Delaware | 000-15867 | 00-0000000 | ||
(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 February 4, 2015. |
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 February 4, 2015. |
Net Income Reconciliation | Three Months Ended | |||||||
January 3, 2015 | December 28, 2013 | |||||||
(unaudited) | ||||||||
(in thousands) | ||||||||
Net income on a GAAP basis | $ | 65,030 | $ | 37,705 | ||||
Amortization of acquired intangibles | 17,559 | 12,422 | ||||||
Stock-based compensation expense | 22,974 | 18,798 | ||||||
Non-qualified deferred compensation expenses | 409 | 1,256 | ||||||
Restructuring and other charges (credits) | (1,145 | ) | 15,405 | |||||
Acquisition and integration-related costs | 4,280 | 8,903 | ||||||
Special charges* | — | 216 | ||||||
Amortization of debt discount | 4,782 | 5,515 | ||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets** | (1,484 | ) | (1,553 | ) | ||||
Income tax effect of non-GAAP adjustments | (27,987 | ) | (31,775 | ) | ||||
Net income on a non-GAAP basis | $ | 84,418 | $ | 66,892 |
* | Comprised of costs related to executive severance costs |
** | 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 | |||||||
January 3, 2015 | December 28, 2013 | |||||||
(unaudited) | ||||||||
(in thousands) | ||||||||
Net income on a GAAP basis | $ | 158,898 | $ | 164,243 | ||||
Amortization and sale of acquired intangibles | 60,924 | 44,134 | ||||||
Stock-based compensation expense | 83,792 | 66,285 | ||||||
Non-qualified deferred compensation expenses | 3,415 | 3,293 | ||||||
Restructuring and other charges | 10,252 | 17,999 | ||||||
Acquisition and integration-related costs | 24,620 | 31,972 | ||||||
Special charges* | 10,816 | 961 | ||||||
Amortization of debt discount | 17,602 | 22,315 | ||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets** | (4,629 | ) | (5,280 | ) | ||||
Income tax benefit due to a release of an uncertain tax position | — | (33,719 | ) | |||||
Income tax effect of non-GAAP adjustments | (78,723 | ) | (60,104 | ) | ||||
Net income on a non-GAAP basis | $ | 286,967 | $ | 252,099 |
* | Comprised of costs related to a voluntary retirement program and executive severance costs |
** | 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 | |||||||
January 3, 2015 | December 28, 2013 | |||||||
(unaudited) | ||||||||
(in thousands, except per share data) | ||||||||
Diluted net income per share on a GAAP basis | $ | 0.21 | $ | 0.13 | ||||
Amortization of acquired intangibles | 0.06 | 0.04 | ||||||
Stock-based compensation expense | 0.07 | 0.06 | ||||||
Non-qualified deferred compensation expenses | — | 0.01 | ||||||
Restructuring and other charges (credits) | — | 0.05 | ||||||
Acquisition and integration-related costs | 0.01 | 0.03 | ||||||
Special charges* | — | — | ||||||
Amortization of debt discount | 0.01 | 0.02 | ||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets** | — | — | ||||||
Income tax effect of non-GAAP adjustments | (0.09 | ) | (0.11 | ) | ||||
Diluted net income per share on a non-GAAP basis | $ | 0.27 | $ | 0.23 | ||||
Shares used in calculation of diluted net income per share — GAAP*** | 310,273 | 294,663 | ||||||
Shares used in calculation of diluted net income per share — non-GAAP*** | 310,273 | 294,663 |
* | Comprised of costs related to executive severance costs |
** | 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 | |||||||
January 3, 2015 | December 28, 2013 | |||||||
