Spreadsheet: 1f4297d5-b7f3-485a-b28c-eb889ce026a1
Sheet: Fact Sheet

Autodesk, Inc.
Other Supplemental Financial Information (a)
Fiscal Year 2014 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2014
Financial Statistics ($ in millions, except per share data):
Total Net Revenue: | 570 | 562 | 555 |  | 1687
License and Other Revenue | 324 | 313 | 298 |  | 934
Subscription Revenue | 247 | 249 | 258 |  | 753
GAAP Gross Margin | 0.88 | 0.88 | 0.88 |  | 0.88
Non-GAAP Gross Margin (1)(2) | 0.9 | 0.9 | 0.9 |  | 0.9
GAAP Operating Expenses | 422 | 410 | 420 |  | 1252
GAAP Operating Margin | 0.14 | 0.15 | 0.12 |  | 0.14
GAAP Net Income | 56 | 62 | 58 |  | 175
GAAP Diluted Net Income Per Share (b) | 0.24 | 0.27 | 0.25 |  | 0.77
Non-GAAP Operating Expenses  (1)(3) | 378 | 370 | 378 |  | 1126
Non-GAAP Operating Margin  (1)(4) | 0.24 | 0.24 | 0.22 |  | 0.23
Non-GAAP Net Income  (1)(5)(c) | 96 | 102 | 94 |  | 292
Non-GAAP Diluted Net Income Per Share  (1)(6)(b)(c) | 0.42 | 0.45 | 0.41 |  | 1.28
Total Cash and Marketable Securities | 2480 | 2408 | 2479 |  | 2479
Days Sales Outstanding | 46 | 49 | 50 |  | 50
Capital Expenditures | 26 | 17 | 12 |  | 55
Cash Flow from Operating Activities | 224 | 65 | 91 |  | 380
GAAP Depreciation, Amortization and Accretion | 33 | 32 | 31 |  | 96
Deferred Subscription Revenue Balance (c) | 775 | 736 | 699 |  | 699
Revenue by Geography:
Americas | 202 | 202 | 208 |  | 612
Europe, Middle East and Africa | 216 | 202 | 204 |  | 622
Asia Pacific | 152 | 158 | 143 |  | 453
% of Total Rev from Emerging Economies | 0.13 | 0.15 | 0.15 |  | 0.15
Revenue by Segment:
Platform Solutions and Emerging Business | 213 | 197 | 183 |  | 593
Architecture, Engineering and Construction | 172 | 177 | 186 |  | 535
Manufacturing | 139 | 144 | 142 |  | 425
Media and Entertainment | 47 | 43 | 44 |  | 134
Other Revenue Statistics:
% of Total Rev from Flagship | 0.55 | 0.51 | 0.5 |  | 0.52
% of Total Rev from Suites | 0.31 | 0.34 | 0.36 |  | 0.34
% of Total Rev from New and Adjacent | 0.14 | 0.14 | 0.15 |  | 0.14
% of Total Rev from AutoCAD and AutoCAD LT | 0.34 | 0.31 | 0.29 |  | 0.31
Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to
Foreign Currencies Compared to Comparable Prior Year Period:
FX Impact on Total Net Revenue | -17 | -17 | -13 |  | -47
FX Impact on Cost of Revenue and Total Operating Expenses | 5 | 4 | 3 |  | 13
FX Impact on Operating Income | -12 | -13 | -10 |  | -34
Gross Margin by Segment:
Platform Solutions and Emerging Business | 195 | 180 | 165.9 |  | 541
Architecture, Engineering and Construction | 156 | 161 | 169 |  | 485
Manufacturing | 128 | 132 | 130 |  | 390
Media and Entertainment | 37 | 34 | 35 |  | 106
Unallocated amounts | -12 | -12 | -12 |  | -37
Common Stock Statistics:
Common Shares Outstanding | 224.4 | 222.5 | 224.6 |  | 224.6
Fully Diluted Weighted Average Shares Outstanding | 229.3 | 228.3 | 227.7 |  | 228.6
Shares Repurchased | 3.2 | 3.1 | 2 |  | 8.3
(a) Totals may not agree with the sum of the components due to rounding.
(b) Earnings per share were computed independently for each of the periods presented; therefore the sum of the earnings per share amounts for the quarters may not equal the total for the year.
