Cadence Design Systems (CDNS) 10-Q 27 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Oct. 03, 2015shares
Document and Entity Information [Abstract]
Entity Registrant Name	CADENCE DESIGN SYSTEMS INC
Entity Central Index Key	813,672
Document Type	10-Q
Document Period End Date	Oct. 3, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--01-02
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	297,496,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Current Assets:
Cash and cash equivalents	$ 616,091	$ 932,161
Short-term investments	95,104	90,445
Receivables, net	133,665	122,492
Inventories	57,690	56,394
2015 notes hedges	0	523,930
Prepaid expenses and other	139,534	126,313
Total current assets	1,042,084	1,851,735
Property, plant and equipment, net of accumulated depreciation of $577,254 and $552,551, respectively	227,689	230,112
Goodwill	552,411	553,767
Acquired intangibles, net of accumulated amortization of $200,954 and $154,814, respectively	312,405	360,932
Long-term receivables	1,568	3,644
Other assets	194,983	209,366
Total assets	2,331,140	3,209,556
Current Liabilities:
Convertible notes	0	342,499
2015 notes embedded conversion derivative	0	523,930
Accounts payable and accrued liabilities	194,427	225,375
Current portion of deferred revenue	315,220	301,287
Total current liabilities	509,647	1,393,091
Long-Term Liabilities:
Long-term portion of deferred revenue	31,234	54,726
Long-term debt	348,760	348,676
Other long-term liabilities	56,937	79,489
Total long-term liabilities	$ 436,931	$ 482,891
Commitments and contingencies
Stockholders' Equity:
Common stock and capital in excess of par value	$ 1,853,284	$ 1,851,427
Treasury stock, at cost	(307,408)	(203,792)
Accumulated deficit	(154,365)	(326,408)
Accumulated other comprehensive income (loss)	(6,949)	12,347
Total stockholders’ equity	1,384,562	1,333,574
Total liabilities and stockholders’ equity	$ 2,331,140	$ 3,209,556

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Statement of Financial Position [Abstract]
Accumulated depreciation on property, plant and equipment	$ 577,254	$ 552,551
Accumulated amortization on acquired intangibles assets	$ 200,954	$ 154,814

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Revenue:
Product and maintenance	$ 396,867	$ 374,110	$ 1,165,455	$ 1,085,928
Services	36,896	26,386	95,557	71,906
Total revenue	433,763	400,496	1,261,012	1,157,834
Costs and Expenses:
Cost of product and maintenance	41,206	36,954	114,980	116,858
Cost of services	24,005	17,125	62,571	48,733
Marketing and sales	101,950	100,387	298,880	297,321
Research and development	154,627	148,744	475,597	447,882
General and administrative	28,084	25,894	83,193	86,680
Amortization of acquired intangibles	5,687	6,316	18,037	17,105
Restructuring and other charges	303	11,027	4,164	11,397
Total costs and expenses	355,862	346,447	1,057,422	1,025,976
Income from operations	77,901	54,049	203,590	131,858
Interest expense	(4,177)	(7,523)	(24,111)	(22,160)
Other income (expense), net	1,839	(417)	7,967	4,600
Income before provision (benefit) for income taxes	75,563	46,109	187,446	114,298
Provision (benefit) for income taxes	(2,061)	8,574	15,403	20,430
Net income	$ 77,624	$ 37,535	$ 172,043	$ 93,868
Net income per share - basic (in usd per share)	$ 0.27	$ 0.13	$ 0.60	$ 0.33
Net income per share - diluted (in usd per share)	$ 0.25	$ 0.12	$ 0.55	$ 0.31
Weighted average common shares outstanding - basic (in shares)	284,818	284,462	284,880	283,141
Weighted average common shares outstanding - diluted (in shares)	313,186	309,995	312,899	305,595

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 77,624	$ 37,535	$ 172,043	$ 93,868
Other comprehensive income (loss), net of tax effects:
Foreign currency translation adjustments	(6,449)	(6,428)	(19,867)	400
Changes in unrealized holding gains or losses on available-for-sale securities, net of reclassification adjustment for realized gains and losses	1	(400)	13	195
Changes in defined benefit plan liabilities	240	51	558	438
Total other comprehensive income (loss), net of tax effects	(6,208)	(6,777)	(19,296)	1,033
Comprehensive income	$ 71,416	$ 30,758	$ 152,747	$ 94,901

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Statement of Cash Flows [Abstract]
Cash and cash equivalents at beginning of period	$ 932,161	$ 536,260
Cash flows from operating activities:
Net income	172,043	93,868
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	88,006	84,296
Amortization of debt discount and fees	9,185	14,863
Stock-based compensation	67,681	60,818
Gain on investments, net	(1,434)	(3,202)
Deferred income taxes	1,713	18,963
Other non-cash items	(69)	6,221
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	(10,100)	(1,858)
Inventories	(1,861)	(15,796)
Prepaid expenses and other	(12,451)	(8)
Other assets	300	(38,241)
Accounts payable and accrued liabilities	(28,154)	(15,623)
Deferred revenue	(9,207)	(27,231)
Other long-term liabilities	(20,303)	7,585
Net cash provided by operating activities	255,349	184,655
Cash flows from investing activities:
Purchases of available-for-sale securities	(81,300)	(98,392)
Proceeds from the sale of available-for-sale securities	50,806	69,912
Proceeds from the maturity of available-for-sale securities	25,550	32,402
Proceeds from the sale of long-term investments	4,510	0
Purchases of property, plant and equipment	(34,093)	(27,958)
Cash paid in business combinations and asset acquisitions, net of cash acquired	0	(167,248)
Net cash used for investing activities	(34,527)	(191,284)
Cash flows from financing activities:
Proceeds from revolving credit facility	0	100,000
Payment on revolving credit facility	0	(100,000)
Payment of convertible notes	(349,999)	(1)
Payment of convertible notes embedded conversion derivative liability	(530,643)	(1)
Proceeds from convertible notes hedges	530,643	1
Payment of debt issuance costs	0	(322)
Payment of acquisition-related contingent consideration	0	(1,835)
Excess tax benefits from stock-based compensation	16,940	5,786
Proceeds from issuance of common stock	59,448	54,717
Stock received for payment of employee taxes on vesting of restricted stock	(31,795)	(23,648)
Payments for repurchases of common stock	(213,135)	(62,575)
Net cash used for financing activities	(518,541)	(27,878)
Effect of exchange rate changes on cash and cash equivalents	(18,351)	(1,270)
Decrease in cash and cash equivalents	(316,070)	(35,777)
Cash and cash equivalents at end of period	616,091	500,483
Supplemental cash flow information:
Cash paid for interest	12,134	5,113
Cash paid for taxes, net	23,930	21,410
Available-for-sale securities received from customer	$ 0	$ 1,695

