Cadence Design Systems, Inc.

As of January 29, 2014

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

(Unaudited)

Three Months Ending

Year Ending

March 29, 2014

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 

Cadence Design Systems, Inc.

As of January 29, 2014

Impact of Non-GAAP Adjustments on Forward Looking Net Income 

(Unaudited)

Three Months Ending

Year Ending

March 29, 2014

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