Cadence Design Systems (CDNS) 10-Q 26 Oct 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 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	Sep. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	282,360,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 678,284	$ 465,232
Short-term investments	4,135	3,057
Receivables, net	170,312	157,171
Inventories	36,000	39,475
Prepaid expenses and other	42,374	37,099
Total current assets	931,105	702,034
Property, plant and equipment, net of accumulated depreciation of $648,298 and $612,961, respectively	244,620	238,607
Goodwill	574,912	572,764
Acquired intangibles, net of accumulated amortization of $283,632 and $267,723, respectively	216,177	258,814
Long-term receivables	11,590	12,949
Other assets	326,823	311,740
Total assets	2,305,227	2,096,908
Current Liabilities:
Revolving credit facility	0	50,000
Accounts payable and accrued liabilities	199,672	239,496
Current portion of deferred revenue	320,462	296,066
Total current liabilities	520,134	585,562
Long-Term Liabilities:
Long-term portion of deferred revenue	57,865	66,769
Long-term debt	644,146	643,493
Other long-term liabilities	72,342	59,314
Total long-term liabilities	774,353	769,576
Commitments and contingencies
Stockholders' Equity:
Common stock and capital in excess of par value	1,807,839	1,820,081
Treasury stock, at cost	(1,142,524)	(1,190,053)
Retained earnings	355,445	136,902
Accumulated other comprehensive loss	(10,020)	(25,160)
Total stockholders’ equity	1,010,740	741,770
Total liabilities and stockholders’ equity	$ 2,305,227	$ 2,096,908

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accumulated depreciation on property, plant and equipment	$ 648,298	$ 612,961
Accumulated amortization on acquired intangibles assets	$ 283,632	$ 267,723

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Revenue:
Product and maintenance	$ 451,229	$ 415,370	$ 1,346,483	$ 1,247,077
Services	34,169	30,850	94,827	100,026
Total revenue	485,398	446,220	1,441,310	1,347,103
Costs and Expenses:
Cost of product and maintenance	34,825	38,740	117,371	125,881
Cost of services	19,657	17,867	59,735	54,563
Marketing and sales	104,263	96,793	311,507	297,103
Research and development	206,568	191,547	600,755	553,824
General and administrative	36,302	30,441	100,892	95,129
Amortization of acquired intangibles	3,453	3,889	11,145	14,206
Restructuring and other charges (credits)	(55)	101	(2,772)	14,613
Total costs and expenses	405,013	379,378	1,198,633	1,155,319
Income from operations	80,385	66,842	242,677	191,784
Interest expense	(6,225)	(6,053)	(18,952)	(17,306)
Other income, net	12,387	2,836	14,370	10,441
Income before provision (benefit) for income taxes	86,547	63,625	238,095	184,919
Provision (benefit) for income taxes	5,390	(1,087)	19,552	20,310
Net income	$ 81,157	$ 64,712	$ 218,543	$ 164,609
Net income per share - basic (in usd per share)	$ 0.30	$ 0.23	$ 0.80	$ 0.57
Net income per share - diluted (in usd per share)	$ 0.29	$ 0.23	$ 0.78	$ 0.56
Weighted average common shares outstanding - basic (in shares)	273,156	280,622	271,739	288,476
Weighted average common shares outstanding - diluted (in shares)	281,400	287,473	279,554	295,369

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 81,157	$ 64,712	$ 218,543	$ 164,609
Other comprehensive income, net of tax effects:
Foreign currency translation adjustments	3,549	951	13,803	2,858
Changes in unrealized holding gains or losses on available-for-sale securities, net of reclassification adjustment for realized gains and losses	1,000	122	1,248	682
Changes in defined benefit plan liabilities	19	(238)	89	(265)
Total other comprehensive income, net of tax effects	4,568	835	15,140	3,275
Comprehensive income	$ 85,725	$ 65,547	$ 233,683	$ 167,884

