Spreadsheet: 1bf31997-0c94-4454-9e1c-c2a3fb87af23
Sheet: Web - Fact Sheet

Autodesk, Inc.
Other Supplemental Financial Information
(In millions, except per share data)
Other Supplemental Financial Information (a)
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 |  | 1705
License and Other Revenue | 361 | 341 | 317 |  | 1019
[NAME] | 228 | 228 | 231 |  | 687
GAAP Gross Margin | 0.9 | 0.89 | 0.89 |  | 0.9
Non-GAAP Gross Margin (1)(2) | 0.92 | 0.91 | 0.91 |  | 0.92
GAAP Operating Expenses | 436 | 416 | 456 |  | 1308
GAAP Operating Margin | 0.16 | 0.16 | 0.06 |  | 0.13
GAAP Net Income | 79 | 65 | 29 |  | 173
GAAP Diluted Net Income Per Share (b) | 0.34 | 0.28 | 0.13 |  | 0.74
Non-GAAP Operating Expenses  (1)(3) | 396 | 376 | 356 |  | 1128
Non-GAAP Operating Margin  (1)(4) | 0.25 | 0.25 | 0.26 |  | 0.25
Non-GAAP Net Income  (1)(5)(c) | 109 | 111 | 108 |  | 328
Non-GAAP Diluted Net Income Per Share  (1)(6)(b)(c) | 0.47 | 0.48 | 0.47 |  | 1.41
Total Cash and Marketable Securities | 1796 | 1717 | 1737 |  | 1737
Days Sales Outstanding | 46 | 58 | 49 |  | 49
Capital Expenditures | 12 | 17 | 17 |  | 45
Cash Flow from Operating Activities | 139 | 107 | 157 |  | 404
GAAP Depreciation and Amortization | 29 | 29 | 35 |  | 93
Deferred Maintenance Revenue Balance | 648 | 672 | 634 |  | 634
Revenue by Geography:
Americas | 208 | 199 | 209 |  | 615
Europe, Middle East and Africa | 224 | 210 | 196 |  | 630
Asia Pacific | 157 | 161 | 142 |  | 459
% of Total Rev from Emerging Economies | 0.14 | 0.15 | 0.15 |  | 0.15
Revenue by Segment (c):
Platform Solutions and Emerging Business | 229 | 217 | 205 |  | 650
Architecture, Engineering and Construction | 163 | 162 | 163 |  | 489
Manufacturing | 146 | 141 | 132 |  | 419
Media and Entertainment | 51 | 49 | 48 |  | 148
Other Revenue Statistics (c):
% of Total Rev from Flagship | 0.58 | 0.56 | 0.55 |  | 0.56
% of Total Rev from Suites | 0.28 | 0.29 | 0.3 |  | 0.29
% of Total Rev from New and Adjacent | 0.14 | 0.14 | 0.15 |  | 0.15
% of Total Rev from AutoCAD and AutoCAD LT | 0.35 | 0.34 | 0.33 |  | 0.34
Upgrade and Crossgrade Revenue | 50 | 34 | 32 |  | 116
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 |  | 2
FX Impact on Cost of Revenue and Total Operating Expenses | -2 | 6 | 7 |  | 12
FX Impact on Operating Income | 12 | 5 | -3 |  | 14
Gross Margin by Segment (c):
Platform Solutions and Emerging Business | 216 | 203 | 191 |  | 610
Architecture, Engineering and Construction | 149 | 147 | 150 |  | 446
Manufacturing | 134 | 130 | 122 |  | 387
Media and Entertainment | 42 | 39 | 38 |  | 119
Unallocated amounts | -11 | -11 | -11 |  | -33
Common Stock Statistics:
Common Shares Outstanding | 229.7 | 226.7 | 224.5 |  | 224.5
Fully Diluted Weighted Average Shares Outstanding | 234.1 | 232.1 | 230.5 |  | 232
Shares Repurchased | 2.5 | 3.4 | 4 |  | 9.9
(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 net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating margin.  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 investment, 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, the 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
Stock-based compensation expense | 0 | 0 | 0 |  | 0
Amortization of developed technology | 0.02 | 0.02 | 0.02 |  | 0.02
Non-GAAP Gross Margin | 0.92 | 0.91 | 0.91 |  | 0.92
(3) GAAP Operating Expenses | 436 | 416 | 456 |  | 1308
Stock-based compensation expense | -32 | -32 | -51 |  | -115
Amortization of customer relationships and trade names | -8 | -8 | -14 |  | -30
Restructuring benefits (charges), net | 0 | 0 | -35 |  | -35
Non-GAAP Operating Expenses | 396 | 376 | 356 |  | 1128
(4) GAAP Operating Margin | 0.16 | 0.16 | 0.06 |  | 0.13
