• Expect to repurchase approximately $125 million of Cadence shares in Q1.
Q4 2022 KEY METRICS
• Revenue $900 million
• GAAP operating margin 23%
• Non-GAAP operating margin 36%
• GAAP EPS $0.88
• Non-GAAP EPS $0.96
• Operating cash flow $264 million
FY 2023 Outlook
• Revenue: $4.00 - $4.06 billion.
• GAAP operating margin: 30.5% - 32.0%.
• Non-GAAP operating margin: 40.5% - 42.0%.
• GAAP EPS: $3.24 - $3.34
• Non-GAAP EPS $4.90 - $5.00
• Operating cash flow: $1.3 - $1.4 billion.
• Expect to use approximately 50% of free cash flow to repurchase Cadence shares for the year.
Financial Results Webcast
FY 2022 KEY METRICS
Our Q4 2022 financial results webcast will begin February 13, 2023 at 2:00 p.m. (Pacific). The webcast may be accessed at www.cadence.com/cadence/investor_relations. An archive of the webcast will be available on February 13, 2023 until 5:00 p.m. (Pacific) on March 17, 2023.
• Revenue $3.562 billion
• GAAP operating margin 30%
• Non-GAAP operating margin 40%
• GAAP EPS $3.09
• Non-GAAP EPS $4.27
• Operating cash flow $1.242 billion
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
1
Cadence Design Systems, Inc.
Financial Metrics
(In Millions, except per share data)
2017*
2018
2019
2020*
2021
2022
2023E*
Revenue
$
1,943
$
2,138
$
2,336
$
2,683
$
2,988
$
3,562
$4,000- $4,060
Revenue growth*
7%
10%
9%
15%
11%
19%
12% - 14%
3-year CAGR
7%
8%
9%
11%
12%
15%
~15%
3-year CAGR without 53rd week impact
8%
11%
~15%
GAAP operating expenses
$
1,619
$
1,742
$
1,845
$
2,037
$
2,209
$
2,488
~$2,796
GAAP operating expense growth
3%
8%
6%
10%
8%
13%
~12%
Non-GAAP operating expenses
$
1,409
$
1,491
$
1,587
$
1,739
$
1,877
$
2,125
~$2,368
Non-GAAP operating expense growth
5%
6%
6%
10%
8%
13%
~11%
GAAP operating margin
17%
19%
21%
24%
26%
30%
Implied GAAP operating margin**
31.25%
Non-GAAP operating margin
28%
30%
32%
35%
37%
40%
Implied Non-GAAP operating margin**
41.25%
GAAP earnings per share
$
0.73
$
1.23
$
3.53
$
2.11
$
2.50
$
3.09
$3.24 - $3.34
Non-GAAP earning per share
$
1.40
$
1.87
$
2.20
$
2.80
$
3.29
$
4.27
$4.90 - $5.00
Weighted average shares diluted outstanding
280.2
281.1
280.5
279.6
278.9
275.0
272 - 274
Cash flow from operations
471
605
730
905
1,101
1,242
$1,300 - $1,400
Capital expenditures
58
62
75
95
65
123
~$120
* Fiscal 2014 and 2020 were 53-week years, compared to all other years which are 52 week years. 2020 (which impacts the 3 year CAGR in 2023) included approximately $45 million revenue impact for the extra week. 2014 revenue (which impacts the 3 year CAGR in 2017) included approximately $27 million revenue impact for the extra week.
** At midpoint of guidance.
Profitability Trends
(In Millions)
2017
2018
2019
2020
2021
2022
2023E*
Revenue
$
1,943
$
2,138
$
2,336
$
2,683
$
2,988
$
3,562
$
4,030
Revenue Growth
7%
10%
9%
15%
11%
19%
~13%
3-Year Revenue Growth CAGR
7%
8%
9%
11%
12%
15%
~15%
GAAP operating margin
17%
19%
21%
24%
26%
30%
31.25%
Non-GAAP operating margin
28%
30%
32%
35%
37%
40%
41.25%
Stock-based compensation
(7)%
(8)%
(8)%
(7)%
(7)%
(8)%
~(8)%
Non-GAAP operating margin adjusted for stock-based compensation
21%
22%
24%
28%
30%
32%
33.25%
GAAP operating income
$
324
$
396
$
492
$
646
$
779
$
1,074
$
1,234
Non-GAAP operating income
$
534
$
647
$
749
$
944
$
1,111
$
1,436
$
1,662
Non-GAAP operating income adjusted for stock-based compensation
$
404
$
479
$
567
$
747
$
901
$
1,166
$
1,332
* At midpoint of guidance.
