Segment Information

3 Months Ended

Dec. 28, 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
	December 28, 2013			December 29, 2012
	(in thousands)
Revenue:
Total Software Products segment revenue	$	244,253		$	239,289
Total Services segment revenue	80,672			80,462
Total revenue	$	324,925		$	319,751
Operating income: (1)
Software Products segment	$	158,238		$	143,591
Services segment	12,622			7,250
Sales and marketing expenses	(84,710		)	(100,327		)
General and administrative expenses	(31,279		)	(36,655		)
Total operating income	54,871			13,859
Other income (expense), net	(1,753		)	(1,805		)
Income before income taxes	$	53,118		$	12,054

(1) We recorded restructuring charges of $1.1 million in the first quarter of 2014. Software Products included $0.1 million; Services included $0.2 million; sales and marketing expenses included $0.5 million; and general and administrative expenses included $0.3 million of these restructuring charges. 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.

We report revenue by the following three solution areas:

• CAD - PTC Creo^® and PTC Mathcad^®.

• Extended PLM - our PLM solutions (primarily PTC Windchill^®), our ALM solutions (primarily PTC Integrity^™) and our SCM Solutions (primarily PTC Windchill FlexPLM^®).

• SLM - PTC Arbortext^® and PTC Servigistics^® products.

	Three months ended
	December 28, 2013		December 29, 2012
	(in thousands)
Revenue:
CAD	$	136,168	$	131,960
Extended PLM	143,798		142,409
SLM	44,959		45,382
Total revenue	$	324,925	$	319,751

	Three months ended
	December 28, 2013		December 29, 2012
	(in thousands)
Revenue:
Americas (1)	$	138,878	$	132,658
Europe (2)	127,043		119,654
Pacific Rim	33,893		38,622
Japan	25,111		28,817
Total revenue	$	324,925	$	319,751

_________________

(1) Includes revenue in the United States totaling $128.7 million and $116.9 million for the quarters ended December 28, 2013 and December 29, 2012, respectively.

(2) Includes revenue in Germany totaling $43.0 million and $42.1 million for the quarters ended December 28, 2013 and December 29, 2012, respectively.