MENTOR GRAPHICS CORPORATION |
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UNAUDITED RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES |
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(In thousands, except percentages) | ||||||||||||||||
Three Months Ended January 31, |
Twelve Months Ended January 31, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP gross margin | $ | 267,048 | $ | 206,732 | $ | 774,148 | $ | 682,858 | ||||||||
Reconciling items to non-GAAP gross margin | ||||||||||||||||
Equity plan-related compensation | 217 | 300 | 888 | 1,618 | ||||||||||||
Amortization of purchased technology | 3,343 | 3,047 | 13,771 | 12,012 | ||||||||||||
Non-GAAP gross margin | $ | 270,608 | $ | 210,079 | $ | 788,807 | $ | 696,488 | ||||||||
Three Months Ended January 31, |
Twelve Months Ended January 31, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP gross margin as a percent of total revenues | 87 | % | 87 | % | 85 | % | 85 | % | ||||||||
Non-GAAP adjustments detailed above | 1 | % | 2 | % | 1 | % | 2 | % | ||||||||
Non-GAAP gross margin as a percent of total revenues | 88 | % | 89 | % | 86 | % | 87 | % | ||||||||
Three Months Ended January 31, |
Twelve Months Ended January 31, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP operating expenses | $ | 211,109 | $ | 182,988 | $ | 723,053 | $ | 684,025 | ||||||||
Reconciling items to non-GAAP operating expenses | ||||||||||||||||
Amortization of Frontline purchased technology and other identified intangible assets |
(1,242 | ) | - | (4,347 | ) | - | ||||||||||
Equity plan-related compensation | (5,147 | ) | (4,883 | ) | (21,067 | ) | (24,541 | ) | ||||||||
Amortization of other identified intangible assets | (1,605 | ) | (2,630 | ) | (7,347 | ) | (11,184 | ) | ||||||||
Special charges | (2,205 | ) | (5,444 | ) | (10,257 | ) | (21,334 | ) | ||||||||
Non-GAAP operating expenses | $ | 200,910 | $ | 170,031 | $ | 680,035 | $ | 626,966 | ||||||||
Three Months Ended January 31, |
Twelve Months Ended January 31, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP operating income (loss) | $ | 55,939 | $ | 23,744 | $ | 51,095 | $ | (1,167 | ) | |||||||
Reconciling items to non-GAAP operating income | ||||||||||||||||
Amortization of Frontline purchased technology and other identified intangible assets |
1,242 | - | 4,347 | - | ||||||||||||
Equity plan-related compensation | 5,364 | 5,183 | 21,955 | 26,159 | ||||||||||||
Amortization of purchased intangible assets: | ||||||||||||||||
Cost of revenues | 3,343 | 3,047 | 13,771 | 12,012 | ||||||||||||
Amortization of intangible assets | 1,605 | 2,630 | 7,347 | 11,184 | ||||||||||||
Special Charges | 2,205 | 5,444 | 10,257 | 21,334 | ||||||||||||
Non-GAAP operating income | $ | 69,698 | $ | 40,048 | $ | 108,772 | $ | 69,522 | ||||||||
Three Months Ended January 31, |
Twelve Months Ended January 31, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP operating income (loss) as a percent of total revenues | 18 | % | 10 | % | 6 | % | 0 | % | ||||||||
Non-GAAP adjustments detailed above | 5 | % | 7 | % | 6 | % | 9 | % | ||||||||
Non-GAAP operating income as a percent of total revenues | 23 | % | 17 | % | 12 | % | 9 | % | ||||||||
Three Months Ended January 31, |
Twelve Months Ended January 31, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP other expense, net and interest expense | $ | (5,788 | ) | $ | (3,953 | ) | $ | (20,527 | ) | $ | (18,474 | ) | ||||
Reconciling items to non-GAAP other income (expense), net and interest expense |
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Equity in losses of unconsolidated entities | 667 | 257 | 938 | 995 | ||||||||||||
Impairment of cost method investment | - | - | - | 113 | ||||||||||||
Amortization of debt discount and retirement costs | 755 | 713 | 3,326 | 2,410 | ||||||||||||
Non-GAAP other expense, net and interest expense | $ | (4,366 | ) | $ | (2,983 | ) | $ | (16,263 | ) | $ | (14,956 | ) |