Cadence Design Systems (CDNS) 10-Q 25 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Apr. 01, 2017shares
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. 1, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	279,601,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 544,128	$ 465,232
Short-term investments	3,479	3,057
Receivables, net	180,571	157,171
Inventories	30,734	39,475
Prepaid expenses and other	41,092	37,099
Total current assets	800,004	702,034
Property, plant and equipment, net of accumulated depreciation of $623,185 and $612,961, respectively	243,949	238,607
Goodwill	574,545	572,764
Acquired intangibles, net of accumulated amortization of $254,949 and $267,723, respectively	244,445	258,814
Long-term receivables	13,127	12,949
Other assets	315,128	311,740
Total assets	2,191,198	2,096,908
Current Liabilities:
Revolving credit facility	50,000	50,000
Accounts payable and accrued liabilities	193,978	239,496
Current portion of deferred revenue	331,848	296,066
Total current liabilities	575,826	585,562
Long-Term Liabilities:
Long-term portion of deferred revenue	66,399	66,769
Long-term debt	643,709	643,493
Other long-term liabilities	64,672	59,314
Total long-term liabilities	774,780	769,576
Commitments and contingencies
Stockholders' Equity:
Common stock and capital in excess of par value	1,824,306	1,820,081
Treasury stock, at cost	(1,166,599)	(1,190,053)
Retained earnings	205,161	136,902
Accumulated other comprehensive loss	(22,276)	(25,160)
Total stockholders’ equity	840,592	741,770
Total liabilities and stockholders’ equity	$ 2,191,198	$ 2,096,908

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accumulated depreciation on property, plant and equipment	$ 623,185	$ 612,961
Accumulated amortization on acquired intangibles assets	$ 254,949	$ 267,723

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Revenue:
Product and maintenance	$ 451,407	$ 411,744
Services	25,504	36,118
Total revenue	476,911	447,862
Costs and Expenses:
Cost of product and maintenance	43,717	44,181
Cost of services	18,075	17,873
Marketing and sales	103,347	99,200
Research and development	198,286	179,906
General and administrative	31,816	28,300
Amortization of acquired intangibles	3,856	5,780
Restructuring and other charges (credits)	(1,788)	14,586
Total costs and expenses	397,309	389,826
Income from operations	79,602	58,036
Interest expense	(6,479)	(5,357)
Other income, net	1,059	4,763
Income before provision for income taxes	74,182	57,442
Provision for income taxes	5,923	6,880
Net income	$ 68,259	$ 50,562
Net income per share - basic (in usd per share)	$ 0.25	$ 0.17
Net income per share - diluted (in usd per share)	$ 0.25	$ 0.17
Weighted average common shares outstanding - basic (in shares)	270,173	296,615
Weighted average common shares outstanding - diluted (in shares)	277,736	303,434

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 68,259	$ 50,562
Other comprehensive income, net of tax effects:
Foreign currency translation adjustments	2,389	4,214
Changes in unrealized holding gains or losses on available-for-sale securities, net of reclassification adjustment for realized gains and losses	465	865
Changes in defined benefit plan liabilities	30	81
Total other comprehensive income, net of tax effects	2,884	5,160
Comprehensive income	$ 71,143	$ 55,722

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Statement of Cash Flows [Abstract]
Cash and cash equivalents at beginning of period	$ 465,232	$ 616,686
Cash flows from operating activities:
Net income	68,259	50,562
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,894	31,231
Amortization of debt discount and fees	350	255
Stock-based compensation	27,436	24,632
Gain on investments, net	(1,228)	(2,617)
Deferred income taxes	1,990	1,623
Other non-cash items	1,359	209
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	(22,475)	11,618
Inventories	6,000	(3,714)
Prepaid expenses and other	(3,777)	(10,132)
Other assets	(3,657)	(3,595)
Accounts payable and accrued liabilities	(46,159)	(42,557)
Deferred revenue	34,325	30,710
Other long-term liabilities	1,113	(5,034)
Net cash provided by operating activities	92,430	83,191
Cash flows from investing activities:
Purchases of available-for-sale securities	0	(20,525)
Proceeds from the sale of available-for-sale securities	107	1,000
Proceeds from the maturity of available-for-sale securities	0	19,000
Proceeds from the sale of long-term investments	0	2,583
Purchases of property, plant and equipment	(14,843)	(12,116)
Cash paid in business combinations and asset acquisitions, net of cash acquired	0	(3,853)
Net cash used for investing activities	(14,736)	(13,911)
Cash flows from financing activities:
Proceeds from term loan	0	300,000
Proceeds from revolving credit facility	50,000	50,000
Payment on revolving credit facility	(50,000)	0
Payment of debt issuance costs	(793)	(542)
Proceeds from issuance of common stock	22,715	24,200
Stock received for payment of employee taxes on vesting of restricted stock	(22,470)	(15,225)
Payments for repurchases of common stock	0	(240,000)
Net cash provided by (used for) financing activities	(548)	118,433
Effect of exchange rate changes on cash and cash equivalents	1,750	6,001
Increase in cash and cash equivalents	78,896	193,714
Cash and cash equivalents at end of period	544,128	810,400
Supplemental cash flow information:
Cash paid for interest	2,219	109
Cash paid for taxes, net	$ 9,767	$ 4,799