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 03, 2015
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 January 3, 2015 . 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	9 Months Ended
	Oct. 03, 2015
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of October 3, 2015 and January 3, 2015 was as follows: October 3, 2015 January 3, 2015 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value 2015 Notes $ — $ — $ — $ 349,999 $ (7,500 ) $ 342,499 2024 Notes 350,000 (1,240 ) 348,760 350,000 (1,324 ) 348,676 Revolving credit facility — — — — — — Total outstanding debt $ 350,000 $ (1,240 ) $ 348,760 $ 699,999 $ (8,824 ) $ 691,175 2015 Notes In June 2010, Cadence issued $350.0 million principal amount of 2.625% Cash Convertible Senior Notes due June 1, 2015, or the 2015 Notes. During the nine months ended October 3, 2015 , Cadence settled the outstanding principal amount of $350.0 million and paid note holders accrued interest of $3.8 million . The 2015 Notes contained a conversion feature, or the 2015 Notes Embedded Conversion Derivative, that entitled the holders of the notes to receive additional cash payments if the notes were converted prior to maturity. During the nine months ended October 3, 2015 , Cadence paid $530.6 million to holders of the 2015 notes that converted prior to maturity. Cadence received proceeds of $530.6 million from the 2015 Notes Hedges, which fully offset the additional cash payments associated with the 2015 Notes Embedded Conversion Derivative. 2015 Notes Hedges 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 was due to the holders who elected to convert their notes prior to maturity. As a result of the 2015 Notes Hedges, Cadence’s maximum cash exposure upon conversion or maturity of the 2015 Notes was the remaining principal balance of the notes and accrued interest. The 2015 Notes Hedges expired on June 1, 2015, and were settled in cash. 2015 Warrants At the time of issuance of the 2015 Notes, Cadence entered into separate warrant transactions, or the 2015 Warrants, 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. As a result of the 2015 Warrants, Cadence experiences dilution to its diluted earnings per share when its average closing stock price exceeds $10.78 for any fiscal quarter until all of the warrants have expired. The 2015 Warrants expire daily over a 70-day period between September and December 2015 . As they expire, Cadence issues shares of common stock to the purchasers of the 2015 Warrants that represent the value by which the specified daily volume weighted average price of Cadence’s common stock exceeds the strike price of $10.78 stipulated in the warrant agreements. During the three months ended October 3, 2015 , approximately 15.2 million of the 2015 warrants expired, requiring Cadence to issue, on a net settlement basis, approximately 7.3 million shares of common stock to the 2015 Warrant counterparties. 2024 Notes In October 2014, Cadence issued $350.0 million aggregate principal amount of 4.375% Senior Notes due October 15, 2024, or the 2024 Notes. Cadence received net proceeds of $342.4 million from the issuance of the 2024 Notes, net of a discount of $1.4 million and issuance costs of $6.2 million . Both the discount and issuance costs are being amortized to interest expense over the term of the 2024 Notes using the effective interest method. Interest is payable in cash semi-annually in April and October. The 2024 Notes are unsecured and rank equal in right of payment to all of Cadence’s existing and future senior indebtedness. Cadence may redeem the 2024 Notes, in whole or in part, at a redemption price equal to the greater of (a) 100% of the principal amount of the notes to be redeemed and (b) the sum of the present values of the remaining scheduled payments of principal and interest, plus any accrued and unpaid interest, as more particularly described in the indenture governing the 2024 Notes. The indenture governing the 2024 Notes includes customary representations, warranties and restrictive covenants, including, but not limited to, restrictions on Cadence’s ability to grant liens on assets, enter into sale and lease-back transactions, or merge, consolidate or sell assets, and also includes customary events of default. Revolving Credit Facility Cadence maintains a senior unsecured 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 . The credit facility, as amended, expires on September 19, 2019 and has no subsidiary guarantors. Any outstanding loans drawn under the credit facility are due at maturity on September 19, 2019 . Outstanding borrowings may be paid at any time prior to maturity. Interest accrues on borrowings under the credit facility at either LIBOR plus a margin between 1.25% and 2.0% per annum or at the base rate plus a margin between 0.25% and 1.0% per annum. 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. 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 2.75 to 1, and a minimum interest coverage ratio of 3 to 1. As of October 3, 2015 and January 3, 2015 , Cadence had no outstanding balance under the revolving credit facility and was in compliance with all financial covenants.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	9 Months Ended
	Oct. 03, 2015
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 October 3, 2015 and January 3, 2015 were as follows: As of October 3, January 3, (In thousands) Cash and cash equivalents $ 616,091 $ 932,161 Short-term investments 95,104 90,445 Cash, cash equivalents and short-term investments $ 711,195 $ 1,022,606 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 October 3, 2015 and January 3, 2015 : As of October 3, January 3, (In thousands) Cash and interest bearing deposits $ 214,788 $ 203,665 Money market funds 401,303 728,496 Total cash and cash equivalents $ 616,091 $ 932,161 Short-Term Investments The following tables summarize Cadence’s short-term investments as of October 3, 2015 and January 3, 2015 : As of October 3, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Corporate debt securities $ 34,504 $ 14 $ (16 ) $ 34,502 Bank certificates of deposit 12,500 7 — 12,507 United States Treasury securities 36,880 100 — 36,980 United States government agency securities 6,154 2 — 6,156 Commercial paper 3,194 4 — 3,198 Marketable debt securities 93,232 127 (16 ) 93,343 Marketable equity securities 1,817 — (56 ) 1,761 Total short-term investments $ 95,049 $ 127 $ (72 ) $ 95,104 As of January 3, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Corporate debt securities $ 34,919 $ 6 $ (31 ) $ 34,894 Bank certificates of deposit 21,900 10 — 21,910 United States Treasury securities 19,375 12 (13 ) 19,374 United States government agency securities 9,209 3 (4 ) 9,208 Commercial paper 3,184 4 (2 ) 3,186 Marketable debt securities 88,587 35 (50 ) 88,572 Marketable equity securities 1,817 56 — 1,873 Total short-term investments $ 90,404 $ 91 $ (50 ) $ 90,445 As of October 3, 2015 , no securities held by Cadence had been in an unrealized loss position for more than six months . The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of October 3, 2015 , 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 Cost Fair Value (In thousands) Due in less than one year $ 47,058 $ 47,091 Due in one to three years 46,174 46,252 Total marketable debt securities included in short-term investments $ 93,232 $ 93,343 Realized gains and losses from the sale of marketable debt and equity securities are recorded in other income (expense), net in the condensed consolidated income statements.

Fair Value

Fair Value	9 Months Ended
	Oct. 03, 2015
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 nine months ended October 3, 2015 . 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 October 3, 2015 and January 3, 2015 : Fair Value Measurements as of October 3, 2015 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 401,303 $ 401,303 $ — $ — Short-term investments: Corporate debt securities 34,502 — 34,502 — Bank certificates of deposit 12,507 — 12,507 — United States Treasury securities 36,980 36,980 — — United States government agency securities 6,156 6,156 — — Commercial paper 3,198 — 3,198 — Marketable equity securities 1,761 1,761 — — Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust 23,605 23,605 — — Total Assets $ 520,012 $ 469,805 $ 50,207 $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts 768 — 768 — Total Liabilities $ 768 $ — $ 768 $ — Fair Value Measurements as of January 3, 2015 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 728,496 $ 728,496 $ — $ — Short-term investments: Corporate debt securities 34,894 — 34,894 — Bank certificates of deposit 21,910 — 21,910 — United States Treasury securities 19,374 19,374 — — United States government agency securities 9,208 9,208 — — Commercial paper 3,186 — 3,186 — Marketable equity securities 1,873 1,873 — — Trading securities held in NQDC trust 27,034 27,034 — — 2015 Notes Hedges 523,930 — 523,930 — Total Assets $ 1,369,905 $ 785,985 $ 583,920 $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities 2015 Notes Embedded Conversion Derivative 523,930 — 523,930 — Foreign currency exchange contracts 3,163 — 3,163 — Total Liabilities $ 527,093 $ — $ 527,093 $ —

