Cadence Design Systems, Inc.

As of July 25, 2016

Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share 

(Unaudited)

Three Months Ending

Year Ending

October 1, 2016

December 31, 2016

Forecast

Forecast

Diluted net income per share on a GAAP basis

 $0.17 to $0.19 

 $0.70 to $0.76 

Amortization of acquired intangibles

0.05

0.21

Stock-based compensation expense

0.10

0.38

Restructuring and other charges

-

0.05

Acquisition and integration-related costs

-

0.04

Other income or expense related to investments and non-qualified deferred compensation plan assets*

-

(0.01)

Income tax effect of non-GAAP adjustments

(0.05)

(0.20)

Diluted net income per share on a non-GAAP basis�nbsp;

 $1.17 to $1.23 

Cadence Design Systems, Inc.

As of July 25, 2016

Impact of Non-GAAP Adjustments on Forward Looking Net Income

(Unaudited)

Three Months Ending

Year Ending

October 1, 2016

December 31, 2016

($ in millions)

Forecast

Forecast

Net income on a GAAP basis

 $48 to $54 

 $203 to $221 

Amortization of acquired intangibles

14

61

Stock-based compensation expense

28

109

Restructuring and other charges 

-

15

Acquisition and integration-related costs

1

11

Other income or expense related to investments and non-qualified deferred compensation plan assets*

-

(3)

Income tax effect of non-GAAP adjustments

(14)

(57)

Net income on a non-GAAP basis�nbsp;

 $77 to $83 

 $339 to $357 

�nbsp;The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. 

 * Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.