Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Feb. 01, 2014 | Jun. 29, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'CADENCE DESIGN SYSTEMS INC | ' | ' |
Entity Central Index Key | '0000813672 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $4,111,472,399 |
Entity Common Stock, Shares Outstanding | ' | 289,094,199 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $536,260 | $726,357 |
Short-term investments | 96,788 | 100,704 |
Receivables, net of allowances of $0 and $85, respectively | 107,624 | 97,821 |
Inventories | 50,220 | 36,163 |
2015 notes hedges | 306,817 | 303,154 |
Prepaid expenses and other | 123,382 | 127,036 |
Total current assets | 1,221,091 | 1,391,235 |
Property, plant and equipment, net | 238,715 | 244,439 |
Goodwill | 456,905 | 233,266 |
Acquired intangibles, net | 311,693 | 184,938 |
Long-term receivables | 3,672 | 7,559 |
Other assets | 196,525 | 225,566 |
Total assets | 2,428,601 | 2,287,003 |
Current liabilities: | ' | ' |
Convertible notes | 324,826 | 447,011 |
2015 notes embedded conversion derivative | 306,817 | 303,154 |
Accounts payable and accrued liabilities | 216,594 | 171,318 |
Current portion of deferred revenue | 299,973 | 295,787 |
Total current liabilities | 1,148,210 | 1,217,270 |
Long-term liabilities: | ' | ' |
Long-term portion of deferred revenue | 52,850 | 50,529 |
Other long-term liabilities | 71,436 | 104,033 |
Total long-term liabilities | 124,286 | 154,562 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock - $0.01 par value; authorized 400 shares, none issued or outstanding | 0 | 0 |
Common stock - $0.01 par value; authorized 600,000 shares; issued and outstanding shares: 288,133 as of December 28, 2013; 280,644 as of December 29, 2012 | 1,757,242 | 1,721,556 |
Treasury stock, at cost; 17,905 shares as of December 28, 2013; 25,394 shares as of December 29, 2012 | -140,142 | -200,786 |
Accumulated deficit | -485,306 | -649,549 |
Accumulated other comprehensive income | 24,311 | 43,950 |
Total stockholders' equity | 1,156,105 | 915,171 |
Total liabilities and stockholders' equity | $2,428,601 | $2,287,003 |
Consolidated_Income_Statements
Consolidated Income Statements (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Revenue: | ' | ' | ' |
Product and maintenance | $1,357,934 | $1,212,429 | $1,033,143 |
Services | 102,182 | 113,995 | 116,692 |
Total revenue | 1,460,116 | 1,326,424 | 1,149,835 |
Costs and expenses: | ' | ' | ' |
Cost of product and maintenance | 132,245 | 118,516 | 113,658 |
Cost of service | 67,956 | 72,607 | 81,498 |
Marketing and sales | 378,157 | 342,278 | 323,798 |
Research and development | 534,022 | 454,085 | 400,745 |
General and administrative | 121,314 | 112,076 | 92,863 |
Amortization of acquired intangibles | 19,416 | 15,077 | 16,536 |
Restructuring and other charges | 17,999 | 113 | 360 |
Total costs and expenses | 1,271,109 | 1,114,752 | 1,029,458 |
Income from operations | 189,007 | 211,672 | 120,377 |
Interest expense | -37,581 | -34,742 | -43,025 |
Other income, net | 7,570 | 11,341 | 18,074 |
Income before provision (benefit) for income taxes | 158,996 | 188,271 | 95,426 |
Provision (benefit) for income taxes | -5,247 | -251,677 | 23,197 |
Net income | $164,243 | $439,948 | $72,229 |
Net income per share - basic (in usd per share) | $0.59 | $1.63 | $0.27 |
Net income per share - diluted (in usd per share) | $0.56 | $1.57 | $0.27 |
Weighted average common shares outstanding - basic (shares) | 277,796 | 270,479 | 263,892 |
Weighted average common shares outstanding - diluted (shares) | 294,564 | 280,667 | 270,816 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for receivables | $0 | $85 |
Preferred stock par value (in usd per share) | $0.01 | $0.01 |
Preferred stock shares authorized (in shares) | 400,000 | 400,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock shares issued (in shares) | 288,133,000 | 280,644,000 |
Common stock shares outstanding (in shares) | 288,133,000 | 280,644,000 |
Treasury stock (in shares) | 17,905,000 | 25,394,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $164,243 | $439,948 | $72,229 |
Other comprehensive loss, net of tax effects: | ' | ' | ' |
Foreign currency translation adjustments | -21,470 | -5,337 | 2,731 |
Changes in unrealized holding gains or losses on available-for-sale securities, net of reclassification adjustments for realized gains and losses | -180 | -905 | -5,140 |
Changes in defined benefit plan liabilities | 2,011 | -761 | 306 |
Total other comprehensive loss, net of tax effects | -19,639 | -7,003 | -2,103 |
Comprehensive income | $144,604 | $432,945 | $70,126 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock, Shares | Common Stock, Par Value and Capital in Excess of Par | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income |
In Thousands, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Beginning balance at Jan. 01, 2011 | $276,654 | ' | $1,715,541 | ($353,090) | ($1,138,853) | $53,056 |
Beginning balance, shares at Jan. 01, 2011 | ' | 267,116 | ' | ' | ' | ' |
Comprehensive income | ' | ' | ' | ' | ' | ' |
Net income | 72,229 | ' | ' | ' | 72,229 | ' |
Other comprehensive loss, net of taxes | -2,103 | ' | ' | ' | ' | -2,103 |
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures | 19,714 | ' | -38,844 | 75,179 | -16,621 | ' |
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares | ' | 6,804 | ' | ' | ' | ' |
Stock received for payment of employee taxes on vesting of restricted stock | -14,225 | ' | -1,674 | -12,551 | ' | ' |
Stock received for payment of employee taxes on vesting of restricted stock, shares | ' | -1,240 | ' | ' | ' | ' |
Tax effect related to employee stock transactions allocated to equity | 5,403 | ' | 5,403 | ' | ' | ' |
Stock options assumed in acquisitions | 1,599 | ' | 1,599 | ' | ' | ' |
Stock-based compensation expense | 43,588 | ' | 43,588 | ' | ' | ' |
Unrecognized tax benefit adjustment | 8,271 | ' | 8,271 | ' | ' | ' |
Ending balance at Dec. 31, 2011 | 411,130 | ' | 1,733,884 | -290,462 | -1,083,245 | 50,953 |
Ending balance, shares at Dec. 31, 2011 | ' | 272,680 | ' | ' | ' | ' |
Comprehensive income | ' | ' | ' | ' | ' | ' |
Net income | 439,948 | ' | ' | ' | 439,948 | ' |
Other comprehensive loss, net of taxes | -7,003 | ' | ' | ' | ' | -7,003 |
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures | 32,687 | ' | -64,384 | 103,323 | -6,252 | ' |
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares | ' | 9,101 | ' | ' | ' | ' |
Stock received for payment of employee taxes on vesting of restricted stock | -15,728 | ' | -2,081 | -13,647 | ' | ' |
Stock received for payment of employee taxes on vesting of restricted stock, shares | ' | -1,137 | ' | ' | ' | ' |
Tax effect related to employee stock transactions allocated to equity | 6,576 | ' | 6,576 | ' | ' | ' |
Stock-based compensation expense | 47,561 | ' | 47,561 | ' | ' | ' |
Ending balance at Dec. 29, 2012 | 915,171 | ' | 1,721,556 | -200,786 | -649,549 | 43,950 |
Ending balance, shares at Dec. 29, 2012 | 280,644 | 280,644 | ' | ' | ' | ' |
Comprehensive income | ' | ' | ' | ' | ' | ' |
Net income | 164,243 | ' | ' | ' | 164,243 | ' |
Other comprehensive loss, net of taxes | -19,639 | ' | ' | ' | ' | -19,639 |
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures | 42,657 | ' | -35,541 | 78,198 | 0 | ' |
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares | ' | 8,726 | ' | ' | ' | ' |
Stock received for payment of employee taxes on vesting of restricted stock | -20,140 | ' | -2,586 | -17,554 | ' | ' |
Stock received for payment of employee taxes on vesting of restricted stock, shares | ' | -1,237 | ' | ' | ' | ' |
Tax effect related to employee stock transactions allocated to equity | 6,999 | ' | 6,999 | ' | ' | ' |
Stock options assumed in acquisitions | 529 | ' | 529 | ' | ' | ' |
Stock-based compensation expense | 66,285 | ' | 66,285 | ' | ' | ' |
Ending balance at Dec. 28, 2013 | $1,156,105 | ' | $1,757,242 | ($140,142) | ($485,306) | $24,311 |
Ending balance, shares at Dec. 28, 2013 | 288,133 | 288,133 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Statement of Cash Flows [Abstract] | ' | ' | ' |
Cash and cash equivalents at beginning of year | $726,357 | $601,602 | $557,409 |
Cash flows from operating activities: | ' | ' | ' |
Net income | 164,243 | 439,948 | 72,229 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 98,308 | 89,217 | 91,648 |
Amortization of debt discount and fees | 25,384 | 23,513 | 29,266 |
Stock-based compensation | 66,285 | 47,561 | 43,588 |
Gain on investments, net | -5,311 | -6,320 | -15,737 |
Tax impact of convertible notes interest | 0 | 0 | 8,486 |
Deferred income taxes | -2,366 | -240,424 | -7,811 |
Provisions (recoveries) for losses (gains) on receivables, net | -85 | 215 | -6,596 |
Other non-cash items | 4,017 | 3,315 | 3,436 |
Changes in operating assets and liabilities, net of effect of acquired businesses: | ' | ' | ' |
Receivables | -3,609 | 45,630 | 76,785 |
Inventories | -14,594 | 5,245 | -6,820 |
Prepaid expenses and other | 30,368 | -12,426 | 20,053 |
Other assets | -2,530 | -4,902 | -2,220 |
Accounts payable and accrued liabilities | 41,727 | 17,523 | -46,950 |
Deferred revenue | 2,506 | -69,662 | -13,408 |
Other long-term liabilities | -36,738 | -22,439 | -5,607 |
Net cash provided by operating activities | 367,605 | 315,994 | 240,342 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of available-for-sale securities | -111,702 | -121,154 | 0 |
Proceeds from the sale of available-for-sale securities | 77,621 | 18,338 | 9,793 |
Proceeds from the maturity of available-for-sale securities | 38,706 | 4,150 | 0 |
Proceeds from the sale of long-term investments | 6,234 | 74 | 9,791 |
Purchases of property, plant and equipment | -44,929 | -35,966 | -31,421 |
Investment in venture capital partnerships and equity investments | 0 | -250 | -608 |
Cash paid in business combinations and asset acquisitions, net of cash acquired | -392,825 | -66,432 | -44,052 |
Net cash used for investing activities | -426,895 | -201,240 | -56,497 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from revolving credit facility | 100,000 | 0 | 0 |
Payment on revolving credit facility | -100,000 | 0 | 0 |
Payment of convertible notes | -144,639 | 0 | -150,000 |
Principal payments on receivable financing | -2,526 | -5,776 | -5,842 |
Payment of debt issuance costs | 0 | -1,372 | 0 |
Payment of acquisition-related contingent consideration | -677 | -39 | 0 |
Tax effect related to employee stock transactions allocated to equity | 9,034 | 6,061 | 5,549 |
Proceeds from issuance of common stock | 42,657 | 32,687 | 19,714 |
Stock received for payment of employee taxes on vesting of restricted stock | -20,140 | -15,728 | -14,225 |
Net cash provided by (used for) financing activities | -116,291 | 15,833 | -144,804 |
Effect of exchange rate changes on cash and cash equivalents | -14,516 | -5,832 | 5,152 |
Increase (decrease) in cash and cash equivalents | -190,097 | 124,755 | 44,193 |
Cash and cash equivalents at end of year | 536,260 | 726,357 | 601,602 |
Supplemental cash flow information: | ' | ' | ' |
Cash paid for interest | 12,429 | 11,354 | 13,417 |
Cash paid (received) for income taxes, net | -3,084 | 18,637 | 18,961 |
Non-cash investing and financing activities: | ' | ' | ' |
Stock options assumed in acquisitions | 529 | 0 | 1,599 |
Available-for-sale securities received from customer | 240 | 20 | 352 |
Receivables related to sales of cost-method investments | $0 | $4,911 | $0 |
Business_Overview
Business Overview | 12 Months Ended |
Dec. 28, 2013 | |
Accounting Policies [Abstract] | ' |
BUSINESS OVERVIEW | ' |
BUSINESS OVERVIEW | |
Cadence Design Systems, Inc., or Cadence, develops solutions that its customers use to design increasingly small and complex integrated circuits, or ICs, and electronic devices. Cadence's solutions are designed to help its customers reduce the time to bring an IC or electronic device to market and to reduce their design, development and manufacturing costs. Cadence's product offerings include electronic design automation, or EDA, software, emulation hardware, and two categories of intellectual property, or IP, commonly referred to as verification IP, or VIP, and design IP. Cadence provides maintenance for its software, hardware and IP product offerings. Cadence also provides engineering services related to methodology, education, hosted design solutions and design services for advanced ICs and development of custom IP, which help its customers manage and accelerate their electronics product development processes. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 28, 2013 | ||
Accounting Policies [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Principles of Consolidation and Basis of Presentation | ||
Cadence's fiscal year-end is the Saturday closest to December 31. The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. In the consolidated income statements for the three fiscal years ended December 28, 2013, During fiscal 2013, Cadence combined product and maintenance revenue into a single caption on the consolidated income statements 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 the current period presentation. | ||
Use of Estimates | ||
Preparation of the 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||
Cash, Cash Equivalents and Short-Term Investments | ||
Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents. Cadence's short-term investments include marketable debt securities with original maturities greater than three months on the date of purchase and marketable equity securities. Cadence considers its entire portfolio of marketable debt and equity securities to be available for sale and available to fund current operations. Available-for-sale debt and equity securities are carried at fair value, with the unrealized gains and losses presented net of tax as a separate component of other comprehensive income. Unrealized and realized gains and losses are determined using the specific identification method. | ||
Cadence recognizes gains on its available-for-sale securities when they are realized. Cadence recognizes losses on its available-for-sale securities when they are realized or when Cadence has determined that an other-than-temporary decline in fair value has occurred. For an available-for-sale debt security, an other-than-temporary decline in fair value has occurred when the security's fair value is less than its amortized cost basis and Cadence intends to sell the security, or it is more likely than not that Cadence will be required to sell the security before recovery of its amortized cost basis. Cadence records realized gains, realized losses and other-than-temporary impairments as part of other income, net in the consolidated income statements. | ||
Foreign Operations | ||
Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence's consolidated entities operating in the United States and certain foreign subsidiaries. The functional currency for Cadence's other consolidated entities operating outside of the United States is generally the local country's currency. | ||
Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using the average exchange rate for the period. Cadence includes translation adjustments from foreign exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders' equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in the consolidated income statements. | ||
Revenue Recognition | ||
Software and IP Revenue Recognition | ||
Cadence licenses its software and IP products using three different license types: | ||
• | Term licenses; | |
• | Subscription licenses; and | |
• | Perpetual licenses. | |
Term licenses - Cadence's term license arrangements offer customers the right to: | ||
• | Access and use all products delivered at the outset of an arrangement throughout the entire term of the arrangement, generally two to three years, with no rights to return; and | |
• | Remix among the products delivered at the outset of the arrangement, so long as the cumulative contractual value of all products in use does not exceed the total license fee determined at the outset of the arrangement. | |
Subscription licenses - In addition to the rights of a term license, Cadence's subscription license arrangements also offer customers the right to: | ||
• | Use unspecified additional products that become commercially available during the term of the arrangement; and | |
• | Remix into other unspecified additional products that may become available during the term of the arrangement, so long as the cumulative contractual value of all products in use does not exceed the total license fee determined at the outset of the arrangement. | |
Perpetual licenses - Cadence's perpetual licenses consist of software licensed on a perpetual basis with no right to return or ability to remix the licensed software. Cadence licenses its design IP under a perpetual license on a per-design basis. | ||
In general, where vendor specific objective evidence of fair value, or VSOE, does not exist for any undelivered element, product and maintenance revenue associated with term and subscription licenses is recognized ratably over the term of the license, commencing upon the later of the effective date of the arrangement or delivery of the licensed product. In general, product revenue associated with term licenses where VSOE exists for the undelivered maintenance is recognized upon the later of the effective date of the arrangement or delivery of the licensed product, and maintenance revenue is recognized ratably over the maintenance term. | ||
In general, product revenue associated with perpetual licenses where VSOE exists for the undelivered maintenance is recognized upon delivery of the licensed product and maintenance revenue is recognized ratably over the maintenance term. If VSOE does not exist for the undelivered maintenance in a perpetual license, product revenue is recognized ratably over the maintenance term. | ||
Hardware Revenue Recognition | ||
Cadence generally has a minimum of two deliverables in arrangements involving the sale or lease of its hardware products. The first deliverable is the hardware product and software essential to the functionality of the hardware product, and the second deliverable is the right to receive maintenance on the hardware product and its software. Cadence allocates consideration between these deliverables based on the relative standalone selling price for each deliverable. Consideration allocated to the hardware product and its essential software is recognized as revenue at the time of delivery provided all other conditions for revenue recognition have been met. Consideration allocated to maintenance is recognized as revenue ratably over the maintenance term. | ||
Services Revenue Recognition | ||
Services revenue primarily consists of revenue received for performing engineering services. These services are generally not related to the functionality of the products licensed. In certain instances, Cadence will customize its IP on a fixed fee basis. Revenue from service contracts is recognized either on the time and materials method, as work is performed, or on the percentage-of-completion method. If a service contract is considered to be part of a multiple element arrangement, or MEA, that includes a software contract, revenue is generally recognized ratably over the duration of the software contract. For contracts with fixed or not-to-exceed fees, Cadence estimates on a monthly basis the percentage-of-completion based on the completion of milestones relating to the arrangement. Cadence has a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. If different conditions were to prevail such that accurate estimates could not be made, then the use of the completed contract method would be required and the recognition of all revenue and costs would be deferred until the project was completed. Such a change could have a material impact on Cadence's results of operations. | ||
Revenue Recognition Criteria | ||
Although the timing and amount of revenue recognition differs based on the deliverables in each arrangement, Cadence begins revenue recognition for an arrangement when persuasive evidence of an arrangement exists, all specified deliverables have been delivered, the fee is fixed or determinable, and collection of the resulting receivable is probable. | ||
Persuasive evidence of an arrangement - Generally, Cadence uses a contract signed by the customer as evidence of an arrangement for subscription and term licenses, licenses of its IP products and hardware leases. If a contract signed by the customer does not exist, Cadence has historically used a purchase order as evidence of an arrangement for software perpetual licenses, hardware sales, maintenance renewals and small fixed-price service projects, such as training classes and small methodology service engagements. For all other service engagements, Cadence uses a signed professional services agreement and a statement of work to evidence an arrangement. In cases where both a signed contract and a purchase order exist, Cadence considers the signed contract to be the most persuasive evidence of the arrangement. Sales through Cadence's distributors are evidenced by a master agreement governing the relationship, together with binding purchase orders from the distributor on a transaction-by-transaction basis. | ||
Product delivery - Software and VIP, and the corresponding access keys are generally delivered to customers electronically. Electronic delivery occurs when Cadence provides the customer access to the software. Occasionally, Cadence will deliver software on a DVD with standard transfer terms of free-on-board, or F.O.B., shipping point. Design IP is also delivered electronically via download from a secure site. Cadence's software and IP license agreements generally do not contain conditions for acceptance. Delivery of an entire hardware system is deemed to occur upon its successful installation. For certain hardware products, installation is the responsibility of the customer, as the system is fully functional at the time of shipment and delivery is deemed to be complete when the products are shipped with freight terms of F.O.B. shipping point. | ||
Fee is fixed or determinable - Cadence assesses whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. Cadence has established a history of collecting under the original contract without providing concessions on payments, products or services. For installment contracts that do not include a substantial up-front payment, Cadence only considers that a fee is fixed or determinable if the arrangement has payment periods that are equal to or less than the term of the licenses and the payments are collected in equal or nearly equal installments, when evaluated over the entire term of the arrangement. Cadence has a history of collecting receivables under software installment contracts of up to five years for which the fee has been assessed as fixed or determinable. | ||
Significant judgment is involved in assessing whether a fee is fixed or determinable. Cadence must also make these judgments when assessing whether a contract amendment to a term arrangement (primarily in the context of a license extension or renewal) constitutes a concession. Cadence's experience has been that it is able to determine whether a fee is fixed or determinable. While Cadence does not expect that experience to change, if Cadence no longer were to have a history of collecting under the original contract without providing concessions, revenue would be required to be recognized when payments become due and payable. Such a change could have a material impact on Cadence's results of operations. | ||
Collection is probable - Cadence assesses the probability of collecting from each customer at the outset of the arrangement based on a number of factors, including the customer's payment history, its current creditworthiness and geographic location. If in Cadence's judgment collection of a fee is not probable, Cadence does not record revenue until the uncertainty is removed, which is generally upon receipt of cash payment. | ||
Multiple Element Arrangements | ||
An MEA is any arrangement that includes or contemplates rights for a combination of software, IP or hardware products, services, training or maintenance in a single arrangement. From time to time, Cadence may include individual deliverables in separately priced and separately executed contracts with the same customer. Cadence evaluates all relevant facts and circumstances in determining whether the separate contracts should be accounted for individually as distinct arrangements or whether the separate contracts are, in substance, an MEA. Significant judgment is involved in determining whether a group of contracts might be so closely related that they are, in effect, part of a single arrangement. Cadence's judgments about whether several contracts together comprise an MEA can affect the timing of revenue recognition under those contracts, which could have an effect on its results of operations for the periods involved. | ||
For an MEA that includes software and nonsoftware elements, Cadence allocates consideration to all software elements as a group and all nonsoftware elements based on their relative standalone selling prices. In these circumstances, Cadence is required to use a hierarchy to determine the standalone selling price to be used for allocating consideration to deliverables as follows: | ||
• | Vendor specific objective evidence of fair value, or VSOE; | |
• | Third-party evidence of selling price, or TPE; and | |
• | Best estimate of the selling price, or BESP. | |
Vendor-specific objective evidence of fair value - Cadence's VSOE for maintenance is based upon the customer's stated annual renewal rates and VSOE for services is based on the price charged when the services are sold separately. Cadence has not established VSOE for certain products, including software and IP licenses and hardware products, or for annual maintenance that is not cancellable by the customer. | ||
Third-party evidence of selling price - TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, Cadence's offerings contain significant differentiation such that comparable pricing of products with similar functionality cannot be obtained. Furthermore, Cadence is unable to reliably determine what similar competitor products' selling prices are when those products are sold on a standalone basis. Therefore, Cadence typically is not able to obtain TPE and TPE is not used to determine any standalone selling prices. | ||
Best estimate of the selling price - Cadence calculates the BESP of its hardware products based on its pricing practices, including the historical average prices charged for comparable hardware products. Cadence's process for determining BESP for its software deliverables takes into account multiple factors that vary depending upon the unique facts and circumstances related to each deliverable. Key external and internal factors considered in developing the BESPs include prices charged by Cadence for similar arrangements, historical pricing practices and the nature of the product. In addition, when developing BESPs, Cadence may consider other factors as appropriate, including the pricing of competitive alternatives if they exist, and product-specific business objectives. | ||
For MEAs that contain software and nonsoftware elements, Cadence allocates the consideration to software or software-related elements as a group, and to any nonsoftware element separately based on the standalone selling price hierarchy. The consideration allocated to each element is then recognized as revenue when the basic revenue recognition criteria are met for each element. Once the consideration is allocated to the group of software and software-related elements, it then follows the recognition principles of software revenue recognition accounting standards. | ||
For MEAs involving only software and software-related deliverables, VSOE must exist to allocate the total fee among all delivered and undelivered elements, or if VSOE of all undelivered elements exists, revenue is recognized using the residual method. Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized up-front as the elements are delivered. If VSOE does not exist for all elements to support the allocation of the total fee among all elements of the arrangement, or if VSOE does not exist for all undelivered elements to apply the residual method, revenue is recognized ratably over the term of the undelivered elements. | ||
Other Factors Regarding Revenue Recognition | ||
Taxes collected from customers and remitted to governmental authorities - Cadence applies the net basis presentation for taxes collected from customers and remitted to governmental authorities. | ||
Derivative Financial Instruments | ||
Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income, net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less. | ||
Receivables | ||
Cadence's receivables, net includes invoiced accounts receivable and the current portion of unbilled installment contract receivables. Installment contract receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time. Cadence's accounts receivable and installment contract receivables were initially recorded at fair value. Cadence discounts the total product portion of each customer arrangement to reflect the interest component of the arrangement and amortizes the interest component of the transaction. The interest component is recognized as product and maintenance revenue over the period in which payments are made and balances are outstanding, using a method that approximates the effective interest method. Cadence determines the discount rate at the outset of the arrangement based upon the credit rating of the customer at that time. Cadence resets the discount rate periodically considering changes in prevailing interest rates but does not adjust previously discounted balances. Cadence's long-term receivables balance includes installment contract receivable balances to be invoiced more than one year after each balance sheet date. | ||