(unaudited) | ||||||||
(in thousands, except per share data) | ||||||||
Diluted net income per share on a GAAP basis | $ | 0.52 | $ | 0.56 | ||||
Amortization and sale of acquired intangibles | 0.20 | 0.15 | ||||||
Stock-based compensation expense | 0.27 | 0.23 | ||||||
Non-qualified deferred compensation expenses | 0.01 | 0.01 | ||||||
Restructuring and other charges | 0.03 | 0.06 | ||||||
Acquisition and integration-related costs | 0.08 | 0.11 | ||||||
Special charges* | 0.04 | — | ||||||
Amortization of debt discount | 0.06 | 0.08 | ||||||
Other income or expense related to investments and non-qualified deferred compensation plan assets** | (0.01 | ) | (0.02 | ) | ||||
Income tax benefit due to a release of an uncertain tax position | — | (0.11 | ) | |||||
Income tax effect of non-GAAP adjustments | (0.26 | ) | (0.21 | ) | ||||
Diluted net income per share on a non-GAAP basis | $ | 0.94 | $ | 0.86 | ||||
Shares used in calculation of diluted net income per share — GAAP*** | 306,775 | 294,564 | ||||||
Shares used in calculation of diluted net income per share — non-GAAP*** | 306,775 | 294,564 |
* | Comprised of costs related to a voluntary retirement program and executive severance costs |
** | 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. |
January 3, 2015 | December 28, 2013 | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 932,161 | $ | 536,260 | ||||
Short-term investments | 90,445 | 96,788 | ||||||
Receivables, net | 122,492 | 107,624 | ||||||
Inventories | 56,394 | 50,220 | ||||||
2015 notes hedges | 523,930 | 306,817 | ||||||
Prepaid expenses and other | 126,313 | 123,382 | ||||||
Total current assets | 1,851,735 | 1,221,091 | ||||||
Property, plant and equipment, net of accumulated depreciation of $552,551 and $568,494, respectively | 230,112 | 238,715 | ||||||
Goodwill | 553,767 | 456,905 | ||||||
Acquired intangibles, net of accumulated amortization of $154,814 and $139,820, respectively | 360,932 | 311,693 | ||||||
Long-term receivables | 3,644 | 3,672 | ||||||
Other assets | 209,366 | 196,525 | ||||||
Total assets | $ | 3,209,556 | $ | 2,428,601 | ||||
Current liabilities: | ||||||||
Convertible notes | $ | 342,499 | $ | 324,826 | ||||
2015 notes embedded conversion derivative | 523,930 | 306,817 | ||||||
Accounts payable and accrued liabilities | 225,375 | 216,594 | ||||||
Current portion of deferred revenue | 301,287 | 299,973 | ||||||
Total current liabilities | 1,393,091 | 1,148,210 | ||||||
Long-term liabilities: | ||||||||
Long-term portion of deferred revenue | 54,726 | 52,850 | ||||||
Long-term debt | 348,676 | — | ||||||
Other long-term liabilities | 79,489 | 71,436 | ||||||
Total long-term liabilities | 482,891 | 124,286 | ||||||
Stockholders’ equity | 1,333,574 | 1,156,105 | ||||||
Total liabilities and stockholders’ equity | $ | 3,209,556 | $ | 2,428,601 |
Three Months Ended | Years Ended | |||||||||||||||
January 3, 2015 | December 28, 2013 | January 3, 2015 | December 28, 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Product and maintenance | $ | 393,223 | $ | 350,079 | $ | 1,479,151 | $ | 1,357,934 | ||||||||
Services | 29,875 | 26,643 | 101,781 | 102,182 | ||||||||||||
Total revenue | 423,098 | 376,722 | 1,580,932 | 1,460,116 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product and maintenance | 39,475 | 41,757 | 156,333 | 132,245 | ||||||||||||
