Cadence Design Systems (CDNS) 10-Q 22 Oct 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 29, 2018shares
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. 29, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-29
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding	282,142,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Current Assets:
Cash and cash equivalents	$ 544,585	$ 688,087
Short-term investments	5,446	4,455
Receivables, net	240,836	190,426
Inventories	30,535	33,209
Prepaid expenses and other	66,979	63,811
Total current assets	888,381	979,988
Property, plant and equipment, net of accumulated depreciation of $685,212 and $658,377, respectively	248,165	251,342
Goodwill	661,341	666,009
Acquired intangibles, net	238,385	278,835
Long-term receivables	4,395	12,239
Other assets	232,540	230,301
Total assets	2,273,207	2,418,714
Current Liabilities:
Revolving credit facility	0	85,000
Accounts payable and accrued liabilities	212,153	221,101
Current portion of deferred revenue	329,168	336,297
Total current liabilities	541,321	642,398
Long-Term Liabilities:
Long-term portion of deferred revenue	49,343	61,513
Long-term debt	345,113	644,369
Other long-term liabilities	80,013	81,232
Total long-term liabilities	474,469	787,114
Commitments and contingencies
Stockholders' Equity:
Common stock and capital in excess of par value	1,897,749	1,829,950
Treasury stock, at cost	(1,292,265)	(1,178,121)
Retained earnings	674,284	341,003
Accumulated other comprehensive loss	(22,351)	(3,630)
Total stockholders’ equity	1,257,417	989,202
Total liabilities and stockholders’ equity	$ 2,273,207	$ 2,418,714

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Statement of Financial Position [Abstract]
Accumulated depreciation on property, plant and equipment	$ 685,212	$ 658,377

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Revenue	$ 532,468	$ 485,398	$ 1,568,172	$ 1,441,310
Costs and Expenses:
Marketing and sales	108,608	104,263	327,056	311,507
Research and development	223,231	206,568	666,545	600,755
General and administrative	33,247	36,302	101,421	100,892
Amortization of acquired intangibles	3,470	3,453	10,618	11,145
Restructuring and other credits	(172)	(55)	(2,610)	(2,772)
Total costs and expenses	428,838	405,013	1,285,653	1,198,633
Income from operations	103,630	80,385	282,519	242,677
Interest expense	(5,177)	(6,225)	(18,821)	(18,952)
Other income, net	1,106	12,387	4,055	14,370
Income before provision for income taxes	99,559	86,547	267,753	238,095
Provision for income taxes	241	5,390	20,401	19,552
Net income	$ 99,318	$ 81,157	$ 247,352	$ 218,543
Net income per share - basic (in usd per share)	$ 0.36	$ 0.30	$ 0.90	$ 0.80
Net income per share - diluted (in usd per share)	$ 0.35	$ 0.29	$ 0.88	$ 0.78
Weighted average common shares outstanding - basic (in shares)	273,716	273,156	273,718	271,739
Weighted average common shares outstanding - diluted (in shares)	281,646	281,400	281,391	279,554
Product and maintenance
Revenue	$ 494,990	$ 451,229	$ 1,463,469	$ 1,346,483
Costs and Expenses:
Cost of sales	36,406	34,825	118,263	117,371
Services
Revenue	37,478	34,169	104,703	94,827
Costs and Expenses:
Cost of sales	$ 24,048	$ 19,657	$ 64,360	$ 59,735

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 99,318	$ 81,157	$ 247,352	$ 218,543
Other comprehensive income (loss), net of tax effects:
Foreign currency translation adjustments	(9,186)	3,549	(16,237)	13,803
Changes in unrealized holding gains or losses on available-for-sale securities, net of reclassification adjustment for realized gains and losses	0	1,000	0	1,248
Changes in defined benefit plan liabilities	7	19	154	89
Total other comprehensive income (loss), net of tax effects	(9,179)	4,568	(16,083)	15,140
Comprehensive income	$ 90,139	$ 85,725	$ 231,269	$ 233,683

