Company: PTC
Filing Date: 2025-11-21
Form Type: 10-K
Source: 0001193125-25-291326
Chunk: 90

Company: PTC INC.
Filing Date: 2025-11-21
Form: 10-K
Item: Item 6
Chunk 90
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inguished bridge loan) was expensed in the period and $9.2 million was recorded as deferred debt issuance costs and included in Other assets and Other current assets on the Consolidated Balance Sheet. Deferred debt issuance costs are expensed over the term of the obligations.InterestIn 2025, 2024 and 2023, we incurred interest expense of $77.0 million, $119.7 million, and $129.4 million, respectively, and paid $77.8 million, $137.0 million and $89.8 million, respectively, of interest on our debt. Interest expense in 2023 included $30.0 million of interest imputed on the $650.0 million deferred acquisition payment related to the ServiceMax acquisition. The average interest rate on borrowings outstanding during 2025, 2024 and 2023 was approximately 4.9%, 5.4% and 4.9%, respectively.

F-29

9. Commitments and ContingenciesAs of September 30, 2025 and 2024, we had letters of credit and bank guarantees outstanding of $15.6 million (of which $0.6 million was collateralized) and $15.6 million (of which $0.6 million was collateralized), respectively, primarily related to our corporate headquarters lease.Legal and Regulatory MattersWith respect to legal proceedings and claims, we record an accrual for a contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.We are subject to legal proceedings and claims against us in the ordinary course of business. As of September 30, 2025, we estimate that the range of possible outcomes for such matters is immaterial and we do not believe that resolving them will have a material adverse impact on our financial condition, results of operations or cash flows. However, the results of legal proceedings cannot be predicted with certainty. Should any of these legal proceedings and claims be resolved against us, the operating results for a reporting period could be adversely affected.Guarantees and Indemnification ObligationsWe enter into standard indemnification agreements with our customers and business partners in the ordinary course of our business. Under such agreements, we typically indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to our products. Indemnification may also