Total assets | 6,128,145 | 6,288,842 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 47,153 | 43,480 |
Accrued expenses and other current liabilities | 123,090 | 132,841 |
Accrued compensation and benefits | 161,073 | 160,431 |
Accrued income taxes | 25,366 | 14,919 |
Current portion of long-term debt | 518,071 | 9,375 |
Deferred acquisition payments | 0 | 620,040 |
Deferred revenue | 671,209 | 665,362 |
Short-term lease obligations | 23,287 | 24,737 |
Total current liabilities | 1,569,249 | 1,671,185 |
Long-term debt | 1,293,083 | 1,686,410 |
Deferred tax liabilities | 37,255 | 29,508 |
Long-term deferred revenue | 16,405 | 16,188 |
Long-term lease obligations | 156,987 | 168,455 |
Other liabilities | 40,487 | 39,806 |
Total liabilities | 3,113,466 | 3,611,552 |
Commitments and contingencies (Note 11) | ||
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; 120,049 and 118,846 shares issued and outstanding at June 30, 2024 and September 30, 2023, respectively | 1,200 | 1,188 |
Additional paid-in capital | 1,910,615 | 1,820,905 |
Retained earnings | 1,223,087 | 973,277 |
Accumulated other comprehensive loss | (120,223) | (118,080) |
Total stockholders’ equity | 3,014,679 | 2,677,290 |
Total liabilities and stockholders’ equity | $ 6,128,145 | $ 6,288,842 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Current assets: | ||
Allowance for doubtful accounts | $ 1,269 | $ 429 |
Stockholders’ equity: | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 120,049,000 | 118,846,000 |
Common stock, shares outstanding | 120,049,000 | 118,846,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||||
Total revenue | $ 518,639 | $ 542,342 | $ 1,671,925 | $ 1,550,433 |
Cost of revenue: | ||||
Total cost of revenue | 111,916 | 115,854 | 331,991 | 325,150 |
Gross margin | 406,723 | 426,488 | 1,339,934 | 1,225,283 |
Operating expenses: | ||||
Sales and marketing | 140,318 | 145,083 | 411,763 | 392,673 |
Research and development | 110,253 | 103,819 | 323,034 | 292,345 |
General and administrative | 49,659 | 57,055 | 180,391 | 173,949 |
Amortization of acquired intangible assets | 10,672 | 10,670 | 31,459 | 29,352 |
Restructuring and other credits, net | 0 | (39) | (802) | (376) |
Total operating expenses | 310,902 | 316,588 | 945,845 | 887,943 |
Operating income | 95,821 | 109,900 | 394,089 | 337,340 |
Interest and debt premium expense | (27,785) | (35,836) | (94,705) | (93,719) |
Other income (expense), net | (663) | 2,462 | (667) | 398 |
Income before income taxes | 67,373 | 76,526 | 298,717 | 244,019 |
Provision (benefit) for income taxes | (1,605) | 15,128 | 48,907 | 44,082 |
Net income | $ 68,978 | $ 61,398 | $ 249,810 | $ 199,937 |
Earnings per share—Basic | $ 0.58 | $ 0.52 | $ 2.09 | $ 1.69 |
Earnings per share—Diluted | $ 0.57 | $ 0.51 | $ 2.07 | $ 1.68 |
Weighted-average shares outstanding—Basic | 119,893 | 118,483 | 119,533 | 118,186 |
Weighted-average shares outstanding—Diluted | 120,822 | 119,392 | 120,593 | 119,072 |
License | ||||
Revenue: | ||||
License | $ 149,104 | $ 192,940 | $ 567,423 | $ 562,631 |
Cost of revenue: | ||||
Cost of license revenue | 12,072 | 11,501 | 33,003 | 41,293 |
Support and cloud services | ||||
Revenue: | ||||
Support and cloud services | 339,505 | 313,721 | 1,006,420 | 875,448 |
Cost of revenue: | ||||
Cost of support and cloud services revenue | 69,968 | 68,264 | 204,405 | 177,626 |
Software | ||||
Revenue: | ||||
Total software revenue | 488,609 | 506,661 | 1,573,843 | 1,438,079 |
Cost of revenue: | ||||
Total cost of software revenue | 82,040 | 79,765 | 237,408 | 218,919 |
Professional services | ||||
Revenue: | ||||
Professional services | 30,030 | 35,681 | 98,082 | 112,354 |
Cost of revenue: | ||||
Cost of professional services revenue | $ 29,876 | $ 36,089 | $ 94,583 | $ 106,231 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 68,978 | $ 61,398 | $ 249,810 | $ 199,937 |
Other comprehensive income (loss), net of tax: | ||||
Hedge gain (loss) arising during the period, net of tax of $0 million and $0 million in the third quarter of 2024 and 2023, respectively, and $0 million and $0 million in the first nine months of 2024 and 2023, respectively | 2,292 | (521) | (2,787) | (14,005) |
Foreign currency translation adjustment, net of tax of $0 for each period | (9,344) | 1,405 | 538 | 70,181 |
Change in pension benefit, net of tax of $0.0 million and $0.0 million in the third quarter of 2024 and 2023, respectively, and $(0.1) million and $0.0 million in the first nine months of 2024 and 2023, respectively | 112 | (24) | 106 | (356) |
Other comprehensive income (loss) | (6,940) | 860 | (2,143) | 55,820 |
Comprehensive income | $ 62,038 | $ 62,258 | $ 247,667 | $ 255,757 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Hedge gain (loss) arising during the period, tax | $ (0.8) | $ 0.2 | $ 0.9 | $ 4.7 |
Foreign currency translation adjustment, tax | 0 | 0 | 0 | 0 |
Change in pension benefit, net of tax | $ 0 | $ 0 | $ (0.1) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net Income (Loss) | $ 249,810 | $ 199,937 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 81,272 | 76,943 |
Amortization of right-of-use lease assets | 23,143 | 24,705 |
Stock-based compensation | 161,242 | 147,568 |
Other non-cash items, net | (297) | (3,114) |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | ||
Accounts receivable | 131,422 | 99,521 |
Accounts payable and accrued expenses | (8,631) | 5,407 |
Accrued compensation and benefits | 8,666 | 5,961 |
Deferred revenue | 8,393 | 18,696 |
Accrued income taxes | (1,795) | (9,910) |
Other current assets and prepaid expenses | (9,962) | 8,670 |
Operating lease liabilities | (13,438) | (1,360) |
Other noncurrent assets and liabilities | 22,045 | (11,932) |
Net cash provided by operating activities | 651,870 | 561,092 |
Cash flows from investing activities: | ||
Additions to property and equipment | (9,841) | (18,035) |
Acquisitions of businesses, net of cash acquired | (93,457) | (828,271) |
Proceeds from sale of investments | 0 | 349 |
Purchases of investments | 0 | (5,823) |
Settlement of net investment hedges | 3,826 | (14,204) |
Divestitures of businesses and assets, net | 0 | (154) |
Net cash used in investing activities | (99,472) | (866,138) |
Cash flows from financing activities: | ||
Borrowings under credit facility | 944,845 | 1,130,000 |
Repayments of borrowings under credit facility and acquired debt | (835,796) | (744,000) |
Proceeds from issuance of common stock | 12,709 | 10,592 |
Payments of withholding taxes in connection with stock-based awards | (92,589) | (75,489) |
Payments of principal for financing leases | 0 | (217) |
Credit facility origination costs | 0 | (13,355) |
Payment of deferred acquisition consideration | (620,040) | 0 |
Net cash provided by (used in) financing activities | (590,871) | 307,531 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (2,003) | 6,835 |
Net change in cash, cash equivalents, and restricted cash | (40,476) | 9,320 |
Cash, cash equivalents, and restricted cash, beginning of period | 288,798 | 272,888 |
Cash, cash equivalents, and restricted cash, end of period | 248,322 | 282,208 |
Supplemental disclosure of non-cash financing and investing activities: | ||
Withholding taxes in connection with stock-based awards, accrued | 7,674 | 5,705 |
Operating right-of-use assets obtained in exchange for operating lease liabilities | $ 4,941 | $ 23,142 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Sep. 30, 2022 | $ 2,296,034 | $ 1,175 | $ 1,720,580 | $ 727,737 | $ (153,458) |
Beginning balance (in shares) at Sep. 30, 2022 | 117,472,000 | ||||
Common stock issued for employee stock-based awards | $ 18 | (18) | |||
Common stock issued for employee stock-based awards (in shares) | 1,766,000 | ||||
Shares surrendered by employees to pay taxes related to stock-based awards | (81,194) | $ (7) | (81,187) | ||
Shares surrendered by employees to pay taxes related to stock-based awards (in shares) | (609,000) | ||||
Common stock issued for employee stock purchase plan | 10,592 | 10,592 | |||
Common stock issued for employee stock purchase plan (in shares) | 102,000 | ||||
Compensation expense from stock-based awards | 117,475 | 117,475 | |||
Net Income (Loss) | 199,937 | 199,937 | |||
Gain/Loss on net investment hedges, net of tax | (14,005) | (14,005) | |||
Foreign currency translation adjustment | 70,181 | 70,181 | |||
Change in defined benefit pension items, net of tax | (356) | (356) | |||
Ending balance at Jun. 30, 2023 | 2,598,664 | $ 1,186 | 1,767,442 | 927,674 | (97,638) |
Ending balance (in shares) at Jun. 30, 2023 | 118,731,000 | ||||
Beginning balance at Mar. 31, 2023 | 2,518,534 | $ 1,182 | 1,749,574 | 866,276 | (98,498) |
Beginning balance (in shares) at Mar. 31, 2023 | 118,334,000 | ||||
Common stock issued for employee stock-based awards | $ 6 | (6) | |||
Common stock issued for employee stock-based awards (in shares) | 582,000 | ||||
Shares surrendered by employees to pay taxes related to stock-based awards | (25,172) | $ (2) | (25,170) | ||
Shares surrendered by employees to pay taxes related to stock-based awards (in shares) | (185,000) | ||||
Compensation expense from stock-based awards | 43,044 | 43,044 | |||
Net Income (Loss) | 61,398 | 61,398 | |||
Gain/Loss on net investment hedges, net of tax | (521) | (521) | |||
Foreign currency translation adjustment | 1,405 | 1,405 | |||
Change in defined benefit pension items, net of tax | (24) | (24) | |||
Ending balance at Jun. 30, 2023 | 2,598,664 | $ 1,186 | 1,767,442 | 927,674 | (97,638) |
Ending balance (in shares) at Jun. 30, 2023 | 118,731,000 | ||||
Beginning balance at Sep. 30, 2023 | $ 2,677,290 | $ 1,188 | 1,820,905 | 973,277 | (118,080) |
Beginning balance (in shares) at Sep. 30, 2023 | 118,846,000 | 118,846,000 | |||
