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Segment Information
 9 Months Ended
Jun. 29, 2013
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. 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
 
Nine months ended
 
June 29,
2013
 
June 30,
2012
 
June 29,
2013
 
June 30,
2012
 
(in thousands)
Revenue:
 
 
 
 
 
 
 
Total Software Products segment revenue
$
236,306

 
$
229,706

 
$
712,174

 
$
688,322

Total Services segment revenue
78,690

 
81,277

 
236,522

 
242,062

Total revenue
$
314,996

 
$
310,983

 
$
948,696

 
$
930,384

Operating income: (1)
 
 
 
 
 
 
 
Software Products segment
$
148,904

 
$
145,829

 
$
434,031

 
$
431,897

Services segment
13,227

 
12,491

 
27,321

 
27,774

Sales and marketing expenses
(89,443
)
 
(97,386
)
 
(282,734
)
 
(298,606
)
General and administrative expenses
(29,473
)
 
(29,851
)
 
(100,300
)
 
(90,574
)
Total operating income
43,215

 
31,083

 
78,318

 
70,491

Other income (expense), net
3,181

 
(304
)
 
(491
)
 
(5,914
)
Income before income taxes
$
46,396

 
$
30,779

 
$
77,827

 
$
64,577


(1)
We recorded restructuring charges of $3.1 million and $34.3 million in the third quarter and first nine months of 2013, respectively. Software Products included $1.0 million and $12.6 million, respectively; Services included $0.3 million and $6.6 million, respectively; sales and marketing expenses included $1.1 million and $12.8 million, respectively; and general and administrative expenses included $0.7 million and $2.3 million, respectively, of these restructuring charges. We recorded restructuring charges of $4.1 million and $24.9 million in the third quarter and first nine months of 2012, respectively. Software Products included $0.7 million and $4.1 million, respectively; Services included $0.8 million and $4.0 million, respectively; sales and marketing expenses included $2.7 million and $15.2 million, respectively; and general and administrative expenses included $0 million and $1.6 million, respectively, of these restructuring charges.
We report revenue by the following three solution areas:
•
CAD - PTC Creo®, including PTC Creo ParametricTM and PTC Creo Elements/Direct®, and PTC Mathcad®.
•
Extended PLM - our PLM solutions (primarily PTC Windchill® and PTC Creo ViewTM ), our ALM solutions (primarily PTC Integrity™) and our SCM Solutions (primarily PTC Windchill FlexPLM®).
•
SLM - PTC Arbortext® and PTC Servigistics® products.

 
Three months ended
 
Nine months ended
 
June 29,
2013
 
June 30,
2012
 
June 29,
2013
 
June 30,
2012
 
(in thousands)
Revenue:
 
 
 
 
 
 
 
CAD
$
135,249

 
$
142,774

 
$
403,540

 
$
427,956

Extended PLM
140,517

 
146,286

 
422,758

 
442,379

SLM
39,230

 
21,923

 
122,398

 
60,049

Total revenue
$
314,996

 
$
310,983

 
$
948,696

 
$
930,384




 
Three months ended
 
Nine months ended
 
June 29,
2013
 
June 30,
2012
 
June 29,
2013
 
June 30,
2012
 
(in thousands)
Revenue:
 
 
 
 
 
 
 
Americas (1)
$
129,501

 
$
112,661

 
$
380,310

 
$
339,680

Europe (2)
115,425

 
120,214

 
353,920

 
369,169

Pacific Rim
36,268

 
43,593

 
114,179

 
118,170

Japan
33,802

 
34,515

 
100,287

 
103,365

Total revenue
$
314,996

 
$
310,983

 
$
948,696

 
$
930,384

_________________
(1)
Includes revenue in the United States totaling $121.9 million and $106.1 million for the third quarters ended June 29, 2013 and June 30, 2012, respectively, and $350.5 million and $319.1 million for the nine months ended June 29, 2013 and June 30, 2012, respectively.
(2)
Includes revenue in Germany totaling $41.8 million and $48.0 million for the third quarters ended June 29, 2013 and June 30, 2012, respectively, and $123.5 million and $145.3 million for the nine months ended June 29, 2013 and June 30, 2012, respectively.