Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 28, 2013 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | CADENCE DESIGN SYSTEMS INC |
Entity Central Index Key | 813672 |
Document Type | 10-Q |
Document Period End Date | 28-Sep-13 |
Amendment Flag | FALSE |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | -16 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 287,743,419 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $620,403 | $726,357 |
Short-term investments | 96,019 | 100,704 |
Receivables, net of allowances of $144 and $85, respectively | 101,896 | 97,821 |
Inventories | 45,877 | 36,163 |
2015 notes hedges | 292,511 | 303,154 |
Prepaid expenses and other | 117,457 | 127,036 |
Total current assets | 1,274,163 | 1,391,235 |
Property, plant and equipment, net of accumulated depreciation of $564,416 and $635,450, respectively | 241,965 | 244,439 |
Goodwill | 456,267 | 233,266 |
Acquired intangibles, net of accumulated amortization of $128,004 and $104,351, respectively | 323,807 | 184,938 |
Long-term receivables | 3,994 | 7,559 |
Other assets | 257,191 | 225,566 |
Total assets | 2,557,387 | 2,287,003 |
Current Liabilities: | ||
Revolving credit facility | 50,000 | 0 |
Convertible notes | 463,837 | 447,011 |
2015 notes embedded conversion derivative | 292,511 | 303,154 |
Accounts payable and accrued liabilities | 193,445 | 171,318 |
Current portion of deferred revenue | 297,897 | 295,787 |
Total current liabilities | 1,297,690 | 1,217,270 |
Long-Term Liabilities: | ||
Long-term portion of deferred revenue | 48,229 | 50,529 |
Other long-term liabilities | 115,262 | 104,033 |
Total long-term liabilities | 163,491 | 154,562 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Common stock and capital in excess of par value | 1,739,677 | 1,721,556 |
Treasury stock, at cost | -141,344 | -200,786 |
Accumulated deficit | -523,011 | -649,549 |
Accumulated other comprehensive income | 20,884 | 43,950 |
Total stockholders’ equity | 1,096,206 | 915,171 |
Total liabilities and stockholders’ equity | $2,557,387 | $2,287,003 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for receivables | $144 | $85 |
Accumulated depreciation on property, plant and equipment | 564,416 | 635,450 |
Accumulated amortization on acquired intangibles assets | $128,004 | $104,351 |
Condensed_Consolidated_Income_
Condensed Consolidated Income Statements (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Revenue: | ||||
Product and maintenance | $341,601 | $310,118 | $1,007,855 | $893,916 |
Service | 25,046 | 28,415 | 75,539 | 86,923 |
Total revenue | 366,647 | 338,533 | 1,083,394 | 980,839 |
Costs and Expenses: | ||||
Cost of product and maintenance | 32,546 | 34,461 | 90,488 | 94,079 |
Cost of service | 17,190 | 16,809 | 50,682 | 53,254 |
Marketing and sales | 98,094 | 82,461 | 283,773 | 246,674 |
Research and development | 138,078 | 115,078 | 398,557 | 335,703 |
General and administrative | 27,582 | 26,350 | 91,833 | 84,364 |
Amortization of acquired intangibles | 5,141 | 3,876 | 14,259 | 11,305 |
Restructuring and other charges | 86 | 57 | 2,594 | 49 |
Total costs and expenses | 318,717 | 279,092 | 932,186 | 825,428 |
Income from operations | 47,930 | 59,441 | 151,208 | 155,411 |
Interest expense | -9,583 | -8,737 | -28,373 | -25,840 |
Other income (expense), net | 2,535 | -131 | 6,728 | 5,972 |
Income before provision (benefit) for income taxes | 40,882 | 50,573 | 129,563 | 135,543 |
Provision (benefit) for income taxes | 2,382 | -8,011 | 3,025 | 9,469 |
Net income | $38,500 | $58,584 | $126,538 | $126,074 |
Net income per share - basic (in usd per share) | $0.14 | $0.22 | $0.46 | $0.47 |
Net income per share - diluted (in usd per share) | $0.13 | $0.21 | $0.43 | $0.45 |
Weighted average common shares outstanding - basic (in shares) | 278,977 | 271,350 | 277,034 | 269,643 |
Weighted average common shares outstanding - diluted (in shares) | 296,958 | 283,328 | 294,531 | 278,760 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $38,500 | $58,584 | $126,538 | $126,074 |
Other comprehensive income (loss), net of tax effects: | ||||
Foreign currency translation adjustments | -5,442 | 1,025 | -23,308 | -3,808 |
Changes in unrealized holding gains or losses on available-for-sale securities, net of reclassification adjustment for realized gains and losses | 177 | -120 | -206 | -1,141 |
Changes in defined benefit plan liabilities | 66 | 65 | 448 | 120 |
Total other comprehensive income (loss), net of tax effects | -5,199 | 970 | -23,066 | -4,829 |
Comprehensive income | $33,301 | $59,554 | $103,472 | $121,245 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of period | $726,357 | $601,602 |
Cash flows from operating activities: | ||
Net income | 126,538 | 126,074 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 72,681 | 67,171 |
Amortization of debt discount and fees | 19,102 | 17,480 |
Stock-based compensation | 47,487 | 34,285 |
Gain on investments, net | -4,035 | -2,222 |
Deferred income taxes | -6,425 | -14,107 |
Other non-cash items | 2,183 | 3,578 |
Changes in operating assets and liabilities, net of effect of acquired businesses: | ||
Receivables | 2,192 | 24,276 |
Inventories | -10,005 | 6,936 |
Prepaid expenses and other | 26,927 | 1,547 |
Other assets | -46,651 | -3,101 |
Accounts payable and accrued liabilities | 18,277 | -1,714 |
Deferred revenue | -5,474 | -38,230 |
Other long-term liabilities | 5,644 | -1,855 |
Net cash provided by operating activities | 248,441 | 220,118 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | -84,000 | -101,248 |
Proceeds from the sale of available-for-sale securities | 59,014 | 5,936 |
Proceeds from the maturity of available-for-sale securities | 30,506 | 1,500 |
Proceeds from the sale of long-term investments | 6,200 | 44 |
Purchases of property, plant and equipment | -35,950 | -25,932 |
Investment in venture capital partnerships and equity investments | 0 | -250 |
Cash paid in business combinations and asset acquisitions, net of cash acquired | -392,825 | -66,432 |
Net cash used for investing activities | -417,055 | -186,382 |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility | 100,000 | 0 |
Payment on revolving credit facility | -50,000 | 0 |
Payment of convertible notes | -78 | 0 |
Principal payments on receivable financing | -2,526 | -2,907 |
Payment of acquisition-related contingent consideration | 677 | 39 |
Tax effect related to employee stock transactions allocated to equity | 9,494 | 5,790 |
Proceeds from issuance of common stock | 40,691 | 28,755 |
Stock received for payment of employee taxes on vesting of restricted stock | -19,461 | -13,457 |
Net cash provided by financing activities | 77,443 | 18,142 |
Effect of exchange rate changes on cash and cash equivalents | 14,783 | 4,381 |
Increase (decrease) in cash and cash equivalents | -105,954 | 47,497 |
Cash and cash equivalents at end of period | 620,403 | 649,099 |
Supplemental cash flow information: | ||
Cash paid for interest | 6,538 | 5,677 |
Cash paid for taxes, net | 5,281 | 12,481 |
Non-cash investing and financing activities: | ||
Stock options assumed for acquisition | 529 | 0 |
Available-for-sale securities received from customer | $232 | $20 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION |
The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by Cadence Design Systems, Inc., or Cadence, without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission, or the SEC. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, Cadence believes that the disclosures contained in this Quarterly Report on Form 10-Q comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These condensed consolidated financial statements are meant to be, and should be, read in conjunction with the consolidated financial statements and the Notes thereto included in Cadence’s Annual Report on Form 10-K for the fiscal year ended December 29, 2012. In the condensed consolidated income statements for the three and nine months ended September 28, 2013, Cadence combined product and maintenance revenue because product and maintenance revenue is generally recognized from agreements that require customers to purchase both the product and associated maintenance in a bundled offering. Cadence reclassified prior period product and maintenance revenue balances to conform to the current period presentation. Certain other prior period balances have also been reclassified to conform to current period presentation. | |
The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q reflect all adjustments (which include only normal, recurring adjustments and those items discussed in these Notes) that are, in the opinion of management, necessary to state fairly the results of operations, cash flows and financial position for the periods and dates presented. The results for such periods are not necessarily indicative of the results to be expected for the full fiscal year. | |
Preparation of the condensed consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Debt
Debt | 9 Months Ended | |||||||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
DEBT | DEBT | |||||||||||||||||||||||
Cadence’s outstanding debt as of September 28, 2013 and December 29, 2012 was as follows: | ||||||||||||||||||||||||
28-Sep-13 | December 29, 2012 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Principal | Unamortized Discount | Carrying Value | Principal | Unamortized Discount | Carrying Value | |||||||||||||||||||
2015 Notes | $ | 350,000 | $ | (29,275 | ) | $ | 320,725 | $ | 350,000 | $ | (41,181 | ) | $ | 308,819 | ||||||||||
2013 Notes | 144,461 | (1,449 | ) | 143,012 | 144,461 | (6,447 | ) | 138,014 | ||||||||||||||||
2023 Notes | 100 | — | 100 | 178 | — | 178 | ||||||||||||||||||
Revolving credit facility | 50,000 | — | 50,000 | — | — | — | ||||||||||||||||||
Total outstanding debt | $ | 544,561 | $ | (30,724 | ) | $ | 513,837 | $ | 494,639 | $ | (47,628 | ) | $ | 447,011 | ||||||||||
2015 Notes | ||||||||||||||||||||||||
In June 2010, Cadence issued $350.0 million principal amount of 2.625% Cash Convertible Senior Notes Due 2015, or the 2015 Notes. At maturity, the holders of the 2015 Notes will be entitled to receive the principal amount of the 2015 Notes plus accrued interest. The 2015 Notes are convertible into cash prior to maturity upon the occurrence of certain conditions described in the table below. To the extent that the 2015 Notes are convertible prior to maturity and a holder of the 2015 Notes elects to convert its notes prior to maturity, that note holder will be entitled to receive cash equal to the principal amount of the notes plus any additional conversion value as described in the table below under the heading "Conversion feature." | ||||||||||||||||||||||||
Cadence entered into hedge transactions, or the 2015 Notes Hedges, in connection with the issuance of the 2015 Notes. The purpose of the 2015 Notes Hedges was to limit Cadence’s exposure to the additional cash payments above the principal amount of the 2015 Notes that may be due to the holders. As a result of the 2015 Notes Hedges, Cadence’s maximum expected cash exposure upon conversion of the 2015 Notes is the $350.0 million principal balance of the notes. In June 2010, Cadence also sold warrants in separate transactions, or the 2015 Warrants. As a result of the 2015 Warrants, Cadence will experience dilution to its diluted earnings per share if its average closing stock price exceeds $10.78 for any fiscal quarter. To the extent that Cadence’s stock price exceeds $10.78 at expiration of the 2015 Warrants, Cadence will issue shares to net settle the 2015 Warrants. | ||||||||||||||||||||||||
A summary of key terms of the 2015 Notes is as follows: | ||||||||||||||||||||||||
2015 Notes | ||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||
Outstanding principal maturity value – at September 28, 2013 | $350,000 | |||||||||||||||||||||||
Contractual interest rate | 2.63% | |||||||||||||||||||||||
Contractual maturity date | June 1, 2015 | |||||||||||||||||||||||
Initial conversion rate | 132.5205 shares of common stock per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $7.55 per share of Cadence common stock. | |||||||||||||||||||||||
Conversion feature (in addition to principal amount payable in cash) | Cash to the extent Cadence’s stock price exceeds approximately $7.55 per share, calculated based on the applicable conversion rate multiplied by the volume weighted average price of Cadence common stock over a specified period. | |||||||||||||||||||||||
Early conversion conditions (or the Early Conversion Conditions) | • Closing stock price greater than $9.81 for at least 20 of the last 30 trading days in a fiscal quarter (convertible only for subsequent quarter); | |||||||||||||||||||||||
• Specified corporate transactions; or | ||||||||||||||||||||||||
• Note trading price falls below a calculated minimum. | ||||||||||||||||||||||||
Conversion immediately preceding maturity | From March 1, 2015 until the second trading day immediately preceding the maturity date, holders may convert their 2015 Notes at any time into cash as described above under “Conversion feature.” | |||||||||||||||||||||||
Redemption at Cadence’s option prior to maturity | None. | |||||||||||||||||||||||
Fundamental change put right | Upon certain fundamental corporate changes prior to maturity, the 2015 Note holders could require Cadence to repurchase their notes for cash equal to the principal amount of the notes plus accrued interest. | |||||||||||||||||||||||
Make-whole premium | Upon certain fundamental changes prior to maturity, if Cadence’s stock price were between $6.16 and $40.00 per share at that time, the 2015 Note holders would be entitled to an increase to the conversion rate. This is referred to as a “make-whole premium.” | |||||||||||||||||||||||
Financial covenants | None. | |||||||||||||||||||||||
Impact of Early Conversion Conditions on Financial Statements | ||||||||||||||||||||||||
The 2015 Notes are convertible into cash from September 29, 2013 through December 28, 2013 because Cadence’s closing stock price exceeded $9.81 for at least 20 days in the 30-day period prior to September 28, 2013. Accordingly, the net balance of the 2015 Notes of $320.7 million is classified as a current liability on Cadence’s condensed consolidated balance sheet as of September 28, 2013. The classification of the 2015 Notes as current or long-term on the condensed consolidated balance sheet is evaluated at each balance sheet date and may change from time to time depending on whether Cadence’s closing stock price has exceeded $9.81 during the periods specified in the table above under “Early conversion conditions.” In the event that none of the 2015 Notes Early Conversion Conditions have been met in a future fiscal quarter prior to the one-year period immediately preceding the maturity date, Cadence will classify its net liability under the 2015 Notes as a long-term liability on the consolidated balance sheet as of the end of that fiscal quarter. | ||||||||||||||||||||||||
If the note holders elect to convert their 2015 Notes prior to maturity, any unamortized discount and transaction fees will be expensed at the time of conversion. If the entire outstanding principal amount had been converted on September 28, 2013, Cadence would have recorded an expense of $33.3 million associated with the conversion, comprised of $29.3 million of unamortized debt discount and $4.0 million of unamortized transaction fees. | ||||||||||||||||||||||||
As of September 28, 2013, the if-converted value of the 2015 Notes to the note holders of approximately $628.5 million exceeded the principal amount of $350.0 million. The fair value of the 2015 Notes was $639.4 million as of September 28, 2013 and $640.1 million as of December 29, 2012. The 2015 Notes currently trade at a premium to the if-converted value of the notes. As of September 28, 2013, none of the note holders had elected to convert their 2015 Notes. | ||||||||||||||||||||||||
2015 Notes Embedded Conversion Derivative | ||||||||||||||||||||||||
