Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 28, 2014 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'CADENCE DESIGN SYSTEMS INC |
Entity Central Index Key | '0000813672 |
Document Type | '10-Q |
Document Period End Date | 28-Jun-14 |
Amendment Flag | 'false |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Current Fiscal Year End Date | '--01-03 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 290,040,000 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $557,416 | $536,260 |
Short-term investments | 97,910 | 96,788 |
Receivables, net | 101,924 | 107,624 |
Inventories | 58,311 | 50,220 |
2015 notes hedges | 455,844 | 306,817 |
Prepaid expenses and other | 143,314 | 123,382 |
Total current assets | 1,414,719 | 1,221,091 |
Property, plant and equipment, net of accumulated depreciation of $584,613 and $568,494, respectively | 239,314 | 238,715 |
Goodwill | 559,957 | 456,905 |
Acquired intangibles, net of accumulated amortization of $121,797 and $139,820, respectively | 395,430 | 311,693 |
Long-term receivables | 5,611 | 3,672 |
Other assets | 170,802 | 196,525 |
Total assets | 2,785,833 | 2,428,601 |
Current Liabilities: | ' | ' |
Revolving credit facility | 100,000 | 0 |
Convertible notes | 333,333 | 324,826 |
2015 notes embedded conversion derivative | 455,844 | 306,817 |
Accounts payable and accrued liabilities | 216,959 | 216,594 |
Current portion of deferred revenue | 301,911 | 299,973 |
Total current liabilities | 1,408,047 | 1,148,210 |
Long-Term Liabilities: | ' | ' |
Long-term portion of deferred revenue | 46,800 | 52,850 |
Other long-term liabilities | 70,502 | 71,436 |
Total long-term liabilities | 117,302 | 124,286 |
Commitments and contingencies | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock and capital in excess of par value | 1,812,175 | 1,757,242 |
Treasury stock, at cost | -154,839 | -140,142 |
Accumulated deficit | -428,973 | -485,306 |
Accumulated other comprehensive income | 32,121 | 24,311 |
Total stockholders’ equity | 1,260,484 | 1,156,105 |
Total liabilities and stockholders’ equity | $2,785,833 | $2,428,601 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accumulated depreciation on property, plant and equipment | $584,613 | $568,494 |
Accumulated amortization on acquired intangibles assets | $121,797 | $139,820 |
Condensed_Consolidated_Income_
Condensed Consolidated Income Statements (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Revenue: | ' | ' | ' | ' |
Product and maintenance | $354,468 | $337,983 | $711,818 | $666,254 |
Services | 24,320 | 24,498 | 45,520 | 50,493 |
Total revenue | 378,788 | 362,481 | 757,338 | 716,747 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of product and maintenance | 37,707 | 28,095 | 79,904 | 57,942 |
Cost of services | 16,706 | 15,148 | 31,608 | 33,492 |
Marketing and sales | 98,611 | 95,277 | 196,934 | 185,679 |
Research and development | 152,672 | 136,395 | 299,138 | 260,479 |
General and administrative | 32,042 | 34,441 | 60,786 | 64,251 |
Amortization of acquired intangibles | 5,579 | 5,327 | 10,789 | 9,118 |
Restructuring and other charges (credits) | -26 | 2,656 | 370 | 2,508 |
Total costs and expenses | 343,291 | 317,339 | 679,529 | 613,469 |
Income from operations | 35,497 | 45,142 | 77,809 | 103,278 |
Interest expense | -7,369 | -9,528 | -14,637 | -18,790 |
Other income, net | 1,635 | 2,018 | 5,017 | 4,193 |
Income before provision for income taxes | 29,763 | 37,632 | 68,189 | 88,681 |
Provision for income taxes | 6,500 | 28,203 | 11,856 | 643 |
Net income | $23,263 | $9,429 | $56,333 | $88,038 |
Net income per share - basic (in usd per share) | $0.08 | $0.03 | $0.20 | $0.32 |
Net income per share - diluted (in usd per share) | $0.08 | $0.03 | $0.19 | $0.30 |
Weighted average common shares outstanding - basic (in shares) | 283,344 | 277,146 | 282,480 | 276,018 |
Weighted average common shares outstanding - diluted (in shares) | 305,755 | 294,443 | 303,395 | 293,274 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $23,263 | $9,429 | $56,333 | $88,038 |
Other comprehensive income (loss), net of tax effects: | ' | ' | ' | ' |
Foreign currency translation adjustments | 2,377 | -11,705 | 6,828 | -17,867 |
Changes in unrealized holding gains or losses on available-for-sale securities, net of reclassification adjustment for realized gains and losses | 775 | -99 | 595 | -383 |
Changes in defined benefit plan liabilities | -21 | 65 | 387 | 383 |
Total other comprehensive income (loss), net of tax effects | 3,131 | -11,739 | 7,810 | -17,867 |
Comprehensive income (loss) | $26,394 | ($2,310) | $64,143 | $70,171 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Cash and cash equivalents at beginning of period | $536,260 | $726,357 |
Cash flows from operating activities: | ' | ' |
Net income | 56,333 | 88,038 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 53,609 | 46,977 |
Amortization of debt discount and fees | 9,814 | 12,625 |
Stock-based compensation | 37,941 | 28,921 |
Gain on investments, net | -5,128 | -2,477 |
Deferred income taxes | 4,778 | -4,413 |
Other non-cash items | 3,694 | 433 |
Changes in operating assets and liabilities, net of effect of acquired businesses: | ' | ' |
Receivables | 5,336 | 8,719 |
Inventories | -12,266 | -2,672 |
Prepaid expenses and other | -13,602 | 26,516 |
Other assets | -1,273 | -45,274 |
Accounts payable and accrued liabilities | -13,550 | 10,023 |
Deferred revenue | -23,740 | -24,359 |
Other long-term liabilities | -4,983 | 7,174 |
Net cash provided by operating activities | 96,963 | 150,231 |
Cash flows from investing activities: | ' | ' |
Purchases of available-for-sale securities | -77,490 | -63,705 |
Proceeds from the sale of available-for-sale securities | 54,601 | 46,857 |
Proceeds from the maturity of available-for-sale securities | 23,799 | 15,716 |
Proceeds from the sale of long-term investments | 0 | 6,102 |
Purchases of property, plant and equipment | -17,715 | -23,739 |
Cash paid in business combinations and asset acquisitions, net of cash acquired | -163,685 | -392,139 |
Net cash used for investing activities | -180,490 | -410,908 |
Cash flows from financing activities: | ' | ' |
Proceeds from revolving line of credit | 100,000 | 100,000 |
Principal payments on receivable financing | 0 | -2,526 |
Payment of acquisition-related contingent consideration | -1,835 | -582 |
Tax effect related to employee stock transactions allocated to equity | 2,642 | 7,300 |
Proceeds from issuance of common stock | 36,482 | 30,227 |
Stock received for payment of employee taxes on vesting of restricted stock | -12,292 | -11,758 |
Payments for repurchases of common stock | -25,032 | 0 |
Net cash provided by financing activities | 99,965 | 122,661 |
Effect of exchange rate changes on cash and cash equivalents | 4,718 | -11,108 |
Increase (decrease) in cash and cash equivalents | 21,156 | -149,124 |
Cash and cash equivalents at end of period | 557,416 | 577,233 |
Supplemental cash flow information: | ' | ' |
Cash paid for interest | 4,831 | 6,294 |
Cash paid for taxes, net | 10,231 | 6,598 |
Non-cash investing and financing activities: | ' | ' |
Stock options assumed in acquisitions | 0 | 529 |
Available-for-sale securities received from customer | $1,695 | $232 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by Cadence Design Systems, Inc., or Cadence, without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission, or the SEC. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, Cadence believes that the disclosures contained in this Quarterly Report on Form 10-Q comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These condensed consolidated financial statements are meant to be, and should be, read in conjunction with the consolidated financial statements and the Notes thereto included in Cadence’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013. Certain prior period balances have been reclassified to conform to current period presentation. | |
The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q reflect all adjustments (which include only normal, recurring adjustments and those items discussed in these Notes) that are, in the opinion of management, necessary to state fairly the results of operations, cash flows and financial position for the periods and dates presented. The results for such periods are not necessarily indicative of the results to be expected for the full fiscal year. Management has evaluated subsequent events through the issuance date of the unaudited condensed consolidated financial statements. | |
Preparation of the condensed consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Debt
Debt | 6 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
DEBT | ' | |||||||||||||||||||||||
DEBT | ||||||||||||||||||||||||
Cadence’s outstanding debt as of June 28, 2014 and December 28, 2013 was as follows: | ||||||||||||||||||||||||
28-Jun-14 | December 28, 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Principal | Unamortized Discount | Carrying Value | Principal | Unamortized Discount | Carrying Value | |||||||||||||||||||
2015 Notes | $ | 350,000 | $ | (16,667 | ) | $ | 333,333 | $ | 350,000 | $ | (25,174 | ) | $ | 324,826 | ||||||||||
Revolving credit facility | 100,000 | — | 100,000 | — | — | — | ||||||||||||||||||
Total outstanding debt | $ | 450,000 | $ | (16,667 | ) | $ | 433,333 | $ | 350,000 | $ | (25,174 | ) | $ | 324,826 | ||||||||||
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 and accrued interest. In June 2010, Cadence also sold warrants in separate transactions, or the 2015 Warrants. As a result of the 2015 Warrants, Cadence will experience dilution to its diluted earnings per share if its average closing stock price exceeds $10.78 for any fiscal quarter. To the extent that Cadence’s stock price exceeds $10.78 at expiration of the 2015 Warrants, Cadence will issue shares to net settle the 2015 Warrants. | ||||||||||||||||||||||||
A summary of key terms of the 2015 Notes is as follows: | ||||||||||||||||||||||||
2015 Notes | ||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||
Outstanding principal maturity value – at June 28, 2014 | $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 mature on June 1, 2015 and therefore are classified as a current liability as of June 28, 2014. The 2015 Notes are convertible into cash from June 29, 2014 through September 27, 2014 because Cadence’s closing stock price exceeded $9.81 for at least 20 days in the 30-day period prior to June 28, 2014. | ||||||||||||||||||||||||
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 June 28, 2014, Cadence would have recorded an expense of $19.0 million associated with the conversion, comprised of $16.7 million of unamortized debt discount and $2.3 million of unamortized transaction fees. | ||||||||||||||||||||||||
As of June 28, 2014, the if-converted value of the 2015 Notes to the note holders of approximately $804.3 million exceeded the principal amount of $350.0 million. The fair value of the 2015 Notes was $807.7 million as of June 28, 2014 and $654.1 million as of December 28, 2013. The 2015 Notes currently trade at a premium to the if-converted value of the notes. | ||||||||||||||||||||||||
