Question

A company provided the following GAAP and non-GAAP information:

Income Statement (GAAP)
($ in millions)	2019A
Revenue	732
Cost of goods sold (excl. SBC)	149
Gross profit	583
Research & development	121
Other operating expenses	406
Operating profit	56
Interest expense	145
Other expenses	17
Pretax profit	(106)
Taxes	(15)
Net income	(91)

Non-GAAP Operating profit
($ in millions)	2019A
GAAP Operating profit	56
Amortization of purchased intangible assets	6
Stock based compensation	51
Restructuring expenses	184
non-GAAP operating profit	297
non-GAAP Net income
($ in millions)	2019A
GAAP Net income	(91)
Amortization of purchased intangible assets	6
Stock based compensation	51
Restructuring expenses	184
Losses on investments	14
Tax impact of non-GAAP items	(65)
non-GAAP Net income	99
Stock based compensation
($ in millions)	2019A
Cost of goods sold	16
Research & development	12
Other operating expenses	23
Stock based compensation	51
Amortization of purchased intangible assets
($ in millions)	2019A
Cost of goods sold	5
Other operating expenses	1
Amortization of purchased intangible assets	6
Cash flow statement
($ in millions)	2019A
GAAP net income	346
Depreciation and amortization	108
Stock based compensation	51
Changes in working capital	8
Other	9
Cash from operations	522

The company above defines adjusted EBITDA is defined as operating profit before depreciation and amortization and excluding non-GAAP items. Based on the information provided, what is 2019 adjusted EBITDA?

• $414 million
• $405 million
• $399 million
• $170 million

Answer 1

answer is option C $399 million

adjusted EBITDA = operating profit + Depreciation and amortization+Stock based compensation+Restructuring expenses = 56+108+51+184 = $399 million