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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 December 28, 2013 | ||||||||||||||
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(In thousands) | ||||||||||||||
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(Unaudited) | ||||||||||||||
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Three Months Ended |
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December 28, 2013 |
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GAAP |
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Adjustments |
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Non-GAAP |
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Revenue: |
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Product and maintenance |
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$ 350,079 |
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$ - |
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$ 350,079 |
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Services |
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26,643 |
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- |
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26,643 |
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Total revenue |
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376,722 |
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- |
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376,722 |
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Costs and expenses: |
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Cost of product and maintenance |
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41,757 |
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(7,743) |
(A) |
34,014 |
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Cost of services |
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17,274 |
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(698) |
(A) |
16,576 |
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Marketing and sales |
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94,384 |
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(5,201) |
(A) |
89,183 |
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Research and development |
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135,465 |
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(15,666) |
(A) |
119,799 |
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General and administrative |
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29,481 |
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(7,130) |
(A) |
22,351 |
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Amortization of acquired intangibles |
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5,157 |
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(5,157) |
(A) |
- |
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Restructuring and other charges |
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15,405 |
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(15,405) |
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- |
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Total costs and expenses |
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338,923 |
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(57,000) |
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281,923 |
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Income from operations |
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37,799 |
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57,000 |
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94,799 |
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Interest expense |
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(9,208) |
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5,515 |
(B) |
(3,693) |
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Other income (expense), net |
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842 |
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(1,553) |
(C) |
(711) |
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Income before provision (benefit) for income taxes |
29,433 |
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60,962 |
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90,395 |
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Provision (benefit) for income taxes |
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(8,272) |
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31,775 |
(D) |
23,503 |
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Net income |
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$ 37,705 |
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$ 29,187 |
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$ 66,892 |
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Notes: |
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(A) For the three months ended December 28, 2013 adjustments to GAAP are as follows for the line items specified: | ||||||||||||||
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Amortization of acquired intangibles |
Stock-based compensation expense |
Non-qualified deferred compensation expenses |
Integration and acquisition- related costs |
Executive severance costs |
Total adjustments |
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Cost of product and maintenance |
$ 7,265 |
$ 471 |
$ 7 |
$ - |
$ - |
$ 7,743 |
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Cost of services |
- |
689 |
9 |
- |
- |
698 |
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Marketing and sales |
- |
4,703 |
68 |
430 |
- |
5,201 |
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Research and development |
- |
9,605 |
683 |
5,378 |
- |
15,666 |
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General and administrative |
- |
3,330 |
489 |
3,095 |
216 |
7,130 |
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Amortization of acquired intangibles |
5,157 |
- |
- |
- |
- |
5,157 |
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Total |
$ 12,422 |
$ 18,798 |
$ 1,256 |
$ 8,903 |
$ 216 |
$ 41,595 |
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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 | ||||||||||||||
