(4) Reflects the tax effects of non-GAAP adjustments for the first quarter of 2013 and 2012, which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above, as well as one-time non-cash GAAP charges. In the fourth quarter of 2012, 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 2013 non-GAAP tax provision is being calculated assuming there is no U.S. valuation allowance and as a result an income tax benefit of $6.2 million is included in the first quarter of 2013. The first quarter of 2013 also includes a one-time 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 in accounting for the acquisition of Servigistics. In the first quarter of 2012, the tax effects exclude one-time non-cash GAAP charges net, of $1.4 million related to the impact from a reduction in the statutory tax rate in Japan on deferred tax assets from a litigation settlement.
| PARAMETRIC TECHNOLOGY CORPORATION | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| December 29, | September 30, | |||||||
| 2012 | 2012 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 248,392 | $ | 489,543 | ||||
| Accounts receivable, net | 221,687 | 217,370 | ||||||
| Property and equipment, net | 66,109 | 63,466 | ||||||
| Goodwill and acquired intangible assets, net | 1,048,000 | 796,232 | ||||||
| Other assets | 218,458 | 225,023 | ||||||
| Total assets | $ | 1,802,646 | $ | 1,791,634 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Deferred revenue | $ | 303,107 | $ | 327,529 | ||||
| Borrowings under credit facility | 368,125 | 370,000 | ||||||
| Other liabilities | 305,456 | 296,846 | ||||||
| Stockholders' equity | 825,958 | 797,259 | ||||||
| Total liabilities and stockholders' equity | $ | 1,802,646 | $ | 1,791,634 | ||||
| PARAMETRIC TECHNOLOGY CORPORATION | |||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (in thousands) | |||||||||||
| Three Months Ended | |||||||||||
| December 29, | December 31, | ||||||||||
| 2012 | 2011 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 35,811 | $ | 22,123 | |||||||
| Stock-based compensation | 11,893 | 13,382 | |||||||||
| Depreciation and amortization | 19,477 | 17,026 | |||||||||
| Accounts receivable | 16,142 | 13,295 | |||||||||
| Accounts payable and accruals (5) | (27,958 | ) | (32,856 | ) | |||||||
| Deferred revenue | (3,534 | ) | (2,075 | ) | |||||||
| Income taxes | (33,779 | ) | (2,409 | ) | |||||||
| Excess tax benefits from stock-based awards | (28 | ) | (150 | ) | |||||||
| Other | (4,388 | ) | 8,149 | ||||||||
| Net cash provided by operating activities (6) | 13,636 | 36,485 | |||||||||
| Capital expenditures | (7,393 | ) | (7,570 | ) | |||||||
| Acquisitions of businesses, net of cash acquired (7) | (222,423 | ) | (880 | ) | |||||||
| Proceeds (payments) on debt, net | (1,875 | ) | - | ||||||||
| Proceeds from issuance of common stock | 645 | 7,196 | |||||||||
|
Payments of withholding taxes in connection with
|
(9,348 | ) | (12,661 | ) | |||||||
| Repurchases of common stock | (15,792 | ) | - | ||||||||
| Excess tax benefits from stock-based awards | 28 | 150 | |||||||||
| Foreign exchange impact on cash | 1,371 | (3,247 | ) | ||||||||
| Net change in cash and cash equivalents | (241,151 | ) | 19,473 | ||||||||
| Cash and cash equivalents, beginning of period | 489,543 | 167,878 | |||||||||
| Cash and cash equivalents, end of period | $ | 248,392 | $ | 187,351 | |||||||
|
|
|||||||||||
