-3,424-3,424Gain on long-term debt repurchase
---(9,079)Tax effect of the above
(4,663)(5,623)(19,089)(18,934)Non-GAAP adjusted net income
$ 45,618$ 20,808$ 156,855$ 83,637Use of Non-GAAP Financial MeasuresOur "non-GAAP adjusted net income" excludes the following items from GAAP net income (loss):
1. Non-GAAP adjusted net income excludes certain non-cash interest expense resulting from the change in the method of accounting for our convertible notes which became effective in 2009. We believe that excluding the non-cash portion of our interest expense allows management and investors an alternative view of our financial results "as if" our net income reflected only the cash portion of our interest expense.
2. Purchase accounting and product acquisition related adjustments: Non-GAAP adjusted net income excludes certain items related to our acquisitions. The excluded items include charges related to amortization and step up in inventory related to purchase accounting arising from acquisitions and changes in the fair value of future contingent consideration related to our acquisition of Auralis Limited.
3. Stock option expense: Non-GAAP adjusted net income excludes the impact of our stock compensation expense. We believe that excluding the impact of expensing stock options better reflects the recurring economic characteristics of our business.
4. Other items: Non-GAAP net income excludes other unusual or non-recurring items that are evaluated on an individual basis. Our eva
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