2015 Notes Embedded Conversion Derivative | ||||||||||||||||||||||||
The conversion feature of the 2015 Notes, or the 2015 Notes Embedded Conversion Derivative, requires bifurcation from the 2015 Notes and is accounted for as a derivative liability. The fair value of the 2015 Notes Embedded Conversion Derivative at the time of issuance of the 2015 Notes was $76.6 million and was recorded as original debt discount for purposes of accounting for the debt component of the 2015 Notes. This discount is amortized as interest expense using the effective interest method over the term of the 2015 Notes. The 2015 Notes Embedded Conversion Derivative is carried on the condensed consolidated balance sheet at its estimated fair value. The fair value was $455.8 million as of June 28, 2014 and $306.8 million as of December 28, 2013. | ||||||||||||||||||||||||
2015 Notes Hedges | ||||||||||||||||||||||||
The 2015 Notes Hedges expire on June 1, 2015 and must be settled in cash. The aggregate cost of the 2015 Notes Hedges was $76.6 million. The 2015 Notes Hedges are accounted for as derivative assets and are carried on the condensed consolidated balance sheet at their estimated fair value. The 2015 Notes Hedges fair value was $455.8 million as of June 28, 2014 and $306.8 million as of December 28, 2013. The 2015 Notes Embedded Conversion Derivative liability and the 2015 Notes Hedges asset are adjusted to fair value each reporting period and unrealized gains and losses are reflected in the condensed consolidated income statements. The 2015 Notes Embedded Conversion Derivative and the 2015 Notes Hedges are designed to have similar fair values. Accordingly, the changes in the fair values of these instruments offset during the three and six months ended June 28, 2014 and June 29, 2013 and did not have a net impact on the condensed consolidated income statements for the respective periods. | ||||||||||||||||||||||||
The classification of the 2015 Notes Embedded Conversion Derivative liability and the 2015 Notes Hedges asset as current on the condensed consolidated balance sheet corresponds with the classification of the 2015 Notes. | ||||||||||||||||||||||||
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. Upon expiration of the 2015 Warrants, Cadence will issue shares of common stock to the purchasers of the 2015 Warrants that represent the value by which the price of the common stock exceeds the strike price stipulated within the particular warrant agreement. | ||||||||||||||||||||||||
The effective interest rate and components of interest expense of the 2015 Notes for the three and six months ended June 28, 2014 and June 29, 2013 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 8.1 | % | 8.1 | % | 8.1 | % | 8.1 | % | ||||||||||||||||
Contractual interest expense | $ | 2,289 | $ | 2,289 | $ | 4,578 | $ | 4,578 | ||||||||||||||||
Amortization of debt discount | $ | 4,275 | $ | 3,951 | $ | 8,507 | $ | 7,861 | ||||||||||||||||
Revolving 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 on borrowings under the credit facility at either LIBOR plus a margin between 1.25% and 2.0% per annum or at a base rate plus a margin between 0.25% and 1.0% per annum. The interest rate applied to borrowings is determined by Cadence’s consolidated leverage ratio as specified by the credit facility agreement. 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. As of June 28, 2014, the interest rate applied to outstanding borrowings under the credit facility was 1.40%. | ||||||||||||||||||||||||
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 June 28, 2014 and December 28, 2013, Cadence had outstanding borrowings under the credit facility of $100.0 million and $0, respectively, and was in compliance with all financial covenants. |
Acquisitions_and_AcquisitionRe
Acquisitions and Acquisition-Related Contingent Consideration | 6 Months Ended | |||
Jun. 28, 2014 | ||||
Business Combinations [Abstract] | ' | |||
ACQUISITIONS AND ACQUISITION-RELATED CONTINGENT CONSIDERATION | ' | |||
ACQUISITIONS AND ACQUISITION-RELATED CONTINGENT CONSIDERATION | ||||
Acquisitions | ||||
On June 13, 2014, Cadence acquired Jasper Design Automation, Inc., or Jasper, a privately held provider of formal analysis solutions based in Mountain View, California. The acquired technology complements Cadence's existing system design and verification platforms. Total cash consideration for Jasper, after taking into account adjustments for certain costs, and cash held by Jasper at closing of $28.7 million, was $139.5 million. Cadence will also make payments to certain employees that are conditioned upon continued employment and the achievement of certain performance metrics over a three-year period. | ||||
The following table summarizes the fair value of assets acquired and liabilities assumed in the acquisition of Jasper: | ||||
(In thousands) | ||||
Cash and cash equivalents | $ | 28,678 | ||
Property, plant and equipment | 520 | |||
Other assets | 4,362 | |||
Acquired intangibles: | ||||
Existing technology | 68,200 | |||
Agreements and relationships | 13,600 | |||
Tradenames and trademarks | 900 | |||
In-process technology | 10,300 | |||
Goodwill | 81,269 | |||
Total assets acquired | $ | 207,829 | ||
Deferred revenue | (11,900 | ) | ||
Other liabilities | (7,719 | ) | ||
Long-term deferred tax liabilities | (20,002 | ) | ||
Net assets acquired | $ | 168,208 | ||
The allocation of purchase consideration to certain assets and liabilities has not been finalized. Cadence will continue to evaluate certain estimates and assumptions, primarily related to taxes and assumed liabilities, during the measurement period (up to one year from the acquisition date). | ||||
During the six months ended June 28, 2014, Cadence also completed two other business combinations for total cash consideration of $27.5 million, after taking into account cash acquired of $2.1 million. The total purchase consideration was preliminarily allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates. Cadence recorded a total of $20.3 million of goodwill, $16.9 million of other intangible assets and $8.1 million of net liabilities consisting primarily of long-term deferred income taxes and deferred revenue. | ||||
Cadence amortizes acquired intangible assets with definite lives on a straight-line basis over the remaining estimated economic life of the underlying products and technologies. The weighted-average amortization period for definite-lived intangible assets acquired during the six months ended June 28, 2014 is approximately eight years. | ||||
The goodwill related to Cadence’s acquisitions during the six months ended June 28, 2014 is primarily related to expected synergies from combining operations of the acquired companies with Cadence. Cadence expects that approximately $2.8 million of goodwill related to the acquisitions completed during the six months ended June 28, 2014 will be deductible for tax purposes. | ||||
Results of operations and the estimated fair value of acquired assets and assumed liabilities are recorded in the condensed consolidated financial statements from the date of acquisition. The fair values of acquired intangible assets, including in-process technology and assumed liabilities, were determined using significant inputs that are not observable in the market. For an additional description of these fair value calculations, see Note 7 in the notes to condensed consolidated financial statements. | ||||
Transaction costs associated with Cadence’s acquisitions were $2.7 million and $3.7 million for the three and six months ended June 28, 2014, respectively, and $4.8 million and $8.2 million for the three and six months ended June 29, 2013, respectively. These costs consisted of professional fees and administrative costs and were expensed as incurred in Cadence’s condensed consolidated income statements. | ||||
Acquisition-Related Contingent Consideration | ||||
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 associated with the acquired technology. If performance is such that these payments are fully achieved, Cadence will be obligated to pay up to an aggregate of $11.8 million over the next 22 months. Of the $11.8 million, up to $9.1 million would be recorded as operating expenses in the condensed consolidated income statements. |
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangibles | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
GOODWILL AND ACQUIRED INTANGIBLES | ' | |||||||||||||||
GOODWILL AND ACQUIRED INTANGIBLES | ||||||||||||||||
Goodwill | ||||||||||||||||
The changes in the carrying amount of goodwill during the six months ended June 28, 2014 were as follows: | ||||||||||||||||
Gross Carrying | ||||||||||||||||
Amount | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 28, 2013 | $ | 456,905 | ||||||||||||||
Goodwill resulting from acquisitions | 102,025 | |||||||||||||||
Measurement period adjustments | (436 | ) | ||||||||||||||
Effect of foreign currency translation | 1,463 | |||||||||||||||
Balance as of June 28, 2014 | $ | 559,957 | ||||||||||||||
Measurement period adjustments to goodwill are applied based on new information obtained about preliminary amounts recognized for a business combination. During the six months ended June 28, 2014, Cadence recorded a measurement period adjustment related to certain tax estimates and assumptions made for one of its fiscal 2014 acquisitions, resulting in a decrease to goodwill. | ||||||||||||||||
Acquired Intangibles, Net | ||||||||||||||||
Acquired intangibles as of June 28, 2014 were as follows, excluding intangibles that were fully amortized as of December 28, 2013: | ||||||||||||||||
Gross Carrying | Accumulated | Acquired | ||||||||||||||
Amount | Amortization | Intangibles, Net | ||||||||||||||
(In thousands) | ||||||||||||||||
Existing technology | $ | 319,593 | $ | (65,059 | ) | $ | 254,534 | |||||||||
Agreements and relationships | 175,499 | (53,159 | ) | 122,340 | ||||||||||||
Tradenames, trademarks and patents | 10,619 | (3,579 | ) | 7,040 | ||||||||||||
Total acquired intangibles with definite lives | 505,711 | (121,797 | ) | 383,914 | ||||||||||||
In-process technology | 11,516 | — | 11,516 | |||||||||||||
Total acquired intangibles | $ | 517,227 | $ | (121,797 | ) | $ | 395,430 | |||||||||
In-process technology as of June 28, 2014 consists of acquired projects that, if completed, will contribute to Cadence’s ability to offer additional IP and software solutions to its customers. As of June 28, 2014, these projects were expected to be complete in three to fifteen months. During the six months ended June 28, 2014, Cadence completed certain projects previously included in in-process technology and transferred approximately $2.3 million to existing technology. | ||||||||||||||||
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) | ||||||||||||||||