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 01, 2017
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 December 31, 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.

Debt

Debt	3 Months Ended
	Apr. 01, 2017
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of April 1, 2017 and December 31, 2016 was as follows: April 1, 2017 December 31, 2016 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ 50,000 $ — $ 50,000 $ 50,000 $ — $ 50,000 2019 Term Loan 300,000 (382 ) 299,618 300,000 (434 ) 299,566 2024 Notes 350,000 (5,909 ) 344,091 350,000 (6,073 ) 343,927 Total outstanding debt $ 700,000 $ (6,291 ) $ 693,709 $ 700,000 $ (6,507 ) $ 693,493 Revolving Credit Facility On January 30, 2017, Cadence entered into a five-year senior unsecured revolving credit facility with a group of lenders led by JPMorgan Chase Bank, N.A., as administrative agent, which replaced Cadence’s existing revolving credit facility. The credit facility provides for borrowings up to $350.0 million , with the right to request increased capacity up to an additional $250.0 million upon the receipt of lender commitments, for total maximum borrowings of $600.0 million . The credit facility expires on January 28, 2022 and has no subsidiary guarantors. Any outstanding loans drawn under the credit facility are due at maturity on January 28, 2022 . 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 1.875% per annum or at the base rate plus a margin between 0.25% and 0.875% per annum. As of April 1, 2017 , the interest rate on Cadence’s credit facility was 2.60% . Interest is payable quarterly. A commitment fee ranging from 0.15% to 0.30% 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 funded debt to EBITDA ratio not greater than 3.00 to 1, with a step up to 3.50 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 2.75 to 1 and 3.25 to 1. As of April 1, 2017 , Cadence was in compliance with all financial covenants associated with the revolving credit facility. 2019 Term Loan In January 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. On January 30, 2017, Cadence amended the agreement for its 2019 Term Loan. The amendment modified the 2019 Term Loan covenants to make them consistent with the covenants in the revolving credit facility. The other material terms of the 2019 Term Loan remain unchanged. 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. As of April 1, 2017 , the interest rate on Cadence’s 2019 Term Loan was 2.44% . The 2019 Term Loan 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 term loan agreement contains certain financial covenants that require Cadence to maintain a funded debt to EBITDA ratio not greater than 3.00 to 1 , with a step-up to 3.50 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 2.75 to 1 and 3.25 to 1 . As of April 1, 2017 , 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. As of April 1, 2017 , Cadence was in compliance with all financial covenants associated with the 2024 Notes.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	3 Months Ended
	Apr. 01, 2017
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 1, 2017 and December 31, 2016 were as follows: As of April 1, December 31, (In thousands) Cash and cash equivalents $ 544,128 $ 465,232 Short-term investments 3,479 3,057 Cash, cash equivalents and short-term investments $ 547,607 $ 468,289 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 1, 2017 and December 31, 2016 : As of April 1, December 31, (In thousands) Cash and interest bearing deposits $ 162,923 $ 227,508 Money market funds 381,205 237,724 Total cash and cash equivalents $ 544,128 $ 465,232 Short-Term Investments The following tables summarize Cadence’s short-term investments as of April 1, 2017 and December 31, 2016 : As of April 1, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Marketable equity securities $ 2,088 $ 1,391 $ — $ 3,479 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Marketable equity securities $ 2,131 $ 926 $ — $ 3,057 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. 01, 2017
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of April 1, 2017 and December 31, 2016 were as follows: As of April 1, December 31, (In thousands) Accounts receivable $ 114,137 $ 85,554 Unbilled accounts receivable 66,434 71,617 Long-term receivables 13,127 12,949 Total receivables 193,698 170,120 Less allowance for doubtful accounts — — Total receivables, net $ 193,698 $ 170,120 Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of April 1, 2017 and December 31, 2016 , no one customer accounted for 10% or more of Cadence’s total receivables.

