Income Taxes (Tables)

3 Months Ended

Dec. 31, 2011

Income Tax Expense (Benefit) [Abstract]

Changes in our unrecognized tax benefits in the three months ended December 31, 2011 were as follows:



	(in millions)
Balance as of October 1, 2011	$	16.2
Tax positions related to current year	0.4
Tax positions related to prior years	0.2
Balance as of December 31, 2011	$	16.8

Summary Of Income Tax Examinations Years

Our policy is to record estimated interest and penalties related to the underpayment of income taxes as a component of our income tax provision. In the first three months of 2012 and 2011 we included $0.1 million of interest expense and no tax penalty expense in our income tax provision. As of December 31, 2011 and September 30, 2011 we had accrued $2.1 million and $2.0 million, respectively, of estimated interest expense and we had no accrued tax penalties. Changes in our unrecognized tax benefits in the three months ended December 31, 2011 were as follows:



	(in millions)
Balance as of October 1, 2011	$	16.2
Tax positions related to current year	0.4
Tax positions related to prior years	0.2
Balance as of December 31, 2011	$	16.8

Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in favorable or unfavorable changes in our estimates. We believe it is reasonably possible that within the next 12 months the amount of unrecognized tax benefits and accrued interest related to the resolution of multi-jurisdictional tax positions could be reduced by up to $6.0 million as audits close and statutes expire.

In the normal course of business, PTC and its subsidiaries are examined by various taxing authorities, including the Internal Revenue Service in the United States. As of December 31, 2011, we remained subject to examination in the following major tax jurisdictions for the tax years indicated:



Major Tax Jurisdiction		Open Years
United States		2003, 2008 through 2011
Germany		2007 through 2011
France		2007 through 2011
Japan		2005 through 2011
Ireland		2006 through 2011

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

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