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
2
Cadence Design Systems, Inc.
First Quarter 2023 Financial Outlook
Q1 2022
Q4 2022
Q1 2023E
Total Revenue ($ Millions)
$
902
$
900
$1,000 - $1,020
Q/Q Growth
0%
11% - 13%
Y/Y Growth
16%
11% - 13%
GAAP Operating Margin
35%
23%
31% -32%
Non-GAAP Operating Margin
44%
36%
41% - 42%
GAAP EPS
$
0.85
$
0.88
$0.84 - $0.88
Non-GAAP EPS
$
1.17
$
0.96
$1.23 - $1.27
Fiscal Year 2023 Financial Outlook
FY 2022
FY 2023E
Recurring Revenue
~85%
~85%
Total Revenue ($ Millions)
$
3,562
$4,000 - $4,060
Y/Y Growth
19%
12% - 14%
Revenue from Beginning Backlog
~70%
~75%
GAAP Operating Margin
30.1%
30.5% - 32.0%
Non-GAAP Operating Margin
40.3%
40.5% - 42.0%
GAAP Other Income & Expense ($ Millions)
$
(28)
$(21) - $(29)
Non-GAAP Other Income & Expense ($ Millions)
$
(14)
$(21) - $(29)
GAAP Tax Rate
19%
~26%
Non-GAAP Tax Rate
17.5%
17.5%
Weighted Average Diluted Shares Outstanding (Millions)
275.0
272 - 274
GAAP EPS
$
3.09
$3.24 - $3.34
Y/Y Growth
24%
5% - 8%
Non-GAAP EPS
$
4.27
$4.90 - $5.00
Y/Y Growth
30%
15% - 17%
Cash Flow from Operations ($ Millions)
$
1,242
$1,300 - $1,400
DSO
49
~45
Capital Expenditures ($ Millions)
$
123
~$120
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
3
Cadence Design Systems, Inc.
Fourth Quarter and Fiscal Year Financial Results
Backlog
(In Billions)
2018
2019
2020
2021
2022
Backlog
$
3.0
$
3.6
$
3.9
$
4.4
$
5.8
Revenue
(In Millions)
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Product and Maintenance
$
720
$
846
$
803
$
846
$
846
Services
53
56
55
57
54
Total Revenue
$
773
$
902
$
858
$
903
$
900
(In Millions)
2018
2019
2020*
2021
2022
Product and Maintenance
$
1,998
$
2,204
$
2,537
$
2,813
$
3,340
Services
140
132
146
175
222
Total Revenue
$
2,138
$
2,336
$
2,683
$
2,988
$
3,562
* Fiscal 2020 was a 53-week year.
Recurring and Up-Front Revenue
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Revenue recognized over time
88
%
81
%
84
%
81
%
84
%
Revenue from arrangements with non-cancelable commitments
3
%
2
%
2
%
3
%
3
%
Recurring Revenue
91
%
83
%
86
%
84
%
87
%
Up-Front Revenue
9
%
17
%
14
%
16
%
13
%
Total
100
%
100
%
100
%
100
%
100
%
2020
2021
2022
Revenue recognized over time
85
%
85
%
83
%
Revenue from arrangements with non-cancelable commitments
3
%
3
%
2
%
Recurring Revenue
88
%
88
%
85
%
Up-Front Revenue
12
%
12
%
15
%
Total
100
%
100
%
100
%
Trailing Twelve Months Recurring and Up-Front Revenue
Trailing Twelve Months Ended
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Recurring Revenue
88
%
87
%
87
%
86
%
85
%
Up-Front Revenue
12
%
13
%
13
%
14
%
15
%
Total
100
%
100
%
100
%
100
%
100
%
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
4
Cadence Design Systems, Inc.