(c) Prior amounts have been conformed to align with the current period presentation.
(1) To supplement our consolidated financial statements presented on a GAAP basis, [NAME] provides investors with certain non-GAAP measures including non-GAAP gross margin, non-GAAP operating expenses,  non-GAAP operating margin, non-GAAP net income, and non-GAAP net income per share. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, gain and loss on strategic investments, and related income tax expenses.  See our reconciliation of GAAP financial measures to non-GAAP financial measures herein.  We believe these exclusions are appropriate to enhance an overall  understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results.  These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of [NAME]'s underlying operational results and trends and our marketplace performance.  For example, non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results.  In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies.  The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results.  The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP in the United States.  Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying [NAME]'s press release.
 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2014
(2) GAAP Gross Margin | 0.88 | 0.88 | 0.88 |  | 0.88
Stock-based compensation expense | 0 | 0 | —% |  | —%
Amortization of developed technology | 0.02 | 0.02 | 0.02 |  | 0.02
Non-GAAP Gross Margin | 0.9 | 0.9 | 0.9 |  | 0.9
(3) GAAP Operating Expenses | 422 | 410 | 420 |  | 1252
Stock-based compensation expense | -32 | -30 | -30 |  | -92
Amortization of customer relationships and trade names | -11 | -9 | -7 |  | -28
Restructuring (charges) benefits, net | 0 | -2 | -4 |  | -7
Non-GAAP Operating Expenses | 378 | 370 | 378 |  | 1126
(4) GAAP Operating Margin | 0.14 | 0.15 | 0.12 |  | 0.14
Stock-based compensation expense | 0.06 | 0.06 | 0.06 |  | 0.06
Amortization of developed technology | 0.02 | 0.02 | 0.02 |  | 0.02
Amortization of customer relationships and trade names | 0.02 | 0.01 | 0.01 |  | 0.01
Restructuring charges (benefits), net | 0 | 0 | 0.01 |  | —%
Non-GAAP Operating Margin | 0.24 | 0.24 | 0.22 |  | 0.23
(5) GAAP Net Income | 56 | 62 | 58 |  | 175
Stock-based compensation expense | 34 | 31 | 32 |  | 96
Amortization of developed technology | 11 | 11 | 11 |  | 33
Amortization of customer relationships and trade names | 11 | 9 | 7 |  | 28
Restructuring charges (benefits), net | 0 | 2 | 4 |  | 7
(Gain) loss on strategic investments | 1 | 0 | 0 |  | 1
Discrete GAAP tax provision items | -1 | 1 | -3 |  | -2
Income tax effect of non-GAAP adjustments | -15 | -14 | -14 |  | -44
Non-GAAP Net Income | 96 | 102 | 94 |  | 292
(6) GAAP Diluted Net Income Per Share | 0.24 | 0.27 | 0.25 |  | 0.77
Stock-based compensation expense | 0.15 | 0.14 | 0.14 |  | 0.42
Amortization of developed technology | 0.05 | 0.05 | 0.04 |  | 0.14
Amortization of customer relationships and trade names | 0.05 | 0.04 | 0.03 |  | 0.12
Restructuring charges (benefits), net | 0 | 0.01 | 0.02 |  | 0.03
(Gain) loss on strategic investments | 0 | 0 | 0 |  | 0
Discrete GAAP tax provision items | 0 | 0 | -0.01 |  | -0.01
Income tax effect of non-GAAP adjustments | -0.07 | -0.06 | -0.06 |  | -0.19
Non-GAAP Diluted Net Income Per Share | 0.42 | 0.45 | 0.41 |  | 1.28
Fiscal Year 2013 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2013
Financial Statistics ($ in millions, except per share data):
Total Net Revenue: | 589 | 569 | 548 | 607 | 2312