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Statement of Cash Flows [Abstract]
Cash and cash equivalents at beginning of period	$ 688,087	$ 465,232
Cash flows from operating activities:
Net income	247,352	218,543
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	89,003	86,605
Amortization of debt discount and fees	950	920
Stock-based compensation	125,121	94,008
Gain on investments, net	(2,617)	(12,502)
Deferred income taxes	(3,221)	212
Provisions for losses on receivables	4,790	1,499
Other non-cash items	1,589	3,763
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	(28,471)	(9,539)
Inventories	(1,455)	2,282
Prepaid expenses and other	2,018	(4,627)
Other assets	3,571	(14,469)
Accounts payable and accrued liabilities	(41,718)	(41,127)
Deferred revenue	77,370	14,245
Other long-term liabilities	(1,415)	4,071
Net cash provided by operating activities	472,867	343,884
Cash flows from investing activities:
Proceeds from the sale of available-for-sale securities	0	421
Proceeds from the sale of long-term investments	0	9,108
Purchases of property, plant and equipment	(41,761)	(39,676)
Cash paid in business combinations and asset acquisitions, net of cash acquired	0	(550)
Net cash used for investing activities	(41,761)	(30,697)
Cash flows from financing activities:
Proceeds from revolving credit facility	0	50,000
Payment on revolving credit facility	(85,000)	(100,000)
Principal payments on term loan	(300,000)	0
Payment of debt issuance costs	0	(793)
Proceeds from issuance of common stock	38,190	45,419
Stock received for payment of employee taxes on vesting of restricted stock	(59,619)	(54,130)
Payments for repurchases of common stock	(150,036)	(50,013)
Change in book overdraft	(3,867)	0
Net cash used for financing activities	(560,332)	(109,517)
Effect of exchange rate changes on cash and cash equivalents	(14,276)	9,382
Increase (decrease) in cash and cash equivalents	(143,502)	213,052
Cash and cash equivalents at end of period	544,585	678,284
Supplemental cash flow information:
Cash paid for interest	15,360	14,188
Cash paid for taxes, net	$ 29,858	$ 40,021

