Normalized Net Income:

• Excludes GAAP net income, inventory-based compensation expense, and all non-GAAP items excluding depreciation of intangible assets.
• Assume that intangible asset depreciation and share-based compensation are tax-deductible at the company's effective tax rate of 25.3%.

 Calculate

Based on this definition, calculate (round to the nearest whole number) 2019 Normalized Net Income for the following company :

Non-GAAP Operating profit
(in millions of dollars)	2019A
GAAP Operating profit	56
Depreciation of purchased intangible assets	6
Stock-based compensation	51
restructuring expenses	184
Non-GAAP operating profit	297
Non-GAAP Net income
(in millions of dollars)	2019A
GAAP Net income	(91)
Depreciation of purchased intangible assets	6
Stock-based compensation	51
restructuring expenses	184
Losses on investments	14
Tax impact of non-GAAP items	(64)
Non-GAAP Net income	100

Answer rating: 100% (QA)

To calculate Normalized Net Income we need to exclude GAAP net income inventorybased compensation ex... View the full answer