Cost of services | 18,640 | 17,274 | 67,373 | 67,956 | ||||||||||||
Marketing and sales | 102,367 | 94,384 | 399,688 | 378,157 | ||||||||||||
Research and development | 155,124 | 135,465 | 603,006 | 534,022 | ||||||||||||
General and administrative | 26,939 | 29,481 | 113,619 | 121,314 | ||||||||||||
Amortization of acquired intangibles | 6,912 | 5,157 | 24,017 | 19,416 | ||||||||||||
Restructuring and other charges (credits) | (1,145 | ) | 15,405 | 10,252 | 17,999 | |||||||||||
Total costs and expenses | 348,312 | 338,923 | 1,374,288 | 1,271,109 | ||||||||||||
Income from operations | 74,786 | 37,799 | 206,644 | 189,007 | ||||||||||||
Interest expense | (11,961 | ) | (9,208 | ) | (34,121 | ) | (37,581 | ) | ||||||||
Other income, net | 3,879 | 842 | 8,479 | 7,570 | ||||||||||||
Income before provision (benefit) for income taxes | 66,704 | 29,433 | 181,002 | 158,996 | ||||||||||||
Provision (benefit) for income taxes | 1,674 | (8,272 | ) | 22,104 | (5,247 | ) | ||||||||||
Net income | $ | 65,030 | $ | 37,705 | $ | 158,898 | $ | 164,243 | ||||||||
Net income per share - basic | $ | 0.23 | $ | 0.13 | $ | 0.56 | $ | 0.59 | ||||||||
Net income per share - diluted | $ | 0.21 | $ | 0.13 | $ | 0.52 | $ | 0.56 | ||||||||
Weighted average common shares outstanding - basic | 283,928 | 280,083 | 283,349 | 277,796 | ||||||||||||
Weighted average common shares outstanding - diluted | 310,273 | 294,663 | 306,775 | 294,564 |
Years Ended | |||||||
January 3, 2015 | December 28, 2013 | ||||||
Cash and cash equivalents at beginning of year | $ | 536,260 | $ | 726,357 | |||
Cash flows from operating activities: | |||||||
Net income | 158,898 | 164,243 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 115,634 | 98,308 | |||||
Amortization of debt discount and fees | 20,529 | 25,384 | |||||
Stock-based compensation | 83,792 | 66,285 | |||||
Gain on investments, net | (4,707 | ) | (5,311 | ) | |||
Deferred income taxes | 12,478 | (2,366 | ) | ||||
Other non-cash items | 6,854 | 3,932 | |||||
Changes in operating assets and liabilities, net of effect of acquired businesses: | |||||||
Receivables | (17,925 | ) | (3,609 | ) | |||
Inventories | (11,708 | ) | (14,594 | ) | |||
Prepaid expenses and other | (2,501 | ) | 30,368 | ||||
Other assets | (42,181 | ) | (2,530 | ) | |||
Accounts payable and accrued liabilities | 3,856 | 41,727 | |||||
Deferred revenue | (11,860 | ) | 2,506 | ||||
Other long-term liabilities | 5,563 | (36,738 | ) | ||||
Net cash provided by operating activities | 316,722 | 367,605 | |||||
Cash flows from investing activities: | |||||||
Purchases of available-for-sale securities | (124,165 | ) | (111,702 | ) | |||
Proceeds from the sale of available-for-sale securities | 85,384 | 77,621 | |||||
Proceeds from the maturity of available-for-sale securities | 46,612 | 38,706 | |||||
Proceeds from the sale of long-term investments | 1,085 | 6,234 | |||||
Purchases of property, plant and equipment | (39,810 | ) | (44,929 | ) | |||
Cash paid in business combinations and asset acquisitions, net of cash acquired | (167,121 | ) | (392,825 | ) | |||
Net cash used for investing activities | (198,015 | ) | (426,895 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | 348,649 | — | |||||
Proceeds from revolving credit facility | 100,000 | 100,000 | |||||
Payment on revolving credit facility | (100,000 | ) | (100,000 | ) | |||
