Cadence Design Systems (CDNS) 10-Q 25 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Apr. 02, 2016shares
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	Apr. 2, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	300,862,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Current Assets:
Cash and cash equivalents	$ 810,400	$ 616,686
Short-term investments	96,317	94,498
Receivables, net	147,533	164,848
Inventories	56,634	56,762
Prepaid expenses and other	41,360	31,441
Total current assets	1,152,244	964,235
Property, plant and equipment, net of accumulated depreciation of $592,978 and $581,345, respectively	231,180	228,599
Goodwill	551,897	551,772
Acquired intangibles, net of accumulated amortization of $224,474 and $216,589, respectively	283,825	296,482
Long-term receivables	11,365	4,498
Other assets	308,513	299,929
Total assets	2,539,024	2,345,515
Current Liabilities:
Revolving credit facility	50,000	0
Accounts payable and accrued liabilities	195,216	238,022
Current portion of deferred revenue	322,684	298,285
Total current liabilities	567,900	536,307
Long-Term Liabilities:
Long-term portion of deferred revenue	38,447	30,209
Long-term debt	642,862	343,288
Other long-term liabilities	55,763	59,596
Total long-term liabilities	$ 737,072	$ 433,093
Commitments and contingencies
Stockholders' Equity:
Common stock and capital in excess of par value	$ 1,844,287	$ 1,863,086
Treasury stock, at cost	(587,348)	(400,555)
Accumulated deficit	(15,622)	(73,991)
Accumulated other comprehensive loss	(7,265)	(12,425)
Total stockholders’ equity	1,234,052	1,376,115
Total liabilities and stockholders’ equity	$ 2,539,024	$ 2,345,515

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Statement of Financial Position [Abstract]
Accumulated depreciation on property, plant and equipment	$ 592,978	$ 581,345
Accumulated amortization on acquired intangibles assets	$ 224,474	$ 216,589

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Revenue:
Product and maintenance	$ 411,744	$ 383,637
Services	36,118	27,729
Total revenue	447,862	411,366
Costs and Expenses:
Cost of product and maintenance	44,181	42,059
Cost of services	17,873	18,526
Marketing and sales	99,200	100,268
Research and development	179,906	162,996
General and administrative	28,300	27,642
Amortization of acquired intangibles	5,780	6,231
Restructuring and other charges	14,586	4,359
Total costs and expenses	389,826	362,081
Income from operations	58,036	49,285
Interest expense	(5,357)	(11,754)
Other income, net	4,763	4,781
Income before provision for income taxes	57,442	42,312
Provision for income taxes	6,880	6,053
Net income	$ 50,562	$ 36,259
Net income per share - basic (in usd per share)	$ 0.17	$ 0.13
Net income per share - diluted (in usd per share)	$ 0.17	$ 0.12
Weighted average common shares outstanding - basic (in shares)	296,615	284,523
Weighted average common shares outstanding - diluted (in shares)	303,434	311,847

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 50,562	$ 36,259
Other comprehensive income (loss), net of tax effects:
Foreign currency translation adjustments	4,214	(8,890)
Changes in unrealized holding gains or losses on available-for-sale securities, net of reclassification adjustment for realized gains and losses	865	65
Changes in defined benefit plan liabilities	81	291
Total other comprehensive income (loss), net of tax effects	5,160	(8,534)
Comprehensive income	$ 55,722	$ 27,725

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Statement of Cash Flows [Abstract]
Cash and cash equivalents at beginning of period	$ 616,686	$ 932,161
Cash flows from operating activities:
Net income	50,562	36,259
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	31,231	29,433
Amortization of debt discount and fees	255	5,945
Stock-based compensation	24,632	21,861
Gain on investments, net	(2,617)	(1,270)
Deferred income taxes	1,623	1,864
Other non-cash items	209	929
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	11,618	(12,450)
Inventories	(3,714)	1,682
Prepaid expenses and other	(10,132)	(10,004)
Other assets	(3,595)	3,627
Accounts payable and accrued liabilities	(42,557)	(44,754)
Deferred revenue	30,710	16,812
Other long-term liabilities	(5,034)	(3,246)
Net cash provided by operating activities	83,191	46,688
Cash flows from investing activities:
Purchases of available-for-sale securities	(20,525)	(33,161)
Proceeds from the sale of available-for-sale securities	1,000	20,551
Proceeds from the maturity of available-for-sale securities	19,000	10,350
Proceeds from the sale of long-term investments	2,583	1,364
Purchases of property, plant and equipment	(12,116)	(7,520)
Cash paid in business combinations and asset acquisitions, net of cash acquired	(3,853)	0
Net cash used for investing activities	(13,911)	(8,416)
Cash flows from financing activities:
Proceeds from term loans	300,000	0
Proceeds from revolving credit facility	50,000	0
Payment of convertible notes	0	(53,862)
Payment of convertible notes embedded conversion derivative liability	0	(77,139)
Proceeds from convertible notes hedges	0	77,139
Payment of debt issuance costs	(542)	0
Excess tax benefits from stock-based compensation	0	6,482
Proceeds from issuance of common stock	24,200	24,609
Stock received for payment of employee taxes on vesting of restricted stock	(15,225)	(14,114)
Payments for repurchases of common stock	(240,000)	(36,797)
Net cash provided by (used for) financing activities	118,433	(73,682)
Effect of exchange rate changes on cash and cash equivalents	6,001	(9,015)
Increase (decrease) in cash and cash equivalents	193,714	(44,425)
Cash and cash equivalents at end of period	810,400	887,736
Supplemental cash flow information:
Cash paid for interest	109	125
Cash paid for taxes, net	$ 4,799	$ 10,868

