MENTOR GRAPHICS CORPORATION
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP
|
EARNINGS PER SHARE
|
|
|
|
|
|
|
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 Q3 FY13 and fiscal 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
|
|
Estimated
|
|
|
|
Q3 FY13
|
|
FY13
|
Diluted GAAP net income per share
|
$
|
0.23
|
|
|
$
|
1.23
|
|
Non-GAAP Adjustments:
|
|
|
|
Amortization of purchased intangible assets (1)
|
|
0.01
|
|
|
|
0.07
|
|
Amortization of other identified intangible assets (2)
|
|
0.02
|
|
|
|
0.09
|
|
Equity plan-related compensation (3)
|
|
0.04
|
|
|
|
0.17
|
|
Special charges (4)
|
|
-
|
|
|
|
0.02
|
|
Other income (expense), net and interest expense (5)
|
|
0.01
|
|
|
|
0.05
|
|
Non-GAAP income tax effects (6)
|
|
(0.03
|
)
|
|
|
(0.24
|
)
|
Noncontrolling Interest (7)
|
|
-
|
|
|
|
(0.01
|
)
|
Non-GAAP net income per share
|
$
|
0.28
|
|
|
$
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
Excludes amortization of purchased intangible assets resulting from
acquisition transactions. Purchased intangible assets are amortized
over three 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 one 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 for the fair value
of all share-based payments to employees for stock options and
restricted stock units, and purchases made as a result of the
employee stock purchase plans.
|
(4
|
)
|
Excludes special charges consisting primarily of costs incurred for
employee rebalances (which includes severance benefits, notice pay
and outplacement services), facility closures, and acquisition costs.
|
(5
|
)
|
Adjustment for fiscal 2013 reflects the amortization of original
issuance debt discount for our 4.00% Convertible Subordinated
Debentures due 2031.
|
(6
|
)
|
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.
|
(7
|
)
|
Adjustment for the impact of amortization of intangible assets,
equity plan-related compensation expense and income tax expense on
noncontrolling interest.
|