The conversion feature of the 2015 Notes, or the 2015 Notes Embedded Conversion Derivative, requires bifurcation from the 2015 Notes and is accounted for as a derivative liability. The fair value of the 2015 Notes Embedded Conversion Derivative at the time of issuance of the 2015 Notes was $76.6 million and was recorded as original debt discount for purposes of accounting for the debt component of the 2015 Notes. This discount is amortized as interest expense using the effective interest method over the term of the 2015 Notes. The 2015 Notes Embedded Conversion Derivative is carried on the condensed consolidated balance sheet at its estimated fair value. The fair value was $292.5 million as of September 28, 2013 and $303.2 million as of December 29, 2012. | ||||||||||||||||||||||||
2015 Notes Hedges | ||||||||||||||||||||||||
The 2015 Notes Hedges expire on June 1, 2015 and must be settled in cash. The aggregate cost of the 2015 Notes Hedges was $76.6 million. The 2015 Notes Hedges are accounted for as derivative assets and are carried on the condensed consolidated balance sheet at their estimated fair value. The 2015 Note Hedges fair value was $292.5 million as of September 28, 2013 and $303.2 million as of December 29, 2012. The 2015 Notes Embedded Conversion Derivative liability and the 2015 Notes Hedges asset are adjusted to fair value each reporting period and unrealized gains and losses are reflected in the condensed consolidated income statements. The 2015 Notes Embedded Conversion Derivative and the 2015 Notes Hedges are designed to have similar fair values. Accordingly, the changes in the fair values of these instruments offset during the three and nine months ended September 28, 2013 and September 29, 2012 and did not have a net impact on the condensed consolidated income statements for the respective periods. | ||||||||||||||||||||||||
The classification of the 2015 Notes Embedded Conversion Derivative liability and the 2015 Notes Hedges asset as current or long-term on the condensed consolidated balance sheet corresponds with the classification of the 2015 Notes, is evaluated at each balance sheet date and may change from time to time depending on whether the closing stock price Early Conversion Condition is met for a particular quarter. | ||||||||||||||||||||||||
2015 Warrants | ||||||||||||||||||||||||
In June 2010, Cadence sold the 2015 Warrants in separate transactions for the purchase of up to approximately 46.4 million shares of Cadence’s common stock at a strike price of $10.78 per share, for total proceeds of $37.5 million, which was recorded as an increase in stockholders’ equity. The 2015 Warrants expire on various dates from September 2015 through December 2015 and must be settled in net shares of Cadence’s common stock. Therefore, upon expiration of the 2015 Warrants, Cadence will issue shares of common stock to the purchasers of the 2015 Warrants that represent the value by which the price of the common stock exceeds the strike price stipulated within the particular warrant agreement. | ||||||||||||||||||||||||
The effective interest rate and components of interest expense of the 2015 Notes for the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 8.1 | % | 8.1 | % | 8.1 | % | 8.1 | % | ||||||||||||||||
Contractual interest expense | $ | 2,289 | $ | 2,289 | $ | 6,867 | $ | 6,867 | ||||||||||||||||
Amortization of debt discount | $ | 4,045 | $ | 3,737 | $ | 11,906 | $ | 10,968 | ||||||||||||||||
2013 Notes | ||||||||||||||||||||||||
In December 2006, Cadence issued $250.0 million principal amount of 1.500% Convertible Senior Notes Due December 15, 2013, or the 2013 Notes. During 2010, Cadence repurchased a portion of the 2013 Notes. As of September 28, 2013, the remaining principal maturity value of the 2013 Notes was $144.5 million. | ||||||||||||||||||||||||
At maturity, the holders of the 2013 Notes will be entitled to receive the principal amount of the 2013 Notes plus accrued interest. The 2013 Notes are convertible into a combination of cash and shares of Cadence common stock upon the occurrence of certain conditions described in the table below. To the extent that the 2013 Notes are convertible prior to maturity and a holder of the 2013 Notes elects to convert its notes prior to maturity, that note holder will be entitled to receive cash for the principal amount of the notes plus shares for any additional conversion value as described in the table below under the heading “Conversion feature.” As of September 28, 2013, the 2013 Notes were not convertible. | ||||||||||||||||||||||||
Cadence entered into hedge transactions, or the 2013 Notes Hedges, in connection with the issuance of the 2013 Notes. Pursuant to the 2013 Notes Hedges, Cadence has the option to receive the amount of shares that may be owed to the 2013 Notes holders. The purpose of the 2013 Notes Hedges was to limit Cadence’s exposure to the dilution that may result from the issuance of shares upon conversion of the notes. In December 2006, Cadence also sold warrants in separate transactions, or the 2013 Warrants. As a result of the 2013 Warrants, Cadence will experience dilution to its diluted earnings per share to the extent its average closing stock price exceeds $31.50 for any fiscal quarter. If Cadence’s stock price is above $31.50 at the expiration of the 2013 Warrants, Cadence will issue shares to settle the 2013 Warrants. | ||||||||||||||||||||||||
A summary of key terms of the 2013 Notes is as follows: | ||||||||||||||||||||||||
2013 Notes | ||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||
Principal maturity value – at issuance | $250,000 | |||||||||||||||||||||||
Outstanding principal maturity value – at September 28, 2013 | $144,461 | |||||||||||||||||||||||
Contractual interest rate | 1.50% | |||||||||||||||||||||||
Contractual maturity date | 15-Dec-13 | |||||||||||||||||||||||
Equity component - included in common stock - at September 28, 2013 and December 29, 2012 | $63,027 | |||||||||||||||||||||||
Initial conversion rate | 47.2813 shares of common stock per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $21.15 per share of Cadence common stock. | |||||||||||||||||||||||
Conversion feature (in addition to principal amount payable in cash) | Shares to the extent Cadence’s stock price exceeds $21.15 per share, calculated based on the applicable conversion rate multiplied by the volume weighted average price of Cadence common stock over a specified period. | |||||||||||||||||||||||
Early conversion conditions (or the Early Conversion Conditions) | • Closing stock price greater than $27.50 for at least 20 of the last 30 trading days in a calendar quarter (convertible only for subsequent quarter); | |||||||||||||||||||||||
• Specified corporate transactions; or | ||||||||||||||||||||||||
• Note trading price falls below calculated minimum. | ||||||||||||||||||||||||
Conversion immediately preceding maturity | From November 1, 2013, and until the trading day immediately preceding the maturity date, holders may convert their 2013 Notes at any time into cash and Cadence shares as described above under “Conversion feature.” | |||||||||||||||||||||||
Redemption at Cadence’s option prior to maturity | None. | |||||||||||||||||||||||
Fundamental change put right | Upon a fundamental change prior to maturity, the 2013 Note holders could require Cadence to repurchase their notes for cash equal to the principal amount of the notes plus accrued interest. | |||||||||||||||||||||||
Make-whole premium | Upon certain fundamental changes, prior to maturity, if Cadence’s stock price were between $18.00 and $60.00 per share at that time, the 2013 Note holders would be entitled to an increase to the conversion rate. This is referred to as a “make-whole premium.” | |||||||||||||||||||||||
Financial covenants | None. | |||||||||||||||||||||||
Impact of Early Conversion Conditions on Financial Statements | ||||||||||||||||||||||||
As of September 28, 2013, none of the 2013 Notes Early Conversion Conditions had been met. The 2013 Notes mature on December 15, 2013 and the liability component of the 2013 Notes is classified as a current liability as of September 28, 2013. | ||||||||||||||||||||||||
As of September 28, 2013, the if-converted value of the 2013 Notes to the note holders did not exceed the principal amount of the 2013 Notes. The total fair value of the 2013 Notes, including the equity component, was $144.7 million as of September 28, 2013 and was $144.1 million as of December 29, 2012. | ||||||||||||||||||||||||
2013 Notes Hedges | ||||||||||||||||||||||||
The 2013 Notes Hedges expire on December 15, 2013, and must be settled in net shares of Cadence common stock. Therefore, upon expiration of the 2013 Notes Hedges, the counterparties will deliver shares of common stock to Cadence that represent the value, if any, by which the price of the common stock exceeds the price stipulated within the particular hedge agreement. The aggregate cost of the 2013 Notes Hedges was $67.7 million and was recorded as a reduction to stockholders’ equity. In connection with the purchase of a portion of the 2013 Notes during fiscal 2010, Cadence also sold a portion of the 2013 Notes Hedges representing options to purchase approximately 5.0 million shares of Cadence’s common stock. The estimated fair value of the remaining 2013 Notes Hedges was approximately zero as of September 28, 2013 and $0.7 million as of December 29, 2012. Subsequent changes in the fair value of the 2013 Notes Hedges will not be recognized in the condensed consolidated financial statements as long as the instruments remain classified as equity. | ||||||||||||||||||||||||
2013 Warrants | ||||||||||||||||||||||||
In December 2006, Cadence sold the 2013 Warrants in separate transactions, for the purchase of up to 11.8 million shares of Cadence’s common stock at a strike price of $31.50 per share for proceeds of $25.3 million, which was recorded as an increase in stockholders’ equity. In connection with the purchase of some of the 2013 Notes during fiscal 2010, Cadence also purchased some of the 2013 Warrants, reducing the number of shares of Cadence common stock subject to purchase rights by 5.0 million shares. The 2013 Warrants will expire on various dates from February 2014 through April 2014. The 2013 Warrants must be settled in net shares of Cadence’s common stock. Therefore, upon expiration, Cadence will issue shares of common stock to the purchasers of the warrants that represent the value, if any, by which the price of the common stock exceeds the strike price stipulated within the particular warrant agreement. | ||||||||||||||||||||||||
The effective interest rate and components of interest expense of the 2013 Notes for the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 6.4 | % | 6.4 | % | 6.4 | % | 6.4 | % | ||||||||||||||||
Contractual interest expense | $ | 540 | $ | 540 | $ | 1,619 | $ | 1,619 | ||||||||||||||||
Amortization of debt discount | $ | 1,691 | $ | 1,588 | $ | 4,998 | $ | 4,674 | ||||||||||||||||
Zero Coupon Zero Yield Senior Convertible Notes Due 2023 | ||||||||||||||||||||||||
In August 2003, Cadence issued $420.0 million principal amount of its Zero Coupon Zero Yield Senior Convertible Notes Due 2023, or the 2023 Notes. As of September 28, 2013 and December 29, 2012, the remaining balance and the total fair value of the 2023 Notes was $0.1 million and $0.2 million, respectively. | ||||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||
In December 2012, Cadence entered into a five-year senior secured revolving credit facility. The credit facility provides for borrowings up to $250.0 million, with the right to request increased capacity up to an additional $150.0 million upon the receipt of lender commitments, for total maximum borrowings of $400.0 million. | ||||||||||||||||||||||||
Any outstanding loans drawn under the credit facility are due at maturity in December 2017. Outstanding amounts may be paid at any time prior to maturity. The facility is secured by certain accounts receivable and certain equity interests in Cadence’s subsidiaries. | ||||||||||||||||||||||||
Interest accrues based on Cadence’s consolidated leverage ratio. Borrowings may be made at LIBOR plus a margin between 1.25% and 2.00% per annum or at the base rate plus a margin between 0.25% and 1.00% per annum, where in each case the margin is determined by reference to a specified leverage ratio. Interest is payable quarterly. A commitment fee ranging from 0.20% to 0.35% is assessed on the daily average undrawn portion of revolving commitments. | ||||||||||||||||||||||||
The credit facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness, grant liens and make certain investments, make acquisitions, dispose of certain assets and make certain restricted payments, including dividends. In addition, the credit facility contains financial covenants that require Cadence to maintain a leverage ratio not to exceed 3 to 1, and a minimum interest coverage ratio of 3 to 1. | ||||||||||||||||||||||||
As of September 28, 2013 and December 29, 2012, Cadence had outstanding borrowings under the credit facility of $50.0 million and $0, respectively, and was in compliance with all financial covenants. |
Acquisitions_and_AcquisitionRe
Acquisitions and Acquisition-Related Contingent Consideration | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||
ACQUISITIONS AND ACQUISITION-RELATED CONTINGENT CONSIDERATION | ACQUISITIONS AND ACQUISITION-RELATED CONTINGENT CONSIDERATION | |||||||||||||||
Acquisitions | ||||||||||||||||
On April 22, 2013, Cadence acquired Tensilica, Inc., or Tensilica, a privately held provider of configurable dataplane processing units based in Santa Clara, California. The acquired technology enables Cadence to offer customizable design IP solutions to its customers for applications such as mobile wireless, network infrastructure, audio infotainment and home applications. Total cash consideration for Tensilica, after taking into account adjustments for certain costs and cash held by Tensilica at closing of $26.3 million, was $319.3 million. An additional $5.8 million was placed in escrow, is conditioned upon certain former Tensilica shareholders remaining employees of Cadence and is expensed over the designated retention periods of the former Tensilica shareholders now employed by Cadence. Cadence also assumed certain unvested Tensilica options with a fair value of $15.3 million, of which $0.5 million was allocated to purchase consideration. The remaining $14.8 million of assumed options is expensed over the remaining vesting periods of the awards. The Black-Scholes option-pricing model was used to determine the fair value of the assumed options at the acquisition date. The Black-Scholes option-pricing model incorporates various subjective assumptions including expected volatility, expected term and risk-free interest rates. Cadence will also make payments to certain employees that are conditioned upon continued employment and the achievement of certain performance metrics over a three-year period. | ||||||||||||||||
On May 23, 2013, Cadence acquired Cosmic Circuits Private Limited, or Cosmic, a privately held provider of intellectual property used in system-on-chip design and verification based in Bangalore, India. The acquired technology enables Cadence to offer broader analog and mixed signal IP solutions to its customers. Total cash consideration for Cosmic, after taking into account cash held by Cosmic at closing of $1.7 million, was $59.5 million. Cadence will also make payments to certain employees that are conditioned upon continued employment and the achievement of certain performance metrics over a four-year period. Lip-Bu Tan, Cadence’s president, chief executive officer and director, was also a member of the board of directors of Cosmic. In addition, a trust for the benefit of the children of Mr. Tan owned approximately 8.5% of Cosmic, and Mr. Tan and his wife serve as co-trustees of the trust. Mr. Tan recused himself from the discussions and negotiations between and at Cadence and Cosmic throughout the duration of the transaction, including any discussions and negotiations related to the consideration provided to Cosmic. A financial advisor provided a fairness opinion to Cadence in connection with the transaction, and the Board of Directors of Cadence reviewed the transaction and concluded that it was in the best interests of Cadence to proceed with such transaction. | ||||||||||||||||