Payment of convertible notes | (1 | ) | (144,639 | ) | |||
Payment of convertible notes embedded conversion derivative liability | (1 | ) | — | ||||
Proceeds from convertible notes hedges | 1 | — | |||||
Principal payments on receivable financing | — | (2,526 | ) | ||||
Payment of debt issuance costs | (6,500 | ) | — | ||||
Payment of acquisition-related contingent consideration | (1,835 | ) | (677 | ) | |||
Tax effect related to employee stock transactions allocated to equity | 7,583 | 9,034 | |||||
Proceeds from issuance of common stock | 65,913 | 42,657 | |||||
Stock received for payment of employee taxes on vesting of restricted stock | (24,727 | ) | (20,140 | ) | |||
Payments for repurchases of common stock | (100,117 | ) | — | ||||
Net cash provided by (used for) financing activities | 288,965 | (116,291 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (11,771 | ) | (14,516 | ) | |||
Increase (decrease) in cash and cash equivalents | 395,901 | (190,097 | ) | ||||
Cash and cash equivalents at end of year | $ | 932,161 | $ | 536,260 |
Three Months Ending April 4, 2015 | Year Ending January 2, 2016 | |||
Forecast | Forecast | |||
Diluted net income per share on a GAAP basis | $0.08 to $0.10 | $0.49 to $0.61 | ||
Amortization of acquired intangibles | 0.05 | 0.21 | ||
Stock-based compensation expense | 0.07 | 0.31 | ||
Acquisition and integration-related costs | 0.01 | 0.03 | ||
Amortization of debt discount | 0.02 | 0.02 | ||
Income tax effect of non-GAAP adjustments | (0.03) | (0.12) | ||
Diluted net income per share on a non-GAAP basis | $0.20 to $0.22 | $0.94 to $1.06 |
Three Months Ending April 4, 2015 | Year Ending January 2, 2016 | |||
($ in millions) | Forecast | Forecast | ||
Net income on a GAAP basis | $26 to $33 | $153 to $190 | ||
Amortization of acquired intangibles | 16 | 64 | ||
Stock-based compensation expense | 22 | 95 | ||
Acquisition and integration-related costs | 3 | 8 | ||
Amortization of debt discount | 5 | 7 | ||
Income tax effect of non-GAAP adjustments | (10) | (36) | ||
Net income on a non-GAAP basis | $62 to $69 | $291 to $328 |
2013 | 2014 | |||||||||||||||||||||||||||||
GEOGRAPHY | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | ||||||||||||||||||||
Americas | 44 | % | 45 | % | 48 | % | 47 | % | 46 | % | 45 | % | 44 | % | 46 | % | 47 | % | 45 | % | ||||||||||
Asia | 19 | % | 21 | % | 20 | % | 19 | % | 20 | % | 23 | % | 23 | % | 22 | % | 22 | % | 23 | % | ||||||||||
Europe, Middle East and Africa | 22 | % | 21 | % | 20 | % | 20 | % | 21 | % | 20 | % | 22 | % | 21 | % | 21 | % | 21 | % | ||||||||||
Japan | 15 | % | 13 | % | 12 | % | 14 | % | 13 | % | 12 | % | 11 | % | 11 | % | 10 | % | 11 | % | ||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
2013 | 2014 | |||||||||||||||||||||||||||||
PRODUCT GROUP | Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | ||||||||||||||||||||
Functional Verification, including Emulation Hardware | 22 | % | 22 | % | 24 | % | 25 | % | 23 | % | 23 | % | 21 | % | 23 | % | 21 | % | 22 | % | ||||||||||
Digital IC Design and Signoff | 33 | % | 31 | % | 29 | % | 29 | % | 30 | % | 30 | % | 30 | % | 29 | % | 28 | % | 29 | % | ||||||||||
Custom IC Design | 28 | % | 28 | % | 28 | % | 26 | % | 27 | % | 27 | % | 28 | % | 27 | % | 28 | % | 27 | % | ||||||||||
System Interconnect and Analysis | 10 | % | 11 | % | 10 | % | 10 | % | 11 | % | 10 | % | 11 | % | 10 | % | 11 | % | 11 | % | ||||||||||