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 expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization of acquired intangibles for the three and six months ended June 28, 2014 and June 29, 2013 was as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of product and maintenance | $ | 8,613 | $ | 5,760 | $ | 16,189 | $ | 9,567 | ||||||||
Amortization of acquired intangibles | 5,579 | 5,327 | 10,789 | 9,118 | ||||||||||||
Total amortization of acquired intangibles | $ | 14,192 | $ | 11,087 | $ | 26,978 | $ | 18,685 | ||||||||
Estimated amortization expense for intangible assets with definite lives for the following five fiscal years and thereafter is as follows: | ||||||||||||||||
(In thousands) | ||||||||||||||||
2014 – remaining period | $ | 32,522 | ||||||||||||||
2015 | 63,522 | |||||||||||||||
2016 | 56,646 | |||||||||||||||
2017 | 51,695 | |||||||||||||||
2018 | 48,059 | |||||||||||||||
Thereafter | 131,470 | |||||||||||||||
Total estimated amortization expense | $ | 383,914 | ||||||||||||||
Income_Taxes_Income_Taxes
Income Taxes Income Taxes | 6 Months Ended |
Jun. 28, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
Cadence’s provision for income taxes of $6.5 million and $11.9 million for the three and six months ended June 28, 2014 primarily resulted from federal, state and foreign income taxes on its anticipated fiscal 2014 income. Cadence’s foreign earnings are generally subject to lower statutory tax rates than its United States earnings. In addition, Cadence’s provision for income taxes for the three months ended June 28, 2014 does not include the potential tax benefit of the United States federal research tax credit which expired in December 2013. The expiration of the research tax credit is estimated to increase Cadence’s estimated annual effective tax rate for fiscal 2014 by 3%. | |
Cadence’s provision for income taxes of $28.2 million for the three months ended June 29, 2013 was primarily related to federal, state and foreign income taxes on its anticipated fiscal 2013 income and tax expense related to an increase in the United States valuation allowance. Cadence's provision for income taxes for the six months ended June 29, 2013 was primarily related to federal, state and foreign income taxes on its fiscal 2013 income partially offset by a tax benefit of $33.7 million from the release of an uncertain tax position, including related interest and penalties, and a $5.9 million tax benefit from the retroactive enactment of the fiscal 2012 United States federal research tax credit during the period. |
Receivables_net
Receivables, net | 6 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
RECEIVABLES AND ALLOWANCES FOR DOUBTFUL ACCOUNTS | ' | |||||||
RECEIVABLES, NET | ||||||||
Cadence’s current and long-term receivables balances as of June 28, 2014 and December 28, 2013 were as follows: | ||||||||
As of | ||||||||
June 28, | December 28, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Accounts receivable | $ | 77,088 | $ | 76,057 | ||||
Unbilled accounts receivable | 24,836 | 31,567 | ||||||
Long-term receivables | 5,611 | 3,672 | ||||||
Total receivables | $ | 107,535 | $ | 111,296 | ||||
Less allowance for doubtful accounts | — | — | ||||||
Total receivables, net | $ | 107,535 | $ | 111,296 | ||||
Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of June 28, 2014 and December 28, 2013, no single customer accounted for 10% of Cadence’s total receivables. As of June 28, 2014, approximately 50% of Cadence’s total receivables were attributable to the ten customers with the largest balances of total receivables. As of December 28, 2013, approximately 47% of Cadence’s total receivables were attributable to the ten customers with the largest balances of total receivables. |
Fair_Value
Fair Value | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE | ' | |||||||||||||||
FAIR VALUE | ||||||||||||||||
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy: | ||||||||||||||||
• | Level 1 – Quoted prices for identical instruments in active markets; | |||||||||||||||
• | Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |||||||||||||||
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||||
This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three and six months ended June 28, 2014. | ||||||||||||||||
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 June 28, 2014 and December 28, 2013: | ||||||||||||||||
Fair Value Measurements as of June 28, 2014: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 357,616 | $ | 357,616 | $ | — | $ | — | ||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | 36,625 | — | 36,625 | — | ||||||||||||
Bank certificates of deposit | 24,259 | — | 24,259 | — | ||||||||||||
United States Treasury securities | 19,310 | 19,310 | — | — | ||||||||||||
United States government agency securities | 11,361 | 11,361 | — | — | ||||||||||||
Commercial paper | 1,995 | — | 1,995 | — | ||||||||||||
Marketable equity securities | 4,360 | 4,360 | — | — | ||||||||||||
Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust | 25,070 | 25,070 | — | — | ||||||||||||
2015 Notes Hedges | 455,844 | — | 455,844 | — | ||||||||||||
Foreign currency exchange contracts | 471 | — | 471 | — | ||||||||||||
Total Assets | $ | 936,911 | $ | 417,717 | $ | 519,194 | $ | — | ||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Acquisition-related contingent consideration | $ | 1,850 | $ | — | $ | — | $ | 1,850 | ||||||||
2015 Notes Embedded Conversion Derivative | 455,844 | — | 455,844 | — | ||||||||||||
Total Liabilities | $ | 457,694 | $ | — | $ | 455,844 | $ | 1,850 | ||||||||
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 in 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 | ||||||||
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 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 a discount rate of 11% to value its contingent consideration liabilities as of June 28, 2014 and December 28, 2013. Cadence believes that its estimates and assumptions are reasonable, but significant judgment is involved. | ||||||||||||||||
Changes in the fair value of contingent consideration liabilities subsequent to the acquisition are recorded in general and administrative expense in the condensed consolidated income statements. | ||||||||||||||||
The following table summarizes the level 3 activity for the six months ended June 28, 2014: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 28, 2013 | $ | 4,091 | ||||||||||||||
Payments | (2,329 | ) | ||||||||||||||
Adjustments | 88 | |||||||||||||||
Balance as of June 28, 2014 | $ | 1,850 | ||||||||||||||
Cadence acquired intangible assets, including in-process technology, of $93.0 million in connection with its acquisition of Jasper. The fair value of the intangible assets acquired was determined using the income approach and using level 3 inputs. Key assumptions include the level and timing of expected future cash flows, conditions and demands specific to IP solutions, discount rates consistent with the level of risk and the economy in general. The fair value of these intangible assets was affected most significantly by the projected income associated with the intangible assets and the anticipated timing of the projected income, but was also impacted by the discount rate used to adjust the outcomes to their present values. Cadence used discount rates ranging from 13% to 17% to value the intangible assets acquired. | ||||||||||||||||
As part of the Jasper acquisition, Cadence also assumed obligations related to deferred revenue of $11.9 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 fulfill the contracted obligations plus an assumed profit of 25%. The total costs including the assumed profit were adjusted to present value using a discount rate of approximately 3.25%. The resulting fair value approximates the amount that Cadence would be required to pay a third party to assume the obligation. The fair value of the deferred revenue obligation was affected most significantly by the estimated costs required to support the obligation, but was also affected by the assumed profit and the discount rate. | ||||||||||||||||
Cadence believes that its estimates and assumptions related to the fair value of its acquired intangible assets and deferred revenue obligations are reasonable, but significant judgment is involved. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
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 June 28, 2014 and December 28, 2013 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 557,416 | $ | 536,260 | ||||||||||||
Short-term investments | 97,910 | 96,788 | ||||||||||||||
Cash, cash equivalents and short-term investments | $ | 655,326 | $ | 633,048 | ||||||||||||
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 June 28, 2014 and December 28, 2013: | ||||||||||||||||
As of | ||||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and interest bearing deposits | $ | 199,800 | $ | 188,088 | ||||||||||||
Money market funds | 357,616 | 345,872 | ||||||||||||||
Bank certificates of deposit | — | 2,300 | ||||||||||||||
Total cash and cash equivalents | $ | 557,416 | $ | 536,260 | ||||||||||||
Short-Term Investments | ||||||||||||||||
The following tables summarize Cadence’s short-term investments as of June 28, 2014 and December 28, 2013: | ||||||||||||||||
As of June 28, 2014 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 36,615 | $ | 23 | $ | (13 | ) | $ | 36,625 | |||||||
Bank certificates of deposit | 24,249 | 10 | — | 24,259 | ||||||||||||
United States Treasury securities | 19,273 | 37 | — | 19,310 | ||||||||||||
United States government agency securities | 11,352 | 10 | (1 | ) | 11,361 | |||||||||||
Commercial paper | 1,994 | 1 | — | 1,995 | ||||||||||||
Marketable debt securities | 93,483 | 81 | (14 | ) | 93,550 | |||||||||||
Marketable equity securities | 3,485 | 875 | — | 4,360 | ||||||||||||
Total short-term investments | $ | 96,968 | $ | 956 | $ | (14 | ) | $ | 97,910 | |||||||
As of December 28, 2013 | ||||||||||||||||
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 June 28, 2014, no securities held by Cadence had been in an unrealized loss position for greater than two months. | ||||||||||||||||
The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of June 28, 2014, 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 | $ | 45,019 | $ | 45,057 | ||||||||||||
Due in one to three years | 48,464 | 48,493 | ||||||||||||||
Total marketable debt securities included in short-term investments | $ | 93,483 | $ | 93,550 | ||||||||||||
Realized gains and losses from the sale of marketable debt and equity securities are recorded in other income, net in the condensed 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 condensed consolidated balance sheets. If Cadence determines that it has the ability to exercise significant influence over the issuer, which may include considering whether the investments are in-substance common stock, the investment is accounted for using the equity method. | ||||||||||||||||
