<SEC-DOCUMENT>0001654954-17-005941.txt : 20170731
<SEC-HEADER>0001654954-17-005941.hdr.sgml : 20170731
<ACCEPTANCE-DATETIME>20170627165212
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001654954-17-005941
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20170627

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PTC INC.
		CENTRAL INDEX KEY:			0000857005
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				042866152
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		140 KENDRICK STREET
		CITY:			NEEDHAM
		STATE:			MA
		ZIP:			02494
		BUSINESS PHONE:		7813705000

	MAIL ADDRESS:	
		STREET 1:		140 KENDRICK STREET
		CITY:			NEEDHAM
		STATE:			MA
		ZIP:			02494

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PARAMETRIC TECHNOLOGY CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
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<font style="font-family: Times New Roman; font-size: 13px">June
27, 2017</font></div>
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By EDGAR</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Securities
and Exchange Commission</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">100 F
Street, N.E.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Washington,
DC 20549</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Attention:&#xA0;Kathleen
Collins, Accounting Branch Chief</font></div>
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Re: &#xA0; &#xA0; &#xA0; &#xA0; PTC Inc.</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Form
10-K for the Fiscal Year Ended September 30, 2016</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Filed
November 18, 2016</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">File
No. 000-18059</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Ladies
and Gentlemen:</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">This
letter is submitted in response to Kathleen Collins&#x2019; letter
dated May 31, 2017 setting forth the comments of the staff of the
Securities and Exchange Commission (the &#x201C;Staff&#x201D;)
regarding the Form&#xA0;10-K filed November&#xA0;18, 2016 (the
&#x201C;2016 Form&#xA0;10-K&#x201D;) by PTC Inc. (the
&#x201C;Company&#x201D;). Please find our responses to the
Staff&#x2019;s comments below. For your convenience, the comments in
Ms.&#xA0;Collins&#x2019; letter are restated below, followed by our
response.</font></div>
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Form 10-K for the Fiscal Year Ended September 30, 2016</font></div>
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<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Item 15. Exhibits and Financial Statement Schedules</font></div>
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<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Consolidated Statements of Operations, page F-4</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">1.</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">You
state in your response to prior comment 1 that in future filings
you will report cost of license and subscription and cost of
support revenue and the associated margins separately. Please tell
us whether you are able to apply a reasonable methodology to also
separately report the cost of perpetual license from the cost of
subscription revenues and their associated margins, which appear to
differ based on your response and the disclosures you highlighted
in MD&amp;A.</font></div>
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Response:</font></div>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As we
agreed with you, given the inherent complexity in developing a
methodology to allocate (i) cost of support and (ii) cost of
license and subscription, respectively, between perpetual license
and subscription, and the fact that we have not completed our
analysis for the purposes of ASC&#xA0;606, we will report
<font style="font-style: italic">Cost of Support</font> and
<font style="font-style: italic">Cost of License and
Subscription</font> on the income statement through our adoption of
ASC 606 in our fiscal year 2019 (the fiscal year ending
September&#xA0;30, 2019). <font style="font-style: italic">Cost of
Support</font></font></div>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">and
<font style="font-style: italic">Cost of License and
Subscription</font> will be reported consistent with our internal
reporting. Accordingly, <font style="font-style: italic">Cost of
Support</font> will include the cost of supporting both perpetual
licenses and subscription, and <font style="font-style: italic">Cost of License and Subscription</font> will
include the cost of perpetual licenses and subscription licenses.
We will include appropriate disclosure in both the <font style="font-style: italic">Notes to the Financial Statements</font> and
in <font style="font-style: italic">MD&amp;A</font> to explain what
is in each of these cost lines as they are not directly comparable
to the reported revenue lines. We will also continue to disclose in
<font style="font-style: italic">MD&amp;A</font> information about
the significant components of those costs and significant changes
and trends in margins and costs<font style="font-style: italic">.</font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px">When we
adopt ASC&#xA0;606 in fiscal 2019, we will report services and
product revenues and costs separately and align our costs with our
revenue lines (including applying reasonable cost allocations to
the extent necessary).</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">* * * *
* * *</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">If you
have any questions, please do not hesitate to call me at (781)
370-6971.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Very
truly yours,</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">PTC
INC.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">/s/
Andrew Miller</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Andrew
Miller</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Chief
Financial Officer</font></div>
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