MENTOR GRAPHICS CORPORATION | |||||||||||||||||
UNAUDITED RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
GAAP gross margin | $ | 194,235 | $ | 169,848 | $ | 396,770 | $ | 355,238 | |||||||||
Reconciling items to non-GAAP gross margin: | |||||||||||||||||
Equity plan-related compensation | 368 | 237 | 687 | 504 | |||||||||||||
Amortization of purchased technology | 2,154 | 2,754 | 4,333 | 6,111 | |||||||||||||
Non-GAAP gross margin | $ | 196,757 | $ | 172,839 | $ | 401,790 | $ | 361,853 | |||||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
GAAP gross margin as a percent of total revenues | 80.7 | % | 79.5 | % | 81.2 | % | 80.0 | % | |||||||||
Non-GAAP adjustments detailed above | 1.0 | % | 1.4 | % | 1.0 | % | 1.5 | % | |||||||||
Non-GAAP gross margin as a percent of total revenues | 81.7 | % | 80.9 | % | 82.2 | % | 81.5 | % | |||||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
GAAP operating expenses | $ | 174,328 | $ | 165,004 | $ | 344,041 | $ | 334,221 | |||||||||
Reconciling items to non-GAAP operating expenses: | |||||||||||||||||
Equity plan-related compensation | (5,938 | ) | (5,592 | ) | (10,766 | ) | (11,005 | ) | |||||||||
Amortization of Frontline purchased technology and other identified intangible assets |
(1,242 | ) | (1,242 | ) | (2,484 | ) | (2,484 | ) | |||||||||
Amortization of other identified intangible assets | (1,599 | ) | (1,455 | ) | (3,305 | ) | (3,065 | ) | |||||||||
Special charges | (1,507 | ) | (1,677 | ) | (2,654 | ) | (6,224 | ) | |||||||||
Non-GAAP operating expenses | $ | 164,042 | $ | 155,038 | $ | 324,832 | $ | 311,443 | |||||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
GAAP operating income | $ | 19,907 | $ | 4,844 | $ | 52,729 | $ | 21,017 | |||||||||
Reconciling items to non-GAAP operating income: | |||||||||||||||||
Equity plan-related compensation | 6,306 | 5,829 | 11,453 | 11,509 | |||||||||||||
Amortization of purchased technology | 2,154 | 2,754 | 4,333 | 6,111 | |||||||||||||
Amortization of Frontline purchased technology and other identified intangible assets |
1,242 | 1,242 | 2,484 | 2,484 | |||||||||||||
Amortization of other identified intangible assets | 1,599 | 1,455 | 3,305 | 3,065 | |||||||||||||
Special Charges | 1,507 | 1,677 | 2,654 | 6,224 | |||||||||||||
Non-GAAP operating income | $ | 32,715 | $ | 17,801 | $ | 76,958 | $ | 50,410 | |||||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
GAAP operating income as a percent of total revenues | 8.3 | % | 2.3 | % | 10.8 | % | 4.7 | % | |||||||||
Non-GAAP adjustments detailed above | 5.3 | % | 6.0 | % | 4.9 | % | 6.7 | % | |||||||||
Non-GAAP operating income as a percent of total revenues | 13.6 | % | 8.3 | % | 15.7 | % | 11.4 | % | |||||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
GAAP other expense, net and interest expense | $ | (5,116 | ) | $ | (4,105 | ) | $ | (9,627 | ) | $ | (22,020 | ) | |||||
Reconciling items to non-GAAP other expense, net and interest expense: |
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Net gain of unconsolidated entities | (59 | ) | 52 | (72 | ) | 52 | |||||||||||
Amortization of debt discount and retirement costs | 1,318 | 1,228 | 2,613 | 13,907 | |||||||||||||
Non-GAAP other expense, net and interest expense | $ | (3,857 | ) | $ | (2,825 | ) | $ | (7,086 | ) | $ | (8,061 | ) |