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. (“Cadence”) without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“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, (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 30, 2017 . 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. Certain prior period balances have been reclassified to conform to the current year presentation. 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. Comparability Effective on the first day of fiscal 2018, Cadence adopted multiple new accounting standards. Prior periods were not retrospectively restated, so the consolidated balance sheet as of December 30, 2017 and the condensed consolidated income statements for the three and nine months ended September 30, 2017 were prepared using accounting standards that were different than those in effect for the three and nine months ended September 29, 2018 . Therefore, the consolidated balance sheets as of September 29, 2018 and December 30, 2017 are not directly comparable, nor are the results of operations for the three and nine months ended September 29, 2018 and September 30, 2017 . Recently Adopted Accounting Standards Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)” and Subtopic 985-605 “Software - Revenue Recognition.” Topic 605 and Subtopic 985-605 are collectively referred to as “Topic 605” or “prior GAAP.” Under Topic 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, Topic 606 requires enhanced disclosures, including disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB issued several amendments to the standard, including updates on accounting for licenses of intellectual property (“IP”) and identifying performance obligations. Cadence adopted Topic 606 on the first day of fiscal 2018 using the modified retrospective transition method. Under this method, Cadence evaluated contracts that were in effect at the beginning of fiscal 2018 as if those contracts had been accounted for under Topic 606. Cadence did not evaluate individual modifications for those periods prior to the adoption date, but the aggregate effect of all modifications as of the adoption date and such effects are provided below. Under the modified retrospective transition approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with historical, pre-Topic 606 accounting. A cumulative catch up adjustment was recorded to beginning retained earnings to reflect the impact of all existing arrangements under Topic 606. The most significant impacts of the adoption of Topic 606 are as follows: • At the adoption date, Cadence increased retained earnings by $85.4 million for uncompleted contracts for which revenue will not be recognized in future periods under Topic 606. This revenue would otherwise have been recognized in prior periods, so the beginning balance of receivables increased by $47.3 million , contract assets were established at $4.0 million , deferred revenue decreased by $57.4 million and accrued liabilities increased by $23.3 million ; • Revenue generated under Topic 606 is expected to be slightly lower than revenue would have been under Topic 605 in fiscal 2018. This is the result of a combination of factors, including the elimination of deferred revenue that, under Topic 605, would have continued to be recognized into revenue in 2018 and beyond, as well as changes in the timing of revenue recognition as discussed below. The actual effects on revenue recognized for the first three quarters of fiscal 2018 are reported in the table below; and • Cadence capitalized $27.3 million of incremental sales commission costs at the adoption date directly related to obtaining customer contracts and is amortizing these costs over the life of the contract. Cadence will continue to recognize revenue over time for its time-based software arrangements, which generate a majority of total revenue. However, the reason for the similar accounting treatment is different under Topic 606 than under Topic 605. Under Topic 605, Cadence could not establish vendor specific objective evidence (“VSOE”) for its undelivered elements and therefore was not able to separate its delivered software licenses from those undelivered elements, such as technical support and unspecified (when-and-if available) update rights. Topic 606 no longer requires separability of promised goods or services, such as software licenses, technical support, or unspecified update rights on the basis of VSOE. Rather, Topic 606 requires Cadence to identify the performance obligations in the contract — that is, those promised goods and services (or bundles of promised goods or services) that are distinct — and allocate the transaction price of the contract to those performance obligations on the basis of stand-alone selling prices (“SSPs”). The transaction price allocated to each performance obligation is then recognized either at a point in time or over time using an appropriate measure of progress. Under Topic 606, Cadence has concluded that its software licenses in time-based arrangements are not distinct from each other, or from its obligation to provide unspecified software updates to the licensed software throughout the license term, because the multiple software licenses represent inputs to a single, combined offering, and timely, relevant software updates are integral to maintaining the utility of the software licenses. Cadence will recognize revenue for the combined performance obligation, which also includes the co-terminus technical support provided to the customer, ratably over the term of the arrangement. In contrast to the similar accounting result for time-based software arrangements, revenue related to certain IP licenses will now be recognized upon delivery under Topic 606, as opposed to over time under Topic 605, because the requirement to have VSOE for undelivered elements under current accounting standards is eliminated under Topic 606. Certain perpetual software licenses will now be recognized over time under Topic 606, as opposed to upon delivery under Topic 605, because these software licenses and the when-and-if available updates provided to the customer are accounted for together as one performance obligation and recognized over time. The timing of revenue recognition for hardware and professional services is expected to remain substantially unchanged. Cadence’s overall mix of revenue recognized at a point in time versus over time is expected to remain relatively constant, with approximately 90% recognizable over time. The following table summarizes the effects of adopting Topic 606 on Cadence’s condensed consolidated balance sheet as of September 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Receivables, net $ 240,836 $ (21,647 ) $ 219,189 Prepaid expenses and other 66,979 (11,789 ) 55,190 Long-term receivables 4,395 1,453 5,848 Other assets 232,540 (12,663 ) 219,877 Accounts payable and accrued liabilities* 212,153 (22,623 ) 189,530 Current portion of deferred revenue 329,168 51,315 380,483 Long-term portion of deferred revenue 49,343 13,639 62,982 Retained earnings 674,284 (87,726 ) 586,558 Accumulated other comprehensive loss (22,351 ) 749 (21,602 ) _____________ * Cadence has certain arrangements under which consideration is received from customers prior to identifying the specific goods or services to be delivered under the contract. Cadence records an accrued liability on a contract-by-contract basis at the end of each reporting period for cash consideration received. The following table summarizes the effects of adopting Topic 606 on Cadence’s condensed consolidated income statement for the three months ended September 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands, except per share amounts) Product and maintenance revenue $ 494,990 $ (5,505 ) $ 489,485 Services revenue 37,478 (1,004 ) 36,474 Cost of product and maintenance 36,406 (2,654 ) 33,752 Marketing and sales expense 108,608 (1,150 ) 107,458 Provision for income taxes 241 1,953 2,194 Net income 99,318 (4,658 ) 94,660 Net income per share - basic 0.36 (0.01 ) 0.35 Net income per share - diluted 0.35 (0.01 ) 0.34 The following table summarizes the effects of adopting Topic 606 on Cadence’s condensed consolidated income statement for the nine months ended September 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands, except per share amounts) Product and maintenance revenue $ 1,463,469 $ (3,941 ) $ 1,459,528 Services revenue 104,703 2,296 106,999 Cost of product and maintenance 118,263 (2,791 ) 115,472 Marketing and sales expense 327,056 (5,126 ) 321,930 Provision for income taxes 20,401 2,359 22,760 Net income 247,352 3,913 251,265 Net income per share - basic 0.90 0.02 0.92 Net income per share - diluted 0.88 0.01 0.89 Cadence’s net cash provided by operating activities for the nine months ended September 29, 2018 did not change due to the adoption of Topic 606. The following table summarizes the effects of adopting Topic 606 on the financial statement line items of Cadence’s condensed consolidated statement of cash flows for the nine months ended September 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Net income $ 247,352 $ 3,913 $ 251,265 Changes in operating assets and liabilities: Receivables (28,471 ) (22,568 ) (51,039 ) Prepaid expenses and other 2,018 7,883 9,901 Other assets 3,571 (2,010 ) 1,561 Accounts payable and accrued liabilities (41,718 ) 5,194 (36,524 ) Deferred revenue 77,370 7,588 84,958 Financial Instruments In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Cadence adopted this standard on the first day of fiscal 2018, modifying its accounting and required disclosures for investments in equity securities, other than those accounted for using the equity method of accounting. Cadence’s marketable investments in equity securities consist of investments in a publicly-held company and are presented as short-term investments in the condensed consolidated balance sheets. Prior to the adoption of the updated standard, these investments were classified as available-for-sale, and changes in the fair value of these investments were reported in accumulated other comprehensive loss in the condensed consolidated balance sheets. The new standard eliminated the available-for-sale classification for equity securities and requires changes in the fair value of these investments to be recognized through net income for the three and nine months ended September 29, 2018 and each subsequent reporting period. Upon adoption, Cadence recorded a cumulative-effect adjustment to increase retained earnings in the amount of $2.6 million related to unrealized holding gains previously recorded in accumulated other comprehensive loss. For additional information regarding changes in the fair value of Cadences investments in marketable equity securities during the three and nine months ended September 29, 2018 , see Note 3 in the notes to condensed consolidated financial statements under the heading “Short-Term Investments.” Cadence’s non-marketable investments in equity securities consist of investments in privately-held companies and are presented as other assets in the condensed consolidated balance sheets. Prior to the adoption of the updated standard, non-marketable investments that were not accounted for using the equity method of accounting were recorded at cost, less impairment. The new standard eliminated the cost method of accounting for investments in equity securities that do not have readily determinable fair values and permits the election of a measurement alternative that allows such securities to be recorded at cost, less impairment, if any, plus or minus changes resulting from observable price changes in market-based transactions for an identical or similar investment of the same issuer. Cadence adopted the provisions of the new standard applicable to its investments in equity securities without a readily determinable fair value on a prospective basis and elected the measurement alternative for non-marketable investments previously accounted for under the cost method of accounting. Gains and losses resulting from observable price changes or impairment will be recorded through net income in the period incurred. During the nine months ended September 29, 2018 , there were no observable price changes or impairments related to Cadence’s non-marketable investments in equity securities. Cadence’s non-marketable investments, including those accounting for using the equity method of accounting, had a carrying value of $2.9 million and $3.0 million as of September 29, 2018 and December 30, 2017 , respectively. Income Tax In October 2016, the FASB issued ASU 2016-16, “Income taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory.” The new guidance requires the recognition of the income tax consequences of an intra-entity asset transfer when the transfer occurs rather than when the asset has been sold to a third party. For intra-entity transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. Cadence adopted the new standard on the first day of fiscal 2018 using the modified retrospective transition approach and recorded a cumulative-effect adjustment to decrease retained earnings in the amount of $8.3 million . The cumulative-effect adjustment includes the write-off of income tax consequences deferred from prior intra-entity transfers involving assets other than inventory and new deferred tax assets for amounts not recognized under U.S. GAAP. We anticipate the potential for increased volatility in future effective tax rates from the adoption of this guidance. Stock-based Compensation In May 2017, the FASB issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting,” that provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Cadence adopted the standard on the first day of fiscal 2018. The adoption of this standard did not impact Cadence’s condensed consolidated financial statements or the related disclosures. Retained Earnings The following table presents the cumulative effect adjustments, net of income tax effects, to beginning retained earnings for new accounting standards adopted by Cadence on the first day of fiscal 2018: Retained Earnings (In thousands) Balance, December 30, 2017, as previously reported $ 341,003 Cumulative effect adjustment from the adoption of new accounting standards: Revenue from Contracts with Customers (Topic 606) 91,640 Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities 2,638 Income taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory (8,349 ) Balance, December 30, 2017, as adjusted 426,932 Net Income 247,352 Balance, September 29, 2018 $ 674,284