Receivables, net

Receivables, net	9 Months Ended
	Oct. 03, 2015
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of October 3, 2015 and January 3, 2015 were as follows: As of October 3, January 3, (In thousands) Accounts receivable $ 79,873 $ 79,410 Unbilled accounts receivable 53,792 43,082 Long-term receivables 1,568 3,644 Total receivables $ 135,233 $ 126,136 Less allowance for doubtful accounts — — Total receivables, net $ 135,233 $ 126,136 Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of October 3, 2015 , one customer accounted for approximately 13% of Cadence’s total receivables and no other customer accounted for 10% or more of Cadence’s receivables. As of January 3, 2015 , no one customer accounted for 10% or more of Cadence’s total receivables. As of October 3, 2015 and January 3, 2015 , Cadence’s receivables attributable to the ten customers with the largest balances were approximately 43% of Cadence’s total receivables.

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	9 Months Ended
	Oct. 03, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND ACQUIRED INTANGIBLES	GOODWILL AND ACQUIRED INTANGIBLES Goodwill The changes in the carrying amount of goodwill during the nine months ended October 3, 2015 were as follows: Gross Carrying Amount (In thousands) Balance as of January 3, 2015 $ 553,767 Effect of foreign currency translation (1,356 ) Balance as of October 3, 2015 $ 552,411 Acquired Intangibles, Net Acquired intangibles as of October 3, 2015 were as follows, excluding intangibles that were fully amortized as of January 3, 2015 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 328,253 $ (114,359 ) $ 213,894 Agreements and relationships 173,387 (81,333 ) 92,054 Tradenames, trademarks and patents 10,119 (5,262 ) 4,857 Total acquired intangibles with definite lives 511,759 (200,954 ) 310,805 In-process technology 1,600 — 1,600 Total acquired intangibles $ 513,359 $ (200,954 ) $ 312,405 In-process technology as of October 3, 2015 consisted of acquired projects that, if completed, will contribute to Cadence’s ability to offer additional software solutions to its customers. As of October 3, 2015 , these projects were expected to be complete in three to six months . During the nine months ended October 3, 2015 , there were no transfers from in-process technology to existing technology. Acquired intangibles as of January 3, 2015 were as follows, excluding intangibles that were fully amortized as of December 28, 2013 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 328,325 $ (84,822 ) $ 243,503 Agreements and relationships 175,202 (65,512 ) 109,690 Tradenames, trademarks and patents 10,619 (4,480 ) 6,139 Total acquired intangibles with definite lives 514,146 (154,814 ) 359,332 In-process technology 1,600 — 1,600 Total acquired intangibles $ 515,746 $ (154,814 ) $ 360,932 Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization of acquired intangibles for the three and nine months ended October 3, 2015 and September 27, 2014 was as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Cost of product and maintenance $ 10,107 $ 10,071 $ 30,385 $ 26,260 Amortization of acquired intangibles 5,687 6,316 18,037 17,105 Total amortization of acquired intangibles $ 15,794 $ 16,387 $ 48,422 $ 43,365 Estimated amortization expense for intangible assets with definite lives for the following five fiscal years and thereafter is as follows: (In thousands) 2015 – remaining period $ 15,783 2016 57,281 2017 52,596 2018 48,922 2019 42,927 Thereafter 93,296 Total estimated amortization expense $ 310,805

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Oct. 03, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION [Text Block]	STOCK-BASED COMPENSATION Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and nine months ended October 3, 2015 and September 27, 2014 as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Cost of product and maintenance $ 662 $ 633 $ 1,789 $ 1,600 Cost of services 968 926 2,615 2,338 Marketing and sales 5,764 5,930 16,447 15,086 Research and development 12,847 11,580 35,625 30,948 General and administrative 3,876 3,808 11,205 10,846 Total stock-based compensation expense $ 24,117 $ 22,877 $ 67,681 $ 60,818 Cadence had total unrecognized compensation expense, net of estimated forfeitures, related to stock option and restricted stock grants of $167.7 million as of October 3, 2015 , which will be recognized over the remaining vesting period. The remaining weighted-average vesting period of unvested awards is 2.2 years .

Income Taxes

Income Taxes	9 Months Ended
	Oct. 03, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Cadence’s provision (benefit) for income taxes for the three and nine months ended October 3, 2015 primarily resulted from federal, state and foreign income taxes on its anticipated fiscal 2015 income, which was offset by $13.8 million of tax benefit recognized during the three months ended October 3, 2015 related to the effective settlement of a tax examination of a Cadence foreign subsidiary. As a result of the settlement, Cadence recognized a tax benefit of $1.2 million from the release of reserves for certain tax positions. The settlement also provided Cadence with additional visibility into when it could expect to utilize certain tax credits, which in turn allowed Cadence to release $12.6 million of valuation allowance on those credits. Cadence’s provision for income taxes for the three and nine months ended September 27, 2014 is primarily attributable to federal, state and foreign income taxes on its anticipated fiscal 2014 income. In determining the adequacy of the provision for income taxes, Cadence regularly assesses new information available at each reporting date regarding the potential settlement outcomes of income tax examinations. However, the final outcomes of tax examinations, including the total amount payable or the timing of any such payments, cannot be estimated with certainty. In July 2015, the United States Tax Court, in Altera Corp. et al. v. Commissioner , determined that part of a 2003 Treasury Regulation requiring taxpayers to include stock-based compensation in qualified intercompany cost sharing arrangements is invalid. A final decision has yet to be issued by the Tax Court. The U.S. Department of the Treasury has not withdrawn the regulation, and the Internal Revenue Service may appeal. Cadence has reviewed this case and concluded that no adjustment to the condensed consolidated financial statements is appropriate at this time. Cadence will continue to monitor developments related to the regulation and the potential impact of those developments on the consolidated financial statements. In July 2015, a Cadence subsidiary located outside of the United States entered into a settlement agreement with tax authorities on its examination of the 2011 to 2013 tax returns. Cadence’s gross unrecognized tax benefits exclusive of interest and penalties decreased by approximately $9.5 million due to the settlement. Cadence’s gross unrecognized tax benefits at October 3, 2015 were $88.9 million , excluding interest and penalties. If the total gross unrecognized tax benefits at October 3, 2015 were recognized in the future, approximately $46.3 million of the total amount would decrease Cadence’s effective tax rate.

