Item 2.05. Costs Associated with Exit or Disposal Activities.
On November 5, 2008, Cadence Design Systems, Inc. ("Cadence") announced the
commencement of a restructuring program designated to focus Cadence's strategy,
streamline the business and improve operational execution and financial
performance. Upon completion of the restructuring program, Cadence expects to
achieve annual operating expense savings of at least $150 million. The
restructuring program is expected to reduce Cadence's employee base by at least
625 positions, plus a substantial number of contractors and consultants.
Cadence expects to record a restructuring charge of approximately $65 million to
$70 million pre-tax, $48 million of which would be recorded in the third quarter
of 2008. A substantial majority of these restructuring charges are
employee-related costs and substantially all of these charges will result in
future cash expenditures. Because of varying regulations in the jurisdictions
and countries in which Cadence operates, the restructuring program, including
the workforce reduction, is expected to be completed in the second half of
fiscal 2009.
A copy of the press release is attached hereto as Exhibit 99.01 and is
incorporated by reference herein.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
(e) Cadence has determined that no payment shall be made to Cadence's named
executive officers or the other participants in the Cadence Senior Executive
Bonus Plan for performance in fiscal 2008.
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