IP | 7 | % | 8 | % | 9 | % | 10 | % | 9 | % | 10 | % | 10 | % | 11 | % | 12 | % | 11 | % | ||||||||||
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 January 3, 2015 | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
January 3, 2015 | ||||||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||||||
Revenue: | ||||||||||||||||
Product and maintenance | $ | 393,223 | $ | — | $ | 393,223 | ||||||||||
Services | 29,875 | — | 29,875 | |||||||||||||
Total revenue | 423,098 | — | 423,098 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product and maintenance | 39,475 | (11,297 | ) | (A) | 28,178 | |||||||||||
Cost of services | 18,640 | (950 | ) | (A) | 17,690 | |||||||||||
Marketing and sales | 102,367 | (5,924 | ) | (A) | 96,443 | |||||||||||
Research and development | 155,124 | (15,795 | ) | (A) | 139,329 | |||||||||||
General and administrative | 26,939 | (4,344 | ) | (A) | 22,595 | |||||||||||
Amortization of acquired intangibles | 6,912 | (6,912 | ) | (A) | — | |||||||||||
Restructuring and other charges (credits) | (1,145 | ) | 1,145 | — | ||||||||||||
Total costs and expenses | 348,312 | (44,077 | ) | 304,235 | ||||||||||||
Income from operations | 74,786 | 44,077 | 118,863 | |||||||||||||
Interest expense | (11,961 | ) | 4,782 | (B) | (7,179 | ) | ||||||||||
Other income (expense), net | 3,879 | (1,484 | ) | (C) | 2,395 | |||||||||||
Income before provision for income taxes | 66,704 | 47,375 | 114,079 | |||||||||||||
Provision for income taxes | 1,674 | 27,987 | (D) | 29,661 | ||||||||||||
Net income | $ | 65,030 | $ | 19,388 | $ | 84,418 |
Amortization of acquired intangibles | Stock-based compensation expense | Non-qualified deferred compensation expenses | Acquisition and integration-related costs | Total adjustments | |||||||||||||||||||
Cost of product and maintenance | $ | 10,647 | $ | 644 | $ | 6 | $ | — | $ | 11,297 | |||||||||||||
Cost of services | — | 942 | 8 | — | 950 | ||||||||||||||||||
Marketing and sales | — | 5,494 | 19 | 411 | 5,924 | ||||||||||||||||||
Research and development | — | 12,225 | 216 | 3,354 | 15,795 | ||||||||||||||||||
General and administrative | — | 3,669 | 160 | 515 | 4,344 | ||||||||||||||||||
Amortization of acquired intangibles | 6,912 | — | — | — | 6,912 | ||||||||||||||||||
Total | $ | 17,559 | $ | 22,974 | $ | 409 | $ | 4,280 | $ | 45,222 |
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 | ) | (E) | 34,014 | |||||||||||
Cost of services | 17,274 | (698 | ) | (E) | 16,576 | |||||||||||
Marketing and sales | 94,384 | (5,201 | ) | (E) | 89,183 | |||||||||||
Research and development | 135,465 | (15,666 | ) | (E) | 119,799 | |||||||||||
General and administrative | 29,481 | (7,130 | ) | (E) | 22,351 | |||||||||||
Amortization of acquired intangibles | 5,157 | (5,157 | ) | (E) | — | |||||||||||
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 | (F) | (3,693 | ) | ||||||||||
Other income (expense), net | 842 | (1,553 | ) | (G) | (711 | ) | ||||||||||
Income before provision (benefit) for income taxes | 29,433 | 60,962 | 90,395 | |||||||||||||
Provision (benefit) for income taxes | (8,272 | ) | 31,775 | (H) | 23,503 | |||||||||||
Net income | $ | 37,705 | $ | 29,187 | $ | 66,892 |
Amortization of acquired intangibles | Stock-based compensation expense | Non-qualified deferred compensation expenses | Acquisition and integration-related costs | Special charges (I) | 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 Year Ended January 3, 2015 | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Year Ended | ||||||||||||||||
