Cadence Design Systems, Inc. |
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Supplemental Reconciliation of Certain GAAP to Non-GAAP Measures |
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For the Three Months Ended January 3, 2015 |
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(In thousands) |
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(Unaudited) |
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Three Months 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 |
$ 393,223 |
$ - |
$ 393,223 |
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Services |
29,875 |
- |
29,875 |
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Total revenue |
423,098 |
- |
423,098 |
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Costs and expenses: |
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Cost of product and maintenance |
39,475 |
(11,297) |
(A) |
28,178 |
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Cost of services |
18,640 |
(950) |
(A) |
17,690 |
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Marketing and sales |
102,367 |
(5,924) |
(A) |
96,443 |
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Research and development |
155,124 |
(15,795) |
(A) |
139,329 |
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General and administrative |
26,939 |
(4,344) |
(A) |
22,595 |
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Amortization of acquired intangibles |
6,912 |
(6,912) |
(A) |
- |
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Restructuring and other charges (credits) |
(1,145) |
1,145 |
- |
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Total costs and expenses |
348,312 |
(44,077) |
304,235 |
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Income from operations |
74,786 |
44,077 |
118,863 |
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Interest expense |
(11,961) |
4,782 |
(B) |
(7,179) |
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Other income, net |
3,879 |
(1,484) |
(C) |
2,395 |
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Income before provision for income taxes |
66,704 |
47,375 |
114,079 |
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Provision for income taxes |
1,674 |
27,987 |
(D) |
29,661 |
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Net income |
$ 65,030 |
$ 19,388 |
$ 84,418 |
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Notes: |
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(A) For the three months 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
|
Total
|
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Cost of product and maintenance |
$ 10,647 |
$ 644 |
$ 6 |
$ - |
$ 11,297 |
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Cost of services |
- |
942 |
8 |
- |
950 |
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Marketing and sales |
- |
5,494 |
19 |
411 |
5,924 |
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Research and development |
- |
12,225 |
216 |
3,354 |
15,795 |
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General and administrative |
- |
3,669 |
160 |
515 |
4,344 |
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Amortization of acquired intangibles |
6,912 |
- |
- |
- |
6,912 |
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Total |
$ 17,559 |
$ 22,974 |
$ 409 |
$ 4,280 |
$ 45,222 |
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(B) Amortization of debt discount related to convertible notes |
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(C) Other income or expense related to investments and non-qualified deferred compensation plan assets |
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(D) Income tax effect of non-GAAP adjustments |