Cadence Design Systems, Inc.

As of February 4, 2015

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

(Unaudited)

Three Months Ending

Year Ending

April 4, 2015

January 2, 2016

Forecast

Forecast

Diluted net income per share on a GAAP basis

 $0.08 to $0.10 

 $0.49 to $0.61 

Amortization of acquired intangibles

0.05

0.21

Stock-based compensation expense

0.07

0.31

Acquisition and integration-related costs

0.01

0.03

Amortization of debt discount

0.02

0.02

Income tax effect of non-GAAP adjustments

(0.03)

(0.12)

Diluted net income per share on a non-GAAP basis

 $0.20 to $0.22 

 $0.94 to $1.06 

Cadence Design Systems, Inc.

As of February 4, 2015

Impact of Non-GAAP Adjustments on Forward Looking Net Income 

(Unaudited)

Three Months Ending

Year Ending

April 4, 2015

January 2, 2016

($ in millions)

Forecast

Forecast

Net income on a GAAP basis

 $26 to $33 

 $153 to $190 

Amortization of acquired intangibles

16

64

Stock-based compensation expense

22

95

Acquisition and integration-related costs

3

8

Amortization of debt discount

5

7

Income tax effect of non-GAAP adjustments

(10)

(36)

Net income on a non-GAAP basis

 $62 to $69 

 $291 to $328