Cadence records in the condensed consolidated income statements as other income, net, realized gains and losses on non-marketable investments, write downs related to cost method investments due to other-than-temporary declines in value, and the 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 June 28, 2014 and December 28, 2013 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cost method | $ | 3,038 | $ | 3,038 | ||||||||||||
Equity method | 5,570 | 3,639 | ||||||||||||||
Total non-marketable investments | $ | 8,608 | $ | 6,677 | ||||||||||||
Restructuring_and_Other_Charge
Restructuring and Other Charges Restructuring and Other Charges | 6 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
RESTRUCTURING AND OTHER CHARGES | ' | |||||||||||
RESTRUCTURING AND OTHER CHARGES | ||||||||||||
Cadence has initiated various restructuring plans in the past, most recently in fiscal 2013, in an effort to operate more efficiently. These restructuring plans were primarily comprised of severance and termination benefits related to headcount reductions and estimated lease losses related to facilities vacated under the restructuring plans. | ||||||||||||
The remaining accrual for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: | ||||||||||||
As of | ||||||||||||
June 28, 2014 | ||||||||||||
(In thousands) | ||||||||||||
Accounts payable and accrued liabilities | $ | 2,151 | ||||||||||
Other long-term liabilities | 2,635 | |||||||||||
Total accrued as of June 28, 2014 | $ | 4,786 | ||||||||||
The following table presents activity relating to Cadence’s restructuring plans during the six months ended June 28, 2014: | ||||||||||||
Severance | Excess | Total | ||||||||||
and | Facilities | |||||||||||
Benefits | ||||||||||||
(In thousands) | ||||||||||||
Balance, December 28, 2013 | $ | 10,672 | $ | 3,552 | $ | 14,224 | ||||||
Restructuring and other charges, net | 168 | 202 | 370 | |||||||||
Cash payments | (9,338 | ) | (497 | ) | (9,835 | ) | ||||||
Effect of foreign currency translation | 5 | 22 | 27 | |||||||||
Balance, June 28, 2014 | $ | 1,507 | $ | 3,279 | $ | 4,786 | ||||||
Net_Income_per_Share
Net Income per Share | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
NET INCOME PER SHARE | ' | |||||||||||||||
NET INCOME PER SHARE | ||||||||||||||||
Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting. | ||||||||||||||||
The calculations for basic and diluted net income per share for the three and six months ended June 28, 2014 and June 29, 2013 are as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net income | $ | 23,263 | $ | 9,429 | $ | 56,333 | $ | 88,038 | ||||||||
Weighted average common shares used to calculate basic net income per share | 283,344 | 277,146 | 282,480 | 276,018 | ||||||||||||
Convertible notes | — | 11 | — | 11 | ||||||||||||
2015 Warrants | 15,054 | 10,871 | 13,815 | 10,770 | ||||||||||||
Stock-based awards | 7,357 | 6,415 | 7,100 | 6,475 | ||||||||||||
Weighted average common shares used to calculate diluted net income per share | 305,755 | 294,443 | 303,395 | 293,274 | ||||||||||||
Net income per share - basic | $ | 0.08 | $ | 0.03 | $ | 0.2 | $ | 0.32 | ||||||||
Net income per share - diluted | $ | 0.08 | $ | 0.03 | $ | 0.19 | $ | 0.3 | ||||||||
The following table presents shares of Cadence’s common stock outstanding for the three and six months ended June 28, 2014 and June 29, 2013 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
2013 Warrants | — | 6,830 | — | 6,830 | ||||||||||||
Options to purchase shares of common stock | 4,399 | 5,752 | 4,517 | 6,253 | ||||||||||||
Non-vested shares of restricted stock | 8 | 18 | 9 | 9 | ||||||||||||
Total potential common shares excluded | 4,407 | 12,600 | 4,526 | 13,092 | ||||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 6 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||
OTHER COMPREHENSIVE INCOME | ' | |||||||
OTHER COMPREHENSIVE INCOME | ||||||||
Cadence’s other comprehensive income is comprised of foreign currency translation gains and losses, changes in defined benefit plan liabilities, and changes in unrealized holding gains and losses on available-for-sale securities, net of reclassifications for realized gains and losses, as presented in Cadence’s condensed consolidated statements of comprehensive income. | ||||||||
Accumulated other comprehensive income was comprised of the following as of June 28, 2014, and December 28, 2013: | ||||||||
As of | ||||||||
June 28, | December 28, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Foreign currency translation gain | $ | 34,011 | $ | 27,183 | ||||
Changes in defined benefit plan liabilities | (2,831 | ) | (3,218 | ) | ||||
Unrealized holding gains on available-for-sale securities | 941 | 346 | ||||||
Total accumulated other comprehensive income | $ | 32,121 | $ | 24,311 | ||||
For the three and six months ended June 28, 2014 and June 29, 2013 there were no significant amounts reclassified from accumulated other comprehensive income to net income. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
CONTINGENCIES | |
Legal Proceedings | |
From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and lawsuits related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, distribution arrangements and employee relations matters. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates. | |
Other Contingencies | |
Cadence provides its customers with a warranty on sales of emulation hardware products, generally for a 90-day period. Cadence did not incur any significant costs related to warranty obligations during the three and six months ended June 28, 2014 or June 29, 2013. | |
Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s intellectual property. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. The indemnification is generally limited to the amount paid by the customer. Cadence did not incur any significant losses from indemnification claims during the three and six months ended June 28, 2014 or June 29, 2013. |
Other_Income_Net
Other Income, Net | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
OTHER INCOME, NET | ' | |||||||||||||||
OTHER INCOME, NET | ||||||||||||||||
Cadence’s other income, net for the three and six months ended June 28, 2014 and June 29, 2013 was as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Interest income | $ | 498 | $ | 484 | $ | 983 | $ | 909 | ||||||||
Gains (losses) on non-marketable investments, net | 406 | (229 | ) | 1,952 | 649 | |||||||||||
Gains on securities in NQDC trust | 1,047 | 1,699 | 3,109 | 1,851 | ||||||||||||
Gains (losses) on foreign exchange | (368 | ) | 223 | (1,169 | ) | 987 | ||||||||||
Other income (expense), net | 52 | (159 | ) | 142 | (203 | ) | ||||||||||
Total other income, net | $ | 1,635 | $ | 2,018 | $ | 5,017 | $ | 4,193 | ||||||||
Segment_Reporting
Segment Reporting | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||
SEGMENT REPORTING | ||||||||||||||||
Segment reporting is based on the “management approach,” following the method that management organizes the company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. Cadence’s chief operating decision maker is its President and Chief Executive Officer, or CEO, who reviews Cadence’s consolidated results as one reportable segment. In making operating decisions, the CEO primarily considers consolidated financial information, accompanied by disaggregated information about revenues by geographic region. | ||||||||||||||||
Outside the United States, Cadence markets and supports its products and services primarily through its subsidiaries. Revenue is attributed to geography based upon the country in which the product is used or services are delivered. Long-lived assets are attributed to geography based on the country where the assets are located. | ||||||||||||||||
The following table presents a summary of revenue by geography for the three and six months ended June 28, 2014 and June 29, 2013: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Americas: | ||||||||||||||||
United States | $ | 161,874 | $ | 159,229 | $ | 325,202 | $ | 308,400 | ||||||||
Other Americas | 6,050 | 5,566 | 11,834 | 10,181 | ||||||||||||
Total Americas | 167,924 | 164,795 | 337,036 | 318,581 | ||||||||||||
Asia | 88,286 | 74,462 | 175,302 | 142,548 | ||||||||||||
Europe, Middle East and Africa | 82,074 | 77,757 | 159,606 | 156,677 | ||||||||||||
Japan | 40,504 | 45,467 | 85,394 | 98,941 | ||||||||||||
Total | $ | 378,788 | $ | 362,481 | $ | 757,338 | $ | 716,747 | ||||||||
The following table presents a summary of long-lived assets by geography as of June 28, 2014 and December 28, 2013: | ||||||||||||||||
As of | ||||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Americas: | ||||||||||||||||
United States | $ | 209,533 | $ | 207,694 | ||||||||||||
Other Americas | 250 | 294 | ||||||||||||||
Total Americas | 209,783 | 207,988 | ||||||||||||||
Asia | 22,591 | 23,508 | ||||||||||||||
Europe, Middle East and Africa | 6,085 | 6,326 | ||||||||||||||
Japan | 855 | 893 | ||||||||||||||
Total | $ | 239,314 | $ | 238,715 | ||||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended | |
Jun. 28, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation | ' | |
Preparation of the condensed consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||
Fair Value of Financial Instruments | ' | |
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy: | ||
• | Level 1 – Quoted prices for identical instruments in active markets; | |
• | Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |
This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three and six months ended June 28, 2014. | ||
Contingencies | ' | |
At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates. | ||
Non-Marketable Investments | ' | |
Cadence’s non-marketable investments generally consist of voting preferred stock or convertible debt of privately held companies and are included in other assets on Cadence’s condensed consolidated balance sheets. If Cadence determines that it has the ability to exercise significant influence over the issuer, which may include considering whether the investments are in-substance common stock, the investment is accounted for using the equity method. |
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Summary of debt outstanding | ' | |||||||||||||||||||||||
Cadence’s outstanding debt as of June 28, 2014 and December 28, 2013 was as follows: | ||||||||||||||||||||||||
28-Jun-14 | December 28, 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Principal | Unamortized Discount | Carrying Value | Principal | Unamortized Discount | Carrying Value | |||||||||||||||||||
2015 Notes | $ | 350,000 | $ | (16,667 | ) | $ | 333,333 | $ | 350,000 | $ | (25,174 | ) | $ | 324,826 | ||||||||||
Revolving credit facility | 100,000 | — | 100,000 | — | — | — | ||||||||||||||||||
Total outstanding debt | $ | 450,000 | $ | (16,667 | ) | $ | 433,333 | $ | 350,000 | $ | (25,174 | ) | $ | 324,826 | ||||||||||
Summary of key terms of 2015 notes | ' | |||||||||||||||||||||||
A summary of key terms of the 2015 Notes is as follows: | ||||||||||||||||||||||||
2015 Notes | ||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||