License and Other Revenue (c) | 355 | 334 | 310 | 365 | 1364
Subscription Revenue (c) | 233 | 235 | 238 | 242 | 948
GAAP Gross Margin | 0.9 | 0.89 | 0.89 | 0.9 | 0.9
Non-GAAP Gross Margin (1)(2) | 0.92 | 0.91 | 0.91 | 0.92 | 0.92
GAAP Operating Expenses | 436 | 416 | 456 | 460 | 1768
GAAP Operating Margin | 0.16 | 0.16 | 0.06 | 0.14 | 0.13
GAAP Net Income | 79 | 65 | 29 | 75 | 248
GAAP Diluted Net Income Per Share (b) | 0.34 | 0.28 | 0.13 | 0.32 | 1.07
Non-GAAP Operating Expenses  (1)(3) | 396 | 376 | 355 | 404 | 1531
Non-GAAP Operating Margin  (1)(4) | 0.25 | 0.25 | 0.27 | 0.25 | 0.25
Non-GAAP Net Income  (1)(5)(c) | 109 | 111 | 109 | 121 | 450
Non-GAAP Diluted Net Income Per Share  (1)(6)(b)(c) | 0.47 | 0.48 | 0.47 | 0.53 | 1.94
Total Cash and Marketable Securities | 1796 | 1717 | 1737 | 2365 | 2365
Days Sales Outstanding | 46 | 58 | 49 | 74 | 74
Capital Expenditures | 12 | 17 | 17 | 12 | 56
Cash Flow from Operating Activities | 139 | 107 | 157 | 156 | 559
GAAP Depreciation, Amortization and Accretion | 29 | 29 | 35 | 35 | 128
Deferred Subscription Revenue Balance (c) | 658 | 687 | 648 | 753 | 753
Revenue by Geography:
Americas | 208 | 199 | 209 | 221 | 836
Europe, Middle East and Africa | 224 | 210 | 196 | 238 | 869
Asia Pacific | 157 | 161 | 142 | 148 | 608
% of Total Rev from Emerging Economies | 0.14 | 0.15 | 0.15 | 0.14 | 0.14
Revenue by Segment:
Platform Solutions and Emerging Business (c) | 227 | 216 | 203 | 197 | 843
Architecture, Engineering and Construction (c) | 166 | 163 | 165 | 208 | 701
Manufacturing | 146 | 141 | 132 | 155 | 574
Media and Entertainment | 51 | 49 | 48 | 47 | 194
Other Revenue Statistics (c):
% of Total Rev from Flagship (d) | 0.58 | 0.57 | 0.55 | 0.54 | 0.56
% of Total Rev from Suites | 0.28 | 0.29 | 0.3 | 0.31 | 0.3
% of Total Rev from New and Adjacent (d) | 0.14 | 0.14 | 0.15 | 0.15 | 0.15
% of Total Rev from AutoCAD and AutoCAD LT | 0.35 | 0.34 | 0.33 | 0.29 | 0.33
Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to Foreign
Currencies Compared to Comparable Prior Year Period:
FX Impact on Total Net Revenue | 14 | -1 | -10 | -15 | -12
FX Impact on Cost of Revenue and Total Operating Expenses | -2 | 6 | 7 | 1 | 12
FX Impact on Operating Income | 12 | 5 | -3 | -14 | 0
Gross Margin by Segment (c):
Platform Solutions and Emerging Business | 214 | 202 | 190 | 182 | 788
Architecture, Engineering and Construction | 151 | 149 | 151 | 192 | 643
Manufacturing | 134 | 130 | 122 | 145 | 531
Media and Entertainment | 42 | 39 | 38 | 38 | 157
Unallocated amounts | -11 | -11 | -11 | -12 | -45
Common Stock Statistics (in millions):
Common Shares Outstanding | 229.7 | 226.7 | 224.5 | 223.6 | 223.6
Fully Diluted Weighted Average Shares Outstanding | 234.1 | 232.1 | 229.9 | 229.6 | 231.7
Shares Repurchased | 2.5 | 3.4 | 4 | 2.6 | 12.5
(a) Totals may not agree with the sum of the components due to rounding.
(b) Earnings per share were computed independently for each of the periods presented; therefore the sum of the earnings per share amounts for the quarters may not equal the total for the year.
(c) Prior amounts have been conformed to align with the current period presentation.
(d) The first three quarters of 2013 percentages have been updated to reflect an adjustment implemented after we reported our results of operations for the third quarter of fiscal 2013.
(e) Starting in 1Q fiscal 2014, [NAME] will discontinue reporting revenue from upgrades and crossgrades and will report only total license revenue and total maintenance revenue.
