XML 21 R12.htm IDEA: XBRL DOCUMENT
v3.22.4

Stock-based Compensation | 3 Months Ended
--- | ---
Dec. 31, 2022
Share-Based Payment Arrangement, Recognized Amount [Abstract] |
Stock-Based Compensation | 4. Stock-based Compensation Our equity incentive plan provides for grants of nonqualified and incentive stock options, common stock, restricted stock, restricted stock units (RSUs) and stock appreciation rights to employees, directors, officers and consultants. We award RSUs as our principal equity incentive awards. The following table shows RSU activity for the three months ended December 31, 2022:
(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, 2022 |  |  | 2,754 |  |  | $ | 105.07 |
Granted(1) |  |  | 817 |  |  | $ | 131.58 |
Vested |  |  | (1,090 | ) |  | $ | 103.61 |
Forfeited or not earned |  |  | (72 | ) |  | $ | 111.90 |
Balance of outstanding restricted stock units, December 31, 2022 |  |  | 2,409 |  |  | $ | 114.54 |
(1) Restricted stock units granted includes 38 thousand shares from prior period rTSR awards that were earned upon achievement of the performance criteria and vested in November 2022, and 61 thousand shares from prior period performance-based awards that were earned upon achievement of the performance criteria and vested in November 2022. The following table presents the number of RSU awards granted by award type:
(in thousands) |  | Three months ended December 31, 2022 |
Performance-based RSUs(1) |  |  | 69 |
Service-based RSUs(2) |  |  | 580 |
Relative Total Shareholder Return RSUs(3) |  |  | 69 |
(1) The performance-based RSUs are primarily made up of RSUs 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, 2023, November 15, 2024, and November 15, 2025, 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 (up to a maximum aggregate of 139 thousand 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 rTSR 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 the measurement period ending on September 30, 2025. The RSUs earned will vest on November 15, 2025. Up to a maximum of two times the number of rTSR RSUs eligible to be earned for the period (up to a maximum aggregate of 139 thousand RSUs) may vest. If the PTC stock price as of September 30, 2022 is higher than the PTC stock price as of September 30, 2025, but still meets or exceeds the peer group indexed return, a maximum of 100% of the rTSR RSUs may vest. The weighted-average fair value of the rTSR RSUs was $179.60 per target RSU on the grant date. The fair value of the rTSR RSUs was determined using a Monte Carlo simulation model. The significant assumptions used in the Monte Carlo simulation model were as follows:
Average volatility of peer group |  |  | 41.54 | %
Risk free interest rate |  |  | 4.12 | %
Dividend yield |  |  | — | %
Total value on vest date of RSUs vested are as follows:
(in thousands) |  | Three months ended |
Value of stock option and stock-based award activity |  | December 31, 2022 |  |  | December 31, 2021 |
Total value of restricted stock unit awards at vest |  | $ | 143,794 |  |  | $ | 134,330 |
Compensation expense recorded for our stock-based awards is classified in our Consolidated Statements of Operations as follows:
(in thousands) |  | Three months ended |
|  | December 31, 2022 |  |  | December 31, 2021 |
Cost of license revenue |  | $ | 37 |  |  | $ | 38 |
Cost of support and cloud services revenue |  |  | 2,790 |  |  |  | 3,478 |
Cost of professional services revenue |  |  | 1,248 |  |  |  | 2,456 |
Sales and marketing |  |  | 12,196 |  |  |  | 13,081 |
Research and development |  |  | 11,458 |  |  |  | 10,176 |
General and administrative |  |  | 13,775 |  |  |  | 16,713 |
Total stock-based compensation expense |  | $ | 41,504 |  |  | $ | 45,942 |
Stock-based compensation expense includes $1.9 million in the first quarter of 2023 and $2.0 million in the first quarter of 2022 related to our employee stock purchase plan. As of December 31, 2022, we had liability-classified awards related to stock-based compensation of $7.4 million.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI https://asc.fasb.org/topic&trid=2228938 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (l) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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