Delaware | 000-15867 | 77-0148231 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
2655 Seely Avenue, Building 5 San Jose, California | 95134 | |||
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits |
Exhibit No. | Description | |
99.01 | Press Release issued by Cadence Design Systems, Inc. on January 29, 2014. |
CADENCE DESIGN SYSTEMS, INC. | ||
By: | /s/ Geoffrey G. Ribar | |
Geoffrey G. Ribar | ||
Senior Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.01 | Press Release issued by Cadence Design Systems, Inc. on January 29, 2014. |
Net Income Reconciliation | Three Months Ended | |||||||
December 28, 2013 | December 29, 2012 | |||||||
(unaudited) | ||||||||
(in thousands) | ||||||||
Net income on a GAAP basis | $ | 37,705 | $ | 313,874 | ||||
Amortization of acquired intangibles | 12,422 | 7,649 | ||||||
Stock-based compensation expense | 18,798 | 13,276 | ||||||
Non-qualified deferred compensation expenses | 1,256 | 1,216 | ||||||
Restructuring and other charges | 15,405 | 64 | ||||||
Integration and acquisition-related costs | 8,903 | 2,187 | ||||||
Executive severance costs | 216 | — | ||||||
Amortization of debt discount | 5,515 | 5,354 | ||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets* | (1,553 | ) | (4,081 | ) | ||||
Income tax benefit of valuation allowance release | — | (219,601 | ) | |||||
Income tax benefit of State of California settlement | — | (36,564 | ) | |||||
Income tax effect of non-GAAP adjustments | (31,775 | ) | (25,363 | ) | ||||
Net income on a non-GAAP basis | $ | 66,892 | $ | 58,011 |
* | 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. |
Net Income Reconciliation | Years Ended | |||||||
December 28, 2013 | December 29, 2012 | |||||||
(unaudited) | ||||||||
(in thousands) | ||||||||
Net income on a GAAP basis | $ | 164,243 | $ | 439,948 | ||||
Amortization and sale of acquired intangibles | 44,134 | 28,618 | ||||||
Stock-based compensation expense | 66,285 | 47,561 | ||||||
Non-qualified deferred compensation expenses | 3,293 | 4,453 | ||||||
Restructuring and other charges | 17,999 | 113 | ||||||
Shareholder litigation costs | — | 46 | ||||||
Integration and acquisition-related costs | 31,972 | 9,278 | ||||||
Executive severance costs | 961 | — | ||||||
Amortization of debt discount | 22,315 | 20,846 | ||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets* | (5,280 | ) | (6,296 | ) | ||||
Income tax benefit of valuation allowance release | — | (219,601 | ) | |||||
Income tax benefit of State of California settlement | — | (36,564 | ) | |||||
Income tax benefit due to a release of an uncertain tax position | (33,719 | ) | — | |||||
Acquisition-related income tax benefit | — | (14,806 | ) | |||||
Income tax effect of non-GAAP adjustments | (60,104 | ) | (56,857 | ) | ||||
Net income on a non-GAAP basis | $ | 252,099 | $ | 216,739 |
* | 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. |
Diluted Net Income per Share Reconciliation | Three Months Ended | |||||||
December 28, 2013 | December 29, 2012 | |||||||
(unaudited) | ||||||||
(in thousands, except per share data) | ||||||||
Diluted net income per share on a GAAP basis | $ | 0.13 | $ | 1.10 | ||||
Amortization of acquired intangibles | 0.04 | 0.03 | ||||||
Stock-based compensation expense | 0.06 | 0.05 | ||||||
Non-qualified deferred compensation expenses | 0.01 | — | ||||||
Restructuring and other charges | 0.05 | — | ||||||
Integration and acquisition-related costs | 0.03 | 0.01 | ||||||
Executive severance costs | — | — | ||||||
Amortization of debt discount | 0.02 | 0.02 | ||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets* | — | (0.02 | ) | |||||