Revenue Mix by Geography
(% of Total Revenue)
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Americas
43
%
47
%
45
%
45
%
46
%
China
12
%
16
%
13
%
17
%
13
%
Other Asia
21
%
18
%
18
%
17
%
18
%
Europe, Middle East and Africa
18
%
14
%
18
%
16
%
17
%
Japan
6
%
5
%
6
%
5
%
6
%
Total
100
%
100
%
100
%
100
%
100
%
(% of Total Revenue)
2018
2019
2020
2021
2022
Americas
45
%
44
%
42
%
45
%
46
%
China
10
%
10
%
15
%
13
%
15
%
Other Asia
18
%
20
%
18
%
19
%
18
%
Europe, Middle East and Africa
19
%
18
%
18
%
17
%
16
%
Japan
8
%
8
%
7
%
6
%
5
%
Total
100
%
100
%
100
%
100
%
100
%
Revenue Mix by Product Category
(% of Total Revenue)
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Custom IC Design and Simulation
24
%
22
%
23
%
22
%
22
%
Digital IC Design and Signoff
29
%
27
%
27
%
29
%
28
%
Functional Verification
21
%
28
%
24
%
25
%
25
%
IP
14
%
13
%
14
%
12
%
12
%
System Design and Analysis
12
%
10
%
12
%
12
%
13
%
Total
100
%
100
%
100
%
100
%
100
%
(% of Total Revenue)
2018
2019
2020
2021
2022
Custom IC Design and Simulation
26
%
25
%
25
%
23
%
22
%
Digital IC Design and Signoff
29
%
30
%
29
%
29
%
28
%
Functional Verification
24
%
23
%
22
%
24
%
26
%
IP
12
%
13
%
14
%
13
%
12
%
System Design and Analysis
9
%
9
%
10
%
11
%
12
%
Total
100
%
100
%
100
%
100
%
100
%
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
5
Cadence Design Systems, Inc.
3 Year Revenue CAGR by Product Category
(% of Total Revenue)
2018
2019
2020
2021
2022
Custom IC Design and Simulation
7
%
9
%
9
%
8
%
10
%
Digital IC Design and Signoff
9
%
10
%
11
%
11
%
13
%
Functional Verification
10
%
5
%
11
%
11
%
20
%
IP
8
%
16
%
18
%
16
%
15
%
System Design and Analysis
3
%
7
%
13
%
19
%
24
%
Total 3 Year CAGR
8
%
9
%
11
%
12
%
15
%
3 Year Revenue CAGR by Product Category Without 53rd Week Impact*
(% of Total Revenue)
2018
2019
2020
2021
2022
Custom IC Design and Simulation
7
%
9
%
8
%
8
%
10
%
Digital IC Design and Signoff
9
%
10
%
10
%
11
%
13
%
Functional Verification
10
%
5
%
10
%
11
%
20
%
IP
8
%
16
%
18
%
16
%
15
%
System Design and Analysis
3
%
7
%
12
%
19
%
24
%
Total 3 Year CAGR
8
%
9
%
11
%
12
%
15
%
* Fiscal 2020 was a 53-week year and included approximately $45 million revenue impact for the extra week.
Gross Margin
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
GAAP Gross Margin
91.0
%
89.1
%
89.2
%
90.3
%
89.6
%
Non-GAAP Gross Margin
92.7
%
90.7
%
90.6
%
91.5
%
91.1
%
2018
2019
2020
2021
2022
GAAP Gross Margin
87.9
%
88.6
%
88.6
%
89.7
%
89.6
%
Non-GAAP Gross Margin
90.0
%
90.6
%
90.6
%
91.7
%
91.0
%
Total Costs and Expenses
(In Millions)
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Total GAAP Costs and Expenses
$
577
$
583
$
575
$
642
$
689
Total Non-GAAP Costs and Expenses
$
498
$
505
$
494
$
547
$
579
(In Millions)
2018
2019
2020*
2021
2022
Total GAAP Costs and Expenses
$
1,742
$
1,845
$
2,037
$
2,209
$
2,488
Total Non-GAAP Costs and Expenses
$
1,491
$
1,587
$
1,739
$
1,877
$
2,125
* Fiscal 2020 was a 53-week year.
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
6
Cadence Design Systems, Inc.
