Cadence Design Systems, Inc.

As of April 24, 2017

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

(Unaudited)

Three Months Ending

Year Ending

July 1, 2017

December 30, 2017

Forecast

Forecast

Diluted net income per share on a GAAP basis

 $0.20 to $0.22 

 $0.93 to $1.03 

Amortization of acquired intangibles

0.05

0.20

Stock-based compensation expense

0.11

0.46

Non-qualified deferred compensation expenses

-

-

Restructuring and other charges (credits)

-

(0.01)

Acquisition and integration-related costs

-

0.01

Other income or expense related to investments and non-qualified 

    deferred compensation plan assets*

-

-

Income tax effect of non-GAAP adjustments

(0.05)

(0.27)

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

 $0.31 to $0.33 

 $1.32 to $1.42 

Cadence Design Systems, Inc.

As of April 24, 2017

Impact of Non-GAAP Adjustments on Forward Looking Net Income

(Unaudited)

Three Months Ending

Year Ending

July 1, 2017

December 30, 2017

($ in millions)

Forecast

Forecast

Net income on a GAAP basis

 $56 to $62 

 $259 to $287 

Amortization of acquired intangibles

14

56

Stock-based compensation expense

31

128

Non-qualified deferred compensation expenses

-

1

Restructuring and other charges (credits)

-

(2)

Acquisition and integration-related costs

1

3

Other income or expense related to investments and non-qualified 

    deferred compensation plan assets*

-

(1)

Income tax effect of non-GAAP adjustments

(15)

(76)

Net income on a non-GAAP basis�nbsp;

 $87 to $93 

 $368 to $396 

* 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.