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Oct. 01, 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	218,543	164,609
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	86,605	89,726
Amortization of debt discount and fees	920	792
Stock-based compensation	94,008	79,986
Gain on investments, net	(12,502)	(4,070)
Gain on sale of property, plant and equipment	0	482
Deferred income taxes	212	8,657
Other non-cash items	3,763	1,869
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	(8,040)	2,873
Inventories	2,282	(16,339)
Prepaid expenses and other	(4,627)	(12,135)
Other assets	(14,469)	(3,822)
Accounts payable and accrued liabilities	(41,127)	(46,585)
Deferred revenue	14,245	(10,823)
Other long-term liabilities	4,071	(6,239)
Net cash provided by operating activities	343,884	248,017
Cash flows from investing activities:
Purchases of available-for-sale securities	0	(20,525)
Proceeds from the sale of available-for-sale securities	421	55,418
Proceeds from the maturity of available-for-sale securities	0	52,362
Proceeds from the sale of long-term investments	9,108	2,913
Proceeds from the sale of property, plant and equipment	0	482
Purchases of property, plant and equipment	(39,676)	(42,452)
Cash paid in business combinations and asset acquisitions, net of cash acquired	(550)	(41,627)
Net cash provided by (used for) investing activities	(30,697)	6,571
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	(100,000)	0
Payment of debt issuance costs	(793)	(622)
Proceeds from issuance of common stock	45,419	50,293
Stock received for payment of employee taxes on vesting of restricted stock	(54,130)	(35,532)
Payments for repurchases of common stock	(50,013)	(720,196)
Net cash used for financing activities	(109,517)	(356,057)
Effect of exchange rate changes on cash and cash equivalents	9,382	9,116
Increase (decrease) in cash and cash equivalents	213,052	(92,353)
Cash and cash equivalents at end of period	678,284	524,333
Supplemental cash flow information:
Cash paid for interest	14,188	11,238
Cash paid for taxes, net	$ 40,021	$ 27,332

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of September 30, 2017 and December 31, 2016 was as follows: September 30, 2017 December 31, 2016 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ 50,000 $ — $ 50,000 2019 Term Loan 300,000 (278 ) 299,722 300,000 (434 ) 299,566 2024 Notes 350,000 (5,576 ) 344,424 350,000 (6,073 ) 343,927 Total outstanding debt $ 650,000 $ (5,854 ) $ 644,146 $ 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. 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 September 30, 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 September 30, 2017 , the interest rate on Cadence’s 2019 Term Loan was 2.57% . 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 September 30, 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 September 30, 2017 , Cadence was in compliance with all financial covenants associated with the 2024 Notes.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016 were as follows: As of September 30, December 31, (In thousands) Cash and cash equivalents $ 678,284 $ 465,232 Short-term investments 4,135 3,057 Cash, cash equivalents and short-term investments $ 682,419 $ 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 September 30, 2017 and December 31, 2016 : As of September 30, December 31, (In thousands) Cash and interest bearing deposits $ 188,797 $ 227,508 Money market funds 489,487 237,724 Total cash and cash equivalents $ 678,284 $ 465,232 Short-Term Investments The following tables summarize Cadence’s short-term investments as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Marketable equity securities $ 1,961 $ 2,174 $ — $ 4,135 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 equity securities are recorded in other income, net in the condensed consolidated income statements. Non-Marketable Investments Cadence’s non-marketable investments generally consist of voting preferred stock, convertible debt or other instruments of privately-held entities and are included in other assets on Cadence’s condensed consolidated balance sheets. Cadence’s non-marketable investments had a carrying value of $3.2 million as of September 30, 2017 and December 31, 2016 . Cadence records realized gains and losses from the sale of non-marketable investments and write-downs related to cost method investments due to other-than-temporary declines in value in the condensed consolidated income statements as other income, net. During the three months ended September 30, 2017 , Cadence recognized a gain of $9.1 million from the sale of one of its non-marketable investments.

Receivables, net

Receivables, net	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of September 30, 2017 and December 31, 2016 were as follows: As of September 30, December 31, (In thousands) Accounts receivable $ 95,274 $ 85,554 Unbilled accounts receivable 75,038 71,617 Long-term receivables 11,590 12,949 Total receivables 181,902 170,120 Less allowance for doubtful accounts — — Total receivables, net $ 181,902 $ 170,120 Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of September 30, 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	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2017 were as follows: Gross Carrying Amount (In thousands) Balance as of December 31, 2016 $ 572,764 Effect of foreign currency translation 2,148 Balance as of September 30, 2017 $ 574,912 Acquired Intangibles, Net Acquired intangibles as of September 30, 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 $ 340,772 $ (189,572 ) $ 151,200 Agreements and relationships 150,018 (87,154 ) 62,864 Tradenames, trademarks and patents 9,019 (6,906 ) 2,113 Total acquired intangibles $ 499,809 $ (283,632 ) $ 216,177 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 and nine months ended September 30, 2017 and October 1, 2016 was as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of product and maintenance $ 10,165 $ 10,593 $ 31,611 $ 31,802 Amortization of acquired intangibles 3,453 3,889 11,145 14,206 Total amortization of acquired intangibles $ 13,618 $ 14,482 $ 42,756 $ 46,008 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 $ 13,619 2018 52,193 2019 45,183 2020 39,975 2021 35,484 Thereafter 29,723 Total estimated amortization expense $ 216,177