Common stock issued for employee stock-based awards | $ 18 | (18) | |||
Common stock issued for employee stock-based awards (in shares) | 1,702,000 | ||||
Shares surrendered by employees to pay taxes related to stock-based awards | $ (99,945) | $ (7) | (99,938) | ||
Shares surrendered by employees to pay taxes related to stock-based awards (in shares) | (601,000) | ||||
Common stock issued for employee stock purchase plan | 12,709 | $ 1 | 12,708 | ||
Common stock issued for employee stock purchase plan (in shares) | 102,000 | ||||
Compensation expense from stock-based awards | 176,958 | 176,958 | |||
Net Income (Loss) | 249,810 | 249,810 | |||
Gain/Loss on net investment hedges, net of tax | (2,787) | (2,787) | |||
Foreign currency translation adjustment | 538 | 538 | |||
Change in defined benefit pension items, net of tax | 106 | 106 | |||
Ending balance at Jun. 30, 2024 | $ 3,014,679 | $ 1,200 | 1,910,615 | 1,223,087 | (120,223) |
Ending balance (in shares) at Jun. 30, 2024 | 120,049,000 | 120,049,000 | |||
Beginning balance at Mar. 31, 2024 | $ 2,943,132 | $ 1,197 | 1,901,109 | 1,154,109 | (113,283) |
Beginning balance (in shares) at Mar. 31, 2024 | 119,717,000 | ||||
Common stock issued for employee stock-based awards | $ 5 | (5) | |||
Common stock issued for employee stock-based awards (in shares) | 486,000 | ||||
Shares surrendered by employees to pay taxes related to stock-based awards | (28,071) | $ (2) | (28,069) | ||
Shares surrendered by employees to pay taxes related to stock-based awards (in shares) | (154,000) | ||||
Compensation expense from stock-based awards | 37,580 | 37,580 | |||
Net Income (Loss) | 68,978 | 68,978 | |||
Gain/Loss on net investment hedges, net of tax | 2,292 | 2,292 | |||
Foreign currency translation adjustment | (9,344) | (9,344) | |||
Change in defined benefit pension items, net of tax | 112 | 112 | |||
Ending balance at Jun. 30, 2024 | $ 3,014,679 | $ 1,200 | $ 1,910,615 | $ 1,223,087 | $ (120,223) |
Ending balance (in shares) at Jun. 30, 2024 | 120,049,000 | 120,049,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 68,978 | $ 61,398 | $ 249,810 | $ 199,937 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Director and Executive Officer Adoption, Modification or Termination of 10b5-1 Plans in Q3'24 Our section 16 officers and directors may enter into plans or arrangements for the purchase or sale of our securities that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act. Such plans and arrangements must comply in all respects with our insider trading policies, including our policy governing entry into and operation of 10b5-1 plans and arrangements. During the quarter ended June 30, 2024, the below Section 16 officers and directors adopted Rule-10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K of the Securities Exchange Act of 1934, as amended). All plans adopted covered only sales of PTC common stock. No plans were modified or terminated . Name and Title of Director or Section 16 Officer Date of Adoption, Modification, or Termination Duration of the Plan Aggregate Number of Shares of Common Stock that may be Sold under the Plan Corinna Lathan Director Adopted May 24, 2024 Ends September 30, 2025 3,817 |
Rule 10b5-1 Arrangement Terminated | false |
Rule 10b51 Arr Modified Flag | false |
Corinna Lathan [Member] | |
Trading Arrangements, by Individual | |
Name | Corinna Lathan |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 24, 2024 |
Expiration Date | September 30, 2025 |
Arrangement Duration | 495 days |
Aggregate Available | 3,817 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation General The accompanying unaudited condensed consolidated financial statements include the accounts of PTC Inc. and its wholly owned subsidiaries and have been prepared by management in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and in accordance with the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. While we believe that the disclosures presented are adequate in order to make the information not misleading, these unaudited quarterly financial statements should be read in conjunction with our annual consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of those of a normal recurring nature, necessary for a fair statement of our financial position, results of operations and cash flows as of the dates and for the periods indicated. The September 30, 2023 Consolidated Balance Sheet included herein is derived from our audited consolidated financial statements. Unless otherwise indicated, all references to a year mean our fiscal year, which ends on September 30. Pending Accounting Pronouncements Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU will be effective for us in 2026. We expect the adoption to result in disclosure changes only. Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU will be effective for us in 2025. We expect the adoption to result in disclosure changes only. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers Receivables, Co ntract Assets and Contract Liabilities (in thousands) June 30, September 30, Short-term and long-term receivables $ 840,382 $ 997,490 Contract asset $ 13,443 $ 16,465 Deferred revenue $ 687,614 $ 681,550 During the nine months ended June 30, 2024, we recognized $ 619.2 million of revenue that was included in Deferred revenue as of September 30, 2023. The remainder of the change was driven by additional deferrals, primarily from new billings. Our multi-year, non-cancellable on-premises subscription contracts provide customers with an annual right to exchange software within the subscription with other software. As of June 30, 2024 and September 30, 2023, our total revenue liability was $ 27.0 million and $ 23.7 million, respectively, primarily associated with the annual right to exchange on-premises subscription software. Remaining Performance Obligations Our contracts with customers include transaction price amounts allocated to performance obligations that will be satisfied and recognized as revenue at a later date. As of June 30, 2024, the transaction price amounts include performance obligations of $ 687.6 million recorded in Deferred revenue and $ 1,382.2 million that are not yet recorded in the Consolidated Balance Sheets. Of the total $ 2,069.8 million, we expect to recognize app roximately 59 % over the next 12 months, 26 % over the next 13 to 24 months, and the remaining amount therea fter. Disaggregation of Revenue (in thousands) Three months ended Nine months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Recurring revenue (1) $ 481,559 $ 498,410 $ 1,551,600 $ 1,407,662 Perpetual license 7,050 8,251 22,243 30,417 Professional services 30,030 35,681 98,082 112,354 Total revenue $ 518,639 $ 542,342 $ 1,671,925 $ 1,550,433 (1) Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue. Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below. (in thousands) Three months ended Nine months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Americas $ 253,592 $ 278,329 $ 781,480 $ 761,617 Europe 170,617 173,559 624,884 549,835 Asia Pacific 94,430 90,454 265,561 238,981 Total revenue $ 518,639 $ 542,342 $ 1,671,925 $ 1,550,433 |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Recognized Amount [Abstract] | |
Stock-Based Compensation | 3. Stock-based Compensation The value of stock issued for vested restricted stock units (RSUs) is as follows: (in thousands) Three months ended Nine months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Stock issued for vested RSUs $ 88,803 $ 79,129 $ 283,975 $ 235,430 Compensation expense recorded for our stock-based awards is classified in our Consolidated Statements of Operations as follows: (in thousands) Three months ended Nine months ended June 30, June 30, June 30, June 30, Cost of license revenue $ 49 $ 53 $ 116 $ 141 Cost of support and cloud services revenue 4,035 3,479 10,762 9,464 Cost of professional services revenue 1,772 2,315 5,101 6,063 Sales and marketing 15,167 14,513 46,023 39,554 Research and development 13,101 14,801 41,275 41,839 General and administrative 13,914 18,657 57,965 50,507 Total stock-based compensation expense $ 48,038 $ 53,818 $ 161,242 $ 147,568 As of June 30, 2024 and September 30, 2023 , we had liability-classified awards related to stock-based compensation based on a fixed monetary amount of $ 29.1 million and $ 44.9 million, respectively. |
Earnings per Share (EPS) and Co
Earnings per Share (EPS) and Common Stock | 9 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share And Common Stock [Abstract] | |