Restructuring and Other Charges

Restructuring and Other Charges	9 Months Ended
	Oct. 03, 2015
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND OTHER CHARGES	RESTRUCTURING AND OTHER CHARGES Cadence has initiated various restructuring plans in an effort to better align its resources with its business strategy. These restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions, estimated lease losses related to facilities vacated under the restructuring plans and charges related to assets abandoned as part of the restructuring plans. During the nine months ended October 3, 2015 , Cadence initiated a restructuring plan, or the 2015 Restructuring Plan, and recorded restructuring and other charges of approximately $4.1 million related to severance payments and termination benefits. As of October 3, 2015 , total liabilities related to the 2015 Restructuring Plan were $0.9 million . Cadence expects to make cash payments for severance and related benefits for the 2015 Restructuring Plan through the fourth quarter of fiscal 2016. The following table presents activity relating to Cadence’s restructuring plans during the nine months ended October 3, 2015 : Severance and Benefits Excess Facilities Other Total (In thousands) Balance, January 3, 2015 $ 4,462 $ 1,267 $ 481 $ 6,210 Restructuring and other charges (credits): 2015 Restructuring Plan 4,080 — — 4,080 Prior restructuring plans (561 ) 645 — 84 Cash payments (6,841 ) (1,394 ) — (8,235 ) Effect of foreign currency translation (20 ) (52 ) — (72 ) Balance, October 3, 2015 $ 1,120 $ 466 $ 481 $ 2,067 The remaining accrual for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of October 3, 2015 (In thousands) Accounts payable and accrued liabilities $ 1,920 Other long-term liabilities 147 Total liabilities $ 2,067

Net Income per Share

Net Income per Share	9 Months Ended
	Oct. 03, 2015
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NET INCOME PER SHARE Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting. The calculations for basic and diluted net income per share for the three and nine months ended October 3, 2015 and September 27, 2014 are as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands, except per share amounts) Net income $ 77,624 $ 37,535 $ 172,043 $ 93,868 Weighted average common shares used to calculate basic net income per share 284,818 284,462 284,880 283,141 2015 Warrants 20,548 17,580 20,031 15,070 Stock-based awards 7,820 7,953 7,988 7,384 Weighted average common shares used to calculate diluted net income per share 313,186 309,995 312,899 305,595 Net income per share - basic $ 0.27 $ 0.13 $ 0.60 $ 0.33 Net income per share - diluted $ 0.25 $ 0.12 $ 0.55 $ 0.31 As a result of the 2015 Warrants, Cadence experiences dilution to its diluted earnings per share when its average closing stock price exceeds $10.78 until the remaining 2015 Warrants expire in December 2015. During the three months ended October 3, 2015 , approximately 15.2 million of the 2015 warrants expired, requiring Cadence to issue, on a net settlement basis, approximately 7.3 million shares of common stock to the 2015 Warrant counterparties. For an additional description of the 2015 Warrants, see Note 2 in the notes to condensed consolidated financial statements. The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended October 3, 2015 and September 27, 2014 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Options to purchase shares of common stock 1,472 1,403 1,362 3,479 Non-vested shares of restricted stock 169 53 68 24 Total potential common shares excluded 1,641 1,456 1,430 3,503

Stock Repurchase Programs

Stock Repurchase Programs	9 Months Ended
	Oct. 03, 2015
Equity [Abstract]
STOCK REPURCHASE PROGRAMS	STOCK REPURCHASE PROGRAMS In February 2008, Cadence’s Board of Directors authorized Cadence to repurchase shares of its common stock in the open market with a value of up to $500.0 million in the aggregate. In August 2008, Cadence’s Board of Directors authorized Cadence to repurchase shares of its common stock in the open market with a value of up to an additional $500.0 million in the aggregate. In July 2015, Cadence’s Board of Directors authorized the addition of $578.8 million in the aggregate to the amounts remaining under the prior authorizations. As of October 3, 2015 , approximately $1.1 billion remained available under the authorizations. In July 2015, Cadence’s Board of Directors replaced the two -year, aggregate $450.0 million stock repurchase plan that commenced in the second quarter of fiscal 2015 with an 18 -month plan to repurchase shares of Cadence common stock of up to an aggregate of $1.2 billion under the authorizations, beginning in the third quarter of fiscal 2015. The actual timing and amount of repurchases will be subject to business and market conditions, corporate and regulatory requirements, acquisition opportunities and other factors. The stock repurchase program may be suspended, modified or discontinued at any time. The shares repurchased and the total cost of repurchased shares, including commissions, during the three and nine months ended October 3, 2015 and September 27, 2014 were as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Shares repurchased 5,856 2,154 10,745 3,748 Total cost of repurchased shares $ 120,059 $ 37,543 $ 213,135 $ 62,575 For additional information regarding share repurchases, see the discussion under Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds.”

Contingencies

Contingencies	9 Months Ended
	Oct. 03, 2015
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Legal Proceedings From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and lawsuits related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, distribution arrangements and employee relations matters. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates. Other Contingencies Cadence provides its customers with a warranty on sales of hardware products, generally for a 90 -day period. Cadence did not incur any significant costs related to warranty obligations during the three and nine months ended October 3, 2015 and September 27, 2014 . Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s intellectual property. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. The indemnification is generally limited to the amount paid by the customer. Cadence did not incur any significant losses from indemnification claims during the three and nine months ended October 3, 2015 and September 27, 2014 .

Other Comprehensive Income

Other Comprehensive Income	9 Months Ended
	Oct. 03, 2015
Other Comprehensive Income (Loss), Net of Tax [Abstract]
OTHER COMPREHENSIVE INCOME	OTHER COMPREHENSIVE INCOME (LOSS) Cadence’s other comprehensive income (loss) 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 (loss) was comprised of the following as of October 3, 2015 , and January 3, 2015 : As of October 3, January 3, (In thousands) Foreign currency translation gain (loss) $ (4,160 ) $ 15,707 Changes in defined benefit plan liabilities (2,844 ) (3,401 ) Unrealized holding gains on available-for-sale securities 55 41 Total accumulated other comprehensive income (loss) $ (6,949 ) $ 12,347 For the three and nine months ended October 3, 2015 and September 27, 2014 there were no significant amounts reclassified from accumulated other comprehensive income (loss) to net income.

Segment Reporting

Segment Reporting	9 Months Ended
	Oct. 03, 2015
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 operating segment. In making operating decisions, the CEO primarily considers consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Outside the United States, Cadence markets and supports its products and services primarily through its subsidiaries. Revenue is attributed to geography based upon the country in which the product is used or services are delivered. Long-lived assets are attributed to geography based on the country where the assets are located. The following table presents a summary of revenue by geography for the three and nine months ended October 3, 2015 and September 27, 2014 : Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Americas: United States $ 199,628 $ 179,883 $ 579,011 $ 505,084 Other Americas 6,685 6,065 19,524 17,900 Total Americas 206,313 185,948 598,535 522,984 Asia 106,627 89,644 301,835 264,946 Europe, Middle East and Africa 80,193 81,923 240,777 241,529 Japan 40,630 42,981 119,865 128,375 Total $ 433,763 $ 400,496 $ 1,261,012 $ 1,157,834 The following table presents a summary of long-lived assets by geography as of October 3, 2015 and January 3, 2015 : As of October 3, January 3, (In thousands) Americas: United States $ 191,273 $ 200,760 Other Americas 428 578 Total Americas 191,701 201,338 Asia 23,515 22,145 Europe, Middle East and Africa 11,939 5,951 Japan 534 678 Total $ 227,689 $ 230,112

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Oct. 03, 2015
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.
Cash and Cash Equivalents and Short Term Investments	Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents.
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 nine months ended October 3, 2015 .
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.

