Whenever Synopsys uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed below, as well as in Item 2.02 of the Current Report on Form 8-K filed on May 23, 2018 for additional information about the measures Synopsys uses to evaluate its core business operations.
Reconciliation of Second Quarter Fiscal Year 2018 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per share for the periods indicated below.
|
GAAP to Non-GAAP Reconciliation of Second Quarter and Fiscal Year 2018 Results | |||||||
|
(unaudited and in thousands, except per share amounts) | |||||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended | ||||
|
|
April 30, |
|
April 30, | ||||
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
GAAP net income |
$ 102,472 |
|
$ 53,306 |
|
$ 98,781 |
|
$ 139,894 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
31,186 |
|
27,498 |
|
59,733 |
|
57,006 |
|
Stock compensation |
32,965 |
|
25,562 |
|
65,288 |
|
51,396 |
|
Acquisition-related costs |
4,020 |
|
1,722 |
|
18,220 |
|
5,021 |
|
Restructuring charges |
2,176 |
|
12,907 |
|
1,894 |
|
25,012 |
|
Legal matters |
- |
|
38,000 |
|
- |
|
38,000 |
|
Income tax related to transition tax |
- |
|
- |
|
73,434 |
|
- |
|
Income tax related to tax rate change |
- |
|
- |
|
45,636 |
|
- |
|
Tax adjustments |
(7,827) |
|
(23,151) |
|
(28,439) |
|
(35,408) |
|
Non-GAAP net income |
$ 164,992 |
|
$ 135,844 |
|
$ 334,547 |
|
$ 280,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended | ||||
|
|
April 30, |
|
April 30, | ||||
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
GAAP net income per share |
$ 0.67 |
|
$ 0.34 |
|
$ 0.64 |
|
$ 0.90 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
0.20 |
|
0.18 |
|
0.39 |
|
0.37 |
|
Stock compensation |
0.22 |
|
0.17 |
|
0.43 |
|
0.34 |
|
Acquisition-related costs |
0.03 |
|
0.01 |
|
0.12 |
|
0.03 |
|
Restructuring charges |
0.01 |
|
0.08 |
|
0.01 |
|
0.16 |
|
Legal matters |
- |
|
0.25 |
|
- |
|
0.25 |
|
Income tax related to transition tax |
- |
|
- |
|
0.47 |
|
- |
|
Income tax related to tax rate change |
- |
|
- |
|
0.29 |
|
- |
|
Tax adjustments |
(0.05) |
|
(0.15) |
|
(0.17) |
|
(0.23) |
|
Non-GAAP net income per share |
$ 1.08 |
|
$ 0.88 |
|
$ 2.18 |
|
$ 1.82 |
|
|
|
|
|
|
|
|
|
|
Shares used in computing per share amounts: |
153,167 |
|
154,861 |
|
153,664 |
|
154,754 |
