Zmurf,
This formula is easier remembered as
a² = b² + c² - 2bc cosθ
On simplification of the equation given by you, this is what is obtained.
a,b, and c are the three sides of a triangle.
If the triangle is rightangled and θ is 90 degrees or pi/2 radians,
Cos θ = 0,
which gives us
a² = b² + c²,
the Pythogoras Theorem. 