During the nine months ended September 28, 2013, Cadence completed another business combination and an asset acquisition for cash and allocated the total purchase consideration of $14.4 million to the assets acquired and liabilities assumed based on their respective fair values on the acquisition dates. | ||||||||||||||||
The following table summarizes the fair value of assets acquired and liabilities assumed as part of the acquisitions completed during the nine months ended September 28, 2013: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Tensilica | Cosmic | Other | ||||||||||||||
Cash and cash equivalents | $ | 26,331 | $ | 1,724 | $ | 149 | ||||||||||
Trade receivables | 4,454 | 668 | — | |||||||||||||
Property, plant and equipment | 1,938 | 185 | 91 | |||||||||||||
Other assets | 46,832 | 1,681 | — | |||||||||||||
Acquired intangibles: | ||||||||||||||||
Existing technology | 102,000 | 16,300 | 2,014 | |||||||||||||
Agreements and relationships | 33,000 | 5,100 | 1,667 | |||||||||||||
Tradenames and trademarks | 3,000 | — | — | |||||||||||||
In-process technology | 5,300 | 4,200 | 1,200 | |||||||||||||
Goodwill | 176,461 | 41,911 | 9,587 | |||||||||||||
Total assets acquired | $ | 399,316 | $ | 71,769 | $ | 14,708 | ||||||||||
Deferred revenue | (8,100 | ) | (129 | ) | — | |||||||||||
Other liabilities | (4,959 | ) | (1,982 | ) | (277 | ) | ||||||||||
Long-term deferred tax liabilities | (40,147 | ) | (8,428 | ) | — | |||||||||||
Net assets acquired | $ | 346,110 | $ | 61,230 | $ | 14,431 | ||||||||||
Acquired intangibles with definite lives are amortized on a straight-line basis over the remaining estimated economic life of the underlying products and technologies. The weighted average amortization period for definite-lived intangible assets acquired during the nine months ended September 28, 2013 is approximately 8 years. | ||||||||||||||||
In-process technology consists of projects that had not reached technological feasibility by the date of acquisition and are considered indefinite-lived intangible assets until the completion or abandonment of the project. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. | ||||||||||||||||
The goodwill generated from Cadence's acquisitions during the nine months ended September 28, 2013 is primarily related to expected synergies from combining operations of the acquired companies with Cadence. Cadence expects that approximately $9.6 million of goodwill related to the acquisitions completed during the nine months ended September 28, 2013 will be deductible for tax purposes. | ||||||||||||||||
Results of operations and the estimated fair value of acquired assets and assumed liabilities are recorded in the condensed consolidated financial statements from the date of acquisition. The fair values of acquired intangible assets, including in-process technology, and assumed liabilities were determined using significant inputs that are not observable in the market. For an additional description of these fair value calculations, see Note 7 in the notes to condensed consolidated financial statements. | ||||||||||||||||
The financial information in the table below summarizes the combined results of operations of Cadence and Tensilica, on a pro forma basis, as though the companies had been combined as of the beginning of fiscal 2012. Pro forma results of operations for the other acquisitions completed during the three and nine months ended September 28, 2013 have not been presented because the effects of these acquisitions, individually and in the aggregate, would not have been material to Cadence's financial results. The pro forma financial information for Tensilica is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on December 31, 2011 or of results that may occur in the future. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Total revenue | $ | 368,694 | $ | 346,999 | $ | 1,101,689 | $ | 1,003,170 | ||||||||
Net income | $ | 43,679 | $ | 47,180 | $ | 131,753 | $ | 85,280 | ||||||||
Acquisition-related costs were zero and $8.2 million for the three and nine months ended September 28, 2013, respectively, and $0.2 million and $1.3 million for the three and nine months ended September 29, 2012, respectively. These costs consist of professional fees and administrative costs and were expensed as incurred in Cadence's condensed consolidated income statements. | ||||||||||||||||
Acquisition-related Contingent Consideration | ||||||||||||||||
One of the fiscal 2011 acquisitions includes contingent consideration payments based on certain future financial measures associated with the acquired technology. This contingent consideration arrangement requires payments of up to $5.0 million if these measures are met during the three-year period subsequent to October 1, 2011. The fair value of the contingent consideration arrangement recorded on the date of the acquisition was $3.5 million. The fair value of the remaining contingent consideration as of September 28, 2013 was $3.8 million. | ||||||||||||||||
Cadence may be obligated to make cash payments in connection with its business combinations and asset acquisitions completed in prior fiscal years, subject to the satisfaction of certain financial measures. If performance is such that these payments are fully achieved, Cadence may be obligated to pay up to an aggregate of $14.3 million over the next 31 months. Of the $14.3 million, up to $8.7 million would be recorded as operating expenses in the condensed consolidated income statements. |
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangibles | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
GOODWILL AND ACQUIRED INTANGIBLES | GOODWILL AND ACQUIRED INTANGIBLES | |||||||||||||||
Goodwill | ||||||||||||||||
The changes in the carrying amount of goodwill during the nine months ended September 28, 2013 were as follows: | ||||||||||||||||
Gross Carrying | ||||||||||||||||
Amount | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 29, 2012 | $ | 233,266 | ||||||||||||||
Goodwill resulting from acquisitions | 227,959 | |||||||||||||||
Effect of foreign currency translation | (4,958 | ) | ||||||||||||||
Balance as of September 28, 2013 | $ | 456,267 | ||||||||||||||
Acquired Intangibles, Net | ||||||||||||||||
Acquired intangibles as of September 28, 2013 were as follows, excluding intangibles that were fully amortized as of December 29, 2012: | ||||||||||||||||
Gross Carrying | Accumulated | Acquired | ||||||||||||||
Amount | Amortization | Intangibles, Net | ||||||||||||||
(In thousands) | ||||||||||||||||
Existing technology | $ | 236,774 | $ | (46,170 | ) | $ | 190,604 | |||||||||
Agreements and relationships | 171,422 | (49,199 | ) | 122,223 | ||||||||||||
Distribution rights | 30,100 | (30,100 | ) | — | ||||||||||||
Tradenames, trademarks and patents | 9,519 | (2,535 | ) | 6,984 | ||||||||||||
In-process technology | 3,996 | — | 3,996 | |||||||||||||
Total acquired intangibles | $ | 451,811 | $ | (128,004 | ) | $ | 323,807 | |||||||||
In-process technology as of September 28, 2013 consists of projects acquired during the nine months ended September 28, 2013, and if completed, will contribute to Cadence's ability to offer additional IP solutions to its customers. These projects are expected to be complete in 6 to 12 months. During the nine months ended September 28, 2013, Cadence completed certain projects previously included in in-process technology and transferred approximately $5.5 million to existing technology. | ||||||||||||||||
Acquired intangibles as of December 29, 2012 were as follows, excluding intangibles that were fully amortized as of December 31, 2011: | ||||||||||||||||
Gross Carrying | Accumulated | Acquired | ||||||||||||||
Amount | Amortization | Intangibles, Net | ||||||||||||||
(In thousands) | ||||||||||||||||
Existing technology | $ | 112,940 | $ | (30,171 | ) | $ | 82,769 | |||||||||
Agreements and relationships | 133,764 | (37,769 | ) | 95,995 | ||||||||||||
Distribution rights | 30,100 | (28,595 | ) | 1,505 | ||||||||||||
Tradenames, trademarks and patents | 12,485 | (7,816 | ) | 4,669 | ||||||||||||
Total acquired intangibles | $ | 289,289 | $ | (104,351 | ) | $ | 184,938 | |||||||||
Amortization expense for intangible assets from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization of acquired intangibles for the three and nine months ended September 28, 2013 and September 29, 2012 was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of product and maintenance | $ | 7,191 | $ | 3,874 | $ | 16,758 | $ | 9,664 | ||||||||
Amortization of acquired intangibles | 5,141 | 3,876 | 14,259 | 11,305 | ||||||||||||
Total amortization of acquired intangibles | $ | 12,332 | $ | 7,750 | $ | 31,017 | $ | 20,969 | ||||||||
Estimated amortization expense for the following five fiscal years and thereafter is as follows: | ||||||||||||||||
(In thousands) | ||||||||||||||||
2013 – remaining period | $ | 12,446 | ||||||||||||||
2014 | 49,929 | |||||||||||||||
2015 | 49,378 | |||||||||||||||
2016 | 43,666 | |||||||||||||||
2017 | 40,060 | |||||||||||||||
Thereafter | 128,328 | |||||||||||||||
Total estimated amortization expense | $ | 323,807 | ||||||||||||||
Income_Taxes_Income_Taxes
Income Taxes Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||||||
During the nine months ended September 28, 2013, Cadence recognized a provision for income taxes of approximately $3.0 million primarily because of: | ||||||||||||||||
• | Federal, state and foreign tax expense on anticipated fiscal 2013 income; and | |||||||||||||||
• | Tax expense related to integrating the acquisitions; | |||||||||||||||
which were partially offset by: | ||||||||||||||||
• | A tax benefit of $33.7 million from the release of an uncertain tax position recorded in a previous business combination and the release of related interest and penalties; and | |||||||||||||||
• | A tax benefit of $5.9 million for the fiscal 2012 federal research tax credit that was retroactively enacted. | |||||||||||||||
Unrecognized Tax Benefits | ||||||||||||||||
During the nine months ended September 28, 2013, Cadence determined that the State of California Franchise Tax Board examination of the 2004 through 2006 tax years was effectively settled and, separately, released an unrecognized tax benefit recorded in a prior business combination. | ||||||||||||||||
The changes in Cadence's gross amount of unrecognized tax benefits during the nine months ended September 28, 2013 are as follows: | ||||||||||||||||
Unrecognized tax benefits | ||||||||||||||||
(In thousands) | ||||||||||||||||
Unrecognized tax benefits as of December 29, 2012 | $ | 92,378 | ||||||||||||||
Gross amount of the increases in unrecognized tax benefits of tax positions taken during a prior year | 6,476 | |||||||||||||||
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 13,088 | |||||||||||||||
Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes | (13,821 | ) | ||||||||||||||
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | (12,044 | ) | ||||||||||||||
Effect of foreign currency translation | 497 | |||||||||||||||
Unrecognized tax benefits as of September 28, 2013 | $ | 86,574 | ||||||||||||||
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate as of September 28, 2013 | $ | 49,914 | ||||||||||||||
The total amounts of interest and penalties recognized in the condensed consolidated income statements as provision (benefit) for income taxes for the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Interest | $ | 728 | $ | 820 | $ | (12,731 | ) | $ | 2,584 | |||||||
Penalties | (708 | ) | (36 | ) | (7,666 | ) | (1,012 | ) | ||||||||
The total amounts of gross accrued interest and penalties recognized in the condensed consolidated balance sheets as of September 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Interest | $ | 52 | $ | 24,427 | ||||||||||||
Penalties | 1,255 | 8,953 | ||||||||||||||
Receivables_and_Allowances_for
Receivables and Allowances for Doubtful Accounts | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Receivables [Abstract] | ||||||||
RECEIVABLES AND ALLOWANCES FOR DOUBTFUL ACCOUNTS | RECEIVABLES AND ALLOWANCES FOR DOUBTFUL ACCOUNTS | |||||||
Cadence’s current and long-term receivables balances as of September 28, 2013 and December 29, 2012 were as follows: | ||||||||
As of | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Accounts receivable | $ | 61,906 | $ | 67,259 | ||||
Installment contract receivables, short-term | 40,134 | 30,647 | ||||||
Long-term receivables | 3,994 | 7,559 | ||||||
Total receivables | $ | 106,034 | $ | 105,465 | ||||
Less allowance for doubtful accounts | (144 | ) | (85 | ) | ||||
Total receivables, net | $ | 105,890 | $ | 105,380 | ||||
Cadence’s customers are primarily concentrated within the semiconductor, electronics systems and consumer electronics industries. As of September 28, 2013, one customer accounted for approximately 13% of Cadence’s total receivables. As of December 29, 2012, no single customer accounted for 10% of Cadence's total receivables. As of September 28, 2013, approximately 53% of Cadence’s total receivables were attributable to the ten customers with the largest balances of total receivables. As of December 29, 2012, approximately 47% of Cadence’s total receivables were attributable to the ten customers with the largest balances of total receivables. |
Fair_Value
Fair Value | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
FAIR VALUE | FAIR VALUE | |||||||||||||||
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy: | ||||||||||||||||
• | Level 1 – Quoted prices for identical instruments in active markets; | |||||||||||||||
• | Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |||||||||||||||
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||||
This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three and nine months ended September 28, 2013. | ||||||||||||||||
On a quarterly basis, Cadence measures at fair value certain financial assets and liabilities. The fair value of financial assets and liabilities was determined using the following levels of inputs as of September 28, 2013 and December 29, 2012: | ||||||||||||||||
Fair Value Measurements as of September 28, 2013: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 475,563 | $ | 475,563 | $ | — | $ | — | ||||||||
Bank certificates of deposit | 1,000 | — | 1,000 | — | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | 36,878 | — | 36,878 | — | ||||||||||||
Bank certificates of deposit | 18,313 | — | 18,313 | — | ||||||||||||
United States Treasury securities | 24,738 | 24,738 | — | — | ||||||||||||
United States government agency securities | 11,227 | 11,227 | — | — | ||||||||||||
Commercial paper | 2,797 | — | 2,797 | — | ||||||||||||
Marketable equity securities | 2,066 | 2,066 | — | — | ||||||||||||
Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust | 22,339 | 22,339 | — | — | ||||||||||||
2015 Notes Hedges | 292,511 | — | 292,511 | — | ||||||||||||
Foreign currency exchange contracts | 1,662 | — | 1,662 | — | ||||||||||||
Total Assets | $ | 889,094 | $ | 535,933 | $ | 353,161 | $ | — | ||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Acquisition-related contingent consideration | $ | 3,835 | $ | — | $ | — | $ | 3,835 | ||||||||
2015 Notes Embedded Conversion Derivative | 292,511 | — | 292,511 | — | ||||||||||||
Total Liabilities | $ | 296,346 | $ | — | $ | 292,511 | $ | 3,835 | ||||||||
Fair Value Measurements as of December 29, 2012: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 566,334 | $ | 566,334 | $ | — | $ | — | ||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | 31,359 | — | 31,359 | — | ||||||||||||
Bank certificates of deposit | 27,826 | — | 27,826 | — | ||||||||||||
United States Treasury securities | 23,239 | 23,239 | — | — | ||||||||||||
United States government agency securities | 10,258 | 10,258 | — | — | ||||||||||||
Commercial paper | 5,783 | — | 5,783 | — | ||||||||||||
Marketable equity securities | 2,239 | 2,239 | — | — | ||||||||||||
Trading securities held in NQDC trust | 24,329 | 24,329 | — | — | ||||||||||||
2015 Notes Hedges | 303,154 | — | 303,154 | — | ||||||||||||
Foreign currency exchange contracts | 1,737 | — | 1,737 | — | ||||||||||||
Total Assets | $ | 996,258 | $ | 626,399 | $ | 369,859 | $ | — | ||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Acquisition-related contingent consideration | $ | 4,218 | $ | — | $ | — | $ | 4,218 | ||||||||
