⁽¹⁾ The fourth quarter and fiscal 2019 non-GAAP operating expense, non-GAAP operating margin and non-GAAP EPS guidance exclude the estimated items outlined in the table below, as well as any tax effects and discrete tax items (which are not known nor reflected). Adjusted free cash flow excludes $25 million of restructuring payments related to our workforce realignment and headquarters relocation.

In millions		Q4’19		FY’19
Effect of acquisition accounting on fair value of acquired deferred revenue		$0		$1
Acquisition-related charges		$0		$1
Restructuring and headquarters relocation charges (1)		$0		$45
Intangible asset amortization expense		$13		$51
Stock-based compensation expense		$27		$98
Total Estimated Pre-Tax GAAP adjustments		$40		$196

⁽¹⁾ Includes $16 million related to our workforce realignment recorded in the first quarter of 2019 and $29 million recorded in the first and second quarters of 2019 related to lease commitments and accelerated depreciation expense associated with exiting the Needham headquarters facility and relocating to our new worldwide headquarters in the Boston Seaport District, which occurred in January 2019.

Fiscal 2019 Business Outlook – ASC 605
For the fourth quarter and fiscal year ending September 30, 2019, the company expects:

In millions except per share amounts
Operating Measures (1)		Q4’19 Low		Q4’19 High		FY’19 Low		FY’19 High
Subscription ACV		$62		$67		$192		$197
License and Subscription Bookings		$135		$145		$458		$468
Subscription % of Bookings		93%		93%		84%		84%
(1) An explanation of the metrics included in this table is provided below.
Financial Measures(1)		Q4’19 Low		Q4’19 High		FY’19 Low		FY’19 High
Subscription Revenue		$183		$188		$665		$670
Perpetual Support Revenue		$98		$100		$410		$412
Total Recurring Software Revenue		$281		$288		$1,076		$1,083
Perpetual License Revenue		$9		$10		$73		$74
Total Software Revenue		$290		$298		$1,148		$1,156
Professional Services Revenue		$40		$40		$159		$159
Total Revenue		$330		$338		$1,307		$1,315
Operating Expense (GAAP)		$219		$220		$897		$899
Operating Expense (Non-GAAP)		$189		$191		$740		$742
Operating Margin (GAAP)		9%		11%		7%		8%
Operating Margin (Non-GAAP)		21%		22%		22%		23%
Tax Rate (GAAP)		50%		50%		50%		50%
Tax Rate (Non-GAAP)		17%		16%		18%		18%
Shares Outstanding		116		116		118		118
EPS (GAAP)		$0.09		$0.11		$0.23		$0.25
EPS (Non-GAAP)		$0.42		$0.47		$1.73		$1.78
Free Cash Flow						$235		$245
Adjusted Free Cash Flow						$260		$270

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