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Sep. 30, 2017
Class of Stock Disclosures [Abstract]
STOCK REPURCHASE PROGRAM	STOCK REPURCHASE PROGRAM In January 2017, Cadence’s Board of Directors authorized the repurchase of shares of Cadence’s common stock with a value of up to $525.0 million in the aggregate. The actual timing and amount of repurchases are subject to business and market conditions, corporate and regulatory requirements, acquisition opportunities and other factors. As of September 30, 2017 , $475.0 million remained available to repurchase shares of our common stock under the current authorization. The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three and nine months ended September 30, 2017 and October 1, 2016 were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Shares repurchased 1,331 9,596 1,331 31,177 Total cost of repurchased shares $ 50,013 $ 240,096 $ 50,013 $ 720,196

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and October 1, 2016 as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of product and maintenance $ 612 $ 550 $ 1,632 $ 1,461 Cost of services 895 807 2,373 2,141 Marketing and sales 7,422 6,040 19,667 16,881 Research and development 21,792 18,002 55,288 46,376 General and administrative 5,369 4,599 15,048 13,127 Total stock-based compensation expense $ 36,090 $ 29,998 $ 94,008 $ 79,986 Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $277.5 million as of September 30, 2017 , which will be recognized over the remaining vesting period. The remaining weighted-average vesting period of unvested awards is 2.3 years .

Restructuring and Other Charges

Restructuring and Other Charges	9 Months Ended
	Sep. 30, 2017
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND OTHER CHARGES	RESTRUCTURING AND OTHER CHARGES Cadence has initiated various restructuring plans, most recently in fiscal 2016, in an effort to better align its resources with its business strategy. These restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions, estimated lease losses related to facilities vacated under the restructuring plans and charges related to assets abandoned as part of the restructuring plans. During the nine months ended September 30, 2017 , Cadence revised certain estimates made in connection with its 2016 restructuring plans and recorded credits of approximately $2.8 million . As of September 30, 2017 , total liabilities related to the 2016 restructuring plans were $3.6 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 nine months ended September 30, 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 (2,905 ) 79 (2,826 ) Prior restructuring plans 2 52 54 Cash payments (18,111 ) (162 ) (18,273 ) Effect of foreign currency translation 242 (3 ) 239 Balance, September 30, 2017 $ 3,630 $ 24 $ 3,654 The remaining liability for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of September 30, 2017 (In thousands) Accounts payable and accrued liabilities $ 3,457 Other long-term liabilities 197 Total liabilities $ 3,654

Net Income per Share

Net Income per Share	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and October 1, 2016 are as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands, except per share amounts) Net income $ 81,157 $ 64,712 $ 218,543 $ 164,609 Weighted average common shares used to calculate basic net income per share 273,156 280,622 271,739 288,476 Stock-based awards 8,244 6,851 7,815 6,893 Weighted average common shares used to calculate diluted net income per share 281,400 287,473 279,554 295,369 Net income per share - basic $ 0.30 $ 0.23 $ 0.80 $ 0.57 Net income per share - diluted $ 0.29 $ 0.23 $ 0.78 $ 0.56 The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 30, 2017 and October 1, 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 Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Long-term performance-based stock awards 100 1,250 186 1,008 Options to purchase shares of common stock — 160 404 729 Non-vested shares of restricted stock 12 7 62 36 Total potential common shares excluded 112 1,417 652 1,773

