(4) The third quarter of 2013 includes a legal settlement gain of $5.1 million, which is excluded from non-GAAP net income.
(5) Income tax adjustments for the three and nine months ended June 28, 2014 and June 29, 2013 reflect the tax effects of non-GAAP adjustments which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above, and also include any identified tax items. In Q4'12, a valuation allowance was established against our U.S. net deferred tax assets. As the U.S. is profitable on a non-GAAP basis, the 2014 and 2013 non-GAAP tax provision is being calculated assuming there is no U.S. valuation allowance. The following identified tax items have been excluded from the non-GAAP tax results. Q2'14 includes a non-cash tax benefit of $8.9 million related to the release of a portion of the valuation allowance as a result of deferred tax liabilities established for the acquisition of ThingWorx. Q2'13 includes tax benefits of $3.2 million relating to final resolution of long-standing tax litigation and completion of an international jurisdiction tax audit. Q1'13 includes a non-cash tax benefit of $32.6 million related to the release of a portion of the valuation allowance as a result of deferred tax liabilities established for the acquisition of Servigistics.
| PTC Inc. | ||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| June 28, | September 30, | |||||
| 2014 | 2013 | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 304,173 | $ | 241,913 | ||
| Accounts receivable, net | 228,623 | 229,106 | ||||
| Property and equipment, net | 63,582 | 64,652 | ||||
| Goodwill and acquired intangible assets, net | 1,138,784 | 1,042,216 | ||||
| Other assets | 223,044 | 251,019 | ||||
| Total assets | $ | 1,958,206 | $ | 1,828,906 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Deferred revenue | $ | 371,890 | $ | 336,913 | ||
| Borrowings under credit facility | 315,000 | 258,125 | ||||
| Other liabilities | 298,847 | 307,388 | ||||
| Stockholders' equity | 972,469 | 926,480 | ||||
| Total liabilities and stockholders' equity | $ | 1,958,206 | $ | 1,828,906 | ||
| PTC Inc. | |||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| June 28, | June, 29 | June 28, | June, 29 | ||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 38,026 | $ | 34,455 | $ | 121,439 | $ | 87,303 | |||||||||
| Stock-based compensation | 12,532 | 11,177 | 37,862 | 34,880 | |||||||||||||
| Depreciation and amortization | 19,026 | 18,568 | 57,299 | 57,432 | |||||||||||||
| Accounts receivable | (2,112 | ) | 13,689 | 14,625 | 35,874 | ||||||||||||
| Accounts payable and accruals | 9,423 | 16,218 | (28,208 | ) | (8,524 | ) | |||||||||||
| Deferred revenue | 25,656 | 12,108 | 55,339 | 42,951 | |||||||||||||
| Income taxes | 8,666 | 204 | 14,545 | (40,349 | ) | ||||||||||||
| Excess tax benefits from stock-based awards | (1,484 | ) | (32 | ) | (9,576 | ) | (171 | ) | |||||||||
| Other | (3,310 | ) | (21,797 | ) | (9,938 | ) | (28,374 | ) | |||||||||
|
Net cash provided by operating activities (6) |
106,423 | 84,590 | 253,387 | 181,022 | |||||||||||||
| Capital expenditures | (6,379 | ) | (6,702 | ) | (16,721 | ) | (19,128 | ) | |||||||||
| Acquisitions of businesses, net of cash acquired (7) | - | 1,606 | (111,519 | ) | (220,817 | ) | |||||||||||
| Proceeds (payments) on debt, net | (3,125 | ) | (40,000 | ) | 56,875 | (101,875 | ) | ||||||||||
| Proceeds from issuance of common stock | 85 | 538 | 801 | 3,412 | |||||||||||||
|
Payments of withholding taxes in connection with vesting of stock-based awards |
(5,112 | ) | (2,083 | ) | (26,749 | ) | (14,974 | ) | |||||||||
| Repurchases of common stock | (59,950 | ) | (19,965 | ) | (99,915 | ) | (54,912 | ) | |||||||||
| Excess tax benefits from stock-based awards | 1,484 | 32 | 9,576 | 171 | |||||||||||||
| Credit facility origination costs | - | - | (4,120 | ) | - | ||||||||||||
| Foreign exchange impact on cash | 277 | (1,794 | ) | 645 | (5,411 | ) | |||||||||||
| Net change in cash and cash equivalents | 33,703 | 16,222 | 62,260 | (232,512 | ) | ||||||||||||
| Cash and cash equivalents, beginning of period | 270,470 | 240,809 | 241,913 | 489,543 | |||||||||||||
| Cash and cash equivalents, end of period | $ | 304,173 | $ | 257,031 | $ | 304,173 | $ | 257,031 | |||||||||
