Autodesk 2016 Annual Report Download - page 128

2016 Form 10-K 56
Other Financial Information
In addition to our results determined under U.S. generally accepted accounting principles (“GAAP”) discussed above, we
believe the following non-GAAP measures are useful to investors in evaluating our operating performance. For the fiscal years
ended January 31, 2016, 2015, and 2014, our gross profit, gross margin, income from operations, operating margin, net (loss)
income, and diluted net (loss) income per share on a GAAP and non-GAAP basis were as follows (in millions except for year-
over-year change in total net revenue and billings, year-over-year change in net subscription revenue and billings, gross margin,
operating margin, and per share data):
Fiscal Year Ended January 31,
2016 2015 2014
(Unaudited)
Year-over-year change in total net revenue — % 10% (2)%
Year-over-year change in total net billings (1) 5 % 18% (4)%
Year-over-year change in net subscription revenue 9% 15% 7%
Year-over-year change in net subscription billings (1) 16 % 22% (1)%
Gross profit $ 2,133.4 $ 2,170.1 $ 1,999.6
Non-GAAP gross profit $ 2,194.2 $ 2,232.2 $ 2,049.8
Gross margin 85 % 86% 88 %
Non-GAAP gross margin 88 % 89% 90 %
Income from operations $ 1.3 $ 120.7 $ 284.8
Non-GAAP income from operations $ 280.7 $ 382.4 $ 510.5
Operating margin — % 5% 13 %
Non-GAAP operating margin 11 % 15% 22 %
Net (loss) income $ (330.5) $ 81.8 $ 228.8
Non-GAAP net income $ 194.1 $ 272.3 $ 385.6
Diluted net (loss) income per share (2) $ (1.46) $ 0.35 $ 1.00
Non-GAAP diluted income per share (2) $ 0.84 $ 1.17 $ 1.68
GAAP diluted shares used in per share calculation 226.0 227.1 224.0
Non-GAAP diluted weighted average shares used in per share calculation 230.7 232.4 229.6
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(1) Prior period was adjusted to conform with current period's presentation to include the effects from hedging on billings.
(2) Net (loss) income per share were computed independently for each of the periods presented; therefore the sum of the net (loss) income
per share amount for the quarters may not equal the total for the year.
For our internal budgeting and resource allocation process and as a means to evaluate period-to-period comparisons, we use
non-GAAP measures to supplement our consolidated financial statements presented on a GAAP basis. These non-GAAP measures
do not include certain items that may have a material impact upon our reported financial results. We also use non-GAAP measures
in making operating decisions because we believe those measures provide meaningful supplemental information regarding our
earning potential and performance for management by excluding certain expenses and charges that may not be indicative of our
core business operating results. For the reasons set forth below, we believe these non-GAAP financial measures are useful to
investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and
operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze
the health of our business. This allows investors and others to better understand and evaluate our operating results and future
prospects in the same manner as management, compare financial results across accounting periods and to those of peer companies
and to better understand the long-term performance of our core business. We also use some of these measures for purposes of
determining company-wide incentive compensation.
There are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in
accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The non-GAAP
financial measures included above are limited in value because they exclude certain items that may have a material impact upon
our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by
management about which charges are excluded from the non-GAAP financial measures. We compensate for these limitations by
2016 Annual Report