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 02, 2016
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 United States generally accepted accounting principles, or U.S. GAAP, 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 2, 2016 . 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. Use of Estimates Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP 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. New Accounting Standards In March 2016, the Financial Accounting Standards Board, or FASB, issued a new accounting standard intended to simplify various aspects related to how stock-based awards are accounted for and presented in the financial statements. The new standard: (a) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (b) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (c) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (d) modifies statutory withholding tax requirements, and (e) provides for a policy election to account for forfeitures as they occur. The guidance is effective in the first quarter of fiscal 2017 and early adoption is permitted if all amendments are adopted in the same period. Cadence elected to early adopt the new standard during the first quarter of fiscal 2016. As a result of early adoption, Cadence recorded all income tax effects of share-based awards in its provision for income taxes in the condensed consolidated income statements. Cadence also recorded a cumulative effect adjustment of approximately $7.8 million as a reduction of opening accumulated deficit on Cadence’s condensed consolidated balance sheets. The cumulative effect adjustment was comprised of approximately $8.1 million related to the recognition of income tax benefits in excess of compensation expense, offset by $0.3 million related to the policy election to recognize the impact of forfeitures on stock-based compensation expense as they occur. Additionally, Cadence adopted the change in presentation in the condensed consolidated statement of cash flows related to excess tax benefits on a prospective basis. Accordingly, prior periods have not been adjusted. There was no impact for the change in presentation in the statement of cash flows related to statutory tax withholding requirements as Cadence has historically classified the statutory tax withholding as a financing activity in its consolidated statement of cash flows. In April 2015, the FASB issued a new accounting standard requiring that debt issuance costs be presented in the balance sheet as a direct deduction from the associated debt liability. The new standard became effective for Cadence in the first quarter of fiscal 2016 and required retrospective application. As a result, prior period balances have been reclassified to conform to the current period presentation. Adoption of this standard did not have a material impact on Cadence’s consolidated balance sheets. In May 2014, the FASB issued a comprehensive revenue recognition standard for revenue associated with the delivery of goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date of December 15, 2016. Accordingly, the updated standard is effective for Cadence in the first quarter of fiscal 2018. In March 2016, the FASB finalized its amendments to the guidance in the new standard on assessing whether an entity is a principal or an agent in a revenue transaction. This conclusion impacts whether an entity reports revenue on a gross or net basis. In April 2016, the FASB finalized additional amendments to the guidance in the new revenue standard on identifying performance obligations and accounting for licenses of intellectual property. Cadence has not yet selected a transition method and is currently evaluating the effect that the updated standard, and the recently issued amendments, will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued a new accounting standard that will impact certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The updated standard is effective for Cadence in the first quarter of fiscal 2018, and early adoption is permitted. Cadence is currently evaluating the effect the updated standard will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued a new accounting standard requiring, among other things, the recognition of lease assets and lease liabilities on the balance sheet by lessees for certain lease arrangements that are classified as operating leases under the previous standard. The updated standard is effective for Cadence in the first quarter of fiscal 2019, and early adoption is permitted. Cadence is currently evaluating the effect the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued a new accounting standard intended to simplify the accounting for equity method investments when there is an increase in the level of ownership interest or degree of influence. The new standard is effective for Cadence in the first quarter of fiscal 2017 and requires prospective application. Adoption of this standard is not expected to have a material impact on Cadence’s consolidated financial statements.

Debt

Debt	3 Months Ended
	Apr. 02, 2016
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of April 2, 2016 and January 2, 2016 was as follows: April 2, 2016 January 2, 2016 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Carrying Value Principal Unamortized Discount and Debt Issuance Costs Carrying Value Revolving Credit Facility 50,000 — 50,000 — — — 2019 Term Loan $ 300,000 $ (583 ) $ 299,417 $ — $ — $ — 2024 Notes 350,000 (6,555 ) 343,445 350,000 (6,712 ) 343,288 Total outstanding debt $ 700,000 $ (7,138 ) $ 692,862 $ 350,000 $ (6,712 ) $ 343,288 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. As of April 2, 2016 and April 4, 2015 , outstanding borrowings under the revolving credit facility were $50.0 million and $0 , respectively. 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 3.00 to 1. As of April 2, 2016 and January 2, 2016 , Cadence was in compliance with all financial covenants associated with the revolving credit facility. 2019 Term Loan On January 28, 2016, Cadence entered into a $300.0 million three -year senior unsecured non-amortizing term loan facility due on January 28, 2019 , or the 2019 Term Loan, with a group of lenders led by JPMorgan Chase Bank, N.A., as administrative agent. The 2019 Term Loan is unsecured, and the proceeds will be used for general corporate purposes, including the repurchase of common stock. Amounts outstanding under the 2019 Term Loan initially accrue interest at a rate equal to LIBOR plus a margin of 1.125% per annum, which may increase to a rate equal to LIBOR plus a margin of up to 1.875% per annum, depending on Cadence’s leverage ratio. The covenants of the 2019 Term Loan are generally consistent with Cadence’s existing five-year senior unsecured revolving credit facility. In addition, the term loan agreement contains certain financial covenants that require Cadence to maintain a funded debt to EBITDA ratio not greater than 2.75 to 1 , with a step-up to 3.25 to 1 for one year following an acquisition by Cadence of at least $250.0 million that results in a pro forma leverage ratio between 2.50 to 1 and 3.00 to 1 . As of April 2, 2016 , Cadence was in compliance with all financial covenants associated with the 2019 Term Loan. 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. For information regarding the impact of new accounting standards on the presentation of debt issuance costs, see Note 1 under the heading “New Accounting Standards.”

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	3 Months Ended
	Apr. 02, 2016
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 April 2, 2016 and January 2, 2016 were as follows: As of April 2, January 2, (In thousands) Cash and cash equivalents $ 810,400 $ 616,686 Short-term investments 96,317 94,498 Cash, cash equivalents and short-term investments $ 906,717 $ 711,184 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 April 2, 2016 and January 2, 2016 : As of April 2, January 2, (In thousands) Cash and interest bearing deposits $ 330,253 $ 255,995 Money market funds 480,147 360,691 Total cash and cash equivalents $ 810,400 $ 616,686 Short-Term Investments The following tables summarize Cadence’s short-term investments as of April 2, 2016 and January 2, 2016 : As of April 2, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Corporate debt securities $ 30,590 $ 15 $ (13 ) $ 30,592 Bank certificates of deposit 14,549 3 (4 ) 14,548 United States Treasury securities 46,291 32 (3 ) 46,320 Commercial paper 1,494 — — 1,494 Marketable debt securities 92,924 50 (20 ) 92,954 Marketable equity securities 2,319 1,098 (54 ) 3,363 Total short-term investments $ 95,243 $ 1,148 $ (74 ) $ 96,317 As of January 2, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Corporate debt securities $ 34,905 $ 1 $ (77 ) $ 34,829 Bank certificates of deposit 15,049 1 (4 ) 15,046 United States Treasury securities 36,372 2 (88 ) 36,286 United States government agency securities 4,151 1 — 4,152 Commercial paper 1,993 — — 1,993 Marketable debt securities 92,470 5 (169 ) 92,306 Marketable equity securities 1,817 375 — 2,192 Total short-term investments $ 94,287 $ 380 $ (169 ) $ 94,498 As of April 2, 2016 , no securities held by Cadence had been in an unrealized loss position for more than 12 months . The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of April 2, 2016 , 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 $ 64,587 $ 64,600 Due in one to three years 28,337 28,354 Total marketable debt securities included in short-term investments $ 92,924 $ 92,954 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.

