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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 Q1'14 and fiscal year 2014. | |||||||||||
| Estimated | Estimated | ||||||||||
| Q1'14 | FY'14 | ||||||||||
| Diluted GAAP net income per share | $ | - | $ | 1.41 | |||||||
| Non-GAAP Adjustments: | |||||||||||
| Amortization of purchased intangible assets (1) | $ | 0.01 | $ | 0.02 | |||||||
| Amortization of other identified intangible assets (2) | $ | 0.01 | $ | 0.05 | |||||||
| Equity plan-related compensation (3) | $ | 0.05 | $ | 0.24 | |||||||
| Other expense, net and interest expense (4) | $ | 0.01 | $ | 0.05 | |||||||
| Non-GAAP income tax effects (5) | $ | (0.03 | ) | $ | (0.23 | ) | |||||
| Non-controlling interest (6) | $ | - | $ | (0.01 | ) | ||||||
| Non-GAAP net income per share | $ | 0.05 | $ | 1.53 | |||||||
| (1 | ) | Excludes amortization of purchased intangible assets resulting from acquisitions. 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 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 income (loss) on investment accounted for under the equity method of accounting, and amortization of original issuance debt discount. | |||||||||
| (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 the impact of amortization of intangible assets, equity plan-related compensation, and income tax expense on noncontrolling interest. | |||||||||
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Mentor Graphics Reports 7.3% Growth in Annual Revenues
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