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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 September 30, 2017 and December 31, 2016 : Fair Value Measurements as of September 30, 2017 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 489,487 $ 489,487 $ — $ — Short-term investments: Marketable equity securities 4,135 4,135 — — Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust 29,498 29,498 — — Total Assets $ 523,120 $ 523,120 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 1,971 $ — $ 1,971 $ — 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	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and October 1, 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 and nine months ended September 30, 2017 and October 1, 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	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016 : As of September 30, December 31, (In thousands) Foreign currency translation loss $ (8,567 ) $ (22,370 ) Changes in defined benefit plan liabilities (3,627 ) (3,716 ) Unrealized holding gains on available-for-sale securities 2,174 926 Total accumulated other comprehensive loss $ (10,020 ) $ (25,160 ) For the three and nine months ended September 30, 2017 and October 1, 2016 there were no significant amounts reclassified from accumulated other comprehensive loss to net income.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and October 1, 2016 : Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Americas: United States $ 208,348 $ 197,715 $ 620,525 $ 614,153 Other Americas 7,938 6,924 25,749 23,361 Total Americas 216,286 204,639 646,274 637,514 Asia 131,890 120,206 385,708 330,417 Europe, Middle East and Africa 94,681 83,124 284,415 257,308 Japan 42,541 38,251 124,913 121,864 Total $ 485,398 $ 446,220 $ 1,441,310 $ 1,347,103 The following table presents a summary of long-lived assets by geography as of September 30, 2017 and December 31, 2016 : As of September 30, December 31, (In thousands) Americas: United States $ 194,245 $ 193,750 Other Americas 641 757 Total Americas 194,886 194,507 Asia 34,925 30,564 Europe, Middle East and Africa 14,106 12,692 Japan 703 844 Total $ 244,620 $ 238,607

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of September 30, 2017 and December 31, 2016 was as follows: September 30, 2017 December 31, 2016 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ 50,000 $ — $ 50,000 2019 Term Loan 300,000 (278 ) 299,722 300,000 (434 ) 299,566 2024 Notes 350,000 (5,576 ) 344,424 350,000 (6,073 ) 343,927 Total outstanding debt $ 650,000 $ (5,854 ) $ 644,146 $ 700,000 $ (6,507 ) $ 693,493

Cash, Cash Equivalents and In22

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016 were as follows: As of September 30, December 31, (In thousands) Cash and cash equivalents $ 678,284 $ 465,232 Short-term investments 4,135 3,057 Cash, cash equivalents and short-term investments $ 682,419 $ 468,289
Summary of cash and cash equivalents	The following table summarizes Cadence’s cash and cash equivalents at fair value as of September 30, 2017 and December 31, 2016 : As of September 30, December 31, (In thousands) Cash and interest bearing deposits $ 188,797 $ 227,508 Money market funds 489,487 237,724 Total cash and cash equivalents $ 678,284 $ 465,232
Summary of short-term investments	The following tables summarize Cadence’s short-term investments as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Marketable equity securities $ 1,961 $ 2,174 $ — $ 4,135 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)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of September 30, 2017 and December 31, 2016 were as follows: As of September 30, December 31, (In thousands) Accounts receivable $ 95,274 $ 85,554 Unbilled accounts receivable 75,038 71,617 Long-term receivables 11,590 12,949 Total receivables 181,902 170,120 Less allowance for doubtful accounts — — Total receivables, net $ 181,902 $ 170,120

Goodwill and Acquired Intangi24

Goodwill and Acquired Intangibles (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during the nine months ended September 30, 2017 were as follows: Gross Carrying Amount (In thousands) Balance as of December 31, 2016 $ 572,764 Effect of foreign currency translation 2,148 Balance as of September 30, 2017 $ 574,912
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of September 30, 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 $ 340,772 $ (189,572 ) $ 151,200 Agreements and relationships 150,018 (87,154 ) 62,864 Tradenames, trademarks and patents 9,019 (6,906 ) 2,113 Total acquired intangibles $ 499,809 $ (283,632 ) $ 216,177 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 and nine months ended September 30, 2017 and October 1, 2016 was as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of product and maintenance $ 10,165 $ 10,593 $ 31,611 $ 31,802 Amortization of acquired intangibles 3,453 3,889 11,145 14,206 Total amortization of acquired intangibles $ 13,618 $ 14,482 $ 42,756 $ 46,008
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 $ 13,619 2018 52,193 2019 45,183 2020 39,975 2021 35,484 Thereafter 29,723 Total estimated amortization expense $ 216,177