Allowances for Doubtful Accounts | ||
Each fiscal quarter, Cadence assesses its ability to collect outstanding receivables, and provides allowances for a portion of its receivables when collection is not probable. Cadence analyzes the creditworthiness of its customers, historical experience, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions are made based upon a specific review of customer receivables and are recorded in operating expenses. | ||
Inventories | ||
Inventories are stated at the lower of cost or market value. Cadence's inventories include high technology parts and components for complex hardware systems that emulate the performance and operation of computer IC and electronics systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to minimize the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term. Cadence's policy is to reserve for inventory in excess of 12-month demand or for other known obsolescence or realization issues. | ||
Due to the complex nature of Cadence's emulation systems, Cadence purchases certain inventory components from sole suppliers. As a result, Cadence may be exposed to the risk of delays in receiving these components due to its reliance on single suppliers and due to manufacturing constraints or other delays in the manufacturing process. | ||
Property, Plant and Equipment | ||
Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows: | ||
Computer equipment and related software | 2-7 years | |
Buildings | 25-32 years | |
Leasehold improvements | Shorter of the lease term | |
or the estimated useful life | ||
Building improvements and land improvements | Estimated useful life | |
Furniture and fixtures | 3-5 years | |
Equipment | 3-5 years | |
Cadence capitalizes certain costs of software developed for internal use. Capitalization of software developed for internal use begins at the application development phase of the project. Amortization begins when the computer software is substantially complete and ready for its intended use. Amortization is recorded on a straight-line basis over the estimated useful life. Cadence capitalized costs of software developed for internal use of $4.7 million, $7.7 million, and $4.0 million during fiscal 2013, 2012 and 2011, respectively. | ||
Cadence recorded depreciation and amortization expense of $49.5 million, $55.0 million and $55.3 million during fiscal 2013, 2012 and 2011, respectively, for property, plant and equipment. | ||
Software Development Costs | ||
Software development costs are capitalized beginning when a product's technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence's products has typically been of short duration. Costs incurred during fiscal 2013, 2012 and 2011 were not material. | ||
Goodwill | ||
Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence's single reporting unit may be less than its carrying amount. Cadence's goodwill impairment test consists of two steps. The first step requires that Cadence compare the estimated fair value of its single reporting unit to the carrying value of the reporting unit's net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to complete the second step of the test by analyzing the fair value of its goodwill. If the carrying value of the goodwill exceeds its fair value, an impairment charge is recorded. | ||
Long-Lived Assets, Including Acquired Intangibles | ||
Cadence's definite-lived, long-lived assets consist of property, plant and equipment and other acquired intangibles. Acquired intangibles with definite lives are amortized on a straight-line basis over the remaining estimated economic life of the underlying products and technologies, which range from one to fourteen years. Cadence reviews its definite-lived, long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value. | ||
Non-Marketable Investments | ||
Cadence's non-marketable investments include its investments in privately-held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using either the cost method or the equity method of accounting. Cadence reviews the fair value of its non-marketable investments on a regular basis to determine whether the investments in these companies are other-than-temporarily impaired. Cadence considers investee financial performance and other information received from the investee companies, as well as any other available estimates of the fair value of the investee companies in its review. If Cadence determines the carrying value of an investment exceeds its fair value, and that difference is other than temporary, Cadence writes down the value of the investment to its fair value. Cadence records investment write-downs in other income, net, in the consolidated income statements. | ||
Nonqualified Deferred Compensation Trust | ||
Executive officers, senior management and members of Cadence's Board of Directors may elect to defer compensation payable to them under Cadence's Nonqualified Deferred Compensation Plan, or the NQDC. Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. | ||
The selected investments held in the NQDC accounts are classified as trading securities. Trading securities are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income, net. These trading securities are classified in other assets in the consolidated balance sheets because the securities are not available for Cadence's use in its operations. | ||
Cadence's obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements. | ||
Deferred Revenue | ||
Deferred revenue arises when customers are billed for products or services in advance of revenue recognition. Cadence's deferred revenue consists primarily of unearned revenue on product licenses and the related maintenance for which revenue is recognized over the duration of the license. The fees under product licenses for which revenue is not recognized immediately and for maintenance in connection with term and subscription licenses are generally billed quarterly in advance and the related revenue is recognized over multiple periods over the ensuing license period. Maintenance on perpetual licenses is generally renewed annually, billed in full in advance, and the corresponding revenue is recognized over the 12-month maintenance term. | ||
Comprehensive Income | ||
Other comprehensive income (loss) is reported as a component of stockholders' equity and includes foreign currency translation gains and losses, changes in defined benefit plan liabilities, and unrealized gains and losses on marketable securities that are available for sale. Cadence reports comprehensive income (loss) in the consolidated statements of comprehensive income. | ||
Accounting for Income Taxes | ||
Cadence accounts for the effect of income taxes in its consolidated financial statements using the asset and liability method. This process involves estimating actual current tax liabilities together with assessing carryforwards and temporary differences resulting from differing treatment of items, such as depreciation, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, measured using enacted tax rates expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. | ||
Cadence then records a valuation allowance to reduce the deferred tax assets to the amount that Cadence believes is more likely than not to be realized based on its judgment of all available positive and negative evidence. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. This assessment, which is completed on a taxing jurisdiction basis, takes into account a number of types of evidence, including the following: | ||
• | The nature, frequency and severity of current or cumulative financial reporting income or losses; | |
• | Sources of future taxable income; | |
• | The anticipated reversal or expiration dates of the deferred tax assets; and | |
• | Tax planning strategies. | |
Cadence takes a two-step approach to recognizing and measuring the financial statement benefit of uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon effective settlement of the audit. Cadence classifies interest and penalties on unrecognized tax benefits as income tax expense or benefit. | ||
Restructuring Charges | ||
Cadence records personnel-related restructuring charges with customary termination benefits when the costs are both probable and estimable. Cadence records personnel-related restructuring charges with non-standard termination benefits when the plan has been communicated to the affected employees. Cadence records facilities-related restructuring charges in the period in which the affected facilities are vacated. In connection with facilities-related restructuring plans, Cadence has made a number of estimates and assumptions related to losses on excess facilities that have been vacated or consolidated, particularly the timing of subleases and sublease terms. Closure and space reduction costs included in the restructuring charges include payments required under leases less any applicable estimated sublease income after the facilities are abandoned, lease buyout costs and certain contractual costs to maintain facilities during the period after abandonment. | ||
In addition, Cadence has recorded estimated provisions for termination benefits and outplacement costs, long-term asset impairments and other restructuring costs. Cadence regularly evaluates the adequacy of its lease losses, severance and related benefits accruals, and adjusts the balances based on actual costs incurred or changes in estimates and assumptions. Subsequent adjustments to restructuring accruals are classified in restructuring and other charges in the consolidated income statements. | ||
Stock-Based Compensation | ||
Cadence recognizes the cost of employee services received in exchange for awards of equity instruments as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the award and is recognized as expense, less expected forfeitures, over the requisite service period, which is typically the vesting period. Cadence recognizes stock-based compensation expense on the straight-line method for awards that only contain a service condition and on the graded-vesting method for awards that contain both a service and performance condition. | ||
Treasury Stock | ||
Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders' equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of accumulated deficit in the consolidated statements of stockholders' equity. There were no losses recorded by Cadence on the reissuance of treasury stock during fiscal 2013. Cadence recorded losses on the reissuance of treasury stock as a component of accumulated deficit of $6.3 million and $16.6 million during fiscal 2012 and 2011, respectively. | ||
Concentrations of Credit Risk | ||
Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, short-term investments, long-term investments, accounts receivable and forward contracts. Cadence's short-term investments include debt securities issued by financial institutions, corporations, the United States Treasury and other United States government agencies. | ||
Credit exposure related to Cadence's foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. | ||
Cadence is party to certain hedge transactions related to its 2.625% Cash Convertible Senior Notes Due 2015, or the 2015 Notes. Cadence is subject to the risk that the counterparties to these hedge transactions may not be able to fulfill their obligations under these hedge transactions. | ||
Advertising | ||
Cadence expenses the costs of advertising as incurred. Total advertising expense, including marketing programs and events, was $7.4 million, $7.2 million and $7.5 million during fiscal 2013, 2012 and 2011, respectively, and is included in marketing and sales in the consolidated income statements. |
Debt
Debt | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
DEBT | ' | |||||||||||||||||||||||
DEBT | ||||||||||||||||||||||||
Cadence's outstanding debt as of December 28, 2013 and December 29, 2012 was as follows: | ||||||||||||||||||||||||
28-Dec-13 | December 29, 2012 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Principal | Unamortized Discount | Carrying Value | Principal | Unamortized Discount | Carrying Value | |||||||||||||||||||
2015 Notes | $ | 350,000 | $ | (25,174 | ) | $ | 324,826 | $ | 350,000 | $ | (41,181 | ) | $ | 308,819 | ||||||||||
2013 Notes | — | — | — | 144,461 | (6,447 | ) | 138,014 | |||||||||||||||||
2023 Notes | — | — | — | 178 | — | 178 | ||||||||||||||||||
Revolving credit facility | — | — | — | — | — | — | ||||||||||||||||||
Total outstanding debt | $ | 350,000 | $ | (25,174 | ) | $ | 324,826 | $ | 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) | ||||||||||||||||||||||||
Outstanding principal maturity value – at December 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 holders of the notes 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 December 29, 2013 through March 29, 2014 because Cadence's closing stock price exceeded $9.81 for at least 20 days in the 30-day period prior to December 28, 2013. Accordingly, the net balance of the 2015 Notes of $324.8 million is classified as a current liability on Cadence's consolidated balance sheet as of December 28, 2013. The classification of the 2015 Notes as current or long-term on the 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." | ||||||||||||||||||||||||
If one of the 2015 Notes Early Conversion Conditions is met in any future fiscal quarter, Cadence would classify its net liability under the 2015 Notes as a current liability on the consolidated balance sheet as of the end of that fiscal quarter. If 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 would 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 December 28, 2013, Cadence would have recorded an expense of $28.7 million associated with the conversion, comprised of $25.2 million of unamortized debt discount and $3.5 million of unamortized transaction fees. | ||||||||||||||||||||||||
As of December 28, 2013, the if-converted value of the 2015 Notes to the note holders of approximately $646.1 million exceeded the principal amount of $350.0 million. The fair value of the 2015 Notes was $654.1 million as of December 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 December 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 consolidated balance sheet at its estimated fair value. The fair value was $306.8 million as of December 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 a derivative asset and are carried on the consolidated balance sheet at their estimated fair value. The fair value was $306.8 million as of December 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 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 fiscal 2013, 2012 and 2011 and did not have a net impact on the 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 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. | ||||||||||||||||||||||||
2015 Notes Interest Expense | ||||||||||||||||||||||||
The effective interest rate and components of interest expense of the 2015 Notes for fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 8.1 | % | 8.1 | % | 8.1 | % | ||||||||||||||||||
Contractual interest expense | $ | 9,157 | $ | 9,157 | $ | 9,157 | ||||||||||||||||||
Amortization of debt discount | 16,007 | 14,758 | 13,665 | |||||||||||||||||||||
Total interest expense | $ | 25,164 | $ | 23,915 | $ | 22,822 | ||||||||||||||||||
2013 Notes and 2011 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. At the same time, Cadence issued $250.0 million principal amount of 1.375% Convertible Senior Notes Due December 15, 2011, or the 2011 Notes. During fiscal 2010, Cadence repurchased a portion of the 2013 Notes and 2011 Notes. The 2013 Notes and 2011 Notes matured on December 15, 2013 and December 15, 2011, respectively, at which time Cadence paid the outstanding principal balances in full. | ||||||||||||||||||||||||
2013 and 2011 Warrants | ||||||||||||||||||||||||
In December 2006, Cadence also sold warrants in separate transactions, or the 2013 Warrants and the 2011 Warrants, for the purchase of up to 23.6 million shares of Cadence's common stock at a strike price of $31.50 per share for proceeds of $39.4 million, which was recorded as an increase in stockholders' equity. In connection with the purchase of some of the 2013 Notes and the 2011 Notes during fiscal 2010, Cadence also purchased some of the 2013 Warrants and the 2011 Warrants, reducing the number of shares of Cadence common stock subject to purchase rights by 9.7 million shares at a cost of $0.1 million. The 2011 Warrants expired on various dates from February 2012 through April 2012 reducing the number of shares of Cadence common stock subject to purchase rights by 7.1 million shares. The 2013 Warrants will expire on various dates from February 2014 through April 2014. 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. The 2013 Warrants must be settled in net shares of Cadence's common stock. As a result, 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. 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. | ||||||||||||||||||||||||
2013 and 2011 Notes Interest Expense | ||||||||||||||||||||||||
The effective interest rate and components of interest expense of the 2013 Notes for fiscal 2013 and 2012 and of the 2013 Notes and 2011 Notes for fiscal 2011, were as follows: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 6.4 | % | 6.4 | % | 6.3 | % | ||||||||||||||||||
Contractual interest expense | $ | 2,082 | $ | 2,159 | $ | 4,119 | ||||||||||||||||||
Amortization of debt discount | 6,447 | 6,272 | 12,654 | |||||||||||||||||||||
Total interest expense | $ | 8,529 | $ | 8,431 | $ | 16,773 | ||||||||||||||||||
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. The outstanding principal balance of the 2023 Notes was paid in full during fiscal 2013. | ||||||||||||||||||||||||
Credit Facility | ||||||||||||||||||||||||
In December 2012, Cadence entered into a five-year senior secured revolving credit facility with a group of lenders led by Bank of America, N.A., as administrative agent. 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 on December 12, 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 2.0% 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. 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, make certain investments (including acquisitions), dispose of certain assets and make certain payments, including share repurchases and 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 December 28, 2013 and December 29, 2012, Cadence had no outstanding balance on the credit facility and was in compliance with all financial covenants. |
Acquisitions_and_AcquisitionRe
Acquisitions and Acquisition-Related Contingent Consideration | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
ACQUISITIONS AND ACQUISITION-RELATED CONTINGENT CONSIDERATION | ' | |||||||||||
ACQUISITIONS AND ACQUISITION-RELATED CONTINGENT CONSIDERATION | ||||||||||||
For each of the acquisitions described below, the results of operations and the estimated fair value of the assets acquired and liabilities assumed have been included in the consolidated financial statements from the date of the acquisition. | ||||||||||||
2013 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, auto 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. Cadence recorded compensation expense related to the deferred purchase consideration for Tensilica of $1.9 million during fiscal 2013. Cadence will expense the remaining $3.9 million over the remaining retention periods. | ||||||||||||
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 was not involved in the transaction. He 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 fiscal 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 fiscal 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 fiscal 2013 is approximately eight 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 fiscal 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 fiscal 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 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 8. | ||||||||||||
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 fiscal 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. | ||||||||||||
2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||
Total revenue | $ | 1,480,273 | $ | 1,358,158 | ||||||||
Net income | $ | 173,528 | $ | 392,744 | ||||||||
2012 Acquisition | ||||||||||||
During fiscal 2012, Cadence acquired Sigrity, Inc., or Sigrity, a provider of signal and power integrity analysis tools for system, printed circuit board and integrated circuit package designs. Total cash consideration for Sigrity, after taking into account cash held by Sigrity at closing of $7.5 million, was $64.3 million. An additional $14.2 million was deferred, is conditioned upon certain former Sigrity employee shareholders remaining employees of Cadence and is expensed over designated retention periods of the former Sigrity employee shareholders. Cadence recorded a total of $40.6 million of intangible assets and $39.7 million of goodwill as a result of its acquisition of Sigrity. The intangible assets are being amortized over a weighted-average life of approximately eight years. The goodwill associated with this acquisition is not deductible for income tax purposes. Cadence also recorded $15.1 million of long-term deferred tax liabilities that were primarily related to the acquired intangible assets which will provide Cadence a future source of taxable income. As a result, Cadence released $14.8 million of its deferred tax asset valuation allowance at the time of the acquisition, which was recognized as a benefit for income taxes during fiscal 2012. Cadence recorded compensation expense related to the deferred purchase consideration for Sigrity of $7.0 million and $3.5 million during fiscal 2013 and 2012, respectively. Cadence will expense the remaining $3.7 million over the remaining retention periods. | ||||||||||||
2011 Acquisitions | ||||||||||||
During fiscal 2011, Cadence acquired companies for an aggregate purchase price of $49.3 million and recorded a total of $32.3 million of goodwill and $21.6 million of other intangible assets. The intangibles are being amortized over a weighted-average life of approximately seven years. The $32.3 million of goodwill is not expected to be deductible for income tax purposes. | ||||||||||||
Acquisition-related Costs | ||||||||||||
Acquisition-related costs were $8.7 million, $1.5 million and $0.5 million during fiscal 2013, 2012 and 2011, respectively. These costs consist of professional fees and administrative costs and were expensed as incurred in Cadence's 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 December 28, 2013 was $4.1 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 future financial measures. If performance is such that these payments are fully achieved, Cadence is obligated to pay up to an aggregate of $14.3 million over the next 28 months. Of the $14.3 million, up to $9.0 million would be recorded as operating expenses in the consolidated income statements. |
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangibles | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
GOODWILL AND ACQUIRED INTANGIBLES | ' | |||||||||||
GOODWILL AND ACQUIRED INTANGIBLES | ||||||||||||
Goodwill | ||||||||||||
Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2013 and determined that the fair value of Cadence's single reporting unit substantially exceeded the carrying amount of its net assets and that no impairment existed. | ||||||||||||
The changes in the carrying amount of goodwill during fiscal 2013 and 2012 were as follows: | ||||||||||||
Gross Carrying | ||||||||||||
Amount | ||||||||||||
(In thousands) | ||||||||||||
Balance as of December 31, 2011 | $ | 192,125 | ||||||||||
Goodwill resulting from acquisitions | 39,680 | |||||||||||
Additions due to contingent consideration* | 1,041 | |||||||||||
Effect of foreign currency translation | 420 | |||||||||||
Balance as of December 29, 2012 | $ | 233,266 | ||||||||||
Goodwill resulting from acquisitions | 227,959 | |||||||||||
Effect of foreign currency translation | (4,320 | ) | ||||||||||
Balance as of December 28, 2013 | $ | 456,905 | ||||||||||
_________ | ||||||||||||
* Cadence accounts for business combinations with acquisition dates on or before January 3, 2009 under the purchase method in accordance with accounting standards that were authoritative at that time, whereby contingent consideration is added to goodwill as it is earned. | ||||||||||||
Acquired Intangibles, Net | ||||||||||||
Acquired intangibles as of December 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) | ||||||||||||
Acquired intangibles with definite lives: | ||||||||||||
Existing technology | $ | 237,624 | $ | (53,243 | ) | $ | 184,381 | |||||
Agreements and relationships | 170,760 | (53,607 | ) | 117,153 | ||||||||
Distribution rights | 30,100 | (30,100 | ) | — | ||||||||
Tradenames, trademarks and patents | 9,519 | (2,870 | ) | 6,649 | ||||||||
Total acquired intangibles with definite lives | 448,003 | (139,820 | ) | 308,183 | ||||||||
In-process technology | 3,510 | — | 3,510 | |||||||||
Total acquired intangibles | $ | 451,513 | $ | (139,820 | ) | $ | 311,693 | |||||
In-process technology as of December 28, 2013 consists of projects acquired during fiscal 2013 that, if completed, will contribute to Cadence's ability to offer additional IP solutions to its customers. These projects are expected to be complete within six to twelve months. During fiscal 2013, Cadence completed certain projects previously included in in-process technology and transferred approximately $6.0 million to existing technology. | ||||||||||||
Acquired intangibles with 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 from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization expense for fiscal 2013, 2012 and 2011, by consolidated income statement caption, was as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Cost of product and maintenance | $ | 24,023 | $ | 13,541 | $ | 10,480 | ||||||
Amortization of acquired intangibles | 19,416 | 15,077 | 16,536 | |||||||||
Total amortization of acquired intangibles | $ | 43,439 | $ | 28,618 | $ | 27,016 | ||||||
Estimated amortization expense for intangible assets with definite lives for the following five fiscal years and thereafter is as follows: | ||||||||||||
(In thousands) | ||||||||||||
2014 | $ | 49,525 | ||||||||||
2015 | 48,972 | |||||||||||
2016 | 43,261 | |||||||||||
2017 | 39,654 | |||||||||||
2018 | 36,803 | |||||||||||
Thereafter | 89,968 | |||||||||||
Total estimated amortization expense | $ | 308,183 | ||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
Cadence's income before provision (benefit) for income taxes included income from the United States and from foreign subsidiaries for fiscal 2013, 2012 and 2011, is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
United States | $ | 20,092 | $ | 61,865 | $ | 39,175 | ||||||
Foreign subsidiaries | 138,904 | 126,406 | 56,251 | |||||||||
Total income before provision (benefit) for income taxes | $ | 158,996 | $ | 188,271 | $ | 95,426 | ||||||
Cadence's foreign subsidiaries are generally subject to lower statutory tax rates than the United States statutory federal income tax rate of 35%. | ||||||||||||
Cadence's provision (benefit) for income taxes was comprised of the following items for fiscal 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | (40,494 | ) | $ | (588 | ) | $ | (662 | ) | |||
State and local | 2,574 | (36,650 | ) | 1,363 | ||||||||
Foreign | 28,040 | 19,409 | 13,752 | |||||||||
Total current | (9,880 | ) | (17,829 | ) | 14,453 | |||||||
Deferred: | ||||||||||||
Federal | 4,888 | (203,731 | ) | (4,937 | ) | |||||||
State and local | 3,037 | (28,894 | ) | (524 | ) | |||||||
Foreign | (10,291 | ) | (7,799 | ) | (2,350 | ) | ||||||
Total deferred | (2,366 | ) | (240,424 | ) | (7,811 | ) | ||||||
Tax expense allocated to shareholders' equity | 6,999 | 6,576 | 16,555 | |||||||||
Total provision (benefit) for income taxes | $ | (5,247 | ) | $ | (251,677 | ) | $ | 23,197 | ||||
The provision (benefit) for income taxes differs from the amount estimated by applying the United States statutory federal income tax rate of 35% to income before provision (benefit) for income taxes for fiscal 2013, 2012 and 2011 as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Provision computed at federal statutory income tax rate | $ | 55,648 | $ | 65,895 | $ | 33,400 | ||||||
State and local income tax, net of federal tax effect | 4,085 | 3,626 | 6,493 | |||||||||
Foreign income tax rate differential | (36,392 | ) | (39,308 | ) | (6,676 | ) | ||||||
Non-deductible share-based compensation costs | 2,053 | 7,785 | 1,651 | |||||||||
Change in deferred tax asset valuation allowance | 18,354 | (301,542 | ) | (3,617 | ) | |||||||
Tax credits | (18,372 | ) | (3,744 | ) | (12,588 | ) | ||||||
Repatriation of foreign earnings | (2,116 | ) | (2,645 | ) | 708 | |||||||
Non-deductible research and development expense | 3,043 | 1,968 | — | |||||||||
Domestic production activity deduction | (1,088 | ) | — | — | ||||||||
Withholding taxes | 3,333 | 3,593 | 3,851 | |||||||||
Tax settlements, domestic | — | (37,481 | ) | 328 | ||||||||
Tax settlements, foreign | 680 | (804 | ) | (2,451 | ) | |||||||
Interest and penalties not included in tax settlements | 1,701 | 2,552 | 1,840 | |||||||||
Increase (decrease) in unrecognized tax benefits not included in tax settlements | (33,730 | ) | 47,329 | 933 | ||||||||
