Autodesk 2016 Annual Report Download - page 131

2016 Form 10-K 59
Fiscal Year Ended
January 31,
2016 2015 2014
(Unaudited)
Diluted net (loss) income per share (2) $ (1.46) $ 0.35 $ 1.00
Stock-based compensation expense 0.86 0.71 0.57
Amortization of developed technologies 0.21 0.23 0.19
Amortization of purchased intangibles 0.15 0.17 0.16
Restructuring charges, net — 0.01 0.06
Loss on strategic investments (0.01) 0.10 —
Establishment of valuation allowance on deferred tax assets 1.01 — —
Discrete tax provision items — (0.08) (0.04)
Income tax effect of non-GAAP adjustments 0.08 (0.32) (0.26)
Non-GAAP diluted net income per share (2) $ 0.84 $ 1.17 $ 1.68
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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.
Our non-GAAP financial measures may exclude the following:
Stock-based compensation expenses. We exclude stock-based compensation expenses from non-GAAP measures primarily
because they are non-cash expenses and management finds it useful to exclude certain non-cash charges to assess the appropriate
level of various operating expenses to assist in budgeting, planning, and forecasting future periods. Moreover, because of varying
available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB
ASC Topic 718, we believe excluding stock-based compensation expenses allows investors to make meaningful comparisons
between our recurring core business operating results and those of other companies.
Amortization of acquisition-related developed technologies and purchased intangibles. We incur amortization of acquisition-
related developed technology and purchased intangibles in connection with acquisitions of certain businesses and technologies.
Amortization of developed technologies and purchased intangibles is inconsistent in amount and frequency and is significantly
affected by the timing and size of our acquisitions. Management finds it useful to exclude these variable charges from our cost of
revenues to assist in budgeting, planning, and forecasting future periods. Investors should note that the use of intangible assets
contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well.
Amortization of developed technologies and purchased intangible assets will recur in future periods.
Goodwill impairment. This is a non-cash charge to write-down goodwill to fair value when there was an indication that the
asset was impaired. As explained above, management finds it useful to exclude certain non-cash charges to assess the appropriate
level of various operating expenses to assist in budgeting, planning, and forecasting future periods.
Restructuring charges (benefits), net. These expenses are associated with realigning our business strategies based on current
economic conditions. In connection with these restructuring actions, we recognize costs related to termination benefits for former
employees whose positions were eliminated, and the closure of facilities and cancellation of certain contracts. We exclude these
charges because these expenses are not reflective of ongoing business and operating results. We believe it is useful for investors
to understand the effects of these items on our total operating expenses.
Loss (gain) on strategic investments. We exclude gains and losses related to our strategic investments from our non-GAAP
measures primarily because management finds it useful to exclude these variable gains and losses on these investments in assessing
our financial results. Included in these amounts are non-cash unrealized gains and losses on the derivative components and realized
gains and losses on the sale or losses on the impairment of these investments. We believe excluding these items is useful to investors
because these excluded items do not correlate to the underlying performance of our business and these losses or gains were incurred
in connection with strategic investments which do not occur regularly.
2016 Annual Report