Debt (Tables)

Debt (Tables)	9 Months Ended
	Oct. 03, 2015
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of October 3, 2015 and January 3, 2015 was as follows: October 3, 2015 January 3, 2015 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value 2015 Notes $ — $ — $ — $ 349,999 $ (7,500 ) $ 342,499 2024 Notes 350,000 (1,240 ) 348,760 350,000 (1,324 ) 348,676 Revolving credit facility — — — — — — Total outstanding debt $ 350,000 $ (1,240 ) $ 348,760 $ 699,999 $ (8,824 ) $ 691,175

Cash, Cash Equivalents and In23

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Oct. 03, 2015
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 October 3, 2015 and January 3, 2015 were as follows: As of October 3, January 3, (In thousands) Cash and cash equivalents $ 616,091 $ 932,161 Short-term investments 95,104 90,445 Cash, cash equivalents and short-term investments $ 711,195 $ 1,022,606
Summary of cash and cash equivalents	The following table summarizes Cadence’s cash and cash equivalents at fair value as of October 3, 2015 and January 3, 2015 : As of October 3, January 3, (In thousands) Cash and interest bearing deposits $ 214,788 $ 203,665 Money market funds 401,303 728,496 Total cash and cash equivalents $ 616,091 $ 932,161
Summary of short-term investments	The following tables summarize Cadence’s short-term investments as of October 3, 2015 and January 3, 2015 : As of October 3, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Corporate debt securities $ 34,504 $ 14 $ (16 ) $ 34,502 Bank certificates of deposit 12,500 7 — 12,507 United States Treasury securities 36,880 100 — 36,980 United States government agency securities 6,154 2 — 6,156 Commercial paper 3,194 4 — 3,198 Marketable debt securities 93,232 127 (16 ) 93,343 Marketable equity securities 1,817 — (56 ) 1,761 Total short-term investments $ 95,049 $ 127 $ (72 ) $ 95,104 As of January 3, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Corporate debt securities $ 34,919 $ 6 $ (31 ) $ 34,894 Bank certificates of deposit 21,900 10 — 21,910 United States Treasury securities 19,375 12 (13 ) 19,374 United States government agency securities 9,209 3 (4 ) 9,208 Commercial paper 3,184 4 (2 ) 3,186 Marketable debt securities 88,587 35 (50 ) 88,572 Marketable equity securities 1,817 56 — 1,873 Total short-term investments $ 90,404 $ 91 $ (50 ) $ 90,445
Contractual maturity of marketable debt investments	The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of October 3, 2015 , 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 Cost Fair Value (In thousands) Due in less than one year $ 47,058 $ 47,091 Due in one to three years 46,174 46,252 Total marketable debt securities included in short-term investments $ 93,232 $ 93,343

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Oct. 03, 2015
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 October 3, 2015 and January 3, 2015 : Fair Value Measurements as of October 3, 2015 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 401,303 $ 401,303 $ — $ — Short-term investments: Corporate debt securities 34,502 — 34,502 — Bank certificates of deposit 12,507 — 12,507 — United States Treasury securities 36,980 36,980 — — United States government agency securities 6,156 6,156 — — Commercial paper 3,198 — 3,198 — Marketable equity securities 1,761 1,761 — — Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust 23,605 23,605 — — Total Assets $ 520,012 $ 469,805 $ 50,207 $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts 768 — 768 — Total Liabilities $ 768 $ — $ 768 $ — Fair Value Measurements as of January 3, 2015 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 728,496 $ 728,496 $ — $ — Short-term investments: Corporate debt securities 34,894 — 34,894 — Bank certificates of deposit 21,910 — 21,910 — United States Treasury securities 19,374 19,374 — — United States government agency securities 9,208 9,208 — — Commercial paper 3,186 — 3,186 — Marketable equity securities 1,873 1,873 — — Trading securities held in NQDC trust 27,034 27,034 — — 2015 Notes Hedges 523,930 — 523,930 — Total Assets $ 1,369,905 $ 785,985 $ 583,920 $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities 2015 Notes Embedded Conversion Derivative 523,930 — 523,930 — Foreign currency exchange contracts 3,163 — 3,163 — Total Liabilities $ 527,093 $ — $ 527,093 $ —

Receivables, net (Tables)

Receivables, net (Tables)	9 Months Ended
	Oct. 03, 2015
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of October 3, 2015 and January 3, 2015 were as follows: As of October 3, January 3, (In thousands) Accounts receivable $ 79,873 $ 79,410 Unbilled accounts receivable 53,792 43,082 Long-term receivables 1,568 3,644 Total receivables $ 135,233 $ 126,136 Less allowance for doubtful accounts — — Total receivables, net $ 135,233 $ 126,136

Goodwill and Acquired Intangi26

Goodwill and Acquired Intangibles (Tables)	9 Months Ended
	Oct. 03, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during the nine months ended October 3, 2015 were as follows: Gross Carrying Amount (In thousands) Balance as of January 3, 2015 $ 553,767 Effect of foreign currency translation (1,356 ) Balance as of October 3, 2015 $ 552,411
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of January 3, 2015 were as follows, excluding intangibles that were fully amortized as of December 28, 2013 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 328,325 $ (84,822 ) $ 243,503 Agreements and relationships 175,202 (65,512 ) 109,690 Tradenames, trademarks and patents 10,619 (4,480 ) 6,139 Total acquired intangibles with definite lives 514,146 (154,814 ) 359,332 In-process technology 1,600 — 1,600 Total acquired intangibles $ 515,746 $ (154,814 ) $ 360,932 Acquired intangibles as of October 3, 2015 were as follows, excluding intangibles that were fully amortized as of January 3, 2015 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 328,253 $ (114,359 ) $ 213,894 Agreements and relationships 173,387 (81,333 ) 92,054 Tradenames, trademarks and patents 10,119 (5,262 ) 4,857 Total acquired intangibles with definite lives 511,759 (200,954 ) 310,805 In-process technology 1,600 — 1,600 Total acquired intangibles $ 513,359 $ (200,954 ) $ 312,405
Amortization of acquired intangibles	Amortization of acquired intangibles for the three and nine months ended October 3, 2015 and September 27, 2014 was as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Cost of product and maintenance $ 10,107 $ 10,071 $ 30,385 $ 26,260 Amortization of acquired intangibles 5,687 6,316 18,037 17,105 Total amortization of acquired intangibles $ 15,794 $ 16,387 $ 48,422 $ 43,365
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) 2015 – remaining period $ 15,783 2016 57,281 2017 52,596 2018 48,922 2019 42,927 Thereafter 93,296 Total estimated amortization expense $ 310,805

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Oct. 03, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense and allocation by cost [Table Text Block]	Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and nine months ended October 3, 2015 and September 27, 2014 as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Cost of product and maintenance $ 662 $ 633 $ 1,789 $ 1,600 Cost of services 968 926 2,615 2,338 Marketing and sales 5,764 5,930 16,447 15,086 Research and development 12,847 11,580 35,625 30,948 General and administrative 3,876 3,808 11,205 10,846 Total stock-based compensation expense $ 24,117 $ 22,877 $ 67,681 $ 60,818