Other | (2,446 | ) | 1,099 | (675 | ) | |||||||
Provision (benefit) for income taxes | $ | (5,247 | ) | $ | (251,677 | ) | $ | 23,197 | ||||
Effective tax rate | (3 | )% | (134 | )% | 24 | % | ||||||
The components of deferred tax assets and liabilities consisted of the following as of December 28, 2013 and December 29, 2012: | ||||||||||||
As of | ||||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Tax credit carryforwards | $ | 159,839 | $ | 129,724 | ||||||||
Reserves and accruals | 49,450 | 50,960 | ||||||||||
Intangible assets | 45,948 | 56,512 | ||||||||||
Capitalized research and development expense for income tax purposes | 33,742 | 34,046 | ||||||||||
Operating loss carryforwards | 27,205 | 24,429 | ||||||||||
Deferred income | 25,420 | 27,237 | ||||||||||
Capital loss carryforwards | 22,050 | 23,026 | ||||||||||
Share-based compensation costs | 20,652 | 20,012 | ||||||||||
Depreciation and amortization | 11,167 | 8,979 | ||||||||||
Investments | 7,643 | 7,550 | ||||||||||
Other | 4,911 | 4,185 | ||||||||||
Total deferred tax assets | 408,027 | 386,660 | ||||||||||
Valuation allowance | (92,677 | ) | (74,323 | ) | ||||||||
Net deferred tax assets | 315,350 | 312,337 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | (66,775 | ) | (70,086 | ) | ||||||||
Undistributed foreign earnings | (17,301 | ) | (13,113 | ) | ||||||||
Other | (2,230 | ) | (965 | ) | ||||||||
Total deferred tax liabilities | (86,306 | ) | (84,164 | ) | ||||||||
Total net deferred tax assets | $ | 229,044 | $ | 228,173 | ||||||||
The operating loss carryforwards included in the components of deferred tax assets and liabilities do not include excess tax benefits associated with share-based compensation. The excess tax benefit from share-based compensation is not recognized until a tax deduction is realized on Cadence's income tax returns. As of December 28, 2013 and December 29, 2012, Cadence had unrealized share-based compensation deductions as follows: | ||||||||||||
As of | ||||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||||
(Tax Effected - In thousands) | ||||||||||||
Federal | $ | — | $ | 2,170 | ||||||||
California | 457 | 457 | ||||||||||
Upon realization of these deductions on Cadence's income tax returns, the tax effect of these deductions will result in an increase to stockholders' equity rather than as a reduction of income tax expense. | ||||||||||||
Cadence regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance if it is more likely than not that some portion of the deferred tax assets will not be realized. This analysis involves weighing both the positive and negative evidence concerning the realizability of the Company's deferred tax assets in each tax jurisdiction. During fiscal 2013, Cadence determined that there was sufficient positive evidence to judge that $315.4 million of deferred tax assets were more likely than not to be realized. The evidence that the Company relied on to make this determination included the following: | ||||||||||||
• | The magnitude and duration of Cadence's current profitability in the United States; | |||||||||||
• | Cadence's multi-year history of approximately 90% of the aggregate value of its bookings being of a type that revenue is recurring in nature; | |||||||||||
• | Cadence's existing revenue backlog as of December 28, 2013 that provides Cadence with an objective source of future revenues to be recognized in fiscal 2014 and subsequent periods; and | |||||||||||
• | Cadence's expectation of having sufficient sources of income in the future to prevent the expiration of deferred tax assets. | |||||||||||
During fiscal 2012, Cadence weighed similar evidence available for that period to release a valuation allowance of $219.6 million that was previously reserved against a substantial portion of the United States federal and state deferred tax assets. | ||||||||||||
During fiscal 2013 and 2012, Cadence maintained valuation allowances of $92.7 million and $74.3 million, respectively, on certain federal, state and foreign deferred tax assets because the realization of these deferred tax assets require future income of a specific character or amount that Cadence considered uncertain. The valuation allowance primarily relates to the following: | ||||||||||||
• | Tax credits in certain state and foreign jurisdictions that are accumulating at a rate greater than Cadence's capacity to utilize the credits; | |||||||||||
• | Federal and foreign deferred tax assets related to investments and capital losses that can only be utilized against gains that are capital in nature; and | |||||||||||
• | Domestic foreign tax credits that have not been recognized for income tax purposes and can only be fully utilized if Cadence has sufficient levels of foreign source income in the future. | |||||||||||
Cadence provides for United States income taxes on the earnings of foreign subsidiaries unless the earnings are considered indefinitely invested outside of the United States. Cadence intends to indefinitely reinvest $297.1 million of undistributed earnings of its foreign subsidiaries as of December 28, 2013, to meet the working capital and long-term capital needs of its foreign subsidiaries. The unrecognized deferred tax liability for these indefinitely reinvested foreign earnings was $51.2 million as of December 28, 2013. | ||||||||||||
As of December 28, 2013, Cadence's operating loss carryforwards were as follows: | ||||||||||||
Amount | Expiration Periods | |||||||||||
(in thousands) | ||||||||||||
Federal | $ | 5,394 | from 2021 through 2029 | |||||||||
California | 256,393 | from 2014 through 2031 | ||||||||||
Other states (tax effected, net of federal benefit) | 3,265 | from 2014 through 2031 | ||||||||||
Foreign (tax effected) | 7,777 | from 2021 through indefinite | ||||||||||
As of December 28, 2013, Cadence had tax credit carryforwards of: | ||||||||||||
Amount | Expiration Periods | |||||||||||
(in thousands) | ||||||||||||
Federal* | $ | 114,646 | from 2015 through 2030 | |||||||||
California | 24,946 | do not expire until utilized | ||||||||||
Other states | 5,572 | from 2014 through 2027 | ||||||||||
Foreign | 14,675 | from 2017 through 2031 | ||||||||||
_____________ | ||||||||||||
*Certain of Cadence's foreign tax credits are anticipated and as result do not yet have an expiration period. | ||||||||||||
Examinations by Tax Authorities | ||||||||||||
Taxing authorities regularly examine Cadence's income tax returns. | ||||||||||||
In December 2012, the California Franchise Tax Board, or FTB, completed its field examination of Cadence's California state income tax returns for the tax years 2001 through 2003 and issued a Notice of Proposed Assessment, or NPA, that resulted in tax refunds due to Cadence. Cadence determined that certain tax positions were effectively settled and Cadence recognized a benefit for income taxes of $36.7 million in its consolidated income statement during fiscal 2012. | ||||||||||||
In June 2013, the FTB completed its field examination of Cadence's California state income tax returns for the tax years 2004 through 2006, which did not significantly impact Cadence's consolidated income statement during fiscal 2013. | ||||||||||||
As of December 28, 2013, Cadence's earliest tax years that remain open to examination include: | ||||||||||||
Jurisdiction | Earliest Tax Year Open to Examination | |||||||||||
United States - Federal | 2010 | |||||||||||
United States - California | 2009 | |||||||||||
Israel | 2009 | |||||||||||
Hungary | 2007 | |||||||||||
Unrecognized Tax Benefits | ||||||||||||
The changes in Cadence's gross amount of unrecognized tax benefits during fiscal 2013, 2012 and 2011 are as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Unrecognized tax benefits at the beginning of the fiscal year | $ | 92,378 | $ | 98,812 | $ | 131,545 | ||||||
Gross amount of the increases (decreases) in unrecognized tax benefits of tax positions taken during a prior year* | 6,196 | 2,194 | (3,791 | ) | ||||||||
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 5,119 | 3,082 | 1,588 | |||||||||
Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes | (15,171 | ) | (11,768 | ) | (30,115 | ) | ||||||
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | (11,850 | ) | (189 | ) | (421 | ) | ||||||
Effect of foreign currency translation | 1,607 | 247 | 6 | |||||||||
Unrecognized tax benefits at the end of the fiscal year | $ | 78,279 | $ | 92,378 | $ | 98,812 | ||||||
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate | $ | 49,458 | 57,725 | $ | 75,057 | |||||||
_________ | ||||||||||||
* Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions | ||||||||||||
The total amounts of interest and penalties recognized in the consolidated income statements as provision (benefit) for income taxes for fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Interest | $ | (12,470 | ) | $ | (11,184 | ) | $ | 2,173 | ||||
Penalties | (7,698 | ) | (1,862 | ) | (1,495 | ) | ||||||
The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||
As of | ||||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||||
(In thousands) | ||||||||||||
Interest | $ | 37 | $ | 24,427 | ||||||||
Penalties | 1,227 | 8,953 | ||||||||||
Receivables_and_Allowances_for
Receivables and Allowances for Doubtful Accounts | 12 Months Ended | |||||||||||||||
Dec. 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 December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Accounts receivable | $ | 76,057 | $ | 67,259 | ||||||||||||
Unbilled accounts receivable | 31,567 | 30,647 | ||||||||||||||
Long-term receivables | 3,672 | 7,559 | ||||||||||||||
Total receivables | $ | 111,296 | $ | 105,465 | ||||||||||||
Less allowance for doubtful accounts | — | (85 | ) | |||||||||||||
Total receivables, net | $ | 111,296 | $ | 105,380 | ||||||||||||
Cadence's customers are primarily concentrated within the semiconductor and electronics systems industries. As of December 28, 2013 and December 29, 2012, no single customer accounted for 10% of Cadence's total receivables. As of December 28, 2013 and December 29, 2012, approximately 47% of Cadence's total receivables were attributable to the ten customers with the largest balances of total receivables. | ||||||||||||||||
The following table presents the change in Cadence's allowance for doubtful accounts for fiscal 2013, 2012 and 2011: | ||||||||||||||||
Balance at Beginning of Period | (Charged to) Credited to Costs and Expenses | Uncollectible Accounts Written Off, Net | Balance at End of Period | |||||||||||||
(In thousands) | ||||||||||||||||
Year ended December 28, 2013 | $ | (85 | ) | $ | 85 | $ | — | $ | — | |||||||
Year ended December 29, 2012 | $ | — | $ | (215 | ) | $ | 130 | $ | (85 | ) | ||||||
Year ended December 31, 2011 | $ | (7,604 | ) | $ | 6,596 | $ | 1,008 | $ | — | |||||||
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 12 Months Ended | |||||||||||||||
Dec. 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 December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 536,260 | $ | 726,357 | ||||||||||||
Short-term investments | 96,788 | 100,704 | ||||||||||||||
Cash, cash equivalents and short-term investments | $ | 633,048 | $ | 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 December 28, 2013 and December 29, 2012: | ||||||||||||||||
As of | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and interest bearing deposits | $ | 188,088 | $ | 160,023 | ||||||||||||
Money market funds | 345,872 | 566,334 | ||||||||||||||
Bank certificates of deposit | 2,300 | — | ||||||||||||||
Total cash and cash equivalents | $ | 536,260 | $ | 726,357 | ||||||||||||
Short-Term Investments | ||||||||||||||||
The following tables summarize Cadence's short-term investments as of December 28, 2013 and December 29, 2012: | ||||||||||||||||
28-Dec-13 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 37,422 | $ | 30 | $ | (11 | ) | $ | 37,441 | |||||||
Bank certificates of deposit | 20,300 | 9 | (1 | ) | 20,308 | |||||||||||
United States Treasury securities | 24,219 | 28 | (1 | ) | 24,246 | |||||||||||
United States government agency securities | 10,212 | 11 | — | 10,223 | ||||||||||||
Commercial paper | 2,492 | 1 | — | 2,493 | ||||||||||||
Marketable debt securities | 94,645 | 79 | (13 | ) | 94,711 | |||||||||||
Marketable equity securities | 1,817 | 260 | — | 2,077 | ||||||||||||
Total short-term investments | $ | 96,462 | $ | 339 | $ | (13 | ) | $ | 96,788 | |||||||
As of December 29, 2012 | ||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||
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 December 28, 2013, no securities held by Cadence had been in an unrealized loss position for greater than nine months. | ||||||||||||||||
The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of December 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 | $ | 51,324 | $ | 51,358 | ||||||||||||
Due in one to three years | 43,321 | 43,353 | ||||||||||||||
Total marketable debt securities included in short-term investments | $ | 94,645 | $ | 94,711 | ||||||||||||
Realized gains and losses from the sale of marketable debt and equity securities are recorded in other income, net in the consolidated income statements. | ||||||||||||||||
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 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 records in the consolidated income statements as other income, net, realized gains and losses from the sale of non-marketable investments, write downs related to cost method investments due to other-than-temporary declines in value and its proportional share of issuers' gains or losses related to equity method investments. | ||||||||||||||||
The equity method income or loss recorded by Cadence is based on its percentage ownership in the issuer. | ||||||||||||||||
Cadence's non-marketable investments as of December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cost method | $ | 3,038 | $ | 3,038 | ||||||||||||
Equity method | 3,639 | 4,249 | ||||||||||||||
Total non-marketable investments | $ | 6,677 | $ | 7,287 | ||||||||||||
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||
Dec. 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 fiscal 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 December 28, 2013 and December 29, 2012: | ||||||||||||||||
Fair Value Measurements as of December 28, 2013: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 345,872 | $ | 345,872 | $ | — | $ | — | ||||||||
Bank certificates of deposit | 2,300 | — | 2,300 | — | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | 37,441 | — | 37,441 | — | ||||||||||||
Bank certificates of deposit | 20,308 | — | 20,308 | — | ||||||||||||
United States Treasury securities | 24,246 | 24,246 | — | — | ||||||||||||
United States government agency securities | 10,223 | 10,223 | — | — | ||||||||||||
Commercial paper | 2,493 | — | 2,493 | — | ||||||||||||
Marketable equity securities | 2,077 | 2,077 | — | — | ||||||||||||
Trading securities held NQDC trust | 23,960 | 23,960 | — | — | ||||||||||||
2015 Notes Hedges | 306,817 | — | 306,817 | — | ||||||||||||
Foreign currency exchange contracts | 262 | — | 262 | — | ||||||||||||
Total Assets | $ | 775,999 | $ | 406,378 | $ | 369,621 | $ | — | ||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Acquisition-related contingent consideration | $ | 4,091 | $ | — | $ | — | $ | 4,091 | ||||||||
2015 Notes Embedded Conversion Derivative | 306,817 | — | 306,817 | — | ||||||||||||
Total Liabilities | $ | 310,908 | $ | — | $ | 306,817 | $ | 4,091 | ||||||||
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 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 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 December 28, 2013 and December 29, 2012. Changes in the fair value of contingent consideration liabilities subsequent to the acquisition are recorded in general and administrative expense in the consolidated income statements. Cash payments of contingent consideration are classified in the consolidated statements of cash flows as a financing activity up to the amount of the contingent consideration recorded at the time of the acquisition, and as an operating activity for cash payments above the liability recorded at the time of acquisition. | ||||||||||||||||
The following table summarizes the level 3 activity for fiscal 2013 and 2012: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 31, 2011 | $ | 3,911 | ||||||||||||||
Payments | (39 | ) | ||||||||||||||
Adjustments | 346 | |||||||||||||||
Balance as of December 29, 2012 | $ | 4,218 | ||||||||||||||
Payments | (835 | ) | ||||||||||||||
Adjustments | 708 | |||||||||||||||
Balance as of December 28, 2013 | $ | 4,091 | ||||||||||||||
Cadence acquired intangible assets of $173.8 million, $40.6 million and $21.6 million in fiscal 2013, 2012 and 2011, respectively. 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 and electronic design automation software development, discount rates consistent with the level of risk and the economy in general. The fair value of these intangible assets is affected most significantly by the projected income associated with the intangible assets and the anticipated timing of the projected income, but is 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 fiscal 2013. | ||||||||||||||||
As part of its fiscal 2013 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. | ||||||||||||||||
As part of its 2012 acquisition, Cadence assumed an obligation related to deferred revenue of $3.8 million, which was also estimated using the cost build-up approach. | ||||||||||||||||
Cadence believes that its estimates and assumptions related to the fair value of its acquired intangible assets, deferred revenue obligations and contingent consideration are reasonable, but significant judgment is involved. |
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Balance Sheet Components [Abstract] | ' | |||||||
BALANCE SHEET COMPONENTS | ' | |||||||
BALANCE SHEET COMPONENTS | ||||||||
A summary of certain balance sheet components as of December 28, 2013 and December 29, 2012 is as follows: | ||||||||
As of | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
(In thousands) | ||||||||
Inventories: | ||||||||
Raw materials | $ | 30,554 | $ | 23,654 | ||||
Finished goods | 19,666 | 12,509 | ||||||
Inventories | $ | 50,220 | $ | 36,163 | ||||
Prepaid expenses and other: | ||||||||
Prepaid expenses and other current assets | $ | 31,751 | $ | 68,494 | ||||
Deferred income taxes | 91,631 | 58,542 | ||||||
Prepaid expenses and other | $ | 123,382 | $ | 127,036 | ||||
Property, plant and equipment: | ||||||||
Computer equipment and related software | $ | 462,044 | $ | 541,180 | ||||
Buildings | 126,512 | 127,201 | ||||||
Land | 55,980 | 55,964 | ||||||
Leasehold, building and land improvements | 93,049 | 87,506 | ||||||
Furniture and fixtures | 23,026 | 21,961 | ||||||
Equipment | 44,949 | 44,108 | ||||||
In-process capital assets | 1,649 | 1,969 | ||||||
Total cost | 807,209 | 879,889 | ||||||
Less: Accumulated depreciation and amortization | (568,494 | ) | (635,450 | ) | ||||
Property, plant and equipment, net | $ | 238,715 | $ | 244,439 | ||||
Other assets: | ||||||||
Deferred income taxes | $ | 144,553 | $ | 171,721 | ||||
NQDC trust assets | 23,866 | 24,235 | ||||||
Other long-term assets | 28,106 | 29,610 | ||||||
Other assets | $ | 196,525 | $ | 225,566 | ||||
Accounts payable and accrued liabilities: | ||||||||
Payroll and payroll-related accruals | $ | 145,047 | $ | 129,956 | ||||
Accounts payable | 24,963 | 6,412 | ||||||
Income taxes payable - current | 11,062 | 2,305 | ||||||
Accrued operating liabilities | 35,522 | 32,645 | ||||||
Accounts payable and accrued liabilities | $ | 216,594 | $ | 171,318 | ||||
Other long-term liabilities: | ||||||||
Income taxes payable - long-term | $ | 11,396 | $ | 51,994 | ||||
NQDC trust liability | 23,960 | 24,329 | ||||||
Other long-term liabilities | 36,080 | 27,710 | ||||||
Other long-term liabilities | $ | 71,436 | $ | 104,033 | ||||
Stock_Compensation_Plans_and_S
Stock Compensation Plans and Stock Based Compensation | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION | ' | ||||||||||||
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION | |||||||||||||
Equity Incentive Plans | |||||||||||||
Cadence's 2000 Equity Incentive Plan, as amended, or the 2000 Plan, provides for the issuance of non-qualified options, restricted stock awards, restricted stock units, stock bonuses and the rights to acquired restricted stock. The total number of shares available for issuance under the 2000 Plan, as amended, is 57,500,000 plus any shares that were not subject to a grant or that are forfeited under prior plans that were terminated and incorporated into the 2000 Plan. Options granted under the 2000 Plan have an exercise price not less than the fair market value of the stock on the date of grant. Options and restricted stock generally vest over a three to four-year period. Options granted under the 2000 Plan expire seven years from the date of grant. | |||||||||||||
Cadence's 1987 Stock Incentive Plan, or the 1987 Plan, provides for the issuance of either incentive or non-qualified options, restricted stock awards and restricted stock units. The 1987 Plan is used to grant awards to certain executive officers. The number of shares available for issuance under the 1987 Plan, as amended, is 79,370,100 shares, of which only 5,000,000 shares may be issued pursuant to restricted stock awards. Options granted under the 1987 Plan have an exercise price not less than fair market value of the stock on the date of grant and become exercisable over periods of up to five years, and expire seven years from the date of grant. Vesting of restricted stock awards granted under the 1987 Plan may require attainment of specified performance criteria. | |||||||||||||
Cadence's 1995 Directors Stock Incentive Plan, or the Directors Plan, provides for the issuance of non-qualified options, restricted stock awards and restricted stock units to its non-employee directors. Options granted under the Directors Plan have an exercise price not less than the fair market value of the stock on the date of grant. The maximum number of shares available for issuance under the Directors Plan is 3,550,000. Options granted under the Directors Plan expire after ten years and vest one year from the date of grant. | |||||||||||||
Cadence has assumed certain options granted to employees of acquired companies, or Acquired Options. The Acquired Options were assumed by Cadence outside of its stock option plans, and each option is administered under the terms of the respective original plans of the acquired companies. All of the Acquired Options have been adjusted for the price conversion under the terms of the acquisition agreement between Cadence and the relevant acquired company. If the Acquired Options are canceled, forfeited or expire, they do not become available for future grant. No additional options will be granted under any of the acquired companies' plans. | |||||||||||||
Stock-based Compensation | |||||||||||||
Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the Employee Stock Purchase Plan, or ESPP, during fiscal 2013, 2012 and 2011 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Stock options | $ | 13,100 | $ | 8,752 | $ | 8,685 | |||||||
Restricted stock | 49,019 | 34,838 | 30,815 | ||||||||||
ESPP | 4,166 | 3,971 | 4,088 | ||||||||||
Total stock-based compensation expense | $ | 66,285 | $ | 47,561 | $ | 43,588 | |||||||
Income tax benefit | $ | 16,236 | $ | 12,453 | $ | 1,406 | |||||||
Stock-based compensation expense is reflected throughout Cadence's costs and expenses during fiscal 2013, 2012 and 2011 as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Cost of product and maintenance | $ | 1,596 | $ | 1,317 | $ | 1,468 | |||||||
Cost of services | 2,321 | 1,889 | 2,105 | ||||||||||
Marketing and sales | 15,642 | 10,193 | 10,356 | ||||||||||
Research and development | 32,999 | 21,516 | 18,561 | ||||||||||
General and administrative | 13,727 | 12,646 | 11,098 | ||||||||||
Total stock-based compensation expense | $ | 66,285 | $ | 47,561 | $ | 43,588 | |||||||
The fair value of stock options and purchase rights issued under Cadence's ESPP are calculated using the Black-Scholes option pricing model. The computation of the expected volatility assumption used for new awards is based on implied volatility when the remaining maturities of the underlying traded options are at least one year. When the remaining maturities of the underlying traded options are less than one year, expected volatility is based on a weighting of historical and implied volatilities. When determining the expected term, Cadence reviews historical employee exercise behavior from options having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes for the comparable term in effect at the time of grant. The expected dividend yield used in the calculation is zero because Cadence has not historically paid and does not expect to pay dividends in the foreseeable future. | |||||||||||||
Stock Options | |||||||||||||
The exercise price of each stock option granted under Cadence's employee equity incentive plans is equal to or greater than the closing price of Cadence's common stock on the date of grant. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average grant date fair value of options granted and the weighted-average assumptions used in the model for fiscal 2013, 2012 and 2011 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividend yield | None | None | None | ||||||||||
Expected volatility | 40 | % | 46.4 | % | 44.9 | % | |||||||
Risk-free interest rate | 0.86 | % | 0.79 | % | 2.18 | % | |||||||
Expected term (in years) | 4.7 | 4.6 | 4.7 | ||||||||||
Weighted-average fair value of options granted | $ | 4.93 | $ | 4.57 | $ | 3.93 | |||||||
A summary of the changes in stock options outstanding under Cadence's equity incentive plans during fiscal 2013 is presented below: | |||||||||||||
Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | |||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Terms | |||||||||||||
Shares | Exercise Price | (Years) | Value | ||||||||||
(In thousands) | (In thousands) | ||||||||||||
Options outstanding as of December 29, 2012 | 19,278 | $ | 10.71 | ||||||||||
Acquired options | 1,495 | $ | 2.46 | ||||||||||
Granted | 1,042 | $ | 14.21 | ||||||||||
Exercised | (2,982 | ) | $ | 9.25 | |||||||||
Canceled and forfeited | (1,358 | ) | $ | 15.88 | |||||||||
Options outstanding as of December 28, 2013 | 17,475 | $ | 10.06 | 3.4 | $ | 80,673 | |||||||
Options vested as of December 28, 2013 | 14,104 | $ | 10.27 | 2.8 | $ | 64,423 | |||||||
Options vested as of, and expected to vest after, December 28, 2013 | 17,462 | $ | 10.06 | 3.4 | $ | 80,632 | |||||||
Cadence had total unrecognized compensation expense, net of estimated forfeitures, related to stock option grants of $18.5 million as of December 28, 2013, which will be recognized over the remaining weighted-average vesting period of 2.0 years. | |||||||||||||
The total intrinsic value of and cash received from options exercised during fiscal 2013, 2012 and 2011 was: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Intrinsic value of options exercised | $ | 15,114 | $ | 11,493 | $ | 7,255 | |||||||
Cash received from options exercised | $ | 27,569 | $ | 19,119 | $ | 6,478 | |||||||
Restricted Stock | |||||||||||||
Generally, restricted stock, which includes restricted stock awards and restricted stock units, vests over three to four years and is subject to the employee's continuing service to Cadence. The vesting of certain restricted stock grants is subject to attainment of specified performance criteria. Each fiscal quarter, Cadence estimates the probability of the achievement of these performance goals and recognizes any related stock-based compensation expense using the graded-vesting method. The amount of stock-based compensation expense recognized in any one period can vary based on the attainment or expected attainment of the various performance goals. If such performance goals are not ultimately met, no compensation expense is recognized and any previously recognized compensation expense is reversed. | |||||||||||||
Stock-based compensation expense related to performance-based restricted stock grants for fiscal 2013, 2012 and 2011 was as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Stock-based compensation expense related to performance-based grants | $ | 4,340 | $ | 3,230 | $ | 2,174 | |||||||
A summary of the changes in restricted stock outstanding under Cadence's equity incentive plans during fiscal 2013, is presented below: | |||||||||||||
Weighted- | Weighted- | Aggregate | |||||||||||
Average Grant Date | Average | Intrinsic | |||||||||||
Remaining | |||||||||||||
Vesting | |||||||||||||
Terms | |||||||||||||
Shares | Fair Value | (Years) | Value | ||||||||||
(In thousands) | (In thousands) | ||||||||||||
Unvested shares as of December 29, 2012 | 9,444 | $ | 10.4 | ||||||||||
Granted | 5,306 | $ | 15.3 | ||||||||||
Vested | (4,089 | ) | $ | 9.87 | |||||||||
Forfeited | (548 | ) | $ | 11.77 | |||||||||
Unvested shares as of December 28, 2013 | 10,113 | $ | 13.11 | 1.1 | $ | 139,761 | |||||||
Unvested shares expected to vest after December 28, 2013 | 9,418 | $ | 13.08 | 1.1 | $ | 130,131 | |||||||
Cadence had total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock grants of $101.2 million as of December 28, 2013, which will be recognized over the remaining weighted-average vesting period of 2.0 years. | |||||||||||||
The total fair value realized by employees upon vesting of restricted stock during fiscal 2013, 2012 and 2011 was: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Fair value of restricted stock realized upon vesting | $ | 58,091 | $ | 48,249 | $ | 43,756 | |||||||