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	3 Months Ended
	Apr. 01, 2017
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 1, 2017 were as follows: Gross Carrying Amount (In thousands) Balance as of December 31, 2016 $ 572,764 Effect of foreign currency translation 1,781 Balance as of April 1, 2017 $ 574,545 Acquired Intangibles, Net Acquired intangibles as of April 1, 2017 were as follows, excluding intangibles that were fully amortized as of December 31, 2016 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 340,345 $ (168,706 ) $ 171,639 Agreements and relationships 150,031 (79,952 ) 70,079 Tradenames, trademarks and patents 9,018 (6,291 ) 2,727 Total acquired intangibles $ 499,394 $ (254,949 ) $ 244,445 Acquired intangibles as of December 31, 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 $ 342,108 $ (160,178 ) $ 181,930 Agreements and relationships 174,623 (100,778 ) 73,845 Tradenames, trademarks and patents 9,806 (6,767 ) 3,039 Total acquired intangibles $ 526,537 $ (267,723 ) $ 258,814 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 1, 2017 and April 2, 2016 was as follows: Three Months Ended April 1, April 2, (In thousands) Cost of product and maintenance $ 10,578 $ 10,663 Amortization of acquired intangibles 3,856 5,780 Total amortization of acquired intangibles $ 14,434 $ 16,443 Estimated amortization expense for intangible assets with definite lives for the following five fiscal years and thereafter is as follows: (In thousands) 2017 – remaining period $ 41,615 2018 52,267 2019 45,250 2020 40,039 2021 35,546 Thereafter 29,728 Total estimated amortization expense $ 244,445

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Apr. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three months ended April 1, 2017 and April 2, 2016 as follows: Three Months Ended April 1, April 2, (In thousands) Cost of product and maintenance $ 529 $ 464 Cost of services 761 681 Marketing and sales 6,008 5,536 Research and development 15,482 13,897 General and administrative 4,656 4,054 Total stock-based compensation expense $ 27,436 $ 24,632 Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $201.0 million as of April 1, 2017 , which will be recognized over the remaining vesting period. The remaining weighted-average vesting period of unvested awards is 2.2 years .

Restructuring and Other Charges

Restructuring and Other Charges	3 Months Ended
	Apr. 01, 2017
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 fiscal 2016, Cadence initiated two restructuring plans, or the 2016 Restructuring Plans, and recorded restructuring and other charges of approximately $40.4 million related to severance payments and termination benefits, including costs associated with a voluntary early retirement program offered to certain employees. During the three months ended April 1, 2017 , Cadence revised certain estimates made in connection with the 2016 Restructuring Plans and recorded credits of approximately $1.8 million . As of April 1, 2017 , total liabilities related to the 2016 Restructuring Plans were $13.3 million . Cadence expects to make cash payments for severance and related benefits for the 2016 Restructuring Plans through the first quarter of fiscal 2019. The following table presents activity relating to Cadence’s restructuring plans during the three months ended April 1, 2017 : Severance and Benefits Excess Facilities Total (In thousands) Balance, December 31, 2016 $ 24,402 $ 58 $ 24,460 Restructuring and other charges (credits): 2016 Restructuring Plans (1,830 ) — (1,830 ) Prior restructuring plans — 42 42 Non-cash charges — 1 1 Cash payments (9,351 ) (71 ) (9,422 ) Effect of foreign currency translation 114 — 114 Balance, April 1, 2017 $ 13,335 $ 30 $ 13,365 The remaining liability for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of April 1, 2017 (In thousands) Accounts payable and accrued liabilities $ 12,235 Other long-term liabilities 1,130 Total liabilities $ 13,365

Net Income per Share

Net Income per Share	3 Months Ended
	Apr. 01, 2017
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 1, 2017 and April 2, 2016 are as follows: Three Months Ended April 1, April 2, (In thousands, except per share amounts) Net income $ 68,259 $ 50,562 Weighted average common shares used to calculate basic net income per share 270,173 296,615 Stock-based awards 7,563 6,819 Weighted average common shares used to calculate diluted net income per share 277,736 303,434 Net income per share - basic $ 0.25 $ 0.17 Net income per share - diluted $ 0.25 $ 0.17 The following table presents shares of Cadence’s common stock outstanding for the three months ended April 1, 2017 and April 2, 2016 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 1, April 2, (In thousands) Long-term performance-based stock awards 232 635 Options to purchase shares of common stock 391 749 Non-vested shares of restricted stock 161 83 Total potential common shares excluded 784 1,467