Debt

Debt	9 Months Ended
	Sep. 29, 2018
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of September 29, 2018 and December 30, 2017 was as follows: September 29, 2018 December 30, 2017 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ 85,000 $ — $ 85,000 2019 Term Loan — — — 300,000 (226 ) 299,774 2024 Notes 350,000 (4,887 ) 345,113 350,000 (5,405 ) 344,595 Total outstanding debt $ 350,000 $ (4,887 ) $ 345,113 $ 735,000 $ (5,631 ) $ 729,369 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. 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 29, 2018 , 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 (the “2019 Term Loan”) with a group of lenders led by JPMorgan Chase Bank, N.A., as administrative agent. In July 2018, Cadence prepaid the outstanding principal amount of $300.0 million and all accrued interest. 2024 Notes In October 2014, Cadence issued $350.0 million aggregate principal amount of 4.375% Senior Notes due October 15, 2024 (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 29, 2018 , 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. 29, 2018
Cash, Cash Equivalents, and Short-term 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 29, 2018 and December 30, 2017 were as follows: As of September 29, December 30, (In thousands) Cash and cash equivalents $ 544,585 $ 688,087 Short-term investments 5,446 4,455 Cash, cash equivalents and short-term investments $ 550,031 $ 692,542 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 29, 2018 and December 30, 2017 : As of September 29, December 30, (In thousands) Cash and interest bearing deposits $ 202,066 $ 184,153 Money market funds 342,519 503,934 Total cash and cash equivalents $ 544,585 $ 688,087 Short-Term Investments Cadence’s short-term investments are comprised of marketable equity securities of publicly-held entities. During the three and nine months ended September 29, 2018 , Cadence recorded losses of $0.4 million and gains of $1.0 million , respectively, to other income, net in the condensed consolidated income statements from its investments in marketable equity securities held as of September 29, 2018 .