Outstanding principal maturity value – at June 28, 2014 | $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 the three and six months ended June 28, 2014 and June 29, 2013 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Effective interest rate | 8.1 | % | 8.1 | % | 8.1 | % | 8.1 | % | ||||||||||||||||
Contractual interest expense | $ | 2,289 | $ | 2,289 | $ | 4,578 | $ | 4,578 | ||||||||||||||||
Amortization of debt discount | $ | 4,275 | $ | 3,951 | $ | 8,507 | $ | 7,861 | ||||||||||||||||
Acquisitions_and_Acquisition_R
Acquisitions and Acquisition Related Contingent Consideration (Tables) | 6 Months Ended | |||
Jun. 28, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of identified assets acquired and liabilities assumed | ' | |||
The following table summarizes the fair value of assets acquired and liabilities assumed in the acquisition of Jasper: | ||||
(In thousands) | ||||
Cash and cash equivalents | $ | 28,678 | ||
Property, plant and equipment | 520 | |||
Other assets | 4,362 | |||
Acquired intangibles: | ||||
Existing technology | 68,200 | |||
Agreements and relationships | 13,600 | |||
Tradenames and trademarks | 900 | |||
In-process technology | 10,300 | |||
Goodwill | 81,269 | |||
Total assets acquired | $ | 207,829 | ||
Deferred revenue | (11,900 | ) | ||
Other liabilities | (7,719 | ) | ||
Long-term deferred tax liabilities | (20,002 | ) | ||
Net assets acquired | $ | 168,208 | ||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangibles (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Changes in the carrying amount of goodwill | ' | |||||||||||||||
The changes in the carrying amount of goodwill during the six months ended June 28, 2014 were as follows: | ||||||||||||||||
Gross Carrying | ||||||||||||||||
Amount | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 28, 2013 | $ | 456,905 | ||||||||||||||
Goodwill resulting from acquisitions | 102,025 | |||||||||||||||
Measurement period adjustments | (436 | ) | ||||||||||||||
Effect of foreign currency translation | 1,463 | |||||||||||||||
Balance as of June 28, 2014 | $ | 559,957 | ||||||||||||||
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill) | ' | |||||||||||||||
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) | ||||||||||||||||
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 | |||||||||
Acquired intangibles as of June 28, 2014 were as follows, excluding intangibles that were fully amortized as of December 28, 2013: | ||||||||||||||||
Gross Carrying | Accumulated | Acquired | ||||||||||||||
Amount | Amortization | Intangibles, Net | ||||||||||||||
(In thousands) | ||||||||||||||||
Existing technology | $ | 319,593 | $ | (65,059 | ) | $ | 254,534 | |||||||||
Agreements and relationships | 175,499 | (53,159 | ) | 122,340 | ||||||||||||
Tradenames, trademarks and patents | 10,619 | (3,579 | ) | 7,040 | ||||||||||||
Total acquired intangibles with definite lives | 505,711 | (121,797 | ) | 383,914 | ||||||||||||
In-process technology | 11,516 | — | 11,516 | |||||||||||||
Total acquired intangibles | $ | 517,227 | $ | (121,797 | ) | $ | 395,430 | |||||||||
Amortization of acquired intangibles | ' | |||||||||||||||
Amortization of acquired intangibles for the three and six months ended June 28, 2014 and June 29, 2013 was as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of product and maintenance | $ | 8,613 | $ | 5,760 | $ | 16,189 | $ | 9,567 | ||||||||
Amortization of acquired intangibles | 5,579 | 5,327 | 10,789 | 9,118 | ||||||||||||
Total amortization of acquired intangibles | $ | 14,192 | $ | 11,087 | $ | 26,978 | $ | 18,685 | ||||||||
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 – remaining period | $ | 32,522 | ||||||||||||||
2015 | 63,522 | |||||||||||||||
2016 | 56,646 | |||||||||||||||
2017 | 51,695 | |||||||||||||||
2018 | 48,059 | |||||||||||||||
Thereafter | 131,470 | |||||||||||||||
Total estimated amortization expense | $ | 383,914 | ||||||||||||||
Receivables_net_Tables
Receivables, net (Tables) | 6 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Current and long-term accounts receivable balances | ' | |||||||
Cadence’s current and long-term receivables balances as of June 28, 2014 and December 28, 2013 were as follows: | ||||||||
As of | ||||||||
June 28, | December 28, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Accounts receivable | $ | 77,088 | $ | 76,057 | ||||
Unbilled accounts receivable | 24,836 | 31,567 | ||||||
Long-term receivables | 5,611 | 3,672 | ||||||
Total receivables | $ | 107,535 | $ | 111,296 | ||||
Less allowance for doubtful accounts | — | — | ||||||
Total receivables, net | $ | 107,535 | $ | 111,296 | ||||
Fair_Value_Tables
Fair Value (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value of financial assets and liabilities | ' | |||||||||||||||
The fair value of financial assets and liabilities was determined using the following levels of inputs as of June 28, 2014 and December 28, 2013: | ||||||||||||||||
Fair Value Measurements as of June 28, 2014: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 357,616 | $ | 357,616 | $ | — | $ | — | ||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | 36,625 | — | 36,625 | — | ||||||||||||
Bank certificates of deposit | 24,259 | — | 24,259 | — | ||||||||||||
United States Treasury securities | 19,310 | 19,310 | — | — | ||||||||||||
United States government agency securities | 11,361 | 11,361 | — | — | ||||||||||||
Commercial paper | 1,995 | — | 1,995 | — | ||||||||||||
Marketable equity securities | 4,360 | 4,360 | — | — | ||||||||||||
Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust | 25,070 | 25,070 | — | — | ||||||||||||
2015 Notes Hedges | 455,844 | — | 455,844 | — | ||||||||||||
Foreign currency exchange contracts | 471 | — | 471 | — | ||||||||||||
Total Assets | $ | 936,911 | $ | 417,717 | $ | 519,194 | $ | — | ||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Acquisition-related contingent consideration | $ | 1,850 | $ | — | $ | — | $ | 1,850 | ||||||||
2015 Notes Embedded Conversion Derivative | 455,844 | — | 455,844 | — | ||||||||||||
Total Liabilities | $ | 457,694 | $ | — | $ | 455,844 | $ | 1,850 | ||||||||
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 in 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 | ||||||||
Liabilities included in level 3 representing fair value of contingent consideration associated with acquisitions | ' | |||||||||||||||
The following table summarizes the level 3 activity for the six months ended June 28, 2014: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 28, 2013 | $ | 4,091 | ||||||||||||||
Payments | (2,329 | ) | ||||||||||||||
Adjustments | 88 | |||||||||||||||
Balance as of June 28, 2014 | $ | 1,850 | ||||||||||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
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 June 28, 2014 and December 28, 2013 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 557,416 | $ | 536,260 | ||||||||||||
Short-term investments | 97,910 | 96,788 | ||||||||||||||
Cash, cash equivalents and short-term investments | $ | 655,326 | $ | 633,048 | ||||||||||||
Summary of cash and cash equivalents | ' | |||||||||||||||
The following table summarizes Cadence’s cash and cash equivalents at fair value as of June 28, 2014 and December 28, 2013: | ||||||||||||||||
As of | ||||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cash and interest bearing deposits | $ | 199,800 | $ | 188,088 | ||||||||||||
Money market funds | 357,616 | 345,872 | ||||||||||||||
Bank certificates of deposit | — | 2,300 | ||||||||||||||
Total cash and cash equivalents | $ | 557,416 | $ | 536,260 | ||||||||||||
Summary of short-term investments | ' | |||||||||||||||
The following tables summarize Cadence’s short-term investments as of June 28, 2014 and December 28, 2013: | ||||||||||||||||
As of June 28, 2014 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 36,615 | $ | 23 | $ | (13 | ) | $ | 36,625 | |||||||
Bank certificates of deposit | 24,249 | 10 | — | 24,259 | ||||||||||||
United States Treasury securities | 19,273 | 37 | — | 19,310 | ||||||||||||
United States government agency securities | 11,352 | 10 | (1 | ) | 11,361 | |||||||||||
Commercial paper | 1,994 | 1 | — | 1,995 | ||||||||||||
Marketable debt securities | 93,483 | 81 | (14 | ) | 93,550 | |||||||||||
Marketable equity securities | 3,485 | 875 | — | 4,360 | ||||||||||||
Total short-term investments | $ | 96,968 | $ | 956 | $ | (14 | ) | $ | 97,910 | |||||||
As of December 28, 2013 | ||||||||||||||||
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 | |||||||
Contractual maturity of marketable debt investments | ' | |||||||||||||||
The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of June 28, 2014, 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 | $ | 45,019 | $ | 45,057 | ||||||||||||
Due in one to three years | 48,464 | 48,493 | ||||||||||||||
Total marketable debt securities included in short-term investments | $ | 93,483 | $ | 93,550 | ||||||||||||
Carrying value of non-marketable securities | ' | |||||||||||||||
Cadence’s non-marketable investments as of June 28, 2014 and December 28, 2013 were as follows: | ||||||||||||||||
As of | ||||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Cost method | $ | 3,038 | $ | 3,038 | ||||||||||||
Equity method | 5,570 | 3,639 | ||||||||||||||
Total non-marketable investments | $ | 8,608 | $ | 6,677 | ||||||||||||
Restructuring_and_Other_Charge1
Restructuring and Other Charges (Tables) | 6 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Amount accrued for restructuring plans | ' | |||||||||||
The remaining accrual for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: | ||||||||||||
As of | ||||||||||||
June 28, 2014 | ||||||||||||
(In thousands) | ||||||||||||
Accounts payable and accrued liabilities | $ | 2,151 | ||||||||||
Other long-term liabilities | 2,635 | |||||||||||
Total accrued as of June 28, 2014 | $ | 4,786 | ||||||||||
Restructuring plan activities | ' | |||||||||||
The following table presents activity relating to Cadence’s restructuring plans during the six months ended June 28, 2014: | ||||||||||||
Severance | Excess | Total | ||||||||||
and | Facilities | |||||||||||
Benefits | ||||||||||||
(In thousands) | ||||||||||||
Balance, December 28, 2013 | $ | 10,672 | $ | 3,552 | $ | 14,224 | ||||||
Restructuring and other charges, net | 168 | 202 | 370 | |||||||||
Cash payments | (9,338 | ) | (497 | ) | (9,835 | ) | ||||||
Effect of foreign currency translation | 5 | 22 | 27 | |||||||||
Balance, June 28, 2014 | $ | 1,507 | $ | 3,279 | $ | 4,786 | ||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Basic and diluted net income per share | ' | |||||||||||||||
The calculations for basic and diluted net income per share for the three and six months ended June 28, 2014 and June 29, 2013 are as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net income | $ | 23,263 | $ | 9,429 | $ | 56,333 | $ | 88,038 | ||||||||
Weighted average common shares used to calculate basic net income per share | 283,344 | 277,146 | 282,480 | 276,018 | ||||||||||||