Employee Stock Purchase Plan | |||||||||||||
Cadence provides an ESPP, as amended from time to time. Under the terms of the ESPP, Cadence is authorized to issue up to 74,000,000 shares of common stock. | |||||||||||||
Under the ESPP and through the January 31, 2014 purchase date, a majority of Cadence's employees could purchase Cadence's common stock at a price equal to 85% of the lower of the fair market value at the beginning or the end of the applicable offering period, in an amount not to exceed 5% of their annual base earnings plus bonuses and commissions, and subject to a limit in any calendar year of $7,058.82 worth of common stock. The offering periods have a six-month duration and begin on each February 1 and August 1. The purchase dates fall on the last days of the six-month offering periods. | |||||||||||||
Under the terms of the ESPP, for the offering period that commenced February 1, 2014, a majority of Cadence employees are eligible to purchase Cadence's common stock in an amount not to exceed 7% of their annual base earnings plus bonuses and commissions, and subject to a limit in any calendar year of $9,411.76 worth of common stock. | |||||||||||||
Compensation expense is calculated using the fair value of the employees' purchase rights under the Black-Scholes option pricing model. The weighted-average grant date fair value of purchase rights granted under the ESPP and the weighted-average assumptions used in the model for fiscal 2013, 2012 and 2011 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividend yield | None | None | None | ||||||||||
Expected volatility | 25.7 | % | 31.4 | % | 38.4 | % | |||||||
Risk-free interest rate | 0.09 | % | 0.12 | % | 0.17 | % | |||||||
Expected term (in years) | 0.5 | 0.5 | 0.5 | ||||||||||
Weighted-average fair value of options granted | $ | 3.21 | $ | 2.78 | $ | 2.48 | |||||||
Shares of common stock issued under the ESPP for fiscal 2013, 2012 and 2011 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Cadence shares purchased under the ESPP | 1,382 | 1,548 | 2,029 | ||||||||||
Cash received for the purchase of shares under the ESPP | $ | 15,088 | $ | 13,568 | $ | 13,236 | |||||||
Weighted-average purchase price per share | $ | 10.91 | $ | 8.77 | $ | 6.52 | |||||||
Reserved for Future Issuance | |||||||||||||
As of December 28, 2013, Cadence had reserved the following shares of authorized but unissued common stock for future issuance: | |||||||||||||
Shares | |||||||||||||
(In thousands) | |||||||||||||
Employee equity incentive plans* | 32,600 | ||||||||||||
2015 Warrants | 46,382 | ||||||||||||
2013 Warrants | 6,830 | ||||||||||||
Employee stock purchase plans | 9,869 | ||||||||||||
Directors stock option plans* | 2,475 | ||||||||||||
Total | 98,156 | ||||||||||||
_____________ | |||||||||||||
* Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units. |
Restructuring_and_Other_Charge
Restructuring and Other Charges | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
RESTRUCTURING AND OTHER CHARGES | ' | |||||||||||||||
RESTRUCTURING AND OTHER CHARGES | ||||||||||||||||
During fiscal 2013, Cadence initiated a restructuring plan, or the 2013 Restructuring Plan, to better align its resources with its business strategy. In connection with the 2013 Restructuring Plan, Cadence recorded restructuring and other charges of $17.6 million related to estimated severance payments, severance-related benefits and costs for outplacement services. | ||||||||||||||||
Severance and termination benefits related to the 2013 Restructuring Plan of approximately $6.9 million were paid to employees before December 28, 2013. The balance of the accrued severance and termination benefits payments of approximately $10.7 million is expected to be paid primarily during fiscal 2014. Amounts expected to be paid during fiscal 2014 are included in accounts payable and accrued liabilities in Cadence's consolidated balance sheet as of December 28, 2013. | ||||||||||||||||
Cadence has initiated various other restructuring plans in the past in an effort to operate more efficiently. The prior restructuring plans were primarily comprised of severance and termination benefits related to headcount reductions and lease loss estimates related to facilities vacated under the restructuring plans. | ||||||||||||||||
As of December 28, 2013, the total amount accrued for facility-related lease loss charges resulting from Cadence's restructuring plans was $3.6 million. The maximum lease loss could be as high as $6.3 million and will be influenced by rental rates and the ability to find and maintain tenants to sublease the vacated facilities. The cash payments related to these facilities, net of sublease income, if any, will be made through 2025. | ||||||||||||||||
The remaining accrual for Cadence's restructuring plans is recorded in the consolidated balance sheet as follows: | ||||||||||||||||
As of | ||||||||||||||||
December 28, 2013 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 10,139 | ||||||||||||||
Other long-term liabilities | 4,085 | |||||||||||||||
Total accrued as of December 28, 2013 | $ | 14,224 | ||||||||||||||
The following table presents activity for Cadence's restructuring plans during fiscal 2013, 2012 and 2011: | ||||||||||||||||
Severance | Excess | Other | Total | |||||||||||||
and | Facilities | |||||||||||||||
Benefits | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance, January 1, 2011 | $ | 9,198 | $ | 5,868 | $ | 5 | $ | 15,071 | ||||||||
Restructuring and other charges (credits), net | (944 | ) | 1,304 | — | 360 | |||||||||||
Non-cash charges | — | 137 | — | 137 | ||||||||||||
Cash payments | (8,385 | ) | (2,219 | ) | — | (10,604 | ) | |||||||||
Effect of foreign currency translation | 177 | (114 | ) | — | 63 | |||||||||||
Balance, December 31, 2011 | $ | 46 | $ | 4,976 | $ | 5 | $ | 5,027 | ||||||||
Restructuring and other charges (credits), net | (29 | ) | 147 | (5 | ) | 113 | ||||||||||
Cash payments | (17 | ) | (906 | ) | — | (923 | ) | |||||||||
Effect of foreign currency translation | — | 126 | — | 126 | ||||||||||||
Balance, December 29, 2012 | $ | — | $ | 4,343 | $ | — | $ | 4,343 | ||||||||
Restructuring and other charges, net | 17,589 | 101 | 309 | 17,999 | ||||||||||||
Non-cash charges (credits) | — | — | (309 | ) | (309 | ) | ||||||||||
Cash payments | (6,944 | ) | (951 | ) | — | (7,895 | ) | |||||||||
Effect of foreign currency translation | 27 | 59 | — | 86 | ||||||||||||
Balance, December 28, 2013 | $ | 10,672 | $ | 3,552 | $ | — | $ | 14,224 | ||||||||
Net_Income_per_Share
Net Income per Share | 12 Months Ended | |||||||||||
Dec. 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 fiscal 2013, 2012 and 2011 are as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Net income | $ | 164,243 | $ | 439,948 | $ | 72,229 | ||||||
Weighted-average common shares used to calculate basic net income per share | 277,796 | 270,479 | 263,892 | |||||||||
2023 Notes | 8 | 11 | 11 | |||||||||
2015 Warrants | 10,549 | 4,237 | — | |||||||||
Stock-based awards | 6,211 | 5,940 | 6,913 | |||||||||
Weighted-average common shares used to calculate diluted net income per share | 294,564 | 280,667 | 270,816 | |||||||||
Net income per share - basic | $ | 0.59 | $ | 1.63 | $ | 0.27 | ||||||
Net income per share - diluted | $ | 0.56 | $ | 1.57 | $ | 0.27 | ||||||
The following table presents shares of Cadence's common stock outstanding for fiscal 2013, 2012 and 2011 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: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
2015 Warrants | — | — | 46,382 | |||||||||
2013 and 2011 Warrants | 6,830 | 6,830 | 13,922 | |||||||||
Options to purchase shares of common stock | 5,973 | 11,501 | 17,580 | |||||||||
Non-vested shares of restricted stock | 846 | 70 | 800 | |||||||||
Total potential common shares excluded | 13,649 | 18,401 | 78,684 | |||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | |||||||||||
Dec. 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 consolidated statements of comprehensive income. | ||||||||||||
Accumulated other comprehensive income was comprised of the following as of December 28, 2013, and December 29, 2012: | ||||||||||||
As of | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||
Foreign currency translation gain | $ | 27,183 | $ | 48,653 | ||||||||
Changes in defined benefit plan liabilities | (3,218 | ) | (5,229 | ) | ||||||||
Unrealized holding gains on available-for-sale securities | 346 | 526 | ||||||||||
Total accumulated other comprehensive income | $ | 24,311 | $ | 43,950 | ||||||||
For fiscal 2013, 2012 and 2011, there were no significant amounts reclassified to net income from foreign currency translation gain or changes in defined benefit plan liabilities components of accumulated other comprehensive income. | ||||||||||||
Changes in unrealized holding gains or losses on available-for-sale securities includes the following for fiscal 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Unrealized holding gains or losses | $ | (127 | ) | $ | (764 | ) | $ | 50 | ||||
Tax effect of unrealized holding gains | — | — | 2,882 | |||||||||
Reclassification of unrealized holding gains or losses to other income, net | (53 | ) | (141 | ) | (8,072 | ) | ||||||
Changes in unrealized holding gains | $ | (180 | ) | $ | (905 | ) | $ | (5,140 | ) | |||
or losses | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Commitments and Contingencies | ' | |||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Lease Commitments | ||||||||||||
Equipment and facilities are leased under various operating leases expiring at various dates through 2025. Certain of these leases contain renewal options and escalating rent payments. Rental expense is recognized on a straight-line basis and was as follows during fiscal 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Rent expense | $ | 21,667 | $ | 20,082 | $ | 20,633 | ||||||
As of December 28, 2013, future minimum lease payments under non-cancelable operating leases were as follows: | ||||||||||||
Committed | ||||||||||||
Operating | Sub-lease | Net Operating | ||||||||||
Leases | Income | Leases | ||||||||||
For the fiscal years: | (In thousands) | |||||||||||
2014 | $ | 23,233 | $ | (902 | ) | $ | 22,331 | |||||
2015 | 20,109 | (530 | ) | 19,579 | ||||||||
2016 | 15,664 | (282 | ) | 15,382 | ||||||||
2017 | 8,046 | (90 | ) | 7,956 | ||||||||
2018 | 5,537 | — | 5,537 | |||||||||
Thereafter | 9,634 | — | 9,634 | |||||||||
Total lease payments | $ | 82,223 | $ | (1,804 | ) | $ | 80,419 | |||||
Of the operating lease payments noted above, $3.6 million was accrued as part of Cadence's restructuring plans as of December 28, 2013 and will be charged against the restructuring accrual as paid. | ||||||||||||
Purchase Obligations | ||||||||||||
Cadence had purchase obligations of $78.2 million as of December 28, 2013 that were associated with agreements or commitments for purchases of goods or services. | ||||||||||||
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 fiscal 2013, 2012 and 2011. | ||||||||||||
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 fiscal 2013, 2012 and 2011. |
Employee_and_Director_Benefit_
Employee and Director Benefit Plans | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Employee and Director Benefit Plans | ' | |||||||||||
EMPLOYEE AND DIRECTOR BENEFIT PLANS | ||||||||||||
Cadence maintains various defined contribution plans for its eligible U.S. and non-U.S. employees. For employees in the United States, Cadence maintains a 401(k) savings plan to provide retirement benefits through tax-deferred salary deductions and may make discretionary contributions, as determined by the Board of Directors, which cannot exceed a specified percentage of the annual aggregate salaries of those employees eligible to participate. Cadence's total contributions made to these plans during fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Contributions to defined contribution plans | $ | 20,055 | $ | 17,896 | $ | 16,244 | ||||||
Executive Officers and Directors may also elect to defer compensation payable to them under Cadence's NQDC. Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. These investments are classified as trading securities in the consolidated balance sheets and gains and losses are recognized as other income (expense) in the consolidated income statements. Net recognized gains (losses) of trading securities during fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Trading securities | $ | 3,293 | $ | 4,453 | $ | (472 | ) | |||||
Certain of Cadence's international subsidiaries sponsor defined benefit retirement plans. The unfunded projected benefit obligation for Cadence's defined benefit retirement plans is recorded in other long-term liabilities in the consolidated balance sheets. The unfunded projected benefit obligation for these retirement plans as of December 28, 2013, December 29, 2012 and December 31, 2011 was as follows: | ||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | ||||||||||
(In thousands) | ||||||||||||
Unfunded projected benefit obligation - defined benefit retirement plans | $ | 7,160 | $ | 9,400 | $ | 8,889 | ||||||
Cadence recorded total expense related to these defined benefit retirement plans during fiscal 2013, 2012 and 2011 as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Expense related to defined benefit retirement plans | $ | 1,817 | $ | 1,580 | $ | 2,175 | ||||||
Other_Income_Net
Other Income, Net | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
OTHER INCOME, NET | ' | |||||||||||
OTHER INCOME, NET | ||||||||||||
Cadence's other income, net, for fiscal 2013, 2012 and 2011 was as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Interest income | $ | 1,706 | $ | 1,473 | $ | 1,303 | ||||||
Gains on sale of marketable debt and equity securities, net | 1,364 | 141 | 8,009 | |||||||||
Gains on sale of non-marketable investments | 1,230 | 2,895 | 8,281 | |||||||||
Gains (losses) on securities in NQDC trust | 3,293 | 4,453 | (472 | ) | ||||||||
Gains on foreign exchange | 285 | 3,263 | 740 | |||||||||
Write-down of non-marketable investments | (464 | ) | (1,103 | ) | — | |||||||
Other income, net | 156 | 219 | 213 | |||||||||
Total other income, net | $ | 7,570 | $ | 11,341 | $ | 18,074 | ||||||
Stock_Repurchase_Programs
Stock Repurchase Programs | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Equity [Abstract] | ' | |||||||
STOCK REPURCHASE PROGRAMS | ' | |||||||
STOCK REPURCHASE PROGRAMS | ||||||||
Cadence's Board of Directors has authorized the following programs to repurchase shares of Cadence's common stock in the open market, which remained in effect on December 28, 2013: | ||||||||
Remaining | ||||||||
Authorization Date | Amount | Authorization | ||||||
(In thousands) | ||||||||
Feb-08 | $ | 500,000 | $ | 314,389 | ||||
Aug-08 | 500,000 | 500,000 | ||||||
Total remaining authorization | $ | 814,389 | ||||||
As described in Note 3, Cadence's revolving credit facility restricts certain payments, including share repurchases. There were no shares repurchased under Cadence's stock repurchase programs during fiscal 2013, 2012 or 2011. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Dec. 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 fiscal 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Americas: | ||||||||||||
United States | $ | 648,714 | $ | 567,609 | $ | 489,438 | ||||||
Other Americas | 22,940 | 22,967 | 25,152 | |||||||||
Total Americas | 671,654 | 590,576 | 514,590 | |||||||||
Europe, Middle East and Africa | 303,593 | 262,375 | 234,880 | |||||||||
Japan | 195,804 | 218,731 | 204,388 | |||||||||
Asia | 289,065 | 254,742 | 195,977 | |||||||||
Total | $ | 1,460,116 | $ | 1,326,424 | $ | 1,149,835 | ||||||
The following table presents a summary of long-lived assets by geography as of December 28, 2013, December 29, 2012 and December 31, 2011: | ||||||||||||
As of | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Americas: | ||||||||||||
United States | $ | 207,694 | $ | 214,711 | $ | 230,884 | ||||||
Other Americas | 294 | 185 | 35 | |||||||||
Total Americas | 207,988 | 214,896 | 230,919 | |||||||||
Europe, Middle East and Africa | 6,326 | 5,410 | 4,813 | |||||||||
Japan | 893 | 1,649 | 3,960 | |||||||||
Asia | 23,508 | 22,484 | 22,825 | |||||||||
Total | $ | 238,715 | $ | 244,439 | $ | 262,517 | ||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 28, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENT | ' |
SUBSEQUENT EVENTS | |
Subsequent to December 28, 2013, Cadence completed two acquisitions for an aggregate cash consideration of approximately $28.0 million, net of an estimated $2.0 million of cash acquired. Cadence is in the process of determining the fair values of the net assets acquired and will include the acquired companies’ results of operations in its financial statements with effect from the purchase dates. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 28, 2013 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation and Basis of Presentation | ' | |
Principles of Consolidation and Basis of Presentation | ||
Cadence's fiscal year-end is the Saturday closest to December 31. The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. In the consolidated income statements for the three fiscal years ended December 28, 2013, During fiscal 2013, Cadence combined product and maintenance revenue into a single caption on the consolidated income statements 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 the current period presentation. | ||
Use of Estimates | ' | |
Use of Estimates | ||
Preparation of the 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||
Cash, Cash Equivalents and Short-Term Investments | ' | |
Cash, Cash Equivalents and Short-Term Investments | ||
Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents. Cadence's short-term investments include marketable debt securities with original maturities greater than three months on the date of purchase and marketable equity securities. Cadence considers its entire portfolio of marketable debt and equity securities to be available for sale and available to fund current operations. Available-for-sale debt and equity securities are carried at fair value, with the unrealized gains and losses presented net of tax as a separate component of other comprehensive income. Unrealized and realized gains and losses are determined using the specific identification method. | ||
Cadence recognizes gains on its available-for-sale securities when they are realized. Cadence recognizes losses on its available-for-sale securities when they are realized or when Cadence has determined that an other-than-temporary decline in fair value has occurred. For an available-for-sale debt security, an other-than-temporary decline in fair value has occurred when the security's fair value is less than its amortized cost basis and Cadence intends to sell the security, or it is more likely than not that Cadence will be required to sell the security before recovery of its amortized cost basis. Cadence records realized gains, realized losses and other-than-temporary impairments as part of other income, net in the consolidated income statements. | ||
Foreign Operations | ' | |
Foreign Operations | ||
Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence's consolidated entities operating in the United States and certain foreign subsidiaries. The functional currency for Cadence's other consolidated entities operating outside of the United States is generally the local country's currency. | ||
Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using the average exchange rate for the period. Cadence includes translation adjustments from foreign exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders' equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in the consolidated income statements. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Software and IP Revenue Recognition | ||
Cadence licenses its software and IP products using three different license types: | ||
• | Term licenses; | |
• | Subscription licenses; and | |
• | Perpetual licenses. | |
Term licenses - Cadence's term license arrangements offer customers the right to: | ||
• | Access and use all products delivered at the outset of an arrangement throughout the entire term of the arrangement, generally two to three years, with no rights to return; and | |
• | Remix among the products delivered at the outset of the arrangement, so long as the cumulative contractual value of all products in use does not exceed the total license fee determined at the outset of the arrangement. | |
Subscription licenses - In addition to the rights of a term license, Cadence's subscription license arrangements also offer customers the right to: | ||
• | Use unspecified additional products that become commercially available during the term of the arrangement; and | |
• | Remix into other unspecified additional products that may become available during the term of the arrangement, so long as the cumulative contractual value of all products in use does not exceed the total license fee determined at the outset of the arrangement. | |
Perpetual licenses - Cadence's perpetual licenses consist of software licensed on a perpetual basis with no right to return or ability to remix the licensed software. Cadence licenses its design IP under a perpetual license on a per-design basis. | ||
In general, where vendor specific objective evidence of fair value, or VSOE, does not exist for any undelivered element, product and maintenance revenue associated with term and subscription licenses is recognized ratably over the term of the license, commencing upon the later of the effective date of the arrangement or delivery of the licensed product. In general, product revenue associated with term licenses where VSOE exists for the undelivered maintenance is recognized upon the later of the effective date of the arrangement or delivery of the licensed product, and maintenance revenue is recognized ratably over the maintenance term. | ||
In general, product revenue associated with perpetual licenses where VSOE exists for the undelivered maintenance is recognized upon delivery of the licensed product and maintenance revenue is recognized ratably over the maintenance term. If VSOE does not exist for the undelivered maintenance in a perpetual license, product revenue is recognized ratably over the maintenance term. | ||
Hardware Revenue Recognition | ||
Cadence generally has a minimum of two deliverables in arrangements involving the sale or lease of its hardware products. The first deliverable is the hardware product and software essential to the functionality of the hardware product, and the second deliverable is the right to receive maintenance on the hardware product and its software. Cadence allocates consideration between these deliverables based on the relative standalone selling price for each deliverable. Consideration allocated to the hardware product and its essential software is recognized as revenue at the time of delivery provided all other conditions for revenue recognition have been met. Consideration allocated to maintenance is recognized as revenue ratably over the maintenance term. | ||
Services Revenue Recognition | ||
Services revenue primarily consists of revenue received for performing engineering services. These services are generally not related to the functionality of the products licensed. In certain instances, Cadence will customize its IP on a fixed fee basis. Revenue from service contracts is recognized either on the time and materials method, as work is performed, or on the percentage-of-completion method. If a service contract is considered to be part of a multiple element arrangement, or MEA, that includes a software contract, revenue is generally recognized ratably over the duration of the software contract. For contracts with fixed or not-to-exceed fees, Cadence estimates on a monthly basis the percentage-of-completion based on the completion of milestones relating to the arrangement. Cadence has a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. If different conditions were to prevail such that accurate estimates could not be made, then the use of the completed contract method would be required and the recognition of all revenue and costs would be deferred until the project was completed. Such a change could have a material impact on Cadence's results of operations. | ||
Revenue Recognition Criteria | ||
Although the timing and amount of revenue recognition differs based on the deliverables in each arrangement, Cadence begins revenue recognition for an arrangement when persuasive evidence of an arrangement exists, all specified deliverables have been delivered, the fee is fixed or determinable, and collection of the resulting receivable is probable. | ||
Persuasive evidence of an arrangement - Generally, Cadence uses a contract signed by the customer as evidence of an arrangement for subscription and term licenses, licenses of its IP products and hardware leases. If a contract signed by the customer does not exist, Cadence has historically used a purchase order as evidence of an arrangement for software perpetual licenses, hardware sales, maintenance renewals and small fixed-price service projects, such as training classes and small methodology service engagements. For all other service engagements, Cadence uses a signed professional services agreement and a statement of work to evidence an arrangement. In cases where both a signed contract and a purchase order exist, Cadence considers the signed contract to be the most persuasive evidence of the arrangement. Sales through Cadence's distributors are evidenced by a master agreement governing the relationship, together with binding purchase orders from the distributor on a transaction-by-transaction basis. | ||
Product delivery - Software and VIP, and the corresponding access keys are generally delivered to customers electronically. Electronic delivery occurs when Cadence provides the customer access to the software. Occasionally, Cadence will deliver software on a DVD with standard transfer terms of free-on-board, or F.O.B., shipping point. Design IP is also delivered electronically via download from a secure site. Cadence's software and IP license agreements generally do not contain conditions for acceptance. Delivery of an entire hardware system is deemed to occur upon its successful installation. For certain hardware products, installation is the responsibility of the customer, as the system is fully functional at the time of shipment and delivery is deemed to be complete when the products are shipped with freight terms of F.O.B. shipping point. | ||
Fee is fixed or determinable - Cadence assesses whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. Cadence has established a history of collecting under the original contract without providing concessions on payments, products or services. For installment contracts that do not include a substantial up-front payment, Cadence only considers that a fee is fixed or determinable if the arrangement has payment periods that are equal to or less than the term of the licenses and the payments are collected in equal or nearly equal installments, when evaluated over the entire term of the arrangement. Cadence has a history of collecting receivables under software installment contracts of up to five years for which the fee has been assessed as fixed or determinable. | ||
Significant judgment is involved in assessing whether a fee is fixed or determinable. Cadence must also make these judgments when assessing whether a contract amendment to a term arrangement (primarily in the context of a license extension or renewal) constitutes a concession. Cadence's experience has been that it is able to determine whether a fee is fixed or determinable. While Cadence does not expect that experience to change, if Cadence no longer were to have a history of collecting under the original contract without providing concessions, revenue would be required to be recognized when payments become due and payable. Such a change could have a material impact on Cadence's results of operations. | ||
Collection is probable - Cadence assesses the probability of collecting from each customer at the outset of the arrangement based on a number of factors, including the customer's payment history, its current creditworthiness and geographic location. If in Cadence's judgment collection of a fee is not probable, Cadence does not record revenue until the uncertainty is removed, which is generally upon receipt of cash payment. | ||
Multiple Element Arrangements | ||
An MEA is any arrangement that includes or contemplates rights for a combination of software, IP or hardware products, services, training or maintenance in a single arrangement. From time to time, Cadence may include individual deliverables in separately priced and separately executed contracts with the same customer. Cadence evaluates all relevant facts and circumstances in determining whether the separate contracts should be accounted for individually as distinct arrangements or whether the separate contracts are, in substance, an MEA. Significant judgment is involved in determining whether a group of contracts might be so closely related that they are, in effect, part of a single arrangement. Cadence's judgments about whether several contracts together comprise an MEA can affect the timing of revenue recognition under those contracts, which could have an effect on its results of operations for the periods involved. | ||