Receivables, net

Receivables, net	9 Months Ended
	Sep. 29, 2018
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of September 29, 2018 and December 30, 2017 were as follows: As of September 29, December 30, (In thousands) Accounts receivable $ 117,387 $ 119,325 Unbilled accounts receivable 127,699 71,101 Long-term receivables 4,395 12,239 Total receivables 249,481 202,665 Less allowance for doubtful accounts (4,250 ) — Total receivables, net $ 245,231 $ 202,665 Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of September 29, 2018 , no one customer accounted for 10% or more of Cadence’s total receivables. As of December 30, 2017 , one customer accounted for 17% of Cadence’s total receivables.

Revenue

Revenue	9 Months Ended
	Sep. 29, 2018
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which Cadence expects to be entitled in exchange for promised goods or services. Cadence’s performance obligations are satisfied either over time or at a point in time. Revenue from performance obligations that transferred to customers over time accounted for approximately 90% of Cadence’s total revenue for the three and nine months ended September 29, 2018 . Product and maintenance revenue includes Cadence’s licenses of time-based and perpetual software, sales of emulation hardware, licenses of per-use IP, and the related maintenance on these licenses and sales. Service revenue includes revenue received for performing engineering services (which are generally not related to the functionality of other licensed products), customized IP on a fixed fee basis, and sales from cloud-based solutions that provide customers with software and services over a period of time. Cadence enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, Cadence allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its standalone selling price. The stated contract value is generally the transaction price to be allocated to the separate performance obligations. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities. Nature of Products and Services Software Cadence’s time-based license arrangements grant customers the right to access and use all of the licensed products at the outset of an arrangement and updates are generally made available throughout the entire term of the arrangement, which is generally two to three years. Cadence’s updates provide continued access to evolving technology as customers’ designs migrate to more advanced nodes and as our customers’ technological requirements evolve. In addition, certain time-based license arrangements include remix rights and unspecified additional products that become commercially available during the term of the agreement. Payments are generally received in equal or near equal installments over the term of the agreement. As explained in Note 1, the multiple software licenses, related updates, and technical support in these time-based arrangements constitute a single, combined performance obligation and revenue is recognized over the term of the license, commencing upon the later of the effective date of the arrangement or transfer of the software license. Remix rights are not an additional promised good or service in the contract, and where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer. Hardware Cadence generally has two performance obligations in arrangements involving the sale or lease of hardware products. The first performance obligation is to transfer the hardware product (which includes software integral to the functionality of the hardware product). The second performance obligation is to provide maintenance on hardware and its embedded software, which includes rights to technical support, hardware repairs and software updates that are all provided over the same term and have the same time-based pattern of transfer to the customer. Transaction price allocated to the hardware product is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. Cadence has concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. Transaction price allocated to maintenance is recognized as revenue ratably over the maintenance term. Payments for hardware contracts are generally received upon delivery of the hardware product. IP Cadence generally licenses IP under nonexclusive license agreements that provide usage rights for specific designs. In addition, for certain of Cadence’s IP license agreements, royalties are collected as customers ship their own products that incorporate Cadence IP. These arrangements generally have two performance obligations — transferring the licensed IP and associated maintenance, which includes rights to technical support and software updates that are all provided over the maintenance term and have a time-based pattern of transfer to the customer. Revenue allocated to the IP license is recognized at a point in time upon the later of the delivery of the IP or the beginning of the license period and revenue allocated to the maintenance is recognized over the maintenance term. Royalties are recognized as revenue in the quarter in which the applicable Cadence customer ships its products that incorporate Cadence IP. Payments for IP contracts are generally received upon delivery of the IP. Cadence customizes certain IP and revenue related to this customization is recognized as “Services” below. Services Revenue from service contracts is recognized over time, generally using costs incurred or hours expended to measure progress. Cadence has a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. Payments for services are generally due upon milestones in the contract or upon consumption of the hourly resources. Cadence combines its products and technologies into five product groups related to major design activities. The following table shows the percentage of product and related maintenance revenue contributed by each of Cadence’s five product groups and services for the three and nine months ended September 29, 2018 and September 30, 2017 : Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Functional Verification, including Emulation and Prototyping Hardware 22 % 21 % 24 % 22 % Digital IC Design and Signoff 30 % 30 % 29 % 29 % Custom IC Design 26 % 28 % 26 % 27 % System Interconnect and Analysis 9 % 10 % 9 % 10 % IP 13 % 11 % 12 % 12 % Total 100 % 100 % 100 % 100 % Revenue by product group fluctuates from period to period based on demand for products and services, and Cadence’s available resources to deliver them. Certain of Cadence’s licensing arrangements allow customers the ability to remix among software products. Cadence also has arrangements with customers that include a combination of products, with the actual product selection and number of licensed users to be determined at a later date. For these arrangements, Cadence estimates the allocation of the revenue to product groups based upon the expected usage of products. The actual usage of Cadence’s products by these customers may differ and, if that proves to be the case, the revenue allocation in the table above would differ. Significant Judgments More judgments and estimates are required under Topic 606 than were required under Topic 605. Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements may be dependent on contract-specific terms and may vary in some instances. Cadence’s contracts with customers often include promises to transfer multiple software and/or IP licenses and services, including professional services, technical support services, and rights to unspecified updates to a customer. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or not distinct and thus accounted for together, requires significant judgment. In some arrangements, such as most of Cadence’s IP license arrangements, Cadence has concluded that the licenses and associated services are distinct from each other. In others, like Cadence’s time-based software arrangements, the licenses and certain services are not distinct from each other. As described in Note 1, Cadence’s time-based software arrangements include multiple software licenses and updates to the licensed software products, as well as technical support, and Cadence has concluded that these promised goods and services are a single, combined performance obligation. Judgment is required to determine the SSP for each distinct performance obligation. Cadence rarely licenses or sells products on a standalone basis, so Cadence is required to estimate the range of SSPs for each performance obligation. In instances where SSP is not directly observable because Cadence does not sell the license, product or service separately, Cadence determines the SSP using information that may include market conditions and other observable inputs. Cadence typically has more than one SSP for individual performance obligations due to the stratification of those items by classes of customers and circumstances. In these instances, Cadence may use information such as the size of the customer and geographic region of the customer in determining the SSP. Revenue is recognized over time for Cadence’s maintenance and professional services that are separate performance obligations, and also for Cadence’s combined performance obligations that include software licenses, updates, and technical support. For Cadence’s professional services, revenue is recognized over time, generally using costs incurred or hours expended to measure progress. Judgment is required in estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. For Cadence’s other performance obligations recognized over time, revenue is generally recognized using a time-based measure of progress reflecting generally consistent efforts to satisfy those performance obligations throughout the arrangement term. If a group of agreements are so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. Cadence exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. Cadence’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved. Cadence is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract or based on Cadence’s expectations of the term of the contract. Generally, Cadence has not experienced significant returns or refunds to customers. These estimates require significant judgment and the change in these estimates could have an effect on its results of operations during the periods involved. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on Cadence’s condensed consolidated balance sheet. Cadence records a contract asset when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. For Cadence’s time-based software agreements, customers are generally invoiced in equal, quarterly amounts, although some customers prefer to be invoiced in single or annual amounts. For certain hardware and IP agreements with payment plans, Cadence records a receivable related to revenue recognized upon delivery because it has an unconditional right to invoice and receive payment in the future related to those deliveries. The contract assets indicated below are presented as prepaid expenses and other in the condensed consolidated balance sheet and primarily relate to Cadence’s rights to consideration for work completed but not billed as of September 29, 2018 on services and customized IP contracts. The contract assets are transferred to receivables when the rights become unconditional, usually upon completion of a milestone. Cadence’s contract balances as of September 29, 2018 were as follows: As of September 29, December 30, As Adjusted (In thousands) Contract assets $ 15,151 $ 3,964 Deferred revenue 378,511 336,060 During the three and nine months ended September 29, 2018 , Cadence recognized revenue of $39.9 million and $250.2 million , respectively, that was included in the deferred revenue balance, as adjusted for Topic 606, as of December 30, 2017 . All other activity in deferred revenue is due to the timing of invoices in relation to the timing of revenue as described above. Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company has elected to exclude the future royalty payments from the remaining performance obligations. Contracted but unsatisfied performance obligations were approximately $2.4 billion as of September 29, 2018 , of which Cadence expects to recognize approximately 60% of the revenue over the next 12 months and the remainder thereafter. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, Cadence has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing Cadence’s products and services, and not to facilitate financing arrangements. During the three and nine months ended September 29, 2018 , Cadence recognized revenue of $10.8 million and $25.3 million , respectively, from performance obligations satisfied in previous periods. These amounts represent royalties earned during the period and exclude contracts with nonrefundable prepaid royalties. Nonrefundable prepaid royalties are recognized upon delivery of the IP because Cadence’s right to the consideration is not contingent upon customers’ future shipments. Deferred Sales Commissions Cadence records an asset for the incremental costs of obtaining a contract with a customer, including direct sales commissions that are earned upon execution of the contract. Cadence uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and renewals and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two to three years for Cadence’s software arrangements and upon delivery for its hardware and IP arrangements. Incremental costs related to initial contracts and renewals are amortized over the same period because the commissions paid on both the initial contract and renewals are commensurate with one another. Total capitalized costs as of September 29, 2018 were $22.1 million and are included in other assets in Cadence’s condensed consolidated balance sheet. Amortization of these assets during the three and nine months ended September 29, 2018 was $5.8 million and $16.9 million , respectively, and is included in sales and marketing expense in Cadence’s condensed consolidated income statement.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 29, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Cadence’s provision for income taxes of $20.4 million for the nine months ended September 29, 2018 primarily resulted from the federal income tax effects of the U.S. Tax Cuts and Jobs Act (the “Tax Act”) and state and foreign income taxes on anticipated fiscal 2018 income, partially offset by $20.5 million of tax benefit related to stock-based compensation that vested or was exercised during the period. The Tax Act was enacted in December 2017 and included several new tax provisions related to the taxation of foreign earnings and a reduction in the federal corporation income tax rate from 35% to 21% as of January 1, 2018. Cadence reduced its provisional estimate for the fiscal 2017 deemed repatriation transition tax by $2.6 million during the nine months ended September 29, 2018 based on its continuing analysis of the earnings and cash balances of foreign subsidiaries and the additional guidance issued by the applicable tax authorities. Cadence has not yet completed the accounting for the fiscal 2017 effects of the Tax Act because of the complexity and ambiguity of certain of its tax and accounting effects. Cadence expects to complete the accounting for the Tax Act during the fourth quarter of fiscal 2018 as it obtains, prepares and analyzes additional information in accordance with Staff Accounting Bulletin No. 118. For further discussion regarding the income tax effects of the Tax Act, see Note 6 in the notes to consolidated financial statements in Cadence’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 29, 2018
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 29, 2018 and September 30, 2017 as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands) Cost of product and maintenance $ 736 $ 612 $ 1,932 $ 1,632 Cost of services 1,078 895 2,825 2,373 Marketing and sales 9,528 7,422 25,410 19,667 Research and development 28,668 21,792 77,003 55,288 General and administrative 6,254 5,369 17,951 15,048 Total stock-based compensation expense $ 46,264 $ 36,090 $ 125,121 $ 94,008 Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $305.6 million as of September 29, 2018 , which will be recognized over the remaining vesting period. The remaining weighted-average vesting period of unvested awards is 2.1 years .