Convertible notes | — | 11 | — | 11 | ||||||||||||
2015 Warrants | 15,054 | 10,871 | 13,815 | 10,770 | ||||||||||||
Stock-based awards | 7,357 | 6,415 | 7,100 | 6,475 | ||||||||||||
Weighted average common shares used to calculate diluted net income per share | 305,755 | 294,443 | 303,395 | 293,274 | ||||||||||||
Net income per share - basic | $ | 0.08 | $ | 0.03 | $ | 0.2 | $ | 0.32 | ||||||||
Net income per share - diluted | $ | 0.08 | $ | 0.03 | $ | 0.19 | $ | 0.3 | ||||||||
Potential shares of Cadence's common stock excluded | ' | |||||||||||||||
The following table presents shares of Cadence’s common stock outstanding for the three and six months ended June 28, 2014 and June 29, 2013 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
2013 Warrants | — | 6,830 | — | 6,830 | ||||||||||||
Options to purchase shares of common stock | 4,399 | 5,752 | 4,517 | 6,253 | ||||||||||||
Non-vested shares of restricted stock | 8 | 18 | 9 | 9 | ||||||||||||
Total potential common shares excluded | 4,407 | 12,600 | 4,526 | 13,092 | ||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 6 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
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 June 28, 2014, and December 28, 2013: | ||||||||
As of | ||||||||
June 28, | December 28, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Foreign currency translation gain | $ | 34,011 | $ | 27,183 | ||||
Changes in defined benefit plan liabilities | (2,831 | ) | (3,218 | ) | ||||
Unrealized holding gains on available-for-sale securities | 941 | 346 | ||||||
Total accumulated other comprehensive income | $ | 32,121 | $ | 24,311 | ||||
Other_Income_Net_Tables
Other Income, Net (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Income, Net | ' | |||||||||||||||
Cadence’s other income, net for the three and six months ended June 28, 2014 and June 29, 2013 was as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Interest income | $ | 498 | $ | 484 | $ | 983 | $ | 909 | ||||||||
Gains (losses) on non-marketable investments, net | 406 | (229 | ) | 1,952 | 649 | |||||||||||
Gains on securities in NQDC trust | 1,047 | 1,699 | 3,109 | 1,851 | ||||||||||||
Gains (losses) on foreign exchange | (368 | ) | 223 | (1,169 | ) | 987 | ||||||||||
Other income (expense), net | 52 | (159 | ) | 142 | (203 | ) | ||||||||||
Total other income, net | $ | 1,635 | $ | 2,018 | $ | 5,017 | $ | 4,193 | ||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Summary of revenue by geography | ' | |||||||||||||||
The following table presents a summary of revenue by geography for the three and six months ended June 28, 2014 and June 29, 2013: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Americas: | ||||||||||||||||
United States | $ | 161,874 | $ | 159,229 | $ | 325,202 | $ | 308,400 | ||||||||
Other Americas | 6,050 | 5,566 | 11,834 | 10,181 | ||||||||||||
Total Americas | 167,924 | 164,795 | 337,036 | 318,581 | ||||||||||||
Asia | 88,286 | 74,462 | 175,302 | 142,548 | ||||||||||||
Europe, Middle East and Africa | 82,074 | 77,757 | 159,606 | 156,677 | ||||||||||||
Japan | 40,504 | 45,467 | 85,394 | 98,941 | ||||||||||||
Total | $ | 378,788 | $ | 362,481 | $ | 757,338 | $ | 716,747 | ||||||||
Summary of long-lived assets by geography | ' | |||||||||||||||
The following table presents a summary of long-lived assets by geography as of June 28, 2014 and December 28, 2013: | ||||||||||||||||
As of | ||||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Americas: | ||||||||||||||||
United States | $ | 209,533 | $ | 207,694 | ||||||||||||
Other Americas | 250 | 294 | ||||||||||||||
Total Americas | 209,783 | 207,988 | ||||||||||||||
Asia | 22,591 | 23,508 | ||||||||||||||
Europe, Middle East and Africa | 6,085 | 6,326 | ||||||||||||||
Japan | 855 | 893 | ||||||||||||||
Total | $ | 239,314 | $ | 238,715 | ||||||||||||
Debt_Details
Debt (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Principal | $450,000 | $350,000 |
Unamortized debt discount | -16,667 | -25,174 |
Carrying value | 100,000 | 0 |
Carrying value | 433,333 | 324,826 |
Convertible Senior Notes Due 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal | 350,000 | 350,000 |
Unamortized debt discount | -16,667 | -25,174 |
Carrying value | 333,333 | 324,826 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal | 100,000 | 0 |
Unamortized debt discount | 0 | 0 |
Carrying value | $100,000 | $0 |
Debt_Details_1
Debt (Details 1) (Convertible Senior Notes Due Twenty-Fifteen [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Convertible Senior Notes Due Twenty-Fifteen [Member] | ' | ' | ' | ' |
Effective interest rate and components of interest expense of 2015 notes | ' | ' | ' | ' |
Effective interest rate | 8.10% | 8.10% | 8.10% | 8.10% |
Contractual interest expense | $2,289 | $2,289 | $4,578 | $4,578 |
Amortization of debt discount | $4,275 | $3,951 | $8,507 | $7,861 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2010 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Dec. 28, 2013 | |
Convertible Notes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Net current liability of convertible senior notes | ' | $333,333,000 | ' | $333,333,000 | ' | $324,826,000 |
Convertible Senior Notes Due 2015 [Member] | ' | ' | ' | ' | ' | ' |
Convertible Notes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Principal amount, issued | 350,000,000 | ' | ' | ' | ' | ' |
Principal amount outstanding | ' | 350,000,000 | ' | 350,000,000 | ' | 350,000,000 |
Stated interest rate of convertible senior notes | ' | 2.63% | ' | 2.63% | ' | ' |
Maturity date of convertible senior notes | ' | ' | ' | 1-Jun-15 | ' | ' |
Warrants to purchase shares of common stock price per share (in usd per share) | ' | ' | ' | $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 | ' | ' | ' | 19,000,000 | ' | ' |
Unamortized debt discount expensed if convertible notes are converted | ' | ' | ' | 16,700,000 | ' | ' |
Unamortized transaction fees expensed if convertible notes are converted | ' | ' | ' | 2,300,000 | ' | ' |
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 | ' | $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 2015 notes holder would be entitled to an increase to the conversion rate. This is referred to as a “make-whole premium.†| ' | ' |
Minimum closing price of common stock to make whole premium in the form of increase to conversion rate (in usd per share) | ' | ' | ' | $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 | ' | 804,300,000 | ' | 804,300,000 | ' | ' |
Total estimated fair value | ' | 807,700,000 | ' | 807,700,000 | ' | 654,100,000 |
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 | ' | 455,800,000 | ' | 455,800,000 | ' | 306,800,000 |
Cost of 2015 Notes Hedges | 76,600,000 | ' | ' | ' | ' | ' |
Estimated fair value of 2015 Notes hedges at the balance sheet date | ' | 455,800,000 | ' | 455,800,000 | ' | 306,800,000 |
Impact on Income statement related to fair value adjustments of 2015 Notes Embedded Conversion Derivative and 2015 Notes Hedges | ' | 0 | 0 | 0 | 0 | ' |
Shares of common stock that can be purchased under warrants (in shares) | ' | ' | ' | 46,400,000 | ' | ' |
Amount received in cash proceeds from the sale of warrants | $37,500,000 | ' | ' | ' | ' | ' |
Notes Warrants expiration date description | ' | ' | ' | 'various dates from September 2015 through December 2015 | ' | ' |
Debt_Credit_Facility_Details_T
Debt Credit Facility (Details Textual) (USD $) | 6 Months Ended | |
Jun. 28, 2014 | Dec. 28, 2013 | |
Line of Credit Facility [Line Items] | ' | ' |
Revolving credit facility | $100,000,000 | $0 |
Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility, date of agreement | 12-Dec-12 | ' |
Credit facility, interest rate description | 'Interest accrues based on Cadence’s consolidated leverage ratio. Borrowings may be made at LIBOR plus a margin between 1.25% and 2.0% per annum or at a base rate plus a margin between 0.25% and 1.0% per annum, where in each case the margin is determined by reference to a specified leverage ratio. Interest is payable quarterly. | ' |
Credit facility, term | '5 years | ' |
Credit facility, current borrowing capacity | 250,000,000 | ' |
Credit facility additional borrowing capacity available | 150,000,000 | ' |
Credit facility, maximum borrowing capacity | 400,000,000 | ' |
Credit facility, maturity date | 12-Dec-17 | ' |
Credit facility, collateral description | 'The facility is secured by certain accounts receivable and certain equity interests in Cadence’s subsidiaries. | ' |
Credit facility, covenant description | 'The credit facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness, grant liens and make certain investments, make acquisitions, dispose of certain assets and make certain restricted payments, including dividends. In addition, the credit facility contains financial covenants that require Cadence to maintain a leverage ratio not to exceed 3 to 1, and a minimum interest coverage ratio of 3 to 1. | ' |
Credit facility, covenant compliance | 'Cadence was in compliance with all financial covenants as of June 28, 2014 and December 28, 2013. | ' |
Credit facility, interest rate at period end | 1.40% | ' |
Revolving credit facility | $100,000,000 | $0 |
Maximum [Member] | Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility, commitment fee percentage | 0.35% | ' |
Minimum [Member] | Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility, commitment fee percentage | 0.20% | ' |
Credit Facility Interest LIBOR and spread [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility, interest rate spread | 2.00% | ' |
Credit Facility Interest LIBOR and spread [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility, interest rate spread | 1.25% | ' |
Credit facility interest base rate and spread [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility, interest rate spread | 1.00% | ' |
Credit facility interest base rate and spread [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility, interest rate spread | 0.25% | ' |
Acquisition_and_AcquisitionRel
Acquisition and Acquisition-Related Contingent Consideration (Details) (Jasper [Member], USD $) | Jun. 13, 2014 |
In Thousands, unless otherwise specified | |
Business Acquisition [Line Items] | ' |
Cash and cash equivalents | $28,678 |
Property, plant and equipment | 520 |
Other assets | 4,362 |
In-process technology | 10,300 |
Goodwill | 81,269 |
Total assets acquired | 207,829 |
Deferred revenue | -11,900 |
Other liabilities | -7,719 |
Long-term deferred tax liabilities | -20,002 |
Net assets acquired | 168,208 |
Existing technology [Member] | ' |
Business Acquisition [Line Items] | ' |
Acquired finite-lived intangibles: | 68,200 |
Agreements and relationships [Member] | ' |
Business Acquisition [Line Items] | ' |
Acquired finite-lived intangibles: | 13,600 |
Tradenames and trademarks [Member] | ' |
Business Acquisition [Line Items] | ' |
Acquired finite-lived intangibles: | $900 |
Acquisitions_and_AcquisitionRe1
