Mentor Graphics Reports Fiscal Second Quarter Results
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MENTOR GRAPHICS CORPORATION
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FOOTNOTES TO UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
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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 July 31,
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Six Months Ended July 31,
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2009
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2008
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2009
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2008
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(1) Cost of revenues:
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Equity plan-related compensation
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$
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470
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$
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375
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$
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969
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$
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751
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Prepaid royalty costs
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-
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-
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-
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103
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Amortization of purchased technology
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2,928
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1,992
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5,876
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5,230
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$
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3,398
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$
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2,367
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$
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6,845
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$
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6,084
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(2) Research and development:
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Equity plan-related compensation
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$
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3,058
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$
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2,919
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$
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6,505
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$
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5,851
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(3) Marketing and selling:
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Equity plan-related compensation
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$
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2,391
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$
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2,116
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$
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4,928
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$
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4,221
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(4) General and administration:
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Equity plan-related compensation
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$
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1,578
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$
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2,174
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$
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2,865
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$
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3,312
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(5) Amortization of intangible assets:
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Amortization of other identified intangible assets
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$
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2,888
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$
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2,537
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$
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5,758
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$
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4,970
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(6) Special charges:
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Rebalance, restructuring, and other costs
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$
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4,202
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$
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3,235
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$
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9,897
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$
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12,885
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(7) In-process research and development
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In-process research and development
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$
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-
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$
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15,285
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$
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-
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$
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15,285
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(8) Other income (expense), net:
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Equity in losses of unconsolidated entities and impairment of
investments
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$
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244
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$
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475
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$
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681
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$
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643
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(9) Interest expense:
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Amortization of debt discount
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$
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684
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$
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628
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$
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1,353
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$
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1,243
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Debt retirement costs
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(106
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-
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(354
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-
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$
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578
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$
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628
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$
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999
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$
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1,243
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(10) Income tax expense (benefit): a
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Income tax effects
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$
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4,391
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$
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(15,480
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$
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5,458
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$
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(21,280
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)
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a Adjusted for the retrospective adoption of FSP APB 14-1.
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