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	9 Months Ended
	Sep. 30, 2017
Class of Stock Disclosures [Abstract]
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 and nine months ended September 30, 2017 and October 1, 2016 were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Shares repurchased 1,331 9,596 1,331 31,177 Total cost of repurchased shares $ 50,013 $ 240,096 $ 50,013 $ 720,196

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and October 1, 2016 as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of product and maintenance $ 612 $ 550 $ 1,632 $ 1,461 Cost of services 895 807 2,373 2,141 Marketing and sales 7,422 6,040 19,667 16,881 Research and development 21,792 18,002 55,288 46,376 General and administrative 5,369 4,599 15,048 13,127 Total stock-based compensation expense $ 36,090 $ 29,998 $ 94,008 $ 79,986

Restructuring and Other Charg27

Restructuring and Other Charges (Tables)	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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 (2,905 ) 79 (2,826 ) Prior restructuring plans 2 52 54 Cash payments (18,111 ) (162 ) (18,273 ) Effect of foreign currency translation 242 (3 ) 239 Balance, September 30, 2017 $ 3,630 $ 24 $ 3,654
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 September 30, 2017 (In thousands) Accounts payable and accrued liabilities $ 3,457 Other long-term liabilities 197 Total liabilities $ 3,654

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and October 1, 2016 are as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands, except per share amounts) Net income $ 81,157 $ 64,712 $ 218,543 $ 164,609 Weighted average common shares used to calculate basic net income per share 273,156 280,622 271,739 288,476 Stock-based awards 8,244 6,851 7,815 6,893 Weighted average common shares used to calculate diluted net income per share 281,400 287,473 279,554 295,369 Net income per share - basic $ 0.30 $ 0.23 $ 0.80 $ 0.57 Net income per share - diluted $ 0.29 $ 0.23 $ 0.78 $ 0.56
Potential shares of Cadence's common stock excluded	The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 30, 2017 and October 1, 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 Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Long-term performance-based stock awards 100 1,250 186 1,008 Options to purchase shares of common stock — 160 404 729 Non-vested shares of restricted stock 12 7 62 36 Total potential common shares excluded 112 1,417 652 1,773

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016 : Fair Value Measurements as of September 30, 2017 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 489,487 $ 489,487 $ — $ — Short-term investments: Marketable equity securities 4,135 4,135 — — Trading securities held in Non-Qualified Deferred Compensation, or NQDC, trust 29,498 29,498 — — Total Assets $ 523,120 $ 523,120 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 1,971 $ — $ 1,971 $ — 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)	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016 : As of September 30, December 31, (In thousands) Foreign currency translation loss $ (8,567 ) $ (22,370 ) Changes in defined benefit plan liabilities (3,627 ) (3,716 ) Unrealized holding gains on available-for-sale securities 2,174 926 Total accumulated other comprehensive loss $ (10,020 ) $ (25,160 )

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Summary of revenue by geography	The following table presents a summary of revenue by geography for the three and nine months ended September 30, 2017 and October 1, 2016 : Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Americas: United States $ 208,348 $ 197,715 $ 620,525 $ 614,153 Other Americas 7,938 6,924 25,749 23,361 Total Americas 216,286 204,639 646,274 637,514 Asia 131,890 120,206 385,708 330,417 Europe, Middle East and Africa 94,681 83,124 284,415 257,308 Japan 42,541 38,251 124,913 121,864 Total $ 485,398 $ 446,220 $ 1,441,310 $ 1,347,103
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of September 30, 2017 and December 31, 2016 : As of September 30, December 31, (In thousands) Americas: United States $ 194,245 $ 193,750 Other Americas 641 757 Total Americas 194,886 194,507 Asia 34,925 30,564 Europe, Middle East and Africa 14,106 12,692 Japan 703 844 Total $ 244,620 $ 238,607

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Jan. 28, 2016	Oct. 09, 2014
Debt Instrument [Line Items]
Principal	$ 650,000	$ 700,000
Unamortized discount and debt issuance costs	(5,854)	(6,507)
Line of Credit, Current	0	50,000
Carrying value	644,146	643,493
Carrying value	644,146	693,493
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Principal	0	50,000
Line of Credit, Current	0	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	(278)	(434)
Carrying value	299,722	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	(5,576)	(6,073)		$ (1,400)
Carrying value	$ 344,424	$ 343,927