Acquisitions and Acquisition-Related Contingent Consideration (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 13, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | |
Jasper [Member] | 2014 Acquisitions [Member] | 2014 Acquisitions [Member] | |||||
acquisition | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition Purchase Current Assets Cash and Cash Equivalents of Acquired Entity | ' | ' | ' | ' | $28,700,000 | ' | ' |
Number of businesses acquired | ' | ' | ' | ' | ' | ' | 2 |
Total cash consideration paid, net of cash acquired | ' | ' | ' | ' | ' | ' | 27,500,000 |
Cash acquired | ' | ' | ' | ' | ' | ' | 2,100,000 |
Goodwill acquired during period | ' | ' | 102,025,000 | ' | ' | ' | 20,300,000 |
Finite-lived intangibles acquired during period | ' | ' | ' | ' | ' | ' | 16,900,000 |
Recognized identifiable assets acquired and liabilities assumed, net | ' | ' | ' | ' | ' | ' | -8,100,000 |
Acquired definite-lived intangible assets, weighted average useful life | ' | ' | ' | ' | ' | '8 years | ' |
Goodwill, expected tax deductible amount | ' | ' | ' | ' | ' | 2,823,000 | 2,823,000 |
Acquisition related costs | 2,700,000 | 4,800,000 | 3,700,000 | 8,200,000 | ' | ' | ' |
Business Acquisition Net Consideration Paid to Acquire Business Net of Cash Acquired | ' | ' | ' | ' | $139,500,000 | ' | ' |
Acquisitions_and_AcquisitionRe2
Acquisitions and Acquisition-Related Contingent Consideration (Details Textual 1) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 28, 2014 |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Maximum amount obligated to pay by Cadence | $11.80 |
Period over which Consideration May be Paid | '22 months |
Portion of amount of contingent consideration potential expense in future periods | $9.10 |
Goodwill_and_Acquired_Intangib2
Goodwill and Acquired Intangibles (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 28, 2014 |
Changes in the carrying amount of goodwill | ' |
Balance as of December 28, 2013 | $456,905 |
Goodwill resulting from acquisitions | 102,025 |
Measurement period adjustments | -436 |
Effect of foreign currency translation | 1,463 |
Balance as of June 28, 2014 | $559,957 |
Goodwill_and_Acquired_Intangib3
Goodwill and Acquired Intangibles (Details 1) (USD $) | 6 Months Ended | |
Jun. 28, 2014 | Dec. 28, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
In-process Technology Transferred to Existing Technology | $2,300,000 | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross carrying amount | 505,711,000 | 448,003,000 |
Accumulated amortization | -121,797,000 | -139,820,000 |
Acquired intangibles, net | 383,914,000 | 308,183,000 |
In-process technology | 11,516,000 | 3,510,000 |
Intangible assets, gross (excluding goodwill) | 517,227,000 | 451,513,000 |
Intangible assets, net (excluding goodwill) | 395,430,000 | 311,693,000 |
Existing Technology [Member] | ' | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross carrying amount | 319,593,000 | 237,624,000 |
Accumulated amortization | -65,059,000 | -53,243,000 |
Acquired intangibles, net | 254,534,000 | 184,381,000 |
Agreements and relationships [Member] | ' | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross carrying amount | 175,499,000 | 170,760,000 |
Accumulated amortization | -53,159,000 | -53,607,000 |
Acquired intangibles, net | 122,340,000 | 117,153,000 |
Distribution rights [Member] | ' | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross carrying amount | ' | 30,100,000 |
Accumulated amortization | ' | -30,100,000 |
Acquired intangibles, net | ' | 0 |
Tradenames Trademarks And Patents [Member] | ' | ' |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ' | ' |
Gross carrying amount | 10,619,000 | 9,519,000 |
Accumulated amortization | -3,579,000 | -2,870,000 |
Acquired intangibles, net | $7,040,000 | $6,649,000 |
Minimum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Expected completion of in-process technology | '3 months | ' |
Maximum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Expected completion of in-process technology | '15 months | ' |
Goodwill_and_Acquired_Intangib4
Goodwill and Acquired Intangibles (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Amortization of acquired intangibles | ' | ' | ' | ' |
Cost of product and maintenance | $8,613 | $5,760 | $16,189 | $9,567 |
Amortization of acquired intangibles | 5,579 | 5,327 | 10,789 | 9,118 |
Total amortization of acquired intangibles | $14,192 | $11,087 | $26,978 | $18,685 |
Goodwill_and_Acquired_Intangib5
Goodwill and Acquired Intangibles (Details 3) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Estimated amortization expense | ' | ' |
2014 – remaining period | $32,522 | ' |
2015 | 63,522 | ' |
2016 | 56,646 | ' |
2017 | 51,695 | ' |
2018 | 48,059 | ' |
Thereafter | 131,470 | ' |
Acquired intangibles, net | $383,914 | $308,183 |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax expense (benefit) | $6,500,000 | $28,203,000 | $11,856,000 | $643,000 |
Estimated increase in annual effective tax rate due to expiration of research tax credit | ' | ' | 3.00% | ' |
Tax benefit from release of uncertain tax position | ' | ' | ' | 33,700,000 |
Federal research tax credit research | ' | ' | ' | $5,900,000 |
Receivables_net_Details
Receivables, net (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current and long-term receivables balances | ' | ' |
Accounts receivable | $77,088 | $76,057 |
Unbilled accounts receivable | 24,836 | 31,567 |
Long-term receivables | 5,611 | 3,672 |
Total receivables | 107,535 | 111,296 |
Less allowance for doubtful accounts | 0 | 0 |
Total receivables, net | $107,535 | $111,296 |
Receivables_net_Details_Textua
Receivables, net (Details Textual) | Jun. 28, 2014 | Dec. 28, 2013 |
Customer | Customer | |
Accounts Receivable and Allowances for Doubtful Accounts (Textual) [Abstract] | ' | ' |
Percentage of receivables, net attributable to single customer | 10.00% | 10.00% |
Number of customers with receivables balance greater than ten percent of total balance | 0 | 0 |
Percentage of receivables, net attributable to the ten customers with largest balance | 50.00% | 47.00% |
Number of customers with largest balance of receivables | 10 | 10 |
Fair_Value_Details
Fair Value (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Short-term investments: | ' | ' |
Available-for-sale securities | $97,910 | $96,788 |
Trading securities held in Non - Qualified Deferred Compensation plan, or NQDC, trust | 25,070 | 23,960 |
2015 Notes Hedges | 455,844 | 306,817 |
Foreign currency exchange contracts | 471 | 262 |
Total Assets | 936,911 | 775,999 |
Liabilities | ' | ' |
Acquisition-related contingent consideration | 1,850 | 4,091 |
2015 Notes Embedded Conversion Derivative | 455,844 | 306,817 |
Total Liabilities | 457,694 | 310,908 |
Money market funds [Member] | ' | ' |
Assets | ' | ' |
Cash equivalents | 357,616 | 345,872 |
Corporate debt securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 36,625 | 37,441 |
Bank certificates of deposit [Member] | ' | ' |
Assets | ' | ' |
Cash equivalents | ' | 2,300 |
Short-term investments: | ' | ' |
Available-for-sale securities | 24,259 | 20,308 |
United States Treasury securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 19,310 | 24,246 |
United States government agency securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 11,361 | 10,223 |
Commercial paper [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 1,995 | 2,493 |
Marketable equity securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 4,360 | 2,077 |
Fair Value Measurements, Level 1 [Member] | ' | ' |
Short-term investments: | ' | ' |
Trading securities held in Non - Qualified Deferred Compensation plan, or NQDC, trust | 25,070 | 23,960 |
2015 Notes Hedges | 0 | 0 |
Foreign currency exchange contracts | 0 | 0 |
Total Assets | 417,717 | 406,378 |
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 | 357,616 | 345,872 |
Fair Value Measurements, Level 1 [Member] | Corporate debt securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 1 [Member] | Bank certificates of deposit [Member] | ' | ' |
Assets | ' | ' |
Cash equivalents | ' | 0 |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 1 [Member] | United States Treasury securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 19,310 | 24,246 |
Fair Value Measurements, Level 1 [Member] | United States government agency securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 11,361 | 10,223 |
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 | 4,360 | 2,077 |
Fair Value Measurements, Level 2 [Member] | ' | ' |
Short-term investments: | ' | ' |
Trading securities held in Non - Qualified Deferred Compensation plan, or NQDC, trust | 0 | 0 |
2015 Notes Hedges | 455,844 | 306,817 |
Foreign currency exchange contracts | 471 | 262 |
Total Assets | 519,194 | 369,621 |
Liabilities | ' | ' |
Acquisition-related contingent consideration | 0 | 0 |
2015 Notes Embedded Conversion Derivative | 455,844 | 306,817 |
Total Liabilities | 455,844 | 306,817 |
Fair Value Measurements, Level 2 [Member] | Money market funds [Member] | ' | ' |
Assets | ' | ' |
Cash equivalents | 0 | 0 |
Fair Value Measurements, Level 2 [Member] | Corporate debt securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 36,625 | 37,441 |
Fair Value Measurements, Level 2 [Member] | Bank certificates of deposit [Member] | ' | ' |
Assets | ' | ' |
Cash equivalents | ' | 2,300 |
Short-term investments: | ' | ' |
Available-for-sale securities | 24,259 | 20,308 |
Fair Value Measurements, Level 2 [Member] | United States Treasury securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 2 [Member] | United States government agency securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 2 [Member] | Commercial paper [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 1,995 | 2,493 |
Fair Value Measurements, Level 2 [Member] | Marketable equity securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | ' | ' |
Short-term investments: | ' | ' |
Trading securities held in Non - Qualified Deferred Compensation plan, or NQDC, trust | 0 | 0 |
2015 Notes Hedges | 0 | 0 |
Foreign currency exchange contracts | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities | ' | ' |
Acquisition-related contingent consideration | 1,850 | 4,091 |
2015 Notes Embedded Conversion Derivative | 0 | 0 |
Total Liabilities | 1,850 | 4,091 |
Fair Value Measurements, Level 3 [Member] | Money market funds [Member] | ' | ' |
Assets | ' | ' |
Cash equivalents | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | Corporate debt securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | Bank certificates of deposit [Member] | ' | ' |
Assets | ' | ' |
Cash equivalents | ' | 0 |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | United States Treasury securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | United States government agency securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | Commercial paper [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | Marketable equity securities [Member] | ' | ' |
Short-term investments: | ' | ' |
Available-for-sale securities | $0 | $0 |