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	9 Months Ended
	Sep. 29, 2018
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 29, 2018 were as follows: Gross Carrying Amount (In thousands) Balance as of December 30, 2017 $ 666,009 Effect of foreign currency translation (4,668 ) Balance as of September 29, 2018 $ 661,341 Acquired Intangibles, Net Acquired intangibles as of September 29, 2018 were as follows, excluding intangibles that were fully amortized as of December 30, 2017 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 330,667 $ (216,345 ) $ 114,322 Agreements and relationships 146,359 (96,632 ) 49,727 Tradenames, trademarks and patents 10,718 (7,882 ) 2,836 Total acquired intangibles with definite lives 487,744 (320,859 ) 166,885 In-process technology 71,500 — 71,500 Total acquired intangibles $ 559,244 $ (320,859 ) $ 238,385 In-process technology as of September 29, 2018 consisted of acquired projects that, if completed, will contribute to Cadence’s design IP offerings. As of September 29, 2018 , these projects were expected to be completed in approximately three to fifteen months. During the nine months ended September 29, 2018 , there were no transfers from in-process technology to existing technology. Acquired intangibles as of December 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 $ 342,810 $ (199,529 ) $ 143,281 Agreements and relationships 151,063 (90,675 ) 60,388 Tradenames, trademarks and patents 10,918 (7,252 ) 3,666 Total acquired intangibles with definite lives 504,791 (297,456 ) 207,335 In-process technology 71,500 — 71,500 Total acquired intangibles $ 576,291 $ (297,456 ) $ 278,835 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 29, 2018 and September 30, 2017 was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands) Cost of product and maintenance $ 9,505 $ 10,165 $ 29,773 $ 31,611 Amortization of acquired intangibles 3,470 3,453 10,618 11,145 Total amortization of acquired intangibles $ 12,975 $ 13,618 $ 40,391 $ 42,756 Estimated amortization expense for acquired intangible assets with definite lives for the following five fiscal years and thereafter is as follows: (In thousands) 2018 – remaining period $ 12,941 2019 46,208 2020 40,608 2021 36,115 2022 17,810 Thereafter 13,203 Total estimated amortization expense $ 166,885