Earnings per Share (EPS) and Common Stock | 4. Earnings per Share (EPS) and Common Stock EPS The following table presents the calculation for both basic and diluted EPS: (in thousands, except per share data) Three months ended Nine months ended June 30, June 30, June 30, June 30, Net income $ 68,978 $ 61,398 $ 249,810 $ 199,937 Weighted-average shares outstanding—Basic 119,893 118,483 119,533 118,186 Dilutive effect of restricted stock units 929 909 1,060 886 Weighted-average shares outstanding—Diluted 120,822 119,392 120,593 119,072 Earnings per share—Basic $ 0.58 $ 0.52 $ 2.09 $ 1.69 Earnings per share—Diluted $ 0.57 $ 0.51 $ 2.07 $ 1.68 Anti-dilutive shares were immaterial for the three and nine months ended June 30, 2024 and June 30, 2023 . |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions Acquisition and transaction-related costs for the third quarter and first nine months of 2024 totaled $ 0.2 million and $ 3.0 million, respectively, compared to $ 0.8 million and $ 18.5 million in the third quarter and first nine months of 2023, respectively. These costs are classified in General and administrative expense in the accompanying Consolidated Statements of Operations. pure-systems On October 4, 2023, we acquired pure-systems GmbH pursuant to a Share Purchase Agreement. pure-systems is a leading provider of product and software variant management solutions used by manufacturing companies to efficiently manage the different versions of software and systems engineering assets. The purchase price was $ 93.5 million, net of cash acquired, which we financed primarily with a draw on the revolving line of our credit facility. pure-systems had approximately 50 employees on the close date. The acquisition of pure-systems has been accounted for as a business combination. Assets and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The fair values of intangible assets were based on valuations using a discounted cash flow model which requires the use of significant estimates and assumptions, including estimating future revenues and costs. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The following table outlines the purchase price allocation for pure-systems: (in thousands) Goodwill $ 77,118 Customer relationships 17,400 Purchased software 10,000 Trademarks 800 Net tax liability ( 8,860 ) Acquired debt ( 2,475 ) Other net liabilities ( 526 ) Total $ 93,457 The acquired customer relationships, purchased software, and trademarks are being amortized over useful lives o f 18 years, 10 years, and 10 years, respectively, based on the expected economic benefit pattern of the assets. The acquired goodwill will not be deductible for income tax purposes. The amount of goodwill resulting from the purchase price allocation reflects the expected value that will be created by expanding our application lifecycle management (ALM) offerings, which are included within our PLM product group. Our results of operations for the reported periods if presented on a pro forma basis would not differ materially from our reported results. ServiceMax On January 3, 2023, we acquired ServiceMax, Inc. pursuant to a Share Purchase Agreement dated November 17, 2022 for $ 1,448.2 million, net of cash acquired. PTC paid the first installment of $ 828.2 million on the acquisition date. The remaining installment of $ 650.0 million, of which $ 620.0 million represented the fair value as of the acquisition date and $ 30.0 million was imputed interest, was paid in October 2023. The fair value of the deferred acquisition payment was calculated based on our borrowing rate at the time of the acquisition. The purchase price allocation resulted in $ 974.9 million of Goodwill, $ 628.6 million of intangible assets, $ 121.7 million of net tax liabilities, and $ 33.6 million of other net liabilities. ServiceMax develops and licenses cloud-native, product-centric field service management (FSM) software, which is included within our PLM product group. ServiceMax had approximately 500 employees on the close date. Unaudited Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of operations for PTC and ServiceMax for the pro forma nine months ended June 30, 2023. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2022. Since the acquisition took place in fiscal 2023, the unaudited pro forma financial information was prepared as though ServiceMax was acquired at the beginning of fiscal 2022. The unaudited pro forma financial information for all periods presented includes adjustments to reflect certain business combination effects, including: amortization of acquired intangible assets, including the elimination of related ServiceMax expenses; acquisition-related costs incurred by both parties; reversal of certain costs incurred by ServiceMax which would not have been incurred had the acquisition occurred at the beginning of fiscal 2022; interest expense under the new combined capital structure; stock-based compensation charges; and the related tax effects as though ServiceMax was acquired as of the beginning of fiscal 2022. The unaudited pro forma financial information for t he nine months ended June 30, 2023 presented below combines the historical results of PTC for those periods, the historical results of ServiceMax for the three months ended January 31, 2023, and the effects of the pro forma adjustments listed above. (in thousands) Pro forma nine months ended June 30, 2023 Revenue $ 1,594,118 Net income $ 193,834 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets During the third fiscal quarter of 2024, we completed our annual impairment test of goodwill, which was based on a qualitative assessment, and concluded that there was no impairment. A qualitative assessment is designed to determine whether we believe it is more likely than not that the fair values of our reporting units exceed their carrying values. A qualitative assessment includes a review of qualitative factors, including company-specific (financial performance and long-range plans), industry, and macroeconomic factors, and a consideration of the fair value of each reporting unit at the last valuation date. Goodwill and acquired intangible assets consisted of the following: (in thousands) June 30, 2024 September 30, 2023 Gross Accumulated Net Book Gross Accumulated Net Book Goodwill (not amortized) $ 3,442,245 $ 3,358,511 Intangible assets with finite lives (amortized): Purchased software $ 627,099 $ 424,643 $ 202,456 $ 615,915 $ 395,109 $ 220,806 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 1,135,067 443,644 691,423 1,116,117 413,125 702,992 Trademarks and trade names 37,727 21,101 16,626 36,851 19,400 17,451 Other 3,886 3,886 — 3,867 3,867 — Total intangible assets with finite lives $ 1,826,656 $ 916,151 $ 910,505 $ 1,795,627 $ 854,378 $ 941,249 Total goodwill and acquired intangible assets $ 4,352,750 $ 4,299,760 Changes in Goodwill were as follows: (in thousands) Balance, October 1, 2023 $ 3,358,511 Acquisitions 77,118 Foreign currency translation adjustment 6,616 Balance, June 30, 2024 $ 3,442,245 The aggregate amortization expense for intangible assets with finite lives is classified in our Consolidated Statements of Operations as follows: (in thousands) Three months ended Nine months ended June 30, June 30, June 30, June 30, Amortization of acquired intangible assets $ 10,672 $ 10,670 $ 31,459 $ 29,352 Cost of revenue 9,685 9,841 28,835 25,817 Total amortization expense $ 20,357 $ 20,511 $ 60,294 $ 55,169 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements The valuation hierarchy for disclosure of assets and liabilities reported at fair value prioritizes the inputs for such valuations into three broad levels: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; or • Level 3: unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset's or liability's classification within the hierarchy is determined based on the lowest level 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. The principal market in which we execute our foreign currency derivatives is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants are generally large financial institutions. Our foreign currency derivatives’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy. Our significant financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and September 30, 2023 were as follows: (in thousands) June 30, 2024 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 41,103 $ — $ — $ 41,103 Forward contracts — 181 — 181 $ 41,103 $ 181 $ — $ 41,284 Financial liabilities: Forward contracts — 2,103 — 2,103 $ — $ 2,103 $ — $ 2,103 (in thousands) September 30, 2023 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 72,754 $ — $ — $ 72,754 Convertible note — — 2,000 2,000 Forward contracts — 7,340 — 7,340 $ 72,754 $ 7,340 $ 2,000 $ 82,094 Financial liabilities: Forward contracts — 3,158 — 3,158 $ — $ 3,158 $ — $ 3,158 (1) Money market funds and time deposits. Level 3 Investments Convertible Note In the fourth quarter of 2021, we invested $ 2.0 million in a non-marketable convertible note. This debt security was classified as available-for-sale and included in Other assets on the Consolidated Balance Sheet. During the nine months ended June 30, 2024, we recorded a $ 2.0 million impairment loss related to this Level 3 investment. The impairment loss is included in Other income (expense), net on the Consolidated Statements of Operations. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 8. Derivative Financial Instruments We enter into foreign currency forward contracts to manage our exposure to foreign currency exchange risk to reduce earnings volatility. We do not enter into derivative transactions for trading or speculative purposes. The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets: (in thousands) Fair Value of Derivatives Designated As Hedging Instruments Fair Value of Derivatives Not Designated As Hedging Instruments June 30, September 30, June 30, September 30, Derivative assets (1) : Forward contracts $ 81 $ 3,770 $ 100 $ 3,570 Derivative liabilities (2) : Forward contracts $ 681 $ — $ 1,422 $ 3,158 (1) As of June 30, 2024 and September 30, 2023 , current derivative assets are recorded in Other current assets in the Consolidated Balance Sheets. (2) As of June 30, 2024 and September 30, 2023 , current derivative liabilities are recorded in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. 