Company: PTC
Filing Date: 2025-11-21
Form Type: 10-K
Source: 0001193125-25-291326
Chunk: 83

Company: PTC INC.
Filing Date: 2025-11-21
Form: 10-K
Item: Item 6
Chunk 83
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 not expire, and non-U.S. tax credit carryforwards of $1.2 million that expire beginning in 2031 and ending in 2037. Additionally, we have tax effected amortization carryforwards of $18.0 million in a foreign jurisdiction. There are limitations imposed on the use of such attributes that could restrict the recognition of any tax benefits.

F-25

As of September 30, 2025, we have a valuation allowance of $3.4 million against net deferred tax assets in the United States and a valuation allowance of $5.1 million against net deferred tax assets in certain foreign jurisdictions. The $3.4 million U.S. valuation allowance relates to Massachusetts tax credit carryforwards which we do not expect to realize a benefit from prior to expiration. The valuation allowance recorded against net deferred tax assets of certain foreign jurisdictions is established primarily for our capital loss carryforwards, the majority of which do not expire. However, there are limitations imposed on the utilization of such capital losses that could restrict the recognition of any tax benefits.The changes to the valuation allowance were primarily due to the following: 

         (in thousands)
          
         Year ended September 30,

         2025

         2024

         2023

         Valuation allowance, beginning of year
          
         $
         21,755

         $
         21,695

         $
         22,283

         Net increase (decrease) in deferred tax assets with a full valuation allowance

         (13,226
         )

         60

         (588
         )

         Valuation allowance, end of year
          
         $
         8,529

         $
         21,755

         $
         21,695

       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 2025, 2024 and 2023 we recorded net interest expense of $10.0 million, $3.3 million and $0.5 million, respectively. In 2025, 2024 and 2023 we had no penalty expenses in our income tax provision. As of September 30, 2025 and 2024, we had accrued $13.6 million and $3.1 million of estimated interest expense, respectively. We had no accrued tax penalties as of September 30, 2025, 2024 or 2023.