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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 March 29, 2014 | |||||||||
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(In thousands) | |||||||||
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(Unaudited) | |||||||||
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Three Months Ended | ||||
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March 29, 2014 | ||||
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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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$ 357,350 |
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$ - |
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$ 357,350 | ||
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Services |
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21,200 |
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- |
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21,200 | ||
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Total revenue |
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378,550 |
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- |
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378,550 | |
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Costs and expenses: |
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Cost of product and maintenance |
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42,197 |
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(8,082) |
(A) |
34,115 | ||
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Cost of services |
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14,902 |
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(739) |
(A) |
14,163 | ||
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Marketing and sales |
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98,323 |
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(5,695) |
(A) |
92,628 | ||
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Research and development |
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146,466 |
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(15,751) |
(A) |
130,715 | ||
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General and administrative |
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28,744 |
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(5,354) |
(A) |
23,390 | ||
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Amortization of acquired intangibles |
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5,210 |
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(5,210) |
(A) |
- | ||
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Restructuring and other charges |
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396 |
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(396) |
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- | ||
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Total costs and expenses |
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336,238 |
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(41,227) |
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295,011 | |
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Income from operations |
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42,312 |
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41,227 |
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83,539 |
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Interest expense |
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(7,268) |
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4,209 |
(B) |
(3,059) | ||
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Other income (expense), net |
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3,382 |
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(3,609) |
(C) |
(227) | ||
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Income before provision for income taxes |
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38,426 |
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41,827 |
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80,253 |
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Provision for income taxes |
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5,356 |
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15,510 |
(D) |
20,866 | ||
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Net income |
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$ 33,070 |
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$ 26,317 |
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$ 59,387 |
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Notes: | ||||||||||||
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(A) For the three months ended March 29, 2014 adjustments to GAAP are as follows for the line items specified: | ||||||||||||
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Amortization of acquired intangibles |
Stock-based compensation expense |
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Non-qualified deferred compensation expenses |
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Integration and acquisition- related costs |
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Total adjustments | |
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Cost of product and maintenance |
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$ 7,576 |
$ 482 |
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$ 24 |
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$ - |
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$ 8,082 | |
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Cost of services |
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- |
703 |
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36 |
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- |
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739 | |
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Marketing and sales |
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- |
4,596 |
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111 |
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988 |
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5,695 | |
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Research and development |
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- |
9,667 |
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1,123 |
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4,961 |
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15,751 | |
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General and administrative |
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- |
3,416 |
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769 |
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1,169 |
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5,354 | |
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Amortization of acquired intangibles |
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5,210 |
- |
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- |
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- |
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5,210 | |
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Total |
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$ 12,786 |
$ 18,864 |
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$ 2,063 |
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$ 7,118 |
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$ 40,831 |
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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 |
