(2) Reflects the tax effect of non-GAAP adjustments above, as well as the effect of one-time tax benefits recorded in:
a. the fourth quarter of 2008 of $1.9 million; and
b. the third quarter of 2007 due to the reversal of the valuation allowance recorded in the United States and a foreign jurisdiction of $58.9 million and the favorable resolution of a tax claim of $3.9 million.
| PARAMETRIC TECHNOLOGY CORPORATION | |||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (in thousands) | |||||
| September 30, | September 30, | ||||
| 2008 | 2007 | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 256,941 | $ | 263,271 | |
| Accounts receivable, net | 201,509 | 217,101 | |||
| Property and equipment, net | 55,253 | 54,745 | |||
| Goodwill and acquired intangibles, net | 587,537 | 325,052 | |||
| Other assets | 248,333 | 230,144 | |||
| Total assets | $ | 1,349,573 | $ | 1,090,313 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Deferred revenue | $ | 258,295 | $ | 227,164 | |
| Borrowings under revolving credit facility | 88,505 | -- | |||
| Other liabilities | 300,248 | 268,642 | |||
| Stockholders' equity | 702,525 | 594,507 | |||
| Total liabilities and stockholders' equity | $ | 1,349,573 | $ | 1,090,313 | |
| PARAMETRIC TECHNOLOGY CORPORATION | |||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
| (in thousands) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income | $ | 36,504 | $ | 30,639 | $ | 79,702 | $ | 143,656 | |||||||
| Stock-based compensation | 11,715 | 13,938 | 44,396 | 36,445 | |||||||||||
| Amortization of acquired intangible assets | 10,334 | 3,969 | 35,487 | 14,370 | |||||||||||
| Depreciation and other amortization | 6,203 | 6,348 | 24,534 | 24,829 | |||||||||||
| Accounts receivable | (27,813 | ) | (36,267 | ) | 42,006 | (2,784 | ) | ||||||||
| Accounts payable and accruals (1) | 17,942 | 22,675 | (11,213 | ) | (3,556 | ) | |||||||||
| Deferred revenue | (14,228 | ) | (23,841 | ) | 2,077 | (2,387 | ) | ||||||||
| In-process research and development | -- | -- | 1,887 | 544 | |||||||||||
| Income taxes | (7,362 | ) | 1,636 | (5,717 | ) | (60,672 | ) | ||||||||
| Other | 7,839 | (6,795 | ) | 9,081 | (23,071 | ) | |||||||||
| Net cash provided by operating activities | 41,134 | 12,302 | 222,240 | 127,374 | |||||||||||
| Capital expenditures | (4,947 | ) | (6,918 | ) | (25,439 | ) | (24,057 | ) | |||||||
| Acquisitions of businesses, net of cash acquired (2) | -- | (2,574 | ) | (261,592 | ) | (31,092 | ) | ||||||||
| Proceeds (payments) from debt, net | (10,860 | ) | -- | 88,139 | -- | ||||||||||
| Repurchases of common stock | -- | (8,143 | ) | (27,297 | ) | (9,952 | ) | ||||||||
| Other investing and financing activities | 4,928 | 1,626 | 1,615 | 8,928 | |||||||||||
| Foreign exchange impact on cash | (15,334 | ) | 7,022 | (3,996 | ) | 8,622 | |||||||||
| Net change in cash and cash equivalents | 14,921 | 3,315 | (6,330 | ) | 79,823 | ||||||||||
| Cash and cash equivalents, beginning of period | 242,020 | 259,956 | 263,271 | 183,448 | |||||||||||
| Cash and cash equivalents, end of period | $ | 256,941 | $ | 263,271 | $ | 256,941 | $ | 263,271 | |||||||