For an MEA that includes software and nonsoftware elements, Cadence allocates consideration to all software elements as a group and all nonsoftware elements based on their relative standalone selling prices. In these circumstances, Cadence is required to use a hierarchy to determine the standalone selling price to be used for allocating consideration to deliverables as follows: | ||
• | Vendor specific objective evidence of fair value, or VSOE; | |
• | Third-party evidence of selling price, or TPE; and | |
• | Best estimate of the selling price, or BESP. | |
Vendor-specific objective evidence of fair value - Cadence's VSOE for maintenance is based upon the customer's stated annual renewal rates and VSOE for services is based on the price charged when the services are sold separately. Cadence has not established VSOE for certain products, including software and IP licenses and hardware products, or for annual maintenance that is not cancellable by the customer. | ||
Third-party evidence of selling price - TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, Cadence's offerings contain significant differentiation such that comparable pricing of products with similar functionality cannot be obtained. Furthermore, Cadence is unable to reliably determine what similar competitor products' selling prices are when those products are sold on a standalone basis. Therefore, Cadence typically is not able to obtain TPE and TPE is not used to determine any standalone selling prices. | ||
Best estimate of the selling price - Cadence calculates the BESP of its hardware products based on its pricing practices, including the historical average prices charged for comparable hardware products. Cadence's process for determining BESP for its software deliverables takes into account multiple factors that vary depending upon the unique facts and circumstances related to each deliverable. Key external and internal factors considered in developing the BESPs include prices charged by Cadence for similar arrangements, historical pricing practices and the nature of the product. In addition, when developing BESPs, Cadence may consider other factors as appropriate, including the pricing of competitive alternatives if they exist, and product-specific business objectives. | ||
For MEAs that contain software and nonsoftware elements, Cadence allocates the consideration to software or software-related elements as a group, and to any nonsoftware element separately based on the standalone selling price hierarchy. The consideration allocated to each element is then recognized as revenue when the basic revenue recognition criteria are met for each element. Once the consideration is allocated to the group of software and software-related elements, it then follows the recognition principles of software revenue recognition accounting standards. | ||
For MEAs involving only software and software-related deliverables, VSOE must exist to allocate the total fee among all delivered and undelivered elements, or if VSOE of all undelivered elements exists, revenue is recognized using the residual method. Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized up-front as the elements are delivered. If VSOE does not exist for all elements to support the allocation of the total fee among all elements of the arrangement, or if VSOE does not exist for all undelivered elements to apply the residual method, revenue is recognized ratably over the term of the undelivered elements. | ||
Other Factors Regarding Revenue Recognition | ||
Taxes collected from customers and remitted to governmental authorities - Cadence applies the net basis presentation for taxes collected from customers and remitted to governmental authorities. | ||
Derivative Financial Instruments | ' | |
Derivative Financial Instruments | ||
Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income, net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less. | ||
Receivables | ' | |
Receivables | ||
Cadence's receivables, net includes invoiced accounts receivable and the current portion of unbilled installment contract receivables. Installment contract receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time. Cadence's accounts receivable and installment contract receivables were initially recorded at fair value. Cadence discounts the total product portion of each customer arrangement to reflect the interest component of the arrangement and amortizes the interest component of the transaction. The interest component is recognized as product and maintenance revenue over the period in which payments are made and balances are outstanding, using a method that approximates the effective interest method. Cadence determines the discount rate at the outset of the arrangement based upon the credit rating of the customer at that time. Cadence resets the discount rate periodically considering changes in prevailing interest rates but does not adjust previously discounted balances. Cadence's long-term receivables balance includes installment contract receivable balances to be invoiced more than one year after each balance sheet date. | ||
Allowance for Doubtful Accounts | ' | |
Allowances for Doubtful Accounts | ||
Each fiscal quarter, Cadence assesses its ability to collect outstanding receivables, and provides allowances for a portion of its receivables when collection is not probable. Cadence analyzes the creditworthiness of its customers, historical experience, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions are made based upon a specific review of customer receivables and are recorded in operating expenses. | ||
Inventories | ' | |
Inventories | ||
Inventories are stated at the lower of cost or market value. Cadence's inventories include high technology parts and components for complex hardware systems that emulate the performance and operation of computer IC and electronics systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to minimize the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term. Cadence's policy is to reserve for inventory in excess of 12-month demand or for other known obsolescence or realization issues. | ||
Due to the complex nature of Cadence's emulation systems, Cadence purchases certain inventory components from sole suppliers. As a result, Cadence may be exposed to the risk of delays in receiving these components due to its reliance on single suppliers and due to manufacturing constraints or other delays in the manufacturing process. | ||
Property, Plant and Equipment | ' | |
Property, Plant and Equipment | ||
Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows: | ||
Computer equipment and related software | 2-7 years | |
Buildings | 25-32 years | |
Leasehold improvements | Shorter of the lease term | |
or the estimated useful life | ||
Building improvements and land improvements | Estimated useful life | |
Furniture and fixtures | 3-5 years | |
Equipment | 3-5 years | |
Cadence capitalizes certain costs of software developed for internal use. Capitalization of software developed for internal use begins at the application development phase of the project. Amortization begins when the computer software is substantially complete and ready for its intended use. Amortization is recorded on a straight-line basis over the estimated useful life. | ||
Software Development Costs | ' | |
Software Development Costs | ||
Software development costs are capitalized beginning when a product's technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence's products has typically been of short duration. Costs incurred during fiscal 2013, 2012 and 2011 were not material. | ||
Goodwill | ' | |
Goodwill | ||
Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence's single reporting unit may be less than its carrying amount. Cadence's goodwill impairment test consists of two steps. The first step requires that Cadence compare the estimated fair value of its single reporting unit to the carrying value of the reporting unit's net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to complete the second step of the test by analyzing the fair value of its goodwill. If the carrying value of the goodwill exceeds its fair value, an impairment charge is recorded. | ||
Long-lived Assets, Including Acquired Intangibles | ' | |
Long-Lived Assets, Including Acquired Intangibles | ||
Cadence's definite-lived, long-lived assets consist of property, plant and equipment and other acquired intangibles. Acquired intangibles with definite lives are amortized on a straight-line basis over the remaining estimated economic life of the underlying products and technologies, which range from one to fourteen years. Cadence reviews its definite-lived, long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value. | ||
Non-Marketable Investments | ' | |
Non-Marketable Investments | ||
Cadence's non-marketable investments include its investments in privately-held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using either the cost method or the equity method of accounting. Cadence reviews the fair value of its non-marketable investments on a regular basis to determine whether the investments in these companies are other-than-temporarily impaired. Cadence considers investee financial performance and other information received from the investee companies, as well as any other available estimates of the fair value of the investee companies in its review. If Cadence determines the carrying value of an investment exceeds its fair value, and that difference is other than temporary, Cadence writes down the value of the investment to its fair value. Cadence records investment write-downs in other income, net, in the consolidated income statements. | ||
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 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. | ||
Nonqualified Deferred Compensation Trust | ' | |
Nonqualified Deferred Compensation Trust | ||
Executive officers, senior management and members of Cadence's Board of Directors may elect to defer compensation payable to them under Cadence's Nonqualified Deferred Compensation Plan, or the NQDC. Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. | ||
The selected investments held in the NQDC accounts are classified as trading securities. Trading securities are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income, net. These trading securities are classified in other assets in the consolidated balance sheets because the securities are not available for Cadence's use in its operations. | ||
Cadence's obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements. | ||
Deferred Revenue | ' | |
Deferred Revenue | ||
Deferred revenue arises when customers are billed for products or services in advance of revenue recognition. Cadence's deferred revenue consists primarily of unearned revenue on product licenses and the related maintenance for which revenue is recognized over the duration of the license. The fees under product licenses for which revenue is not recognized immediately and for maintenance in connection with term and subscription licenses are generally billed quarterly in advance and the related revenue is recognized over multiple periods over the ensuing license period. Maintenance on perpetual licenses is generally renewed annually, billed in full in advance, and the corresponding revenue is recognized over the 12-month maintenance term. | ||
Comprehensive Income | ' | |
Comprehensive Income | ||
Other comprehensive income (loss) is reported as a component of stockholders' equity and includes foreign currency translation gains and losses, changes in defined benefit plan liabilities, and unrealized gains and losses on marketable securities that are available for sale. Cadence reports comprehensive income (loss) in the consolidated statements of comprehensive income. | ||
Accounting for Income Taxes | ' | |
Accounting for Income Taxes | ||
Cadence accounts for the effect of income taxes in its consolidated financial statements using the asset and liability method. This process involves estimating actual current tax liabilities together with assessing carryforwards and temporary differences resulting from differing treatment of items, such as depreciation, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, measured using enacted tax rates expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. | ||
Cadence then records a valuation allowance to reduce the deferred tax assets to the amount that Cadence believes is more likely than not to be realized based on its judgment of all available positive and negative evidence. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. This assessment, which is completed on a taxing jurisdiction basis, takes into account a number of types of evidence, including the following: | ||
• | The nature, frequency and severity of current or cumulative financial reporting income or losses; | |
• | Sources of future taxable income; | |
• | The anticipated reversal or expiration dates of the deferred tax assets; and | |
• | Tax planning strategies. | |
Cadence takes a two-step approach to recognizing and measuring the financial statement benefit of uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon effective settlement of the audit. Cadence classifies interest and penalties on unrecognized tax benefits as income tax expense or benefit. | ||
Restructuring Charges | ' | |
Restructuring Charges | ||
Cadence records personnel-related restructuring charges with customary termination benefits when the costs are both probable and estimable. Cadence records personnel-related restructuring charges with non-standard termination benefits when the plan has been communicated to the affected employees. Cadence records facilities-related restructuring charges in the period in which the affected facilities are vacated. In connection with facilities-related restructuring plans, Cadence has made a number of estimates and assumptions related to losses on excess facilities that have been vacated or consolidated, particularly the timing of subleases and sublease terms. Closure and space reduction costs included in the restructuring charges include payments required under leases less any applicable estimated sublease income after the facilities are abandoned, lease buyout costs and certain contractual costs to maintain facilities during the period after abandonment. | ||
In addition, Cadence has recorded estimated provisions for termination benefits and outplacement costs, long-term asset impairments and other restructuring costs. Cadence regularly evaluates the adequacy of its lease losses, severance and related benefits accruals, and adjusts the balances based on actual costs incurred or changes in estimates and assumptions. Subsequent adjustments to restructuring accruals are classified in restructuring and other charges in the consolidated income statements. | ||
Stock-Based Compensation | ' | |
Stock-Based Compensation | ||
Cadence recognizes the cost of employee services received in exchange for awards of equity instruments as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the award and is recognized as expense, less expected forfeitures, over the requisite service period, which is typically the vesting period. Cadence recognizes stock-based compensation expense on the straight-line method for awards that only contain a service condition and on the graded-vesting method for awards that contain both a service and performance condition. | ||
Treasury Stock | ' | |
Treasury Stock | ||
Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders' equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of accumulated deficit in the consolidated statements of stockholders' equity. | ||
Concentrations of Credit Risk | ' | |
Concentrations of Credit Risk | ||
Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, short-term investments, long-term investments, accounts receivable and forward contracts. Cadence's short-term investments include debt securities issued by financial institutions, corporations, the United States Treasury and other United States government agencies. | ||
Credit exposure related to Cadence's foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. | ||
Advertising | ' | |
Advertising | ||
Cadence expenses the costs of advertising as incurred. | ||
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 fiscal 2013. | ||
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. | ||
Commitments and 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. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 28, 2013 | ||
Summary of Significant Accounting Policies [Abstract] | ' | |
Depreciation and amortization over the estimated useful lives, using the straight-line method | ' | |
Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows: | ||
Computer equipment and related software | 2-7 years | |
Buildings | 25-32 years | |
Leasehold improvements | Shorter of the lease term | |
or the estimated useful life | ||
Building improvements and land improvements | Estimated useful life | |
Furniture and fixtures | 3-5 years | |
Equipment | 3-5 years |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Summary of debt outstanding | ' | |||||||||||||||||||||||
Cadence's outstanding debt as of December 28, 2013 and December 29, 2012 was as follows: | ||||||||||||||||||||||||
28-Dec-13 | December 29, 2012 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Principal | Unamortized Discount | Carrying Value | Principal | Unamortized Discount | Carrying Value | |||||||||||||||||||
2015 Notes | $ | 350,000 | $ | (25,174 | ) | $ | 324,826 | $ | 350,000 | $ | (41,181 | ) | $ | 308,819 | ||||||||||
2013 Notes | — | — | — | 144,461 | (6,447 | ) | 138,014 | |||||||||||||||||
2023 Notes | — | — | — | 178 | — | 178 | ||||||||||||||||||
Revolving credit facility | — | — | — | — | — | — | ||||||||||||||||||
Total outstanding debt | $ | 350,000 | $ | (25,174 | ) | $ | 324,826 | $ | 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) | ||||||||||||||||||||||||
Outstanding principal maturity value – at December 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 holders of the notes 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 fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 8.1 | % | 8.1 | % | 8.1 | % | ||||||||||||||||||
Contractual interest expense | $ | 9,157 | $ | 9,157 | $ | 9,157 | ||||||||||||||||||
Amortization of debt discount | 16,007 | 14,758 | 13,665 | |||||||||||||||||||||
Total interest expense | $ | 25,164 | $ | 23,915 | $ | 22,822 | ||||||||||||||||||
Effective interest rate and components of interest expense of 2013 notes and 2011 notes | ' | |||||||||||||||||||||||
The effective interest rate and components of interest expense of the 2013 Notes for fiscal 2013 and 2012 and of the 2013 Notes and 2011 Notes for fiscal 2011, were as follows: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 6.4 | % | 6.4 | % | 6.3 | % | ||||||||||||||||||
Contractual interest expense | $ | 2,082 | $ | 2,159 | $ | 4,119 | ||||||||||||||||||
Amortization of debt discount | 6,447 | 6,272 | 12,654 | |||||||||||||||||||||
Total interest expense | $ | 8,529 | $ | 8,431 | $ | 16,773 | ||||||||||||||||||
Z |
Acquisitions_and_AcquisitionRe1
Acquisitions and Acquisition-Related Contingent Consideration (Tables) | 12 Months Ended | |||||||||||
Dec. 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 fiscal 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 fiscal 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. | ||||||||||||
2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||
Total revenue | $ | 1,480,273 | $ | 1,358,158 | ||||||||
Net income | $ | 173,528 | $ | 392,744 | ||||||||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangibles (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Changes in the carrying amount of goodwill | ' | |||||||||||
The changes in the carrying amount of goodwill during fiscal 2013 and 2012 were as follows: | ||||||||||||
Gross Carrying | ||||||||||||
Amount | ||||||||||||
(In thousands) | ||||||||||||
Balance as of December 31, 2011 | $ | 192,125 | ||||||||||
Goodwill resulting from acquisitions | 39,680 | |||||||||||
Additions due to contingent consideration* | 1,041 | |||||||||||
Effect of foreign currency translation | 420 | |||||||||||
Balance as of December 29, 2012 | $ | 233,266 | ||||||||||
Goodwill resulting from acquisitions | 227,959 | |||||||||||
Effect of foreign currency translation | (4,320 | ) | ||||||||||
Balance as of December 28, 2013 | $ | 456,905 | ||||||||||
_________ | ||||||||||||
* Cadence accounts for business combinations with acquisition dates on or before January 3, 2009 under the purchase method in accordance with accounting standards that were authoritative at that time, whereby contingent consideration is added to goodwill as it is earned. | ||||||||||||
Acquired intangibles with finite and indefinite lives (excluding goodwill), excluding intangibles fully amortized at end of prior fiscal year | ' | |||||||||||
Acquired intangibles with 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 December 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) | ||||||||||||
Acquired intangibles with definite lives: | ||||||||||||
Existing technology | $ | 237,624 | $ | (53,243 | ) | $ | 184,381 | |||||
Agreements and relationships | 170,760 | (53,607 | ) | 117,153 | ||||||||
Distribution rights | 30,100 | (30,100 | ) | — | ||||||||
Tradenames, trademarks and patents | 9,519 | (2,870 | ) | 6,649 | ||||||||
Total acquired intangibles with definite lives | 448,003 | (139,820 | ) | 308,183 | ||||||||
In-process technology | 3,510 | — | 3,510 | |||||||||
Total acquired intangibles | $ | 451,513 | $ | (139,820 | ) | $ | 311,693 | |||||
Amortization of acquired intangibles | ' | |||||||||||
Amortization expense for fiscal 2013, 2012 and 2011, by consolidated income statement caption, was as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Cost of product and maintenance | $ | 24,023 | $ | 13,541 | $ | 10,480 | ||||||
Amortization of acquired intangibles | 19,416 | 15,077 | 16,536 | |||||||||
Total amortization of acquired intangibles | $ | 43,439 | $ | 28,618 | $ | 27,016 | ||||||
Estimated amortization expense | ' | |||||||||||
Estimated amortization expense for intangible assets with definite lives for the following five fiscal years and thereafter is as follows: | ||||||||||||
(In thousands) | ||||||||||||
2014 | $ | 49,525 | ||||||||||
2015 | 48,972 | |||||||||||
2016 | 43,261 | |||||||||||
2017 | 39,654 | |||||||||||
2018 | 36,803 | |||||||||||
Thereafter | 89,968 | |||||||||||
Total estimated amortization expense | $ | 308,183 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income (loss) before provision (benefit) for income taxes | ' | |||||||||||
Cadence's income before provision (benefit) for income taxes included income from the United States and from foreign subsidiaries for fiscal 2013, 2012 and 2011, is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
United States | $ | 20,092 | $ | 61,865 | $ | 39,175 | ||||||
Foreign subsidiaries | 138,904 | 126,406 | 56,251 | |||||||||
Total income before provision (benefit) for income taxes | $ | 158,996 | $ | 188,271 | $ | 95,426 | ||||||
Components of income taxes provision (benefits) | ' | |||||||||||
Cadence's provision (benefit) for income taxes was comprised of the following items for fiscal 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | (40,494 | ) | $ | (588 | ) | $ | (662 | ) | |||
State and local | 2,574 | (36,650 | ) | 1,363 | ||||||||
Foreign | 28,040 | 19,409 | 13,752 | |||||||||
Total current | (9,880 | ) | (17,829 | ) | 14,453 | |||||||
Deferred: | ||||||||||||
Federal | 4,888 | (203,731 | ) | (4,937 | ) | |||||||
State and local | 3,037 | (28,894 | ) | (524 | ) | |||||||
Foreign | (10,291 | ) | (7,799 | ) | (2,350 | ) | ||||||
Total deferred | (2,366 | ) | (240,424 | ) | (7,811 | ) | ||||||
Tax expense allocated to shareholders' equity | 6,999 | 6,576 | 16,555 | |||||||||
Total provision (benefit) for income taxes | $ | (5,247 | ) | $ | (251,677 | ) | $ | 23,197 | ||||
Summary of income tax reconciliation | ' | |||||||||||
The provision (benefit) for income taxes differs from the amount estimated by applying the United States statutory federal income tax rate of 35% to income before provision (benefit) for income taxes for fiscal 2013, 2012 and 2011 as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Provision computed at federal statutory income tax rate | $ | 55,648 | $ | 65,895 | $ | 33,400 | ||||||
State and local income tax, net of federal tax effect | 4,085 | 3,626 | 6,493 | |||||||||
Foreign income tax rate differential | (36,392 | ) | (39,308 | ) | (6,676 | ) | ||||||
Non-deductible share-based compensation costs | 2,053 | 7,785 | 1,651 | |||||||||
Change in deferred tax asset valuation allowance | 18,354 | (301,542 | ) | (3,617 | ) | |||||||
Tax credits | (18,372 | ) | (3,744 | ) | (12,588 | ) | ||||||
Repatriation of foreign earnings | (2,116 | ) | (2,645 | ) | 708 | |||||||
Non-deductible research and development expense | 3,043 | 1,968 | — | |||||||||
Domestic production activity deduction | (1,088 | ) | — | — | ||||||||
Withholding taxes | 3,333 | 3,593 | 3,851 | |||||||||
Tax settlements, domestic | — | (37,481 | ) | 328 | ||||||||
Tax settlements, foreign | 680 | (804 | ) | (2,451 | ) | |||||||
Interest and penalties not included in tax settlements | 1,701 | 2,552 | 1,840 | |||||||||
Increase (decrease) in unrecognized tax benefits not included in tax settlements | (33,730 | ) | 47,329 | 933 | ||||||||
Other | (2,446 | ) | 1,099 | (675 | ) | |||||||
Provision (benefit) for income taxes | $ | (5,247 | ) | $ | (251,677 | ) | $ | 23,197 | ||||
Effective tax rate | (3 | )% | (134 | )% | 24 | % | ||||||
Components of deferred tax assets and liabilities | ' | |||||||||||
The components of deferred tax assets and liabilities consisted of the following as of December 28, 2013 and December 29, 2012: | ||||||||||||
As of | ||||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Tax credit carryforwards | $ | 159,839 | $ | 129,724 | ||||||||
Reserves and accruals | 49,450 | 50,960 | ||||||||||
Intangible assets | 45,948 | 56,512 | ||||||||||
Capitalized research and development expense for income tax purposes | 33,742 | 34,046 | ||||||||||
Operating loss carryforwards | 27,205 | 24,429 | ||||||||||
Deferred income | 25,420 | 27,237 | ||||||||||
Capital loss carryforwards | 22,050 | 23,026 | ||||||||||
Share-based compensation costs | 20,652 | 20,012 | ||||||||||
Depreciation and amortization | 11,167 | 8,979 | ||||||||||
Investments | 7,643 | 7,550 | ||||||||||
Other | 4,911 | 4,185 | ||||||||||
Total deferred tax assets | 408,027 | 386,660 | ||||||||||
Valuation allowance | (92,677 | ) | (74,323 | ) | ||||||||
Net deferred tax assets | 315,350 | 312,337 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | (66,775 | ) | (70,086 | ) | ||||||||
Undistributed foreign earnings | (17,301 | ) | (13,113 | ) | ||||||||
Other | (2,230 | ) | (965 | ) | ||||||||
Total deferred tax liabilities | (86,306 | ) | (84,164 | ) | ||||||||
Total net deferred tax assets | $ | 229,044 | $ | 228,173 | ||||||||
Unrealized share-based compensation deductions | ' | |||||||||||
As of December 28, 2013 and December 29, 2012, Cadence had unrealized share-based compensation deductions as follows: | ||||||||||||
As of | ||||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||||
(Tax Effected - In thousands) | ||||||||||||
Federal | $ | — | $ | 2,170 | ||||||||
California | 457 | 457 | ||||||||||
Summary of operating loss carryforward | ' | |||||||||||
As of December 28, 2013, Cadence's operating loss carryforwards were as follows: | ||||||||||||
Amount | Expiration Periods | |||||||||||
(in thousands) | ||||||||||||
Federal | $ | 5,394 | from 2021 through 2029 | |||||||||
California | 256,393 | from 2014 through 2031 | ||||||||||
Other states (tax effected, net of federal benefit) | 3,265 | from 2014 through 2031 | ||||||||||
Foreign (tax effected) | 7,777 | from 2021 through indefinite | ||||||||||
Summary of tax credit carryforwards | ' | |||||||||||
As of December 28, 2013, Cadence had tax credit carryforwards of: | ||||||||||||
Amount | Expiration Periods | |||||||||||
(in thousands) | ||||||||||||
Federal* | $ | 114,646 | from 2015 through 2030 | |||||||||
California | 24,946 | do not expire until utilized | ||||||||||
Other states | 5,572 | from 2014 through 2027 | ||||||||||
Foreign | 14,675 | from 2017 through 2031 | ||||||||||
_____________ | ||||||||||||
*Certain of Cadence's foreign tax credits are anticipated and as result do not yet have an expiration period. | ||||||||||||
Earliest tax years open to examination by jurisdiction | ' | |||||||||||
As of December 28, 2013, Cadence's earliest tax years that remain open to examination include: | ||||||||||||
Jurisdiction | Earliest Tax Year Open to Examination | |||||||||||
United States - Federal | 2010 | |||||||||||
United States - California | 2009 | |||||||||||
Israel | 2009 | |||||||||||
Hungary | 2007 | |||||||||||
Unrecognized tax benefits roll forward | ' | |||||||||||
The changes in Cadence's gross amount of unrecognized tax benefits during fiscal 2013, 2012 and 2011 are as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Unrecognized tax benefits at the beginning of the fiscal year | $ | 92,378 | $ | 98,812 | $ | 131,545 | ||||||
Gross amount of the increases (decreases) in unrecognized tax benefits of tax positions taken during a prior year* | 6,196 | 2,194 | (3,791 | ) | ||||||||
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 5,119 | 3,082 | 1,588 | |||||||||
Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes | (15,171 | ) | (11,768 | ) | (30,115 | ) | ||||||
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | (11,850 | ) | (189 | ) | (421 | ) | ||||||
Effect of foreign currency translation | 1,607 | 247 | 6 | |||||||||
Unrecognized tax benefits at the end of the fiscal year | $ | 78,279 | $ | 92,378 | $ | 98,812 | ||||||