Income tax benefit of valuation allowance release | — | (0.77 | ) | |||||
Income tax benefit of State of California settlement | — | (0.13 | ) | |||||
Income tax effect of non-GAAP adjustments | (0.11 | ) | (0.09 | ) | ||||
Diluted net income per share on a non-GAAP basis | $ | 0.23 | $ | 0.20 | ||||
Shares used in calculation of diluted net income per share — GAAP** | 294,663 | 286,289 | ||||||
Shares used in calculation of diluted net income per share — non-GAAP** | 294,663 | 286,289 |
* | 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. |
** | Shares used in the calculation of GAAP net income per share are expected to be the same as shares used in the calculation of non-GAAP net income per share, except when the company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net loss. |
Diluted Net Income per Share Reconciliation | Years Ended | |||||||
December 28, 2013 | December 29, 2012 | |||||||
(unaudited) | ||||||||
(in thousands, except per share data) | ||||||||
Diluted net income per share on a GAAP basis | $ | 0.56 | $ | 1.57 | ||||
Amortization and sale of acquired intangibles | 0.15 | 0.10 | ||||||
Stock-based compensation expense | 0.23 | 0.17 | ||||||
Non-qualified deferred compensation expenses | 0.01 | 0.02 | ||||||
Restructuring and other charges | 0.06 | — | ||||||
Shareholder litigation costs | — | — | ||||||
Integration and acquisition-related costs | 0.11 | 0.03 | ||||||
Executive severance costs | — | — | ||||||
Amortization of debt discount | 0.08 | 0.07 | ||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets* | (0.02 | ) | (0.02 | ) | ||||
Income tax benefit of valuation allowance release | — | (0.78 | ) | |||||
Income tax benefit of State of California settlement | — | (0.13 | ) | |||||
Income tax benefit due to a release of an uncertain tax position | (0.11 | ) | — | |||||
Acquisition-related income tax benefit | — | (0.05 | ) | |||||
Income tax effect of non-GAAP adjustments | (0.21 | ) | (0.21 | ) | ||||
Diluted net income per share on a non-GAAP basis | $ | 0.86 | $ | 0.77 | ||||
Shares used in calculation of diluted net income per share — GAAP** | 294,564 | 280,667 | ||||||
Shares used in calculation of diluted net income per share — non-GAAP** | 294,564 | 280,667 |
* | 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. |
** | Shares used in the calculation of GAAP net income per share are expected to be the same as shares used in the calculation of non-GAAP net income per share, except when the company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net loss. |
December 28, 2013 | December 29, 2012 | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 536,260 | $ | 726,357 | ||||
Short-term investments | 96,788 | 100,704 | ||||||
Receivables, net of allowances of $0 and $85, respectively | 107,624 | 97,821 | ||||||
Inventories | 50,220 | 36,163 | ||||||
2015 notes hedges | 306,817 | 303,154 | ||||||
Prepaid expenses and other | 123,382 | 127,036 | ||||||
Total current assets | 1,221,091 | 1,391,235 | ||||||
Property, plant and equipment, net of accumulated depreciation of $568,494 and $635,450, respectively | 238,715 | 244,439 | ||||||
Goodwill | 456,905 | 233,266 | ||||||
Acquired intangibles, net of accumulated amortization of $139,820 and $104,351, respectively | 311,693 | 184,938 | ||||||
Long-term receivables | 3,672 | 7,559 | ||||||
Other assets | 196,525 | 225,566 | ||||||
Total assets | $ | 2,428,601 | $ | 2,287,003 | ||||
Current liabilities: | ||||||||
Convertible notes | $ | 324,826 | $ | 447,011 | ||||
