The calculated value is based off of the pitch diameter at the .625" standoff from the face or shoulder of the connection.
Gagemaker takes a sample of the thread that is somewhere between the .625" length dimension and somewhere down the taper of the thread, based on the thread rolls used for the measurement. And their magic number they use for standoff is only used with the PD instrument, to set the instrument as well as used for checking the correct PD of the tool joint thread. This calculated dimension takes in account the taper of the thread and how far it is from the .625" standoff dimension to create the new PD dimension. But you also have to take in consideration, GM has built in factors they don't tell you about that are part of the calculations they have created. They won't tell you these factors either! Now explain this factor thing to your auditor...