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, gains or losses on the underlying foreign-denominated balance are generally offset by the losses or gains on the forward contract. Gains and losses on forward contracts and foreign denominated receivables and payables are included in Other income (expense), net. As of June 30, 2024 and September 30, 2023, we had outstanding forward contracts not designated as hedging instruments with notional amounts equivalent to the following: Currency Hedged (in thousands) June 30, September 30, Canadian Dollar / U.S. Dollar $ 5,125 $ 5,135 Euro / U.S. Dollar 396,345 383,227 British Pound / U.S. Dollar 13,460 6,058 Israeli Shekel / U.S. Dollar 12,091 11,852 Japanese Yen / U.S. Dollar 27,914 4,770 Swiss Franc / U.S. Dollar 16,743 32,766 Swedish Krona / U.S. Dollar 21,841 35,085 Chinese Renminbi / U.S. Dollar 4,209 16,660 New Taiwan Dollar / U.S. Dollar 8,915 11,855 Korean Won / U.S. Dollar — 6,157 Danish Krone / U.S. Dollar 3,353 6,731 All other 4,854 3,340 Total $ 514,850 $ 523,636 The following table shows the effect of our non-designated hedges on the Consolidated Statements of Operations for the three and nine months ended June 30, 2024 and June 30, 2023: (in thousands) Three months ended Nine months ended Location of Gain (Loss) June 30, June 30, June 30, June 30, Net realized and unrealized loss, excluding the underlying foreign currency exposure being hedged Other income (expense), net $ ( 1,590 ) $ ( 1,006 ) $ ( 6,611 ) $ ( 13,437 ) In the three months ended June 30, 2024, foreign currency losses , net were $ 1.7 million. In the three months ended June 30, 2023, foreign currency gains, net were $ 0.5 million. In the nine months ended June 30, 2024 and June 30, 2023, foreign currency losses , net were $ 1.8 million and $ 3.4 million, respectively. Net Investment Hedges We translate balance sheet accounts of subsidiaries with foreign functional currencies into the U.S. Dollar using the exchange rate at each balance sheet date. Resulting translation adjustments are reported as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. We designate certain foreign exchange forward contracts as net investment hedges against exposure on translation of balance sheet accounts of Euro and Japanese Yen functional subsidiaries. Net investment hedges partially offset the impact of Foreign currency translation adjustment recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheets. All foreign exchange forward contracts are carried at fair value on the Consolidated Balance Sheets and the maximum duration of net investment hedge foreign exchange forward contracts is approximately three mo nths . Net investment hedge relationships are designated at inception, and effectiveness is assessed retrospectively on a quarterly basis using the net equity position of Euro and Japanese Yen functional subsidiaries. As the forward contracts are highly effective in offsetting exchange rate exposure, we record changes in these net investment hedges in Accumulated other comprehensive loss and subsequently reclassify them to Foreign currency translation adjustment in Accumulated other comprehensive loss at the time of forward contract maturity. Changes in the fair value of foreign exchange forward contracts due to changes in time value are excluded from the assessment of effectiveness. Our derivatives are not subject to any credit contingent features. We manage credit risk with counterparties by trading among several counterparties and we review our counterparties’ credit at least quarterly. As of June 30, 2024 and September 30, 2023, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following: Currency Hedged (in thousands) June 30, September 30, Euro / U.S. Dollar $ 429,516 $ 337,923 Japanese Yen / U.S. Dollar 9,495 10,285 Total $ 439,011 $ 348,208 The following table shows the effect of our derivative instruments designated as net investment hedges in the Consolidated Statements of Operations for the three and nine months ended June 30, 2024 and June 30, 2023: (in thousands) Three months ended Nine months ended Location of Gain (Loss) June 30, June 30, June 30, June 30, Gain (loss) recognized in OCI OCI $ 3,047 $ ( 695 ) $ ( 3,705 ) $ ( 18,663 ) Gain (loss) reclassified from OCI to earnings n/a $ — $ — $ — $ — Gain recognized , excluded portion Other income (expense), net $ 946 $ 1,124 $ 3,161 $ 3,272 As of June 30, 2024, we estimate that all amounts reported in Accumulated other comprehensive loss will be applied against exposed balance sheet accounts upon translation within the next three months. Offsetting Derivative Assets and Liabilities We have entered into master netting arrangements for our forward contracts that allow net settlements under certain conditions. Although netting is permitted, it is currently our policy and practice to record all derivative assets and liabilities on a gross basis in the Consolidated Balance Sheets. The following table sets forth the offsetting of derivative assets as of June 30, 2024: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of June 30, 2024 Gross Gross Net Amounts of Financial Cash Net Forward contracts $ 181 $ — $ 181 $ ( 181 ) $ — $ — The following table sets forth the offsetting of derivative liabilities as of June 30, 2024: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of June 30, 2024 Gross Gross Net Amounts of Financial Cash Net Forward contracts $ 2,103 $ — $ 2,103 $ ( 181 ) $ — $ 1,922 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes (in thousands) Three months ended Nine months ended June 30, June 30, June 30, June 30, Income before income taxes $ 67,373 $ 76,526 $ 298,717 $ 244,019 Provision (benefit) for income taxes $ ( 1,605 ) $ 15,128 $ 48,907 $ 44,082 Effective income tax rate ( 2 )% 20 % 16 % 18 % The effective tax rate for the three and nine months ended June 30, 2024 was lower than the effective tax rate for the corresponding prior-year periods primarily du e to changes in the geographic mix of income before taxes and the effects of IRS procedural guidance requiring IRS consent for certain previously automatic changes of accounting method. The IRS procedural guidance change significantly increased our estimated taxable income for the year ended September 30, 2024, resulting in an increase to the estimated tax benefit for the deductions associated with Global Intangible Low-Taxed Income and Foreign-Derived Intangible Income. The benefit from this IRS procedural guidance change for the three and nine months ended June 30, 2024 will reverse in a future fiscal period if we receive IRS consent for a change in the treatment of these deductions. For the nine months ended June 30, 2024, this was offset by a tax expense of $ 3.6 million related to a tax reserve in a foreign jurisdiction. In the normal course of business, PTC and its subsidiaries are examined by various taxing authorities, including the Internal Revenue Service in the U.S. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. We are currently under audit by tax authorities in several jurisdictions. Audits by tax authorities typically involve examination of the deductibility of certain permanent items, transfer pricing, limitations on net operating losses and tax credits. |
Debt
Debt | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt As of June 30, 2024 and September 30, 2023, we had the following debt obligations: (in thousands) June 30, September 30, 4.000% Senior notes due 2028 $ 500,000 $ 500,000 3.625% Senior notes due 2025 500,000 500,000 Credit facility revolver line (1)(2) 322,000 202,000 Credit facility term loan (1)(2) 493,750 500,000 Total debt 1,815,750 1,702,000 Unamortized debt issuance costs for the senior notes (3) ( 4,596 ) ( 6,215 ) Total debt, net of issuance costs (4) $ 1,811,154 $ 1,695,785 (1) Unamortized debt issuance costs related to the credit facility were $ 2.3 million included in Other current assets and $ 5.8 million included in Other assets on the Consolidated Balance Sheet as of June 30, 2024 and $ 2.3 million included in Other current assets and $ 7.5 million included in Other assets on the Consolidated Balance Sheet as of September 30, 2023 . (2) The stated maturity date under the credit facility on which both the revolver line and the term loan will mature and all amounts then outstanding will become due and payable is January 3, 2028 . However, if our outstanding 2025 Senior Notes have not been refinanced to mature on or after April 3, 2028 or redeemed by November 16, 2024, all amounts outstanding under the credit facility will become due and payable on November 16, 2024. The term loan began amortizing in March 2024, with payment s of $3 .1 million remaining in 2024, $ 21.9 million in 2025, $ 25.0 million in 2026 and 2027, and $ 418.7 million in 2028. (3) Of the unamortized debt issuance costs for the senior notes, $ 0.7 million was included in Current portion of long-term debt and $3 .9 million was included in Long-term debt o n the Consolidated Balance Sheet as of June 30, 2024 . As of September 30, 2023, all unamortized debt issuance costs for the senior notes were included in Long-term debt on the Consolidated Balance Sheet. (4) As of June 30, 2024, $ 518.1 million of debt was classifie d as short term, including $ 499.3 million associated with the 2025 senior notes and related debt issuance costs and $ 18.8 million associated with the credit facility term loan . As of September 30, 2023, $ 9.4 million of debt associated with the credit facility term loan w as classified as short term with the remaining balance classified as long term. Senior Unsecured Notes In February 2020, we issued $ 500 million in aggregate principal amount of 4.0 % senior, unsecured long-term debt at par value, due in 2028 (the 2028 notes) and $ 500 million in aggregate principal amount of 3.625 % senior, unsecured long-term debt at par value, due in 2025 (the 2025 notes). As of June 30, 2024, the total estimated fair value of the 2028 and 2025 notes was approximately $ 471.9 million and $ 493.6 million, respectively, based on quoted prices for the notes on that date. We were in compliance with all the covenants for all our senior notes as of June 30, 2024. Credit Agreement Our credit facility consists of (i) a $ 1.25 billion revolving credit facility, (ii) a $ 500 million term loan credit facility, and (iii) an incremental facility pursuant to which we may incur additional term loan tranches or increase the revolving credit facility. As of June 