Cadence Design Systems, Inc.

As of February 3, 2016

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

(Unaudited)

Three Months Ending

Year Ending

April 2, 2016

December 31, 2016

Forecast

Forecast

Diluted net income per share on a GAAP basis

 $0.17 to $0.19 

 $0.72 to $0.82 

Amortization of acquired intangibles

0.05

0.20

Stock-based compensation expense

0.08

0.38

Acquisition and integration-related costs

-

-

Other income or expense related to investments and non-qualified 

    deferred compensation plan assets*

(0.01)

(0.01)

Income tax effect of non-GAAP adjustments

(0.03)

(0.14)

Diluted net income per share on a non-GAAP basis�nbsp;

 $0.26 to $0.28 

 $1.15 to $1.25 

Cadence Design Systems, Inc.

As of February 3, 2016

Impact of Non-GAAP Adjustments on Forward Looking Net Income

(Unaudited)

Three Months Ending

Year Ending

April 2, 2016

December 31, 2016

($ in millions)

Forecast

Forecast

Net income on a GAAP basis

 $50 to $56 

 $206 to $235 

Amortization of acquired intangibles

16

58

Stock-based compensation expense

25

109

Acquisition and integration-related costs

-

1

Other income or expense related to investments and non-qualified 

    deferred compensation plan assets*

(2)

(2)

Income tax effect of non-GAAP adjustments

(10)

(41)

Net income on a non-GAAP basis�nbsp;

 $79 to $85 

 $331 to $360 

�nbsp;The non-GAAP measures presented in the table above should not be considered a substitute for financial results and  measures determined or calculated in accordance with GAAP. 

 * 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.