Cadence Design Systems, Inc. |
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Supplemental Reconciliation of Certain GAAP to Non-GAAP Measures |
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For the Year Ended January 3, 2015 |
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(In thousands) |
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(Unaudited) |
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Year Ended |
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January 3, 2015 |
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GAAP |
Adjustments |
Non-GAAP |
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Revenue: |
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Product and maintenance |
$ 1,479,151 |
$ - |
$ 1,479,151 |
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Services |
101,781 |
- |
101,781 |
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Total revenue |
1,580,932 |
- |
1,580,932 |
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Costs and expenses: |
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Cost of product and maintenance |
156,333 |
(39,586) |
(J) |
116,747 |
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Cost of services |
67,373 |
(3,997) |
(J) |
63,376 |
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Marketing and sales |
399,688 |
(25,410) |
(J) |
374,278 |
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Research and development |
603,006 |
(68,141) |
(J) |
534,865 |
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General and administrative |
113,619 |
(22,416) |
(J) |
91,203 |
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Amortization of acquired intangibles |
24,017 |
(24,017) |
(J) |
- |
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Restructuring and other charges |
10,252 |
(10,252) |
- |
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Total costs and expenses |
1,374,288 |
(193,819) |
1,180,469 |
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Income from operations |
206,644 |
193,819 |
400,463 |
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Interest expense |
(34,121) |
17,602 |
(K) |
(16,519) |
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Other income, net |
8,479 |
(4,629) |
(L) |
3,850 |
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Income before provision for income taxes |
181,002 |
206,792 |
387,794 |
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Provision for income taxes |
22,104 |
78,723 |
(M) |
100,827 |
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Net income |
$ 158,898 |
$ 128,069 |
$ 286,967 |
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Notes: |
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(J) For the year ended January 3, 2015 adjustments to GAAP are as follows for the line items specified: |
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Amortization of
|
Stock-based
|
Non-qualified
|
Acquisition and
|
Special
|
Total
|
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Cost of product and maintenance |
$ 36,907 |
$ 2,244 |
$ 34 |
$ - |
$ 401 |
$ 39,586 |
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Cost of services |
- |
3,280 |
50 |
- |
667 |
3,997 |
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Marketing and sales |
- |
20,580 |
149 |
2,768 |
1,913 |
25,410 |
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Research and development |
- |
43,173 |
1,886 |
17,228 |
5,854 |
68,141 |
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General and administrative |
- |
14,515 |
1,296 |
4,624 |
1,981 |
22,416 |
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Amortization of acquired intangibles |
24,017 |
- |
- |
- |
- |
24,017 |
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Total |
$ 60,924 |
$ 83,792 |
$ 3,415 |
$ 24,620 |
$ 10,816 |
$ 183,567 |
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(K) Amortization of debt discount related to convertible notes |
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(L) Other income or expense related to investments and non-qualified deferred compensation plan assets |
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(M) Income tax effect of non-GAAP adjustments |
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(N) Comprised of costs related to a voluntary retirement program |