Stock-based compensation expense | 0.06 | 0.06 | 0.09 |  | 0.07
Amortization of developed technology | 0.02 | 0.02 | 0.02 |  | 0.01
Amortization of customer relationships and trade names | 0.01 | 0.01 | 0.03 |  | 0.02
Restructuring (benefits) charges, net | 0 | 0 | 0.06 |  | 0.02
Non-GAAP Operating Margin | 0.25 | 0.25 | 0.26 |  | 0.25
(5) GAAP Net Income | 79 | 65 | 29 |  | 173
Stock-based compensation expense | 33 | 34 | 52 |  | 119
Amortization of developed technology | 10 | 10 | 10 |  | 29
Amortization of customer relationships and trade names | 8 | 8 | 14 |  | 30
Restructuring (benefits) charges, net | 0 | 0 | 35 |  | 35
(Gain) loss on strategic investments (7) | -1 | 5 | 0 |  | 4
Discrete GAAP tax provision items | -6 | 3 | -15 |  | -19
Income tax effect of non-GAAP adjustments | -14 | -12 | -17 |  | -42
Non-GAAP Net Income | 109 | 111 | 108 |  | 328
(6) GAAP Diluted Net Income Per Share | 0.34 | 0.28 | 0.13 |  | 0.74
Stock-based compensation expense | 0.14 | 0.15 | 0.23 |  | 0.51
Amortization of developed technology | 0.04 | 0.04 | 0.04 |  | 0.13
Amortization of customer relationships and trade names | 0.03 | 0.03 | 0.06 |  | 0.13
Restructuring charges, net | 0 | 0 | 0.15 |  | 0.15
(Gain) loss on strategic investments (7) | 0 | 0.02 | 0 |  | 0.01
Discrete GAAP tax provision items | -0.03 | 0.01 | -0.07 |  | -0.08
Income tax effect of non-GAAP adjustments | -0.05 | -0.05 | -0.07 |  | -0.18
Non-GAAP Diluted Net Income Per Share | 0.47 | 0.48 | 0.47 |  | 1.41
(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.
Reconciliation for Fiscal 2013:
The following is a reconciliation of anticipated fiscal 2013 GAAP and non-GAAP operating margins:
 | FISCAL 2013
Non-GAAP Revenue Guidance Range (in millions) | 2275 | 2305
GAAP operating margin basis point improvement over prior year | -375 | -295
Stock-based compensation expense | 205 | 195
Amortization of purchased intangibles | 50 | 45
Restructuring charges | 200 | 195
Non-GAAP operating margin basis point improvement over prior year | 80 | 140
Reconciliation for Long Term Operating Margins:
[NAME] is not able to provide targets for our long term (ending with fiscal year 2015) GAAP operating margins at this time because of the difficulty of estimating certain items that are excluded from non-GAAP that affect operating margin, such as charges related to stock-based compensation expense and amortization of acquisition related intangibles, the effect of which may be significant.
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 | 323 | 333 | 331 | 370 | 1358
[NAME] | 205 | 213 | 217 | 222 | 858
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:
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:
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
Upgrade and Crossgrade Revenue | 53 | 41 | 37 | 54 | 185
Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to ForeignCurrencies Compared to Comparable Prior Year Period (b):
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:
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:
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.  [NAME] changed the way it calculates foreign currency impact on Total Net Revenue, and Cost of Revenue and Total Operating Expenses to include the impact of [NAME]'s hedging program on both the current and prior period.  [NAME] believes these changes are more useful to the users of [NAME]'s financial information as they more fully reflect the underlying business growth rates and the impact of movements in foreign currency on [NAME]'s U.S. dollar financial results.  All prior period comparative information has been revised to conform to the new methodology.