Receivables, net

Receivables, net	3 Months Ended
	Apr. 02, 2016
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of April 2, 2016 and January 2, 2016 were as follows: As of April 2, January 2, (In thousands) Accounts receivable $ 82,404 $ 107,041 Unbilled accounts receivable 65,129 57,807 Long-term receivables 11,365 4,498 Total receivables 158,898 169,346 Less allowance for doubtful accounts — — Total receivables, net $ 158,898 $ 169,346 Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of April 2, 2016 , no one customer accounted for 10% or more of Cadence’s total receivables. As of January 2, 2016 , one customer accounted for 12% of Cadence’s total receivables, and no other customer accounted for 10% or more of Cadence’s total receivables. As of April 2, 2016 , approximately 41% of Cadence’s total receivables were attributable to the ten customers with the largest balances of total receivables. As of January 2, 2016 , approximately 45% of Cadence’s total receivables were attributable to the ten customers with the largest balances of total receivables.

Stock Repurchase Programs

Stock Repurchase Programs	3 Months Ended
	Apr. 02, 2016
Equity [Abstract]
STOCK REPURCHASE PROGRAMS	STOCK REPURCHASE PROGRAMS In July 2015, Cadence’s Board of Directors approved an 18 -month plan to repurchase shares of Cadence common stock of up to an aggregate of $1.2 billion , beginning in the third quarter of fiscal 2015. The actual timing and amount of repurchases are 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. Total repurchase authorizations that remained in effect as of April 2, 2016 were as follows: Authorization Date Amount Remaining Authorization (In thousands) August 2008 $ 500,000 141,083 July 2015 578,804 578,804 Total remaining authorization $ 719,887 The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three months ended April 2, 2016 and April 4, 2015 were as follows: Three Months Ended April 2, April 4, (In thousands) Shares repurchased 11,556 2,001 Total cost of repurchased shares $ 240,000 $ 36,797 For additional information regarding share repurchases, see the discussion under Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds.”

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Apr. 02, 2016
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 months ended April 2, 2016 and April 4, 2015 as follows: Three Months Ended April 2, April 4, (In thousands) Cost of product and maintenance $ 464 $ 569 Cost of services 681 832 Marketing and sales 5,536 5,447 Research and development 13,897 11,377 General and administrative 4,054 3,636 Total stock-based compensation expense $ 24,632 $ 21,861 Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $163.8 million as of April 2, 2016 , which will be recognized over the remaining vesting period. The remaining weighted-average vesting period of unvested awards is 2.3 years . For information regarding the impact of new accounting standards impacting stock-based compensation, see Note 1 under the heading “New Accounting Standards.”

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	3 Months Ended
	Apr. 02, 2016
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 three months ended April 2, 2016 were as follows: Gross Carrying Amount (In thousands) Balance as of January 2, 2016 $ 551,772 Goodwill resulting from acquisitions 533 Effect of foreign currency translation (408 ) Balance as of April 2, 2016 $ 551,897 Acquired Intangibles, Net Acquired intangibles as of April 2, 2016 were as follows, excluding intangibles that were fully amortized as of January 2, 2016 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 326,359 $ (129,967 ) $ 196,392 Agreements and relationships 172,234 (88,813 ) 83,421 Tradenames, trademarks and patents 9,706 (5,694 ) 4,012 Total acquired intangibles $ 508,299 $ (224,474 ) $ 283,825 Acquired intangibles as of January 2, 2016 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 $ 329,627 $ (124,097 ) $ 205,530 Agreements and relationships 173,325 (86,808 ) 86,517 Tradenames, trademarks and patents 10,119 (5,684 ) 4,435 Total acquired intangibles $ 513,071 $ (216,589 ) $ 296,482 Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization of acquired intangibles for the three months ended April 2, 2016 and April 4, 2015 was as follows: Three Months Ended April 2, April 4, (In thousands) Cost of product and maintenance $ 10,663 $ 10,173 Amortization of acquired intangibles 5,780 6,231 Total amortization of acquired intangibles $ 16,443 $ 16,404 Estimated amortization expense for intangible assets with definite lives for the following five fiscal years and thereafter is as follows: (In thousands) 2016 – remaining period $ 42,616 2017 54,005 2018 50,157 2019 43,106 2020 37,868 Thereafter 56,073 Total estimated amortization expense $ 283,825

Restructuring and Other Charges

Restructuring and Other Charges	3 Months Ended
	Apr. 02, 2016
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 three months ended April 2, 2016 , Cadence initiated a restructuring plan, or the 2016 Restructuring Plan, and recorded restructuring and other charges of approximately $14.4 million related to severance payments and termination benefits. As of April 2, 2016 , total liabilities related to the 2016 Restructuring Plan were $8.2 million . Cadence expects to make cash payments for severance and related benefits for the 2016 Restructuring Plan through fiscal 2016. The following table presents activity relating to Cadence’s restructuring plans during the three months ended April 2, 2016 : Severance and Benefits Excess Facilities Total (In thousands) Balance, January 2, 2016 $ 751 $ 386 $ 1,137 Restructuring and other charges (credits): 2016 Restructuring Plan 14,439 — 14,439 Prior restructuring plans 20 127 147 Non-cash charges — (45 ) (45 ) Cash payments (7,048 ) (166 ) (7,214 ) Effect of foreign currency translation 284 (13 ) 271 Balance, April 2, 2016 $ 8,446 $ 289 $ 8,735 The remaining accrual for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of April 2, 2016 (In thousands) Accounts payable and accrued liabilities $ 8,642 Other long-term liabilities 93 Total liabilities $ 8,735

Net Income per Share

Net Income per Share	3 Months Ended
	Apr. 02, 2016
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 months ended April 2, 2016 and April 4, 2015 are as follows: Three Months Ended April 2, April 4, (In thousands, except per share amounts) Net income $ 50,562 $ 36,259 Weighted average common shares used to calculate basic net income per share 296,615 284,523 2015 Warrants — 18,910 Stock-based awards 6,819 8,414 Weighted average common shares used to calculate diluted net income per share 303,434 311,847 Net income per share - basic $ 0.17 $ 0.13 Net income per share - diluted $ 0.17 $ 0.12 The 2015 Warrants expired in December 2015. For an additional description of the 2015 Warrants, see Note 3 in the notes to consolidated financial statements in Cadence’s Annual Report on Form 10-K for the fiscal year ended January 2, 2016 . The following table presents shares of Cadence’s common stock outstanding for the three months ended April 2, 2016 and April 4, 2015 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 April 2, April 4, (In thousands) Options to purchase shares of common stock 749 1,113 Non-vested shares of restricted stock 83 13 Total potential common shares excluded 832 1,126