30, 2024, unused commitments under our credit facility were $ 928.0 million and amounts available for borrowing were $ 912.1 million. As of June 30, 2024, the fair value of our credit facility approximates its book value. PTC and certain eligible foreign subsidiaries are eligible borrowers under the credit facility. As of June 30, 2024, $ 123.0 million was borrowed by an eligible foreign subsidiary borrower. Loans under the credit facility bear interest at variable rates. As of June 30, 2024, the annual rate for borrowings outstanding was 6.9 % . A quarterly revolving commitment fee on the undrawn portion of the revolving credit facility is required, ranging from 0.175 % to 0.325 % per annum, based upon our total leverage ratio. As of June 30, 2024, we were in compliance with all financial and operating covenants of the credit facility. Interest We incurred interest expense on our debt of $ 27.8 million and $ 94.7 million in the third quarter and first nine months of 2024, respectively, and $ 35.8 million and $ 93.7 million in the third quarter and first nine months of 2023, respective ly. Interest expense in the third quarter and first nine months of 2023 included $ 10.0 million and $ 20.0 million, respectively, of interest associated with the $ 650.0 million ServiceMax deferred acquisition payment that we settled in the first quarter of 2024. The average interest rate on borrowings outstanding was approximately 5.3 % and 5.5 % during the third quarter and first nine months of 2024, respectively, and 5.2 % and 4.8 % during the third quarter and first nine months of 2023 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Guarantees and Indemnification Obligations We enter into standard indemnification agreements with our customers and business partners in the ordinary course of our business. Under such agreements, we typically indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to our products. Indemnification may also cover other types of claims, including claims relating to certain data breaches. These agreements typically limit our liability with respect to indemnification claims other than intellectual property infringement claims. Historically, our costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and, accordingly, we believe the estimated fair value of liabilities under these agreements is immaterial. We warrant that our software products will perform in all material respects in accordance with our standard published specifications during the term of the license. Additionally, we generally warrant that our consulting services will be performed consistent with generally accepted industry standards and, in the case of fixed price services, the agreed-upon specifications. In most cases, liability for these warranties is capped. If necessary, we would provide for the estimated cost of product and service warranties based on specific warranty claims and claim history; however, we have not incurred significant cost under our product or services warranties. As a result, we believe the estimated fair value of these liabilities is immaterial. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Receivables, Contract Assets and Liabilities | Receivables, Co ntract Assets and Contract Liabilities (in thousands) June 30, September 30, Short-term and long-term receivables $ 840,382 $ 997,490 Contract asset $ 13,443 $ 16,465 Deferred revenue $ 687,614 $ 681,550 |
Disaggregation of Revenue | Disaggregation of Revenue (in thousands) Three months ended Nine months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Recurring revenue (1) $ 481,559 $ 498,410 $ 1,551,600 $ 1,407,662 Perpetual license 7,050 8,251 22,243 30,417 Professional services 30,030 35,681 98,082 112,354 Total revenue $ 518,639 $ 542,342 $ 1,671,925 $ 1,550,433 (1) Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue. |
Summary of Revenue for Geographic Regions | Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below. (in thousands) Three months ended Nine months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Americas $ 253,592 $ 278,329 $ 781,480 $ 761,617 Europe 170,617 173,559 624,884 549,835 Asia Pacific 94,430 90,454 265,561 238,981 Total revenue $ 518,639 $ 542,342 $ 1,671,925 $ 1,550,433 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Recognized Amount [Abstract] | |
Schedule of Total Fair Value of Vested RSUs | The value of stock issued for vested restricted stock units (RSUs) is as follows: (in thousands) Three months ended Nine months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Stock issued for vested RSUs $ 88,803 $ 79,129 $ 283,975 $ 235,430 |
Schedule of Classification of Compensation Expense | Compensation expense recorded for our stock-based awards is classified in our Consolidated Statements of Operations as follows: (in thousands) Three months ended Nine months ended June 30, June 30, June 30, June 30, Cost of license revenue $ 49 $ 53 $ 116 $ 141 Cost of support and cloud services revenue 4,035 3,479 10,762 9,464 Cost of professional services revenue 1,772 2,315 5,101 6,063 Sales and marketing 15,167 14,513 46,023 39,554 Research and development 13,101 14,801 41,275 41,839 General and administrative 13,914 18,657 57,965 50,507 Total stock-based compensation expense $ 48,038 $ 53,818 $ 161,242 $ 147,568 |
Earnings per Share (EPS) and _2
Earnings per Share (EPS) and Common Stock (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share And Common Stock [Abstract] | |
Earnings per Share Basic and Diluted | The following table presents the calculation for both basic and diluted EPS: (in thousands, except per share data) Three months ended Nine months ended June 30, June 30, June 30, June 30, Net income $ 68,978 $ 61,398 $ 249,810 $ 199,937 Weighted-average shares outstanding—Basic 119,893 118,483 119,533 118,186 Dilutive effect of restricted stock units 929 909 1,060 886 Weighted-average shares outstanding—Diluted 120,822 119,392 120,593 119,072 Earnings per share—Basic $ 0.58 $ 0.52 $ 2.09 $ 1.69 Earnings per share—Diluted $ 0.57 $ 0.51 $ 2.07 $ 1.68 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Business Acquisition [Line Items] | |
Unaudited Pro Forma Financial Information | The unaudited pro forma financial information for t he nine months ended June 30, 2023 presented below combines the historical results of PTC for those periods, the historical results of ServiceMax for the three months ended January 31, 2023, and the effects of the pro forma adjustments listed above. (in thousands) Pro forma nine months ended June 30, 2023 Revenue $ 1,594,118 Net income $ 193,834 |
Pure System | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | The following table outlines the purchase price allocation for pure-systems: (in thousands) Goodwill $ 77,118 Customer relationships 17,400 Purchased software 10,000 Trademarks 800 Net tax liability ( 8,860 ) Acquired debt ( 2,475 ) Other net liabilities ( 526 ) Total $ 93,457 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Acquired Intangible Assets | Goodwill and acquired intangible assets consisted of the following: (in thousands) June 30, 2024 September 30, 2023 Gross Accumulated Net Book Gross Accumulated Net Book Goodwill (not amortized) $ 3,442,245 $ 3,358,511 Intangible assets with finite lives (amortized): Purchased software $ 627,099 $ 424,643 $ 202,456 $ 615,915 $ 395,109 $ 220,806 Capitalized software 22,877 22,877 — 22,877 22,877 — Customer lists and relationships 1,135,067 443,644 691,423 1,116,117 413,125 702,992 Trademarks and trade names 37,727 21,101 16,626 36,851 19,400 17,451 Other 3,886 3,886 — 3,867 3,867 — Total intangible assets with finite lives $ 1,826,656 $ 916,151 $ 910,505 $ 1,795,627 $ 854,378 $ 941,249 Total goodwill and acquired intangible assets $ 4,352,750 $ 4,299,760 |
Schedule of Changes in Goodwill by Reportable Segments | Changes in Goodwill were as follows: (in thousands) Balance, October 1, 2023 $ 3,358,511 Acquisitions 77,118 Foreign currency translation adjustment 6,616 Balance, June 30, 2024 $ 3,442,245 |
Schedule of Aggregate Amortization Expense for Intangible Assets with Finite Lives | The aggregate amortization expense for intangible assets with finite lives is classified in our Consolidated Statements of Operations as follows: (in thousands) Three months ended Nine months ended June 30, June 30, June 30, June 30, Amortization of acquired intangible assets $ 10,672 $ 10,670 $ 31,459 $ 29,352 Cost of revenue 9,685 9,841 28,835 25,817 Total amortization expense $ 20,357 $ 20,511 $ 60,294 $ 55,169 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | Our significant financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and September 30, 2023 were as follows: (in thousands) June 30, 2024 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 41,103 $ — $ — $ 41,103 Forward contracts — 181 — 181 $ 41,103 $ 181 $ — $ 41,284 Financial liabilities: Forward contracts — 2,103 — 2,103 $ — $ 2,103 $ — $ 2,103 (in thousands) September 30, 2023 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents (1) $ 72,754 $ — $ — $ 72,754 Convertible note — — 2,000 2,000 Forward contracts — 7,340 — 7,340 $ 72,754 $ 7,340 $ 2,000 $ 82,094 Financial liabilities: Forward contracts — 3,158 — 3,158 $ — $ 3,158 $ — $ 3,158 (1) Money market funds and time deposits. Level 3 Investments Convertible Note In the fourth quarter of 2021, we invested $ 2.0 million in a non-marketable convertible note. This debt security was classified as available-for-sale and included in Other assets on the Consolidated Balance Sheet. During the nine months ended June 30, 2024, we recorded a $ 2.0 million impairment loss related to this Level 3 investment. The impairment loss is included in Other income (expense), net on the Consolidated Statements of Operations. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets: (in thousands) Fair Value of Derivatives Designated As Hedging Instruments Fair Value of Derivatives Not Designated As Hedging Instruments June 30, September 30, June 30, September 30, Derivative assets (1) : Forward contracts $ 81 $ 3,770 $ 100 $ 3,570 Derivative liabilities (2) : Forward contracts $ 681 $ — $ 1,422 $ 3,158 (1) As of June 30, 2024 and September 30, 2023 , current derivative assets are recorded in Other current assets in the Consolidated Balance Sheets. (2) As of June 30, 2024 and September 30, 2023 , current derivative liabilities are recorded in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. |