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate | $ | 49,458 | 57,725 | $ | 75,057 | |||||||
_________ | ||||||||||||
* Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions | ||||||||||||
Interest and penalties recognized in consolidated income statements and balance sheets | ' | |||||||||||
The total amounts of interest and penalties recognized in the consolidated income statements as provision (benefit) for income taxes for fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Interest | $ | (12,470 | ) | $ | (11,184 | ) | $ | 2,173 | ||||
Penalties | (7,698 | ) | (1,862 | ) | (1,495 | ) | ||||||
The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||
As of | ||||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||||
(In thousands) | ||||||||||||
Interest | $ | 37 | $ | 24,427 | ||||||||
Penalties | 1,227 | 8,953 | ||||||||||
Receivables_and_Allowances_for1
Receivables and Allowances for Doubtful Accounts (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Current and long-term accounts receivable balances | ' | |||||||||||||||
Cadence's current and long-term receivables balances as of December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Accounts receivable | $ | 76,057 | $ | 67,259 | ||||||||||||
Unbilled accounts receivable | 31,567 | 30,647 | ||||||||||||||
Long-term receivables | 3,672 | 7,559 | ||||||||||||||
Total receivables | $ | 111,296 | $ | 105,465 | ||||||||||||
Less allowance for doubtful accounts | — | (85 | ) | |||||||||||||
Total receivables, net | $ | 111,296 | $ | 105,380 | ||||||||||||
Change in allowance for doubtful accounts | ' | |||||||||||||||
The following table presents the change in Cadence's allowance for doubtful accounts for fiscal 2013, 2012 and 2011: | ||||||||||||||||
Balance at Beginning of Period | (Charged to) Credited to Costs and Expenses | Uncollectible Accounts Written Off, Net | Balance at End of Period | |||||||||||||
(In thousands) | ||||||||||||||||
Year ended December 28, 2013 | $ | (85 | ) | $ | 85 | $ | — | $ | — | |||||||
Year ended December 29, 2012 | $ | — | $ | (215 | ) | $ | 130 | $ | (85 | ) | ||||||
Year ended December 31, 2011 | $ | (7,604 | ) | $ | 6,596 | $ | 1,008 | $ | — | |||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 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 December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 536,260 | $ | 726,357 | ||||||||||||
Short-term investments | 96,788 | 100,704 | ||||||||||||||
Cash, cash equivalents and short-term investments | $ | 633,048 | $ | 827,061 | ||||||||||||
Summary of cash and cash equivalents | ' | |||||||||||||||
The following table summarizes Cadence's cash and cash equivalents at fair value as of December 28, 2013 and December 29, 2012: | ||||||||||||||||
As of | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and interest bearing deposits | $ | 188,088 | $ | 160,023 | ||||||||||||
Money market funds | 345,872 | 566,334 | ||||||||||||||
Bank certificates of deposit | 2,300 | — | ||||||||||||||
Total cash and cash equivalents | $ | 536,260 | $ | 726,357 | ||||||||||||
Summary of short-term investments | ' | |||||||||||||||
The following tables summarize Cadence's short-term investments as of December 28, 2013 and December 29, 2012: | ||||||||||||||||
28-Dec-13 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 37,422 | $ | 30 | $ | (11 | ) | $ | 37,441 | |||||||
Bank certificates of deposit | 20,300 | 9 | (1 | ) | 20,308 | |||||||||||
United States Treasury securities | 24,219 | 28 | (1 | ) | 24,246 | |||||||||||
United States government agency securities | 10,212 | 11 | — | 10,223 | ||||||||||||
Commercial paper | 2,492 | 1 | — | 2,493 | ||||||||||||
Marketable debt securities | 94,645 | 79 | (13 | ) | 94,711 | |||||||||||
Marketable equity securities | 1,817 | 260 | — | 2,077 | ||||||||||||
Total short-term investments | $ | 96,462 | $ | 339 | $ | (13 | ) | $ | 96,788 | |||||||
As of December 29, 2012 | ||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||
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 December 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 | $ | 51,324 | $ | 51,358 | ||||||||||||
Due in one to three years | 43,321 | 43,353 | ||||||||||||||
Total marketable debt securities included in short-term investments | $ | 94,645 | $ | 94,711 | ||||||||||||
Summary of realized gains from sale of available-for-sale securities | ' | |||||||||||||||
Realized gains and losses from the sale of marketable debt and equity securities are recorded in other income, net in the consolidated income statements. | ||||||||||||||||
Carrying value of non-marketable securities | ' | |||||||||||||||
Cadence's non-marketable investments as of December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cost method | $ | 3,038 | $ | 3,038 | ||||||||||||
Equity method | 3,639 | 4,249 | ||||||||||||||
Total non-marketable investments | $ | 6,677 | $ | 7,287 | ||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||
Dec. 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 December 28, 2013 and December 29, 2012: | ||||||||||||||||
Fair Value Measurements as of December 28, 2013: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 345,872 | $ | 345,872 | $ | — | $ | — | ||||||||
Bank certificates of deposit | 2,300 | — | 2,300 | — | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | 37,441 | — | 37,441 | — | ||||||||||||
Bank certificates of deposit | 20,308 | — | 20,308 | — | ||||||||||||
United States Treasury securities | 24,246 | 24,246 | — | — | ||||||||||||
United States government agency securities | 10,223 | 10,223 | — | — | ||||||||||||
Commercial paper | 2,493 | — | 2,493 | — | ||||||||||||
Marketable equity securities | 2,077 | 2,077 | — | — | ||||||||||||
Trading securities held NQDC trust | 23,960 | 23,960 | — | — | ||||||||||||
2015 Notes Hedges | 306,817 | — | 306,817 | — | ||||||||||||
Foreign currency exchange contracts | 262 | — | 262 | — | ||||||||||||
Total Assets | $ | 775,999 | $ | 406,378 | $ | 369,621 | $ | — | ||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Acquisition-related contingent consideration | $ | 4,091 | $ | — | $ | — | $ | 4,091 | ||||||||
2015 Notes Embedded Conversion Derivative | 306,817 | — | 306,817 | — | ||||||||||||
Total Liabilities | $ | 310,908 | $ | — | $ | 306,817 | $ | 4,091 | ||||||||
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 fiscal 2013 and 2012: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 31, 2011 | $ | 3,911 | ||||||||||||||
Payments | (39 | ) | ||||||||||||||
Adjustments | 346 | |||||||||||||||
Balance as of December 29, 2012 | $ | 4,218 | ||||||||||||||
Payments | (835 | ) | ||||||||||||||
Adjustments | 708 | |||||||||||||||
Balance as of December 28, 2013 | $ | 4,091 | ||||||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Balance Sheet Components [Abstract] | ' | |||||||
Summary of certain balance sheet components | ' | |||||||
A summary of certain balance sheet components as of December 28, 2013 and December 29, 2012 is as follows: | ||||||||
As of | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
(In thousands) | ||||||||
Inventories: | ||||||||
Raw materials | $ | 30,554 | $ | 23,654 | ||||
Finished goods | 19,666 | 12,509 | ||||||
Inventories | $ | 50,220 | $ | 36,163 | ||||
Prepaid expenses and other: | ||||||||
Prepaid expenses and other current assets | $ | 31,751 | $ | 68,494 | ||||
Deferred income taxes | 91,631 | 58,542 | ||||||
Prepaid expenses and other | $ | 123,382 | $ | 127,036 | ||||
Property, plant and equipment: | ||||||||
Computer equipment and related software | $ | 462,044 | $ | 541,180 | ||||
Buildings | 126,512 | 127,201 | ||||||
Land | 55,980 | 55,964 | ||||||
Leasehold, building and land improvements | 93,049 | 87,506 | ||||||
Furniture and fixtures | 23,026 | 21,961 | ||||||
Equipment | 44,949 | 44,108 | ||||||
In-process capital assets | 1,649 | 1,969 | ||||||
Total cost | 807,209 | 879,889 | ||||||
Less: Accumulated depreciation and amortization | (568,494 | ) | (635,450 | ) | ||||
Property, plant and equipment, net | $ | 238,715 | $ | 244,439 | ||||
Other assets: | ||||||||
Deferred income taxes | $ | 144,553 | $ | 171,721 | ||||
NQDC trust assets | 23,866 | 24,235 | ||||||
Other long-term assets | 28,106 | 29,610 | ||||||
Other assets | $ | 196,525 | $ | 225,566 | ||||
Accounts payable and accrued liabilities: | ||||||||
Payroll and payroll-related accruals | $ | 145,047 | $ | 129,956 | ||||
Accounts payable | 24,963 | 6,412 | ||||||
Income taxes payable - current | 11,062 | 2,305 | ||||||
Accrued operating liabilities | 35,522 | 32,645 | ||||||
Accounts payable and accrued liabilities | $ | 216,594 | $ | 171,318 | ||||
Other long-term liabilities: | ||||||||
Income taxes payable - long-term | $ | 11,396 | $ | 51,994 | ||||
NQDC trust liability | 23,960 | 24,329 | ||||||
Other long-term liabilities | 36,080 | 27,710 | ||||||
Other long-term liabilities | $ | 71,436 | $ | 104,033 | ||||
Stock_Compensation_Plans_and_S1
Stock Compensation Plans and Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Stock based compensation expense and allocation by share based payment award | ' | ||||||||||||
Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the Employee Stock Purchase Plan, or ESPP, during fiscal 2013, 2012 and 2011 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Stock options | $ | 13,100 | $ | 8,752 | $ | 8,685 | |||||||
Restricted stock | 49,019 | 34,838 | 30,815 | ||||||||||
ESPP | 4,166 | 3,971 | 4,088 | ||||||||||
Total stock-based compensation expense | $ | 66,285 | $ | 47,561 | $ | 43,588 | |||||||
Income tax benefit | $ | 16,236 | $ | 12,453 | $ | 1,406 | |||||||
Stock based compensation expense and allocation by cost | ' | ||||||||||||
Stock-based compensation expense is reflected throughout Cadence's costs and expenses during fiscal 2013, 2012 and 2011 as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Cost of product and maintenance | $ | 1,596 | $ | 1,317 | $ | 1,468 | |||||||
Cost of services | 2,321 | 1,889 | 2,105 | ||||||||||
Marketing and sales | 15,642 | 10,193 | 10,356 | ||||||||||
Research and development | 32,999 | 21,516 | 18,561 | ||||||||||
General and administrative | 13,727 | 12,646 | 11,098 | ||||||||||
Total stock-based compensation expense | $ | 66,285 | $ | 47,561 | $ | 43,588 | |||||||
Fair value of options granted and the weighted-average assumptions | ' | ||||||||||||
The weighted-average grant date fair value of options granted and the weighted-average assumptions used in the model for fiscal 2013, 2012 and 2011 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividend yield | None | None | None | ||||||||||
Expected volatility | 40 | % | 46.4 | % | 44.9 | % | |||||||
Risk-free interest rate | 0.86 | % | 0.79 | % | 2.18 | % | |||||||
Expected term (in years) | 4.7 | 4.6 | 4.7 | ||||||||||
Weighted-average fair value of options granted | $ | 4.93 | $ | 4.57 | $ | 3.93 | |||||||
Summary of changes in stock options outstanding under equity incentive plans | ' | ||||||||||||
A summary of the changes in stock options outstanding under Cadence's equity incentive plans during fiscal 2013 is presented below: | |||||||||||||
Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | |||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Terms | |||||||||||||
Shares | Exercise Price | (Years) | Value | ||||||||||
(In thousands) | (In thousands) | ||||||||||||
Options outstanding as of December 29, 2012 | 19,278 | $ | 10.71 | ||||||||||
Acquired options | 1,495 | $ | 2.46 | ||||||||||
Granted | 1,042 | $ | 14.21 | ||||||||||
Exercised | (2,982 | ) | $ | 9.25 | |||||||||
Canceled and forfeited | (1,358 | ) | $ | 15.88 | |||||||||
Options outstanding as of December 28, 2013 | 17,475 | $ | 10.06 | 3.4 | $ | 80,673 | |||||||
Options vested as of December 28, 2013 | 14,104 | $ | 10.27 | 2.8 | $ | 64,423 | |||||||
Options vested as of, and expected to vest after, December 28, 2013 | 17,462 | $ | 10.06 | 3.4 | $ | 80,632 | |||||||
Intrinsic value of and cash received from options exercised | ' | ||||||||||||
The total intrinsic value of and cash received from options exercised during fiscal 2013, 2012 and 2011 was: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Intrinsic value of options exercised | $ | 15,114 | $ | 11,493 | $ | 7,255 | |||||||
Cash received from options exercised | $ | 27,569 | $ | 19,119 | $ | 6,478 | |||||||
Stock-based compensation expense related to performance-based restricted stock grants | ' | ||||||||||||
Stock-based compensation expense related to performance-based restricted stock grants for fiscal 2013, 2012 and 2011 was as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Stock-based compensation expense related to performance-based grants | $ | 4,340 | $ | 3,230 | $ | 2,174 | |||||||
Summary of the changes in restricted stock outstanding under Cadence's equity incentive plans | ' | ||||||||||||
A summary of the changes in restricted stock outstanding under Cadence's equity incentive plans during fiscal 2013, is presented below: | |||||||||||||
Weighted- | Weighted- | Aggregate | |||||||||||
Average Grant Date | Average | Intrinsic | |||||||||||
Remaining | |||||||||||||
Vesting | |||||||||||||
Terms | |||||||||||||
Shares | Fair Value | (Years) | Value | ||||||||||
(In thousands) | (In thousands) | ||||||||||||
Unvested shares as of December 29, 2012 | 9,444 | $ | 10.4 | ||||||||||
Granted | 5,306 | $ | 15.3 | ||||||||||
Vested | (4,089 | ) | $ | 9.87 | |||||||||
Forfeited | (548 | ) | $ | 11.77 | |||||||||
Unvested shares as of December 28, 2013 | 10,113 | $ | 13.11 | 1.1 | $ | 139,761 | |||||||
Unvested shares expected to vest after December 28, 2013 | 9,418 | $ | 13.08 | 1.1 | $ | 130,131 | |||||||
Total fair value of restricted stock awards that vested | ' | ||||||||||||
The total fair value realized by employees upon vesting of restricted stock during fiscal 2013, 2012 and 2011 was: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Fair value of restricted stock realized upon vesting | $ | 58,091 | $ | 48,249 | $ | 43,756 | |||||||
Weighted-average grant date fair value of purchase rights granted under ESPP and weighted average assumptions used in model | ' | ||||||||||||
The weighted-average grant date fair value of purchase rights granted under the ESPP and the weighted-average assumptions used in the model for fiscal 2013, 2012 and 2011 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividend yield | None | None | None | ||||||||||
Expected volatility | 25.7 | % | 31.4 | % | 38.4 | % | |||||||
Risk-free interest rate | 0.09 | % | 0.12 | % | 0.17 | % | |||||||
Expected term (in years) | 0.5 | 0.5 | 0.5 | ||||||||||
Weighted-average fair value of options granted | $ | 3.21 | $ | 2.78 | $ | 2.48 | |||||||
Shares of common stock issued under Employee Stock Purchase Plan | ' | ||||||||||||
Shares of common stock issued under the ESPP for fiscal 2013, 2012 and 2011 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Cadence shares purchased under the ESPP | 1,382 | 1,548 | 2,029 | ||||||||||
Cash received for the purchase of shares under the ESPP | $ | 15,088 | $ | 13,568 | $ | 13,236 | |||||||
Weighted-average purchase price per share | $ | 10.91 | $ | 8.77 | $ | 6.52 | |||||||
Summary of common stock reserved for future issuance | ' | ||||||||||||
As of December 28, 2013, Cadence had reserved the following shares of authorized but unissued common stock for future issuance: | |||||||||||||
Shares | |||||||||||||
(In thousands) | |||||||||||||
Employee equity incentive plans* | 32,600 | ||||||||||||
2015 Warrants | 46,382 | ||||||||||||
2013 Warrants | 6,830 | ||||||||||||
Employee stock purchase plans | 9,869 | ||||||||||||
Directors stock option plans* | 2,475 | ||||||||||||
Total | 98,156 | ||||||||||||
_____________ | |||||||||||||
* Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units. |
Restructuring_and_Other_Charge1
Restructuring and Other Charges (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Amount accrued for the restructuring plans | ' | |||||||||||||||
The remaining accrual for Cadence's restructuring plans is recorded in the consolidated balance sheet as follows: | ||||||||||||||||
As of | ||||||||||||||||
December 28, 2013 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 10,139 | ||||||||||||||
Other long-term liabilities | 4,085 | |||||||||||||||
Total accrued as of December 28, 2013 | $ | 14,224 | ||||||||||||||
Cadence's restructuring plans | ' | |||||||||||||||
The following table presents activity for Cadence's restructuring plans during fiscal 2013, 2012 and 2011: | ||||||||||||||||
Severance | Excess | Other | Total | |||||||||||||
and | Facilities | |||||||||||||||
Benefits | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance, January 1, 2011 | $ | 9,198 | $ | 5,868 | $ | 5 | $ | 15,071 | ||||||||
Restructuring and other charges (credits), net | (944 | ) | 1,304 | — | 360 | |||||||||||
Non-cash charges | — | 137 | — | 137 | ||||||||||||
Cash payments | (8,385 | ) | (2,219 | ) | — | (10,604 | ) | |||||||||
Effect of foreign currency translation | 177 | (114 | ) | — | 63 | |||||||||||
Balance, December 31, 2011 | $ | 46 | $ | 4,976 | $ | 5 | $ | 5,027 | ||||||||
Restructuring and other charges (credits), net | (29 | ) | 147 | (5 | ) | 113 | ||||||||||
Cash payments | (17 | ) | (906 | ) | — | (923 | ) | |||||||||
Effect of foreign currency translation | — | 126 | — | 126 | ||||||||||||
Balance, December 29, 2012 | $ | — | $ | 4,343 | $ | — | $ | 4,343 | ||||||||
Restructuring and other charges, net | 17,589 | 101 | 309 | 17,999 | ||||||||||||
Non-cash charges (credits) | — | — | (309 | ) | (309 | ) | ||||||||||
Cash payments | (6,944 | ) | (951 | ) | — | (7,895 | ) | |||||||||
Effect of foreign currency translation | 27 | 59 | — | 86 | ||||||||||||
Balance, December 28, 2013 | $ | 10,672 | $ | 3,552 | $ | — | $ | 14,224 | ||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Basic and diluted net income per share | ' | |||||||||||
The calculations for basic and diluted net income per share for fiscal 2013, 2012 and 2011 are as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Net income | $ | 164,243 | $ | 439,948 | $ | 72,229 | ||||||
Weighted-average common shares used to calculate basic net income per share | 277,796 | 270,479 | 263,892 | |||||||||
2023 Notes | 8 | 11 | 11 | |||||||||
2015 Warrants | 10,549 | 4,237 | — | |||||||||
Stock-based awards | 6,211 | 5,940 | 6,913 | |||||||||
Weighted-average common shares used to calculate diluted net income per share | 294,564 | 280,667 | 270,816 | |||||||||
Net income per share - basic | $ | 0.59 | $ | 1.63 | $ | 0.27 | ||||||
Net income per share - diluted | $ | 0.56 | $ | 1.57 | $ | 0.27 | ||||||
Potential shares of Cadence's common stock excluded | ' | |||||||||||
The following table presents shares of Cadence's common stock outstanding for fiscal 2013, 2012 and 2011 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: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
2015 Warrants | — | — | 46,382 | |||||||||
2013 and 2011 Warrants | 6,830 | 6,830 | 13,922 | |||||||||
Options to purchase shares of common stock | 5,973 | 11,501 | 17,580 | |||||||||
Non-vested shares of restricted stock | 846 | 70 | 800 | |||||||||
Total potential common shares excluded | 13,649 | 18,401 | 78,684 | |||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||
Dec. 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 December 28, 2013, and December 29, 2012: | ||||||||||||
As of | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||
Foreign currency translation gain | $ | 27,183 | $ | 48,653 | ||||||||
Changes in defined benefit plan liabilities | (3,218 | ) | (5,229 | ) | ||||||||
Unrealized holding gains on available-for-sale securities | 346 | 526 | ||||||||||
Total accumulated other comprehensive income | $ | 24,311 | $ | 43,950 | ||||||||
Changes in unrealized holding gains or losses on available-for-sale securities | ' | |||||||||||
Changes in unrealized holding gains or losses on available-for-sale securities includes the following for fiscal 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Unrealized holding gains or losses | $ | (127 | ) | $ | (764 | ) | $ | 50 | ||||
Tax effect of unrealized holding gains | — | — | 2,882 | |||||||||
Reclassification of unrealized holding gains or losses to other income, net | (53 | ) | (141 | ) | (8,072 | ) | ||||||
Changes in unrealized holding gains | $ | (180 | ) | $ | (905 | ) | $ | (5,140 | ) | |||
or losses | ||||||||||||
Commitments_and_Contingencies_1
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Schedule of Rent Expense [Table Text Block] | ' | |||||||||||
Rental expense is recognized on a straight-line basis and was as follows during fiscal 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Rent expense | $ | 21,667 | $ | 20,082 | $ | 20,633 | ||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | |||||||||||
As of December 28, 2013, future minimum lease payments under non-cancelable operating leases were as follows: | ||||||||||||
Committed | ||||||||||||
Operating | Sub-lease | Net Operating | ||||||||||
Leases | Income | Leases | ||||||||||
For the fiscal years: | (In thousands) | |||||||||||
2014 | $ | 23,233 | $ | (902 | ) | $ | 22,331 | |||||
2015 | 20,109 | (530 | ) | 19,579 | ||||||||
2016 | 15,664 | (282 | ) | 15,382 | ||||||||
2017 | 8,046 | (90 | ) | 7,956 | ||||||||
2018 | 5,537 | — | 5,537 | |||||||||
Thereafter | 9,634 | — | 9,634 | |||||||||
Total lease payments | $ | 82,223 | $ | (1,804 | ) | $ | 80,419 | |||||
Employee_and_Director_Benefit_1
Employee and Director Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Contributions to plan | ' | |||||||||||
Cadence's total contributions made to these plans during fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Contributions to defined contribution plans | $ | 20,055 | $ | 17,896 | $ | 16,244 | ||||||
Net recognized gains (losses) of trading securities | ' | |||||||||||
Net recognized gains (losses) of trading securities during fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Trading securities | $ | 3,293 | $ | 4,453 | $ | (472 | ) | |||||
Unfunded projected benefit obligations - defined benefit retirement plans | ' | |||||||||||
The unfunded projected benefit obligation for these retirement plans as of December 28, 2013, December 29, 2012 and December 31, 2011 was as follows: | ||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | ||||||||||
(In thousands) | ||||||||||||
Unfunded projected benefit obligation - defined benefit retirement plans | $ | 7,160 | $ | 9,400 | $ | 8,889 | ||||||
Expense related to defined benefit plans | ' | |||||||||||
Cadence recorded total expense related to these defined benefit retirement plans during fiscal 2013, 2012 and 2011 as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Expense related to defined benefit retirement plans | $ | 1,817 | $ | 1,580 | $ | 2,175 | ||||||
Other_Income_Net_Tables
Other Income, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Income, Net | ' | |||||||||||
Cadence's other income, net, for fiscal 2013, 2012 and 2011 was as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Interest income | $ | 1,706 | $ | 1,473 | $ | 1,303 | ||||||
Gains on sale of marketable debt and equity securities, net | 1,364 | 141 | 8,009 | |||||||||
Gains on sale of non-marketable investments | 1,230 | 2,895 | 8,281 | |||||||||
Gains (losses) on securities in NQDC trust | 3,293 | 4,453 | (472 | ) | ||||||||
Gains on foreign exchange | 285 | 3,263 | 740 | |||||||||
Write-down of non-marketable investments | (464 | ) | (1,103 | ) | — | |||||||
Other income, net | 156 | 219 | 213 | |||||||||
Total other income, net | $ | 7,570 | $ | 11,341 | $ | 18,074 | ||||||
Stock_Repurchase_Programs_Tabl
Stock Repurchase Programs (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Equity [Abstract] | ' | |||||||
Repurchase of common shares | ' | |||||||
Cadence's Board of Directors has authorized the following programs to repurchase shares of Cadence's common stock in the open market, which remained in effect on December 28, 2013: | ||||||||
Remaining | ||||||||
Authorization Date | Amount | Authorization | ||||||
(In thousands) | ||||||||
Feb-08 | $ | 500,000 | $ | 314,389 | ||||
Aug-08 | 500,000 | 500,000 | ||||||
Total remaining authorization | $ | 814,389 | ||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Summary of revenue by geography | ' | |||||||||||
The following table presents a summary of revenue by geography for fiscal 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Americas: | ||||||||||||
United States | $ | 648,714 | $ | 567,609 | $ | 489,438 | ||||||
Other Americas | 22,940 | 22,967 | 25,152 | |||||||||
Total Americas | 671,654 | 590,576 | 514,590 | |||||||||
Europe, Middle East and Africa | 303,593 | 262,375 | 234,880 | |||||||||
Japan | 195,804 | 218,731 | 204,388 | |||||||||
Asia | 289,065 | 254,742 | 195,977 | |||||||||
Total | $ | 1,460,116 | $ | 1,326,424 | $ | 1,149,835 | ||||||
Summary of long-lived assets by geography | ' | |||||||||||
The following table presents a summary of long-lived assets by geography as of December 28, 2013, December 29, 2012 and December 31, 2011: | ||||||||||||
As of | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Americas: | ||||||||||||
United States | $ | 207,694 | $ | 214,711 | $ | 230,884 | ||||||
Other Americas | 294 | 185 | 35 | |||||||||
Total Americas | 207,988 | 214,896 | 230,919 | |||||||||
Europe, Middle East and Africa | 6,326 | 5,410 | 4,813 | |||||||||
Japan | 893 | 1,649 | 3,960 | |||||||||
Asia | 23,508 | 22,484 | 22,825 | |||||||||
Total | $ | 238,715 | $ | 244,439 | $ | 262,517 | ||||||
Schedule_of_Significant_Accoun
Schedule of Significant Accounting Policies - Debt and Derivatives (Details) | 12 Months Ended |
Dec. 28, 2013 | |
Convertible Senior Notes Due 2015 [Member] | ' |
Debt Instrument [Line Items] | ' |
Stated interest rate of Convertible Senior Notes | 2.63% |
Maximum [Member] | Forward Contracts [Member] | ' |
Debt Instrument [Line Items] | ' |
Maturity period of forward contracts | '90 days |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 28, 2013 | |
Leasehold improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful lives description | 'Shorter of the lease term or the estimated useful life |
Building improvements and land improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful lives description | 'Estimated useful life |
Minimum [Member] | Computer equipment and related software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '2 years |
Minimum [Member] | Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '25 years |
Minimum [Member] | Furniture and Fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '3 years |
Minimum [Member] | Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '3 years |
Maximum [Member] | Computer equipment and related software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '7 years |
Maximum [Member] | Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '32 years |
Maximum [Member] | Furniture and Fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '5 years |
Maximum [Member] | Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '5 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policites - Long-lived Assets (Details) (Acquired Intangible Assets [Member]) | 12 Months Ended |
Dec. 28, 2013 | |
Minimum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible asset, useful life | '1 year |
Maximum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible asset, useful life | '14 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Other (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ' | ' | ' |
Maximum period for collection of receivables | '5 years | ' | ' |
Reserve for inventory | 'inventory in excess of 12-month demand | ' | ' |
Additions to capitalized computer software for internal use | $4,700,000 | $7,700,000 | $4,000,000 |
Depreciation and amortization, property plant and equipment | 49,500,000 | 55,000,000 | 55,300,000 |
Period for revenue recognition for perpetual licenses maintenance | '12 months | ' | ' |
Loss on reissuance of treasury stock | -42,657,000 | -32,687,000 | -19,714,000 |
Percentage of likelihood of tax benefit being realized upon effective settlement of audit | 50.00% | ' | ' |
Advertising expense | 7,400,000 | 7,200,000 | 7,500,000 |
Retained Earnings [Member] | ' | ' | ' |
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ' | ' | ' |
Loss on reissuance of treasury stock | $0 | $6,252,000 | $16,621,000 |
Software Products [Member] | ' | ' | ' |
Pro Forma Revenue [Line Items] | ' | ' | ' |
General Term of Software Arrangement Minimum | '2 years | ' | ' |
General Term of Software Arrangement Maximum | '3 years | ' | ' |
Debt_Details
Debt (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Principal | $350,000 | $494,639 |
Unamortized Discount | -25,174 | -47,628 |
Carrying Value | 324,826 | 447,011 |
Notes Due Twenty-Thirteen [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal | 0 | 144,461 |
Unamortized Discount | 0 | -6,447 |
Carrying Value | 0 | 138,014 |
Convertible Senior Notes Due Twenty-Fifteen [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal | 350,000 | 350,000 |
Unamortized Discount | -25,174 | -41,181 |
Carrying Value | 324,826 | 308,819 |
Zero Coupon Zero Yield Senior Convertible Notes Due Two Zero Two Three [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal | 0 | 178 |
Unamortized Discount | 0 | 0 |
Carrying Value | 0 | 178 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal | 0 | 0 |
Unamortized Discount | 0 | 0 |
Carrying Value | $0 | $0 |
Debt_Details_1
Debt (Details 1) (Convertible Senior Notes Due 2015 [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Convertible Senior Notes Due 2015 [Member] | ' | ' | ' |
Effective interest rate and components of interest expense of 2015 notes | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | 8.10% | 8.10% | 8.10% |
