Acquisition (Tables)

9 Months Ended

Jun. 28, 2014

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Based upon a valuation, the total purchase price allocation was as follows:

Purchase price allocation:	(in thousands)
Goodwill	$	102,190
Identifiable intangible assets	32,100
Cash	133
Deferred tax assets and liabilities, net	(8,934		)
Other assumed liabilities, net	(789		)
Total allocation of purchase price consideration	124,700
Less: cash acquired	(133		)
Total purchase price allocation, net of cash acquired	$	124,567
Less: contingent consideration	(13,048		)
Net cash used to acquire ThingWorx	$	111,519

Pro Forma Financial Information

The unaudited financial information in the table below summarizes the combined results of operations of PTC and Servigistics, on a pro forma basis, as though the companies had been combined as of the beginning of PTC's fiscal year 2012. The pro forma information for all periods presented includes the effects of business combination accounting resulting from the acquisition as though the acquisition had been consummated as of the beginning of fiscal year 2012, including amortization charges from acquired intangible assets, the fair value adjustment of acquired deferred support revenue being recorded in fiscal year 2012 versus fiscal year 2013, the exclusion of $0.3 million and $5.9 million of acquisition-related costs in the third quarter and first nine months of 2013, respectively, and the related tax effects. PTC's first quarter of 2013 results also exclude the $32.6 million tax benefit recorded to decrease our valuation allowance in jurisdictions where we have recorded a valuation allowance as a result of Servigistics' net deferred tax liability position recorded in accounting for the business combination (Note 11). The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisition had taken place at the beginning of 2012.

Unaudited Pro Forma Financial Information

	Three months ended				Nine months ended
	Pro Forma		As Reported		Pro Forma		As Reported
	June 29, 2013		June 29, 2013		June 29, 2013		June 29, 2013
	(in millions, except per share amounts)
Revenue	$	315.5	$	315.0	$	951.4	$	948.7
Operating income	$	43.1	$	43.2	$	84.0	$	78.3
Net income	$	34.3	$	34.5	$	60.3	$	87.3
Earnings per share—Basic	$	0.29	$	0.29	$	0.50	$	0.73
Earnings per share—Diluted	$	0.28	$	0.29	$	0.50	$	0.72