Cadence Design Systems, Inc.

As of October 26, 2017

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

(Unaudited)

Three Months Ending

Year Ending

December 30, 2017

December 30, 2017

Forecast

Forecast

Diluted net income per share on a GAAP basis

 $0.26 to $0.28 

 $1.04 to $1.06 

Amortization of acquired intangibles

0.05

0.20

Stock-based compensation expense

0.13

0.46

Non-qualified deferred compensation expenses

-

0.02

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*

-

(0.05)

Income tax effect of non-GAAP adjustments

(0.06)

(0.28)

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

 $0.38 to $0.40 

 $1.39 to $1.41 

Cadence Design Systems, Inc.

As of October 26, 2017

Impact of Non-GAAP Adjustments on Forward Looking Net Income

(Unaudited)

Three Months Ending

Year Ending

December 30, 2017

December 30, 2017

($ in millions)

Forecast

Forecast

Net income on a GAAP basis

 $74 to $80 

 $292 to $298 

Amortization of acquired intangibles

14

56

Stock-based compensation expense

35

129

Non-qualified deferred compensation expenses

-

5

Restructuring and other charges (credits)

-

(3)

Acquisition and integration-related costs

1

4

Other income or expense related to investments and non-qualified 

    deferred compensation plan assets*

-

(14)

Income tax effect of non-GAAP adjustments

(16)

(80)

Net income on a non-GAAP basis�nbsp;

 $108 to $114 

 $389 to $395 

�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. 

 * 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.