January 3, 2015 | ||||||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||||||
Revenue: | ||||||||||||||||
Product and maintenance | $ | 1,479,151 | $ | — | $ | 1,479,151 | ||||||||||
Services | 101,781 | — | 101,781 | |||||||||||||
Total revenue | 1,580,932 | — | 1,580,932 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product and maintenance | 156,333 | (39,586 | ) | (J) | 116,747 | |||||||||||
Cost of services | 67,373 | (3,997 | ) | (J) | 63,376 | |||||||||||
Marketing and sales | 399,688 | (25,410 | ) | (J) | 374,278 | |||||||||||
Research and development | 603,006 | (68,141 | ) | (J) | 534,865 | |||||||||||
General and administrative | 113,619 | (22,416 | ) | (J) | 91,203 | |||||||||||
Amortization of acquired intangibles | 24,017 | (24,017 | ) | (J) | — | |||||||||||
Restructuring and other charges | 10,252 | (10,252 | ) | — | ||||||||||||
Total costs and expenses | 1,374,288 | (193,819 | ) | 1,180,469 | ||||||||||||
Income from operations | 206,644 | 193,819 | 400,463 | |||||||||||||
Interest expense | (34,121 | ) | 17,602 | (K) | (16,519 | ) | ||||||||||
Other income, net | 8,479 | (4,629 | ) | (L) | 3,850 | |||||||||||
Income before provision for income taxes | 181,002 | 206,792 | 387,794 | |||||||||||||
Provision for income taxes | 22,104 | 78,723 | (M) | 100,827 | ||||||||||||
Net income | $ | 158,898 | $ | 128,069 | $ | 286,967 |
Amortization of acquired intangibles | Stock-based compensation expense | Non-qualified deferred compensation expenses | Acquisition and integration-related costs | Special charges (N) | Total adjustments | ||||||||||||||||||||||
Cost of product and maintenance | $ | 36,907 | $ | 2,244 | $ | 34 | $ | — | $ | 401 | $ | 39,586 | |||||||||||||||
Cost of services | — | 3,280 | 50 | — | 667 | 3,997 | |||||||||||||||||||||
Marketing and sales | — | 20,580 | 149 | 2,768 | 1,913 | 25,410 | |||||||||||||||||||||
Research and development | — | 43,173 | 1,886 | 17,228 | 5,854 | 68,141 | |||||||||||||||||||||
General and administrative | — | 14,515 | 1,296 | 4,624 | 1,981 | 22,416 | |||||||||||||||||||||
Amortization of acquired intangibles | 24,017 | — | — | — | — | 24,017 | |||||||||||||||||||||
Total | $ | 60,924 | $ | 83,792 | $ | 3,415 | $ | 24,620 | $ | 10,816 | $ | 183,567 |
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 | ) | (O) | 105,893 | |||||||||||
Cost of services | 67,956 | (2,373 | ) | (O) | 65,583 | |||||||||||
Marketing and sales | 378,157 | (17,828 | ) | (O) | 360,329 | |||||||||||
Research and development | 534,022 | (53,403 | ) | (O) | 480,619 | |||||||||||
General and administrative | 121,314 | (27,273 | ) | (O) | 94,041 | |||||||||||
Amortization of acquired intangibles | 19,416 | (19,416 | ) | (O) | — | |||||||||||
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 | (P) | (15,266 | ) | ||||||||||
Other income, net | 7,570 | (5,280 | ) | (Q) | 2,290 | |||||||||||
Income before provision (benefit) for income taxes | 158,996 | 181,679 | 340,675 | |||||||||||||
Provision (benefit) for income taxes | (5,247 | ) | 93,823 | (R) | 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 | Acquisition and integration-related costs | Special charges (S) | 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 |