Restructuring and Other Charg28

Restructuring and Other Charges (Tables)	9 Months Ended
	Oct. 03, 2015
Restructuring and Related Activities [Abstract]
Restructuring reserve rollforward by major type of cost	The following table presents activity relating to Cadence’s restructuring plans during the nine months ended October 3, 2015 : Severance and Benefits Excess Facilities Other Total (In thousands) Balance, January 3, 2015 $ 4,462 $ 1,267 $ 481 $ 6,210 Restructuring and other charges (credits): 2015 Restructuring Plan 4,080 — — 4,080 Prior restructuring plans (561 ) 645 — 84 Cash payments (6,841 ) (1,394 ) — (8,235 ) Effect of foreign currency translation (20 ) (52 ) — (72 ) Balance, October 3, 2015 $ 1,120 $ 466 $ 481 $ 2,067
Schedule of restructuring reserve by balance sheet classification	The remaining accrual for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of October 3, 2015 (In thousands) Accounts payable and accrued liabilities $ 1,920 Other long-term liabilities 147 Total liabilities $ 2,067

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Oct. 03, 2015
Earnings Per Share [Abstract]
Basic and diluted net income per share	The calculations for basic and diluted net income per share for the three and nine months ended October 3, 2015 and September 27, 2014 are as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands, except per share amounts) Net income $ 77,624 $ 37,535 $ 172,043 $ 93,868 Weighted average common shares used to calculate basic net income per share 284,818 284,462 284,880 283,141 2015 Warrants 20,548 17,580 20,031 15,070 Stock-based awards 7,820 7,953 7,988 7,384 Weighted average common shares used to calculate diluted net income per share 313,186 309,995 312,899 305,595 Net income per share - basic $ 0.27 $ 0.13 $ 0.60 $ 0.33 Net income per share - diluted $ 0.25 $ 0.12 $ 0.55 $ 0.31
Potential shares of Cadence's common stock excluded	The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended October 3, 2015 and September 27, 2014 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Options to purchase shares of common stock 1,472 1,403 1,362 3,479 Non-vested shares of restricted stock 169 53 68 24 Total potential common shares excluded 1,641 1,456 1,430 3,503

Stock Repurchase Programs (Tabl

Stock Repurchase Programs (Tables)	9 Months Ended
	Oct. 03, 2015
Equity [Abstract]
Shares repurchased and the total cost of shares repurchased	The shares repurchased and the total cost of repurchased shares, including commissions, during the three and nine months ended October 3, 2015 and September 27, 2014 were as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Shares repurchased 5,856 2,154 10,745 3,748 Total cost of repurchased shares $ 120,059 $ 37,543 $ 213,135 $ 62,575

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)	9 Months Ended
	Oct. 03, 2015
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated other comprehensive income (loss) net of tax	Accumulated other comprehensive income (loss) was comprised of the following as of October 3, 2015 , and January 3, 2015 : As of October 3, January 3, (In thousands) Foreign currency translation gain (loss) $ (4,160 ) $ 15,707 Changes in defined benefit plan liabilities (2,844 ) (3,401 ) Unrealized holding gains on available-for-sale securities 55 41 Total accumulated other comprehensive income (loss) $ (6,949 ) $ 12,347

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Oct. 03, 2015
Segment Reporting [Abstract]
Summary of revenue by geography	The following table presents a summary of revenue by geography for the three and nine months ended October 3, 2015 and September 27, 2014 : Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) Americas: United States $ 199,628 $ 179,883 $ 579,011 $ 505,084 Other Americas 6,685 6,065 19,524 17,900 Total Americas 206,313 185,948 598,535 522,984 Asia 106,627 89,644 301,835 264,946 Europe, Middle East and Africa 80,193 81,923 240,777 241,529 Japan 40,630 42,981 119,865 128,375 Total $ 433,763 $ 400,496 $ 1,261,012 $ 1,157,834
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of October 3, 2015 and January 3, 2015 : As of October 3, January 3, (In thousands) Americas: United States $ 191,273 $ 200,760 Other Americas 428 578 Total Americas 191,701 201,338 Asia 23,515 22,145 Europe, Middle East and Africa 11,939 5,951 Japan 534 678 Total $ 227,689 $ 230,112

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015	Oct. 09, 2014	Jun. 30, 2010
Debt Instrument [Line Items]
Principal	$ 350,000	$ 699,999
Unamortized debt discount	(1,240)	(8,824)
Carrying value	348,760	348,676
Carrying value	348,760	691,175
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Principal	0	0
Unamortized debt discount	0	0
Line of Credit, Current	0	0
Senior Notes [Member] | Convertible Senior Notes Due 2015 [Member]
Debt Instrument [Line Items]
Principal	0	349,999
Principal				$ 350,000
Unamortized debt discount	0	(7,500)
Carrying value	0	342,499
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Principal	350,000	350,000	$ 350,000
Unamortized debt discount	(1,240)	(1,324)	$ (1,400)
Carrying value	$ 348,760	$ 348,676

Debt (Details Textual)

Debt (Details Textual) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	Oct. 09, 2014	Jun. 30, 2010	Oct. 03, 2015	Oct. 03, 2015	Sep. 27, 2014	Jan. 03, 2015
Debt Instrument [Line Items]
Payments of convertible notes				$ 349,999	$ 1
Cash paid for interest				(12,134)	(5,113)
Payment of convertible notes embedded conversion derivative liability				(530,643)	(1)
Proceeds from from convertible notes hedges				530,643	$ 1
Unamortized discount			$ 1,240	$ 1,240		$ 8,824
Senior Notes [Member] | Convertible Senior Notes Due 2015 [Member]
Debt Instrument [Line Items]
Aggregate principal amount, issued		$ 350,000
Stated interest rate of Senior Notes			2.625%	2.625%
Payments of convertible notes				$ 350,000
Cash paid for interest				(3,800)
Payment of convertible notes embedded conversion derivative liability				(530,600)
Proceeds from from convertible notes hedges				$ 530,600
Shares of common stock that can be purchased under warrants (in shares)				46.4
Amount received in cash proceeds from the sale of warrants		$ 37,500
Warrants to purchase shares of common stock price per share (in usd per share)				$ 10.78
Notes Warrants expiration date description				daily over a 70-day period between September and December 2015
Number of warrants expired			15.2
Stock issued to settle warrants			7.3
Unamortized discount			$ 0	$ 0		7,500
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Aggregate principal amount, issued	$ 350,000		350,000	350,000		350,000
Stated interest rate of Senior Notes	4.375%
Proceeds from Senior Notes, net	$ 342,400
Unamortized discount	1,400		$ 1,240	$ 1,240		$ 1,324
Debt issuance costs	$ 6,200

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual) - Revolving Credit Facility [Member] - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Jan. 03, 2015
Line of Credit Facility [Line Items]
Credit facility, interest rate description	Interest accrues on borrowings under the credit facility at either LIBOR plus a margin between 1.25% and 2.0% per annum or at the base rate plus a margin between 0.25% and 1.0% per annum. 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.
Credit facility, maturity date	Sep. 19, 2019
Outstanding borrowings under Revolving Credit Facility	$ 0	$ 0
Credit facility, current borrowing capacity	250,000
Credit facility additional borrowing capacity available	150,000
Credit facility, maximum borrowing capacity	$ 400,000
Credit facility, covenant description	The credit facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness, grant liens, make certain investments (including acquisitions), dispose of certain assets and make certain 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 2.75 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 October 3, 2015 and January 3, 2015.
Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage	0.35%
Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage	0.20%
Credit Facility Interest LIBOR and spread [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	2.00%
Credit Facility Interest LIBOR and spread [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	1.25%
Credit facility interest base rate and spread [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	1.00%
Credit facility interest base rate and spread [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	0.25%

