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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 September 27, 2014 | ||||||||||||
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(In thousands) | ||||||||||||
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(Unaudited) | ||||||||||||
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Three Months Ended |
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September 27, 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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$ 374,110 |
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$ - |
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$ 374,110 |
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Services |
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26,386 |
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- |
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26,386 |
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Total revenue |
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400,496 |
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- |
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400,496 |
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Costs and expenses: |
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Cost of product and maintenance |
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36,954 |
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(10,703) |
(A) |
26,251 |
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Cost of services |
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17,125 |
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(924) |
(A) |
16,201 |
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Marketing and sales |
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100,387 |
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(6,799) |
(A) |
93,588 |
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Research and development |
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148,744 |
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(15,418) |
(A) |
133,326 |
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General and administrative |
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25,894 |
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(3,894) |
(A) |
22,000 |
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Amortization of acquired intangibles |
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6,316 |
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(6,316) |
(A) |
- |
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Restructuring and other charges |
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11,027 |
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(11,027) |
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- |
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Total costs and expenses |
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346,447 |
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(55,081) |
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291,366 |
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Income from operations |
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54,049 |
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55,081 |
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109,130 |
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Interest expense |
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(7,523) |
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4,370 |
(B) |
(3,153) |
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Other income (expense), net |
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(417) |
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1,944 |
(C) |
1,527 |
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Income before provision for income taxes |
46,109 |
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61,395 |
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107,504 |
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Provision for income taxes |
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8,574 |
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19,377 |
(D) |
27,951 |
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Net income |
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$ 37,535 |
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$ 42,018 |
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$ 79,553 |
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Notes: | ||||||||||||||
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(A) For the three months ended September 27, 2014, adjustments to GAAP are as follows for the line items specified: | ||||||||||||||
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Amortization of
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Stock-based
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Non-qualified
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Acquisition and
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Special charges
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Total
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Cost of product and maintenance |
$ 10,071 |
$ 633 |
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$ (1) |
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$ - |
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$ - |
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$ 10,703 | ||||
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Cost of services |
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- |
926 |
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(2) |
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- |
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- |
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924 | |||
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Marketing and sales |
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- |
5,930 |
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(1) |
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870 |
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- |
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6,799 | |||
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Research and development |
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- |
11,580 |
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(95) |
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3,933 |
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- |
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15,418 | |||
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General and administrative |
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- |
3,808 |
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(5) |
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(368) |
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459 |
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3,894 | |||
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Amortization of acquired intangibles |
6,316 |
- |
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- |
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- |
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- |
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6,316 | ||||
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Total |
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$ 16,387 |
$ 22,877 |
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$ (104) |
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$ 4,435 |
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$ 459 |
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$ 44,054 | |
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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 | ||||||||||||||
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(E) Comprised of costs related to a voluntary retirement program | ||||||||||||||
