ACCOUNTING POLICIES	3 Months Ended
Mar. 31, 2014
ACCOUNTING POLICIES	1. ACCOUNTING POLICIES *Basis of Presentation* Pegasystems Inc. (together with its subsidiaries, “the Company”) has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2014. During the first quarter of 2014, the Company recorded $0.6 million in adjustments to the purchase price allocation of its acquisition of Antenna Software, Inc. and its subsidiaries (“Antenna”) on October 9, 2013. As required by applicable business combination accounting rules, these adjustments were applied retrospectively. Therefore, accounts receivable, other current assets, goodwill, accounts payable, and accrued expenses have been revised as of December 31, 2013 to reflect these adjustments. These revisions did not have any impact on the Company’s previously reported results of operations or cash flows. See Note 6 “Acquisition” and Note 7 “Goodwill and Other Intangible Assets” for further discussion of these adjustments. On March 6, 2014, the Company’s Board of Directors approved a two-for-one (2:1) stock split of the Company’s common stock. On April 1, 2014, each stockholder of record at the close of business on March 20, 2014 (the “Record Date”) received one additional share of common stock, par value $.01, for each share of common stock held on the Record Date. All shares of common stock and per share amounts in the Company’s unaudited condensed consolidated financial statements and in the accompanying notes for all periods presented have been restated to reflect the stock split, except for the number of authorized shares of common stock. At the Company’s 2014 Annual Meeting of Stockholders, which will be held on May 20, 2014, the Company is requesting stockholder approval to amend the Company’s Restated Articles of Organization to increase the number of authorized shares of common stock from 100,000,000 to 200,000,000.

ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2014

1. ACCOUNTING POLICIES

Basis of Presentation

Pegasystems Inc. (together with its subsidiaries, “the Company”) has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2013.

In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2014.

During the first quarter of 2014, the Company recorded $0.6 million in adjustments to the purchase price allocation of its acquisition of Antenna Software, Inc. and its subsidiaries (“Antenna”) on October 9, 2013. As required by applicable business combination accounting rules, these adjustments were applied retrospectively. Therefore, accounts receivable, other current assets, goodwill, accounts payable, and accrued expenses have been revised as of December 31, 2013 to reflect these adjustments. These revisions did not have any impact on the Company’s previously reported results of operations or cash flows. See Note 6 “Acquisition” and Note 7 “Goodwill and Other Intangible Assets” for further discussion of these adjustments.

On March 6, 2014, the Company’s Board of Directors approved a two-for-one (2:1) stock split of the Company’s common stock. On April 1, 2014, each stockholder of record at the close of business on March 20, 2014 (the “Record Date”) received one additional share of common stock, par value $.01, for each share of common stock held on the Record Date. All shares of common stock and per share amounts in the Company’s unaudited condensed consolidated financial statements and in the accompanying notes for all periods presented have been restated to reflect the stock split, except for the number of authorized shares of common stock. At the Company’s 2014 Annual Meeting of Stockholders, which will be held on May 20, 2014, the Company is requesting stockholder approval to amend the Company’s Restated Articles of Organization to increase the number of authorized shares of common stock from 100,000,000 to 200,000,000.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

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