 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2012
Constant currency revenue growth | 0.12 | 0.14 | 0.12 | 0.1 | 0.12
(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, the 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 2012
(2) GAAP Gross Margin | 0.9 | 0.89 | 0.89 | 0.9 | 0.9
Stock-based compensation expense | 0 | 0 | 0 | 0 | 0
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 | 0 | 0 | 0 | 0 | 0
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.
Fiscal Year 2011 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2011
Financial Statistics ($ in millions, except per share data):
Total Net Revenue | 475 | 473 | 477 | 528 | 1952
License and Other Revenue | 280 | 281 | 282 | 330 | 1172
[NAME] | 195 | 192 | 195 | 198 | 780
GAAP Gross Margin | 0.89 | 0.9 | 0.9 | 0.91 | 0.9
Non-GAAP Gross Margin (1)(2) | 0.91 | 0.92 | 0.92 | 0.93 | 0.92
GAAP Operating Expenses | 373 | 345 | 359 | 408 | 1484
GAAP Operating Margin | 0.11 | 0.17 | 0.15 | 0.14 | 0.14
GAAP Net Income | 37 | 60 | 54 | 62 | 212
GAAP Diluted Net Income Per Share (c) | 0.16 | 0.25 | 0.23 | 0.26 | 0.9
Non-GAAP Operating Expenses  (1)(3) | 336 | 317 | 337 | 382 | 1371
Non-GAAP Operating Margin  (1)(4) | 0.2 | 0.25 | 0.21 | 0.2 | 0.21
Non-GAAP Net Income  (1)(5) | 68 | 85 | 75 | 81 | 308
Non-GAAP Diluted Net Income Per Share  (1)(6)(c) | 0.29 | 0.36 | 0.32 | 0.34 | 1.31
Total Cash and Marketable Securities | 1239 | 1271 | 1337 | 1467 | 1467
Days Sales Outstanding | 42 | 44 | 46 | 55 | 55
Capital Expenditures | 6 | 5 | 7 | 10 | 28
Cash Flow from Operating Activities | 139 | 112 | 114 | 176 | 541
GAAP Depreciation and Amortization | 27 | 26 | 27 | 26 | 105
Deferred Maintenance Revenue Balance | 492 | 473 | 450 | 509 | 509
Revenue by Geography:
Americas | 161 | 168 | 179 | 193 | 701
Europe, Middle East and Africa | 199 | 189 | 183 | 212 | 783
Asia Pacific | 115 | 116 | 115 | 123 | 468
Revenue by Segment:
Platform Solutions and Emerging Business | 184 | 177 | 174 | 181 | 716
Architecture, Engineering and Construction | 137 | 133 | 136 | 162 | 568
Manufacturing | 108 | 113 | 117 | 133 | 470
Media and Entertainment | 46 | 50 | 50 | 52 | 198
Other Revenue Statistics:
% of Total Rev from Flagship Revenue (d) | 0.62 | 0.61 | 0.6 | 0.58 | 0.6
% of Total Rev from Suites Revenue (d) | 0.22 | 0.23 | 0.23 | 0.25 | 0.23
% of Total Rev from New and Adjacent Revenue (d) | 0.15 | 0.16 | 0.16 | 0.17 | 0.16
% of Total Rev from AutoCAD and AutoCAD LT | 0.36 | 0.34 | 0.33 | 0.31 | 0.33
% of Total Rev from Emerging Economies | 0.14 | 0.15 | 0.16 | 0.16 | 0.15
Upgrade and Crossgrade Revenue | 51 | 18 | 32 | 61 | 162
Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to Foreign Currencies Compared to Comparable Prior Year Period (b):
FX Impact on Total Net Revenue | 20 | 11 | 10 | 1 | 41
FX Impact on Cost of Revenue and Total Operating Expenses | -10 | 0 | -2 | -1 | -13
FX Impact on Operating Income | 10 | 11 | 8 | 0 | 28
Gross Margin by Segment:
Platform Solutions and Emerging Business | 173 | 168 | 164 | 173 | 679
Architecture, Engineering and Construction | 123 | 122 | 124 | 149 | 518
Manufacturing | 100 | 105 | 110 | 125 | 439
Media and Entertainment | 36 | 38 | 39 | 41 | 154
Unallocated amounts | -9 | -9 | -9 | -9 | -35
Common Stock Statistics:
Common Shares Outstanding | 229.4 | 227.2 | 227.1 | 227 | 227
Fully Diluted Weighted Average Shares Outstanding | 234.6 | 233.8 | 232.4 | 235 | 234.2
Shares Repurchased | 2 | 2.5 | 2.5 | 2 | 9
(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.  [NAME] changed the way it calculates foreign currency impact on Total Net Revenue, and Cost of Revenue and Total Operating Expenses to include the impact of [NAME]'s hedging program on both the current and prior period.  [NAME] believes these changes are more useful to the users of [NAME]'s financial information as they more fully reflect the underlying business growth rates and the impact of movements in foreign currency on [NAME]'s U.S. dollar financial results.  All prior period comparative information has been revised to conform to the new methodology.
