Segment Information

3 Months Ended

Dec. 29, 2012

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 two operating and reportable segments: (1) Software Products, which includes license and related support revenue (including updates and technical support) for all our products except training-related products; and (2) Services, which includes consulting, implementation, training, computer-based training products, including support on these products, and other services revenue. In our consolidated statements of operations, support revenue is included in service revenue. We do not allocate sales and marketing or administrative expenses to our operating segments as these activities are managed on a consolidated basis.

The revenue and operating income attributable to our operating segments are summarized as follows:

	Three months ended
	December 29, 2012			December 31, 2011
	(in thousands)
Revenue:
Total Software Products segment revenue	$	239,289		$	236,963
Total Services segment revenue	80,462			81,313
Total revenue	$	319,751		$	318,276
Operating income: (1)
Software Products segment	$	143,591		$	151,961
Services segment (2)	7,250			7,894
Sales and marketing expenses	(100,327		)	(97,778		)
General and administrative expenses	(36,655		)	(29,572		)
Total operating income	$	13,859		$	32,505

(1) We recorded restructuring charges of $15.4 million in the first quarter of 2013. Software Products included $5.5 million; Services included $2.3 million; sales and marketing expenses included $6.8 million; and general and administrative expenses included $0.8 million of these restructuring charges.

Beginning this quarter, we are providing additional revenue disclosure that we believe provides valuable insight into how our business is performing within the markets we serve. We are reporting revenue in three solution areas: CAD, “Extended PLM” (which encompasses our PLM, ALM and SCM market solutions) and SLM.

CAD revenue includes: PTC Creo^®, including PTC Creo Parametric^TM and PTC Creo Elements/Direct^®, and PTC Mathcad^®.

Extended PLM revenue includes our PLM solutions (primarily PTC Windchill^® and PTC Creo View^TM ), our ALM solutions (primarily PTC Integrity^™) and our SCM Solutions (primarily PTC Windchill FlexPLM^®).

SLM revenue includes PTC Arbortext^® and PTC Servigistics^® products.

	Three months ended
	December 29, 2012		December 31, 2011
	(in thousands)
Revenue:
CAD	$	131,960	$	145,133
Extended PLM	142,409		152,709
SLM	45,382		20,434
Total revenue	$	319,751	$	318,276

Data for the geographic regions in which we operate is presented below.

	Three months ended
	December 29, 2012		December 31, 2011
	(in thousands)
Revenue:
Americas (1)	$	132,658	$	117,490
Europe (2)	119,654		133,175
Pacific Rim	38,622		37,250
Japan	28,817		30,361
Total revenue	$	319,751	$	318,276

_________________

(1) Includes revenue in the United States totaling $116.9 million and $110.7 million for the three months ended December 29, 2012 and December 31, 2011, respectively.

(2) Includes revenue in Germany totaling $42.1 million and $56.1 million for the three months ended December 29, 2012 and December 31, 2011, respectively.