Fair Value

Fair Value	3 Months Ended
	Apr. 02, 2016
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 months ended April 2, 2016 . 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 April 2, 2016 and January 2, 2016 : Fair Value Measurements as of April 2, 2016 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 480,147 $ 480,147 $ — $ — Short-term investments: Corporate debt securities 30,592 — 30,592 — Bank certificates of deposit 14,548 — 14,548 — United States Treasury securities 46,320 46,320 — — Commercial paper 1,494 — 1,494 — Marketable equity securities 3,363 3,363 — — Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust 22,597 22,597 — — Foreign currency exchange contracts 2,914 — 2,914 — Total Assets $ 601,975 $ 552,427 $ 49,548 $ — As of April 2, 2016, Cadence did not have any financial liabilities requiring a recurring fair value measurement. Fair Value Measurements as of January 2, 2016 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 360,691 $ 360,691 $ — $ — Short-term investments: Corporate debt securities 34,829 — 34,829 — Bank certificates of deposit 15,046 — 15,046 — United States Treasury securities 36,286 36,286 — — United States government agency securities 4,152 4,152 — — Commercial paper 1,993 — 1,993 — Marketable equity securities 2,192 2,192 — — Trading securities held in NQDC trust 24,905 24,905 — — Total Assets $ 480,094 $ 428,226 $ 51,868 $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts 362 — 362 — Total Liabilities $ 362 $ — $ 362 $ —

Contingencies

Contingencies	3 Months Ended
	Apr. 02, 2016
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 months ended April 2, 2016 and April 4, 2015 . 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 months ended April 2, 2016 and April 4, 2015 .

Other Comprehensive Income

Other Comprehensive Income	3 Months Ended
	Apr. 02, 2016
Other Comprehensive Income (Loss), Net of Tax [Abstract]
OTHER COMPREHENSIVE INCOME	OTHER COMPREHENSIVE LOSS Cadence’s other comprehensive loss is comprised of foreign currency translation 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 loss was comprised of the following as of April 2, 2016 and January 2, 2016 : As of April 2, January 2, (In thousands) Foreign currency translation loss $ (5,355 ) $ (9,569 ) Changes in defined benefit plan liabilities (2,984 ) (3,066 ) Unrealized holding gains on available-for-sale securities 1,074 210 Total accumulated other comprehensive loss $ (7,265 ) $ (12,425 ) For the three months ended April 2, 2016 and April 4, 2015 there were no significant amounts reclassified from accumulated other comprehensive loss to net income.

Segment Reporting

Segment Reporting	3 Months Ended
	Apr. 02, 2016
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 months ended April 2, 2016 and April 4, 2015 : Three Months Ended April 2, April 4, (In thousands) Americas: United States $ 210,022 $ 187,207 Other Americas 9,241 5,414 Total Americas 219,263 192,621 Asia 99,179 98,782 Europe, Middle East and Africa 85,464 78,570 Japan 43,956 41,393 Total $ 447,862 $ 411,366 The following table presents a summary of long-lived assets by geography as of April 2, 2016 and January 2, 2016 : As of April 2, January 2, (In thousands) Americas: United States $ 192,005 $ 189,665 Other Americas 427 387 Total Americas 192,432 190,052 Asia 25,364 24,767 Europe, Middle East and Africa 12,435 12,832 Japan 949 948 Total $ 231,180 $ 228,599

Subsequent Event

Subsequent Event	3 Months Ended
	Apr. 02, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT On April 8, 2016, Cadence entered into a definitive agreement to acquire Rocketick Technologies Ltd., or Rocketick, an Israel-based privately held developer and provider of multicore parallel simulation software used in system-on-chip verification. A trust for the benefit of the children of Lip-Bu Tan, Cadence’s president, chief executive officer and director, owns less than 2% of Rocketick, and Mr. Tan and his wife serve as co-trustees of the trust and disclaim pecuniary and economic interest in the trust. The Board of Directors of Cadence reviewed the transaction and concluded that it was in the best interests of Cadence to proceed with such transaction. Mr. Tan recused himself from the Board of Directors’ discussion of the valuation of Rocketick and on whether to proceed with the transaction. A financial advisor provided a fairness opinion to Cadence in connection with the transaction. The completion of the transaction is subject to certain conditions, including regulatory approval.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Apr. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP 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 three months ended April 2, 2016 .
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.
New Accounting Standards	In March 2016, the Financial Accounting Standards Board, or FASB, issued a new accounting standard intended to simplify various aspects related to how stock-based awards are accounted for and presented in the financial statements. The new standard: (a) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (b) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (c) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (d) modifies statutory withholding tax requirements, and (e) provides for a policy election to account for forfeitures as they occur. The guidance is effective in the first quarter of fiscal 2017 and early adoption is permitted if all amendments are adopted in the same period. Cadence elected to early adopt the new standard during the first quarter of fiscal 2016. As a result of early adoption, Cadence recorded all income tax effects of share-based awards in its provision for income taxes in the condensed consolidated income statements. Cadence also recorded a cumulative effect adjustment of approximately $7.8 million as a reduction of opening accumulated deficit on Cadence’s condensed consolidated balance sheets. The cumulative effect adjustment was comprised of approximately $8.1 million related to the recognition of income tax benefits in excess of compensation expense, offset by $0.3 million related to the policy election to recognize the impact of forfeitures on stock-based compensation expense as they occur. Additionally, Cadence adopted the change in presentation in the condensed consolidated statement of cash flows related to excess tax benefits on a prospective basis. Accordingly, prior periods have not been adjusted. There was no impact for the change in presentation in the statement of cash flows related to statutory tax withholding requirements as Cadence has historically classified the statutory tax withholding as a financing activity in its consolidated statement of cash flows. In April 2015, the FASB issued a new accounting standard requiring that debt issuance costs be presented in the balance sheet as a direct deduction from the associated debt liability. The new standard became effective for Cadence in the first quarter of fiscal 2016 and required retrospective application. As a result, prior period balances have been reclassified to conform to the current period presentation. Adoption of this standard did not have a material impact on Cadence’s consolidated balance sheets. In May 2014, the FASB issued a comprehensive revenue recognition standard for revenue associated with the delivery of goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date of December 15, 2016. Accordingly, the updated standard is effective for Cadence in the first quarter of fiscal 2018. In March 2016, the FASB finalized its amendments to the guidance in the new standard on assessing whether an entity is a principal or an agent in a revenue transaction. This conclusion impacts whether an entity reports revenue on a gross or net basis. In April 2016, the FASB finalized additional amendments to the guidance in the new revenue standard on identifying performance obligations and accounting for licenses of intellectual property. Cadence has not yet selected a transition method and is currently evaluating the effect that the updated standard, and the recently issued amendments, will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued a new accounting standard that will impact certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The updated standard is effective for Cadence in the first quarter of fiscal 2018, and early adoption is permitted. Cadence is currently evaluating the effect the updated standard will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued a new accounting standard requiring, among other things, the recognition of lease assets and lease liabilities on the balance sheet by lessees for certain lease arrangements that are classified as operating leases under the previous standard. The updated standard is effective for Cadence in the first quarter of fiscal 2019, and early adoption is permitted. Cadence is currently evaluating the effect the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued a new accounting standard intended to simplify the accounting for equity method investments when there is an increase in the level of ownership interest or degree of influence. The new standard is effective for Cadence in the first quarter of fiscal 2017 and requires prospective application. Adoption of this standard is not expected to have a material impact on Cadence’s consolidated financial statements.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Apr. 02, 2016
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of April 2, 2016 and January 2, 2016 was as follows: April 2, 2016 January 2, 2016 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Carrying Value Principal Unamortized Discount and Debt Issuance Costs Carrying Value Revolving Credit Facility 50,000 — 50,000 — — — 2019 Term Loan $ 300,000 $ (583 ) $ 299,417 $ — $ — $ — 2024 Notes 350,000 (6,555 ) 343,445 350,000 (6,712 ) 343,288 Total outstanding debt $ 700,000 $ (7,138 ) $ 692,862 $ 350,000 $ (6,712 ) $ 343,288