2015 notes embedded conversion derivative | 306,817 | 303,154 | ||||||
Accounts payable and accrued liabilities | 216,594 | 171,318 | ||||||
Current portion of deferred revenue | 299,973 | 295,787 | ||||||
Total current liabilities | 1,148,210 | 1,217,270 | ||||||
Long-term liabilities: | ||||||||
Long-term portion of deferred revenue | 52,850 | 50,529 | ||||||
Other long-term liabilities | 71,436 | 104,033 | ||||||
Total long-term liabilities | 124,286 | 154,562 | ||||||
Stockholders’ equity | 1,156,105 | 915,171 | ||||||
Total liabilities and stockholders’ equity | $ | 2,428,601 | $ | 2,287,003 |
Three Months Ended | Years Ended | |||||||||||||||
December 28, 2013 | December 29, 2012 | December 28, 2013 | December 29, 2012 | |||||||||||||
Revenue: | ||||||||||||||||
Product and maintenance | $ | 350,079 | $ | 318,513 | $ | 1,357,934 | $ | 1,212,429 | ||||||||
Services | 26,643 | 27,072 | 102,182 | 113,995 | ||||||||||||
Total revenue | 376,722 | 345,585 | 1,460,116 | 1,326,424 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product and maintenance | 41,757 | 24,437 | 132,245 | 118,516 | ||||||||||||
Cost of services | 17,274 | 19,353 | 67,956 | 72,607 | ||||||||||||
Marketing and sales | 94,384 | 95,604 | 378,157 | 342,278 | ||||||||||||
Research and development | 135,465 | 118,382 | 534,022 | 454,085 | ||||||||||||
General and administrative | 29,481 | 27,712 | 121,314 | 112,076 | ||||||||||||
Amortization of acquired intangibles | 5,157 | 3,772 | 19,416 | 15,077 | ||||||||||||
Restructuring and other charges | 15,405 | 64 | 17,999 | 113 | ||||||||||||
Total costs and expenses | 338,923 | 289,324 | 1,271,109 | 1,114,752 | ||||||||||||
Income from operations | 37,799 | 56,261 | 189,007 | 211,672 | ||||||||||||
Interest expense | (9,208 | ) | (8,902 | ) | (37,581 | ) | (34,742 | ) | ||||||||
Other income, net | 842 | 5,369 | 7,570 | 11,341 | ||||||||||||
Income before benefit for income taxes | 29,433 | 52,728 | 158,996 | 188,271 | ||||||||||||
Benefit for income taxes | (8,272 | ) | (261,146 | ) | (5,247 | ) | (251,677 | ) | ||||||||
Net income | $ | 37,705 | $ | 313,874 | $ | 164,243 | $ | 439,948 | ||||||||
Net income per share - basic | $ | 0.13 | $ | 1.15 | $ | 0.59 | $ | 1.63 | ||||||||
Net income per share - diluted | $ | 0.13 | $ | 1.10 | $ | 0.56 | $ | 1.57 | ||||||||
Weighted average common shares outstanding - basic | 280,083 | 272,884 | 277,796 | 270,479 | ||||||||||||
Weighted average common shares outstanding - diluted | 294,663 | 286,289 | 294,564 | 280,667 |
Years Ended | |||||||
December 28, 2013 | December 29, 2012 | ||||||
Cash and cash equivalents at beginning of period | $ | 726,357 | $ | 601,602 | |||
Cash flows from operating activities: | |||||||
Net income | 164,243 | 439,948 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 98,308 | 89,217 | |||||
Amortization of debt discount and fees | 25,384 | 23,513 | |||||
Stock-based compensation | 66,285 | 47,561 | |||||
Gain on investments, net | (5,311 | ) | (6,320 | ) | |||
Deferred income taxes | (2,366 | ) | (240,424 | ) | |||
Provisions (recoveries) for losses (gains) on receivables, net | (85 | ) | 215 | ||||
Other non-cash items | 4,017 | 3,315 | |||||
Changes in operating assets and liabilities, net of effect of acquired businesses: | |||||||
Receivables | (3,609 | ) | 45,630 | ||||
Inventories | (14,594 | ) | 5,245 | ||||
Prepaid expenses and other | 30,368 | (12,426 | ) | ||||
Other assets | (2,530 | ) | (4,902 | ) | |||
Accounts payable and accrued liabilities | 41,727 | 17,523 | |||||
Deferred revenue | 2,506 | (69,662 | ) | ||||