Contractual interest expense | $9,157 | $9,157 | $9,157 |
Amortization of debt discount | 16,007 | 14,758 | 13,665 |
Total Interest Expense | $25,164 | $23,915 | $22,822 |
Debt_Details_2
Debt (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Convertible Senior Notes Due 2013 [Member] | Convertible Senior Notes Due 2013 [Member] | Convertible Senior Notes Due 2011 and 2013 [Member] | |
Effective interest rate and components of interest expense | ' | ' | ' |
Effective interest rate | 6.40% | 6.40% | 6.30% |
Contractual interest expense | $2,082 | $2,159 | $4,119 |
Amortization of debt discount | 6,447 | 6,272 | 12,654 |
Total Interest Expense | $8,529 | $8,431 | $16,773 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 30, 2006 | Dec. 30, 2006 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 31, 2011 | Dec. 30, 2006 | Jun. 30, 2010 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Aug. 31, 2003 |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Convertible Senior Notes Due 2013 [Member] | Convertible Senior Notes Due 2013 [Member] | Convertible Senior Notes Due 2013 [Member] | Convertible Notes Due Twenty-Eleven [Member] | Notes Due Twenty-Thirteen [Member] | Convertible Senior Notes Due 2011 [Member] | Convertible Senior Notes Due 2011 [Member] | Convertible Senior Notes Due 2011 [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 Senior Notes Due 2013 [Member] | Convertible Senior Notes Due 2013 [Member] | ||||||||||||||||||
Convertible Notes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount, issued | ' | ' | ' | ' | ' | ' | $250,000,000 | $250,000,000 | ' | ' | ' | ' | $350,000,000 | ' | ' | ' | ' | ' | $420,000,000 |
Principal amount outstanding | ' | ' | ' | ' | 0 | 144,461,000 | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | 350,000,000 | ' | 0 | 178,000 | ' |
Stated interest rate of Convertible Senior Notes | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | 1.38% | ' | ' | ' | 2.63% | ' | ' | ' | ' | ' |
Net current liability of convertible senior notes | 324,826,000 | 447,011,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 324,800,000 | ' | ' | ' | ' | ' |
Maturity date of Convertible Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | 15-Dec-13 | 15-Dec-11 | ' | ' | ' | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '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) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.81 | ' | ' | ' | ' | ' |
Minimum number of trading days limit for which closing price exceeds fixed price for conversion of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 days | ' | ' | ' | ' | ' |
Number of final trading days range within which closing price exceeds the fixed price for conversion of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' |
Total expense if convertible notes are converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,700,000 | ' | ' | ' | ' | ' |
Unamortized Debt Discount expensed if convertible notes are converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,200,000 | ' | ' | ' | ' | ' |
Unamortized Transaction Fees expensed if convertible notes are converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' |
Event 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '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; | ' | ' | ' | ' | ' |
Event 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Note trading price falls below a calculated minimum. | ' | ' | ' | ' | ' |
Conversion rate of Convertible Senior Notes subject to certain conversion rate adjustments (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.55 | ' | ' | ' | ' | ' |
Condition 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '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 holders of the notes 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) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.16 | ' | ' | ' | ' | ' |
Maximum closing price of common stock to make whole premium in form of increase to conversion rate (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40 | ' | ' | ' | ' | ' |
Conversion rate for convertible senior notes per thousand principal amount of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 132.5205 | ' | ' | ' | ' | ' |
Debt instrument principal amount conversion rate for specified shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' |
If-converted value of Convertible Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 646,100,000 | ' | ' | ' | ' | ' |
Total estimated fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 654,100,000 | 640,100,000 | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 306,800,000 | 303,200,000 | ' | ' | ' | ' |
Cost of 2015 Notes Hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,600,000 | ' | ' | ' | ' | ' | ' |
Estimated Fair Value of 2015 Notes hedges at the balance sheet date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 306,800,000 | 303,200,000 | ' | ' | ' | ' |
Impact on Income statement related to fair value adjustments of 2015 Notes Embedded Conversion Derivative and 2015 Notes Hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' |
Shares of Common Stock that can be purchased under warrants (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,600,000 | ' | 46,400,000 | ' | ' | ' | ' | ' |
Amount received in cash proceeds from the sale of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,400,000 | 37,500,000 | ' | ' | ' | ' | ' | ' |
Notes Warrants expiration date description | ' | ' | ' | ' | 'various dates from February 2014 through April 2014 | ' | ' | ' | ' | 'various dates from February 2012 through April 2012 | ' | ' | ' | 'various dates from September 2015 through December 2015 | ' | ' | ' | ' | ' |
Number of shares underlying warrants purchased with purchase of 2011 Notes and 2013 Notes (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cost for repurchase of portion of 2011 Notes and 2013 Notes Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in number of shares available for purchase under warrants (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Credit_Facility_Details_T
Debt Credit Facility (Details Textual) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
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 cacility, 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, make certain investments (including acquisitions), dispose of certain assets and make certain restricted payments, including share repurchases and 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. | ' |
Line of Credit Facility, Amount Outstanding | 0 | 0 |
Credit facility, covenant compliance | 'Cadence was in compliance with all financial covenants as of December 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 facilty, 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 facilty, 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 facilty, 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 facilty, interest rate spread | 0.25% | ' |
Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of Credit Facility, Amount Outstanding | $0 | $0 |
Acquisitions_and_AcquisitionRe2
Acquisitions and Acquisition-Related Contingent Consideration Acquisitions and Acquisition-Related Contingent Consideration (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Apr. 22, 2013 | 23-May-13 | 23-May-13 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Jul. 02, 2012 | Dec. 31, 2011 | |
Tensilica [Member] | Tensilica [Member] | Cosmic Circuit Private Limited [Member] | Cosmic Circuit Private Limited [Member] | Other fiscal 2013 acquisitions [Member] | 2013 Acquisitions [Member] | Sigrity [Member] | Sigrity [Member] | Sigrity [Member] | Two Thousand Eleven Acquisition [Member] | ||||
Trust For Benefit Of Children of Chief Executive Officer [Member] | |||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration paid | ' | ' | ' | ' | ' | ' | ' | $14,400,000 | ' | ' | ' | ' | ' |
Total consideration paid, net of cash acquired | ' | ' | ' | ' | 319,300,000 | 59,500,000 | ' | ' | ' | ' | ' | 64,300,000 | 49,300,000 |
Cash acquired | ' | ' | ' | ' | 26,300,000 | 1,700,000 | ' | ' | ' | ' | ' | 7,500,000 | ' |
Business acquisition fair value of options assumed | ' | ' | ' | ' | 15,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition fair value of options assumed as consideration | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition fair value of options assumed to be expensed over servicer period of award | ' | ' | ' | ' | 14,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional payments deferred on the acquisition date | ' | ' | ' | ' | 5,800,000 | ' | ' | ' | ' | ' | ' | 14,200,000 | ' |
Related Party, ownership percentage in acquired company | ' | ' | ' | ' | ' | ' | 8.50% | ' | ' | ' | ' | ' | ' |
Acquired definite-lived intangible assets, weighted average useful life | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | '8 years | ' | '7 years |
Long-term deferred tax liabilities | ' | ' | ' | ' | 40,147,000 | 8,428,000 | ' | 0 | ' | ' | ' | 15,100,000 | ' |
Goodwill, expected tax deductible amount | ' | ' | ' | ' | ' | ' | ' | ' | 9,600,000 | ' | ' | ' | ' |
Acquired intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,600,000 | 21,600,000 |
Goodwill | ' | ' | ' | ' | 176,461,000 | 41,911,000 | ' | 9,587,000 | ' | ' | ' | 39,700,000 | 32,300,000 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | ' | 219,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | -14,800,000 | ' | ' |
Business combination separately recognized transactions, acquisition costs expensed | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | 7,000,000 | 3,500,000 | ' | ' |
Business Combination Cost Expense in Future Periods | ' | ' | ' | 3,900,000 | ' | ' | ' | ' | ' | 3,700,000 | ' | ' | ' |
Business Combination, Acquisition Related Costs | $8,700,000 | $1,500,000 | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acqusitions_and_AcquisitionRel
Acqusitions and Acquisition-Related Contingent Consideration (Details) (USD $) | Jul. 02, 2012 | Apr. 22, 2013 | Apr. 22, 2013 | Apr. 22, 2013 | Apr. 22, 2013 | 23-May-13 | 23-May-13 | 23-May-13 | 23-May-13 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | Sigrity [Member] | Tensilica [Member] | Tensilica Existing Technology [Domain] | Tensilica Agreements and Relationships [Member] | Tensilica Tradename Trademark and Patents [Member] | Cosmic Circuit Private Limited [Member] | Cosmic Existing Technology [Member] | Cosmic Agreements and Relationships [Member] | Cosmic Tradename Trademark and Patents [Member] | Other fiscal 2013 acquisitions [Member] | Other Acquisitions Existing Technology [Member] | Other Acquisitions Agreements and Relationships [Member] | Other Acquisition Tradename Trademark and Patents [Member] |
Business Acquisition Purchase Price Allocation [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 | 40,600 | ' | 102,000 | 33,000 | 3,000 | ' | 16,300 | 5,100 | 0 | ' | 2,014 | 1,667 | 0 |
In-process technology | ' | 5,300 | ' | ' | ' | 4,200 | ' | ' | ' | 1,200 | ' | ' | ' |
Goodwill | 39,700 | 176,461 | ' | ' | ' | 41,911 | ' | ' | ' | 9,587 | ' | ' | ' |
Total assets acquired | ' | 399,316 | ' | ' | ' | 71,769 | ' | ' | ' | 14,708 | ' | ' | ' |
Deferred revenue | -3,800 | -8,100 | ' | ' | ' | -129 | ' | ' | ' | 0 | ' | ' | ' |
Other liabilities | ' | -4,959 | ' | ' | ' | -1,982 | ' | ' | ' | -277 | ' | ' | ' |
Long-term deferred tax liabilities | -15,100 | -40,147 | ' | ' | ' | -8,428 | ' | ' | ' | 0 | ' | ' | ' |
Net assets acquired | ' | $346,110 | ' | ' | ' | $61,230 | ' | ' | ' | $14,431 | ' | ' | ' |
Acqusitions_and_AcquisitionRel1
Acqusitions and Acquisition-Related Contingent Consideration (Details 1) (Tensilica [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Tensilica [Member] | ' | ' |
Schedule of Business Acquisitions, Pro Forma [Line Items] | ' | ' |
Pro forma revenue | $1,480,273 | $1,358,158 |
Pro forma net income | $173,528 | $392,744 |
Acquisitions_and_AcquisitionRe3
Acquisitions and Acquisition-Related Contingent Consideration (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 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 contingent consideration | ' | ' | '3 years | ' |
Beginning date of acquisition related contingent consideration measurement period | ' | ' | 'subsequent to OctoberB 1, 2011 | ' |
Acquisition related contingent consideration at initial fair value | ' | ' | 3,500,000 | ' |
Acquisition-related contingent consideration | 4,091,000 | 4,218,000 | ' | 4,100,000 |
Maximum potential cash payment to be paid | 14,300,000 | ' | ' | ' |
Period over which consideration may be paid | '28 months | ' | ' | ' |
Maximum potential expense in future periods | $9,000,000 | ' | ' | ' |
Goodwill_and_Acquired_Intangib2
Goodwill and Acquired Intangibles (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | |
Changes in the carrying amount of goodwill | ' | ' | |
Balance at beginning of period | $233,266 | $192,125 | |
Effect of foreign currency translation | -4,320 | 420 | |
Balance at end of period | 456,905 | 233,266 | |
Goodwill resulting from acquisitions [Member] | ' | ' | |
Changes in the carrying amount of goodwill | ' | ' | |
Goodwill acquired during the period | 227,959 | 39,680 | |
Additions due to contingent consideration [Member] | ' | ' | |
Changes in the carrying amount of goodwill | ' | ' | |
Goodwill acquired during the period | ' | $1,041 | [1] |
[1] | Cadence accounts for business combinations with acquisition dates on or before January 3, 2009 under the purchase method in accordance with accounting standards that were authoritative at that time, whereby contingent consideration is added to goodwill as it is earned. |
Goodwill_and_Acquired_Intangib3
Goodwill and Acquired Intangibles (Details 1) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
In-process technology transferred to existing technology | $6,000,000 | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross Carrying Amount | 448,003,000 | ' |
Accumulated Amortization | -139,820,000 | -104,351,000 |
Acquired Intangibles, Net | 308,183,000 | ' |
In-process technology | 3,510,000 | ' |
Intangible Assets, Gross (Excluding Goodwill) | 451,513,000 | 289,289,000 |
Intangible Assets, Net (Excluding Goodwill) | 311,693,000 | 184,938,000 |
Existing technology [Member] | ' | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross Carrying Amount | 237,624,000 | 112,940,000 |
Accumulated Amortization | -53,243,000 | -30,171,000 |
Acquired Intangibles, Net | 184,381,000 | 82,769,000 |
Agreements and relationships [Member] | ' | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross Carrying Amount | 170,760,000 | 133,764,000 |
Accumulated Amortization | -53,607,000 | -37,769,000 |
Acquired Intangibles, Net | 117,153,000 | 95,995,000 |
Distribution rights [Member] | ' | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross Carrying Amount | 30,100,000 | 30,100,000 |
Accumulated Amortization | -30,100,000 | -28,595,000 |
Acquired Intangibles, Net | 0 | 1,505,000 |
Tradenames, trademarks and patents [Member] | ' | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross Carrying Amount | 9,519,000 | 12,485,000 |
Accumulated Amortization | -2,870,000 | -7,816,000 |
Acquired Intangibles, Net | $6,649,000 | $4,669,000 |
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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Amortization of acquired intangibles | ' | ' | ' |
Cost of product and maintenance | $24,023 | $13,541 | $10,480 |
Amortization of acquired intangibles | 19,416 | 15,077 | 16,536 |
Total amortization of acquired intangibles | $43,439 | $28,618 | $27,016 |
Goodwill_and_Acquired_Intangib5
Goodwill and Acquired Intangibles (Details 3) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Estimated amortization expense | ' |
2014 | $49,525 |
2015 | 48,972 |
2016 | 43,261 |
2017 | 39,654 |
2018 | 36,803 |
Thereafter | 89,968 |
Acquired Intangibles, Net | $308,183 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' |
United States | $20,092 | $61,865 | $39,175 |
Foreign subsidiaries | 138,904 | 126,406 | 56,251 |
Income before provision (benefit) for income taxes | $158,996 | $188,271 | $95,426 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | ($40,494) | ($588) | ($662) |
State and Local | 2,574 | -36,650 | 1,363 |
Foreign | 28,040 | 19,409 | 13,752 |
Total current | -9,880 | -17,829 | 14,453 |
Deferred: | ' | ' | ' |
Federal | 4,888 | -203,731 | -4,937 |
State and Local | 3,037 | -28,894 | -524 |
Foreign | -10,291 | -7,799 | -2,350 |
Total deferred | -2,366 | -240,424 | -7,811 |
Tax expense allocated to shareholders' equity | 6,999 | 6,576 | 16,555 |
Total provision (benefit) for income taxes | ($5,247) | ($251,677) | $23,197 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Summary of income tax reconciliation | ' | ' | ' |
Provision computed at federal statutory income tax rate | $55,648 | $65,895 | $33,400 |
State and local income tax, net of federal tax effect | 4,085 | 3,626 | 6,493 |
Foreign income tax rate differential | -36,392 | -39,308 | -6,676 |
Non-deductible share-based compensation costs | 2,053 | 7,785 | 1,651 |
Change in deferred tax valuation allowance | 18,354 | -301,542 | -3,617 |
Tax credits | -18,372 | -3,744 | -12,588 |
Repatriation of foreign earnings | -2,116 | -2,645 | 708 |
Non-deductible research and development expense | 3,043 | 1,968 | 0 |
Domestic production activity deduction | -1,088 | 0 | 0 |
Withholding taxes | 3,333 | 3,593 | 3,851 |
Tax settlements, domestic | 0 | -37,481 | 328 |
Tax settlements, foreign | 680 | -804 | -2,451 |
Interest and penalties not included in tax settlements | 1,701 | 2,552 | 1,840 |
Increase (decrease) in unrecognized tax benefits not included in tax settlements | -33,730 | 47,329 | 933 |
Other | -2,446 | 1,099 | -675 |
Total provision (benefit) for income taxes | ($5,247) | ($251,677) | $23,197 |
Effective tax rate | -3.00% | -134.00% | 24.00% |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets: | ' | ' |
Tax credit carryforwards | $159,839 | $129,724 |
Reserves and accruals | 49,450 | 50,960 |
Intangible assets | 45,948 | 56,512 |
Capitalized research and development expense for income tax purposes | 33,742 | 34,046 |
Operating loss carryforwards | 27,205 | 24,429 |
Deferred income | 25,420 | 27,237 |
Capital loss carryforwards | 22,050 | 23,026 |
Share-based compensation costs | 20,652 | 20,012 |
Depreciation and amortization | 11,167 | 8,979 |
Investments | 7,643 | 7,550 |
Other | 4,911 | 4,185 |
Total deferred tax assets | 408,027 | 386,660 |
Valuation allowance | -92,677 | -74,323 |
Net deferred tax assets | 315,350 | 312,337 |
Deferred Tax Liabilities: | ' | ' |
Intangible assets | -66,775 | -70,086 |
Undistributed foreign earnings | -17,301 | -13,113 |
Other | -2,230 | -965 |
Total deferred tax liabilities | -86,306 | -84,164 |
Total net deferred tax assets | $229,044 | $228,173 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Unrealized share-based compensation deduction (Tax Effected) $ | ' | ' |
Federal | $0 | $2,170 |
California | $457 | $457 |
Income_Taxes_Details_5
Income Taxes (Details 5) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
United States federal [Member] | ' |
Summary of operating loss carryforward | ' |
Operating loss carry forwards | $5,394 |
California State [Member] | ' |
Summary of operating loss carryforward | ' |
Operating loss carry forwards | 256,393 |
States other than California [Member] | ' |
Summary of operating loss carryforward | ' |
Operating loss carry forwards | 3,265 |
Foreign Tax Authority [Member] | ' |
Summary of operating loss carryforward | ' |
Operating loss carry forwards | $7,777 |
Income_Taxes_Details_6
Income Taxes (Details 6) (USD $) | Dec. 28, 2013 | |
In Thousands, unless otherwise specified | ||
United States federal [Member] | ' | |
Summary of tax credit carryforwards | ' | |
Tax credit carryforwards | $114,646 | [1] |
California State [Member] | ' | |
Summary of tax credit carryforwards | ' | |
Tax credit carryforwards | 24,946 | |
States other than California [Member] | ' | |
Summary of tax credit carryforwards | ' | |
Tax credit carryforwards | 5,572 | |
Foreign Jurisdiction [Member] | ' | |
Summary of tax credit carryforwards | ' | |
Tax credit carryforwards | $14,675 | |
[1] | Certain of Cadence's foreign tax credits are anticipated and as result do not yet have an expiration period. |
Income_Taxes_Details_7
Income Taxes (Details 7) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |||
Unrecognized Tax Benefits | ' | ' | ' | |||
Unrecognized tax benefits at the beginning of the fiscal year | $92,378 | $98,812 | $131,545 | |||
Gross amount of the increases in unrecognized tax benefits of tax positions taken during a prior year | 6,196 | [1] | 2,194 | [1] | ' | |
Gross amount of the decreases in unrecognized tax benefits of tax positions taken during a prior year | ' | ' | -3,791 | [1] | ||
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 5,119 | 3,082 | 1,588 | |||
Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes | -15,171 | -11,768 | -30,115 | |||
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | -11,850 | -189 | -421 | |||
Effect of foreign currency translation | 1,607 | 247 | 6 | |||
Unrecognized tax benefits at the end of the fiscal year | 78,279 | 92,378 | 98,812 | |||
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate | 49,458 | 57,725 | 75,057 | |||
Interest and penalties recognized in Income Statements | ' | ' | ' | |||
Interest | -12,470 | -11,184 | 2,173 | |||
Penalties | -7,698 | -1,862 | -1,495 | |||
Interest and penalties recognized in Balance Sheets | ' | ' | ' | |||
Interest | 37 | 24,427 | ' | |||
Penalties | $1,227 | $8,953 | ' | |||
[1] | Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Income Tax Examination [Line Items] | ' | ' |
Deferred Tax Assets, Net of Valuation Allowance | $315,350,000 | $312,337,000 |
Tax provision (benefit) for settlements | ' | -36,700,000 |
Additional Income Taxes (Textual) [Abstract] | ' | ' |
United States statutory federal income tax rate | 35.00% | ' |
Decrease in valuation allowance against deferred tax assets | ' | -219,600,000 |
Percent of revenue recurring in nature, over multiple years | 90.00% | ' |
Valuation allowance | -92,677,000 | -74,323,000 |
Undistributed foreign earnings that are intended by company to indefinitely reinvest | 297,100,000 | ' |
Unrecognized deferred tax liability related to reinvested foreign earnings | $51,200,000 | ' |
Receivables_and_Allowances_for2
Receivables and Allowances for Doubtful Accounts (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 |
In Thousands, unless otherwise specified | ||||
Current and long-term receivables balances | ' | ' | ' | ' |
Accounts receivable | $76,057 | $67,259 | ' | ' |
Unbilled accounts receivable | 31,567 | 30,647 | ' | ' |
Long-term receivables | 3,672 | 7,559 | ' | ' |
Total receivables | 111,296 | 105,465 | ' | ' |
Less allowance for doubtful accounts | 0 | -85 | 0 | -7,604 |
Total receivables, net | $111,296 | $105,380 | ' | ' |
Receivables_and_Allowances_for3
Receivables and Allowances for Doubtful Accounts (Details Textual) | Dec. 28, 2013 | Dec. 29, 2012 |
Customer | Customer | |
Receivables and Allowances for Doubtful Accounts (Textual) [Abstract] | ' | ' |
Number of customers with receivables balance greater than ten percent of total balance | 0 | 0 |
Percent of receivables attributable to single customer | 10.00% | 10.00% |
Percentage of Cadence's total receivables, net attributable to the ten customers with largest balance | 47.00% | 47.00% |
Number of customers with largest balance of receivables | 10 | 10 |
Receivables_and_Allowances_for4
Receivables and Allowances for Doubtful Accounts (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Allowance for doubtful accounts, balance at beginning of the period | ($85) | $0 | ($7,604) |
Allowance for doubtful accounts, (charged to) credited to costs and expenses | 85 | -215 | 6,596 |
Allowance for doubtful accounts, uncollectible accounts written off, net | 0 | 130 | 1,008 |
Allowance for doubtful accounts, balance at end of the period | $0 | ($85) | $0 |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents and Investments (Details 1) (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 |
In Thousands, unless otherwise specified | ||||
Cash, Cash Equivalents and Investments [Abstract] | ' | ' | ' | ' |
Cash and cash equivalents | $536,260 | $726,357 | $601,602 | $557,409 |
Short-term investments | 96,788 | 100,704 | ' | ' |
Cash, cash equivalents and short-term investments | $633,048 | $827,061 | ' | ' |
Fair_Value_Details
Fair Value (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Short-term investments: | ' | ' | ' |
Available-for-sale securities | $96,788 | $100,704 | ' |
Trading securities held in Non-Qualified Deferred Compensation Plan, or NQDC | 23,960 | 24,329 | ' |
2015 Notes Hedges | 306,817 | 303,154 | ' |
Foreign currency exchange contracts | 262 | 1,737 | ' |
Total Assets | 775,999 | 996,258 | ' |
Liabilities | ' | ' | ' |
Acquisition-related contingent consideration | 4,091 | 4,218 | ' |
2015 Notes Embedded Conversion Derivative | 306,817 | 303,154 | ' |
Total Liabilities | 310,908 | 307,372 | ' |
Money market funds [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash equivalents | 345,872 | 566,334 | ' |
United States Treasury securities [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 24,246 | 23,239 | ' |
Corporate debt securities [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 37,441 | 31,359 | ' |
United States government agency securities [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 10,223 | 10,258 | ' |
Bank certificates of deposit [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash equivalents | 2,300 | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 20,308 | 27,826 | ' |
Commercial paper [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 2,493 | 5,783 | ' |
Marketable equity securities [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 2,077 | 2,239 | ' |
Fair Value Measurements, Level 1 [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Trading securities held in Non-Qualified Deferred Compensation Plan, or NQDC | 23,960 | 24,329 | ' |
2015 Notes Hedges | 0 | 0 | ' |
Foreign currency exchange contracts | 0 | 0 | ' |
Total Assets | 406,378 | 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 | 345,872 | 566,334 | ' |
Fair Value Measurements, Level 1 [Member] | United States Treasury securities [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 24,246 | 23,239 | ' |
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] | United States government agency securities [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 10,223 | 10,258 | ' |
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] | 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 | 2,077 | 2,239 | ' |
Fair Value Measurements, Level 2 [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Trading securities held in Non-Qualified Deferred Compensation Plan, or NQDC | 0 | 0 | ' |
2015 Notes Hedges | 306,817 | 303,154 | ' |
Foreign currency exchange contracts | 262 | 1,737 | ' |
Total Assets | 369,621 | 369,859 | ' |
Liabilities | ' | ' | ' |
Acquisition-related contingent consideration | 0 | 0 | ' |
2015 Notes Embedded Conversion Derivative | 306,817 | 303,154 | ' |
Total Liabilities | 306,817 | 303,154 | ' |
Fair Value Measurements, Level 2 [Member] | Money market funds [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash equivalents | 0 | 0 | ' |
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] | Corporate debt securities [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 37,441 | 31,359 | ' |
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] | Bank certificates of deposit [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash equivalents | 2,300 | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 20,308 | 27,826 | ' |
Fair Value Measurements, Level 2 [Member] | Commercial paper [Member] | ' | ' | ' |
Short-term investments: | ' | ' | ' |
Available-for-sale securities | 2,493 | 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 | 0 | 0 | ' |
2015 Notes Hedges | 0 | 0 | ' |
Foreign currency exchange contracts | 0 | 0 | ' |
Total Assets | 0 | 0 | ' |
Liabilities | ' | ' | ' |
Acquisition-related contingent consideration | 4,091 | 4,218 | 3,911 |
2015 Notes Embedded Conversion Derivative | 0 | 0 | ' |
Total Liabilities | 4,091 | 4,218 | ' |
Fair Value Measurements, Level 3 [Member] | Money market funds [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash equivalents | 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] | Corporate debt 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] | Bank certificates of deposit [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash equivalents | 0 | ' | ' |
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 | ' |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents and Investments (Details 2) (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 |
In Thousands, unless otherwise specified | ||||
Classified as cash and cash equivalents | ' | ' | ' | ' |
Cash and interest bearing deposits | $188,088 | $160,023 | ' | ' |
Money market funds | 345,872 | 566,334 | ' | ' |
Bank certificates of deposit | 2,300 | 0 | ' | ' |
Total cash and cash equivalents | $536,260 | $726,357 | $601,602 | $557,409 |
Fair_Value_Details_1
Fair Value (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Liabilities included in level 3 representing fair value of contingent consideration associated with acquisitions | ' | ' |
Ending Balance | $4,091 | $4,218 |
Fair Value Measurements, Level 3 [Member] | ' | ' |
Liabilities included in level 3 representing fair value of contingent consideration associated with acquisitions | ' | ' |