(1) To supplement our consolidated financial statements presented on a GAAP basis, [NAME] provides investors with certain non-GAAP measures including non-GAAP gross margin, non-GAAP operating expenses,  non-GAAP operating margin, non-GAAP net income, and non-GAAP net income per share. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, gain and loss on strategic investments, and related income tax expenses.  See our reconciliation of GAAP financial measures to non-GAAP financial measures herein.  We believe these exclusions are appropriate to enhance an overall  understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results.  These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of [NAME]'s underlying operational results and trends and our marketplace performance.  For example, non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results.  In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies.  The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results.  The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States.  Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying [NAME]'s press release.
 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2013
(2) GAAP Gross Margin | 0.9 | 0.89 | 0.89 | 0.9 | 0.9
Stock-based compensation expense | —% | —% | —% | —% | —%
Amortization of developed technology | 0.02 | 0.02 | 0.02 | 0.02 | 0.02
Non-GAAP Gross Margin | 0.92 | 0.91 | 0.91 | 0.92 | 0.92
(3) GAAP Operating Expenses | 436 | 416 | 456 | 460 | 1768
Stock-based compensation expense | -32 | -32 | -51 | -36 | -151
Amortization of customer relationships and trade names | -8 | -8 | -14 | -13 | -42
Restructuring (charges) benefits, net | 0 | 0 | -37 | -7 | -44
Non-GAAP Operating Expenses | 396 | 376 | 355 | 404 | 1531
(4) GAAP Operating Margin | 0.16 | 0.16 | 0.06 | 0.14 | 0.13
Stock-based compensation expense | 0.06 | 0.06 | 0.1 | 0.06 | 0.07
Amortization of developed technology | 0.02 | 0.02 | 0.02 | 0.02 | 0.01
Amortization of customer relationships and trade names | 0.01 | 0.01 | 0.02 | 0.02 | 0.02
Restructuring charges (benefits), net | —% | —% | 0.07 | 0.01 | 0.02
Non-GAAP Operating Margin | 0.25 | 0.25 | 0.27 | 0.25 | 0.25
(5) GAAP Net Income | 79 | 65 | 29 | 75 | 248
Stock-based compensation expense | 33 | 34 | 52 | 38 | 156
Amortization of developed technology | 10 | 10 | 10 | 10 | 40
Amortization of customer relationships and trade names | 8 | 8 | 14 | 13 | 42
Restructuring charges (benefits), net | 0 | 0 | 37 | 7 | 44
(Gain) loss on strategic investments (7) | -1 | 5 | 0 | 0 | 4
Discrete GAAP tax provision items | -6 | 3 | -16 | -8 | -27
Income tax effect of non-GAAP adjustments | -14 | -12 | -17 | -14 | -57
Non-GAAP Net Income | 109 | 111 | 109 | 121 | 450
(6) GAAP Diluted Net Income Per Share | 0.34 | 0.28 | 0.13 | 0.32 | 1.07
Stock-based compensation expense | 0.14 | 0.15 | 0.23 | 0.16 | 0.67
Amortization of developed technology | 0.04 | 0.04 | 0.04 | 0.05 | 0.18
Amortization of customer relationships and trade names | 0.03 | 0.03 | 0.06 | 0.05 | 0.18
Restructuring charges (benefits), net | 0 | 0 | 0.15 | 0.03 | 0.18
(Gain) loss on strategic investments (7) | 0 | 0.02 | 0 | 0 | 0.02
Discrete GAAP tax provision items | -0.03 | 0.01 | -0.07 | -0.02 | -0.12
Income tax effect of non-GAAP adjustments | -0.05 | -0.05 | -0.07 | -0.06 | -0.24
Non-GAAP Diluted Net Income Per Share | 0.47 | 0.48 | 0.47 | 0.53 | 1.94
(7) Effective in the second quarter of fiscal 2013, [NAME] began excluding gains and losses on strategic investments for purposes of its non-GAAP financial measures. Prior period non-GAAP interest and other income (expense), net, net income and earnings per share amounts have been revised to conform to the current period presentation.