Fair_Value_Details_1
Fair Value (Details 1) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | Fair Value Measurements, Level 3 [Member] | ||
Liabilities included in level 3 representing fair value of contingent consideration associated with acquisitions | ' | ' | ' |
Begining Balance | $1,850 | $4,091 | $4,091 |
Payments | ' | ' | -2,329 |
Adjustments | ' | ' | 88 |
Ending Balance | $1,850 | $4,091 | $1,850 |
Fair_Value_Details_Textual
Fair Value (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||||
Jun. 28, 2014 | Dec. 28, 2013 | Jun. 28, 2014 | Jun. 13, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | |
Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | Jasper [Member] | Jasper [Member] | Jasper [Member] | Jasper [Member] | Jasper [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] | Deferred Revenue [Member] | |||
Minimum [Member] | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets | ' | ' | $93,000,000 | ' | ' | ' | ' |
Fair Value of Financial Instrument (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Discount Rate | 11.00% | 11.00% | ' | ' | 13.00% | 17.00% | 3.25% |
Deferred revenue | ' | ' | ' | $11,900,000 | ' | ' | ' |
Fair Value Inputs, Estimated Profit Rate | ' | ' | ' | ' | ' | ' | 25.00% |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents and Investments (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 | Jun. 29, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||||
Cash, Cash Equivalents and Investments [Abstract] | ' | ' | ' | ' |
Cash and cash equivalents | $557,416 | $536,260 | $577,233 | $726,357 |
Short-term investments | 97,910 | 96,788 | ' | ' |
Cash, cash equivalents, and short-term investments | $655,326 | $633,048 | ' | ' |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents and Investments (Details 1) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 | Jun. 29, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||||
Classified as cash and cash equivalents | ' | ' | ' | ' |
Cash and interest bearing deposits | $199,800 | $188,088 | ' | ' |
Money market funds | 357,616 | 345,872 | ' | ' |
Bank certificates of deposit | 0 | 2,300 | ' | ' |
Total cash and cash equivalents | $557,416 | $536,260 | $577,233 | $726,357 |
Cash_Cash_Equivalents_and_Inve4
Cash, Cash Equivalents and Investments (Details 2) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Dec. 28, 2013 |
Short-term investments | ' | ' |
Amortized Cost | $96,968 | $96,462 |
Gross Unrealized Gains | 956 | 339 |
Gross Unrealized Losses | -14 | -13 |
Fair Value | 97,910 | 96,788 |
Corporate debt securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 36,615 | 37,422 |
Gross Unrealized Gains | 23 | 30 |
Gross Unrealized Losses | -13 | -11 |
Fair Value | 36,625 | 37,441 |
Bank certificates of deposit [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 24,249 | 20,300 |
Gross Unrealized Gains | 10 | 9 |
Gross Unrealized Losses | 0 | -1 |
Fair Value | 24,259 | 20,308 |
United States Treasury securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 19,273 | 24,219 |
Gross Unrealized Gains | 37 | 28 |
Gross Unrealized Losses | 0 | -1 |
Fair Value | 19,310 | 24,246 |
United States government agency securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 11,352 | 10,212 |
Gross Unrealized Gains | 10 | 11 |
Gross Unrealized Losses | -1 | 0 |
Fair Value | 11,361 | 10,223 |
Commercial paper [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 1,994 | 2,492 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,995 | 2,493 |
Marketable debt securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 93,483 | 94,645 |
Gross Unrealized Gains | 81 | 79 |
Gross Unrealized Losses | -14 | -13 |
Fair Value | 93,550 | 94,711 |
Marketable equity securities [Member] | ' | ' |
Short-term investments | ' | ' |
Amortized Cost | 3,485 | 1,817 |
Gross Unrealized Gains | 875 | 260 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $4,360 | $2,077 |
Cash_Cash_Equivalents_and_Inve5
Cash, Cash Equivalents and Investments (Details 3) (USD $) | Jun. 28, 2014 |
In Thousands, unless otherwise specified | |
Contractual maturity of marketable debt investments | ' |
Marketable Investments, Debt Maturities, Within One Year, Amortized Cost | $45,019 |
Marketable Investments, Debt Maturities, Year One Through Three, Amortized Cost | 48,464 |
Marketable investments, Debt Maturities, Amortized Cost, Total | 93,483 |
Marketable Investments, Debt Maturities, Within One Year, Fair Value | 45,057 |
Marketable Investments, Debt Maturities, Year One Through Three, Fair Value | 48,493 |
Marketable Investments, Debt Maturities, Fair Value, Total | $93,550 |
Cash_Cash_Equivalents_and_Inve6
Cash, Cash Equivalents and Investments (Details 4) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Carrying value of non-marketable investments | ' | ' |
Cost method | $3,038 | $3,038 |
Equity method | 5,570 | 3,639 |
Total non-marketable investments | $8,608 | $6,677 |
Restructuring_and_Other_Charge2
Restructuring and Other Charges (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring reserve | $4,786 | $14,224 |
Accounts Payable and Accrued Liabilities [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring reserve | 2,151 | ' |
Other Long Term Liabilities [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring reserve | $2,635 | ' |
Restructuring_and_Other_Charge3
Restructuring and Other Charges (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | ' | $14,224 | ' |
Restructuring and other charges (credits), net | -26 | 2,656 | 370 | 2,508 |
Cash payments | ' | ' | -9,835 | ' |
Effect of foreign currency translation | ' | ' | 27 | ' |
Ending balance | 4,786 | ' | 4,786 | ' |
Employee Severance and Benefits [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | ' | 10,672 | ' |
Restructuring and other charges (credits), net | ' | ' | 168 | ' |
Cash payments | ' | ' | -9,338 | ' |
Effect of foreign currency translation | ' | ' | 5 | ' |
Ending balance | 1,507 | ' | 1,507 | ' |
Excess Facilities [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | ' | 3,552 | ' |
Restructuring and other charges (credits), net | ' | ' | 202 | ' |
Cash payments | ' | ' | -497 | ' |
Effect of foreign currency translation | ' | ' | 22 | ' |
Ending balance | $3,279 | ' | $3,279 | ' |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Earnings Per Share, Basic and Diluted [Abstract] | ' | ' | ' | ' |
Net income | $23,263 | $9,429 | $56,333 | $88,038 |
Weighted-average common shares used to calculate basic net income per share (in shares) | 283,344 | 277,146 | 282,480 | 276,018 |
Convertible notes | 0 | 11 | 0 | 11 |
2015 Warrants | 15,054 | 10,871 | 13,815 | 10,770 |
Stock-based awards | 7,357 | 6,415 | 7,100 | 6,475 |
Weighted average common shares used to calculate diluted net income per share (in shares) | 305,755 | 294,443 | 303,395 | 293,274 |
Net income per share - basic (in usd per share) | $0.08 | $0.03 | $0.20 | $0.32 |
Net income per share - diluted (in usd per share) | $0.08 | $0.03 | $0.19 | $0.30 |
Net_Income_Per_Share_Details_1
Net Income Per Share (Details 1) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Potential shares of Cadence's common stock excluded | ' | ' | ' | ' |
Total potential common shares excluded | 4,407 | 12,600 | 4,526 | 13,092 |
2013 Warrants | ' | ' | ' | ' |
Potential shares of Cadence's common stock excluded | ' | ' | ' | ' |
Total potential common shares excluded | 0 | 6,830 | 0 | 6,830 |
Options to purchase shares of common stock | ' | ' | ' | ' |
Potential shares of Cadence's common stock excluded | ' | ' | ' | ' |
Total potential common shares excluded | 4,399 | 5,752 | 4,517 | 6,253 |
Non-vested shares of restricted stock | ' | ' | ' | ' |
Potential shares of Cadence's common stock excluded | ' | ' | ' | ' |
Total potential common shares excluded | 8 | 18 | 9 | 9 |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details 1) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated other comprehensive income | ' | ' |
Foreign currency translation gain | $34,011 | $27,183 |
Changes in defined benefit plan liabilities | -2,831 | -3,218 |
Unrealized holding gains on available-for-sale securities | 941 | 346 |
Total accumulated other comprehensive income | $32,121 | $24,311 |
Contingencies_Details_Textual
Contingencies (Details Textual) | 6 Months Ended |
Jun. 28, 2014 | |
Contingencies (Textual) [Abstract] | ' |
General period of warranty on sales of hardware products | '90 days |
Other_Income_Net_Details
Other Income, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Other Income, Net | ' | ' | ' | ' |
Interest income | $498 | $484 | $983 | $909 |
Gains (losses) on non-marketable investments, net | 406 | -229 | 1,952 | 649 |
Gains on securities in NQDC trust | 1,047 | 1,699 | 3,109 | 1,851 |
Gains (losses) on foreign exchange | -368 | 223 | -1,169 | 987 |
Other income (expense), net | 52 | -159 | 142 | -203 |
Total other income, net | $1,635 | $2,018 | $5,017 | $4,193 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' | ' |
Total revenue | $378,788 | $362,481 | $757,338 | $716,747 |
Americas: | ' | ' | ' | ' |
Total Americas | 167,924 | 164,795 | 337,036 | 318,581 |
United States [Member] | ' | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' | ' |
Geographic Areas, revenue from External Customers | 161,874 | 159,229 | 325,202 | 308,400 |
Other Americas [Member] | ' | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' | ' |
Geographic Areas, revenue from External Customers | 6,050 | 5,566 | 11,834 | 10,181 |
Asia [Member] | ' | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' | ' |
Geographic Areas, revenue from External Customers | 88,286 | 74,462 | 175,302 | 142,548 |
EMEA [Member] | ' | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' | ' |
Geographic Areas, revenue from External Customers | 82,074 | 77,757 | 159,606 | 156,677 |
Japan [Member] | ' | ' | ' | ' |
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | ' | ' | ' | ' |
Geographic Areas, revenue from External Customers | $40,504 | $45,467 | $85,394 | $98,941 |
Segment_Reporting_Details_1
Segment Reporting (Details 1) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Summary of long-lived assets by geography | ' | ' |
Total long-lived assets | $239,314 | $238,715 |
Americas: | ' | ' |
Total Americas | 209,783 | 207,988 |
United States [Member] | ' | ' |
Summary of long-lived assets by geography | ' | ' |
Long-Lived Assets in Individual Foreign Countries | 209,533 | 207,694 |
Other Americas [Member] | ' | ' |
Summary of long-lived assets by geography | ' | ' |
Long-Lived Assets in Individual Foreign Countries | 250 | 294 |
Asia [Member] | ' | ' |
Summary of long-lived assets by geography | ' | ' |
Long-Lived Assets in Individual Foreign Countries | 22,591 | 23,508 |
EMEA [Member] | ' | ' |
Summary of long-lived assets by geography | ' | ' |
Long-Lived Assets in Individual Foreign Countries | 6,085 | 6,326 |
Japan [Member] | ' | ' |
Summary of long-lived assets by geography | ' | ' |
Long-Lived Assets in Individual Foreign Countries | $855 | $893 |