Other long-term liabilities | (36,738 | ) | (22,439 | ) | |||
Net cash provided by operating activities | 367,605 | 315,994 | |||||
Cash flows from investing activities: | |||||||
Purchases of available-for-sale securities | (111,702 | ) | (121,154 | ) | |||
Proceeds from the sale of available-for-sale securities | 77,621 | 18,338 | |||||
Proceeds from the maturity of available-for-sale securities | 38,706 | 4,150 | |||||
Proceeds from the sale of long-term investments | 6,234 | 74 | |||||
Purchases of property, plant and equipment | (44,929 | ) | (35,966 | ) | |||
Investment in venture capital partnerships and equity investments | — | (250 | ) | ||||
Cash paid in business combinations and asset acquisitions, net of cash acquired | (392,825 | ) | (66,432 | ) | |||
Net cash used for investing activities | (426,895 | ) | (201,240 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facility | 100,000 | — | |||||
Payment on revolving credit facility | (100,000 | ) | — | ||||
Payment of convertible notes | (144,639 | ) | — | ||||
Principal payments on receivable financing | (2,526 | ) | (5,776 | ) | |||
Payment of debt issuance costs | — | (1,372 | ) | ||||
Payment of acquisition-related contingent consideration | (677 | ) | (39 | ) | |||
Tax effect related to employee stock transactions allocated to equity | 9,034 | 6,061 | |||||
Proceeds from issuance of common stock | 42,657 | 32,687 | |||||
Stock received for payment of employee taxes on vesting of restricted stock | (20,140 | ) | (15,728 | ) | |||
Net cash provided by (used for) financing activities | (116,291 | ) | 15,833 | ||||
Effect of exchange rate changes on cash and cash equivalents | (14,516 | ) | (5,832 | ) | |||
Increase (decrease) in cash and cash equivalents | (190,097 | ) | 124,755 | ||||
Cash and cash equivalents at end of period | $ | 536,260 | $ | 726,357 |
Three Months Ending March 29, 2014 | Year Ending January 3, 2015 | |||
Forecast | Forecast | |||
Diluted net income per share on a GAAP basis | $0.08 to $0.10 | $0.55 to $0.65 | ||
Amortization of acquired intangibles | 0.04 | 0.16 | ||
Stock-based compensation expense | 0.07 | 0.28 | ||
Integration and acquisition-related costs | 0.02 | 0.05 | ||
Amortization of debt discount | 0.01 | 0.06 | ||
Income tax effect of non-GAAP adjustments | (0.04) | (0.18) | ||
Diluted net income per share on a non-GAAP basis | $0.18 to $0.20 | $0.92 to $1.02 |
Three Months Ending March 29, 2014 | Year Ending January 3, 2015 | |||
($ in millions) | Forecast | Forecast | ||
Net income on a GAAP basis | $25 to $31 | $167 to $197 | ||
Amortization of acquired intangibles | 12 | 50 | ||
Stock-based compensation expense | 19 | 83 | ||
Integration and acquisition-related costs | 6 | 15 | ||
Amortization of debt discount | 4 | 18 | ||
Income tax effect of non-GAAP adjustments | (13) | (56) | ||
Net income on a non-GAAP basis | $53 to $59 | $277 to $307 |
2012 | 2013 | |||||||||||||||||||||||||||||
GEOGRAPHY | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | ||||||||||||||||||||
Americas | 44 | % | 46 | % | 43 | % | 45 | % | 45 | % | 44 | % | 45 | % | 48 | % | 47 | % | 46 | % | ||||||||||
Europe, Middle East and Africa | 19 | % | 20 | % | 20 | % | 21 | % | 20 | % | 22 | % | 21 | % | 20 | % | 20 | % | 21 | % | ||||||||||
Japan | 18 | % | 16 | % | 17 | % | 14 | % | 16 | % | 15 | % | 13 | % | 12 | % | 14 | % | 13 | % | ||||||||||
Asia | 19 | % | 18 | % | 20 | % | 20 | % | 19 | % | 19 | % | 21 | % | 20 | % | 19 | % | 20 | % | ||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
2012 | 2013 | |||||||||||||||||||||||||||||