Fiscal Year 2012 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2012
Financial Statistics ($ in millions, except per share data):
Total Net Revenue: | 528 | 546 | 549 | 592 | 2216
License and Other Revenue (d) | 317 | 327 | 325 | 365 | 1334
Subscription Revenue (d) | 211 | 219 | 223 | 228 | 881
GAAP Gross Margin | 0.9 | 0.89 | 0.89 | 0.9 | 0.9
Non-GAAP Gross Margin (1)(2) | 0.91 | 0.91 | 0.91 | 0.92 | 0.92
GAAP Operating Expenses | 395 | 394 | 399 | 443 | 1631
GAAP Operating Margin | 0.15 | 0.17 | 0.16 | 0.15 | 0.16
GAAP Net Income | 69 | 71 | 73 | 72 | 285
GAAP Diluted Net Income Per Share (c) | 0.29 | 0.3 | 0.32 | 0.31 | 1.22
Non-GAAP Operating Expenses  (1)(3) | 364 | 360 | 366 | 406 | 1495
Non-GAAP Operating Margin  (1)(4) | 0.23 | 0.25 | 0.25 | 0.24 | 0.24
Non-GAAP Net Income  (1)(5)(d) | 94 | 104 | 102 | 106 | 405
Non-GAAP Diluted Net Income Per Share  (1)(6)(c)(d) | 0.4 | 0.44 | 0.44 | 0.46 | 1.74
Total Cash and Marketable Securities | 1526 | 1553 | 1534 | 1604 | 1604
Days Sales Outstanding | 47 | 49 | 43 | 61 | 61
Capital Expenditures | 23 | 17 | 9 | 14 | 63
Cash Flow from Operating Activities | 128 | 132 | 138 | 175 | 574
GAAP Depreciation and Amortization | 25 | 30 | 31 | 30 | 116
Deferred Maintenance Revenue Balance | 543 | 566 | 553 | 633 | 633
Revenue by Geography (in millions):
Americas | 181 | 191 | 200 | 226 | 799
Europe, Middle East and Africa | 215 | 212 | 202 | 234 | 862
Asia Pacific | 132 | 143 | 146 | 133 | 555
% of Total Rev from Emerging Economies | 0.15 | 0.16 | 0.16 | 0.16 | 0.16
Revenue by Segment (in millions):
Platform Solutions and Emerging Business | 211 | 199 | 210 | 214 | 833
Architecture, Engineering and Construction | 141 | 158 | 152 | 175 | 626
Manufacturing | 123 | 136 | 134 | 148 | 540
Media and Entertainment | 53 | 54 | 53 | 55 | 216
Other Revenue Statistics:
% of Total Rev from Flagship | 0.61 | 0.56 | 0.57 | 0.56 | 0.58
% of Total Rev from Suites | 0.23 | 0.29 | 0.27 | 0.27 | 0.27
% of Total Rev from New and Adjacent | 0.15 | 0.15 | 0.16 | 0.17 | 0.16
% of Total Rev from AutoCAD and AutoCAD LT | 0.37 | 0.31 | 0.31 | 0.32 | 0.33
Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to Foreign
Currencies Compared to Comparable Prior Year Period (b) (in millions):
FX Impact on Total Net Revenue | -3 | 8 | 12 | 12 | 29
FX Impact on Cost of Revenue and Total Operating Expenses | -9 | -17 | -12 | -5 | -43
FX Impact on Operating Income | -12 | -9 | 0 | 7 | -14
Gross Margin by Segment (in millions):
Platform Solutions and Emerging Business | 199 | 187 | 198 | 204 | 788
Architecture, Engineering and Construction | 128 | 143 | 138 | 161 | 570
Manufacturing | 113 | 124 | 122 | 136 | 496
Media and Entertainment | 43 | 44 | 43 | 45 | 175
Unallocated amounts | -9 | -10 | -12 | -11 | -42
Common Stock Statistics (in millions):
Common Shares Outstanding | 230.5 | 228.8 | 226.6 | 225.9 | 225.9
Fully Diluted Weighted Average Shares Outstanding | 237.1 | 236.6 | 230.7 | 231.5 | 233.3
Shares Repurchased | 1.7 | 2.5 | 3.5 | 2 | 9.7
(a) Totals may not agree with the sum of the components due to rounding.
(b) Effective in the second quarter of fiscal 2012, [NAME] changed the way it calculates constant currency growth rates and foreign currency impact on Total Net Revenue, and Cost of Revenue and Total Operating Expenses.  Under the new methodology, all hedging gains and losses are removed from the calculation of constant currency growth rates, where previously [NAME] had not excluded hedging gains and losses from the prior period. All prior period comparative information has been revised to conform to the new methodology.