Schedule of Notional Amounts of Outstanding Forward Contracts and Options | As of June 30, 2024 and September 30, 2023, we had outstanding forward contracts not designated as hedging instruments with notional amounts equivalent to the following: Currency Hedged (in thousands) June 30, September 30, Canadian Dollar / U.S. Dollar $ 5,125 $ 5,135 Euro / U.S. Dollar 396,345 383,227 British Pound / U.S. Dollar 13,460 6,058 Israeli Shekel / U.S. Dollar 12,091 11,852 Japanese Yen / U.S. Dollar 27,914 4,770 Swiss Franc / U.S. Dollar 16,743 32,766 Swedish Krona / U.S. Dollar 21,841 35,085 Chinese Renminbi / U.S. Dollar 4,209 16,660 New Taiwan Dollar / U.S. Dollar 8,915 11,855 Korean Won / U.S. Dollar — 6,157 Danish Krone / U.S. Dollar 3,353 6,731 All other 4,854 3,340 Total $ 514,850 $ 523,636 As of June 30, 2024 and September 30, 2023, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following: Currency Hedged (in thousands) June 30, September 30, Euro / U.S. Dollar $ 429,516 $ 337,923 Japanese Yen / U.S. Dollar 9,495 10,285 Total $ 439,011 $ 348,208 |
Schedule of Net Gains and Losses on Foreign Currency Exposures | The following table shows the effect of our non-designated hedges on the Consolidated Statements of Operations for the three and nine months ended June 30, 2024 and June 30, 2023: (in thousands) Three months ended Nine months ended Location of Gain (Loss) June 30, June 30, June 30, June 30, Net realized and unrealized loss, excluding the underlying foreign currency exposure being hedged Other income (expense), net $ ( 1,590 ) $ ( 1,006 ) $ ( 6,611 ) $ ( 13,437 ) The following table shows the effect of our derivative instruments designated as net investment hedges in the Consolidated Statements of Operations for the three and nine months ended June 30, 2024 and June 30, 2023: (in thousands) Three months ended Nine months ended Location of Gain (Loss) June 30, June 30, June 30, June 30, Gain (loss) recognized in OCI OCI $ 3,047 $ ( 695 ) $ ( 3,705 ) $ ( 18,663 ) Gain (loss) reclassified from OCI to earnings n/a $ — $ — $ — $ — Gain recognized , excluded portion Other income (expense), net $ 946 $ 1,124 $ 3,161 $ 3,272 |
Schedule of Offsetting Assets | The following table sets forth the offsetting of derivative assets as of June 30, 2024: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of June 30, 2024 Gross Gross Net Amounts of Financial Cash Net Forward contracts $ 181 $ — $ 181 $ ( 181 ) $ — $ — |
Schedule of Offsetting Liabilities | The following table sets forth the offsetting of derivative liabilities as of June 30, 2024: (in thousands) Gross Amounts Offset in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets As of June 30, 2024 Gross Gross Net Amounts of Financial Cash Net Forward contracts $ 2,103 $ — $ 2,103 $ ( 181 ) $ — $ 1,922 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Taxes | (in thousands) Three months ended Nine months ended June 30, June 30, June 30, June 30, Income before income taxes $ 67,373 $ 76,526 $ 298,717 $ 244,019 Provision (benefit) for income taxes $ ( 1,605 ) $ 15,128 $ 48,907 $ 44,082 Effective income tax rate ( 2 )% 20 % 16 % 18 % |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Obligations | As of June 30, 2024 and September 30, 2023, we had the following debt obligations: (in thousands) June 30, September 30, 4.000% Senior notes due 2028 $ 500,000 $ 500,000 3.625% Senior notes due 2025 500,000 500,000 Credit facility revolver line (1)(2) 322,000 202,000 Credit facility term loan (1)(2) 493,750 500,000 Total debt 1,815,750 1,702,000 Unamortized debt issuance costs for the senior notes (3) ( 4,596 ) ( 6,215 ) Total debt, net of issuance costs (4) $ 1,811,154 $ 1,695,785 (1) Unamortized debt issuance costs related to the credit facility were $ 2.3 million included in Other current assets and $ 5.8 million included in Other assets on the Consolidated Balance Sheet as of June 30, 2024 and $ 2.3 million included in Other current assets and $ 7.5 million included in Other assets on the Consolidated Balance Sheet as of September 30, 2023 . (2) The stated maturity date under the credit facility on which both the revolver line and the term loan will mature and all amounts then outstanding will become due and payable is January 3, 2028 . However, if our outstanding 2025 Senior Notes have not been refinanced to mature on or after April 3, 2028 or redeemed by November 16, 2024, all amounts outstanding under the credit facility will become due and payable on November 16, 2024. The term loan began amortizing in March 2024, with payment s of $3 .1 million remaining in 2024, $ 21.9 million in 2025, $ 25.0 million in 2026 and 2027, and $ 418.7 million in 2028. (3) Of the unamortized debt issuance costs for the senior notes, $ 0.7 million was included in Current portion of long-term debt and $3 .9 million was included in Long-term debt o n the Consolidated Balance Sheet as of June 30, 2024 . As of September 30, 2023, all unamortized debt issuance costs for the senior notes were included in Long-term debt on the Consolidated Balance Sheet. (4) As of June 30, 2024, $ 518.1 million of debt was classifie d as short term, including $ 499.3 million associated with the 2025 senior notes and related debt issuance costs and $ 18.8 million associated with the credit facility term loan . As of September 30, 2023, $ 9.4 million of debt associated with the credit facility term loan w as classified as short term with the remaining balance classified as long term. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Short-term and long-term receivables | $ 840,382 | $ 997,490 |
Contract asset | 13,443 | 16,465 |
Deferred revenue | $ 687,614 | $ 681,550 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | |
Revenue from External Customer [Line Items] | ||
Deferred revenue, revenue recognized | $ 619,200 | |
Deferred revenue | 687,614 | $ 681,550 |
Refund liability | 27,000 | $ 23,700 |
Revenue, remaining performance obligation, amount | 2,069,800 | |
Unrecorded | ||
Revenue from External Customer [Line Items] | ||
Revenue, remaining performance obligation, amount | $ 1,382,200 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Remaining Performance Obligations - Additional Information (Details) | Jun. 30, 2024 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, percentage | 59% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, percentage | 26% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01 | Maximum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01 | Minimum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 13 months |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Disaggregation Of Revenue [Line Items] | |||||
Revenue | $ 518,639 | $ 542,342 | $ 1,671,925 | $ 1,550,433 | |
Recurring revenue | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue | [1] | 481,559 | 498,410 | 1,551,600 | 1,407,662 |
Perpetual license | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue | 7,050 | 8,251 | 22,243 | 30,417 | |
Professional services | |||||
Disaggregation Of Revenue [Line Items] | |||||
Professional services | $ 30,030 | $ 35,681 | $ 98,082 | $ 112,354 | |
[1] Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue. |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Revenue By Geographic Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||||
Total revenue | $ 518,639 | $ 542,342 | $ 1,671,925 | $ 1,550,433 |
Operating Segments | ||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||
Total revenue | 518,639 | 542,342 | 1,671,925 | 1,550,433 |
Americas | Operating Segments | ||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||
Total revenue | 253,592 | 278,329 | 781,480 | 761,617 |
Europe | Operating Segments | ||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||
Total revenue | 170,617 | 173,559 | 624,884 | 549,835 |
Asia-Pacific | Operating Segments | ||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||
Total revenue | $ 94,430 | $ 90,454 | $ 265,561 | $ 238,981 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Liability classified awards related to stock-based compensation | $ 29.1 | $ 44.9 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Total Fair Value of RSUs Vested (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement, Recognized Amount [Abstract] | ||||
Stock issued for vested RSUs | $ 88,803 | $ 79,129 | $ 283,975 | $ 235,430 |
Stock-based Compensation - Sc_2
Stock-based Compensation - Schedule of Classification of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 48,038 | $ 53,818 | $ 161,242 | $ 147,568 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 15,167 | 14,513 | 46,023 | 39,554 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 13,101 | 14,801 | 41,275 | 41,839 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 13,914 | 18,657 | 57,965 | 50,507 |
License | Cost of Sales | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 49 | 53 | 116 | 141 |
Support and cloud services | Cost of Sales | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 4,035 | 3,479 | 10,762 | 9,464 |
Professional services | Cost of Sales | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 1,772 | $ 2,315 | $ 5,101 | $ 6,063 |