PRODUCT GROUP | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | ||||||||||||||||||||
Functional Verification, including Emulation Hardware and IP | 30 | % | 33 | % | 30 | % | 30 | % | 30 | % | 26 | % | 28 | % | 31 | % | 32 | % | 29 | % | ||||||||||
Custom IC Design | 23 | % | 22 | % | 24 | % | 24 | % | 23 | % | 25 | % | 25 | % | 25 | % | 24 | % | 25 | % | ||||||||||
Digital IC Design and Signoff | 23 | % | 22 | % | 23 | % | 23 | % | 23 | % | 25 | % | 23 | % | 21 | % | 21 | % | 23 | % | ||||||||||
System Interconnect Design | 8 | % | 8 | % | 9 | % | 9 | % | 9 | % | 10 | % | 11 | % | 10 | % | 10 | % | 10 | % | ||||||||||
Design for Manufacturing | 7 | % | 6 | % | 6 | % | 6 | % | 6 | % | 7 | % | 6 | % | 6 | % | 6 | % | 6 | % | ||||||||||
Services | 9 | % | 9 | % | 8 | % | 8 | % | 9 | % | 7 | % | 7 | % | 7 | % | 7 | % | 7 | % | ||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Cadence Design Systems, Inc. | ||||||||||||||||
Supplemental Reconciliation of Certain GAAP to Non-GAAP Measures | ||||||||||||||||
For the Three Months Ended December 28, 2013 | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
December 28, 2013 | ||||||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||||||
Revenue: | ||||||||||||||||
Product and maintenance | $ | 350,079 | $ | — | $ | 350,079 | ||||||||||
Services | 26,643 | — | 26,643 | |||||||||||||
Total revenue | 376,722 | — | 376,722 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product and maintenance | 41,757 | (7,743 | ) | (A) | 34,014 | |||||||||||
Cost of services | 17,274 | (698 | ) | (A) | 16,576 | |||||||||||
Marketing and sales | 94,384 | (5,201 | ) | (A) | 89,183 | |||||||||||
Research and development | 135,465 | (15,666 | ) | (A) | 119,799 | |||||||||||
General and administrative | 29,481 | (7,130 | ) | (A) | 22,351 | |||||||||||
Amortization of acquired intangibles | 5,157 | (5,157 | ) | (A) | — | |||||||||||
Restructuring and other charges | 15,405 | (15,405 | ) | — | ||||||||||||
Total costs and expenses | 338,923 | (57,000 | ) | 281,923 | ||||||||||||
Income from operations | 37,799 | 57,000 | 94,799 | |||||||||||||
Interest expense | (9,208 | ) | 5,515 | (B) | (3,693 | ) | ||||||||||
Other income (expense), net | 842 | (1,553 | ) | (C) | (711 | ) | ||||||||||
Income before provision (benefit) for income taxes | 29,433 | 60,962 | 90,395 | |||||||||||||
Provision (benefit) for income taxes | (8,272 | ) | 31,775 | (D) | 23,503 | |||||||||||
Net income | $ | 37,705 | $ | 29,187 | $ | 66,892 |
Amortization of acquired intangibles | Stock-based compensation expense | Non-qualified deferred compensation expenses | Integration and acquisition-related costs | Executive severance costs | Total adjustments | ||||||||||||||||||||||
Cost of product and maintenance | $ | 7,265 | $ | 471 | $ | 7 | $ | — | $ | — | $ | 7,743 | |||||||||||||||
Cost of services | — | 689 | 9 | — | — | 698 | |||||||||||||||||||||
Marketing and sales | — | 4,703 | 68 | 430 | — | 5,201 | |||||||||||||||||||||
Research and development | — | 9,605 | 683 | 5,378 | — | 15,666 | |||||||||||||||||||||
General and administrative | — | 3,330 | 489 | 3,095 | 216 | 7,130 | |||||||||||||||||||||
Amortization of acquired intangibles | 5,157 | — | — | — | — | 5,157 | |||||||||||||||||||||
Total | $ | 12,422 | $ | 18,798 | $ | 1,256 | $ | 8,903 | $ | 216 | $ | 41,595 |
Cadence Design Systems, Inc. | ||||||||||||||||
Supplemental Reconciliation of Certain GAAP to Non-GAAP Measures | ||||||||||||||||
For the Three Months Ended December 29, 2012 | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