(c) Earnings per share were computed independently for each of the periods presented; therefore the sum of the earnings per share amounts for the quarters may not equal the total for the year.
(d) Prior period amounts have been changed to conform to current period presentation.
(1) To supplement our consolidated financial statements presented on a GAAP basis, [NAME] provides investors with certain non-GAAP measures including non-GAAP net income, non-GAAP net income per share, non-GAAP cost of license and other revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP total spend, non-GAAP income from operations and non-GAAP provision for income taxes.  These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles and related income tax expenses.  See our reconciliation of GAAP financial measures to non-GAAP financial measures herein.  We believe these exclusions are appropriate to enhance an overall  understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results.  These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of [NAME]'s underlying operational results and trends and our marketplace performance.  For example, non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results.  In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies.  Non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results.  The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States.  Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying [NAME]'s press release.
 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2012
(2) GAAP Gross Margin | 0.9 | 0.89 | 0.89 | 0.9 | 0.9
Stock-based compensation expense | —% | —% | —% | —% | —%
Amortization of developed technology | 0.01 | 0.02 | 0.02 | 0.02 | 0.02
Non-GAAP Gross Margin | 0.91 | 0.91 | 0.91 | 0.92 | 0.92
(3) GAAP Operating Expenses | 395 | 394 | 399 | 443 | 1631
Stock-based compensation expense | -25 | -26 | -25 | -29 | -105
Amortization of customer relationships and trade names | -7 | -9 | -8 | -8 | -32
Restructuring benefits, net | 0 | 1 | 0 | 0 | 1
Non-GAAP Operating Expenses | 364 | 360 | 366 | 406 | 1495
(4) GAAP Operating Margin | 0.15 | 0.17 | 0.16 | 0.15 | 0.16
Stock-based compensation expense | 0.05 | 0.05 | 0.05 | 0.05 | 0.05
Amortization of developed technology | 0.02 | 0.02 | 0.02 | 0.02 | 0.02
Amortization of customer relationships and trade names | 0.01 | 0.02 | 0.02 | 0.02 | 0.01
Restructuring benefits, net | —% | —% | —% | —% | —%
Non-GAAP Operating Margin | 0.23 | 0.25 | 0.25 | 0.24 | 0.24
(5) GAAP Net Income | 69 | 71 | 73 | 72 | 285
Stock-based compensation expense | 26 | 27 | 26 | 30 | 109
Amortization of developed technology | 8 | 9 | 11 | 10 | 38
Amortization of customer relationships and trade names | 7 | 9 | 8 | 8 | 32
Restructuring benefits, net | 0 | -1 | 0 | 0 | -1
Gain on strategic investments (7) | 0 | 0 | 0 | 0 | 0
Discrete GAAP tax provision items | -4 | 1 | -4 | 1 | -7
Income tax effect of non-GAAP adjustments | -12 | -12 | -11 | -15 | -51
Non-GAAP Net Income | 94 | 104 | 102 | 106 | 405
(6) GAAP Diluted Net Income Per Share | 0.29 | 0.3 | 0.32 | 0.31 | 1.22
Stock-based compensation expense | 0.11 | 0.12 | 0.11 | 0.13 | 0.47
Amortization of developed technology | 0.03 | 0.04 | 0.05 | 0.04 | 0.16
Amortization of customer relationships and trade names | 0.03 | 0.04 | 0.03 | 0.04 | 0.14
Restructuring benefits, net | 0 | -0.01 | 0 | 0 | -0.01
Gain on strategic investments (7) | 0 | 0 | 0 | 0 | 0
Discrete GAAP tax provision items | -0.02 | 0.01 | -0.02 | 0 | -0.03
Income tax effect of non-GAAP adjustments | -0.04 | -0.06 | -0.05 | -0.06 | -0.21
Non-GAAP Diluted Net Income Per Share | 0.4 | 0.44 | 0.44 | 0.46 | 1.74
(7) Effective in the second quarter of fiscal 2013, [NAME] began excluding certain investment gains and losses for purposes of its non-GAAP financial measures. Prior period non-GAAP interest and other income (expense), net, net income and earnings per share amounts have been revised to conform to the current period presentation.