The following tables reconcile the specific items excluded from GAAP in the calculation of certain ASC 605-based non-GAAP comparative metrics for the periods indicated below.
GAAP to Non-GAAP Reconciliation of ASC 605 Comparative Metrics (1) | |||
(in thousands, except per share amounts) | |||
|
|
|
|
|
|
| ASC 605 | ||
|
| Range for Three Months | ||
|
| Ending January 31, 2019 (2) | ||
|
| Low |
| High |
Target GAAP expenses | $ 677,000 |
| $ 693,000 |
Adjustments: |
|
|
|
Estimated impact of amortization of intangible assets | (28,000) |
| (31,000) |
Estimated impact of stock compensation | (37,000) |
| (40,000) |
Target non-GAAP expenses | $ 612,000 |
| $ 622,000 |
|
|
|
|
|
|
| ASC 605 | ||
|
| Range for Three Months | ||
|
| Ending January 31, 2019 (2) | ||
|
| Low |
| High |
Target GAAP earnings per share | $ 0.60 |
| $ 0.67 |
Adjustments: |
|
|
|
Estimated impact of amortization of intangible assets | 0.20 |
| 0.18 |
Estimated impact of stock compensation | 0.26 |
| 0.24 |
Estimated impact of tax adjustments | (0.07) |
| (0.06) |
Target non-GAAP earnings per share | $ 0.99 |
| $ 1.03 |
|
|
|
|
|
Shares used in non-GAAP calculation (midpoint of target range) | 154,500 |
| 154,500 |
|
|
|
|
|
|
| ASC 605 | ||
|
| Range for Fiscal Year | ||
|
| October 31, 2019 (2) | ||
|
| Low |
| High |
Target GAAP expenses | $ 2,787,000 |
| $ 2,817,000 |
Adjustments: |
|
|
|
Estimated impact of amortization of intangible assets | (99,000) |
| (104,000) |
Estimated impact of stock compensation | (158,000) |
| (163,000) |
Target non-GAAP expenses | $ 2,530,000 |
| $ 2,550,000 |
|
|
|
|
|
|
| ASC 605 | ||
|
| Range for Fiscal Year | ||
|
| October 31, 2019 (2) | ||
|
| Low |
| High |
Target GAAP earnings per share | $ 3.01 |
| $ 3.11 |
| Adjustments: |
|
|
|
| Estimated impact of amortization of intangible assets | 0.79 |
| 0.77 |
| Estimated impact of stock compensation | 0.93 |
| 0.91 |
| Estimated impact of tax adjustments | (0.33) |
| (0.32) |
| Target non-GAAP earnings per share | $ 4.40 |
| $ 4.47 |
|
|
|
|
|
| Shares used in non-GAAP calculation (midpoint of target range) | 154,500 |
| 154,500 |
|
| |||
| (1) Synopsys will adopt new revenue recognition guidance ASC 606, Revenue from Contracts with Customers, at the beginning of fiscal 2019 under the modified retrospective method. For comparison purposes, we provide comparative metrics under old revenue guidance ASC 605, Revenue Recognition . | |||
|
| |||
| (2) Synopsys' first fiscal quarter and fiscal year will end on February 2, 2019 and November 2, 2019, respectively. For presentation purposes, we refer to the closest calendar month end. |