Cash, Cash Equivalents and In23

Cash, Cash Equivalents and Investments (Tables)	3 Months Ended
	Apr. 02, 2016
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 April 2, 2016 and January 2, 2016 were as follows: As of April 2, January 2, (In thousands) Cash and cash equivalents $ 810,400 $ 616,686 Short-term investments 96,317 94,498 Cash, cash equivalents and short-term investments $ 906,717 $ 711,184
Summary of cash and cash equivalents	The following table summarizes Cadence’s cash and cash equivalents at fair value as of April 2, 2016 and January 2, 2016 : As of April 2, January 2, (In thousands) Cash and interest bearing deposits $ 330,253 $ 255,995 Money market funds 480,147 360,691 Total cash and cash equivalents $ 810,400 $ 616,686
Summary of short-term investments	The following tables summarize Cadence’s short-term investments as of April 2, 2016 and January 2, 2016 : As of April 2, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Corporate debt securities $ 30,590 $ 15 $ (13 ) $ 30,592 Bank certificates of deposit 14,549 3 (4 ) 14,548 United States Treasury securities 46,291 32 (3 ) 46,320 Commercial paper 1,494 — — 1,494 Marketable debt securities 92,924 50 (20 ) 92,954 Marketable equity securities 2,319 1,098 (54 ) 3,363 Total short-term investments $ 95,243 $ 1,148 $ (74 ) $ 96,317 As of January 2, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Corporate debt securities $ 34,905 $ 1 $ (77 ) $ 34,829 Bank certificates of deposit 15,049 1 (4 ) 15,046 United States Treasury securities 36,372 2 (88 ) 36,286 United States government agency securities 4,151 1 — 4,152 Commercial paper 1,993 — — 1,993 Marketable debt securities 92,470 5 (169 ) 92,306 Marketable equity securities 1,817 375 — 2,192 Total short-term investments $ 94,287 $ 380 $ (169 ) $ 94,498
Contractual maturity of marketable debt investments	The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of April 2, 2016 , 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 $ 64,587 $ 64,600 Due in one to three years 28,337 28,354 Total marketable debt securities included in short-term investments $ 92,924 $ 92,954

Receivables, net (Tables)

Receivables, net (Tables)	3 Months Ended
	Apr. 02, 2016
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of April 2, 2016 and January 2, 2016 were as follows: As of April 2, January 2, (In thousands) Accounts receivable $ 82,404 $ 107,041 Unbilled accounts receivable 65,129 57,807 Long-term receivables 11,365 4,498 Total receivables 158,898 169,346 Less allowance for doubtful accounts — — Total receivables, net $ 158,898 $ 169,346

Stock Repurchase Programs (Tabl

Stock Repurchase Programs (Tables)	3 Months Ended
	Apr. 02, 2016
Equity [Abstract]
Amount authorized for the repurchase of common stock by authorization date [Table Text Block]	Total repurchase authorizations that remained in effect as of April 2, 2016 were as follows: Authorization Date Amount Remaining Authorization (In thousands) August 2008 $ 500,000 141,083 July 2015 578,804 578,804 Total remaining authorization $ 719,887
Shares repurchased and the total cost of shares repurchased	The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three months ended April 2, 2016 and April 4, 2015 were as follows: Three Months Ended April 2, April 4, (In thousands) Shares repurchased 11,556 2,001 Total cost of repurchased shares $ 240,000 $ 36,797

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Apr. 02, 2016
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 months ended April 2, 2016 and April 4, 2015 as follows: Three Months Ended April 2, April 4, (In thousands) Cost of product and maintenance $ 464 $ 569 Cost of services 681 832 Marketing and sales 5,536 5,447 Research and development 13,897 11,377 General and administrative 4,054 3,636 Total stock-based compensation expense $ 24,632 $ 21,861

Goodwill and Acquired Intangi27

Goodwill and Acquired Intangibles (Tables)	3 Months Ended
	Apr. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during the three months ended April 2, 2016 were as follows: Gross Carrying Amount (In thousands) Balance as of January 2, 2016 $ 551,772 Goodwill resulting from acquisitions 533 Effect of foreign currency translation (408 ) Balance as of April 2, 2016 $ 551,897
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of April 2, 2016 were as follows, excluding intangibles that were fully amortized as of January 2, 2016 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 326,359 $ (129,967 ) $ 196,392 Agreements and relationships 172,234 (88,813 ) 83,421 Tradenames, trademarks and patents 9,706 (5,694 ) 4,012 Total acquired intangibles $ 508,299 $ (224,474 ) $ 283,825 Acquired intangibles as of January 2, 2016 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 $ 329,627 $ (124,097 ) $ 205,530 Agreements and relationships 173,325 (86,808 ) 86,517 Tradenames, trademarks and patents 10,119 (5,684 ) 4,435 Total acquired intangibles $ 513,071 $ (216,589 ) $ 296,482
Amortization of acquired intangibles	Amortization of acquired intangibles for the three months ended April 2, 2016 and April 4, 2015 was as follows: Three Months Ended April 2, April 4, (In thousands) Cost of product and maintenance $ 10,663 $ 10,173 Amortization of acquired intangibles 5,780 6,231 Total amortization of acquired intangibles $ 16,443 $ 16,404
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) 2016 – remaining period $ 42,616 2017 54,005 2018 50,157 2019 43,106 2020 37,868 Thereafter 56,073 Total estimated amortization expense $ 283,825

Restructuring and Other Charg28

Restructuring and Other Charges (Tables)	3 Months Ended
	Apr. 02, 2016
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 three months ended April 2, 2016 : Severance and Benefits Excess Facilities Total (In thousands) Balance, January 2, 2016 $ 751 $ 386 $ 1,137 Restructuring and other charges (credits): 2016 Restructuring Plan 14,439 — 14,439 Prior restructuring plans 20 127 147 Non-cash charges — (45 ) (45 ) Cash payments (7,048 ) (166 ) (7,214 ) Effect of foreign currency translation 284 (13 ) 271 Balance, April 2, 2016 $ 8,446 $ 289 $ 8,735
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 April 2, 2016 (In thousands) Accounts payable and accrued liabilities $ 8,642 Other long-term liabilities 93 Total liabilities $ 8,735

