Spreadsheet: 64665168-470a-4551-9869-09c2005eac12
Sheet: NonGAAP Cons IS

Autodesk, Inc.
Non-GAAP Condensed Consolidated Statements of Operations
(In millions, except per share data)
 |  | Q1 | Q2 | Q3 | Q4 |  |  | Q1 | Q2 | Q3 | Q4 |  |  | Q1 | Q2 | Q3 | Q4
 |  | April 30, | July 31, | October 31, | January 31, | FY |  | April 30, | July 31, | October 31, | January 31, | FY |  | April 30, | July 31, | October 31, | January 31, | FY
 |  | 2014 | 2014 | 2014 | 2015 | 2015 |  | 2013 | 2013 | 2013 | 2014 | 2014 |  | 2012 | 2012 | 2012 | 2013 | 2013
Net revenue:
License and other |  | 316.2 | 350.4 |  |  | 666.6 |  | 323.5 | 313.2 | 297.5 | 320.7 | 1254.9 |  | 355.2 | 334 | 310.2 | 364.7 | 1364.1
Subscription |  | 276.3 | 286.7 |  |  | 563 |  | 246.9 | 248.5 | 257.7 | 265.9 | 1019 |  | 233.4 | 234.7 | 237.8 | 242.2 | 948.1
Total net revenue |  | 592.5 | 637.1 |  |  | 1229.6 |  | 570.4 | 561.7 | 555.2 | 586.6 | 2273.9 |  | 588.6 | 568.7 | 548 | 606.9 | 2312.2
Cost of revenue:
Cost of license and other revenue |  | 36.6 | 38.9 |  |  | 75.5 |  | 33.7 | 31.9 | 32.8 | 36.4 | 134.8 |  | 30.6 | 32.5 | 31.1 | 30.9 | 125.1
Cost of subscription revenue |  | 27.4 | 32.4 |  |  | 59.8 |  | 21.5 | 23.5 | 22.1 | 22.2 | 89.3 |  | 17.1 | 16.5 | 15.6 | 19.3 | 68.5
Total cost of revenue |  | 64 | 71.3 |  |  | 135.3 |  | 55.2 | 55.4 | 54.9 | 58.6 | 224.1 |  | 47.7 | 49 | 46.7 | 50.2 | 193.6
Gross profit |  | 528.5 | 565.8 |  |  | 1094.3 |  | 515.2 | 506.3000000000001 | 500.3 | 528 | 2049.8 |  | 540.9 | 519.7 | 501.3 | 556.7 | 2118.6
Operating expenses:
Marketing and sales |  | 211.4 | 220 |  |  | 431.4 |  | 194.7 | 184.2 | 188.9 | 216.2 | 784 |  | 208.6 | 196.3 | 187.2 | 219.1 | 811.2
Research and development |  | 159.6 | 165.6 |  |  | 325.2 |  | 139.9 | 138.7 | 138.8 | 150 | 567.4 |  | 141.6 | 134.5 | 124.9 | 137.2 | 538.2
General and administrative |  | 55.5 | 65.1 |  |  | 120.6 |  | 43.7 | 46.8 | 50.3 | 47.1 | 187.9 |  | 45.7 | 45 | 42.5 | 48.1 | 181.3
Total operating expenses |  | 426.5 | 450.7 |  |  | 877.2 |  | 378.3 | 369.7 | 378 | 413.3 | 1539.3 |  | 395.9 | 375.8 | 354.6 | 404.4 | 1530.7
Income from operations |  | 102 | 115.1 |  |  | 217.1 |  | 136.9 | 136.6000000000001 | 122.3 | 114.7 | 510.5 |  | 145 | 143.9 | 146.7 | 152.3 | 587.9
Interest and other (expense) income, net |  | -3 | -3.7 |  |  | -6.7 |  | -7.7 | -1.6 | 0.8 | 5.4 | -3.1 |  | 2.4 | 4.2 | -0.2 | 1.7 | 8.1
Income before income taxes |  | 99 | 111.4 |  |  | 210.4 |  | 129.2 | 135.0000000000001 | 123.1 | 120.1 | 507.4 |  | 147.4 | 148.1 | 146.5 | 154 | 596
Provision for income taxes |  | -25.2 | -29.4 |  |  | -54.6 |  | -32.9 | -33.2 | -28.8 | -26.9 | -121.8 |  | -38.3 | -37 | -37.5 | -33.2 | -146
Net income |  | 73.8 | 82 |  |  | 155.8 |  | 96.3 | 101.8000000000001 | 94.3 | 93.2 | 385.6 |  | 109.1 | 111.1 | 109 | 120.8 | 450
Basic net income per share |  | 0.33 | 0.36 |  |  | 0.69 |  | 0.43 | 0.46 | 0.42 | 0.41 | 1.72 |  | 0.48 | 0.49 | 0.48 | 0.54 | 1.99
Diluted net income per share |  | 0.32 | 0.35 |  |  | 0.67 |  | 0.42 | 0.45 | 0.41 | 0.4 | 1.68 |  | 0.47 | 0.48 | 0.47 | 0.53 | 1.94
Weighted average shares used in computing basic non-GAAP net income per share |  | 227 | 227.3 |  |  | 227.1 |  | 223.8 | 223.1 | 223.1 | 225.5 | 224 |  | 228.1 | 227.8 | 225.5 | 224.1 | 226.4
Weighted average shares used in computing diluted non-GAAP net income per share |  | 231.6 | 232.4 |  |  | 232.4 |  | 229.3 | 228.3 | 227.7 | 231.1 | 229.6 |  | 234.1 | 232.1 | 229.9 | 229.6 | 231.7
Note 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 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.
Note 2:  Totals may not agree with the components due to rounding.
Note 3: Effective in second quarter of fiscal 2015, [NAME] elected to present amortization of purchased customer relationships, trade names, patents, and user lists as a separate line item within operating expenses.  As a result, amortization previously reflected in “General and Administrative” expense was reclassified to “Amortization of Purchased Intangibles" within Operating Expenses.  Prior period amounts have been revised to conform to the current period presentation.
Note 4:  Effective in the first quarter of fiscal 2014, [NAME] reclassified certain revenue associated with cloud service offerings from "License and Other" to "Subscription" and cost of revenue from "Cost of License and Other Revenue" to "Cost of Subscription Revenue." Prior period amounts have been revised to conform to the current period presentation.
Note 5:  Effective in the second quarter of fiscal 2013, [NAME] began excluding gains and losses on strategic investments for the 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.
Note 6:  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.