The following tables reconcile the specific items excluded from GAAP in the calculation of target non-GAAP operating results for the periods indicated below.
GAAP to Non-GAAP Reconciliation of Fourth Quarter Fiscal Year 2019 Targets (1) | |||
(in thousands, except per share amounts) | |||
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| ASC 606 | ||
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| Range for Three Months | ||
|
| Ending October 31, 2019 (2) | ||
|
| Low |
| High |
Target GAAP expenses | $ 701,000 |
| $ 733,000 |
Adjustments: |
|
|
|
Estimated impact of amortization of intangible assets | (23,000) |
| (26,000) |
Estimated impact of stock compensation | (39,000) |
| (42,000) |
Estimated impact of restructuring | (9,000) |
| (15,000) |
Target non-GAAP expenses | $ 630,000 |
| $ 650,000 |
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| ASC 606 | ||
|
| Range for Three Months | ||
|
| Ending October 31, 2019 (2) | ||
|
| Low |
| High |
Target GAAP earnings per share | $ 0.69 |
| $ 0.82 |
Adjustments: |
|
|
|
Estimated impact of amortization of intangible assets | 0.17 |
| 0.15 |
Estimated impact of stock compensation | 0.27 |
| 0.25 |
Estimated impact of restructuring | 0.10 |
| 0.06 |
Estimated impact of tax adjustments | (0.13) |
| (0.13) |
Target non-GAAP earnings per share | $ 1.10 |
| $ 1.15 |
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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) | |||
(in thousands, except per share amounts) | |||
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| ASC 606 | ||
|
| Range for Fiscal Year | ||
|
| October 31, 2019 (2) | ||
|
| Low |
| High |
Target GAAP expenses | $ 2,820,148 |
| $ 2,852,148 |
Adjustments: |
|
|
|
Estimated impact of amortization of intangible assets | (100,000) |
| (103,000) |
| Estimated impact of stock compensation | (154,000) |
| (157,000) |
| Acquisition-related costs | (3,948) |
| (3,948) |
| Estimated impact of restructuring | (43,000) |
| (49,000) |
| Legal matters | 18,000 |
| 18,000 |
| Fair value changes in executive deferred compensation plan | (25,200) |
| (25,200) |
| Target non-GAAP expenses | $ 2,512,000 |
| $ 2,532,000 |
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| ASC 606 | ||
|
| Range for Fiscal Year | ||
|
| October 31, 2019 (2) | ||
|
| Low |
| High |
| Target GAAP earnings per share | $ 3.11 |
| $ 3.24 |
| Adjustments: |
|
|
|
| Estimated impact of amortization of intangible assets | 0.67 |
| 0.65 |
| Estimated impact of stock compensation | 1.02 |
| 1.00 |
| Acquisition-related costs | 0.03 |
| 0.03 |
| Estimated impact of restructuring | 0.32 |
| 0.28 |
| Legal matters | (0.12) |
| (0.12) |
| Tax settlement | 0.11 |
| 0.11 |
| Impact of tax adjustments | (0.62) |
| (0.62) |
| Target non-GAAP earnings per share | $ 4.52 |
| $ 4.57 |
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|
|
|
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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. | |||
| (2) Synopsys' fourth fiscal quarter and fiscal year will end on November 2, 2019. For presentation purposes, we refer to the closest calendar month end. |
