The following tables reconcile the specific items excluded from GAAP in the calculation of target non-GAAP operating results for the periods indicated below.
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GAAP to Non-GAAP Reconciliation of Second Quarter Fiscal Year 2019 Targets (1) |
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(in thousands, except per share amounts) |
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ASC 606 |
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Range for Three Months |
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Ending April 30, 2019 (2) |
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Low |
High |
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Target GAAP expenses |
$ 682,000 |
$ 708,000 |
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Adjustments: |
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Estimated impact of amortization of intangible assets |
(25,000) |
(28,000) |
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Estimated impact of stock compensation |
(37,000) |
(40,000) |
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Target non-GAAP expenses |
$ 620,000 |
$ 640,000 |
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ASC 606 |
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Range for Three Months |
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Ending April 30, 2019 (2) |
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Low |
High |
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Target GAAP earnings per share |
$ 0.71 |
$ 0.79 |
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Adjustments: |
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Estimated impact of amortization of intangible assets |
0.18 |
0.16 |
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Estimated impact of stock compensation |
0.26 |
0.24 |
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Estimated impact of tax adjustments |
(0.08) |
(0.07) |
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Target non-GAAP earnings per share |
$ 1.07 |
$ 1.12 |
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Shares used in non-GAAP calculation (midpoint of target range) |
154,500 |
154,500 |
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GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2019 Targets (1) |
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(in thousands, except per share amounts) |
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ASC 606 |
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Range for Fiscal Year |
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October 31, 2019 (2) |
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Low |
High |
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Target GAAP expenses |
$ 2,757,562 |
$ 2,787,562 |
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Adjustments: |
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Estimated impact of amortization of intangible assets |
(99,000) |
(104,000) |
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Estimated impact of stock compensation |
(156,000) |
(161,000) |
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Acquisition-related costs |
(597) |
(597) |
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Restructuring |
35 |
35 |
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Legal matters |
18,000 |
18,000 |
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Target non-GAAP expenses |
$ 2,520,000 |
$ 2,540,000 |
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ASC 606 |
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Range for Fiscal Year |
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October 31, 2019 (2) |
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Low |
High |
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Target GAAP earnings per share |
$ 3.19 |
$ 3.32 |
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Adjustments: |
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Estimated impact of amortization of intangible assets |
0.67 |
0.64 |
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Estimated impact of stock compensation |
1.04 |
1.01 |
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Acquisition-related costs |
0.00 |
0.00 |
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Restructuring |
0.00 |
0.00 |
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Legal matters |
(0.12) |
(0.12) |
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Estimated impact of tax adjustments |
(0.58) |
(0.58) |
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Target non-GAAP earnings per share |
$ 4.20 |
$ 4.27 |
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Shares used in non-GAAP calculation (midpoint of target range) |
154,500 |
154,500 |
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(1) Synopsys adopted new revenue recognition guidance ASC 606, Revenue from Contracts with Customers, at the beginning of fiscal 2019 under the modified retrospective method. |
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(2) Synopsys' second fiscal quarter and fiscal year will end on May 4, 2019 and November 2, 2019, respectively. For presentation purposes, we refer to the closest calendar month end. |
Reconciliation of Certain 2019 Comparative Amounts – ASC 605