Earnings per Share (EPS) and _3
Earnings per Share (EPS) and Common Stock - Earnings per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share And Common Stock [Abstract] | ||||
Net Income (Loss) | $ 68,978 | $ 61,398 | $ 249,810 | $ 199,937 |
Weighted-average shares outstanding—Basic | 119,893 | 118,483 | 119,533 | 118,186 |
Dilutive effect of restricted stock units | 929 | 909 | 1,060 | 886 |
Weighted-average shares outstanding—Diluted | 120,822 | 119,392 | 120,593 | 119,072 |
Earnings per share—Basic | $ 0.58 | $ 0.52 | $ 2.09 | $ 1.69 |
Earnings per share—Diluted | $ 0.57 | $ 0.51 | $ 2.07 | $ 1.68 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 04, 2023 USD ($) Employees | Oct. 02, 2023 USD ($) | Jan. 03, 2023 USD ($) Employees | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | ||||||||
Business combination, acquisition related costs | $ 200 | $ 800 | $ 3,000 | $ 18,500 | ||||
Goodwill | $ 3,442,245 | 3,442,245 | $ 3,358,511 | |||||
Servicemax acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Preliminary purchase price | $ 828,200 | |||||||
Payments to acquire business, net of cash | $ 1,448,200 | |||||||
Deferred acquisition payments | $ 650,000 | $ 650,000 | ||||||
Payments to acquire business | 620,000 | |||||||
Imputed interest payable | $ 30,000 | |||||||
Number Of Employees | Employees | 500 | |||||||
Goodwill | $ 974,900 | |||||||
Intangible assets | 628,600 | |||||||
Net tax liabilities | 121,700 | |||||||
Other net liabilities | $ 33,600 | |||||||
Pure System | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire business, net of cash | $ 93,500 | |||||||
Number Of Employees | Employees | 50 | |||||||
Goodwill | $ 77,118 | |||||||
Other net liabilities | $ 526 | |||||||
Pure System | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived intangible asset, weighted average useful life | 18 years | |||||||
Intangible assets | $ 17,400 | |||||||
Pure System | Purchased Software | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived intangible asset, weighted average useful life | 10 years | |||||||
Intangible assets | $ 10,000 | |||||||
Pure System | Trademarks | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived intangible asset, weighted average useful life | 10 years | |||||||
Intangible assets | $ 800 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Oct. 04, 2023 | Sep. 30, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,442,245 | $ 3,358,511 | |
Pure System | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 77,118 | ||
Net tax liability | (8,860) | ||
Acquired debt | (2,475) | ||
Other net liabilities | (526) | ||
Total | 93,457 | ||
Customer relationships | Pure System | |||
Business Acquisition [Line Items] | |||
Intangible assets | 17,400 | ||
Purchased Software | Pure System | |||
Business Acquisition [Line Items] | |||
Intangible assets | 10,000 | ||
Trademarks | Pure System | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 800 |
Acquisitions - Schedule of Unau
Acquisitions - Schedule of Unaudited Pro Forma Financial Information (Details ) - Servicemax acquisition $ in Thousands | 9 Months Ended |
Jun. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 1,594,118 |
Net income | $ 193,834 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Asset Impairment Charges [Abstract] | |
Goodwill impairment | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Goodwill and Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Goodwill (not amortized) | $ 3,442,245 | $ 3,358,511 |
Intangible assets with finite lives (amortized), Gross Carrying Amount | 1,826,656 | 1,795,627 |
Intangible assets with finite lives (amortized), Accumulated Amortization | 916,151 | 854,378 |
Intangible assets with finite lives (amortized), Net Book Value | 910,505 | 941,249 |
Intangible Assets, Net (Including Goodwill) | 4,352,750 | 4,299,760 |
Purchased Software | ||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 627,099 | 615,915 |
Intangible assets with finite lives (amortized), Accumulated Amortization | 424,643 | 395,109 |
Intangible assets with finite lives (amortized), Net Book Value | 202,456 | 220,806 |
Capitalized Software | ||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 22,877 | 22,877 |
Intangible assets with finite lives (amortized), Accumulated Amortization | 22,877 | 22,877 |
Intangible assets with finite lives (amortized), Net Book Value | 0 | 0 |
Customer Lists and Relationships | ||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 1,135,067 | 1,116,117 |
Intangible assets with finite lives (amortized), Accumulated Amortization | 443,644 | 413,125 |
Intangible assets with finite lives (amortized), Net Book Value | 691,423 | 702,992 |
Trademarks and Trade Names | ||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 37,727 | 36,851 |
Intangible assets with finite lives (amortized), Accumulated Amortization | 21,101 | 19,400 |
Intangible assets with finite lives (amortized), Net Book Value | 16,626 | 17,451 |
Other | ||
Intangible assets with finite lives (amortized), Gross Carrying Amount | 3,886 | 3,867 |
Intangible assets with finite lives (amortized), Accumulated Amortization | 3,886 | 3,867 |
Intangible assets with finite lives (amortized), Net Book Value | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Changes in Goodwill by Reportable Segments (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Line Items] | |
Balance, October 1, 2023 | $ 3,358,511 |
Foreign currency translation adjustment | 6,616 |
Balance, June 30, 2024 | 3,442,245 |
Pure System | |
Goodwill [Line Items] | |
Goodwill, acquired | $ 77,118 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Aggregate Amortization Expense for Intangible Assets with Finite Lives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of acquired intangible assets | $ 10,672 | $ 10,670 | $ 31,459 | $ 29,352 |
Cost of revenue | 9,685 | 9,841 | 28,835 | 25,817 |
Total amortization expense | $ 20,357 | $ 20,511 | $ 60,294 | $ 55,169 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Financial assets: | ||
Cash equivalents | $ 41,103 | $ 72,754 |
Convertible note | $ 2,000 | |
Derivative Asset Statement of Financial Position Extensible Enumeration | Other assets | Other assets |
Financial assets, fair value | $ 41,284 | $ 82,094 |
Financial liabilities: | ||
Derivative Liability Statement Of Financial Position Extensible Enumeration | Other liabilities | Other liabilities |
Financial liabilities, fair value | $ 2,103 | $ 3,158 |
Forward Contracts | ||
Financial assets: | ||
Foreign currency contract, asset | 181 | 7,340 |
Financial liabilities: | ||
Foreign currency contracts, liability | 2,103 | 3,158 |
Level 1 | ||
Financial assets: | ||
Cash equivalents | 41,103 | 72,754 |
Convertible note | 0 | |
Financial assets, fair value | 41,103 | 72,754 |
Financial liabilities: | ||
Financial liabilities, fair value | 0 | 0 |
Level 1 | Forward Contracts | ||
Financial assets: | ||
Foreign currency contract, asset | 0 | 0 |
Financial liabilities: | ||
Foreign currency contracts, liability | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash equivalents | 0 | 0 |
Convertible note | 0 | |
Financial assets, fair value | 181 | 7,340 |
Financial liabilities: | ||
Financial liabilities, fair value | 2,103 | 3,158 |
Level 2 | Forward Contracts | ||
Financial assets: | ||
Foreign currency contract, asset | 181 | 7,340 |
Financial liabilities: | ||
Foreign currency contracts, liability | 2,103 | 3,158 |
Level 3 | ||
Financial assets: | ||
Cash equivalents | 0 | 0 |
Convertible note | 2,000 | |
Financial assets, fair value | 0 | 2,000 |
Financial liabilities: | ||
Financial liabilities, fair value | 0 | 0 |
Level 3 | Forward Contracts | ||
Financial assets: | ||
Foreign currency contract, asset | 0 | 0 |
Financial liabilities: | ||
Foreign currency contracts, liability | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Level 3 - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount invested in non-marketabel convertible note | $ 2 | |
Impairment loss related to investments | $ 2 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Derivative Financial Instruments at Gross Fair Value (Details) - Forward contracts - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gross Amount of Recognized Assets | [1] | $ 81 | $ 3,770 |
Gross Amount of Recognized Liabilities | [2] | 681 | 0 |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value of Derivatives Not Designated As Hedging Instruments | [1] | 100 | 3,570 |
Fair Value of Derivatives Not Designated As Hedging Instruments | [2] | $ 1,422 | $ 3,158 |
[1] As of June 30, 2024 and September 30, 2023 , current derivative assets are recorded in Other current assets in the Consolidated Balance Sheets. As of June 30, 2024 and September 30, 2023 , current derivative liabilities are recorded in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 1.7 | $ 0.5 | $ 1.8 | $ 3.4 |
Maximum | Forward contracts | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative, remaining maturity | 3 months | 3 months | ||
Maximum | Forward contracts | Designated as Hedging Instrument | Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Derivative, remaining maturity | 3 months | 3 months |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Notional Amounts of Outstanding Forward Contracts and Options (Details) - Not Designated as Hedging Instrument - Foreign Exchange Forward Contract and Options - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Derivative [Line Items] | ||
Notional amount | $ 514,850 | $ 523,636 |
Canadian / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 5,125 | 5,135 |
Euro / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 396,345 | 383,227 |
British Pound / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 13,460 | 6,058 |