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Apr. 02, 2016
Earnings Per Share [Abstract]
Basic and diluted net income per share	The calculations for basic and diluted net income per share for the three months ended April 2, 2016 and April 4, 2015 are as follows: Three Months Ended April 2, April 4, (In thousands, except per share amounts) Net income $ 50,562 $ 36,259 Weighted average common shares used to calculate basic net income per share 296,615 284,523 2015 Warrants — 18,910 Stock-based awards 6,819 8,414 Weighted average common shares used to calculate diluted net income per share 303,434 311,847 Net income per share - basic $ 0.17 $ 0.13 Net income per share - diluted $ 0.17 $ 0.12
Potential shares of Cadence's common stock excluded	The following table presents shares of Cadence’s common stock outstanding for the three months ended April 2, 2016 and April 4, 2015 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 April 2, April 4, (In thousands) Options to purchase shares of common stock 749 1,113 Non-vested shares of restricted stock 83 13 Total potential common shares excluded 832 1,126

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Apr. 02, 2016
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 April 2, 2016 and January 2, 2016 : Fair Value Measurements as of April 2, 2016 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 480,147 $ 480,147 $ — $ — Short-term investments: Corporate debt securities 30,592 — 30,592 — Bank certificates of deposit 14,548 — 14,548 — United States Treasury securities 46,320 46,320 — — Commercial paper 1,494 — 1,494 — Marketable equity securities 3,363 3,363 — — Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust 22,597 22,597 — — Foreign currency exchange contracts 2,914 — 2,914 — Total Assets $ 601,975 $ 552,427 $ 49,548 $ — As of April 2, 2016, Cadence did not have any financial liabilities requiring a recurring fair value measurement. Fair Value Measurements as of January 2, 2016 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 360,691 $ 360,691 $ — $ — Short-term investments: Corporate debt securities 34,829 — 34,829 — Bank certificates of deposit 15,046 — 15,046 — United States Treasury securities 36,286 36,286 — — United States government agency securities 4,152 4,152 — — Commercial paper 1,993 — 1,993 — Marketable equity securities 2,192 2,192 — — Trading securities held in NQDC trust 24,905 24,905 — — Total Assets $ 480,094 $ 428,226 $ 51,868 $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts 362 — 362 — Total Liabilities $ 362 $ — $ 362 $ —

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)	3 Months Ended
	Apr. 02, 2016
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated other comprehensive income (loss) net of tax	Accumulated other comprehensive loss was comprised of the following as of April 2, 2016 and January 2, 2016 : As of April 2, January 2, (In thousands) Foreign currency translation loss $ (5,355 ) $ (9,569 ) Changes in defined benefit plan liabilities (2,984 ) (3,066 ) Unrealized holding gains on available-for-sale securities 1,074 210 Total accumulated other comprehensive loss $ (7,265 ) $ (12,425 )

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Apr. 02, 2016
Segment Reporting [Abstract]
Summary of revenue by geography	The following table presents a summary of revenue by geography for the three months ended April 2, 2016 and April 4, 2015 : Three Months Ended April 2, April 4, (In thousands) Americas: United States $ 210,022 $ 187,207 Other Americas 9,241 5,414 Total Americas 219,263 192,621 Asia 99,179 98,782 Europe, Middle East and Africa 85,464 78,570 Japan 43,956 41,393 Total $ 447,862 $ 411,366
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of April 2, 2016 and January 2, 2016 : As of April 2, January 2, (In thousands) Americas: United States $ 192,005 $ 189,665 Other Americas 427 387 Total Americas 192,432 190,052 Asia 25,364 24,767 Europe, Middle East and Africa 12,435 12,832 Japan 949 948 Total $ 231,180 $ 228,599

Basis of Presentation New Accou

Basis of Presentation New Accounting Standards (Details) $ in Millions	Apr. 02, 2016USD ($)
Accounting standards update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 7.8
Accounting standards update 2016-09, windfall tax benefit component [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	8.1
Accounting standards update 2016-09, forfeiture rate component [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ (0.3)

Debt (Details)

Debt (Details) - USD ($)	Apr. 02, 2016	Jan. 28, 2016	Jan. 02, 2016	Oct. 09, 2014
Debt Instrument [Line Items]
Principal	$ 700,000,000		$ 350,000,000
Unamortized discount and debt issuance costs	(7,138,000)		(6,712,000)
Carrying value	642,862,000		343,288,000
Carrying value	692,862,000		343,288,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Principal	50,000,000		0
Line of Credit, Current	50,000,000		0
Long-term Debt [Member] | Term Loan Due Twenty-Nineteen [Member]
Debt Instrument [Line Items]
Principal	300,000,000	$ 300,000,000	0
Unamortized discount and debt issuance costs	(583,000)		0
Carrying value	299,417,000		0
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Principal	350,000,000		350,000,000	$ 350,000,000
Unamortized discount and debt issuance costs	(6,555,000)		(6,712,000)	$ (1,400,000)
Carrying value	$ 343,445,000		$ 343,288,000

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual)	3 Months Ended
	Apr. 02, 2016USD ($)	Jan. 02, 2016USD ($)
Revolving Credit Facility [Member]
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	$ 50,000,000	$ 0
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, 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 April 2, 2016 and January 2, 2016.
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%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Covenant, Pro Forma Leverage Ratio	2.75
Debt Instrument, Covenant, Debt to EBITDA Ratio	3

Debt (Details Textual)

Debt (Details Textual) $ in Thousands	Jan. 28, 2016USD ($)	Oct. 09, 2014USD ($)	Apr. 02, 2016USD ($)	Apr. 04, 2015USD ($)	Jan. 02, 2016USD ($)
Debt Instrument [Line Items]
Payments of convertible notes			$ 0	$ 53,862
Cash paid for interest			(109)	(125)
Payment of convertible notes embedded conversion derivative liability			0	(77,139)
Proceeds from from convertible notes hedges			0	$ 77,139
Unamortized discount			$ 7,138		$ 6,712
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Covenant, Debt to EBITDA Ratio			3
Debt Instrument, Covenant, Pro Forma Leverage Ratio			2.75
Long-term Debt [Member] | Term Loan Due Twenty-Nineteen [Member]
Debt Instrument [Line Items]
Aggregate principal amount, issued	$ 300,000		$ 300,000		0
Unamortized discount			$ 583		0
Debt Instrument, Term	3 years
Debt Instrument, Maturity Date			Jan. 28, 2019
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Aggregate principal amount, issued		$ 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	$ 6,555		$ 6,712
Debt issuance costs		$ 6,200
London Interbank Offered Rate (LIBOR) [Member] | Long-term Debt [Member] | Term Loan Due Twenty-Nineteen [Member]
Debt Instrument [Line Items]
Debt Instrument, interest rate spread			1.125%
Scenario 1 [Member] | Long-term Debt [Member] | Term Loan Due Twenty-Nineteen [Member]
Debt Instrument [Line Items]
Debt Instrument, Covenant, Debt to EBITDA Ratio			2.75
Scenario 2 [Member] | Long-term Debt [Member] | Term Loan Due Twenty-Nineteen [Member]
Debt Instrument [Line Items]
Debt Instrument, Covenant, Debt to EBITDA Ratio			3.25
Debt Instrument, Covenant, Required Business Acquisition Consideration, Minimum			$ 250,000
Scenario 2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Long-term Debt [Member] | Term Loan Due Twenty-Nineteen [Member]
Debt Instrument [Line Items]
Debt Instrument, interest rate spread			1.875%
Minimum [Member] | Scenario 2 [Member] | Long-term Debt [Member] | Term Loan Due Twenty-Nineteen [Member]
Debt Instrument [Line Items]
Debt Instrument, Covenant, Pro Forma Leverage Ratio			2.50
Maximum [Member] | Scenario 2 [Member] | Long-term Debt [Member] | Term Loan Due Twenty-Nineteen [Member]
Debt Instrument [Line Items]
Debt Instrument, Covenant, Pro Forma Leverage Ratio			3

Cash, Cash Equivalents and In37

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016	Apr. 04, 2015	Jan. 03, 2015
Cash, Cash Equivalents and Investments [Abstract]
Cash and cash equivalents	$ 810,400	$ 616,686	$ 887,736	$ 932,161
Short-term investments	96,317	94,498
Cash, cash equivalents, and short-term investments	$ 906,717	$ 711,184

Cash, Cash Equivalents and In38

Cash, Cash Equivalents and Investments (Details 1) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016	Apr. 04, 2015	Jan. 03, 2015
Classified as cash and cash equivalents
Cash and interest bearing deposits	$ 330,253	$ 255,995
Money market funds	480,147	360,691
Total cash and cash equivalents	$ 810,400	$ 616,686	$ 887,736	$ 932,161

Cash, Cash Equivalents and In39

Cash, Cash Equivalents and Investments (Details 2) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Short-term investments
Amortized Cost	$ 95,243	$ 94,287
Gross Unrealized Gains	1,148	380
Gross Unrealized Losses	(74)	(169)
Fair Value	96,317	94,498
Corporate debt securities [Member]
Short-term investments
Amortized Cost	30,590	34,905
Gross Unrealized Gains	15	1
Gross Unrealized Losses	(13)	(77)
Fair Value	30,592	34,829
Bank certificates of deposit [Member]
Short-term investments
Amortized Cost	14,549	15,049
Gross Unrealized Gains	3	1
Gross Unrealized Losses	(4)	(4)
Fair Value	14,548	15,046
United States Treasury securities [Member]
Short-term investments
Amortized Cost	46,291	36,372
Gross Unrealized Gains	32	2
Gross Unrealized Losses	(3)	(88)
Fair Value	46,320	36,286
United States government agency securities [Member]
Short-term investments
Amortized Cost		4,151
Gross Unrealized Gains		1
Gross Unrealized Losses		0
Fair Value		4,152
Commercial paper [Member]
Short-term investments
Amortized Cost	1,494	1,993
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,494	1,993
Marketable debt securities [Member]
Short-term investments
Amortized Cost	92,924	92,470
Gross Unrealized Gains	50	5
Gross Unrealized Losses	(20)	(169)
Fair Value	92,954	92,306
Marketable equity securities [Member]
Short-term investments
Amortized Cost	2,319	1,817
Gross Unrealized Gains	1,098	375
Gross Unrealized Losses	(54)	0
Fair Value	$ 3,363	$ 2,192

Cash, Cash Equivalents and In40

Cash, Cash Equivalents and Investments (Details 3) $ in Thousands	Apr. 02, 2016USD ($)
Contractual maturity of marketable debt investments
Marketable Investments, Debt Maturities, Within One Year, Amortized Cost	$ 64,587
Marketable Investments, Debt Maturities, Year One Through Three, Amortized Cost	28,337
Marketable investments, Debt Maturities, Amortized Cost, Total	92,924
Marketable Investments, Debt Maturities, Within One Year, Fair Value	64,600
Marketable Investments, Debt Maturities, Year One Through Three, Fair Value	28,354
Marketable Investments, Debt Maturities, Fair Value, Total	$ 92,954

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Current and long-term receivables balances
Accounts receivable	$ 82,404	$ 107,041
Unbilled accounts receivable	65,129	57,807
Long-term receivables	11,365	4,498
Total receivables	158,898	169,346
Less allowance for doubtful accounts	0	0
Total receivables, net	$ 158,898	$ 169,346

Receivables, net (Details Textu

Receivables, net (Details Textual) - Customer	Apr. 02, 2016	Jan. 02, 2016
Accounts Receivable and Allowances for Doubtful Accounts (Textual) [Abstract]
Percentage of receivables, net attributable to single customer	10.00%	12.00%
Number of customers with receivables balance greater than ten percent of total balance	0	1
Percentage of receivables, net attributable to the ten customers with largest balance	41.00%	45.00%
Number of customers with largest balance of receivables	10	10

Stock Repurchase Programs (Deta

Stock Repurchase Programs (Details) - USD ($) shares in Thousands, $ in Thousands	Jul. 04, 2015	Apr. 02, 2016	Apr. 04, 2015	Jul. 02, 2015	Aug. 31, 2008
Equity, Class of Treasury Stock [Line Items]
Remaining authorized repurchase amount		$ 719,887
Approved treasury stock repurchase, term	18 months
Treasury stock repurchase approved	$ 1,200,000
Share Repurchased and Cost of Repurchased Shares [Abstract]
Shares repurchased		(11,556)	(2,001)
Total cost of repurchased shares		$ 240,000	$ 36,797
August 2008 [Member]
Equity, Class of Treasury Stock [Line Items]
Authorized repurchase amount					$ 500,000
Remaining authorized repurchase amount		141,083
July 2015 [Member]
Equity, Class of Treasury Stock [Line Items]
Authorized repurchase amount				$ 578,804
Remaining authorized repurchase amount		$ 578,804

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 24,632	$ 21,861
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	464	569
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	681	832
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	5,536	5,447
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	13,897	11,377
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 4,054	$ 3,636

Stock Based Compensation (Det45

Stock Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	3 Months Ended
	Apr. 02, 2016USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense, net of forfeitures	$ 163.8
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years 3 months

Goodwill and Acquired Intangi46

Goodwill and Acquired Intangibles (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)
Changes in the carrying amount of goodwill
Balance as of January 2, 2016	$ 551,772
Goodwill resulting from acquisitions	533
Effect of foreign currency translation	(408)
Balance as of April 2, 2016	$ 551,897

Goodwill and Acquired Intangi47

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 508,299	$ 513,071
Accumulated amortization	(224,474)	(216,589)
Acquired intangibles, net	283,825	296,482
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	326,359	329,627
Accumulated amortization	(129,967)	(124,097)
Acquired intangibles, net	196,392	205,530
Agreements and relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	172,234	173,325
Accumulated amortization	(88,813)	(86,808)
Acquired intangibles, net	83,421	86,517
Tradenames Trademarks And Patents [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	9,706	10,119
Accumulated amortization	(5,694)	(5,684)
Acquired intangibles, net	$ 4,012	$ 4,435

Goodwill and Acquired Intangi48

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Amortization of acquired intangibles
Cost of product and maintenance	$ 10,663	$ 10,173
Amortization of acquired intangibles	5,780	6,231
Total amortization of acquired intangibles	$ 16,443	$ 16,404

Goodwill and Acquired Intangi49

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Estimated amortization expense
2016 – remaining period	$ 42,616
2,017	54,005
2,018	50,157
2,019	43,106
2,020	37,868
Thereafter	56,073
Acquired intangibles, net	$ 283,825	$ 296,482

Restructuring and Other Charg50

Restructuring and Other Charges (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 14,586	$ 4,359
Restructuring reserve	8,735		$ 1,137
2016 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	14,439
Restructuring reserve	$ 8,200

Restructuring and Other Charg51

Restructuring and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 1,137
Restructuring and other charges, net	14,586	$ 4,359
Restructuring Activities Non Cash Charges Adjustments	(45)
Cash payments	(7,214)
Effect of foreign currency translation	271
Ending balance	8,735
Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	751
Restructuring Activities Non Cash Charges Adjustments	0
Cash payments	(7,048)
Effect of foreign currency translation	284
Ending balance	8,446
Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	386
Restructuring Activities Non Cash Charges Adjustments	(45)
Cash payments	(166)
Effect of foreign currency translation	(13)
Ending balance	289
2016 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net	14,439
Ending balance	8,200
2016 Restructuring Plan [Member] | Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net	14,439
2016 Restructuring Plan [Member] | Excess Facilities [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	147
Prior restructuring plans [Member] | Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net	20
Prior restructuring plans [Member] | Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net	$ 127

Restructuring and Other Charg52

Restructuring and Other Charges (Details 1) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 8,735	$ 1,137
Accounts payable and accrued liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	8,642
Other long-term liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 93

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 50,562	$ 36,259
Weighted-average common shares used to calculate basic net income per share (in shares)	296,615	284,523
2015 Warrants	0	18,910
Stock-based awards	6,819	8,414
Weighted average common shares used to calculate diluted net income per share (in shares)	303,434	311,847
Net income per share - basic (in usd per share)	$ 0.17	$ 0.13
Net income per share - diluted (in usd per share)	$ 0.17	$ 0.12

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	832	1,126
Options to purchase shares of common stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	749	1,113
Non-vested shares of restricted stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	83	13

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Short-term investments:
Available-for-sale securities	$ 96,317	$ 94,498
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	22,597	24,905
Foreign Currency Contract, Asset, Fair Value Disclosure	2,914
Total Assets	601,975	480,094
Liabilities
Foreign currency exchange contracts		362
Total Liabilities		362
Money market funds [Member]
Assets
Cash equivalents	480,147	360,691
Corporate debt securities [Member]
Short-term investments:
Available-for-sale securities	30,592	34,829
Bank certificates of deposit [Member]
Short-term investments:
Available-for-sale securities	14,548	15,046
United States Treasury securities [Member]
Short-term investments:
Available-for-sale securities	46,320	36,286
United States government agency securities [Member]
Short-term investments:
Available-for-sale securities		4,152
Commercial paper [Member]
Short-term investments:
Available-for-sale securities	1,494	1,993
Marketable equity securities [Member]
Short-term investments:
Available-for-sale securities	3,363	2,192
Fair Value Measurements, Level 1 [Member]
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	22,597	24,905
Foreign Currency Contract, Asset, Fair Value Disclosure	0
Total Assets	552,427	428,226
Liabilities
Foreign currency exchange contracts		0
Total Liabilities		0
Fair Value Measurements, Level 1 [Member] | Money market funds [Member]
Assets
Cash equivalents	480,147	360,691
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	46,320	36,286
Fair Value Measurements, Level 1 [Member] | United States government agency securities [Member]
Short-term investments:
Available-for-sale securities		4,152
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	3,363	2,192
Fair Value Measurements, Level 2 [Member]
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	0	0
Foreign Currency Contract, Asset, Fair Value Disclosure	2,914
Total Assets	49,548	51,868
Liabilities
Foreign currency exchange contracts		362
Total Liabilities		362
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	30,592	34,829
Fair Value Measurements, Level 2 [Member] | Bank certificates of deposit [Member]
Short-term investments:
Available-for-sale securities	14,548	15,046
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
Fair Value Measurements, Level 2 [Member] | Commercial paper [Member]
Short-term investments:
Available-for-sale securities	1,494	1,993
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
Foreign Currency Contract, Asset, Fair Value Disclosure	0
Total Assets	0	0
Liabilities
Foreign currency exchange contracts		0
Total Liabilities		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
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

Contingencies (Details Textual)

Contingencies (Details Textual)	3 Months Ended
	Apr. 02, 2016
Contingencies (Textual) [Abstract]
General period of warranty on sales of hardware products	90 days

Other Comprehensive Income (Det

Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 0	$ 0
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation gain	(5,355)		$ (9,569)
Changes in defined benefit plan liabilities	(2,984)		(3,066)
Unrealized holding gains on available-for-sale securities	1,074		210
Total accumulated other comprehensive loss	$ (7,265)		$ (12,425)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Total revenue	$ 447,862	$ 411,366
Americas:
Total Americas	219,263	192,621
United States [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	210,022	187,207
Other Americas [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	9,241	5,414
Asia [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	99,179	98,782
EMEA [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	85,464	78,570
Japan [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	$ 43,956	$ 41,393

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Summary of long-lived assets by geography
Total long-lived assets	$ 231,180	$ 228,599
Americas:
Total Americas	192,432	190,052
United States [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	192,005	189,665
Other Americas [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	427	387
Asia [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	25,364	24,767
EMEA [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	12,435	12,832
Japan [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	$ 949	$ 948

Subsequent Events (Details)

Subsequent Events (Details)	Apr. 08, 2016
Trust For Benefit Of Children of Chief Executive Officer [Member] | Subsequent Event [Member] | Rocketick Technologies [Member]
Subsequent Event [Line Items]
Related Party, Ownership Percentage in Acquired Company	2.00%