Beginning Balance | 4,218 | 3,911 |
Payments | -835 | -39 |
Adjustments | 708 | 346 |
Ending Balance | $4,091 | $4,218 |
Cash_Cash_Equivalents_and_Inve4
Cash, Cash Equivalents and Investments (Details 3) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Short-term investments | ' | ' |
Amortized Cost | $96,462 | $100,170 |
Gross Unrealized Gains | 339 | 545 |
Gross Unrealized Losses | -13 | -11 |
Fair Value | 96,788 | 100,704 |
Corporate debt securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 37,422 | 31,313 |
Gross Unrealized Gains | 30 | 57 |
Gross Unrealized Losses | -11 | -11 |
Fair Value | 37,441 | 31,359 |
Bank certificates of deposit [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 20,300 | 27,805 |
Gross Unrealized Gains | 9 | 21 |
Gross Unrealized Losses | -1 | 0 |
Fair Value | 20,308 | 27,826 |
United States Treasury securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 24,219 | 23,213 |
Gross Unrealized Gains | 28 | 26 |
Gross Unrealized Losses | -1 | 0 |
Fair Value | 24,246 | 23,239 |
United States government agency securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 10,212 | 10,245 |
Gross Unrealized Gains | 11 | 13 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 10,223 | 10,258 |
Commercial paper [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 2,492 | 5,777 |
Gross Unrealized Gains | 1 | 6 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,493 | 5,783 |
Marketable debt securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 94,645 | 98,353 |
Gross Unrealized Gains | 79 | 123 |
Gross Unrealized Losses | -13 | -11 |
Fair Value | 94,711 | 98,465 |
Marketable equity securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 1,817 | 1,817 |
Gross Unrealized Gains | 260 | 422 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $2,077 | $2,239 |
Fair_Value_Details_Textual
Fair Value (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||
Dec. 28, 2013 | Dec. 29, 2012 | Jul. 02, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | |
2013 Acquisitions [Member] | Sigrity [Member] | Sigrity [Member] | 2011 Acquisitions [Member] | Intangible Assets [Member] | Intangible Assets [Member] | Deferred Revenue [Member] | Deferred Revenue [Member] | Deferred Revenue [Member] | Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Minimum [Member] | Maximum [Member] | 2013 Acquisitions [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | |||||
2013 Acquisitions [Member] | 2013 Acquisitions [Member] | 2013 Acquisitions [Member] | 2013 Acquisitions [Member] | ||||||||||
Fair Value of Financial Instrument (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Intangible Assets, Amount | $173,800,000 | $40,600,000 | ' | $21,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | 10.00% | 15.00% | 3.00% | ' | ' | 11.00% | 11.00% | 16.00% | 16.00% |
Deferred revenue | ($8,200,000) | ' | ($3,800,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Estimated Profit Rate | ' | ' | ' | ' | ' | ' | ' | 10.00% | 25.00% | ' | ' | ' | ' |
Cash_Cash_Equivalents_and_Inve5
Cash, Cash Equivalents and Investments (Details 4) (Details) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Contractual maturity of marketable debt investments | ' |
Marketable debt securities, amortized cost, due in less than one year | $51,324 |
Marketable debt securities, amortized cost, due in one to three years | 43,321 |
Marketable debt securities, amortized cost, total | 94,645 |
Marketable debt securities, fair value, due in less than one year | 51,358 |
Marketable debt securities, fair value, due in one to three years | 43,353 |
Marketable debt securities, fair value, total | $94,711 |
Cash_Cash_Equivalents_and_Inve6
Cash, Cash Equivalents and Investments (Details 5) (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Securities Owned and Other Investments Not Readily Marketable [Abstract] | ' | ' |
Cost method | $3,038 | $3,038 |
Equity method | 3,639 | 4,249 |
Total non-marketable investments | $6,677 | $7,287 |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Inventories: | ' | ' | ' |
Raw materials | $30,554 | $23,654 | ' |
Finished goods | 19,666 | 12,509 | ' |
Inventories | 50,220 | 36,163 | ' |
Prepaid expenses and other: | ' | ' | ' |
Prepaid expenses and other current assets | 31,751 | 68,494 | ' |
Deferred income taxes | 91,631 | 58,542 | ' |
Prepaid expenses and other | 123,382 | 127,036 | ' |
Property, plant and equipment: | ' | ' | ' |
Computer equipment and related software | 462,044 | 541,180 | ' |
Buildings | 126,512 | 127,201 | ' |
Land | 55,980 | 55,964 | ' |
Leasehold, building and land improvements | 93,049 | 87,506 | ' |
Furniture and fixtures | 23,026 | 21,961 | ' |
Equipment | 44,949 | 44,108 | ' |
In-process capital assets | 1,649 | 1,969 | ' |
Total cost | 807,209 | 879,889 | ' |
Less: Accumulated depreciation and amortization | -568,494 | -635,450 | ' |
Property, plant and equipment, net | 238,715 | 244,439 | 262,517 |
Other assets: | ' | ' | ' |
Deferred income taxes | 144,553 | 171,721 | ' |
NQDC trust assets | 23,866 | 24,235 | ' |
Other long-term assets | 28,106 | 29,610 | ' |
Other assets | 196,525 | 225,566 | ' |
Accounts payable and accrued liabilities: | ' | ' | ' |
Payroll and payroll-related accruals | 145,047 | 129,956 | ' |
Accounts payable | 24,963 | 6,412 | ' |
Income taxes payable - current | 11,062 | 2,305 | ' |
Accrued operating liabilities | 35,522 | 32,645 | ' |
Accounts payable and accrued liabilities | 216,594 | 171,318 | ' |
Other long-term liabilities: | ' | ' | ' |
Income taxes payable - long-term | 11,396 | 51,994 | ' |
NQDC trust liability | 23,960 | 24,329 | ' |
Other liabilities | 36,080 | 27,710 | ' |
Other long-term liabilities | $71,436 | $104,033 | ' |
Stock_Compensation_Plans_and_S2
Stock Compensation Plans and Stock Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | $66,285 | $47,561 | $43,588 |
Income tax benefit | 16,236 | 12,453 | 1,406 |
Stock options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | 13,100 | 8,752 | 8,685 |
Restricted stock and stock bonuses [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | 49,019 | 34,838 | 30,815 |
Employee stock purchase plans [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | $4,166 | $3,971 | $4,088 |
Stock_Compensation_Plans_and_S3
Stock Compensation Plans and Stock Based Compensation (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Stock based compensation expense and allocation by cost | ' | ' | ' |
Stock-based compensation | $66,285 | $47,561 | $43,588 |
Cost of product and maintenance [Member] | ' | ' | ' |
Stock based compensation expense and allocation by cost | ' | ' | ' |
Stock-based compensation | 1,596 | 1,317 | 1,468 |
Cost of services [Member] | ' | ' | ' |
Stock based compensation expense and allocation by cost | ' | ' | ' |
Stock-based compensation | 2,321 | 1,889 | 2,105 |
Marketing and sales [Member] | ' | ' | ' |
Stock based compensation expense and allocation by cost | ' | ' | ' |
Stock-based compensation | 15,642 | 10,193 | 10,356 |
Research and development [Member] | ' | ' | ' |
Stock based compensation expense and allocation by cost | ' | ' | ' |
Stock-based compensation | 32,999 | 21,516 | 18,561 |
General and administrative [Member] | ' | ' | ' |
Stock based compensation expense and allocation by cost | ' | ' | ' |
Stock-based compensation | $13,727 | $12,646 | $11,098 |
Stock_Compensation_Plans_and_S4
Stock Compensation Plans and Stock Based Compensation (Details 2) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' |
Expected volatility | 40.00% | 46.40% | 44.90% |
Risk-free interest rate | 0.86% | 0.79% | 2.18% |
Expected term (in years) | '4 years 8 months 12 days | '4 years 7 months 6 days | '4 years 8 months 12 days |
Weighted-average fair value of options granted | $4.93 | $4.57 | $3.93 |
Stock_Compensation_Plans_and_S5
Stock Compensation Plans and Stock Based Compensation (Details 3) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Options outstanding as of December 29, 2012 | 19,278 |
Acquired options | 1,495 |
Granted | 1,042 |
Exercised | -2,982 |
Canceled and forfeited | -1,358 |
Options outstanding as of December 28, 2013 | 17,475 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Weighted-Average Exercise Price, Options outstanding as of December 29, 2012 | $10.71 |
Weighted Average Exercise Price Acquired Options | $2.46 |
Weighted-Average Exercise Price Granted | $14.21 |
Weighted-Average Exercise Price Exercised | $9.25 |
Weighted-Average Exercise Price Canceled and Forfeited | $15.88 |
Weighted-Average Exercise Price, Options outstanding as of December 28, 2013 | $10.06 |
Summary of company stock option plans | ' |
Shares Options vested as of December 28, 2013 | 14,104 |
Shares Options vested as of, and expected to vest, after December 28, 2013 | 17,462 |
Weighted Average Exercise Price, Options vested as of December 28, 2013 | $10.27 |
Weighted-Average Exercise Price, Options vested as of December 28, 2013 and options expected to vest after December 29, 2012 | $10.06 |
Weighted-Average Remaining Contractual Term, Options outstanding as of December 28, 2013 | '3 years 4 months 20 days |
Weighted-Average Remaining Contractual Term, Options vested as of December 28, 2013 | '2 years 10 months 5 days |
Weighted-Average Remaining Contractual Term, Options vested as of December 28, 2013 and options expected to vest after December 29, 2012 | '3 years 4 months 20 days |
Aggregate Intrinsic Value, Options outstanding as of December 28, 2013 | $80,673 |
Aggregate Intrinsic Value, Options vested as of December 28, 2013 | 64,423 |
Aggregate Intrinsic Value, Options vested as of December 28, 2013 and options expected to vest after December 29, 2012 | $80,632 |
Stock_Compensation_Plans_and_S6
Stock Compensation Plans and Stock Based Compensation (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Intrinsic Value And Cash Received From Stock Options Exercised | ' | ' | ' |
Intrinsic value of options exercised | $15,114 | $11,493 | $7,255 |
Cash received from options exercised | $27,569 | $19,119 | $6,478 |
Stock_Compensation_Plans_and_S7
Stock Compensation Plans and Stock Based Compensation (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | $66,285 | $47,561 | $43,588 |
Stock-based compensation expense related to performance-based grants [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | $4,340 | $3,230 | $2,174 |
Stock_Compensation_Plans_and_S8
Stock Compensation Plans and Stock Based Compensation (Details 6) (Restricted Stock [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 |
Restricted Stock [Member] | ' |
Summary of changes in restricted stock awards outstanding under Cadence's equity incentive plans | ' |
Unvested shares as of December 29, 2012 | 9,444 |
Granted | 5,306 |
Vested | -4,089 |
Forfeited | -548 |
Unvested shares as of December 28, 2013 | 10,113 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Unvested shares as of December 29, 2012, Weighted-Average Grant Date Fair Value | $10.40 |
Granted, Weighted-Average Grant date Fair Value | $15.30 |
Vested, Weighted-Average Grant Date Fair Value | $9.87 |
Forfeited, Weighted-Average Grant Date Fair Value | $11.77 |
Unvested shares as of December 28, 2013, Weighted-Average Grant Date Fair Value | $13.11 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ' |
Unvested shares expected to vest as of December 28, 2013 | 9,418 |
Unvested shares expected to vest as of December 28, 2013, Weighted-Average Grant Date Fair Value | $13.08 |
Unvested shares as of December 28, 2013, Weighted-Average Remaining Vesting Terms | '1 year 1 month |
Unvested shares expected to vest as of December 28, 2013, Weighted-Average Remaining Vesting Terms | '1 year 1 month |
Unvested shares as of December 28, 2013, Aggregate Intrinsic Value | $139,761 |
Unvested shares expected to vest as of December 28, 2013, Aggregate Intrinsic Value | $130,131 |
Stock_Compensation_Plans_and_S9
Stock Compensation Plans and Stock Based Compensation (Details 7) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Restricted Stock [Member] | ' | ' | ' |
Fair value of restricted stock awards that vested | ' | ' | ' |
Fair value of restricted stock realized upon vesting | $58,091 | $48,249 | $43,756 |
Recovered_Sheet1
Stock Compensation Plans and Stock Based Compensation (Details 8) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Weighted-average grant date fair value of purchase rights granted under ESPP and weighted-average assumptions used in model | ' | ' | ' |
Expected volatility | 40.00% | 46.40% | 44.90% |
Risk-free interest rate | 0.86% | 0.79% | 2.18% |
Expected term (in years) | '4 years 8 months 12 days | '4 years 7 months 6 days | '4 years 8 months 12 days |
Weighted-average fair value of options granted | $4.93 | $4.57 | $3.93 |
Purchase rights granted [Member] | ' | ' | ' |
Weighted-average grant date fair value of purchase rights granted under ESPP and weighted-average assumptions used in model | ' | ' | ' |
Expected volatility | 25.70% | 31.40% | 38.40% |
Risk-free interest rate | 0.09% | 0.12% | 0.17% |
Expected term (in years) | '6 months | '6 months | '6 months |
Weighted-average fair value of options granted | $3.21 | $2.78 | $2.48 |
Recovered_Sheet2
Stock Compensation Plans and Stock Based Compensation (Details 9) (Employee stock purchase plans [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Employee stock purchase plans [Member] | ' | ' | ' |
Shares of common stock issued under employee stock purchase plan | ' | ' | ' |
Cadence shares purchased under the ESPP | 1,382 | 1,548 | 2,029 |
Cash received for the purchase of shares under the ESPP | $15,088 | $13,568 | $13,236 |
Weighted-average purchase price per share | $10.91 | $8.77 | $6.52 |
Recovered_Sheet3
Stock Compensation Plans and Stock Based Compensation (Details 10) | Dec. 28, 2013 | |
In Thousands, unless otherwise specified | ||
Common stock reserved for future issuance | ' | |
Common stock reserved for future issuance | 98,156 | |
Employee equity incentive plans [Member] | ' | |
Common stock reserved for future issuance | ' | |
Common stock reserved for future issuance | 32,600 | [1] |
2015 Warrants [Member] | ' | |
Common stock reserved for future issuance | ' | |
Common stock reserved for future issuance | 46,382 | |
2013 Notes Warrants [Member] | ' | |
Common stock reserved for future issuance | ' | |
Common stock reserved for future issuance | 6,830 | |
Employee stock purchase plans [Member] | ' | |
Common stock reserved for future issuance | ' | |
Common stock reserved for future issuance | 9,869 | |
Directors stock option plans [Member] | ' | |
Common stock reserved for future issuance | ' | |
Common stock reserved for future issuance | 2,475 | [1] |
[1] | Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units. |
Recovered_Sheet4
Stock Compensation Plans and Stock Based Compensation (Details Textual) (USD $) | 12 Months Ended |
Dec. 28, 2013 | |
2000 Plan [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Number of shares available for issuance under equity incentive plan | 57,500,000 |
Restricted Stock [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Total unrecognized compensation expense , net of estimates forfeitures | $101,200,000 |
Weighted-average vesting period over which unrecognized compensation expense will be recognized | '2 years |
Restricted Stock [Member] | Maximum [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Minimum vesting period | '4 years |
Restricted Stock [Member] | Minimum [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Minimum vesting period | '3 years |
Nonstatutory Stock Incentive Plans [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Expiration period from date of grant for options granted | '7 years |
1987 Plan [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Number of shares available for issuance under equity incentive plan | 79,370,100 |
Expiration period from date of grant for options granted | '7 years |
Number of shares which may be issued pursuant to restricted stock awards | 5,000,000 |
Maximum exercisable period for options granted | '5 years |
1995 Directors Stock Options Plan [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Number of shares available for issuance under equity incentive plan | 3,550,000 |
Minimum vesting period | '1 year |
Term of options granted under Directors' Plan | '10 years |
Stock options [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Total unrecognized compensation expense , net of estimates forfeitures | 18,500,000 |
Weighted-average vesting period over which unrecognized compensation expense will be recognized | '2 years |
Employee Stock Purchase Plan (ESPP) [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Number of shares available for issuance under Employee Stock Purchase Plan | 74,000,000 |
Purchase period for common stock | '6 months |
January 2009 Employee Stock Purchase Plan ESPP [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Percentage of lower of fair market value at beginning or end of applicable offering period used for calculating price of common stock to be purchased by employees | 85.00% |
Employee Stock Purchase Plan with Offering Period Commencing on August 1, 2009 [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Maximum percentage of annual base earnings plus bonuses and commissions for which common stock can be purchased by employees | 5.00% |
Maximum amount for which common stock can be purchased by employees in any calendar year | 7,058.82 |
Employee Stock Purchase Plan with Offering Period Commencing on February, 1 2014 [Member] | ' |
Stock Compensation Plans (Textual) [Abstract] | ' |
Maximum percentage of annual base earnings plus bonuses and commissions for which common stock can be purchased by employees | 7.00% |
Maximum amount for which common stock can be purchased by employees in any calendar year | $9,411.76 |
Restructuring_and_Other_Charge2
Restructuring and Other Charges Restructuring and Other Charges (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and other charges | $17,999 | $113 | $360 | ' |
Payments for Restructuring | 7,895 | 923 | 10,604 | ' |
Restructuring Reserve | 14,224 | 4,343 | 5,027 | 15,071 |
2013 Restructuring Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and other charges | 17,589 | ' | ' | ' |
Payments for Restructuring | 6,944 | ' | ' | ' |
Restructuring Reserve | $10,672 | ' | ' | ' |
Restructuring_and_Other_Charge3
Restructuring and Other Charges (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 |
In Thousands, unless otherwise specified | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve | $14,224 | $4,343 | $5,027 | $15,071 |
Accounts payable and accrued liabilities [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve | 10,139 | ' | ' | ' |
Other long-term liabilities [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve | $4,085 | ' | ' | ' |
Restructuring_and_Other_Charge4
Restructuring and Other Charges (Details 1) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Cadence's Restructuring Plans | ' | ' | ' |
Beginning Balance | $4,343,000 | $5,027,000 | $15,071,000 |
Restructuring and other charges (credits), net | 17,999,000 | 113,000 | 360,000 |
Non-cash charges | -309,000 | ' | 137,000 |
Cash payments | -7,895,000 | -923,000 | -10,604,000 |
Effect of foreign currency translation | 86,000 | 126,000 | 63,000 |
Ending Balance | 14,224,000 | 4,343,000 | 5,027,000 |
Restructuring and Other Charges (Textual) [Abstract] | ' | ' | ' |
Maximum Amount of estimated lease losses based on changes in assumptions | 6,300,000 | ' | ' |
Severance and Benefits [Member] | ' | ' | ' |
Cadence's Restructuring Plans | ' | ' | ' |
Beginning Balance | 0 | 46,000 | 9,198,000 |
Restructuring and other charges (credits), net | 17,589,000 | -29,000 | -944,000 |
Non-cash charges | 0 | ' | 0 |
Cash payments | -6,944,000 | -17,000 | -8,385,000 |
Effect of foreign currency translation | 27,000 | 0 | 177,000 |
Ending Balance | 10,672,000 | 0 | 46,000 |
Excess Facilities [Member] | ' | ' | ' |
Cadence's Restructuring Plans | ' | ' | ' |
Beginning Balance | 4,343,000 | 4,976,000 | 5,868,000 |
Restructuring and other charges (credits), net | 101,000 | 147,000 | 1,304,000 |
Non-cash charges | 0 | ' | 137,000 |
Cash payments | -951,000 | -906,000 | -2,219,000 |
Effect of foreign currency translation | 59,000 | 126,000 | -114,000 |
Ending Balance | 3,552,000 | 4,343,000 | 4,976,000 |
Other [Member] | ' | ' | ' |
Cadence's Restructuring Plans | ' | ' | ' |
Beginning Balance | 0 | 5,000 | 5,000 |
Restructuring and other charges (credits), net | 309,000 | -5,000 | 0 |
Non-cash charges | -309,000 | ' | 0 |
Cash payments | 0 | 0 | 0 |
Effect of foreign currency translation | 0 | 0 | 0 |
Ending Balance | $0 | $0 | $5,000 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Earnings Per Share, Basic and Diluted [Abstract] | ' | ' | ' |
Net income | $164,243 | $439,948 | $72,229 |
Weighted average common shares used to calculate basic net income per share | 277,796 | 270,479 | 263,892 |
2023 Notes | 8 | 11 | 11 |
2015 Warrants | 10,549 | 4,237 | 0 |
Stock-based compensation | 6,211 | 5,940 | 6,913 |
Weighted average common shares used to calculate diluted net income per share | 294,564 | 280,667 | 270,816 |
Net income per share - basic (in usd per share) | $0.59 | $1.63 | $0.27 |
Net income per share - diluted (in usd per share) | $0.56 | $1.57 | $0.27 |
Net_Income_Per_Share_Details_1
Net Income Per Share (Details 1) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Potential shares of Cadence's common stock excluded | ' | ' | ' |
Total potential common shares excluded | 13,649 | 18,401 | 78,684 |
2015 Warrants | ' | ' | ' |
Potential shares of Cadence's common stock excluded | ' | ' | ' |
Total potential common shares excluded | 0 | 0 | 46,382 |
2011 Warrants and 2013 Warrants | ' | ' | ' |
Potential shares of Cadence's common stock excluded | ' | ' | ' |
Total potential common shares excluded | 6,830 | 6,830 | 13,922 |
Options to purchase shares of common stock | ' | ' | ' |
Potential shares of Cadence's common stock excluded | ' | ' | ' |
Total potential common shares excluded | 5,973 | 11,501 | 17,580 |
Non-vested shares of restricted stock | ' | ' | ' |
Potential shares of Cadence's common stock excluded | ' | ' | ' |
Total potential common shares excluded | 846 | 70 | 800 |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated other comprehensive income | ' | ' |
Foreign currency translation gain | $27,183 | $48,653 |
Changes in defined benefit plan liabilities | -3,218 | -5,229 |
Unrealized holding gains on available-for-sale securities | 346 | 526 |
Total accumulated other comprehensive income | $24,311 | $43,950 |
Other_Comprehensive_Income_Det1
Other Comprehensive Income (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Changes in unrealized holding gains or losses on available-for-sale securities | ' | ' | ' |
Unrealized holding gains or losses | ($127) | ($764) | $50 |
Tax effect of unrealized holding gains | 0 | 0 | 2,882 |
Reclassification of unrealized holding gains or losses to other income, net | -53 | -141 | -8,072 |
Changes in unrealized holding gains or losses | ($180) | ($905) | ($5,140) |
Commitments_and_Contingencies_2
Commitments and Contingencies Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Operating Leases, Rent Expense, Net [Abstract] | ' | ' | ' |
Rent expense | $21,667 | $20,082 | $20,633 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Operating leases, future minimum payments due in 2014 | 23,233 | ' | ' |
Operating leases, committed sub-lease income due in 2014 | -902 | ' | ' |
Operating leases, future minimum payments due, net in 2014 | 22,331 | ' | ' |
Operating leases, future minimum payments, due in 2015 | 20,109 | ' | ' |
Operating leases, committed sub-lease income due in 2015 | -530 | ' | ' |
Operating leases, future minimum payments due, net in 2015 | 19,579 | ' | ' |
Operating leases, future minimum payments, due in 2016 | 15,664 | ' | ' |
Operating leases, committed sub-lease income due in 2016 | -282 | ' | ' |
Operating leases, future minimum payments due, net in 2016 | 15,382 | ' | ' |
Operating leases, future minimum payments, due in 2017 | 8,046 | ' | ' |
Operating leases, committed sub-lease income due in 2017 | -90 | ' | ' |
Operating leases, future minimum payments due, net in 2017 | 7,956 | ' | ' |
Operating leases, future minimum payments, due in 2018 | 5,537 | ' | ' |
Operating leases, committed sub-lease income due in 2018 | 0 | ' | ' |
Operating leases, future minimum payments due, net in 2018 | 5,537 | ' | ' |
Operating leases, future minimum payments, due thereafter | 9,634 | ' | ' |
Operating leases, committed sub-lease income due thereafter | 0 | ' | ' |
Operating leases, future minimum payments due, net thereafter | 9,634 | ' | ' |
Operating leases, future minimum payments due | 82,223 | ' | ' |
Operating leases, committed sub-lease income due | -1,804 | ' | ' |
Operating leases, future minimum payments due, net | $80,419 | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Outstanding liability for restructuring plans | $14,224,000 | $4,343,000 | $5,027,000 | $15,071,000 |
Purchase Obligation | 78,200,000 | ' | ' | ' |
General Period of Warranty on Sales of Hardware Products | '90 days | ' | ' | ' |
Facility Closing [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Outstanding liability for restructuring plans | $3,552,000 | $4,343,000 | $4,976,000 | $5,868,000 |
Employee_and_Director_Benefit_2
Employee and Director Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Contributions to plan | ' | ' | ' |
Contributions to defined contribution plans | $20,055 | $17,896 | $16,244 |
Net recognized gains (losses) of trading securities | ' | ' | ' |
Trading securities | 3,293 | 4,453 | -472 |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets [Abstract] | ' | ' | ' |
Unfunded projected benefit obligation - defined benefit retirement plans | 7,160 | 9,400 | 8,889 |
Expense related to defined benefit plans | ' | ' | ' |
Expense related to defined benefit plans | $1,817 | $1,580 | $2,175 |
Other_Income_Net_Details
Other Income, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Other Income (Expense), Net | ' | ' | ' |
Interest income | $1,706 | $1,473 | $1,303 |
Gains on sale of marketable debt and equity securities, net | 1,364 | 141 | 8,009 |
Gains on sale of non-marketable equity investments | 1,230 | 2,895 | 8,281 |
Gains (losses) on securities in Cadence's NQDC | 3,293 | 4,453 | -472 |
Gains on foreign exchange | 285 | 3,263 | 740 |
Write-down of non-marketable investments | -464 | -1,103 | 0 |
Other income, net | 156 | 219 | 213 |
Total other income, net | $7,570 | $11,341 | $18,074 |
Stock_Repurchase_Programs_Deta
Stock Repurchase Programs (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Repurchase of common shares | ' | ' | ' |
Remaining Authorization | $814,389 | ' | ' |
Share repurchased and total cost of repurchased shares | ' | ' | ' |
Shares repurchased | 0 | 0 | 0 |
Total cost of repurchased shares | 0 | 0 | 0 |
February 2008 [Member] | ' | ' | ' |
Repurchase of common shares | ' | ' | ' |
Amount | 500,000 | ' | ' |
Remaining Authorization | 314,389 | ' | ' |
August 2008 [Member] | ' | ' | ' |
Repurchase of common shares | ' | ' | ' |
Amount | 500,000 | ' | ' |
Remaining Authorization | $500,000 | ' | ' |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' |
Total revenue | $1,460,116 | $1,326,424 | $1,149,835 |
Americas: | ' | ' | ' |
Total Americas | 671,654 | 590,576 | 514,590 |
UNITED STATES | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' |
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | 648,714 | 567,609 | 489,438 |
Other Americas [Member] | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' |
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | 22,940 | 22,967 | 25,152 |
Europe, Middle East and Africa [Member] | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' |
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | 303,593 | 262,375 | 234,880 |
Japan [Member] | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' |
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | 195,804 | 218,731 | 204,388 |
Asia [Member] | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' |
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | $289,065 | $254,742 | $195,977 |
Segment_Reporting_Details_1
Segment Reporting (Details 1) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Summary of long-lived assets by geography | ' | ' | ' |
Total long-lived assets | $238,715 | $244,439 | $262,517 |
Americas: | ' | ' | ' |
Total Americas | 207,988 | 214,896 | 230,919 |
UNITED STATES | ' | ' | ' |
Summary of long-lived assets by geography | ' | ' | ' |
Long-Lived Assets in Individual Foreign Countries | 207,694 | 214,711 | 230,884 |
Other Americas [Member] | ' | ' | ' |
Summary of long-lived assets by geography | ' | ' | ' |
Long-Lived Assets in Individual Foreign Countries | 294 | 185 | 35 |
Europe, Middle East and Africa [Member] | ' | ' | ' |
Summary of long-lived assets by geography | ' | ' | ' |
Long-Lived Assets in Individual Foreign Countries | 6,326 | 5,410 | 4,813 |
Japan [Member] | ' | ' | ' |
Summary of long-lived assets by geography | ' | ' | ' |
Long-Lived Assets in Individual Foreign Countries | 893 | 1,649 | 3,960 |
Asia [Member] | ' | ' | ' |
Summary of long-lived assets by geography | ' | ' | ' |
Long-Lived Assets in Individual Foreign Countries | $23,508 | $22,484 | $22,825 |
Subsequent_Event_Subsequent_Ev
Subsequent Event Subsequent Event (Details) (Subsequent Event [Member], USD $) | 2 Months Ended |
In Millions, unless otherwise specified | Feb. 20, 2014 |
acquisition | |
Subsequent Event [Line Items] | ' |
Number of acquisitions | 2 |
2014 Acquisitions [Member] | ' |
Subsequent Event [Line Items] | ' |
Total consideration paid, net of cash acquired | 28 |
Estimated cash acquired | 2 |