Cash, Cash Equivalents and In36

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015	Sep. 27, 2014	Dec. 28, 2013
Cash, Cash Equivalents and Investments [Abstract]
Cash and cash equivalents	$ 616,091	$ 932,161	$ 500,483	$ 536,260
Short-term investments	95,104	90,445
Cash, cash equivalents, and short-term investments	$ 711,195	$ 1,022,606

Cash, Cash Equivalents and In37

Cash, Cash Equivalents and Investments (Details 1) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015	Sep. 27, 2014	Dec. 28, 2013
Classified as cash and cash equivalents
Cash and interest bearing deposits	$ 214,788	$ 203,665
Money market funds	401,303	728,496
Total cash and cash equivalents	$ 616,091	$ 932,161	$ 500,483	$ 536,260

Cash, Cash Equivalents and In38

Cash, Cash Equivalents and Investments (Details 2) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Short-term investments
Amortized Cost	$ 95,049	$ 90,404
Gross Unrealized Gains	127	91
Gross Unrealized Losses	(72)	(50)
Fair Value	95,104	90,445
Corporate debt securities [Member]
Short-term investments
Amortized Cost	34,504	34,919
Gross Unrealized Gains	14	6
Gross Unrealized Losses	(16)	(31)
Fair Value	34,502	34,894
Bank certificates of deposit [Member]
Short-term investments
Amortized Cost	12,500	21,900
Gross Unrealized Gains	7	10
Gross Unrealized Losses	0	0
Fair Value	12,507	21,910
United States Treasury securities [Member]
Short-term investments
Amortized Cost	36,880	19,375
Gross Unrealized Gains	100	12
Gross Unrealized Losses	0	(13)
Fair Value	36,980	19,374
United States government agency securities [Member]
Short-term investments
Amortized Cost	6,154	9,209
Gross Unrealized Gains	2	3
Gross Unrealized Losses	0	(4)
Fair Value	6,156	9,208
Commercial paper [Member]
Short-term investments
Amortized Cost	3,194	3,184
Gross Unrealized Gains	4	4
Gross Unrealized Losses	0	(2)
Fair Value	3,198	3,186
Marketable debt securities [Member]
Short-term investments
Amortized Cost	93,232	88,587
Gross Unrealized Gains	127	35
Gross Unrealized Losses	(16)	(50)
Fair Value	93,343	88,572
Marketable equity securities [Member]
Short-term investments
Amortized Cost	1,817	1,817
Gross Unrealized Gains	0	56
Gross Unrealized Losses	(56)	0
Fair Value	$ 1,761	$ 1,873

Cash, Cash Equivalents and In39

Cash, Cash Equivalents and Investments (Details 3) $ in Thousands	Oct. 03, 2015USD ($)
Contractual maturity of marketable debt investments
Marketable Investments, Debt Maturities, Within One Year, Amortized Cost	$ 47,058
Marketable Investments, Debt Maturities, Year One Through Three, Amortized Cost	46,174
Marketable investments, Debt Maturities, Amortized Cost, Total	93,232
Marketable Investments, Debt Maturities, Within One Year, Fair Value	47,091
Marketable Investments, Debt Maturities, Year One Through Three, Fair Value	46,252
Marketable Investments, Debt Maturities, Fair Value, Total	$ 93,343

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Short-term investments:
Available-for-sale securities	$ 95,104	$ 90,445
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	23,605	27,034
2015 Notes Hedges		523,930
Total Assets	520,012	1,369,905
Liabilities
2015 Notes Embedded Conversion Derivative		523,930
Foreign currency exchange contracts	768	3,163
Total Liabilities	768	527,093
Money market funds [Member]
Assets
Cash equivalents	401,303	728,496
Corporate debt securities [Member]
Short-term investments:
Available-for-sale securities	34,502	34,894
Bank certificates of deposit [Member]
Short-term investments:
Available-for-sale securities	12,507	21,910
United States Treasury securities [Member]
Short-term investments:
Available-for-sale securities	36,980	19,374
United States government agency securities [Member]
Short-term investments:
Available-for-sale securities	6,156	9,208
Commercial paper [Member]
Short-term investments:
Available-for-sale securities	3,198	3,186
Marketable equity securities [Member]
Short-term investments:
Available-for-sale securities	1,761	1,873
Fair Value Measurements, Level 1 [Member]
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	23,605	27,034
2015 Notes Hedges		0
Total Assets	469,805	785,985
Liabilities
2015 Notes Embedded Conversion Derivative		0
Foreign currency exchange contracts	0	0
Total Liabilities	0	0
Fair Value Measurements, Level 1 [Member] | Money market funds [Member]
Assets
Cash equivalents	401,303	728,496
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]
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	36,980	19,374
Fair Value Measurements, Level 1 [Member] | United States government agency securities [Member]
Short-term investments:
Available-for-sale securities	6,156	9,208
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	1,761	1,873
Fair Value Measurements, Level 2 [Member]
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	0	0
2015 Notes Hedges		523,930
Total Assets	50,207	583,920
Liabilities
2015 Notes Embedded Conversion Derivative		523,930
Foreign currency exchange contracts	768	3,163
Total Liabilities	768	527,093
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	34,502	34,894
Fair Value Measurements, Level 2 [Member] | Bank certificates of deposit [Member]
Short-term investments:
Available-for-sale securities	12,507	21,910
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	3,198	3,186
Fair Value Measurements, Level 2 [Member] | Marketable equity securities [Member]
Short-term investments:
Available-for-sale securities	0	0
Fair Value Measurements, Level 3 [Member]
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	0	0
2015 Notes Hedges		0
Total Assets	0	0
Liabilities
2015 Notes Embedded Conversion Derivative		0
Foreign currency exchange contracts	0	0
Total Liabilities	0	0
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]
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

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Current and long-term receivables balances
Accounts receivable	$ 79,873	$ 79,410
Unbilled accounts receivable	53,792	43,082
Long-term receivables	1,568	3,644
Total receivables	135,233	126,136
Less allowance for doubtful accounts	0	0
Total receivables, net	$ 135,233	$ 126,136

Receivables, net (Details Textu

Receivables, net (Details Textual) - Customer	Oct. 03, 2015	Jan. 03, 2015
Accounts Receivable and Allowances for Doubtful Accounts (Textual) [Abstract]
Percentage of receivables, net attributable to single customer	13.00%	10.00%
Number of customers with receivables balance greater than ten percent of total balance	1	0
Percentage of receivables, net attributable to the ten customers with largest balance	43.00%	43.00%
Number of customers with largest balance of receivables	10	10

