| (in millions, except percentages) | Q3 YTD 2020 | Q3 YTD 2019 | % Change | % Change in Constant Currency | |||||
| ACV | $ | 950.8 | $ | 920.5 | 3% | 3% | |||
| Operating cash flows | $ | 373.5 | $ | 360.5 | 4% | ||||
ACV is a metric the Company uses to better understand the business. There is no GAAP measure comparable to ACV. ACV is composed of the following:
- the annualized value of maintenance and lease contracts with start dates or anniversary dates during the period, plus
- the value of perpetual license contracts with start dates during the period, plus
- the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
- the value of work performed during the period on fixed-deliverable services contracts.
Management's 2020 Financial Outlook
The Company's fourth quarter and fiscal year 2020 revenue and diluted earnings per share guidance is provided below. The Company is also providing its fiscal year 2020 guidance for ACV and operating cash flows. The revenue and diluted earnings per share guidance is provided on both a GAAP and non-GAAP basis. Non-GAAP financial measures exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets and acquisition-related transaction expenses.
The financial guidance below reflects the Company's current estimates of the adverse impacts of the global pandemic. This guidance is based on certain assumptions made by the Company and the Company's evaluation of factual information it has determined to be relevant. Additional details related to the Company's financial guidance, including assumptions and economic impacts of COVID-19, are detailed in its prepared remarks document.
The financial guidance below is not adjusted for the impacts of the Company's recently announced agreement to acquire AGI. The acquisition closing date is unknown as it is subject to the receipt of regulatory clearance and the satisfaction of customary closing conditions. The transaction is not expected to have a meaningful impact on the Company's 2020 results.
Fourth Quarter 2020 Guidance
The Company currently expects the following for the quarter ending December 31, 2020:
| (in millions, except per share data) | GAAP | Non-GAAP | |
| Revenue | $541.1 - $581.1 | $542.3 - $582.3 | |
| Diluted earnings per share | $1.93 - $2.29 | $2.36 - $2.67 |
Fiscal Year 2020 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2020:
| (in millions, except per share data) | GAAP | Non-GAAP | |
| Revenue | $1,598.7 - $1,638.7 | $1,610.0 - $1,650.0 | |
| Diluted earnings per share | $4.43 - $4.79 | $6.09 - $6.40 |
The difference between the GAAP and non-GAAP revenue guidance presented above is a result of the expected impact of the application of the fair value provisions applicable to the accounting for business combinations in the amount of $1.2 million for the fourth quarter and $11.3 million for fiscal year 2020.
| (in millions) | Other Financial Metrics |
| ACV | $1,555.0 - $1,590.0 |
| Operating cash flows | $435.0 - $475.0 |
Conference Call Information