2015 Notes Embedded Conversion Derivative | 303,154 | — | 303,154 | — | ||||||||||||
Total Liabilities | $ | 307,372 | $ | — | $ | 303,154 | $ | 4,218 | ||||||||
Level 1 Measurements | ||||||||||||||||
Cadence’s cash equivalents held in money market funds, available-for-sale United States Treasury securities, United States government agency securities, marketable equity securities and the trading securities held in Cadence’s NQDC trust are measured at fair value using level 1 inputs. | ||||||||||||||||
Level 2 Measurements | ||||||||||||||||
The 2015 Notes Hedges and the 2015 Notes Embedded Conversion Derivative are measured at fair value using level 1 and level 2 inputs. These instruments are not actively traded and are valued using an option pricing model that uses observable market data for all inputs, such as implied volatility of Cadence’s common stock, risk-free interest rate and other factors. | ||||||||||||||||
Cadence’s available-for-sale corporate debt securities, bank certificates of deposit and commercial paper are measured at fair value using level 2 inputs. Cadence obtains the fair values of its level 2 available-for-sale securities from a professional pricing service and validates the fair values by assessing the pricing methods and inputs and by comparing the fair values to another independent source. | ||||||||||||||||
The fair values of Cadence’s 2013 Notes and 2015 Notes, which differ from their carrying values, are influenced by interest rates and Cadence’s stock price and stock price volatility and are determined by prices for the 2013 Notes and 2015 Notes observed in market trading, which are level 2 inputs. | ||||||||||||||||
Cadence’s foreign currency exchange contracts are measured at fair value using observable foreign currency exchange rates. | ||||||||||||||||
Level 3 Measurements | ||||||||||||||||
The liabilities included in level 3 represent the fair value of contingent consideration associated with certain of Cadence’s 2011 and 2010 acquisitions. Cadence makes estimates regarding the fair value of contingent consideration liabilities on the acquisition date and at the end of each reporting period until the contingency is resolved. The fair value of these arrangements is determined by calculating the net present value of the expected payments using significant inputs that are not observable in the market, including revenue projections and discount rates consistent with the level of risk of achievement. The fair value of these contingent consideration arrangements is affected most significantly by the changes in the revenue projections, but is also impacted by the discount rate used to adjust the outcomes to their present values. If the revenue projections increase or decrease, the fair value of the contingent consideration will increase or decrease accordingly, in amounts that will vary based on the timing of the projected revenues, the timing of the expected payments and the discount rate used to calculate the present value of the expected payments. Cadence used discount rates ranging from 11% to 16% to value its contingent consideration liabilities as of September 28, 2013 and December 29, 2012. Cadence believes that its estimates and assumptions are reasonable, but significant judgment is involved. | ||||||||||||||||
Changes in the fair value of contingent consideration liabilities subsequent to the acquisition are recorded in general and administrative expense in the condensed consolidated income statements. | ||||||||||||||||
The following table summarizes the level 3 activity for the nine months ended September 28, 2013: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 29, 2012 | $ | 4,218 | ||||||||||||||
Payments | (835 | ) | ||||||||||||||
Adjustments | 452 | |||||||||||||||
Balance as of September 28, 2013 | $ | 3,835 | ||||||||||||||
Cadence acquired intangible assets, including in-process technology, of $173.8 million in connection with its acquisitions during the nine months ended September 28, 2013. The fair value of the intangible assets acquired was determined using the income approach and using level 3 inputs. Key assumptions include the level and timing of expected future cash flows, conditions and demands specific to IP solutions, discount rates consistent with the level of risk and the economy in general. The fair value of these intangible assets was affected most significantly by the projected income associated with the intangible assets and the anticipated timing of the projected income, but was also impacted by the discount rate used to adjust the outcomes to their present values. If the income projections had increased or decreased, the fair value of the intangible assets would have increased or decreased accordingly in amounts that would have varied based on the anticipated timing of the projected income and the discount rate used to calculate the present value of the expected income. Cadence used discount rates ranging from 10% to 15% to value the intangible assets acquired during the nine months ended September 29, 2013. | ||||||||||||||||
As part of its acquisitions, Cadence also assumed obligations related to deferred revenue of $8.2 million, which was estimated using the cost build-up approach. The cost build-up approach determines fair value using estimates of the costs required to provide the contracted deliverables plus an assumed profit between 10% and 25%. The total costs including the assumed profit were adjusted to present value using a discount rate of approximately 3%. The resulting fair value approximates the amount that Cadence would be required to pay a third party to assume the obligation. The fair value of the deferred revenue obligation was affected most significantly by the estimated costs required to support the obligation, but was also affected by the assumed profit and the discount rate. | ||||||||||||||||
Cadence believes that its estimates and assumptions related to the fair value of its acquired intangible assets and deferred revenue obligations are reasonable, but significant judgment is involved. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Cash, Cash Equivalents and Investments [Abstract] | ||||||||||||||||
CASH, CASH EQUIVALENTS AND INVESTMENTS | CASH, CASH EQUIVALENTS AND INVESTMENTS | |||||||||||||||
Cadence’s cash, cash equivalents and short-term investments at fair value as of September 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 620,403 | $ | 726,357 | ||||||||||||
Short-term investments | 96,019 | 100,704 | ||||||||||||||
Cash, cash equivalents and short-term investments | $ | 716,422 | $ | 827,061 | ||||||||||||
Cash and Cash Equivalents | ||||||||||||||||
Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents. The amortized cost of Cadence’s cash equivalents approximates fair value. The following table summarizes Cadence’s cash and cash equivalents at fair value as of September 28, 2013 and December 29, 2012: | ||||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and interest bearing deposits | $ | 143,840 | $ | 160,023 | ||||||||||||
Money market funds | 475,563 | 566,334 | ||||||||||||||
Bank certificates of deposit | 1,000 | — | ||||||||||||||
Total cash and cash equivalents | $ | 620,403 | $ | 726,357 | ||||||||||||
Short-Term Investments | ||||||||||||||||
The following tables summarize Cadence’s short-term investments as of September 28, 2013 and December 29, 2012: | ||||||||||||||||
As of September 28, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 36,859 | $ | 33 | $ | (14 | ) | $ | 36,878 | |||||||
Bank certificates of deposit | 18,300 | 13 | — | 18,313 | ||||||||||||
United States Treasury securities | 24,705 | 34 | (1 | ) | 24,738 | |||||||||||
United States government agency securities | 11,215 | 13 | (1 | ) | 11,227 | |||||||||||
Commercial paper | 2,794 | 3 | — | 2,797 | ||||||||||||
Marketable debt securities | 93,873 | 96 | (16 | ) | 93,953 | |||||||||||
Marketable equity securities | 1,817 | 249 | — | 2,066 | ||||||||||||
Total short-term investments | $ | 95,690 | $ | 345 | $ | (16 | ) | $ | 96,019 | |||||||
As of December 29, 2012 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 31,313 | $ | 57 | $ | (11 | ) | $ | 31,359 | |||||||
Bank certificates of deposit | 27,805 | 21 | — | 27,826 | ||||||||||||
United States Treasury securities | 23,213 | 26 | — | 23,239 | ||||||||||||
United States government agency securities | 10,245 | 13 | — | 10,258 | ||||||||||||
Commercial paper | 5,777 | 6 | — | 5,783 | ||||||||||||
Marketable debt securities | 98,353 | 123 | (11 | ) | 98,465 | |||||||||||
Marketable equity securities | 1,817 | 422 | — | 2,239 | ||||||||||||
Total short-term investments | $ | 100,170 | $ | 545 | $ | (11 | ) | $ | 100,704 | |||||||
As of September 28, 2013, no securities held by Cadence have been in an unrealized loss position for greater than six months. | ||||||||||||||||
The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of September 28, 2013, by contractual maturity, are shown in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. | ||||||||||||||||
Amortized | Fair | |||||||||||||||
Cost | Value | |||||||||||||||
(In thousands) | ||||||||||||||||
Due in less than one year | $ | 48,949 | $ | 48,983 | ||||||||||||
Due in one to three years | 44,924 | 44,970 | ||||||||||||||
Total marketable debt securities included in short-term investments | $ | 93,873 | $ | 93,953 | ||||||||||||
Net realized gains from the sale of marketable debt and equity securities during the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Gains on sale of marketable debt and equity securities, net | $ | 1,363 | $ | 8 | $ | 1,339 | $ | 123 | ||||||||
Non-Marketable Investments | ||||||||||||||||
Cadence’s non-marketable investments generally consist of voting preferred stock or convertible debt of privately held companies and are included in other assets on Cadence’s condensed consolidated balance sheets. If Cadence determines that it has the ability to exercise significant influence over the issuer, which may include considering whether the investments are in-substance common stock, the investment is accounted for using the equity method. | ||||||||||||||||
Cadence’s non-marketable investments as of September 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cost method | $ | 3,038 | $ | 3,038 | ||||||||||||
Equity method | 3,648 | 4,249 | ||||||||||||||
Total non-marketable investments | $ | 6,686 | $ | 7,287 | ||||||||||||
Net realized gains on the sale of non-marketable investments during the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Gains on sale of non-marketable investments, net | $ | 6 | $ | — | $ | 1,196 | $ | — | ||||||||
Net_Income_per_Share
Net Income per Share | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
NET INCOME PER SHARE | NET INCOME PER SHARE | |||||||||||||||
Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting. | ||||||||||||||||
The calculations for basic and diluted net income per share for the three and nine months ended September 28, 2013 and September 29, 2012 are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net income | $ | 38,500 | $ | 58,584 | $ | 126,538 | $ | 126,074 | ||||||||
Weighted average common shares used to calculate basic net income per share | 278,977 | 271,350 | 277,034 | 269,643 | ||||||||||||
2023 Notes | 9 | 11 | 11 | 11 | ||||||||||||
2015 Warrants | 11,587 | 6,286 | 11,042 | 3,148 | ||||||||||||
Share-based awards | 6,385 | 5,681 | 6,444 | 5,958 | ||||||||||||
Weighted average common shares used to calculate diluted net income per share | 296,958 | 283,328 | 294,531 | 278,760 | ||||||||||||
Net income per share - basic | $ | 0.14 | $ | 0.22 | $ | 0.46 | $ | 0.47 | ||||||||
Net income per share - diluted | $ | 0.13 | $ | 0.21 | $ | 0.43 | $ | 0.45 | ||||||||
The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 28, 2013, and September 29, 2012, that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
2013 Warrants | 6,830 | 6,830 | 6,830 | 6,830 | ||||||||||||
Options to purchase shares of common stock | 5,639 | 10,003 | 6,048 | 12,767 | ||||||||||||
Non-vested shares of restricted stock | 3,280 | 10 | 1,099 | 82 | ||||||||||||
Total potential common shares excluded | 15,749 | 16,843 | 13,977 | 19,679 | ||||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOME | |||||||
Cadence’s other comprehensive income is comprised of foreign currency translation gains and losses, changes in defined benefit plan liabilities, and changes in unrealized holding gains and losses on available-for-sale securities net of reclassifications for realized gains and losses as presented in Cadence’s condensed consolidated statements of comprehensive income. | ||||||||
Accumulated other comprehensive income was comprised of the following as of September 28, 2013, and December 29, 2012: | ||||||||
As of | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Foreign currency translation gain | $ | 25,345 | $ | 48,653 | ||||
Changes in defined benefit plan liabilities | (4,781 | ) | (5,229 | ) | ||||
Unrealized holding gains on available-for-sale securities | 320 | 526 | ||||||
Total accumulated other comprehensive income | $ | 20,884 | $ | 43,950 | ||||
For the three and nine months ended September 28, 2013 and September 29, 2012 there were no significant amounts reclassified from accumulated other comprehensive income to net income. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES |
Legal Proceedings | |
From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and lawsuits related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, distribution arrangements and employee relations matters. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates. | |
Other Contingencies | |
Cadence provides its customers with a warranty on sales of hardware products, generally for a 90-day period. Cadence did not incur any significant costs related to warranty obligations during the three and nine months ended September 28, 2013 or September 29, 2012. | |
Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s intellectual property. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. The indemnification is generally limited to the amount paid by the customer. Cadence did not incur any significant losses from indemnification claims during the three and nine months ended September 28, 2013 or September 29, 2012. |
Other_Income_Net
Other Income, Net | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||
OTHER INCOME, NET | OTHER INCOME, NET | |||||||||||||||
Cadence’s other income, net for the three and nine months ended September 28, 2013 and September 29, 2012 was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Interest income | $ | 366 | $ | 399 | $ | 1,275 | $ | 1,024 | ||||||||
Gains on sale of marketable debt and equity securities, net | 1,363 | 8 | 1,339 | 123 | ||||||||||||
Gains on sale of non-marketable investments, net | 6 | — | 1,196 | — | ||||||||||||
Gains (losses) on securities in NQDC trust | 206 | (839 | ) | 2,057 | 3,237 | |||||||||||
Gains on foreign exchange | 489 | 1,376 | 1,476 | 2,546 | ||||||||||||
Write-down of non-marketable investments | — | (1,081 | ) | (464 | ) | (1,103 | ) | |||||||||
Other income (expense), net | 105 | 6 | (151 | ) | 145 | |||||||||||
Total other income (expense), net | $ | 2,535 | $ | (131 | ) | $ | 6,728 | $ | 5,972 | |||||||
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING | |||||||||||||||
Segment reporting is based on the “management approach,” following the method that management organizes the company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. Cadence’s chief operating decision maker is its President and Chief Executive Officer, or CEO, who reviews Cadence’s consolidated results as one reportable segment. In making operating decisions, the CEO primarily considers consolidated financial information, accompanied by disaggregated information about revenues by geographic region. | ||||||||||||||||
Outside the United States, Cadence markets and supports its products and services primarily through its subsidiaries. Revenue is attributed to geography based upon the country in which the product is used or services are delivered. Long-lived assets are attributed to geography based on the country where the assets are located. | ||||||||||||||||