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual) $ in Millions	9 Months Ended
	Sep. 30, 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, current borrowing capacity	$ 350
Credit facility additional borrowing capacity available	250
Credit facility, maximum borrowing capacity	$ 600
Credit facility, maturity date	Jan. 28, 2022
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 September 30, 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 ($)	Oct. 09, 2014USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Unamortized discount			$ 5,854	$ 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
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
Unamortized discount			$ 278	434
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			2.57%
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	$ 5,576	$ 6,073
Debt issuance costs		$ 6,200

Cash, Cash Equivalents and In35

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Oct. 01, 2016	Jan. 02, 2016
Cash, Cash Equivalents and Investments [Abstract]
Cash and cash equivalents	$ 678,284	$ 465,232	$ 524,333	$ 616,686
Short-term investments	4,135	3,057
Cash, cash equivalents, and short-term investments	$ 682,419	$ 468,289

Cash, Cash Equivalents and In36

Cash, Cash Equivalents and Investments (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Oct. 01, 2016	Jan. 02, 2016
Classified as cash and cash equivalents
Cash and interest bearing deposits	$ 188,797	$ 227,508
Money market funds	489,487	237,724
Total cash and cash equivalents	$ 678,284	$ 465,232	$ 524,333	$ 616,686

Cash, Cash Equivalents and In37

Cash, Cash Equivalents and Investments (Details 2) - Marketable equity securities [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Short-term investments
Amortized Cost	$ 1,961	$ 2,131
Gross Unrealized Gains	2,174	926
Gross Unrealized Losses	0	0
Fair Value	$ 4,135	$ 3,057

Cash, Cash Equivalents and In38

Cash, Cash Equivalents and Investments (Details 3) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Security Owned Not Readily Marketable [Line Items]
Carrying value of non-marketable investments	$ 3.2	$ 3.2
Cost-method investments [Member]
Security Owned Not Readily Marketable [Line Items]
Gain on sale of investment	$ 9.1

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current and long-term receivables balances
Accounts receivable	$ 95,274	$ 85,554
Unbilled accounts receivable	75,038	71,617
Long-term receivables	11,590	12,949
Total receivables	181,902	170,120
Less allowance for doubtful accounts	0	0
Total receivables, net	$ 181,902	$ 170,120

Receivables, net (Details Textu

Receivables, net (Details Textual) - Customer	Sep. 30, 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 Intangi41

Goodwill and Acquired Intangibles (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Changes in the carrying amount of goodwill
Balance as of December 31, 2016	$ 572,764
Effect of foreign currency translation	2,148
Balance as of September 30, 2017	$ 574,912

Goodwill and Acquired Intangi42

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 499,809	$ 526,537
Accumulated amortization	(283,632)	(267,723)
Acquired intangibles, net	216,177	258,814
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	340,772	342,108
Accumulated amortization	(189,572)	(160,178)
Acquired intangibles, net	151,200	181,930
Agreements and Relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	150,018	174,623
Accumulated amortization	(87,154)	(100,778)
Acquired intangibles, net	62,864	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	9,019	9,806
Accumulated amortization	(6,906)	(6,767)
Acquired intangibles, net	$ 2,113	$ 3,039

Goodwill and Acquired Intangi43

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Amortization of acquired intangibles
Cost of product and maintenance	$ 10,165	$ 10,593	$ 31,611	$ 31,802
Amortization of acquired intangibles	3,453	3,889	11,145	14,206
Total amortization of acquired intangibles	$ 13,618	$ 14,482	$ 42,756	$ 46,008

Goodwill and Acquired Intangi44

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Estimated amortization expense
2017 – remaining period	$ 13,619
2,018	52,193
2,019	45,183
2,020	39,975
2,021	35,484
Thereafter	29,723
Acquired intangibles, net	$ 216,177	$ 258,814

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016	Jan. 31, 2017
Class of Stock Disclosures [Abstract]
Authorized amount					$ 525,000
Remaining authorized repurchase amount	$ 475,000		$ 475,000
Shares repurchased	1,331	9,596	1,331	31,177
Total cost of repurchased shares	$ 50,013	$ 240,096	$ 50,013	$ 720,196

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 36,090	$ 29,998	$ 94,008	$ 79,986
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	612	550	1,632	1,461
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	895	807	2,373	2,141
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	7,422	6,040	19,667	16,881
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	21,792	18,002	55,288	46,376
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 5,369	$ 4,599	$ 15,048	$ 13,127