Operating Margin
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
GAAP Operating Margin
25.3
%
35.4
%
33.0
%
28.9
%
23.5
%
Non-GAAP Operating Margin
35.5
%
44.0
%
42.4
%
39.4
%
35.6
%
2018
2019
2020
2021
2022
GAAP Operating Margin
18.5
%
21.1
%
24.1
%
26.1
%
30.1
%
Non-GAAP Operating Margin
30.2
%
32.1
%
35.2
%
37.2
%
40.3
%
Earnings Per Share
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
GAAP Net Income Per Share
$
0.63
$
0.85
$
0.68
$
0.68
$
0.88
Non-GAAP Net Income Per Share
$
0.82
$
1.17
$
1.08
$
1.06
$
0.96
2018
2019
2020
2021
2022
GAAP Net Income Per Share
$
1.23
$
3.53
$
2.11
$
2.50
$
3.09
Non-GAAP Net Income Per Share
$
1.87
$
2.20
$
2.80
$
3.29
$
4.27
Total DSO
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
DSO
40
37
42
40
49
Balance Sheet and Cash Review
Free Cash Flow
(In Millions)
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Net Cash from Operating Activities
$
216
$
337
$
325
$
317
$
264
Capital Expenditures
15
18
24
44
37
Free Cash Flow
$
201
$
319
$
301
$
273
$
227
(In Millions)
2018
2019
2020
2021
2022
Net Cash from Operating Activities
$
605
$
730
$
905
$
1,101
$
1,242
Capital Expenditures
62
75
95
65
123
Free Cash Flow
$
543
$
655
$
810
$
1,036
$
1,119
Cash and Cash Equivalents
(In Millions)
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Cash and Cash Equivalents
$
1,089
$
1,135
$
1,030
$
1,026
$
882
•Approximately 24 percent of our cash and cash equivalents were in the U.S. at quarter-end.
(In Millions)
2018
2019
2020
2021
2022
Cash and Cash Equivalents
$
533
$
705
$
928
$
1,089
$
882
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
7
Cadence Design Systems, Inc.
Share Repurchase
(In Millions)
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Share Repurchase
$
110
$
250
$
320
$
180
$
300
Number of Shares
0.635
1.566
2.138
0.959
1.939
•Q3 2022 includes 109,365 shares and $30 million equity forward contract from Q2 2022 ASR settled in Q3 2022.
(In Millions)
2018
2019
2020
2021
2022
Share Repurchase
$
250
$
306
$
380
$
612
$
1,050
Number of Shares
5.934
4.841
4.247
4.401
6.602
Employees
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Headcount
9,298
9,411
9,570
9,994
10,228
2018
2019
2020
2021
2022
Headcount
7,499
8,078
8,746
9,298
10,228
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
8
Cadence Design Systems, Inc.
Forward Looking Statements
This CFO Commentary contains forward-looking statements, including Cadence's outlook on future operating results, strategic objectives, business prospects, technology and product developments, industry trends and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) change in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence's products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including that of the semiconductor and electronics industries, government regulations and trade restrictions; (vi) capital expenditure requirements, legislative or regulatory requirements, changes in tax laws, interest rates, currency exchange rate fluctuations, inflation rates and Cadence’s ability to access capital and debt markets; (vii) the acquisition of other companies, businesses or technologies or the failure to successfully integrate and operate them; (viii) events that affect cash flow, liquidity, or reserves, or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (ix) the effects of any litigation, regulatory or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services or properties are subject; and (x) the duration, severity, volatility and effects of the COVID-19 pandemic and containment measures on Cadence, its employees, and its suppliers and customers, which may also have the effect of heightening the other risks described in this paragraph. In addition, the timing and amount of Cadence’s repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.
For a detailed discussion of these and other cautionary statements related to Cadence’s business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, including its most recent reports on Form 10-K and Form 10-Q and future filings.
GAAP to Non-GAAP Reconciliation
Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this CFO Commentary with their most directly comparable GAAP financial results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance. See our earnings press release issued today for further discussion of our non-GAAP financial measures, as well as the reconciliation provided in the Appendix to this CFO Commentary.
Cadence’s management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of the company’s core business operations and therefore provides supplemental information to Cadence’s management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence’s business from the same perspective as Cadence’s management, including forecasting and budgeting.
† 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.
Reconciliation of GAAP Total Expenses to Non-GAAP Total Expenses
(In Millions)
2017
2018
2019
2020*
2021
2022
2023E
GAAP total costs and expenses
$
1,619
$
1,742
$
1,845
$
2,037
$
2,209
$
2,488
$
2,796
Reconciling items to non-GAAP total costs and expenses
** 2021 includes costs related to a voluntary retirement program.
† 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.
