Mentor Graphics Reports Fiscal Third Quarter Results
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MENTOR GRAPHICS CORPORATION
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FOOTNOTES TO UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
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(In thousands)
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Listed below are the items included in net income that management
excludes in computing the non-GAAP financial measures referred to in
the text of this press release. Items are further described under
"Discussion of Non-GAAP Financial Measures."
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Three Months Ended October 31,
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Nine Months Ended October 31,
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2014
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2013
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2014
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2013
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(1) Cost of revenues:
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Equity plan-related compensation
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$
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608
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$
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520
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$
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1,687
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$
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1,438
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Amortization of purchased technology
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2,050
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729
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5,252
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2,648
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$
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2,658
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$
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1,249
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$
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6,939
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$
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4,086
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(2) Research and development:
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Equity plan-related compensation
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$
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3,651
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$
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2,865
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$
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10,203
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$
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8,018
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(3) Marketing and selling:
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Equity plan-related compensation
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$
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2,371
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$
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1,998
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$
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6,692
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$
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5,651
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(4) General and administration:
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Equity plan-related compensation
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$
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2,472
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$
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2,043
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$
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7,809
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$
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6,162
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(5) Equity in earnings of Frontline:
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Amortization of purchased technology and other identified intangible
assets
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$
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-
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$
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231
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$
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116
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$
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1,199
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(6) Amortization of intangible assets:
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Amortization of other identified intangible assets
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$
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2,233
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$
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1,440
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$
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6,009
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$
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4,650
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(7) Special charges:
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Rebalance, restructuring, certain litigation, and other costs
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$
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8,375
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$
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4,688
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$
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19,409
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$
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12,570
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(8) Other income (expense), net:
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Net income (loss) of unconsolidated entities
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$
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78
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$
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(33
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)
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$
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146
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$
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(126
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)
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(9) Interest expense:
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Amortization of original issuance debt discount
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$
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1,548
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$
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1,441
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$
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4,563
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$
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4,248
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(10) Income tax expense:
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Non-GAAP income tax effects
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$
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(4,276
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)
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$
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(3,961
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)
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$
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(14,259
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)
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$
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(14,587
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)
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(11) Loss attributable to noncontrolling interest:
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Amortization of intangible assets, equity-plan related compensation,
and income tax effects
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$
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(218
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)
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$
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(206
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)
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$
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(622
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)
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$
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(768
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)
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