The following table presents a summary of revenue by geography for the three and nine months ended September 28, 2013 and September 29, 2012: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Americas: | ||||||||||||||||
United States | $ | 168,125 | $ | 141,509 | $ | 476,525 | $ | 414,888 | ||||||||
Other Americas | 7,212 | 4,733 | 17,393 | 18,659 | ||||||||||||
Total Americas | 175,337 | 146,242 | 493,918 | 433,547 | ||||||||||||
Europe, Middle East and Africa | 72,376 | 66,392 | 229,053 | 191,097 | ||||||||||||
Japan | 45,853 | 58,757 | 144,794 | 168,856 | ||||||||||||
Asia | 73,081 | 67,142 | 215,629 | 187,339 | ||||||||||||
Total | $ | 366,647 | $ | 338,533 | $ | 1,083,394 | $ | 980,839 | ||||||||
The following table presents a summary of long-lived assets by geography as of September 28, 2013 and December 29, 2012: | ||||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Americas: | ||||||||||||||||
United States | $ | 209,783 | $ | 214,711 | ||||||||||||
Other Americas | 330 | 185 | ||||||||||||||
Total Americas | 210,113 | 214,896 | ||||||||||||||
Europe, Middle East and Africa | 6,354 | 5,410 | ||||||||||||||
Japan | 974 | 1,649 | ||||||||||||||
Asia | 24,524 | 22,484 | ||||||||||||||
Total | $ | 241,965 | $ | 244,439 | ||||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended | |
Sep. 28, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | Preparation of the condensed consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
In-Process Technology | In-process technology consists of projects that had not reached technological feasibility by the date of acquisition and are considered indefinite-lived intangible assets until the completion or abandonment of the project. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. | |
Fair Value of Financial Instruments | Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy: | |
• | Level 1 – Quoted prices for identical instruments in active markets; | |
• | Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |
This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three and nine months ended September 28, 2013. | ||
Contingencies | At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates. | |
Non-Marketable Investments | Cadence’s non-marketable investments generally consist of voting preferred stock or convertible debt of privately held companies and are included in other assets on Cadence’s condensed consolidated balance sheets. If Cadence determines that it has the ability to exercise significant influence over the issuer, which may include considering whether the investments are in-substance common stock, the investment is accounted for using the equity method. |
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
Summary of debt outstanding | Cadence’s outstanding debt as of September 28, 2013 and December 29, 2012 was as follows: | |||||||||||||||||||||||
28-Sep-13 | December 29, 2012 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Principal | Unamortized Discount | Carrying Value | Principal | Unamortized Discount | Carrying Value | |||||||||||||||||||
2015 Notes | $ | 350,000 | $ | (29,275 | ) | $ | 320,725 | $ | 350,000 | $ | (41,181 | ) | $ | 308,819 | ||||||||||
2013 Notes | 144,461 | (1,449 | ) | 143,012 | 144,461 | (6,447 | ) | 138,014 | ||||||||||||||||
2023 Notes | 100 | — | 100 | 178 | — | 178 | ||||||||||||||||||
Revolving credit facility | 50,000 | — | 50,000 | — | — | — | ||||||||||||||||||
Total outstanding debt | $ | 544,561 | $ | (30,724 | ) | $ | 513,837 | $ | 494,639 | $ | (47,628 | ) | $ | 447,011 | ||||||||||
Summary of key terms of 2015 notes and 2013 notes | A summary of key terms of the 2015 Notes is as follows: | |||||||||||||||||||||||
2015 Notes | ||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||
Outstanding principal maturity value – at September 28, 2013 | $350,000 | |||||||||||||||||||||||
Contractual interest rate | 2.63% | |||||||||||||||||||||||
Contractual maturity date | June 1, 2015 | |||||||||||||||||||||||
Initial conversion rate | 132.5205 shares of common stock per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $7.55 per share of Cadence common stock. | |||||||||||||||||||||||
Conversion feature (in addition to principal amount payable in cash) | Cash to the extent Cadence’s stock price exceeds approximately $7.55 per share, calculated based on the applicable conversion rate multiplied by the volume weighted average price of Cadence common stock over a specified period. | |||||||||||||||||||||||
Early conversion conditions (or the Early Conversion Conditions) | • Closing stock price greater than $9.81 for at least 20 of the last 30 trading days in a fiscal quarter (convertible only for subsequent quarter); | |||||||||||||||||||||||
• Specified corporate transactions; or | ||||||||||||||||||||||||
• Note trading price falls below a calculated minimum. | ||||||||||||||||||||||||
Conversion immediately preceding maturity | From March 1, 2015 until the second trading day immediately preceding the maturity date, holders may convert their 2015 Notes at any time into cash as described above under “Conversion feature.” | |||||||||||||||||||||||
Redemption at Cadence’s option prior to maturity | None. | |||||||||||||||||||||||
Fundamental change put right | Upon certain fundamental corporate changes prior to maturity, the 2015 Note holders could require Cadence to repurchase their notes for cash equal to the principal amount of the notes plus accrued interest. | |||||||||||||||||||||||
Make-whole premium | Upon certain fundamental changes prior to maturity, if Cadence’s stock price were between $6.16 and $40.00 per share at that time, the 2015 Note holders would be entitled to an increase to the conversion rate. This is referred to as a “make-whole premium.” | |||||||||||||||||||||||
Financial covenants | None. | |||||||||||||||||||||||
A summary of key terms of the 2013 Notes is as follows: | ||||||||||||||||||||||||
2013 Notes | ||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||
Principal maturity value – at issuance | $250,000 | |||||||||||||||||||||||
Outstanding principal maturity value – at September 28, 2013 | $144,461 | |||||||||||||||||||||||
Contractual interest rate | 1.50% | |||||||||||||||||||||||
Contractual maturity date | 15-Dec-13 | |||||||||||||||||||||||
Equity component - included in common stock - at September 28, 2013 and December 29, 2012 | $63,027 | |||||||||||||||||||||||
Initial conversion rate | 47.2813 shares of common stock per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $21.15 per share of Cadence common stock. | |||||||||||||||||||||||
Conversion feature (in addition to principal amount payable in cash) | Shares to the extent Cadence’s stock price exceeds $21.15 per share, calculated based on the applicable conversion rate multiplied by the volume weighted average price of Cadence common stock over a specified period. | |||||||||||||||||||||||
Early conversion conditions (or the Early Conversion Conditions) | • Closing stock price greater than $27.50 for at least 20 of the last 30 trading days in a calendar quarter (convertible only for subsequent quarter); | |||||||||||||||||||||||
• Specified corporate transactions; or | ||||||||||||||||||||||||
• Note trading price falls below calculated minimum. | ||||||||||||||||||||||||
Conversion immediately preceding maturity | From November 1, 2013, and until the trading day immediately preceding the maturity date, holders may convert their 2013 Notes at any time into cash and Cadence shares as described above under “Conversion feature.” | |||||||||||||||||||||||
Redemption at Cadence’s option prior to maturity | None. | |||||||||||||||||||||||
Fundamental change put right | Upon a fundamental change prior to maturity, the 2013 Note holders could require Cadence to repurchase their notes for cash equal to the principal amount of the notes plus accrued interest. | |||||||||||||||||||||||
Make-whole premium | Upon certain fundamental changes, prior to maturity, if Cadence’s stock price were between $18.00 and $60.00 per share at that time, the 2013 Note holders would be entitled to an increase to the conversion rate. This is referred to as a “make-whole premium.” | |||||||||||||||||||||||
Financial covenants | None. | |||||||||||||||||||||||
Effective interest rate and components of interest expense of 2015 notes | The effective interest rate and components of interest expense of the 2015 Notes for the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 8.1 | % | 8.1 | % | 8.1 | % | 8.1 | % | ||||||||||||||||
Contractual interest expense | $ | 2,289 | $ | 2,289 | $ | 6,867 | $ | 6,867 | ||||||||||||||||
Amortization of debt discount | $ | 4,045 | $ | 3,737 | $ | 11,906 | $ | 10,968 | ||||||||||||||||
Effective interest rate and components of interest expense of 2013 notes | The effective interest rate and components of interest expense of the 2013 Notes for the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 6.4 | % | 6.4 | % | 6.4 | % | 6.4 | % | ||||||||||||||||
Contractual interest expense | $ | 540 | $ | 540 | $ | 1,619 | $ | 1,619 | ||||||||||||||||
Amortization of debt discount | $ | 1,691 | $ | 1,588 | $ | 4,998 | $ | 4,674 | ||||||||||||||||
Acquisitions_and_AcquisitionRe1
Acquisitions and Acquisition-Related Contingent Consideration Acquisitions and Acquisition Related Contingent Consideration (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||
Schedule of identified assets acquired and liabilities assumed | The following table summarizes the fair value of assets acquired and liabilities assumed as part of the acquisitions completed during the nine months ended September 28, 2013: | |||||||||||||||
(In thousands) | ||||||||||||||||
Tensilica | Cosmic | Other | ||||||||||||||
Cash and cash equivalents | $ | 26,331 | $ | 1,724 | $ | 149 | ||||||||||
Trade receivables | 4,454 | 668 | — | |||||||||||||
Property, plant and equipment | 1,938 | 185 | 91 | |||||||||||||
Other assets | 46,832 | 1,681 | — | |||||||||||||
Acquired intangibles: | ||||||||||||||||
Existing technology | 102,000 | 16,300 | 2,014 | |||||||||||||
Agreements and relationships | 33,000 | 5,100 | 1,667 | |||||||||||||
Tradenames and trademarks | 3,000 | — | — | |||||||||||||
In-process technology | 5,300 | 4,200 | 1,200 | |||||||||||||
Goodwill | 176,461 | 41,911 | 9,587 | |||||||||||||
Total assets acquired | $ | 399,316 | $ | 71,769 | $ | 14,708 | ||||||||||
Deferred revenue | (8,100 | ) | (129 | ) | — | |||||||||||
Other liabilities | (4,959 | ) | (1,982 | ) | (277 | ) | ||||||||||
Long-term deferred tax liabilities | (40,147 | ) | (8,428 | ) | — | |||||||||||
Net assets acquired | $ | 346,110 | $ | 61,230 | $ | 14,431 | ||||||||||
Pro forma financial information | The financial information in the table below summarizes the combined results of operations of Cadence and Tensilica, on a pro forma basis, as though the companies had been combined as of the beginning of fiscal 2012. Pro forma results of operations for the other acquisitions completed during the three and nine months ended September 28, 2013 have not been presented because the effects of these acquisitions, individually and in the aggregate, would not have been material to Cadence's financial results. The pro forma financial information for Tensilica is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on December 31, 2011 or of results that may occur in the future. | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Total revenue | $ | 368,694 | $ | 346,999 | $ | 1,101,689 | $ | 1,003,170 | ||||||||
Net income | $ | 43,679 | $ | 47,180 | $ | 131,753 | $ | 85,280 | ||||||||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangibles (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill during the nine months ended September 28, 2013 were as follows: | |||||||||||||||
Gross Carrying | ||||||||||||||||
Amount | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 29, 2012 | $ | 233,266 | ||||||||||||||
Goodwill resulting from acquisitions | 227,959 | |||||||||||||||
Effect of foreign currency translation | (4,958 | ) | ||||||||||||||
Balance as of September 28, 2013 | $ | 456,267 | ||||||||||||||
Acquired intangibles with finite and indefinite lives, excluding intangibles fully amortized at end of prior fiscal year | Acquired intangibles as of December 29, 2012 were as follows, excluding intangibles that were fully amortized as of December 31, 2011: | |||||||||||||||
Gross Carrying | Accumulated | Acquired | ||||||||||||||
Amount | Amortization | Intangibles, Net | ||||||||||||||
(In thousands) | ||||||||||||||||
Existing technology | $ | 112,940 | $ | (30,171 | ) | $ | 82,769 | |||||||||
Agreements and relationships | 133,764 | (37,769 | ) | 95,995 | ||||||||||||
Distribution rights | 30,100 | (28,595 | ) | 1,505 | ||||||||||||
Tradenames, trademarks and patents | 12,485 | (7,816 | ) | 4,669 | ||||||||||||
Total acquired intangibles | $ | 289,289 | $ | (104,351 | ) | $ | 184,938 | |||||||||
Acquired intangibles as of September 28, 2013 were as follows, excluding intangibles that were fully amortized as of December 29, 2012: | ||||||||||||||||
Gross Carrying | Accumulated | Acquired | ||||||||||||||
Amount | Amortization | Intangibles, Net | ||||||||||||||
(In thousands) | ||||||||||||||||
Existing technology | $ | 236,774 | $ | (46,170 | ) | $ | 190,604 | |||||||||
Agreements and relationships | 171,422 | (49,199 | ) | 122,223 | ||||||||||||
Distribution rights | 30,100 | (30,100 | ) | — | ||||||||||||
Tradenames, trademarks and patents | 9,519 | (2,535 | ) | 6,984 | ||||||||||||
In-process technology | 3,996 | — | 3,996 | |||||||||||||
Total acquired intangibles | $ | 451,811 | $ | (128,004 | ) | $ | 323,807 | |||||||||
Amortization of acquired intangibles | Amortization of acquired intangibles for the three and nine months ended September 28, 2013 and September 29, 2012 was as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of product and maintenance | $ | 7,191 | $ | 3,874 | $ | 16,758 | $ | 9,664 | ||||||||
Amortization of acquired intangibles | 5,141 | 3,876 | 14,259 | 11,305 | ||||||||||||
Total amortization of acquired intangibles | $ | 12,332 | $ | 7,750 | $ | 31,017 | $ | 20,969 | ||||||||
Estimated amortization expense | Estimated amortization expense for the following five fiscal years and thereafter is as follows: | |||||||||||||||
(In thousands) | ||||||||||||||||
2013 – remaining period | $ | 12,446 | ||||||||||||||
2014 | 49,929 | |||||||||||||||
2015 | 49,378 | |||||||||||||||
2016 | 43,666 | |||||||||||||||
2017 | 40,060 | |||||||||||||||
Thereafter | 128,328 | |||||||||||||||
Total estimated amortization expense | $ | 323,807 | ||||||||||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Unrecognized Tax Benefits [Abstract] | ||||||||||||||||
Unrecognized tax benefits rollforward | The changes in Cadence's gross amount of unrecognized tax benefits during the nine months ended September 28, 2013 are as follows: | |||||||||||||||
Unrecognized tax benefits | ||||||||||||||||
(In thousands) | ||||||||||||||||
Unrecognized tax benefits as of December 29, 2012 | $ | 92,378 | ||||||||||||||
Gross amount of the increases in unrecognized tax benefits of tax positions taken during a prior year | 6,476 | |||||||||||||||
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 13,088 | |||||||||||||||
Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes | (13,821 | ) | ||||||||||||||
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | (12,044 | ) | ||||||||||||||
Effect of foreign currency translation | 497 | |||||||||||||||
Unrecognized tax benefits as of September 28, 2013 | $ | 86,574 | ||||||||||||||
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate as of September 28, 2013 | $ | 49,914 | ||||||||||||||
Interest and penalties recognized in the condensed consolidated income statements | The total amounts of interest and penalties recognized in the condensed consolidated income statements as provision (benefit) for income taxes for the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Interest | $ | 728 | $ | 820 | $ | (12,731 | ) | $ | 2,584 | |||||||
Penalties | (708 | ) | (36 | ) | (7,666 | ) | (1,012 | ) | ||||||||
Interest and penalties recognized in the condensed consolidated balance sheets | The total amounts of gross accrued interest and penalties recognized in the condensed consolidated balance sheets as of September 28, 2013 and December 29, 2012 were as follows: | |||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Interest | $ | 52 | $ | 24,427 | ||||||||||||