Fair Value

Fair Value	3 Months Ended
	Apr. 01, 2017
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 1, 2017 . 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 1, 2017 and December 31, 2016 : Fair Value Measurements as of April 1, 2017 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 381,205 $ 381,205 $ — $ — Short-term investments: Marketable equity securities 3,479 3,479 — — Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust 26,449 26,449 — — Foreign currency exchange contracts 2,450 — 2,450 — Total Assets $ 413,583 $ 411,133 $ 2,450 $ — As of April 1, 2017, Cadence did not have any financial liabilities requiring a recurring fair value measurement. Fair Value Measurements as of December 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 237,724 $ 237,724 $ — $ — Short-term investments: Marketable equity securities 3,057 3,057 — — Trading securities held in NQDC trust 26,622 26,622 — — Total Assets $ 267,403 $ 267,403 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 2,653 $ — $ 2,653 $ —

Contingencies

Contingencies	3 Months Ended
	Apr. 01, 2017
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 1, 2017 and April 2, 2016 . 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 1, 2017 and April 2, 2016 . Non-Income Based Taxes Cadence undergoes examination from time to time by U.S. and foreign authorities for non-income based taxes, such as payroll, sales, use, value-added, net worth or franchise, property, goods and services, consumption, import, stamp and excise taxes. Cadence is under examination by tax authorities in certain jurisdictions. If the potential loss from the examinations is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated expense. Tax examinations and the related appeals processes 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 losses related to the non-income based taxes and may revise estimates.

Other Comprehensive Loss

Other Comprehensive Loss	3 Months Ended
	Apr. 01, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
OTHER COMPREHENSIVE LOSS	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 1, 2017 and December 31, 2016 : As of April 1, December 31, (In thousands) Foreign currency translation loss $ (19,981 ) $ (22,370 ) Changes in defined benefit plan liabilities (3,686 ) (3,716 ) Unrealized holding gains on available-for-sale securities 1,391 926 Total accumulated other comprehensive loss $ (22,276 ) $ (25,160 ) For the three months ended April 1, 2017 and April 2, 2016 there were no significant amounts reclassified from accumulated other comprehensive loss to net income.

Segment Reporting

Segment Reporting	3 Months Ended
	Apr. 01, 2017
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 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 1, 2017 and April 2, 2016 : Three Months Ended April 1, April 2, (In thousands) Americas: United States $ 205,435 $ 210,022 Other Americas 7,755 9,241 Total Americas 213,190 219,263 Asia 122,423 99,179 Europe, Middle East and Africa 98,321 85,464 Japan 42,977 43,956 Total $ 476,911 $ 447,862 The following table presents a summary of long-lived assets by geography as of April 1, 2017 and December 31, 2016 : As of April 1, December 31, (In thousands) Americas: United States $ 194,801 $ 193,750 Other Americas 745 757 Total Americas 195,546 194,507 Asia 33,696 30,564 Europe, Middle East and Africa 13,919 12,692 Japan 788 844 Total $ 243,949 $ 238,607

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Apr. 01, 2017
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 1, 2017 .
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)	3 Months Ended
	Apr. 01, 2017
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of April 1, 2017 and December 31, 2016 was as follows: April 1, 2017 December 31, 2016 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ 50,000 $ — $ 50,000 $ 50,000 $ — $ 50,000 2019 Term Loan 300,000 (382 ) 299,618 300,000 (434 ) 299,566 2024 Notes 350,000 (5,909 ) 344,091 350,000 (6,073 ) 343,927 Total outstanding debt $ 700,000 $ (6,291 ) $ 693,709 $ 700,000 $ (6,507 ) $ 693,493

Cash, Cash Equivalents and In21

Cash, Cash Equivalents and Investments (Tables)	3 Months Ended
	Apr. 01, 2017
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 1, 2017 and December 31, 2016 were as follows: As of April 1, December 31, (In thousands) Cash and cash equivalents $ 544,128 $ 465,232 Short-term investments 3,479 3,057 Cash, cash equivalents and short-term investments $ 547,607 $ 468,289
Summary of cash and cash equivalents	The following table summarizes Cadence’s cash and cash equivalents at fair value as of April 1, 2017 and December 31, 2016 : As of April 1, December 31, (In thousands) Cash and interest bearing deposits $ 162,923 $ 227,508 Money market funds 381,205 237,724 Total cash and cash equivalents $ 544,128 $ 465,232
Summary of short-term investments	The following tables summarize Cadence’s short-term investments as of April 1, 2017 and December 31, 2016 : As of April 1, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Marketable equity securities $ 2,088 $ 1,391 $ — $ 3,479 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Marketable equity securities $ 2,131 $ 926 $ — $ 3,057

