MENTOR GRAPHICS CORPORATION |
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UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP |
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EARNINGS PER SHARE |
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The following table reconciles management's estimates of the specific items excluded from GAAP in the calculation of estimated non-GAAP net income per share for Q1'13 and fiscal 2013. | ||||||||||||||
Estimated | Estimated | |||||||||||||
Q1'13 | FY'13 | |||||||||||||
Diluted GAAP net income per share | $0.19 | $1.13 | ||||||||||||
Non-GAAP Adjustments: | ||||||||||||||
Amortization of purchased intangible assets (1) | 0.02 | 0.07 | ||||||||||||
Amortization of other identified intangible assets (2) | 0.03 | 0.09 | ||||||||||||
Equity plan-related compensation (3) | 0.05 | 0.18 | ||||||||||||
Other expense, net and interest expense (4) | 0.01 | 0.05 | ||||||||||||
Non-GAAP income tax effects (5) | (0.05 | ) | (0.19 | ) | ||||||||||
Noncontrolling Interest (6) | - | (0.01 | ) | |||||||||||
Non-GAAP net income per share | $0.25 | $1.32 | ||||||||||||
(1) | Excludes amortization of purchased intangible assets resulting from acquisition transactions. Purchased intangible assets are amortized over two to five years. | |||||||||||||
(2) | Excludes amortization of other identified intangible assets including trade names, customer relationships, and backlog resulting from acquisition transactions. Other identified intangible assets are amortized over two to five years. This line item also excludes amortization of purchased intangible assets identified as part of the fair value of the Frontline P.C.B. Solutions Limited Partnership investment. The purchased technology will be amortized over three years and other identified intangible assets will be amortized over three to four years. | |||||||||||||
(3) | Excludes equity plan-related compensation expense. | |||||||||||||
(4) | Adjustment for fiscal 2013 reflects the amortization of original issuance debt discount for our 4.00% Convertible Subordinated Debentures due 2031. | |||||||||||||
(5) | Non-GAAP income tax expense adjustment reflects the application of our assumed normalized effective 17% tax rate, instead of our GAAP tax rate, to our non-GAAP pre-tax income. | |||||||||||||
(6) | Adjustment for amortization of intangible assets and income tax expense on noncontrolling interest. |