Penalties | 1,255 | 8,953 | ||||||||||||||
Receivables_and_Allowances_for1
Receivables and Allowances for Doubtful Accounts (Tables) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Receivables [Abstract] | ||||||||
Current and long-term accounts receivable balances | Cadence’s current and long-term receivables balances as of September 28, 2013 and December 29, 2012 were as follows: | |||||||
As of | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Accounts receivable | $ | 61,906 | $ | 67,259 | ||||
Installment contract receivables, short-term | 40,134 | 30,647 | ||||||
Long-term receivables | 3,994 | 7,559 | ||||||
Total receivables | $ | 106,034 | $ | 105,465 | ||||
Less allowance for doubtful accounts | (144 | ) | (85 | ) | ||||
Total receivables, net | $ | 105,890 | $ | 105,380 | ||||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair value of financial assets and liabilities | On a quarterly basis, Cadence measures at fair value certain financial assets and liabilities. The fair value of financial assets and liabilities was determined using the following levels of inputs as of September 28, 2013 and December 29, 2012: | |||||||||||||||
Fair Value Measurements as of September 28, 2013: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 475,563 | $ | 475,563 | $ | — | $ | — | ||||||||
Bank certificates of deposit | 1,000 | — | 1,000 | — | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | 36,878 | — | 36,878 | — | ||||||||||||
Bank certificates of deposit | 18,313 | — | 18,313 | — | ||||||||||||
United States Treasury securities | 24,738 | 24,738 | — | — | ||||||||||||
United States government agency securities | 11,227 | 11,227 | — | — | ||||||||||||
Commercial paper | 2,797 | — | 2,797 | — | ||||||||||||
Marketable equity securities | 2,066 | 2,066 | — | — | ||||||||||||
Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust | 22,339 | 22,339 | — | — | ||||||||||||
2015 Notes Hedges | 292,511 | — | 292,511 | — | ||||||||||||
Foreign currency exchange contracts | 1,662 | — | 1,662 | — | ||||||||||||
Total Assets | $ | 889,094 | $ | 535,933 | $ | 353,161 | $ | — | ||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Acquisition-related contingent consideration | $ | 3,835 | $ | — | $ | — | $ | 3,835 | ||||||||
2015 Notes Embedded Conversion Derivative | 292,511 | — | 292,511 | — | ||||||||||||
Total Liabilities | $ | 296,346 | $ | — | $ | 292,511 | $ | 3,835 | ||||||||
Fair Value Measurements as of December 29, 2012: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 566,334 | $ | 566,334 | $ | — | $ | — | ||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | 31,359 | — | 31,359 | — | ||||||||||||
Bank certificates of deposit | 27,826 | — | 27,826 | — | ||||||||||||
United States Treasury securities | 23,239 | 23,239 | — | — | ||||||||||||
United States government agency securities | 10,258 | 10,258 | — | — | ||||||||||||
Commercial paper | 5,783 | — | 5,783 | — | ||||||||||||
Marketable equity securities | 2,239 | 2,239 | — | — | ||||||||||||
Trading securities held in NQDC trust | 24,329 | 24,329 | — | — | ||||||||||||
2015 Notes Hedges | 303,154 | — | 303,154 | — | ||||||||||||
Foreign currency exchange contracts | 1,737 | — | 1,737 | — | ||||||||||||
Total Assets | $ | 996,258 | $ | 626,399 | $ | 369,859 | $ | — | ||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Acquisition-related contingent consideration | $ | 4,218 | $ | — | $ | — | $ | 4,218 | ||||||||
2015 Notes Embedded Conversion Derivative | 303,154 | — | 303,154 | — | ||||||||||||
Total Liabilities | $ | 307,372 | $ | — | $ | 303,154 | $ | 4,218 | ||||||||
Liabilities included in level 3 representing fair value of contingent consideration associated with acquisitions | The following table summarizes the level 3 activity for the nine months ended September 28, 2013: | |||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 29, 2012 | $ | 4,218 | ||||||||||||||
Payments | (835 | ) | ||||||||||||||
Adjustments | 452 | |||||||||||||||
Balance as of September 28, 2013 | $ | 3,835 | ||||||||||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Cash, Cash Equivalents and Investments [Abstract] | ||||||||||||||||
Summary of cash, cash equivalents and short-term investments | Cadence’s cash, cash equivalents and short-term investments at fair value as of September 28, 2013 and December 29, 2012 were as follows: | |||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 620,403 | $ | 726,357 | ||||||||||||
Short-term investments | 96,019 | 100,704 | ||||||||||||||
Cash, cash equivalents and short-term investments | $ | 716,422 | $ | 827,061 | ||||||||||||
Summary of cash and cash equivalents | The following table summarizes Cadence’s cash and cash equivalents at fair value as of September 28, 2013 and December 29, 2012: | |||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and interest bearing deposits | $ | 143,840 | $ | 160,023 | ||||||||||||
Money market funds | 475,563 | 566,334 | ||||||||||||||
Bank certificates of deposit | 1,000 | — | ||||||||||||||
Total cash and cash equivalents | $ | 620,403 | $ | 726,357 | ||||||||||||
Summary of short-term investments | The following tables summarize Cadence’s short-term investments as of September 28, 2013 and December 29, 2012: | |||||||||||||||
As of September 28, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 36,859 | $ | 33 | $ | (14 | ) | $ | 36,878 | |||||||
Bank certificates of deposit | 18,300 | 13 | — | 18,313 | ||||||||||||
United States Treasury securities | 24,705 | 34 | (1 | ) | 24,738 | |||||||||||
United States government agency securities | 11,215 | 13 | (1 | ) | 11,227 | |||||||||||
Commercial paper | 2,794 | 3 | — | 2,797 | ||||||||||||
Marketable debt securities | 93,873 | 96 | (16 | ) | 93,953 | |||||||||||
Marketable equity securities | 1,817 | 249 | — | 2,066 | ||||||||||||
Total short-term investments | $ | 95,690 | $ | 345 | $ | (16 | ) | $ | 96,019 | |||||||
As of December 29, 2012 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 31,313 | $ | 57 | $ | (11 | ) | $ | 31,359 | |||||||
Bank certificates of deposit | 27,805 | 21 | — | 27,826 | ||||||||||||
United States Treasury securities | 23,213 | 26 | — | 23,239 | ||||||||||||
United States government agency securities | 10,245 | 13 | — | 10,258 | ||||||||||||
Commercial paper | 5,777 | 6 | — | 5,783 | ||||||||||||
Marketable debt securities | 98,353 | 123 | (11 | ) | 98,465 | |||||||||||
Marketable equity securities | 1,817 | 422 | — | 2,239 | ||||||||||||
Total short-term investments | $ | 100,170 | $ | 545 | $ | (11 | ) | $ | 100,704 | |||||||
Contractual maturity of marketable debt investments | The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of September 28, 2013, by contractual maturity, are shown in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. | |||||||||||||||
Amortized | Fair | |||||||||||||||
Cost | Value | |||||||||||||||
(In thousands) | ||||||||||||||||
Due in less than one year | $ | 48,949 | $ | 48,983 | ||||||||||||
Due in one to three years | 44,924 | 44,970 | ||||||||||||||
Total marketable debt securities included in short-term investments | $ | 93,873 | $ | 93,953 | ||||||||||||
Net realized gains on sale of marketable investments | Net realized gains from the sale of marketable debt and equity securities during the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Gains on sale of marketable debt and equity securities, net | $ | 1,363 | $ | 8 | $ | 1,339 | $ | 123 | ||||||||
Carrying value of non-marketable securities | Cadence’s non-marketable investments as of September 28, 2013 and December 29, 2012 were as follows: | |||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cost method | $ | 3,038 | $ | 3,038 | ||||||||||||
Equity method | 3,648 | 4,249 | ||||||||||||||
Total non-marketable investments | $ | 6,686 | $ | 7,287 | ||||||||||||
Net realized gains on the sale of non-marketable investments | Net realized gains on the sale of non-marketable investments during the three and nine months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Gains on sale of non-marketable investments, net | $ | 6 | $ | — | $ | 1,196 | $ | — | ||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Basic and diluted net income per share | The calculations for basic and diluted net income per share for the three and nine months ended September 28, 2013 and September 29, 2012 are as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net income | $ | 38,500 | $ | 58,584 | $ | 126,538 | $ | 126,074 | ||||||||
Weighted average common shares used to calculate basic net income per share | 278,977 | 271,350 | 277,034 | 269,643 | ||||||||||||
2023 Notes | 9 | 11 | 11 | 11 | ||||||||||||
2015 Warrants | 11,587 | 6,286 | 11,042 | 3,148 | ||||||||||||
Share-based awards | 6,385 | 5,681 | 6,444 | 5,958 | ||||||||||||
Weighted average common shares used to calculate diluted net income per share | 296,958 | 283,328 | 294,531 | 278,760 | ||||||||||||
Net income per share - basic | $ | 0.14 | $ | 0.22 | $ | 0.46 | $ | 0.47 | ||||||||
Net income per share - diluted | $ | 0.13 | $ | 0.21 | $ | 0.43 | $ | 0.45 | ||||||||
Potential shares of Cadence's common stock excluded | The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 28, 2013, and September 29, 2012, that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
2013 Warrants | 6,830 | 6,830 | 6,830 | 6,830 | ||||||||||||
Options to purchase shares of common stock | 5,639 | 10,003 | 6,048 | 12,767 | ||||||||||||
Non-vested shares of restricted stock | 3,280 | 10 | 1,099 | 82 | ||||||||||||
Total potential common shares excluded | 15,749 | 16,843 | 13,977 | 19,679 | ||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated other comprehensive income net of tax | Accumulated other comprehensive income was comprised of the following as of September 28, 2013, and December 29, 2012: | |||||||
As of | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Foreign currency translation gain | $ | 25,345 | $ | 48,653 | ||||
Changes in defined benefit plan liabilities | (4,781 | ) | (5,229 | ) | ||||
Unrealized holding gains on available-for-sale securities | 320 | 526 | ||||||
Total accumulated other comprehensive income | $ | 20,884 | $ | 43,950 | ||||
For the three and nine months ended September 28, 2013 and September 29, 2012 there were no significant amounts reclassified from accumulated other comprehensive income to net income. |
Other_Income_Net_Tables
Other Income, Net (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||
Other Income, Net | Cadence’s other income, net for the three and nine months ended September 28, 2013 and September 29, 2012 was as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Interest income | $ | 366 | $ | 399 | $ | 1,275 | $ | 1,024 | ||||||||
Gains on sale of marketable debt and equity securities, net | 1,363 | 8 | 1,339 | 123 | ||||||||||||
Gains on sale of non-marketable investments, net | 6 | — | 1,196 | — | ||||||||||||
Gains (losses) on securities in NQDC trust | 206 | (839 | ) | 2,057 | 3,237 | |||||||||||
Gains on foreign exchange | 489 | 1,376 | 1,476 | 2,546 | ||||||||||||
Write-down of non-marketable investments | — | (1,081 | ) | (464 | ) | (1,103 | ) | |||||||||
Other income (expense), net | 105 | 6 | (151 | ) | 145 | |||||||||||
Total other income (expense), net | $ | 2,535 | $ | (131 | ) | $ | 6,728 | $ | 5,972 | |||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Summary of revenue by geography | The following table presents a summary of revenue by geography for the three and nine months ended September 28, 2013 and September 29, 2012: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Americas: | ||||||||||||||||
United States | $ | 168,125 | $ | 141,509 | $ | 476,525 | $ | 414,888 | ||||||||
Other Americas | 7,212 | 4,733 | 17,393 | 18,659 | ||||||||||||
Total Americas | 175,337 | 146,242 | 493,918 | 433,547 | ||||||||||||
Europe, Middle East and Africa | 72,376 | 66,392 | 229,053 | 191,097 | ||||||||||||
Japan | 45,853 | 58,757 | 144,794 | 168,856 | ||||||||||||
Asia | 73,081 | 67,142 | 215,629 | 187,339 | ||||||||||||
Total | $ | 366,647 | $ | 338,533 | $ | 1,083,394 | $ | 980,839 | ||||||||
Summary of long-lived assets by geography | The following table presents a summary of long-lived assets by geography as of September 28, 2013 and December 29, 2012: | |||||||||||||||
As of | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Americas: | ||||||||||||||||
United States | $ | 209,783 | $ | 214,711 | ||||||||||||
Other Americas | 330 | 185 | ||||||||||||||
Total Americas | 210,113 | 214,896 | ||||||||||||||
Europe, Middle East and Africa | 6,354 | 5,410 | ||||||||||||||
Japan | 974 | 1,649 | ||||||||||||||
Asia | 24,524 | 22,484 | ||||||||||||||
Total | $ | 241,965 | $ | 244,439 | ||||||||||||
Debt_Details
Debt (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Principal | $544,561 | $494,639 |
Unamortized debt discount | -30,724 | -47,628 |
Carrying value | 50,000 | 0 |
Carrying value | 513,837 | 447,011 |
Notes Due Twenty-Thirteen [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 144,461 | 144,461 |
Unamortized debt discount | -1,449 | -6,447 |
Carrying value | 143,012 | 138,014 |
Convertible Senior Notes Due 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 350,000 | 350,000 |
Unamortized debt discount | -29,275 | -41,181 |
Carrying value | 320,725 | 308,819 |
Zero Coupon Zero Yield Senior Convertible Notes Due Two Zero Two Three [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 100 | 178 |
Unamortized debt discount | 0 | 0 |
Carrying value | 100 | 178 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 50,000 | 0 |
Unamortized debt discount | 0 | 0 |
Carrying value | $50,000 | $0 |
Debt_Details_1
Debt (Details 1) (Convertible Senior Notes Due 2015 [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Convertible Senior Notes Due 2015 [Member] | ||||
Effective interest rate and components of interest expense of 2015 notes | ||||
Effective interest rate | 8.10% | 8.10% | 8.10% | 8.10% |
Contractual interest expense | $2,289 | $2,289 | $6,867 | $6,867 |
Amortization of debt discount | $4,045 | $3,737 | $11,906 | $10,968 |
Debt_Details_2
Debt (Details 2) (Convertible Senior Notes Due 2013 [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Convertible Senior Notes Due 2013 [Member] | ||||
Effective interest rate and components of interest expense of 2013 notes | ||||
Effective interest rate | 6.40% | 6.40% | 6.40% | 6.40% |
Contractual interest expense | $540 | $540 | $1,619 | $1,619 |
Amortization of debt discount | $1,691 | $1,588 | $4,998 | $4,674 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Jan. 01, 2011 | Dec. 30, 2006 | Dec. 29, 2012 | Jun. 30, 2010 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Aug. 31, 2003 |
Convertible Senior Notes Due 2013 [Member] | Convertible Senior Notes Due 2013 [Member] | Convertible Senior Notes Due 2013 [Member] | Convertible Senior Notes Due 2013 [Member] | Convertible Senior Notes Due 2015 [Member] | Convertible Senior Notes Due 2015 [Member] | Convertible Senior Notes Due 2015 [Member] | Convertible Senior Notes Due 2015 [Member] | Convertible Senior Notes Due 2015 [Member] | Convertible Senior Notes Due 2015 [Member] | Zero Coupon Zero Yield Senior Convertible Notes Due 2023 [Member] | Zero Coupon Zero Yield Senior Convertible Notes Due 2023 [Member] | Zero Coupon Zero Yield Senior Convertible Notes Due 2023 [Member] | |||
Convertible Notes (Textual) [Abstract] | |||||||||||||||
Principal amount, issued | $250,000,000 | $350,000,000 | $420,000,000 | ||||||||||||
Principal amount outstanding | 144,461,000 | 144,461,000 | 350,000,000 | 350,000,000 | 350,000,000 | 100,000 | 178,000 | ||||||||
Stated interest rate of Convertible Senior Notes | 1.50% | 2.63% | 2.63% | ||||||||||||
Net current liability of convertible senior notes | 463,837,000 | 447,011,000 | 320,700,000 | 320,700,000 | |||||||||||
Equity component of convertible debt - included in common stock | 63,027,000 | 63,027,000 | |||||||||||||
Maturity date of Convertible Senior Notes | 15-Dec-13 | 1-Jun-15 | |||||||||||||
Warrants to purchase shares of common stock price per share (in usd per share) | $31.50 | $10.78 | |||||||||||||