Receivables, net (Tables)

Receivables, net (Tables)	3 Months Ended
	Apr. 01, 2017
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of April 1, 2017 and December 31, 2016 were as follows: As of April 1, December 31, (In thousands) Accounts receivable $ 114,137 $ 85,554 Unbilled accounts receivable 66,434 71,617 Long-term receivables 13,127 12,949 Total receivables 193,698 170,120 Less allowance for doubtful accounts — — Total receivables, net $ 193,698 $ 170,120

Goodwill and Acquired Intangi23

Goodwill and Acquired Intangibles (Tables)	3 Months Ended
	Apr. 01, 2017
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 1, 2017 were as follows: Gross Carrying Amount (In thousands) Balance as of December 31, 2016 $ 572,764 Effect of foreign currency translation 1,781 Balance as of April 1, 2017 $ 574,545
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of April 1, 2017 were as follows, excluding intangibles that were fully amortized as of December 31, 2016 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 340,345 $ (168,706 ) $ 171,639 Agreements and relationships 150,031 (79,952 ) 70,079 Tradenames, trademarks and patents 9,018 (6,291 ) 2,727 Total acquired intangibles $ 499,394 $ (254,949 ) $ 244,445 Acquired intangibles as of December 31, 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 $ 342,108 $ (160,178 ) $ 181,930 Agreements and relationships 174,623 (100,778 ) 73,845 Tradenames, trademarks and patents 9,806 (6,767 ) 3,039 Total acquired intangibles $ 526,537 $ (267,723 ) $ 258,814
Amortization of acquired intangibles	Amortization of acquired intangibles for the three months ended April 1, 2017 and April 2, 2016 was as follows: Three Months Ended April 1, April 2, (In thousands) Cost of product and maintenance $ 10,578 $ 10,663 Amortization of acquired intangibles 3,856 5,780 Total amortization of acquired intangibles $ 14,434 $ 16,443
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) 2017 – remaining period $ 41,615 2018 52,267 2019 45,250 2020 40,039 2021 35,546 Thereafter 29,728 Total estimated amortization expense $ 244,445

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Apr. 01, 2017
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 1, 2017 and April 2, 2016 as follows: Three Months Ended April 1, April 2, (In thousands) Cost of product and maintenance $ 529 $ 464 Cost of services 761 681 Marketing and sales 6,008 5,536 Research and development 15,482 13,897 General and administrative 4,656 4,054 Total stock-based compensation expense $ 27,436 $ 24,632

Restructuring and Other Charg25

Restructuring and Other Charges (Tables)	3 Months Ended
	Apr. 01, 2017
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 1, 2017 : Severance and Benefits Excess Facilities Total (In thousands) Balance, December 31, 2016 $ 24,402 $ 58 $ 24,460 Restructuring and other charges (credits): 2016 Restructuring Plans (1,830 ) — (1,830 ) Prior restructuring plans — 42 42 Non-cash charges — 1 1 Cash payments (9,351 ) (71 ) (9,422 ) Effect of foreign currency translation 114 — 114 Balance, April 1, 2017 $ 13,335 $ 30 $ 13,365
Schedule of restructuring reserve by balance sheet classification	The remaining liability for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of April 1, 2017 (In thousands) Accounts payable and accrued liabilities $ 12,235 Other long-term liabilities 1,130 Total liabilities $ 13,365

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Apr. 01, 2017
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 1, 2017 and April 2, 2016 are as follows: Three Months Ended April 1, April 2, (In thousands, except per share amounts) Net income $ 68,259 $ 50,562 Weighted average common shares used to calculate basic net income per share 270,173 296,615 Stock-based awards 7,563 6,819 Weighted average common shares used to calculate diluted net income per share 277,736 303,434 Net income per share - basic $ 0.25 $ 0.17 Net income per share - diluted $ 0.25 $ 0.17
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 1, 2017 and April 2, 2016 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 1, April 2, (In thousands) Long-term performance-based stock awards 232 635 Options to purchase shares of common stock 391 749 Non-vested shares of restricted stock 161 83 Total potential common shares excluded 784 1,467

