XML 37 R27.htm IDEA: XBRL DOCUMENT
v3.21.2

Stock-based Compensation (Tables) | 9 Months Ended
--- | ---
Jun. 30, 2021
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] |
Schedule of RSU Activity | The following table shows RSU activity for the nine months ended June 30, 2021:
(in thousands, except grant date fair value data) |  | Number of RSUs |  |  | Weighted-Average Grant Date Fair Value Per RSU |
Balance of outstanding restricted stock units, October 1, 2020 |  |  | 3,509 |  |  | $ | 79.13 |
Granted(1) |  |  | 1,472 |  |  | $ | 111.35 |
Vested |  |  | (1,470 | ) |  | $ | 80.63 |
Forfeited or not earned |  |  | (162 | ) |  | $ | 86.87 |
Balance of outstanding restricted stock units, June 30, 2021 |  |  | 3,349 |  |  | $ | 92.42 |
(1) | RSUs granted includes 33,000 shares from prior period Total Shareholder Return (TSR) awards that were earned upon achievement of the performance criteria and vested in November 2020.
Schedule of Number of RSU Awards Granted by Award Type | The following table presents the number of RSU awards granted by award type:
(in thousands) |  | Nine months ended June 30, 2021 |
Performance-based RSUs(1) |  |  | 90 |
Service-based RSUs(2) |  |  | 1,259 |
Total Shareholder Return RSUs(3) |  |  | 90 |
(1) | The performance-based RSUs were granted to our executives and are eligible to vest based upon annual performance measures over a three-year period. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2021, 2022 and 2023, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. Up to a maximum of two times the number of RSUs can be earned (a maximum aggregate of 179,000 RSUs).
(2) | The service-based RSUs were granted to employees, including our executive officers. Substantially all service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant.
(3) | The Total Shareholder Return RSUs (TSR RSUs) were granted to our executives and are eligible to vest based on the performance of PTC stock relative to the stock performance of an index of PTC peer companies established as of the grant date, as determined at the end of three measurement periods ending on September 30, 2021, 2022 and 2023, respectively. The RSUs earned for each period will vest on November 15, 2021, 2022, and 2023. Up to a maximum of two times the number of TSR RSUs eligible to be earned for the period (up to a maximum aggregate of 179,000 RSUs) may vest. If the return to PTC shareholders is negative for a period but still meets or exceeds the peer group indexed return, a maximum of 100% of the eligible TSR RSUs may vest for the measurement period.
Schedule of Valuation Assumptions | The significant assumptions used in the Monte Carlo simulation model were as follows:
Average volatility of peer group |  |  | 41.5 | %
Risk free interest rate |  |  | 0.21 | %
Dividend yield |  |  | — | %
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, 2021 |  |  | June 27, 2020 |  |  | June 30, 2021 |  |  | June 27, 2020 |
Cost of license revenue |  | $ | 26 |  |  | $ | 11 |  |  | $ | 66 |  |  | $ | 22 |
Cost of support and cloud services revenue |  |  | 2,611 |  |  |  | 1,569 |  |  |  | 7,222 |  |  |  | 4,579 |
Cost of professional services revenue |  |  | 2,457 |  |  |  | 1,585 |  |  |  | 6,746 |  |  |  | 4,607 |
Sales and marketing |  |  | 14,229 |  |  |  | 9,407 |  |  |  | 42,533 |  |  |  | 24,005 |
Research and development |  |  | 8,514 |  |  |  | 5,583 |  |  |  | 24,878 |  |  |  | 17,280 |
General and administrative |  |  | 15,231 |  |  |  | 7,030 |  |  |  | 52,451 |  |  |  | 23,112 |
Total stock-based compensation expense |  | $ | 43,068 |  |  | $ | 25,185 |  |  | $ | 133,896 |  |  | $ | 73,605 |

X
- Definition Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=115993241&loc=d3e301413-122809 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5047-113901 + Details
Name: | us-gaap_ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in outstanding nonvested shares. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfNonvestedShareActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the number and weighted-average grant date fair value for restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock units that were granted, vested, or forfeited during the year. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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