Conversion rate of Notes | 47.2813 shares of common stock per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $21.15 per share of Cadence common stock. | 132.5205 shares of common stock per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $7.55 per share of Cadence common stock. | |||||||||||||
Minimum closing price of common stock for specified days for conversion of notes (in usd per share) | $27.50 | $9.81 | |||||||||||||
Minimum number of trading days limit for which closing price exceeds fixed price for conversion of notes | 20 days | 20 days | |||||||||||||
Number of final trading days range within which closing price exceeds the fixed price for conversion of notes | 30 days | 30 days | |||||||||||||
Total expense if convertible notes are converted | 33,300,000 | ||||||||||||||
Unamortized debt discount expensed if convertible notes are converted | 29,300,000 | ||||||||||||||
Unamortized transaction fees expensed if convertible notes are converted | 4,000,000 | ||||||||||||||
If converted value of convertible senior notes | 628,500,000 | 628,500,000 | |||||||||||||
Event 1 | Closing stock price greater than $27.50 for at least 20 of the last 30 trading days in a calendar quarter (convertible only for subsequent quarter). | Closing stock price greater than $9.81 for at least 20 of the last 30 trading days in a fiscal quarter (convertible only for subsequent quarter). | |||||||||||||
Event 2 | Specified corporate transactions | Specified corporate transactions | |||||||||||||
Event 3 | Note trading price falls below calculated minimum | Note trading price falls below a calculated minimum | |||||||||||||
Conversion rate of Convertible Senior Notes subject to certain conversion rate adjustments (in usd per share) | $21.15 | $7.55 | $7.55 | ||||||||||||
Condition 1 | Upon a fundamental change prior to maturity, the 2013 Note holders could require Cadence to repurchase their notes for cash equal to the principal amount of the notes plus accrued interest. Upon certain fundamental changes, prior to maturity, if Cadence’s stock price were between $18.00 and $60.00 per share at that time, the 2013 Note holder would be entitled to an increase to the conversion rate. This is referred to as a “make-whole premium.†| Upon certain fundamental corporate changes prior to maturity, the 2015 Note holders could require Cadence to repurchase their notes for cash equal to the principal amount of the notes plus accrued interest. Upon certain fundamental changes prior to maturity, if Cadence’s stock price were between $6.16 and $40.00 per share at that time, the 2015 notes holder would be entitled to an increase to the conversion rate. This is referred to as a “make-whole premium.†| |||||||||||||
Minimum closing price of common stock to make whole premium in the form of increase to conversion rate (in usd per share) | $18 | $6.16 | |||||||||||||
Maximum closing price of common stock to make whole premium in form of increase to conversion rate (in usd per share) | $60 | $40 | |||||||||||||
Conversion rate for convertible senior notes per thousand principal amount of notes | 47.2813 | 132.5205 | |||||||||||||
Debt instrument principal amount conversion rate for specified shares of common stock | 1,000 | 1,000 | |||||||||||||
Total estimated fair value | 639,400,000 | 639,400,000 | 640,100,000 | 100,000 | 178,000 | ||||||||||
Fair value of 2015 notes embedded conversion Derivative at the time of issuance | 76,600,000 | ||||||||||||||
Estimated fair value of 2015 Notes embedded conversion derivative at the balance sheet date | 292,500,000 | 292,500,000 | 303,200,000 | ||||||||||||
Cost of 2015 Notes Hedges | 76,600,000 | ||||||||||||||
Estimated fair value of 2015 Notes hedges at the balance sheet date | 292,500,000 | 292,500,000 | 303,200,000 | ||||||||||||
Shares of common stock that can be purchased under warrants (in shares) | 11,800,000 | 46,400,000 | |||||||||||||
Amount received in cash proceeds from the sale of warrants | 25,300,000 | 37,500,000 | |||||||||||||
Number of shares underlying warrants purchased with purchase of convertible Senior Notes | 5,000,000 | ||||||||||||||
Notes Warrants expiration date description | various dates from February 2014 through April 2014 | various dates from September 2015 through December 2015 | |||||||||||||
Aggregate cost of 2013 Notes Hedges | 67,700,000 | ||||||||||||||
Estimated fair value of the remaining 2013 Notes Hedges | 0 | 700,000 | |||||||||||||
Number of shares underlying warrants purchased with purchase of 2013 Notes (in shares) | 5,000,000 | ||||||||||||||
Total estimated fair value (including equity component) | 144,700,000 | 144,100,000 | |||||||||||||
Impact on Income statement related to fair value adjustments of 2015 Notes Embedded Conversion Derivative and 2015 Notes Hedges | $0 | $0 | $0 | $0 |
Debt_Credit_Facility_Details_T
Debt Credit Facility (Details Textual) (USD $) | 9 Months Ended | |
Sep. 28, 2013 | Dec. 29, 2012 | |
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $50,000,000 | $0 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, date of agreement | 12-Dec-12 | |
Credit facility, interest rate description | Interest accrues based on Cadence's consolidated leverage ratio. Borrowings may be made at LIBOR plus a margin between 1.25% and 2.0% per annum or at the base rate plus a margin between 0.25% and 1.0% per annum, where in each case the margin is determined by reference to a specified leverage ratio. Interest is payable quarterly. | |
Credit facility, term | 5 years | |
Credit facility, current borrowing capacity | 250,000,000 | |
Credit facility additional borrowing capacity available | 150,000,000 | |
Credit facility, maximum borrowing capacity | 400,000,000 | |
Credit facility, maturity date | 12-Dec-17 | |
Credit facility, collateral description | The facility is secured by certain accounts receivable and certain equity interests in Cadence’s subsidiaries. | |
Credit facility, covenant description | The credit facility contains customary negative covenants that, among other things, restrict Cadence's ability to incur additional indebtedness, grant liens and make certain investments, make acquisitions, dispose of certain assets and make certain restricted payments, including dividends. In addition, the credit facility contains financial covenants that require Cadence to maintain a leverage ratio not to exceed 3 to 1, and a minimum interest coverage ratio of 3 to 1. | |
Revolving credit facility | $50,000,000 | $0 |
Credit facility, covenant compliance | Cadence was in compliance with all financial covenants as of September 28, 2013 and December 29, 2012. | |
Maximum [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, commitment fee percentage | 0.35% | |
Minimum [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, commitment fee percentage | 0.20% | |
Credit Facility Interest LIBOR And Spread [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, interest rate spread | 2.00% | |
Credit Facility Interest LIBOR And Spread [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, interest rate spread | 1.25% | |
Credit facility interest base rate and spread [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, interest rate spread | 1.00% | |
Credit facility interest base rate and spread [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, interest rate spread | 0.25% |
Acquisitions_and_AcquisitionRe2
Acquisitions and Acquisition-Related Contingent Consideration (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Apr. 22, 2013 | 23-May-13 | 23-May-13 | Sep. 28, 2013 |
Tensilica | Cosmic | Cosmic | Other 2013 acquisitions | |||||
Trust For benefit of children of chief executive officer [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total considerations paid | $14.40 | |||||||
Total consideration paid, net of cash acquired | 319.3 | 59.5 | ||||||
Cash acquired | 26.3 | 1.7 | ||||||
Business acquisition total fair value of options assumed | 15.3 | |||||||
Business acquisition fair value of options assumed as consideration | 0.5 | |||||||
Business acquisition fair value of options assumed to be expensed over service period of award | 14.8 | |||||||
Additional payments deferred on the acquisition date | 5.8 | |||||||
Related party, ownership percentage in acquired company | 8.50% | |||||||
Acquired definite-lived intangible assets, weighted average useful life | 8 years | |||||||
Goodwill, expected tax deductible amount | 9.6 | 9.6 | ||||||
Acquisition related costs | $0 | $0.20 | $8.20 | $1.30 |
Acquisitions_and_AcquisitionRe3
Acquisitions and Acquisition-Related Contingent Consideration Acquisitions and Acquisition-Related Contingent Consideration (Details) (USD $) | Apr. 22, 2013 | Apr. 22, 2013 | Apr. 22, 2013 | Apr. 22, 2013 | 23-May-13 | 23-May-13 | 23-May-13 | 23-May-13 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | Tensilica | Tensilica existing technology | Tensilica agreements and relationships | Tensilica tradenames and trademarks | Cosmic | Cosmic existing technology | Cosmic agreements and relationships | Cosmic tradenames and trademarks | Other 2013 acquisitions | Other acquisitions agreements and relationships | Other acquisitions existing technology | Other acquisitions tradenames and trademarks |
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | $26,331 | $1,724 | $149 | |||||||||
Trade receivables | 4,454 | 668 | 0 | |||||||||
Property, plant and equipment | 1,938 | 185 | 91 | |||||||||
Other assets | 46,832 | 1,681 | 0 | |||||||||
Acquired intangibles: | 102,000 | 33,000 | 3,000 | 16,300 | 5,100 | 0 | 1,667 | 2,014 | 0 | |||
In-process technology | 5,300 | 4,200 | 1,200 | |||||||||
Goodwill | 176,461 | 41,911 | 9,587 | |||||||||
Total assets acquired | 399,316 | 71,769 | 14,708 | |||||||||
Deferred revenue | -8,100 | -129 | 0 | |||||||||
Other liabilities | -4,959 | -1,982 | -277 | |||||||||
Long-term deferred tax liabilities | -40,147 | -8,428 | 0 | |||||||||
Net assets acquired | $346,110 | $61,230 | $14,431 |
Acquisitions_and_AcquisitionRe4
Acquisitions and Acquisition-Related Contingent Consideration Acquisitions and Acquisition-Related Contingent Consideration (Details 1) (Tensilica, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Tensilica | ||||
Schedule of Business Acquisitions, Pro Forma [Line Items] | ||||
Pro forma revenue | $368,694 | $346,999 | $1,101,689 | $1,003,170 |
Pro forma net income | $43,679 | $47,180 | $131,753 | $85,280 |
Acquisitions_and_AcquisitionRe5
Acquisitions and Acquisition-Related Contingent Consideration (Details Textual 1) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | |
Two Thousand Eleven Acquisition [Member] | Two Thousand Eleven Acquisition [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Maximum payments for contingent consideration arrangement | $5,000,000 | |||
Time of certain financial measures subsequent to consummation of the acquisition related to contingent consideration | 3 years | |||
Beginning date of acquisition related contingent consideration measurement period | subsequent to October 1, 2011 | |||
Acquisition related contingent consideration at initial fair value | 3,500,000 | |||
Acquisition-related contingent consideration | 3,835,000 | 4,218,000 | 3,800,000 | |
Maximum amount obligated to pay by Cadence | 14,300,000 | |||
Period over which consideration may be paid | 31 months | |||
Portion of amount of contingent consideration potential expense in future periods | $8,700,000 |
Goodwill_and_Acquired_Intangib2
Goodwill and Acquired Intangibles (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
Changes in the carrying amount of goodwill | |
Balance as of December 29, 2012 | $233,266 |
Goodwill resulting from acquisitions | 227,959 |
Effect of foreign currency translation | -4,958 |
Balance as of September 28, 2013 | $456,267 |
Goodwill_and_Acquired_Intangib3
Goodwill and Acquired Intangibles (Details 1) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Dec. 29, 2012 |
Finite-Lived Intangible Assets [Line Items] | ||
In-process Technology Transferred to Existing Technology | $5,496 | |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
Gross carrying amount | 451,811 | 289,289 |
Accumulated amortization | -128,004 | -104,351 |
Acquired intangibles | 323,807 | 184,938 |
In-process technology | 3,996 | |
Existing Technology [Member] | ||
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
Gross carrying amount | 236,774 | 112,940 |
Accumulated amortization | -46,170 | -30,171 |
Acquired intangibles | 190,604 | 82,769 |
Agreements and relationships [Member] | ||
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
Gross carrying amount | 171,422 | 133,764 |
Accumulated amortization | -49,199 | -37,769 |
Acquired intangibles | 122,223 | 95,995 |
Distribution rights [Member] | ||
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
Gross carrying amount | 30,100 | 30,100 |
Accumulated amortization | -30,100 | -28,595 |
Acquired intangibles | 0 | 1,505 |
Tradenames Trademarks And Patents [Member] | ||
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
Gross carrying amount | 9,519 | 12,485 |
Accumulated amortization | -2,535 | -7,816 |
Acquired intangibles | $6,984 | $4,669 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Expected Completion for In-process Technology | 6 months | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Expected Completion for In-process Technology | 12 months |
Goodwill_and_Acquired_Intangib4
Goodwill and Acquired Intangibles (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Amortization of acquired intangibles | ||||
Cost of product and maintenance | $7,191 | $3,874 | $16,758 | $9,664 |
Amortization of Intangible Assets | 5,141 | 3,876 | 14,259 | 11,305 |
Total amortization of acquired intangibles | $12,332 | $7,750 | $31,017 | $20,969 |
Goodwill_and_Acquired_Intangib5
Goodwill and Acquired Intangibles (Details 3) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Estimated amortization expense | ||
2013-remaining period | $12,446 | |
2014 | 49,929 | |
2015 | 49,378 | |
2016 | 43,666 | |
2017 | 40,060 | |
Thereafter | 128,328 | |
Acquired intangibles | $323,807 | $184,938 |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $2,382,000 | ($8,011,000) | $3,025,000 | $9,469,000 |
Tax benefit from release of uncertain tax position from previous business combination | 33,700,000 | 33,700,000 | ||
Tax benefit for fiscal 2012 federal research tax credit | $5,900,000 |
Income_Taxes_Income_Taxes_Deta1
Income Taxes Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 |
Unrecognized tax benefits | |||||
Unrecognized tax benefits as of December 29, 2012 | $92,378 | ||||
Gross amount of the increases in unrecognized tax benefits of tax positions taken during a prior year | 6,476 | ||||
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 13,088 | ||||
Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes | -13,821 | ||||
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | -12,044 | ||||
Effect of foreign currency translation | 497 | ||||
Unrecognized tax benefits as of September 28, 2013 | 86,574 | 86,574 | |||
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate as of September 28, 2013 | 49,914 | 49,914 | |||
Interest and penalties recognized in the condensed consolidated income statements | |||||
Interest | 728 | 820 | -12,731 | 2,584 | |
Penalties | -708 | -36 | -7,666 | -1,012 | |
Interest and penalties recognized in the condensed consolidated balance sheets | |||||
Interest | 52 | 52 | 24,427 | ||
Penalties | $1,255 | $1,255 | $8,953 |
Receivables_and_Allowances_for2
Receivables and Allowances for Doubtful Accounts (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current and long-term receivables balances | ||
Accounts receivable | $61,906 | $67,259 |
Installment contract receivables, short-term | 40,134 | 30,647 |
Long-term receivables | 3,994 | 7,559 |
Total receivables | 106,034 | 105,465 |
Less allowance for doubtful accounts | -144 | -85 |
Total receivables, net | $105,890 | $105,380 |
Receivables_and_Allowances_for3
Receivables and Allowances for Doubtful Accounts (Details Textual) | Sep. 28, 2013 | Dec. 29, 2012 |
Customer | Customer | |
Accounts Receivable and Allowances for Doubtful Accounts (Textual) [Abstract] | ||
Percentage of Company's Receivables Net and Installment Contract Receivables Net Attributable to Single Customer | 13.00% | 10.00% |
