PTC INC. Goodwill & Intangibles Disclosure
6. Goodwill and Acquired Intangible Assets
Goodwill and acquired intangible assets consisted of the following:
(in thousands) |
|
September 30, 2025 |
|
|
September 30, 2024 |
|
||||||||||||||||||
|
|
Gross |
|
|
Accumulated |
|
|
Net Book |
|
|
Gross |
|
|
Accumulated |
|
|
Net Book |
|
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Goodwill (not amortized) |
|
|
|
|
|
|
|
$ |
3,493,316 |
|
|
|
|
|
|
|
|
$ |
3,461,891 |
|
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Intangible assets with finite lives (amortized)(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Purchased software |
|
$ |
639,104 |
|
|
$ |
472,357 |
|
|
$ |
166,747 |
|
|
$ |
634,439 |
|
|
$ |
436,471 |
|
|
$ |
197,968 |
|
Capitalized software |
|
|
22,877 |
|
|
|
22,877 |
|
|
|
— |
|
|
|
22,877 |
|
|
|
22,877 |
|
|
|
— |
|
Customer lists and relationships |
|
|
1,149,262 |
|
|
|
505,202 |
|
|
|
644,060 |
|
|
|
1,141,086 |
|
|
|
457,718 |
|
|
|
683,368 |
|
Trademarks and trade names |
|
|
38,179 |
|
|
|
24,323 |
|
|
|
13,856 |
|
|
|
37,961 |
|
|
|
21,821 |
|
|
|
16,140 |
|
Other |
|
|
4,019 |
|
|
|
4,019 |
|
|
|
— |
|
|
|
3,941 |
|
|
|
3,941 |
|
|
|
— |
|
|
|
$ |
1,853,441 |
|
|
$ |
1,028,778 |
|
|
$ |
824,663 |
|
|
$ |
1,840,304 |
|
|
$ |
942,828 |
|
|
$ |
897,476 |
|
Total goodwill and acquired intangible assets |
|
|
|
|
|
|
|
$ |
4,317,979 |
|
|
|
|
|
|
|
|
$ |
4,359,367 |
|
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The changes in the carrying amounts of Goodwill from September 30, 2024 to September 30, 2025 are due to the impact of acquisitions and to foreign currency translation adjustments related to those asset balances that are recorded in non-U.S. currencies.
Changes in Goodwill were as follows:
(in thousands) |
|
|
|
|
Balance, September 30, 2023 |
|
$ |
3,358,511 |
|
pure-systems acquisition |
|
|
77,118 |
|
Foreign currency translation adjustments |
|
|
26,262 |
|
Balance, September 30, 2024 |
|
$ |
3,461,891 |
|
Other acquisitions |
|
|
5,977 |
|
Foreign currency translation adjustments |
|
|
25,448 |
|
Balance, September 30, 2025 |
|
$ |
3,493,316 |
|
The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2025, 2024 and 2023 was reflected in our Consolidated Statements of Operations as follows:
(in thousands) |
|
Year ended September 30, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Amortization of acquired intangible assets |
|
$ |
45,948 |
|
|
$ |
42,018 |
|
|
$ |
40,022 |
|
Cost of revenue |
|
|
32,828 |
|
|
|
38,495 |
|
|
|
35,694 |
|
Total amortization expense |
|
$ |
78,776 |
|
|
$ |
80,513 |
|
|
$ |
75,716 |
|
The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2025 is $79.6 million for 2026, $79.7 million for 2027, $76.9 million for 2028, $73.8 million for 2029, $66.2 million for 2030 and $448.5 million thereafter.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 21, 2025 | Showing above |
| 2024 | Nov 14, 2024 | |
| 2023 | Nov 20, 2023 | |
| 2022 | Nov 15, 2022 | |
| 2021 | Nov 22, 2021 | |
| 2020 | Nov 20, 2020 | |
| 2019 | Nov 18, 2019 | |
| 2018 | Nov 16, 2018 | |
| 2017 | Nov 29, 2017 | |
| 2016 | Nov 18, 2016 | |
| 2015 | Nov 23, 2015 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.