Stock Based Compensation (Det47

Stock Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 277.5
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years 4 months

Restructuring and Other Charg48

Restructuring and Other Charges (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ (55)	$ 101	$ (2,772)	$ 14,613
Restructuring reserve	3,654		3,654		$ 24,460
2016 restructuring plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges			(2,826)
Restructuring reserve	$ 3,600		$ 3,600

Restructuring and Other Charg49

Restructuring and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Restructuring Cost and Reserve [Line Items]
Beginning balance			$ 24,460
Restructuring and other charges, net	$ (55)	$ 101	(2,772)	$ 14,613
Cash payments			(18,273)
Effect of foreign currency translation			239
Ending balance	3,654		3,654
Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			24,402
Cash payments			(18,111)
Effect of foreign currency translation			242
Ending balance	3,630		3,630
Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			58
Cash payments			(162)
Effect of foreign currency translation			(3)
Ending balance	24		24
2016 restructuring plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			(2,826)
Ending balance	$ 3,600		3,600
2016 restructuring plan [Member] | Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			(2,905)
2016 restructuring plan [Member] | Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			79
Prior restructuring plans [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			54
Prior restructuring plans [Member] | Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			2
Prior restructuring plans [Member] | Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net			$ 52

Restructuring and Other Charg50

Restructuring and Other Charges (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 3,654	$ 24,460
Accounts payable and accrued liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	3,457
Other long term liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 197

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 81,157	$ 64,712	$ 218,543	$ 164,609
Weighted-average common shares used to calculate basic net income per share (in shares)	273,156	280,622	271,739	288,476
Stock-based awards	8,244	6,851	7,815	6,893
Weighted average common shares used to calculate diluted net income per share (in shares)	281,400	287,473	279,554	295,369
Net income per share - basic (in usd per share)	$ 0.30	$ 0.23	$ 0.80	$ 0.57
Net income per share - diluted (in usd per share)	$ 0.29	$ 0.23	$ 0.78	$ 0.56

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	112	1,417	652	1,773
Long-term performance-based stock awards
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	100	1,250	186	1,008
Options to purchase shares of common stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	0	160	404	729
Non-vested shares of restricted stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	12	7	62	36

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	$ 29,498	$ 26,622
Total Assets	523,120	267,403
Liabilities
Foreign currency exchange contracts	1,971	2,653
Money market funds [Member]
Assets
Cash equivalents	489,487	237,724
Marketable equity securities [Member]
Short-term investments:
Available-for-sale securities	4,135	3,057
Fair Value Measurements, Level 1 [Member]
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	29,498	26,622
Total Assets	523,120	267,403
Liabilities
Foreign currency exchange contracts	0	0
Fair Value Measurements, Level 1 [Member] | Money market funds [Member]
Assets
Cash equivalents	489,487	237,724
Fair Value Measurements, Level 1 [Member] | Marketable equity securities [Member]
Short-term investments:
Available-for-sale securities	4,135	3,057
Fair Value Measurements, Level 2 [Member]
Short-term investments:
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	0	0
Total Assets	0	0
Liabilities
Foreign currency exchange contracts	1,971	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
Total Assets	0	0
Liabilities
Foreign currency exchange contracts	0	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)	9 Months Ended
	Sep. 30, 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	Sep. 30, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation gain	$ (8,567)	$ (22,370)
Changes in defined benefit plan liabilities	(3,627)	(3,716)
Unrealized holding gains on available-for-sale securities	2,174	926
Total accumulated other comprehensive loss	$ (10,020)	$ (25,160)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Americas:
Total Americas	$ 216,286	$ 204,639	$ 646,274	$ 637,514
Total revenue	485,398	446,220	1,441,310	1,347,103
United States [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	208,348	197,715	620,525	614,153
Other Americas [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	7,938	6,924	25,749	23,361
Asia [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	131,890	120,206	385,708	330,417
EMEA [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	94,681	83,124	284,415	257,308
Japan [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic Areas, revenue from External Customers	$ 42,541	$ 38,251	$ 124,913	$ 121,864

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Americas:
Total Americas	$ 194,886	$ 194,507
Total long-lived assets	244,620	238,607
United States [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	194,245	193,750
Other Americas [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	641	757
Asia [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	34,925	30,564
EMEA [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	14,106	12,692
Japan [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	$ 703	$ 844