Number of customers with receivables balance greater than ten percent of total balance | 0 | |
Percentage of Company's total receivables, net attributable to the ten customers with largest balance | 53.00% | 47.00% |
Number of customers with largest balance of receivables | 10 | 10 |
Fair_Value_Details
Fair Value (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Short-term investments: | ||
Available-for-sale securities | $96,019 | $100,704 |
Trading securities held in Non - Qualified Deferred Compensation Plan, or NQDC, trust | 22,339 | 24,329 |
2015 Notes Hedges | 292,511 | 303,154 |
Foreign currency exchange contracts | 1,662 | 1,737 |
Total Assets | 889,094 | 996,258 |
Liabilities | ||
Acquisition-related contingent consideration | 3,835 | 4,218 |
2015 Notes Embedded Conversion Derivative | 292,511 | 303,154 |
Total Liabilities | 296,346 | 307,372 |
Money market funds [Member] | ||
Assets | ||
Cash equivalents | 475,563 | 566,334 |
Corporate debt securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 36,878 | 31,359 |
Bank certificates of deposit [Member] | ||
Assets | ||
Cash equivalents | 1,000 | |
Short-term investments: | ||
Available-for-sale securities | 18,313 | 27,826 |
United States Treasury securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 24,738 | 23,239 |
United States government agency securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 11,227 | 10,258 |
Commercial paper [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 2,797 | 5,783 |
Marketable equity securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 2,066 | 2,239 |
Fair Value Measurements, Level 1 [Member] | ||
Short-term investments: | ||
Trading securities held in Non - Qualified Deferred Compensation Plan, or NQDC, trust | 22,339 | 24,329 |
2015 Notes Hedges | 0 | 0 |
Foreign currency exchange contracts | 0 | 0 |
Total Assets | 535,933 | 626,399 |
Liabilities | ||
Acquisition-related contingent consideration | 0 | 0 |
2015 Notes Embedded Conversion Derivative | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value Measurements, Level 1 [Member] | Money market funds [Member] | ||
Assets | ||
Cash equivalents | 475,563 | 566,334 |
Fair Value Measurements, Level 1 [Member] | Corporate debt securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 1 [Member] | Bank certificates of deposit [Member] | ||
Assets | ||
Cash equivalents | 0 | |
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 1 [Member] | United States Treasury securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 24,738 | 23,239 |
Fair Value Measurements, Level 1 [Member] | United States government agency securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 11,227 | 10,258 |
Fair Value Measurements, Level 1 [Member] | Commercial paper [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 1 [Member] | Marketable equity securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 2,066 | 2,239 |
Fair Value Measurements, Level 2 [Member] | ||
Short-term investments: | ||
Trading securities held in Non - Qualified Deferred Compensation Plan, or NQDC, trust | 0 | 0 |
2015 Notes Hedges | 292,511 | 303,154 |
Foreign currency exchange contracts | 1,662 | 1,737 |
Total Assets | 353,161 | 369,859 |
Liabilities | ||
Acquisition-related contingent consideration | 0 | 0 |
2015 Notes Embedded Conversion Derivative | 292,511 | 303,154 |
Total Liabilities | 292,511 | 303,154 |
Fair Value Measurements, Level 2 [Member] | Money market funds [Member] | ||
Assets | ||
Cash equivalents | 0 | 0 |
Fair Value Measurements, Level 2 [Member] | Corporate debt securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 36,878 | 31,359 |
Fair Value Measurements, Level 2 [Member] | Bank certificates of deposit [Member] | ||
Assets | ||
Cash equivalents | 1,000 | |
Short-term investments: | ||
Available-for-sale securities | 18,313 | 27,826 |
Fair Value Measurements, Level 2 [Member] | United States Treasury securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 2 [Member] | United States government agency securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 2 [Member] | Commercial paper [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 2,797 | 5,783 |
Fair Value Measurements, Level 2 [Member] | Marketable equity securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | ||
Short-term investments: | ||
Trading securities held in Non - Qualified Deferred Compensation Plan, or NQDC, trust | 0 | 0 |
2015 Notes Hedges | 0 | 0 |
Foreign currency exchange contracts | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities | ||
Acquisition-related contingent consideration | 3,835 | 4,218 |
2015 Notes Embedded Conversion Derivative | 0 | 0 |
Total Liabilities | 3,835 | 4,218 |
Fair Value Measurements, Level 3 [Member] | Money market funds [Member] | ||
Assets | ||
Cash equivalents | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | Corporate debt securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | Bank certificates of deposit [Member] | ||
Assets | ||
Cash equivalents | 0 | |
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | United States Treasury securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | United States government agency securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | Commercial paper [Member] | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | Marketable equity securities [Member] | ||
Short-term investments: | ||
Available-for-sale securities | $0 | $0 |
Fair_Value_Details_1
Fair Value (Details 1) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | Fair Value Measurements, Level 3 [Member] | ||
Liabilities included in level 3 representing fair value of contingent consideration associated with acquisitions | |||
Begining Balance | $3,835 | $4,218 | $4,218 |
Payments | -835 | ||
Adjustments | 452 | ||
Ending Balance | $3,835 | $4,218 | $3,835 |
Fair_Value_Details_Textual
Fair Value (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 28, 2013 | Dec. 29, 2012 | |
2013 Acquisitions [Member] | ||
Fair Value of Financial Instrument (Textual) [Abstract] | ||
Acquired Intangible Assets, Amount | 173,800,000 | |
Deferred Revenue | -8,200,000 | |
Intangible Assets [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | 2013 Acquisitions [Member] | ||
Fair Value of Financial Instrument (Textual) [Abstract] | ||
Fair Value Inputs, Discount Rate | 10.00% | |
Intangible Assets [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | 2013 Acquisitions [Member] | ||
Fair Value of Financial Instrument (Textual) [Abstract] | ||
Fair Value Inputs, Discount Rate | 15.00% | |
Deferred Revenue [Member] | Fair Value, Inputs, Level 3 [Member] | 2013 Acquisitions [Member] | ||
Fair Value of Financial Instrument (Textual) [Abstract] | ||
Fair Value Inputs, Discount Rate | 3.00% | |
Deferred Revenue [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | 2013 Acquisitions [Member] | ||
Fair Value of Financial Instrument (Textual) [Abstract] | ||
Fair Value Inputs, Estimated Profit Rate | 10.00% | |
Deferred Revenue [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | 2013 Acquisitions [Member] | ||
Fair Value of Financial Instrument (Textual) [Abstract] | ||
Fair Value Inputs, Estimated Profit Rate | 25.00% | |
Contingent Consideration Liability [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value of Financial Instrument (Textual) [Abstract] | ||
Fair Value Inputs, Discount Rate | 11.00% | 11.00% |
Contingent Consideration Liability [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value of Financial Instrument (Textual) [Abstract] | ||
Fair Value Inputs, Discount Rate | 16.00% | 16.00% |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents and Investments (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash, Cash Equivalents and Investments [Abstract] | ||||
Cash and cash equivalents | $620,403 | $726,357 | $649,099 | $601,602 |
Short-term investments | 96,019 | 100,704 | ||
Cash, cash equivalents, and short-term investments | $716,422 | $827,061 |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents and Investments (Details 1) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Classified as cash and cash equivalents | ||||
Cash and interest bearing deposits | $143,840 | $160,023 | ||
Money market funds | 475,563 | 566,334 | ||
Bank certificates of deposit | 1,000 | 0 | ||
Total cash and cash equivalents | $620,403 | $726,357 | $649,099 | $601,602 |
Cash_Cash_Equivalents_and_Inve4
Cash, Cash Equivalents and Investments (Details 2) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Dec. 29, 2012 |
Short-term investments | ||
Amortized Cost | $95,690 | $100,170 |
Gross Unrealized Gains | 345 | 545 |
Gross Unrealized Losses | -16 | -11 |
Fair Value | 96,019 | 100,704 |
Corporate debt securities [Member] | ||
Short-term investments | ||
Amortized Cost | 36,859 | 31,313 |
Gross Unrealized Gains | 33 | 57 |
Gross Unrealized Losses | -14 | -11 |
Fair Value | 36,878 | 31,359 |
Bank certificates of deposit [Member] | ||
Short-term investments | ||
Amortized Cost | 18,300 | 27,805 |
Gross Unrealized Gains | 13 | 21 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 18,313 | 27,826 |
US Treasury Securities [Member] | ||
Short-term investments | ||
Amortized Cost | 24,705 | 23,213 |
Gross Unrealized Gains | 34 | 26 |
Gross Unrealized Losses | -1 | 0 |
Fair Value | 24,738 | 23,239 |
US Government Corporations and Agencies Securities [Member] | ||
Short-term investments | ||
Amortized Cost | 11,215 | 10,245 |
Gross Unrealized Gains | 13 | 13 |
Gross Unrealized Losses | -1 | 0 |
Fair Value | 11,227 | 10,258 |
Commercial paper [Member] | ||
Short-term investments | ||
Amortized Cost | 2,794 | 5,777 |
Gross Unrealized Gains | 3 | 6 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,797 | 5,783 |
Marketable debt securities [Member] | ||
Short-term investments | ||
Amortized Cost | 93,873 | 98,353 |
Gross Unrealized Gains | 96 | 123 |
Gross Unrealized Losses | -16 | -11 |
Fair Value | 93,953 | 98,465 |
Marketable equity securities [Member] | ||
Short-term investments | ||
Amortized Cost | 1,817 | 1,817 |
Gross Unrealized Gains | 249 | 422 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $2,066 | $2,239 |
Cash_Cash_Equivalents_and_Inve5
Cash, Cash Equivalents and Investments (Details 3) (USD $) | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |
Contractual maturity of marketable debt investments | |
Marketable Investments, Debt Maturities, Within One Year, Amortized Cost | $48,949 |
Marketable Investments, Debt Maturities, Year One Through Three, Amortized Cost | 44,924 |
Marketable investments, Debt Maturities, Amortized Cost, Total | 93,873 |
Marketable Investments, Debt Maturities, Within One Year, Fair Value | 48,983 |
Marketable Investments, Debt Maturities, Year One Through Three, Fair Value | 44,970 |
Marketable Investments, Debt Maturities, Fair Value, Total | $93,953 |
Cash_Cash_Equivalents_and_Inve6
Cash, Cash Equivalents and Investments (Details 4) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Carrying value of non-marketable investments | ||
Cost method | $3,038 | $3,038 |
Equity method | 3,648 | 4,249 |
Total non-marketable investments | $6,686 | $7,287 |
Cash_Cash_Equivalents_and_Inve7
Cash, Cash Equivalents and Investments (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Summary of realized gains from sale of marketable securities | ||||
Gains on sale of marketable debt and equity securities, net | $1,363 | $8 | $1,339 | $123 |
Summary of realized gains from sale of non-marketable securities | ||||
Gains on sale of non-marketable investments, net | $6 | $0 | $1,196 | $0 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income | $38,500 | $58,584 | $126,538 | $126,074 |
Weighted-average common shares used to calculate basic net income per share (in shares) | 278,977 | 271,350 | 277,034 | 269,643 |
2023 Notes | 9 | 11 | 11 | 11 |
2015 Warrants | 11,587 | 6,286 | 11,042 | 3,148 |
Share-based awards | 6,385 | 5,681 | 6,444 | 5,958 |
Weighted average common shares used to calculate diluted net income per share (in shares) | 296,958 | 283,328 | 294,531 | 278,760 |
Net income per share - basic (in usd per share) | $0.14 | $0.22 | $0.46 | $0.47 |
Net income per share - diluted (in usd per share) | $0.13 | $0.21 | $0.43 | $0.45 |
Net_Income_Per_Share_Details_1
Net Income Per Share (Details 1) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Potential shares of Cadence's common stock excluded | ||||
Total potential common shares excluded | 15,749 | 16,843 | 13,977 | 19,679 |
2013 Warrants | ||||
Potential shares of Cadence's common stock excluded | ||||
Total potential common shares excluded | 6,830 | 6,830 | 6,830 | 6,830 |
Options to purchase shares of common stock | ||||
Potential shares of Cadence's common stock excluded | ||||
Total potential common shares excluded | 5,639 | 10,003 | 6,048 | 12,767 |
Non-vested shares of restricted stock | ||||
Potential shares of Cadence's common stock excluded | ||||
Total potential common shares excluded | 3,280 | 10 | 1,099 | 82 |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details 1) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated other comprehensive income | ||
Foreign currency translation gain | $25,345 | $48,653 |
Changes in defined benefit plan liabilities | -4,781 | -5,229 |
Unrealized holding gains on available-for-sale securities | 320 | 526 |
Total accumulated other comprehensive income | $20,884 | $43,950 |
Contingencies_Details_Textual
Contingencies (Details Textual) | 9 Months Ended |
Sep. 28, 2013 | |
Contingencies (Textual) [Abstract] | |
General period of warranty on sales of hardware products | 90 days |
Other_Income_Net_Details
Other Income, Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Other Income, Net | ||||
Interest income | $366 | $399 | $1,275 | $1,024 |
Gains on sale of marketable debt and equity securities, net | 1,363 | 8 | 1,339 | 123 |
Gains on sale of non-marketable investments, net | 6 | 0 | 1,196 | 0 |
Gains (losses) on securities in NQDC trust | 206 | -839 | 2,057 | 3,237 |
Gains on foreign exchange | 489 | 1,376 | 1,476 | 2,546 |
Write-down of non-marketable investments | 0 | -1,081 | -464 | -1,103 |
Other income (expense), net | 105 | 6 | -151 | 145 |
Total other income (expense), net | $2,535 | ($131) | $6,728 | $5,972 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ||||
Total revenue | $366,647 | $338,533 | $1,083,394 | $980,839 |
Americas: | ||||
Total Americas | 175,337 | 146,242 | 493,918 | 433,547 |
United States [Member] | ||||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ||||
Geographic Areas, revenue from External Customers | 168,125 | 141,509 | 476,525 | 414,888 |
Other Americas [Member] | ||||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ||||
Geographic Areas, revenue from External Customers | 7,212 | 4,733 | 17,393 | 18,659 |
EMEA [Member] | ||||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ||||
Geographic Areas, revenue from External Customers | 72,376 | 66,392 | 229,053 | 191,097 |
Japan [Member] | ||||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ||||
Geographic Areas, revenue from External Customers | 45,853 | 58,757 | 144,794 | 168,856 |
Asia [Member] | ||||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ||||
Geographic Areas, revenue from External Customers | $73,081 | $67,142 | $215,629 | $187,339 |
Segment_Reporting_Details_1
Segment Reporting (Details 1) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Summary of long-lived assets by geography | ||
Total long-lived assets | $241,965 | $244,439 |
Americas: | ||
Total Americas | 210,113 | 214,896 |
United States [Member] | ||
Summary of long-lived assets by geography | ||
Long-Lived Assets in Individual Foreign Countries | 209,783 | 214,711 |
Other Americas [Member] | ||
Summary of long-lived assets by geography | ||
Long-Lived Assets in Individual Foreign Countries | 330 | 185 |
EMEA [Member] | ||
Summary of long-lived assets by geography | ||
Long-Lived Assets in Individual Foreign Countries | 6,354 | 5,410 |
Japan [Member] | ||
Summary of long-lived assets by geography | ||
Long-Lived Assets in Individual Foreign Countries | 974 | 1,649 |
Asia [Member] | ||
Summary of long-lived assets by geography | ||
Long-Lived Assets in Individual Foreign Countries | $24,524 | $22,484 |