Spreadsheet: 656d8d9e-ee23-42ba-9ce5-fd6ec0896b1f
Sheet: Web - Fact Sheet

Autodesk, Inc.
Other Supplemental Financial Information (a)
Fiscal Year 2015 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2015
Financial Statistics ($ in millions, except per share data):
Total Net Revenue: | 593 |  |  |  | 593
License and Other Revenue | 316 |  |  |  | 316
Subscription Revenue | 276 |  |  |  | 276
GAAP Gross Margin | 0.87 |  |  |  | 0.87
Non-GAAP Gross Margin (1)(2) | 0.89 |  |  |  | 0.89
GAAP Operating Expenses | 472 |  |  |  | 472
GAAP Operating Margin | 0.07 |  |  |  | 0.07
GAAP Net Income | 28 |  |  |  | 28
GAAP Diluted Net Income Per Share (b) | 0.12 |  |  |  | 0.12
Non-GAAP Operating Expenses  (1)(3) | 427 |  |  |  | 427
Non-GAAP Operating Margin  (1)(4) | 0.17 |  |  |  | 0.17
Non-GAAP Net Income  (1)(5)(c) | 74 |  |  |  | 74
Non-GAAP Diluted Net Income Per Share  (1)(6)(b)(c) | 0.32 |  |  |  | 0.32
Total Cash and Marketable Securities | 2388 |  |  |  | 2388
Days Sales Outstanding | 50 |  |  |  | 50
Capital Expenditures | 15 |  |  |  | 15
Cash Flow from Operating Activities | 219 |  |  |  | 219
GAAP Depreciation, Amortization and Accretion | 36 |  |  |  | 36
Deferred Subscription Revenue Balance (c) | 848 |  |  |  | 848
Revenue by Geography:
Americas | 206 |  |  |  | 206
Europe, Middle East and Africa | 226 |  |  |  | 226
Asia Pacific | 161 |  |  |  | 161
% of Total Rev from Emerging Economies | 0.13 |  |  |  | 0.13
Revenue by Segment:
Platform Solutions and Emerging Business | 212 |  |  |  | 212
Architecture, Engineering and Construction | 196 |  |  |  | 196
Manufacturing | 147 |  |  |  | 147
Media and Entertainment | 38 |  |  |  | 38
Other Revenue Statistics:
% of Total Rev from Flagship | 0.5 |  |  |  | 0.5
% of Total Rev from Suites | 0.35 |  |  |  | 0.35
% of Total Rev from New and Adjacent | 0.14 |  |  |  | 0.14
% of Total Rev from AutoCAD and AutoCAD LT | 0.32 |  |  |  | 0.32
Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to
Foreign Currencies Compared to Comparable Prior Year Period:
FX Impact on Total Net Revenue | -9 |  |  |  | -9
FX Impact on Cost of Revenue and Total Operating Expenses | 2 |  |  |  | 2
FX Impact on Operating Income | -7 |  |  |  | -7
Gross Margin by Segment:
Platform Solutions and Emerging Business | 191 |  |  |  | 191
Architecture, Engineering and Construction | 176 |  |  |  | 176
Manufacturing | 133 |  |  |  | 133
Media and Entertainment | 29 |  |  |  | 29
Unallocated amounts | -15 |  |  |  | -15
Common Stock Statistics:
Common Shares Outstanding | 227.5 |  |  |  | 227.5
Fully Diluted Weighted Average Shares Outstanding | 231.6 |  |  |  | 231.6
Shares Repurchased | 2 |  |  |  | 2
Subscriptions (in millions):
Total Subscriptions (c) | 1.94 |  |  |  | 1.94
(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) Total Subscriptions consists of subscriptions from our maintenance, desktop, cloud service and enterprise license offerings that are active as of the quarter end date.  For certain cloud based and enterprise license offerings, subscriptions represent the monthly average activity within the last three months of the quarter end date.  Total subscriptions do not include data from education offerings, consumer product offerings, certain [NAME] product offerings, [NAME], Autodesk Constructware and Delcam products.  Subscriptions acquired with the acquisition of a business are captured once the data conforms to our subscription count methodology and when added, may cause variability in the quarterly comparisons of this calculation.