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Apr. 01, 2017
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 1, 2017 and December 31, 2016 : Fair Value Measurements as of April 1, 2017 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 381,205 $ 381,205 $ — $ — Short-term investments: Marketable equity securities 3,479 3,479 — — Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust 26,449 26,449 — — Foreign currency exchange contracts 2,450 — 2,450 — Total Assets $ 413,583 $ 411,133 $ 2,450 $ — As of April 1, 2017, Cadence did not have any financial liabilities requiring a recurring fair value measurement. Fair Value Measurements as of December 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 237,724 $ 237,724 $ — $ — Short-term investments: Marketable equity securities 3,057 3,057 — — Trading securities held in NQDC trust 26,622 26,622 — — Total Assets $ 267,403 $ 267,403 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 2,653 $ — $ 2,653 $ —

Other Comprehensive Loss (Table

Other Comprehensive Loss (Tables)	3 Months Ended
	Apr. 01, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated other comprehensive loss, net of tax	Accumulated other comprehensive loss was comprised of the following as of April 1, 2017 and December 31, 2016 : As of April 1, December 31, (In thousands) Foreign currency translation loss $ (19,981 ) $ (22,370 ) Changes in defined benefit plan liabilities (3,686 ) (3,716 ) Unrealized holding gains on available-for-sale securities 1,391 926 Total accumulated other comprehensive loss $ (22,276 ) $ (25,160 )

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Apr. 01, 2017
Segment Reporting [Abstract]
Summary of revenue by geography	The following table presents a summary of revenue by geography for the three months ended April 1, 2017 and April 2, 2016 : Three Months Ended April 1, April 2, (In thousands) Americas: United States $ 205,435 $ 210,022 Other Americas 7,755 9,241 Total Americas 213,190 219,263 Asia 122,423 99,179 Europe, Middle East and Africa 98,321 85,464 Japan 42,977 43,956 Total $ 476,911 $ 447,862
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of April 1, 2017 and December 31, 2016 : As of April 1, December 31, (In thousands) Americas: United States $ 194,801 $ 193,750 Other Americas 745 757 Total Americas 195,546 194,507 Asia 33,696 30,564 Europe, Middle East and Africa 13,919 12,692 Japan 788 844 Total $ 243,949 $ 238,607

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016	Jan. 28, 2016	Oct. 09, 2014
Debt Instrument [Line Items]
Principal	$ 700,000	$ 700,000
Unamortized discount and debt issuance costs	(6,291)	(6,507)
Line of Credit, Current	50,000	50,000
Carrying value	643,709	643,493
Carrying value	693,709	693,493
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Principal	50,000	50,000
Line of Credit, Current	50,000	50,000
Long-term Debt [Member] | Term Loan Due 2019 [Member]
Debt Instrument [Line Items]
Principal	300,000	300,000	$ 300,000
Unamortized discount and debt issuance costs	(382)	(434)
Carrying value	299,618	299,566
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Principal	350,000	350,000		$ 350,000
Unamortized discount and debt issuance costs	(5,909)	(6,073)		$ (1,400)
Carrying value	$ 344,091	$ 343,927

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual) $ in Millions	3 Months Ended
	Apr. 01, 2017USD ($)
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 1.875% per annum or at the base rate plus a margin between 0.25% and 0.875% per annum. Interest is payable quarterly.
Credit facility, maturity date	Jan. 28, 2022
Credit facility, current borrowing capacity	$ 350
Credit facility additional borrowing capacity available	250
Credit facility, maximum borrowing capacity	$ 600
Credit facility, interest rate at period end	2.60%
Credit facility, covenant description	The credit facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness, grant liens and make certain investments (including acquisitions), dispose of certain assets and make certain restricted payments, including share repurchases and dividends. In addition, the credit facility contains financial covenants that require Cadence to maintain a debt to EBITDA ratio not greater than 3.00 to 1, with a step up to 3.50 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 2.75 to 1 and 3.25 to 1.
Credit facility, covenant compliance	Cadence was in compliance with all financial covenants as of April 1, 2017 and December 31, 2016.
Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage	0.30%
Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage	0.15%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	1.875%
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	1.25%
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	0.875%
Base Rate [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]
Credit facility, covenant, debt to EBITDA ratio	3
Credit facility, covenant, debt to EBITDA ratio after step up triggered by acquisition	3.50
Credit facility, covenant, required business acquisition consideration, minimum	$ 250
Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, pro forma leverage ratio	3.25
Revolving Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, pro forma leverage ratio	2.75

