Cadence Design Systems, Inc.

As of February 1, 2017

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

(Unaudited)

Three Months Ending

Year Ending

April 1, 2017

December 30, 2017

Forecast

Forecast

Diluted net income per share on a GAAP basis

 $0.19 to $0.21 

 $0.89 to $0.99 

Amortization of acquired intangibles

0.05

0.20

Stock-based compensation expense

0.11

0.47

Acquisition and integration-related costs

0.01

0.01

Income tax effect of non-GAAP adjustments

(0.06)

(0.25)

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

 $0.30 to $0.32 

 $1.32 to $1.42 

Cadence Design Systems, Inc.

As of February 1, 2017

Impact of Non-GAAP Adjustments on Forward Looking Net Income

(Unaudited)

Three Months Ending

Year Ending

April 1, 2017

December 30, 2017

($ in millions)

Forecast

Forecast

Net income on a GAAP basis

 $53 to $59 

 $248 to $276 

Amortization of acquired intangibles

14

56

Stock-based compensation expense

31

132

Acquisition and integration-related costs

1

3

Income tax effect of non-GAAP adjustments

(16)

(71)

Net income on a non-GAAP basis�nbsp;

 $83 to $89 

 $368 to $396 

�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.