December 29, 2012 | ||||||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||||||
Revenue: | ||||||||||||||||
Product and maintenance | $ | 318,513 | $ | — | $ | 318,513 | ||||||||||
Services | 27,072 | — | 27,072 | |||||||||||||
Total revenue | 345,585 | — | 345,585 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product and maintenance | 24,437 | (4,263 | ) | (E) | 20,174 | |||||||||||
Cost of services | 19,353 | (554 | ) | (E) | 18,799 | |||||||||||
Marketing and sales | 95,604 | (3,082 | ) | (E) | 92,522 | |||||||||||
Research and development | 118,382 | (8,725 | ) | (E) | 109,657 | |||||||||||
General and administrative | 27,712 | (3,932 | ) | (E) | 23,780 | |||||||||||
Amortization of acquired intangibles | 3,772 | (3,772 | ) | (E) | — | |||||||||||
Restructuring and other charges | 64 | (64 | ) | — | ||||||||||||
Total costs and expenses | 289,324 | (24,392 | ) | 264,932 | ||||||||||||
Income from operations | 56,261 | 24,392 | 80,653 | |||||||||||||
Interest expense | (8,902 | ) | 5,354 | (F) | (3,548 | ) | ||||||||||
Other income, net | 5,369 | (4,081 | ) | (G) | 1,288 | |||||||||||
Income before provision (benefit) for income taxes | 52,728 | 25,665 | 78,393 | |||||||||||||
Provision (benefit) for income taxes | (261,146 | ) | 281,528 | (H) | 20,382 | |||||||||||
Net income | $ | 313,874 | $ | (255,863 | ) | $ | 58,011 |
Amortization of acquired intangibles | Stock-based compensation expense | Non-qualified deferred compensation expenses | Integration and acquisition-related costs | Total adjustments | |||||||||||||||||||
Cost of product and maintenance | $ | 3,877 | $ | 375 | $ | 11 | $ | — | $ | 4,263 | |||||||||||||
Cost of services | — | 538 | 16 | — | 554 | ||||||||||||||||||
Marketing and sales | — | 2,907 | 110 | 65 | 3,082 | ||||||||||||||||||
Research and development | — | 6,293 | 623 | 1,809 | 8,725 | ||||||||||||||||||
General and administrative | — | 3,163 | 456 | 313 | 3,932 | ||||||||||||||||||
Amortization of acquired intangibles | 3,772 | — | — | — | 3,772 | ||||||||||||||||||
Total | $ | 7,649 | $ | 13,276 | $ | 1,216 | $ | 2,187 | $ | 24,328 |
Cadence Design Systems, Inc. | ||||||||||||||||
Supplemental Reconciliation of Certain GAAP to Non-GAAP Measures | ||||||||||||||||
For the Year Ended December 28, 2013 | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Year Ended | ||||||||||||||||
December 28, 2013 | ||||||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||||||
Revenue: | ||||||||||||||||
Product and maintenance | $ | 1,357,934 | $ | — | $ | 1,357,934 | ||||||||||
Services | 102,182 | — | 102,182 | |||||||||||||
Total revenue | 1,460,116 | — | 1,460,116 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product and maintenance | 132,245 | (26,352 | ) | (I) | 105,893 | |||||||||||
Cost of services | 67,956 | (2,373 | ) | (I) | 65,583 | |||||||||||
Marketing and sales | 378,157 | (17,828 | ) | (I) | 360,329 | |||||||||||
Research and development | 534,022 | (53,403 | ) | (I) | 480,619 | |||||||||||
General and administrative | 121,314 | (27,273 | ) | (I) | 94,041 | |||||||||||
Amortization of acquired intangibles | 19,416 | (19,416 | ) | (I) | — | |||||||||||
Restructuring and other charges | 17,999 | (17,999 | ) | — | ||||||||||||
Total costs and expenses | 1,271,109 | (164,644 | ) | 1,106,465 | ||||||||||||
Income from operations | 189,007 | 164,644 | 353,651 | |||||||||||||
Interest expense | (37,581 | ) | 22,315 | (J) | (15,266 | ) | ||||||||||
Other income, net | 7,570 | (5,280 | ) | (K) | 2,290 | |||||||||||
Income before provision (benefit) for income taxes | 158,996 | 181,679 | 340,675 | |||||||||||||