Debt (Details Textual)

Debt (Details Textual) $ in Thousands	Jan. 28, 2016USD ($)	Oct. 09, 2014USD ($)	Apr. 01, 2017USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Unamortized discount			$ 6,291	$ 6,507
Long-term Debt [Member] | Term Loan Due 2019 [Member]
Debt Instrument [Line Items]
Aggregate principal amount, issued	$ 300,000		300,000	300,000
Unamortized discount			$ 382	434
Debt instrument, term	3 years
Debt instrument, maturity date			Jan. 28, 2019
Debt instrument, covenant, debt to EBITDA ratio			3
Debt instrument, covenant, debt to EBITDA ratio after step up triggered by acquisition			3.50
Debt instrument, covenant, required business acquisition consideration, minimum			$ 250,000
Long-term Debt [Member] | Term Loan Due 2019 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate at period end			2.44%
Long-term Debt [Member] | Term Loan Due 2019 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, covenant, pro forma leverage ratio			2.75
Long-term Debt [Member] | Term Loan Due 2019 [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate spread			1.125%
Long-term Debt [Member] | Term Loan Due 2019 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, covenant, pro forma leverage ratio			3.25
Long-term Debt [Member] | Term Loan Due 2019 [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate spread			1.875%
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	$ 5,909	$ 6,073
Debt issuance costs		$ 6,200

Cash, Cash Equivalents and In33

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016	Apr. 02, 2016	Jan. 02, 2016
Cash, Cash Equivalents and Investments [Abstract]
Cash and cash equivalents	$ 544,128	$ 465,232	$ 810,400	$ 616,686
Short-term investments	3,479	3,057
Cash, cash equivalents, and short-term investments	$ 547,607	$ 468,289

Cash, Cash Equivalents and In34

Cash, Cash Equivalents and Investments (Details 1) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016	Apr. 02, 2016	Jan. 02, 2016
Classified as cash and cash equivalents
Cash and interest bearing deposits	$ 162,923	$ 227,508
Money market funds	381,205	237,724
Total cash and cash equivalents	$ 544,128	$ 465,232	$ 810,400	$ 616,686

Cash, Cash Equivalents and In35

Cash, Cash Equivalents and Investments (Details 2) - Marketable equity securities [Member] - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Short-term investments
Amortized Cost	$ 2,088	$ 2,131
Gross Unrealized Gains	1,391	926
Gross Unrealized Losses	0	0
Fair Value	$ 3,479	$ 3,057

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Current and long-term receivables balances
Accounts receivable	$ 114,137	$ 85,554
Unbilled accounts receivable	66,434	71,617
Long-term receivables	13,127	12,949
Total receivables	193,698	170,120
Less allowance for doubtful accounts	0	0
Total receivables, net	$ 193,698	$ 170,120

Receivables, net (Details Textu

Receivables, net (Details Textual) - Customer	Apr. 01, 2017	Dec. 31, 2016
Accounts Receivable and Allowances for Doubtful Accounts (Textual) [Abstract]
Percentage of receivables, net attributable to single customer	10.00%	10.00%
Number of customers with receivables balance greater than ten percent of total balance	0	0

Goodwill and Acquired Intangi38

Goodwill and Acquired Intangibles (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2017USD ($)
Changes in the carrying amount of goodwill
Balance as of December 31, 2016	$ 572,764
Effect of foreign currency translation	1,781
Balance as of April 1, 2017	$ 574,545

Goodwill and Acquired Intangi39

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 499,394	$ 526,537
Accumulated amortization	(254,949)	(267,723)
Acquired intangibles, net	244,445	258,814
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	340,345	342,108
Accumulated amortization	(168,706)	(160,178)
Acquired intangibles, net	171,639	181,930
Agreements and Relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	150,031	174,623
Accumulated amortization	(79,952)	(100,778)
Acquired intangibles, net	70,079	73,845
Tradenames Trademarks And Patents [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	9,018	9,806
Accumulated amortization	(6,291)	(6,767)
Acquired intangibles, net	$ 2,727	$ 3,039

Goodwill and Acquired Intangi40

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Amortization of acquired intangibles
Cost of product and maintenance	$ 10,578	$ 10,663
Amortization of acquired intangibles	3,856	5,780
Total amortization of acquired intangibles	$ 14,434	$ 16,443

Goodwill and Acquired Intangi41

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Estimated amortization expense
2017 – remaining period	$ 41,615
2,018	52,267
2,019	45,250
2,020	40,039
2,021	35,546
Thereafter	29,728
Acquired intangibles, net	$ 244,445	$ 258,814

