XML 47 R23.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Segment Information | 12 Months Ended
--- | ---
Sep. 30, 2016
Segment Reporting [Abstract] |
Segment Information | Segment Information We operate within a single industry segment-computer software and related services. Operating segments as defined under GAAP are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our President and Chief Executive Officer. We have three operating and reportable segments: (1) the Solutions Group, which includes license, subscription, support and cloud services revenue for our core CAD, SLM and PLM products; (2) the IoT Group, which includes license, subscription, support and cloud services revenue for our IoT, analytics and augmented reality solutions, and (3) Professional Services, which includes consulting, implementation and training revenue. Our reported segment profit includes revenue from third party sales of our products and services, less direct controllable segment costs. Direct costs of the segments include certain costs of revenue, research and development and certain marketing costs. Costs excluded from segment margin include cost of revenue, selling expenses, corporate marketing and general and administrative costs that are incurred in support of all of our segments and are not specifically allocated to our segments for management reporting. Additionally, the segment profit does not include stock-based compensation, amortization of intangible assets, restructuring charges and certain other identified costs that we do not allocate to the segments for purposes of evaluating their operational performance. The revenue and profit attributable to our operating segments are summarized below. We do not produce asset information by reportable segment; therefore, it is not reported.
| Year ended September 30,
| 2016 |  | 2015 |  | 2014
| (in thousands)
Solutions Group |  |  |  |  |
Revenue | $ | 871,225 |  |  | $ | 980,274 |  |  | $ | 1,073,426 |
Direct costs | 186,174 |  |  | 224,042 |  |  | 244,020 |
Profit | 685,051 |  |  | 756,232 |  |  | 829,406 |
IoT Group |  |  |  |  |
Revenue | 72,371 |  |  | 49,249 |  |  | 4,815 |
Direct costs | 83,747 |  |  | 28,998 |  |  | 8,534 |
Profit (loss) | (11,376 | ) |  | 20,251 |  |  | (3,719 | )
Professional Services |  |  |  |  |
Revenue | 196,937 |  |  | 225,719 |  |  | 278,726 |
Direct costs | 165,325 |  |  | 193,397 |  |  | 237,689 |
Profit | 31,612 |  |  | 32,322 |  |  | 41,037 |
Total segment revenue | 1,140,533 |  |  | 1,255,242 |  |  | 1,356,967 |
Total segment costs | 435,246 |  |  | 446,437 |  |  | 490,243 |
Total segment profit | 705,287 |  |  | 808,805 |  |  | 866,724 |
Other unallocated operating expenses (1) | 666,028 |  |  | 723,780 |  |  | 641,742 |
Restructuring charges | 76,273 |  |  | 43,409 |  |  | 28,406 |
Total operating income (loss) | (37,014 | ) |  | 41,616 |  |  | 196,576 |
Interest and other expense, net | 30,178 |  |  | 15,091 |  |  | 10,464 |
Income (loss) before income taxes | $ | (67,192 | ) |  | $ | 26,525 |  |  | $ | 186,112 |
(1) | The Solutions Group segment includes depreciation of $5.4 million, $5.6 million and $5.7 million in 2016, 2015 and 2014, respectively. The IoT Group segment includes depreciation of $1.6 million, $1.0 million and $0.1 million in 2016, 2015 and 2014, respectively. The Professional Services segment includes depreciation of $2.0 million, $2.2 million and $2.3 million in 2016, 2015 and 2014, respectively. Unallocated departments includes depreciation of $19.7 million, $20.1 million and $19.0 million in 2016, 2015 and 2014, respectively.
We report revenue by the following four product areas:
• | CAD: PTC Creo® and PTC Mathcad®.
• | PLM: PLM solutions (primarily PTC Windchill®), PTC Integrity™ and Atego®.
• | SLM: PTC Arbortext® and PTC Servigistics®.
• | IoT: ThingWorx®, Axeda® and Vuforia.
| Year ended September 30,
| 2016 |  | 2015 |  | 2014
| (in thousands)
CAD | $ | 462,307 |  |  | $ | 511,582 |  |  | $ | 581,508 |
PLM | 456,285 |  |  | 524,741 |  |  | 599,312 |
SLM | 141,644 |  |  | 166,060 |  |  | 170,980 |
IoT | 80,297 |  |  | 52,859 |  |  | 5,167 |
Total revenue | $ | 1,140,533 |  |  | $ | 1,255,242 |  |  | $ | 1,356,967 |
Revenue and long-lived tangible assets for the geographic regions in which we operate is presented below.
| Year ended September 30,
| 2016 |  | 2015 |  | 2014
| (in thousands)
Revenue: |  |  |  |  |
Americas (1) | $ | 487,594 |  |  | $ | 530,311 |  |  | $ | 558,671 |
Europe (2) | 424,268 |  |  | 467,805 |  |  | 528,090 |
Pacific Rim | 123,766 |  |  | 139,165 |  |  | 148,151 |
Japan | 104,905 |  |  | 117,961 |  |  | 122,055 |
Total revenue | $ | 1,140,533 |  |  | $ | 1,255,242 |  |  | $ | 1,356,967 |
| September 30,
| 2016 |  | 2015 |  | 2014
| (in thousands)
Long-lived tangible assets: |  |  |  |  |
Americas (3) | $ | 48,281 |  |  | $ | 47,509 |  |  | $ | 51,027 |
Europe | 6,915 |  |  | 7,424 |  |  | 7,020 |
Asia-Pacific | 11,917 |  |  | 10,229 |  |  | 9,736 |
Total long-lived tangible assets | $ | 67,113 |  |  | $ | 65,162 |  |  | $ | 67,783 |
(1) | Includes revenue in the United States totaling $463.1 million, $500.6 million and $518.7 million for 2016, 2015 and 2014, respectively.
(2) | Includes revenue in Germany totaling $167.2 million, $177.1 million and $200.3 million for 2016, 2015 and 2014, respectively.
(3) | Substantially all of the Americas long-lived tangible assets are located in the United States.
Our international revenue is presented based on the location of our customer. We license products to customers worldwide. Our sales and marketing operations outside the United States are conducted principally through our international sales subsidiaries throughout Europe and the Asia-Pacific regions. Intercompany sales and transfers between geographic areas are accounted for at prices that are designed to be representative of unaffiliated party transactions.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration