Reconciliation of GAAP financial measures to non-GAAP financial measures
(In millions, except per share data)
To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP cost of license and other revenue, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP restructuring charges (benefits), non-GAAP income from operations, non-GAAP operating margin, non-GAAP interest and other income (expense), non-GAAP provision for income taxes, non-GAAP net income, and non-GAAP net income per share. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, gain and loss on strategic investments, and related income tax expenses. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of Autodesk's underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods.
There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.
| The following table shows Autodesk's non-GAAP results reconciled to GAAP results included in this release. | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| January 31, | January 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP cost of license and other revenue | $ | 52.4 | $ | 48.3 | $ | 198.1 | $ | 187.1 | ||||||||
| Stock-based compensation expense | (1.4 | ) | (1.1 | ) | (5.2 | ) | (3.9 | ) | ||||||||
| Amortization of developed technology | (10.4 | ) | (10.3 | ) | (39.7 | ) | (38.0 | ) | ||||||||
| Non-GAAP cost of license and other revenue | $ | 40.6 | $ | 36.9 | $ | 153.2 | $ | 145.2 | ||||||||
| GAAP gross profit | $ | 544.9 | $ | 534.9 | $ | 2,073.7 | $ | 1,986.5 | ||||||||
| Stock-based compensation expense | 1.4 | 1.1 | 5.2 | 3.9 | ||||||||||||
| Amortization of developed technology | 10.4 | 10.3 | 39.7 | 38.0 | ||||||||||||
| Non-GAAP gross profit | $ | 556.7 | $ | 546.3 | $ | 2,118.6 | $ | 2,028.4 | ||||||||
| GAAP marketing and sales | $ | 236.0 | $ | 233.5 | $ | 875.5 | $ | 842.6 | ||||||||
| Stock-based compensation expense | (16.9 | ) | (13.5 | ) | (64.3 | ) | (48.3 | ) | ||||||||
| Non-GAAP marketing and sales | $ | 219.1 | $ | 220.0 | $ | 811.2 | $ | 794.3 | ||||||||
| GAAP research and development | $ | 149.4 | $ | 149.5 | $ | 600.0 | $ | 566.5 | ||||||||
| Stock-based compensation expense | (12.2 | ) | (10.5 | ) | (61.8 | ) | (38.1 | ) | ||||||||
| Non-GAAP research and development | $ | 137.2 | $ | 139.0 | $ | 538.2 | $ | 528.4 | ||||||||
| GAAP general and administrative | $ | 67.7 | $ | 60.1 | $ | 248.4 | $ | 223.1 | ||||||||
| Stock-based compensation expense | (7.0 | ) | (4.9 | ) | (25.0 | ) | (18.5 | ) | ||||||||
| Amortization of customer relationships and trade names | (12.6 | ) | (8.3 | ) | (42.1 | ) | (32.3 | ) | ||||||||
| Non-GAAP general and administrative | $ | 48.1 | $ | 46.9 | $ | 181.3 | $ | 172.3 | ||||||||
| GAAP restructuring charges (benefits), net | $ | 7.2 | $ | — | $ | 43.9 | $ | (1.3 | ) | |||||||
| Restructuring (charges) benefits | (7.2 | ) | — | (43.9 | ) | 1.3 | ||||||||||
| Non-GAAP restructuring charges (benefits), net | $ | — | $ | — | $ | — | $ | — | ||||||||
| GAAP operating expenses | $ | 460.3 | $ | 443.1 | $ | 1,767.8 | $ | 1,630.9 | ||||||||
| Stock-based compensation expense | (36.1 | ) | (28.9 | ) | (151.1 | ) | (104.9 | ) | ||||||||
| Amortization of customer relationships and trade names | (12.6 | ) | (8.3 | ) | (42.1 | ) | (32.3 | ) | ||||||||
| Restructuring (charges) benefits | (7.2 | ) | — | (43.9 | ) | 1.3 | ||||||||||
| Non-GAAP operating expenses | $ | 404.4 | $ | 405.9 | $ | 1,530.7 | $ | 1,495.0 | ||||||||
| GAAP income from operations | $ | 84.6 | $ | 91.8 | $ | 305.9 | $ | 355.6 | ||||||||
| Stock-based compensation expense | 37.5 | 30.0 | 156.3 | 108.8 | ||||||||||||
| Amortization of developed technology | 10.4 | 10.3 | 39.7 | 38.0 | ||||||||||||
| Amortization of customer relationships and trade names | 12.6 | 8.3 | 42.1 | 32.3 | ||||||||||||
| Restructuring charges (benefits) | 7.2 | — | 43.9 | (1.3 | ) | |||||||||||
| Non-GAAP income from operations | $ | 152.3 | $ | 140.4 | $ | 587.9 | $ | 533.4 | ||||||||
| GAAP interest and other income, net | $ | 1.5 | $ | 1.1 | $ | 4.1 | $ | 7.3 | ||||||||
| (Gain) loss on strategic investments | 0.2 | (0.3 | ) | 4.0 | (0.3 | ) | ||||||||||
| Non-GAAP interest and other income, net | $ | 1.7 | $ | 0.8 | $ | 8.1 | $ | 7.0 | ||||||||
| GAAP provision for income taxes | $ | (11.6 | ) | $ | (20.9 | ) | $ | (62.6 | ) | $ | (77.6 | ) | ||||
| Discrete GAAP tax provision items | (7.7 | ) | 0.6 | (26.7 | ) | (6.8 | ) | |||||||||
| Income tax effect of non-GAAP adjustments | (13.9 | ) | (15.1 | ) | (56.7 | ) | (50.9 | ) | ||||||||
| Non-GAAP provision for income tax | $ | (33.2 | ) | $ | (35.4 | ) | $ | (146.0 | ) | $ | (135.3 | ) | ||||
| GAAP net income | $ | 74.5 | $ | 72.0 | $ | 247.4 | $ | 285.3 | ||||||||
| Stock-based compensation expense | 37.5 | 30.0 | 156.3 | 108.8 | ||||||||||||
| Amortization of developed technology | 10.4 | 10.3 | 39.7 | 38.0 | ||||||||||||
| Amortization of customer relationships and trade names | 12.6 | 8.3 | 42.1 | 32.3 | ||||||||||||
| Restructuring charges (benefits) | 7.2 | — | 43.9 | (1.3 | ) | |||||||||||
| (Gain) loss on strategic investments | 0.2 | (0.3 | ) | 4.0 | (0.3 | ) | ||||||||||
| Discrete GAAP tax provision items | (7.7 | ) | 0.6 | (26.7 | ) | (6.8 | ) | |||||||||
| Income tax effect of non-GAAP adjustments | (13.9 | ) | (15.1 | ) | (56.7 | ) | (50.9 | ) | ||||||||
| Non-GAAP net income | $ | 120.8 | $ | 105.8 | $ | 450.0 | $ | 405.1 | ||||||||
| GAAP diluted net income per share | $ | 0.32 | $ | 0.31 | $ | 1.07 | $ | 1.22 | ||||||||
| Stock-based compensation expense | 0.16 | 0.13 | 0.67 | 0.47 | ||||||||||||
| Amortization of developed technology | 0.05 | 0.04 | 0.18 | 0.16 | ||||||||||||
| Amortization of customer relationships and trade names | 0.05 | 0.04 | 0.18 | 0.14 | ||||||||||||
| Restructuring charges (benefits) | 0.03 | — | 0.18 | (0.01 | ) | |||||||||||
| (Gain) loss on strategic investments | — | — | 0.02 | — | ||||||||||||
| Discrete GAAP tax provision items | (0.02 | ) | — | (0.12 | ) | (0.03 | ) | |||||||||
| Income tax effect of non-GAAP adjustments | (0.06 | ) | (0.06 | ) | (0.24 | ) | (0.21 | ) | ||||||||
| Non-GAAP diluted net income per share | $ | 0.53 | $ | 0.46 | $ | 1.94 | $ | 1.74 | ||||||||
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