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 27,436	$ 24,632
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	529	464
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	761	681
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	6,008	5,536
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	15,482	13,897
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 4,656	$ 4,054

Stock Based Compensation (Det43

Stock Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	3 Months Ended
	Apr. 01, 2017USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 201
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years 2 months

Restructuring and Other Charg44

Restructuring and Other Charges (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ (1,788)	$ 14,586
Restructuring reserve	13,365		$ 24,460
2016 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	(1,830)		$ 40,400
Restructuring reserve	$ 13,300

Restructuring and Other Charg45

Restructuring and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 24,460
Restructuring and other charges, net	(1,788)	$ 14,586
Restructuring activities non-cash charges	1
Cash payments	(9,422)
Effect of foreign currency translation	114
Ending balance	13,365		$ 24,460
Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	24,402
Restructuring activities non-cash charges	0
Cash payments	(9,351)
Effect of foreign currency translation	114
Ending balance	13,335		24,402
Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	58
Restructuring and other charges, net	0
Restructuring activities non-cash charges	1
Cash payments	(71)
Effect of foreign currency translation	0
Ending balance	30		58
2016 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net	(1,830)		$ 40,400
Ending balance	13,300
Prior restructuring plans [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net	42
Prior restructuring plans [Member] | Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net	0
Prior restructuring plans [Member] | Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net	$ 42

Restructuring and Other Charg46

Restructuring and Other Charges (Details 1) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 13,365	$ 24,460
Accounts payable and accrued liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	12,235
Other long term liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 1,130

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 68,259	$ 50,562
Weighted-average common shares used to calculate basic net income per share (in shares)	270,173	296,615
Stock-based awards	7,563	6,819
Weighted average common shares used to calculate diluted net income per share (in shares)	277,736	303,434
Net income per share - basic (in usd per share)	$ 0.25	$ 0.17
Net income per share - diluted (in usd per share)	$ 0.25	$ 0.17

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	784	1,467
Long-term performance-based stock awards
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	232	635
Options to purchase shares of common stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	391	749
Non-vested shares of restricted stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	161	83

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	$ 26,449	$ 26,622
Foreign currency exchange contracts	2,450
Total Assets	413,583	267,403
Liabilities
Foreign currency exchange contracts		2,653
Money market funds [Member]
Assets
Cash equivalents	381,205	237,724
Marketable equity securities [Member]
Short-term investments:
Available-for-sale securities	3,479	3,057
Fair Value Measurements, Level 1 [Member]
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	26,449	26,622
Foreign currency exchange contracts	0
Total Assets	411,133	267,403
Liabilities
Foreign currency exchange contracts		0
Fair Value Measurements, Level 1 [Member] | Money market funds [Member]
Assets
Cash equivalents	381,205	237,724
Fair Value Measurements, Level 1 [Member] | Marketable equity securities [Member]
Short-term investments:
Available-for-sale securities	3,479	3,057
Fair Value Measurements, Level 2 [Member]
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	0	0
Foreign currency exchange contracts	2,450
Total Assets	2,450	0
Liabilities
Foreign currency exchange contracts		2,653
Fair Value Measurements, Level 2 [Member] | Money market funds [Member]
Assets
Cash equivalents	0	0
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 exchange contracts	0
Total Assets	0	0
Liabilities
Foreign currency exchange contracts		0
Fair Value Measurements, Level 3 [Member] | Money market funds [Member]
Assets
Cash equivalents	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. 01, 2017
Contingencies (Textual) [Abstract]
General period of warranty on sales of hardware products	90 days

Other Comprehensive Loss (Detai

Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation gain	$ (19,981)	$ (22,370)
Changes in defined benefit plan liabilities	(3,686)	(3,716)
Unrealized holding gains on available-for-sale securities	1,391	926
Total accumulated other comprehensive loss	$ (22,276)	$ (25,160)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Americas:
Total Americas	$ 213,190	$ 219,263
Total revenue	476,911	447,862
United States [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	205,435	210,022
Other Americas [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	7,755	9,241
Asia [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	122,423	99,179
EMEA [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	98,321	85,464
Japan [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	$ 42,977	$ 43,956

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Americas:
Total Americas	$ 195,546	$ 194,507
Total long-lived assets	243,949	238,607
United States [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	194,801	193,750
Other Americas [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	745	757
Asia [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	33,696	30,564
EMEA [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	13,919	12,692
Japan [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	$ 788	$ 844