Israeli Shekel / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 12,091 | 11,852 |
Japanese Yen / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 27,914 | 4,770 |
Swiss Franc / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 16,743 | 32,766 |
Swedish Krona / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 21,841 | 35,085 |
Chinese Renminbi / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 4,209 | 16,660 |
New Taiwan Dollar / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 8,915 | 11,855 |
Korean Won / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 0 | 6,157 |
Danish Krone / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 3,353 | 6,731 |
All other | ||
Derivative [Line Items] | ||
Notional amount | $ 4,854 | $ 3,340 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Derivative Instruments and Hedging Activities Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in OCI | $ 2,292 | $ (521) | $ (2,787) | $ (14,005) |
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | Nonoperating Income (Expense) | Nonoperating Income (Expense) | Nonoperating Income (Expense) |
Foreign Exchange Forward Contract and Options | Not Designated as Hedging Instrument | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | Nonoperating Income (Expense) | Nonoperating Income (Expense) | Nonoperating Income (Expense) |
Foreign Exchange Forward Contract and Options | Not Designated as Hedging Instrument | Other income (expense), net | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Net realized and unrealized loss, excluding the underlying foreign currency exposure being hedged | $ (1,590) | $ (1,006) | $ (6,611) | $ (13,437) |
Forward Contracts | Designated as Hedging Instrument | Net Investment Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in OCI | 3,047 | (695) | (3,705) | (18,663) |
Gain (loss) reclassified from OCI to earnings | 0 | 0 | 0 | 0 |
Gain recognized, excluded portion | $ 946 | $ 1,124 | $ 3,161 | $ 3,272 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Notional Amounts of Outstanding Forward Contracts (Details) - Forward Contracts - Designated as Hedging Instrument - Net Investment Hedging - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Derivative [Line Items] | ||
Notional amount | $ 439,011 | $ 348,208 |
Euro / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | 429,516 | 337,923 |
Japanese Yen / U.S. Dollar | ||
Derivative [Line Items] | ||
Notional amount | $ 9,495 | $ 10,285 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Schedule of Offsetting Assets (Details) - Foreign Currency Forwards $ in Thousands | Jun. 30, 2024 USD ($) |
Derivative [Line Items] | |
Gross Amount of Recognized Assets | $ 181 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 181 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (181) |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 |
Net Amount | $ 0 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of Offsetting Liabilities (Details) - Foreign Currency Forwards $ in Thousands | Jun. 30, 2024 USD ($) |
Derivative [Line Items] | |
Gross Amount of Recognized Liabilities | $ 2,103 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | 2,103 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (181) |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 |
Net Amount | $ 1,922 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 67,373 | $ 76,526 | $ 298,717 | $ 244,019 |
Provision (benefit) for income taxes | $ (1,605) | $ 15,128 | $ 48,907 | $ 44,082 |
Effective income tax rate | (2.00%) | 20% | 16% | 18% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2024 USD ($) | |
Income Tax Disclosure [Line Items] | |
Non-cash tax expense related to the excess tax benefits | $ 3.6 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 | Feb. 13, 2020 | |
Debt Instrument [Line Items] | ||||
Total debt | $ 1,815,750 | $ 1,702,000 | ||
Unamortized debt issuance costs for the senior notes | [1] | (4,596) | (6,215) | |
Total debt, net of issuance costs | [2] | 1,811,154 | 1,695,785 | |
4.000% Senior Notes Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 500,000 | |||
3.625% Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 500,000 | |||
Long-term Debt | Revolver Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Payment to credit facility revolver | [3],[4] | 322,000 | 202,000 | |
Long-term Debt | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Payment to credit facility revolver | [3],[4] | 493,750 | 500,000 | |
Long-term Debt | 4.000% Senior Notes Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 500,000 | 500,000 | ||
Long-term Debt | 3.625% Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 500,000 | $ 500,000 | ||
[1] Of the unamortized debt issuance costs for the senior notes, $ 0.7 million was included in Current portion of long-term debt and $3 .9 million was included in Long-term debt o n the Consolidated Balance Sheet as of June 30, 2024 . As of September 30, 2023, all unamortized debt issuance costs for the senior notes were included in Long-term debt on the Consolidated Balance Sheet. As of June 30, 2024, $ 518.1 million of debt was classifie d as short term, including $ 499.3 million associated with the 2025 senior notes and related debt issuance costs and $ 18.8 million associated with the credit facility term loan . As of September 30, 2023, $ 9.4 million of debt associated with the credit facility term loan w as classified as short term with the remaining balance classified as long term. The stated maturity date under the credit facility on which both the revolver line and the term loan will mature and all amounts then outstanding will become due and payable is January 3, 2028 . However, if our outstanding 2025 Senior Notes have not been refinanced to mature on or after April 3, 2028 or redeemed by November 16, 2024, all amounts outstanding under the credit facility will become due and payable on November 16, 2024. The term loan began amortizing in March 2024, with payment s of $3 .1 million remaining in 2024, $ 21.9 million in 2025, $ 25.0 million in 2026 and 2027, and $ 418.7 million in 2028. Unamortized debt issuance costs related to the credit facility were $ 2.3 million included in Other current assets and $ 5.8 million included in Other assets on the Consolidated Balance Sheet as of June 30, 2024 and $ 2.3 million included in Other current assets and $ 7.5 million included in Other assets on the Consolidated Balance Sheet as of September 30, 2023 . |
Debt - Schedule of Long-term _2
Debt - Schedule of Long-term Debt Obligations (Parenthetical) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2024 | Sep. 30, 2023 | ||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | [1] | $ 4,596 | $ 6,215 |
Long term debt | 518,071 | 9,375 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 499,300 | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Credit facility maturity date | Jan. 03, 2028 | ||
Secured Debt | |||
Debt Instrument [Line Items] | |||
Long term debt maturity repayments year one | $ 100 | ||
Long term debt maturity repayments year two | 21,900 | ||
Long term debt maturity repayments year three | 25,000 | ||
Long term debt maturity repayments year four | 25,000 | ||
Long term debt maturity repayments year five | 418,700 | ||
Long term debt | 18,800 | 9,400 | |
Other Current Assets | Line of Credit | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | 2,300 | 2,300 | |
Other Noncurrent Assets | Line of Credit | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | 5,800 | $ 7,500 | |
Current portion of long-term debt | Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | 700 | ||
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ 900 | ||
[1] Of the unamortized debt issuance costs for the senior notes, $ 0.7 million was included in Current portion of long-term debt and $3 .9 million was included in Long-term debt o n the Consolidated Balance Sheet as of June 30, 2024 . As of September 30, 2023, all unamortized debt issuance costs for the senior notes were included in Long-term debt on the Consolidated Balance Sheet. |
Debt - Senior Notes - Additiona
Debt - Senior Notes - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Feb. 13, 2020 |
4.000% Senior Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 500 | |
Interest rate | 4% | |
4.000% Senior Notes Due 2028 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value amount | $ 471.9 | |
3.625% Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 500 | |
Interest rate | 3.625% | |
3.625% Senior Notes Due 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value amount | $ 493.6 |
Debt - Credit Agreement - Addit
Debt - Credit Agreement - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jan. 31, 2023 | |
Debt Instrument [Line Items] | ||||||
Amount borrowed from credit facility foreign subsidiary | $ 123 | $ 123 | ||||
Interest rate during period | 5.30% | 5.20% | 5.50% | 4.80% | ||
Interest expense | $ 27.8 | $ 35.8 | $ 94.7 | $ 93.7 | ||
Servicemax acquisition | ||||||
Debt Instrument [Line Items] | ||||||
Interest related to the deferred acquisition payment | 10 | 20 | ||||
Deferred acquisition payments | $ 650 | 650 | ||||
Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Unused commitments under credit facility | 928 | 928 | ||||
Amounts available for borrowing | $ 912.1 | $ 912.1 | ||||
Line of Credit | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility commitment fees percentage | 0.175% | |||||
Line of Credit | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility commitment fees percentage | 0.325% | |||||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility amount | $ 500 | |||||
Annual rate for borrowings outstanding | 6.90% | 6.90% | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility amount | $ 1,250 |