Goodwill and Acquired Intangi43

Goodwill and Acquired Intangibles (Details) $ in Thousands	9 Months Ended
	Oct. 03, 2015USD ($)
Changes in the carrying amount of goodwill
Balance as of January 3, 2015	$ 553,767
Effect of foreign currency translation	(1,356)
Balance as of October 3, 2015	$ 552,411

Goodwill and Acquired Intangi44

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Jan. 03, 2015
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 511,759	$ 514,146
Accumulated amortization	(200,954)	(154,814)
Acquired intangibles, net	310,805	359,332
In-process technology	1,600	1,600
Intangible assets, gross (excluding goodwill)	513,359	515,746
Intangible assets, net (excluding goodwill)	312,405	360,932
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	328,253	328,325
Accumulated amortization	(114,359)	(84,822)
Acquired intangibles, net	213,894	243,503
Agreements and relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	173,387	175,202
Accumulated amortization	(81,333)	(65,512)
Acquired intangibles, net	92,054	109,690
Tradenames Trademarks And Patents [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	10,119	10,619
Accumulated amortization	(5,262)	(4,480)
Acquired intangibles, net	$ 4,857	$ 6,139
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Expected time for completion of in-process research and development	3 months
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Expected time for completion of in-process research and development	6 months

Goodwill and Acquired Intangi45

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Amortization of acquired intangibles
Cost of product and maintenance	$ 10,107	$ 10,071	$ 30,385	$ 26,260
Amortization of acquired intangibles	5,687	6,316	18,037	17,105
Total amortization of acquired intangibles	$ 15,794	$ 16,387	$ 48,422	$ 43,365

Goodwill and Acquired Intangi46

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Estimated amortization expense
2015 – remaining period	$ 15,783
2,016	57,281
2,017	52,596
2,018	48,922
2,019	42,927
Thereafter	93,296
Acquired intangibles, net	$ 310,805	$ 359,332

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 24,117	$ 22,877	$ 67,681	$ 60,818
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	662	633	1,789	1,600
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	968	926	2,615	2,338
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	5,764	5,930	16,447	15,086
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	12,847	11,580	35,625	30,948
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 3,876	$ 3,808	$ 11,205	$ 10,846

Stock Based Compensation (Det48

Stock Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	9 Months Ended
	Oct. 03, 2015USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense, net of forfeitures	$ 167.7
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years 2 months

Income Taxes (Details Textual)

Income Taxes (Details Textual) $ in Millions	3 Months Ended
	Oct. 03, 2015USD ($)
Income Tax Disclosure [Abstract]
Tax benefit related to settlement of foreign tax examination	$ 13.8
Tax benefit from the release of reserves for certain tax positions	1.2
Change in deferred tax asset valuation allowance	12.6
Decrease in unrecognized tax benefits resulting from settlements with taxing authorities	9.5
Gross unrecognized tax benefits	88.9
Unrecognized tax benefits that would impact effective tax rate	$ 46.3

Restructuring and Other Charg50

Restructuring and Other Charges (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Jan. 03, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 303	$ 11,027	$ 4,164	$ 11,397
Restructuring reserve	2,067		2,067		$ 6,210
2015 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			4,080
Restructuring reserve	$ 900		$ 900

Restructuring and Other Charg51

Restructuring and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Restructuring Cost and Reserve [Line Items]
Beginning balance			$ 6,210
Restructuring and other charges, net	$ 303	$ 11,027	4,164	$ 11,397
Cash payments			(8,235)
Effect of foreign currency translation			(72)
Ending balance	2,067		2,067
Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			4,462
Cash payments			(6,841)
Effect of foreign currency translation			(20)
Ending balance	1,120		1,120
Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			1,267
Cash payments			(1,394)
Effect of foreign currency translation			(52)
Ending balance	466		466
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			481
Cash payments			0
Effect of foreign currency translation			0
Ending balance	481		481
2015 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			4,080
Ending balance	$ 900		900
2015 Restructuring Plan [Member] | Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			4,080
2015 Restructuring Plan [Member] | Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			0
2015 Restructuring Plan [Member] | Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			0
Prior restructuring plans [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			84
Prior restructuring plans [Member] | Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			(561)
Prior restructuring plans [Member] | Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			645
Prior restructuring plans [Member] | Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			$ 0

Restructuring and Other Charg52

Restructuring and Other Charges (Details 1) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 2,067	$ 6,210
Accounts payable and accrued liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	1,920
Other long-term liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 147

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 77,624	$ 37,535	$ 172,043	$ 93,868
Weighted-average common shares used to calculate basic net income per share (in shares)	284,818	284,462	284,880	283,141
2015 Warrants	20,548	17,580	20,031	15,070
Stock-based awards	7,820	7,953	7,988	7,384
Weighted average common shares used to calculate diluted net income per share (in shares)	313,186	309,995	312,899	305,595
Net income per share - basic (in usd per share)	$ 0.27	$ 0.13	$ 0.60	$ 0.33
Net income per share - diluted (in usd per share)	$ 0.25	$ 0.12	$ 0.55	$ 0.31

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	1,641	1,456	1,430	3,503
Options to purchase shares of common stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	1,472	1,403	1,362	3,479
Non-vested shares of restricted stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	169	53	68	24

Stock Repurchase Programs (Deta

Stock Repurchase Programs (Details) - USD ($) shares in Thousands, $ in Thousands	Jul. 04, 2015	Apr. 30, 2015	Jul. 31, 2014	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Jul. 02, 2015	Aug. 31, 2008	Feb. 29, 2008
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Authorized Amount								$ 578,800	$ 500,000	$ 500,000
Remaining number of shares authorized to be repurchased				1,100,000		1,100,000
Approved treasury stock repurchase, term	18 months		2 years
Treasury stock repurchase approved	$ 1,200,000	$ 450,000
Share Repurchased and Cost of Repurchased Shares [Abstract]
Shares repurchased				5,856	2,154	10,745	3,748
Total cost of repurchased shares				$ 120,059	$ 37,543	$ 213,135	$ 62,575

Contingencies (Details Textual)

Contingencies (Details Textual)	9 Months Ended
	Oct. 03, 2015
Contingencies (Textual) [Abstract]
General period of warranty on sales of hardware products	90 days

Other Comprehensive Income (Det

Other Comprehensive Income (Details 1) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Accumulated other comprehensive income
Foreign currency translation gain	$ (4,160)	$ 15,707
Changes in defined benefit plan liabilities	(2,844)	(3,401)
Unrealized holding gains on available-for-sale securities	55	41
Total accumulated other comprehensive income (loss)	$ (6,949)	$ 12,347

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Total revenue	$ 433,763	$ 400,496	$ 1,261,012	$ 1,157,834
Americas:
Total Americas	206,313	185,948	598,535	522,984
United States [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	199,628	179,883	579,011	505,084
Other Americas [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	6,685	6,065	19,524	17,900
Asia [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	106,627	89,644	301,835	264,946
EMEA [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	80,193	81,923	240,777	241,529
Japan [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	$ 40,630	$ 42,981	$ 119,865	$ 128,375

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Summary of long-lived assets by geography
Total long-lived assets	$ 227,689	$ 230,112
Americas:
Total Americas	191,701	201,338
United States [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	191,273	200,760
Other Americas [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	428	578
Asia [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	23,515	22,145
EMEA [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	11,939	5,951
Japan [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	$ 534	$ 678