Cadence Reports Fourth Quarter and Fiscal Year 2017 Financial Results
Cadence's non-GAAP net income for the fourth quarter of 2017 excludes
the effect of the transition tax expense and income tax expense related
to the reduction in value of the deferred tax assets caused by the U.S.
corporate tax rate reduction. Cadence management believes it is useful
to exclude these tax expenses since it does not expect these tax
expenses to be recorded frequently.
The following tables reconcile the specific items excluded from GAAP net
income (loss) and GAAP net income (loss) per diluted share in the
calculation of non-GAAP net income and non-GAAP net income per diluted
share for the periods shown below:
|
|
|
Net Income (Loss) Reconciliation
|
|
Three Months Ended
|
|
|
December 30, 2017
|
|
December 31, 2016
|
|
|
(unaudited)
|
(in thousands)
|
|
|
|
|
Net income (loss) on a GAAP basis
|
|
$
|
(14,442
|
)
|
|
$
|
38,477
|
|
Amortization of acquired intangibles
|
|
13,741
|
|
|
14,474
|
|
Stock-based compensation expense
|
|
36,015
|
|
|
29,231
|
|
Non-qualified deferred compensation expenses
|
|
1,295
|
|
|
544
|
|
Restructuring and other charges
|
|
12,178
|
|
|
26,342
|
|
Acquisition and integration-related costs
|
|
5,712
|
|
|
1,433
|
|
Other income or expense related to investments and non-qualified
deferred compensation plan assets*
|
|
(1,368
|
)
|
|
(655
|
)
|
Income tax related to transition tax
|
|
67,188
|
|
|
—
|
|
Income tax related to tax rate change
|
|
25,292
|
|
|
—
|
|
Income tax effect of non-GAAP adjustments
|
|
(34,328
|
)
|
|
(14,672
|
)
|
Net income on a non-GAAP basis
|
|
$
|
111,283
|
|
|
$
|
95,174
|
|
|
|
|
|
|
|
|
|
|
*
|
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.
|
|
|
|
Net Income Reconciliation
|
|
Years Ended
|
|
|
December 30, 2017
|
|
December 31, 2016
|
|
|
(unaudited)
|
(in thousands)
|
|
|
|
|
Net income on a GAAP basis
|
|
$
|
204,101
|
|
|
$
|
203,086
|
|
Amortization of acquired intangibles
|
|
56,497
|
|
|
60,482
|
|
Stock-based compensation expense
|
|
130,023
|
|
|
109,217
|
|
Non-qualified deferred compensation expenses
|
|
6,145
|
|
|
1,741
|
|
Restructuring and other charges
|
|
9,406
|
|
|
40,955
|
|
Acquisition and integration-related costs
|
|
8,468
|
|
|
11,268
|
|
Other income or expense related to investments and non-qualified
deferred compensation plan assets*
|
|
(15,693
|
)
|
|
(4,672
|
)
|
Income tax related to transition tax
|
|
67,188
|
|
|
—
|
|
Income tax related to tax rate change
|
|
25,292
|
|
|
—
|
|
Income tax effect of non-GAAP adjustments
|
|
(98,810
|
)
|
|
(70,847
|
)
|
Net income on a non-GAAP basis
|
|
$
|
392,617
|
|
|
$
|
351,230
|
|
|
|
|
|
|
|
|
|
|
*
|
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.
|
|
|
|
Diluted Net Income (Loss) per Share Reconciliation
|
|
Three Months Ended
|
|
|
December 30, 2017
|
|
December 31, 2016
|
|
|
(unaudited)
|
(in thousands, except per share data)
|
|
|
|
|
Diluted net income (loss) per share on a GAAP basis
|
|
$
|
(0.05
|
)
|
|
$
|
0.14
|
|
Amortization of acquired intangibles
|
|
0.05
|
|
|
0.05
|
|
Stock-based compensation expense
|
|
0.13
|
|
|
0.10
|
|
Non-qualified deferred compensation expenses
|
|
—
|
|
|
—
|
|
Restructuring and other charges
|
|
0.04
|
|
|
0.09
|
|
Acquisition and integration-related costs
|
|
0.02
|
|
|
0.01
|
|
Other income or expense related to investments and non-qualified
deferred compensation plan assets*
|
|
(0.01
|
)
|
|
—
|
|
Income tax related to transition tax
|
|
0.24
|
|
|
—
|
|
Income tax related to tax rate change
|
|
0.09
|
|
|
—
|
|
Income tax effect of non-GAAP adjustments
|
|
(0.12
|
)
|
|
(0.05
|
)
|
Diluted net income per share on a non-GAAP basis
|
|
$
|
0.39
|
|
|
$
|
0.34
|
|
Shares used in calculation of diluted net income (loss) per share
— GAAP**
|
|
273,157
|
|
|
278,917
|
|
Shares used in calculation of diluted net income per share —
non-GAAP**
|
|
282,206
|
|
|
278,917
|
|
|
|
|
|
|
|
|
*
|
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.
|
|
|
**
|
Shares used in the calculation of GAAP net income (loss) per share
are expected to be the same as shares used in the calculation of
non-GAAP net income per share, except when the company reports a
GAAP net loss and non-GAAP net income, or GAAP net income and a
non-GAAP net loss.
|
|
|
|
Diluted Net Income per Share Reconciliation
|
|
Years Ended
|
|
|
December 30, 2017
|
|
December 31, 2016
|
|
|
(unaudited)
|
(in thousands, except per share data)
|
|
|
|
|
Diluted net income per share on a GAAP basis
|
|
$
|
0.73
|
|
|
$
|
0.70
|
|
Amortization of acquired intangibles
|
|
0.20
|
|
|
0.21
|
|
Stock-based compensation expense
|
|
0.46
|
|
|
0.37
|
|
Non-qualified deferred compensation expenses
|
|
0.02
|
|
|
0.01
|
|
Restructuring and other charges
|
|
0.03
|
|
|
0.14
|
|
Acquisition and integration-related costs
|
|
0.03
|
|
|
0.04
|
|
Other income or expense related to investments and non-qualified
deferred compensation plan assets*
|
|
(0.05
|
)
|
|
(0.02
|
)
|
Income tax related to transition tax
|
|
0.24
|
|
|
—
|
|
Income tax related to tax rate change
|
|
0.09
|
|
|
—
|
|
Income tax effect of non-GAAP adjustments
|
|
(0.35
|
)
|
|
(0.24
|
)
|
Diluted net income per share on a non-GAAP basis
|
|
$
|
1.40
|
|
|
$
|
1.21
|
|
Shares used in calculation of diluted net income per share — GAAP**
|
|
280,221
|
|
|
291,256
|
|
Shares used in calculation of diluted net income per share —
non-GAAP**
|
|
280,221
|
|
|
291,256
|
|
|
|
|
|
|
|
|
*
|
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.
|
|
|
**
|
Shares used in the calculation of GAAP net income per share are
expected to be the same as shares used in the calculation of
non-GAAP net income per share, except when the company reports a
GAAP net loss and non-GAAP net income, or GAAP net income and a
non-GAAP net loss.
|
|
|
|