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
10
Cadence Design Systems, Inc.
Reconciliation of GAAP Gross Margin as a Percent of Total Revenue to Non-GAAP Gross Margin as a Percent of Total Revenue
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
GAAP gross margin as a percent of total revenue
91.0%
89.1%
89.2%
90.3%
89.6%
Reconciling items to non-GAAP gross margin as a percent of total revenue
Non-GAAP gross margin as a percent of total revenue †
92.7%
90.7%
90.6%
91.5%
91.1%
† 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.
2018
2019
2020
2021
2022
GAAP gross margin as a percent of total revenue
87.9%
88.6%
88.6%
89.7%
89.6%
Reconciling items to non-GAAP gross margin as a percent of total revenue
Non-GAAP gross margin as a percent of total revenue †
90.0%
90.6%
90.6%
91.7%
91.0%
* 2021 includes costs related to a voluntary retirement program.
† 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.
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
11
Cadence Design Systems, Inc.
Reconciliation of GAAP Operating Margin as a Percent of Total Revenue to Non-GAAP Operating Margin as a Percent of Total Revenue
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023E
GAAP operating margin as a percent of total revenue
25%
35%
33%
29%
23%
31% - 32%
Reconciling items to non-GAAP operating margin as a percent of total revenue
Non-GAAP operating margin as a percent of total revenue †
36%
44%
42%
39%
36%
41% - 42%
† 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.
2017
2018
2019
2020
2021
2022
2023E
GAAP operating margin as a percent of total revenue
17%
19%
21%
24%
26%
30%
30.5% - 32.0%
Reconciling items to non-GAAP operating margin as a percent of total revenue
Non-GAAP operating margin as a percent of total revenue †
28%
30%
32%
35%
37%
40%
40.5% - 42.0%
* 2021 includes costs related to a voluntary retirement program.
† 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.
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
12
Cadence Design Systems, Inc.
Reconciliation of GAAP Diluted Net Income Per Share to Non-GAAP Diluted Net Income Per Share
Other income or expense related to investments and non-qualified deferred compensation plan assets *
(0.01)
0.02
0.03
0.02
(0.01)
—
Income tax effect of non-GAAP adjustments
(0.09)
0.02
0.08
0.01
(0.31)
0.01
Diluted net income per share on a non-GAAP basis †
$
0.82
$
1.17
$
1.08
$
1.06
$
0.96
$1.23 - $1.27
Shares used in calculation of diluted net income per share
278,253
276,918
275,172
274,957
272,997
† 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 investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
13
Cadence Design Systems, Inc.
Reconciliation of GAAP Diluted Net Income Per Share to Non-GAAP Diluted Net Income Per Share
Other income or expense related to investments and non-qualified deferred compensation plan assets**
(0.05)
—
(0.01)
—
(0.03)
0.05
—
Income tax benefit related to intercompany transfers of certain intellectual property rights
—
—
(2.05)
—
—
—
—
Income tax related to transition tax
0.24
—
—
—
—
—
—
Income tax related to tax rate change
0.09
—
—
—
—
—
—
Income tax effect of non-GAAP adjustments
(0.35)
(0.25)
(0.19)
(0.38)
(0.37)
(0.19)
0.09
Diluted net income per share on a non-GAAP basis †
$
1.40
$
1.87
$
2.20
$
2.80
$
3.29
$
4.27
$4.90 - $5.00
Shares used in calculation of diluted net income per share
280,221
281,144
280,515
279,641
278,858
275,011
272 - 274M
† 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.
* 2021 includes costs related to a voluntary retirement program.
** Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.
February 13, 2023
Cadence Q4 and Fiscal Year 2022 Financial Results
14
Cadence Design Systems, Inc.
Reconciliation of GAAP Total Other Income and Expense to Non-GAAP Total Other Income and Expense
(In Millions)
FY 2021
FY 2022
FY 2023E
GAAP total other income and expense
$
(10.7)
$
(28.3)
$(21) - $(29)
Reconciling items to non-GAAP total income and expense
Other income or expense related to investments and non-qualified deferred compensation plan assets*
(6.7)
14.1
—
Non-GAAP total other income and expense†
$
(17.4)
$
(14.2)
$(21) - $(29)
† 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 investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.