(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, non-GAAP net income per share and billings. Excluding net billings, 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.  In the case of billings, we reconcile to revenue by adjusting for the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period and other discounts. 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 2015
(2) GAAP Gross Margin | 0.87 |  |  |  | 0.87
Stock-based compensation expense | —% |  |  |  | —%
Amortization of developed technology | 0.02 |  |  |  | 0.02
Non-GAAP Gross Margin | 0.89 |  |  |  | 0.89
(3) GAAP Operating Expenses | 472 |  |  |  | 472
Stock-based compensation expense | -32 |  |  |  | -32
Amortization of customer relationships and trade names | -11 |  |  |  | -11
Restructuring (charges) benefits, net | -2 |  |  |  | -2
Non-GAAP Operating Expenses | 427 |  |  |  | 427
(4) GAAP Operating Margin | 0.07 |  |  |  | 0.07
Stock-based compensation expense | 0.06 |  |  |  | 0.06
Amortization of developed technology | 0.02 |  |  |  | 0.02
Amortization of customer relationships and trade names | 0.02 |  |  |  | 0.02
Restructuring charges (benefits), net | —% |  |  |  | —%
Non-GAAP Operating Margin | 0.17 |  |  |  | 0.17
(5) GAAP Net Income | 28 |  |  |  | 28
Stock-based compensation expense | 34 |  |  |  | 34
Amortization of developed technology | 13 |  |  |  | 13
Amortization of customer relationships and trade names | 11 |  |  |  | 11
Restructuring charges (benefits), net | 2 |  |  |  | 2
Loss (gain) on strategic investments | 4 |  |  |  | 4
Discrete GAAP tax provision items | -2 |  |  |  | -2
Income tax effect of non-GAAP adjustments | -16 |  |  |  | -16
Non-GAAP Net Income | 74 |  |  |  | 74
(6) GAAP Diluted Net Income Per Share | 0.12 |  |  |  | 0.12
Stock-based compensation expense | 0.14 |  |  |  | 0.14
Amortization of developed technology | 0.06 |  |  |  | 0.06
Amortization of customer relationships and trade names | 0.05 |  |  |  | 0.05
Restructuring charges (benefits), net | 0.01 |  |  |  | 0.01
Loss (gain) on strategic investments | 0.02 |  |  |  | 0.02
Discrete GAAP tax provision items | -0.01 |  |  |  | -0.01
Income tax effect of non-GAAP adjustments | -0.07 |  |  |  | -0.07
Non-GAAP Diluted Net Income Per Share | 0.32 |  |  |  | 0.32
Reconciliation for Billings:
 | Q115
Year over year change in GAAP Net Revenue | 0.04
Change in deferred revenue in the current period | 0.07
Change in acquisition related deferred revenue and other in the current period | -0.01
Year over year change in Billings | 0.1
Reconciliation for Guidance:
The following is a reconciliation of anticipated full year fiscal 2015 GAAP and non-GAAP operating margins:
 | Fiscal 2015
GAAP operating margin | 0.03 | 0.05
Stock-based compensation expense | 0.07 | 0.07
Amortization of purchased intangibles | 0.04 | 0.04
Restructuring charges | —% | —%
Non-GAAP operating margin | 0.14 | 0.16
Reconciliation for Long Term Operating Margins:
[NAME] is not able to provide targets for our long term (ending with fiscal year 2018) 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 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 | 587 | 2274
License and Other Revenue | 324 | 313 | 298 | 321 | 1255
Subscription Revenue | 247 | 249 | 258 | 266 | 1019
GAAP Gross Margin | 0.88 | 0.88 | 0.88 | 0.88 | 0.88
Non-GAAP Gross Margin (1)(2) | 0.9 | 0.9 | 0.9 | 0.9 | 0.9
GAAP Operating Expenses | 422 | 410 | 420 | 463 | 1715
GAAP Operating Margin | 0.14 | 0.15 | 0.12 | 0.09 | 0.13
GAAP Net Income | 56 | 62 | 58 | 54 | 229
GAAP Diluted Net Income Per Share (b) | 0.24 | 0.27 | 0.25 | 0.23 | 1
Non-GAAP Operating Expenses  (1)(3) | 378 | 370 | 378 | 413 | 1539
Non-GAAP Operating Margin  (1)(4) | 0.24 | 0.24 | 0.22 | 0.2 | 0.22
Non-GAAP Net Income  (1)(5)(c) | 96 | 102 | 94 | 93 | 386
Non-GAAP Diluted Net Income Per Share  (1)(6)(b)(c) | 0.42 | 0.45 | 0.41 | 0.4 | 1.68
Total Cash and Marketable Securities | 2480 | 2408 | 2479 | 2544 | 2544
Days Sales Outstanding | 46 | 49 | 50 | 66 | 66
Capital Expenditures | 26 | 17 | 12 | 9 | 64