 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2011
Constant currency revenue growth | 0.07 | 0.11 | 0.12 | 0.15 | 0.11
(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 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 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, the 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 2011
(2) GAAP Gross Margin | 0.89 | 0.9 | 0.9 | 0.91 | 0.9
Stock-based compensation expense | 0 | 0 | 0 | 0 | 0
Amortization of developed technology | 0.02 | 0.02 | 0.02 | 0.02 | 0.02
Non-GAAP Gross Margin | 0.91 | 0.92 | 0.92 | 0.93 | 0.92
(3) GAAP Operating Expenses | 373 | 345 | 359 | 408 | 1484
Stock-based compensation expense | -24 | -20 | -16 | -18 | -78
Amortization of customer relationships and trade names | -6 | -6 | -6 | -6 | -24
Restructuring charges, net | -7 | -2 | 0 | -2 | -11
Non-GAAP Operating Expenses | 336 | 317 | 337 | 382 | 1371
(4) GAAP Operating Margin | 0.11 | 0.17 | 0.15 | 0.14 | 0.14
Stock-based compensation expense | 0.05 | 0.05 | 0.03 | 0.03 | 0.04
Amortization of developed technology | 0.02 | 0.02 | 0.02 | 0.02 | 0.02
Amortization of customer relationships and trade names | 0.01 | 0.01 | 0.01 | 0.01 | 0.01
Restructuring charges, net | 0.01 | 0 | 0 | 0 | 0
Non-GAAP Operating Margin | 0.2 | 0.25 | 0.21 | 0.2 | 0.21
(5) GAAP Net Income | 37 | 60 | 54 | 62 | 212
Stock-based compensation expense | 24 | 21 | 17 | 18 | 80
Amortization of developed technology | 8 | 8 | 8 | 8 | 32
Amortization of customer relationships and trade names | 6 | 6 | 6 | 6 | 24
Restructuring charges, net | 7 | 2 | 0 | 2 | 11
(Gain) loss on strategic investments (7) | 0 | -1 | 0 | -2 | -3
Discrete GAAP tax provision items (8) | -2 | 0 | 0 | -5 | -6
Income tax effect of non-GAAP adjustments | -12 | -12 | -10 | -8 | -43
Non-GAAP Net Income | 68 | 84 | 75 | 81 | 307
(6) GAAP Diluted Net Income Per Share | 0.16 | 0.25 | 0.23 | 0.26 | 0.9
Stock-based compensation expense | 0.1 | 0.09 | 0.07 | 0.08 | 0.34
Amortization of developed technology | 0.03 | 0.03 | 0.04 | 0.04 | 0.14
Amortization of customer relationships and trade names | 0.03 | 0.03 | 0.02 | 0.02 | 0.1
Restructuring charges, net | 0.03 | 0.01 | 0 | 0.01 | 0.05
(Gain) loss on strategic investments (7) | 0 | 0 | 0 | -0.01 | -0.01
Discrete GAAP tax provision items (8) | -0.01 | 0 | 0 | -0.02 | -0.03
Income tax effect of non-GAAP adjustments | -0.05 | -0.05 | -0.04 | -0.04 | -0.18
Non-GAAP Diluted Net Income Per Share | 0.29 | 0.36 | 0.32 | 0.34 | 1.31
(7) Effective in the second quarter of fiscal 2011, [NAME] began excluding certain discrete GAAP tax provision items for purposes of its non-GAAP financial measures. Prior period non-GAAP income tax expense, net income and earnings per share amounts have been revised to conform to the current period presentation.