Provision (benefit) for income taxes | (5,247 | ) | 93,823 | (L) | 88,576 | |||||||||||
Net income | $ | 164,243 | $ | 87,856 | $ | 252,099 |
Amortization and sale of acquired intangibles | Stock-based compensation expense | Non-qualified deferred compensation expenses | Integration and acquisition-related costs | Executive severance costs | Total adjustments | ||||||||||||||||||||||
Cost of product and maintenance | $ | 24,718 | $ | 1,596 | $ | 38 | $ | — | $ | — | $ | 26,352 | |||||||||||||||
Cost of services | — | 2,321 | 52 | — | — | 2,373 | |||||||||||||||||||||
Marketing and sales | — | 15,642 | 239 | 1,467 | 480 | 17,828 | |||||||||||||||||||||
Research and development | — | 32,999 | 1,700 | 18,704 | — | 53,403 | |||||||||||||||||||||
General and administrative | — | 13,727 | 1,264 | 11,801 | 481 | 27,273 | |||||||||||||||||||||
Amortization of acquired intangibles | 19,416 | — | — | — | — | 19,416 | |||||||||||||||||||||
Total | $ | 44,134 | $ | 66,285 | $ | 3,293 | $ | 31,972 | $ | 961 | $ | 146,645 |
Cadence Design Systems, Inc. | ||||||||||||||||
Supplemental Reconciliation of Certain GAAP to Non-GAAP Measures | ||||||||||||||||
For the Year Ended December 29, 2012 | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Year Ended | ||||||||||||||||
December 29, 2012 | ||||||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||||||
Revenue: | ||||||||||||||||
Product and maintenance | $ | 1,212,429 | $ | — | $ | 1,212,429 | ||||||||||
Services | 113,995 | — | 113,995 | |||||||||||||
Total revenue | 1,326,424 | — | 1,326,424 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product and maintenance | 118,516 | (14,905 | ) | (M) | 103,611 | |||||||||||
Cost of services | 72,607 | (1,957 | ) | (M) | 70,650 | |||||||||||
Marketing and sales | 342,278 | (11,247 | ) | (M) | 331,031 | |||||||||||
Research and development | 454,085 | (29,860 | ) | (M) | 424,225 | |||||||||||
General and administrative | 112,076 | (16,910 | ) | (M) | 95,166 | |||||||||||
Amortization of acquired intangibles | 15,077 | (15,077 | ) | (M) | — | |||||||||||
Restructuring and other charges | 113 | (113 | ) | — | ||||||||||||
Total costs and expenses | 1,114,752 | (90,069 | ) | 1,024,683 | ||||||||||||
Income from operations | 211,672 | 90,069 | 301,741 | |||||||||||||
Interest expense | (34,742 | ) | 20,846 | (N) | (13,896 | ) | ||||||||||
Other income, net | 11,341 | (6,296 | ) | (O) | 5,045 | |||||||||||
Income before provision (benefit) for income taxes | 188,271 | 104,619 | 292,890 | |||||||||||||
Provision (benefit) for income taxes | (251,677 | ) | 327,828 | (P) | 76,151 | |||||||||||
Net income | $ | 439,948 | $ | (223,209 | ) | $ | 216,739 |
Amortization of acquired intangibles | Stock-based compensation expense | Non-qualified deferred compensation expenses | Integration and acquisition-related costs | Shareholder litigation costs | Total adjustments | ||||||||||||||||||||||
Cost of product and maintenance | $ | 13,541 | $ | 1,317 | $ | 47 | $ | — | $ | — | $ | 14,905 | |||||||||||||||
Cost of services | — | 1,889 | 68 | — | — | 1,957 | |||||||||||||||||||||
Marketing and sales | — | 10,193 | 492 | 562 | — | 11,247 | |||||||||||||||||||||
Research and development | — | 21,516 | 2,144 | 6,200 | — | 29,860 | |||||||||||||||||||||
General and administrative | — | 12,646 | 1,702 | 2,516 | 46 | 16,910 | |||||||||||||||||||||
Amortization of acquired intangibles | 15,077 | — | — | — | — | 15,077 | |||||||||||||||||||||
Total | $ | 28,618 | $ | 47,561 | $ | 4,453 | $ | 9,278 | $ | 46 | $ | 89,956 |