Cash Flow from Operating Activities | 224 | 65 | 91 | 184 | 564
GAAP Depreciation, Amortization and Accretion | 33 | 32 | 31 | 33 | 129
Deferred Subscription Revenue Balance (c) | 775 | 736 | 699 | 789 | 789
Revenue by Geography:
Americas | 202 | 202 | 208 | 207 | 819
Europe, Middle East and Africa | 216 | 202 | 204 | 229 | 852
Asia Pacific | 152 | 158 | 143 | 150 | 603
% of Total Rev from Emerging Economies | 0.13 | 0.15 | 0.15 | 0.15 | 0.15
Revenue by Segment:
Platform Solutions and Emerging Business | 213 | 197 | 183 | 196 | 789
Architecture, Engineering and Construction | 172 | 177 | 186 | 196 | 731
Manufacturing | 139 | 144 | 142 | 154 | 579
Media and Entertainment | 47 | 43 | 44 | 41 | 175
Other Revenue Statistics:
% of Total Rev from Flagship | 0.55 | 0.51 | 0.5 | 0.49 | 0.51
% of Total Rev from Suites | 0.31 | 0.34 | 0.36 | 0.37 | 0.34
% of Total Rev from New and Adjacent | 0.14 | 0.14 | 0.15 | 0.14 | 0.14
% of Total Rev from AutoCAD and AutoCAD LT | 0.34 | 0.31 | 0.29 | 0.29 | 0.3
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 | -8 | -54
FX Impact on Cost of Revenue and Total Operating Expenses | 5 | 4 | 3 | 3 | 16
FX Impact on Operating Income | -12 | -13 | -10 | -5 | -38
Gross Margin by Segment:
Platform Solutions and Emerging Business | 195 | 180 | 165.9 | 176 | 717
Architecture, Engineering and Construction | 156 | 161 | 169 | 178 | 664
Manufacturing | 128 | 132 | 130 | 142 | 532
Media and Entertainment | 37 | 34 | 35 | 32 | 138
Unallocated amounts | -12 | -12 | -12 | -14 | -50
Common Stock Statistics:
Common Shares Outstanding | 224.4 | 222.5 | 224.6 | 226.7 | 226.7
Fully Diluted Weighted Average Shares Outstanding | 229.3 | 228.3 | 227.7 | 231.1 | 229.6
Shares Repurchased | 3.2 | 3.1 | 2 | 2.2 | 10.5
(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.
(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 | 0.88
Stock-based compensation expense | 0 | 0 | —% | —% | —%
Amortization of developed technology | 0.02 | 0.02 | 0.02 | 0.02 | 0.02
Non-GAAP Gross Margin | 0.9 | 0.9 | 0.9 | 0.9 | 0.9
(3) GAAP Operating Expenses | 422 | 410 | 420 | 463 | 1715
Stock-based compensation expense | -32 | -30 | -30 | -34 | -126
Amortization of customer relationships and trade names | -11 | -9 | -7 | -9 | -37
Restructuring (charges) benefits, net | 0 | -2 | -4 | -6 | -13
Non-GAAP Operating Expenses | 378 | 370 | 378 | 413 | 1539
(4) GAAP Operating Margin | 0.14 | 0.15 | 0.12 | 0.09 | 0.13
Stock-based compensation expense | 0.06 | 0.06 | 0.06 | 0.06 | 0.06
Amortization of developed technology | 0.02 | 0.02 | 0.02 | 0.02 | 0.02
Amortization of customer relationships and trade names | 0.02 | 0.01 | 0.01 | 0.02 | 0.01
Restructuring charges (benefits), net | 0 | 0 | 0.01 | 0.01 | —%
Non-GAAP Operating Margin | 0.24 | 0.24 | 0.22 | 0.2 | 0.22
(5) GAAP Net Income | 56 | 62 | 58 | 54 | 229
Stock-based compensation expense | 34 | 31 | 32 | 36 | 132
Amortization of developed technology | 11 | 11 | 11 | 12 | 44
Amortization of customer relationships and trade names | 11 | 9 | 7 | 9 | 37
Restructuring charges (benefits), net | 0 | 2 | 4 | 6 | 13
(Gain) loss on strategic investments | 1 | 0 | 0 | 1 | 2
Discrete GAAP tax provision items | -1 | 1 | -3 | -8 | -10
Income tax effect of non-GAAP adjustments | -15 | -14 | -14 | -17 | -61
Non-GAAP Net Income | 96 | 102 | 94 | 93 | 386
(6) GAAP Diluted Net Income Per Share | 0.24 | 0.27 | 0.25 | 0.23 | 1
Stock-based compensation expense | 0.15 | 0.14 | 0.14 | 0.15 | 0.57
Amortization of developed technology | 0.05 | 0.05 | 0.04 | 0.05 | 0.19
Amortization of customer relationships and trade names | 0.05 | 0.04 | 0.03 | 0.04 | 0.16
Restructuring charges (benefits), net | 0 | 0.01 | 0.02 | 0.03 | 0.06
(Gain) loss on strategic investments | 0 | 0 | 0 | 0 | 0
Discrete GAAP tax provision items | 0 | 0 | -0.01 | -0.03 | -0.04
Income tax effect of non-GAAP adjustments | -0.07 | -0.06 | -0.06 | -0.07 | -0.26
Non-GAAP Diluted Net Income Per Share | 0.42 | 0.45 | 0.41 | 0.4 | 1.68
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.