Restructuring and Other Charges

Restructuring and Other Charges	9 Months Ended
	Sep. 29, 2018
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND OTHER CHARGES	RESTRUCTURING AND OTHER CHARGES Cadence has initiated restructuring plans in an effort to better align its resources with its business strategy. These restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions, estimated lease losses related to facilities vacated under the restructuring plans and charges related to assets abandoned as part of the restructuring plans. During the nine months ended September 29, 2018 , Cadence revised certain estimates made in connection with its prior restructuring plans and recorded credits of approximately $2.6 million . As of September 29, 2018 , total liabilities related to prior restructuring plans were $0.9 million . Cadence expects to make cash payments for severance and related benefits for the prior 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 29, 2018 : Severance and Benefits Excess Facilities Total (In thousands) Balance, December 30, 2017 $ 13,535 $ 249 $ 13,784 Restructuring and other charges (credits) (3,029 ) 419 (2,610 ) Cash payments (9,963 ) (257 ) (10,220 ) Effect of foreign currency translation (36 ) (11 ) (47 ) Balance, September 29, 2018 $ 507 $ 400 $ 907 The remaining liability for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of September 29, 2018 (In thousands) Accounts payable and accrued liabilities $ 695 Other long-term liabilities 212 Total liabilities $ 907

Net Income per Share

Net Income per Share	9 Months Ended
	Sep. 29, 2018
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 29, 2018 and September 30, 2017 are as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands, except per share amounts) Net income $ 99,318 $ 81,157 $ 247,352 $ 218,543 Weighted average common shares used to calculate basic net income per share 273,716 273,156 273,718 271,739 Stock-based awards 7,930 8,244 7,673 7,815 Weighted average common shares used to calculate diluted net income per share 281,646 281,400 281,391 279,554 Net income per share - basic $ 0.36 $ 0.30 $ 0.90 $ 0.80 Net income per share - diluted $ 0.35 $ 0.29 $ 0.88 $ 0.78 The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 29, 2018 and September 30, 2017 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 29, September 30, September 29, September 30, (In thousands) Long-term performance-based stock awards — 100 50 186 Options to purchase shares of common stock 701 — 606 404 Non-vested shares of restricted stock 3 12 367 62 Total potential common shares excluded 704 112 1,023 652

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Sep. 29, 2018
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 29, 2018 , $275.0 million remained available to repurchase shares of Cadence 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 29, 2018 and September 30, 2017 were as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands) Shares repurchased 1,098 1,331 3,611 1,331 Total cost of repurchased shares $ 50,011 $ 50,013 $ 150,036 $ 50,013

Fair Value

Fair Value	9 Months Ended
	Sep. 29, 2018
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 29, 2018 . 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 29, 2018 and December 30, 2017 : Fair Value Measurements as of September 29, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 342,519 $ 342,519 $ — $ — Short-term investments: Marketable equity securities 5,446 5,446 — — Trading securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 30,386 30,386 — — Foreign currency exchange contracts 2,394 — 2,394 — Total Assets $ 380,745 $ 378,351 $ 2,394 $ — As of September 29, 2018, Cadence did not have any financial liabilities requiring a recurring fair value measurement. Fair Value Measurements as of December 30, 2017 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 503,934 $ 503,934 $ — $ — Short-term investments: Marketable equity securities 4,455 4,455 — — Trading securities held in NQDC trust 31,473 31,473 — — Foreign currency exchange contracts 2,937 — 2,937 — Total Assets $ 542,799 $ 539,862 $ 2,937 $ — As of December 30, 2017, Cadence did not have any financial liabilities requiring a recurring fair value measurement.

Contingencies

Contingencies	9 Months Ended
	Sep. 29, 2018
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 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 certain of its 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 29, 2018 and September 30, 2017 . 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 29, 2018 and September 30, 2017 .

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 29, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS Cadence’s accumulated other comprehensive loss is comprised of the aggregate impact of foreign currency translation gains and losses and changes in defined benefit plan liabilities and is presented in Cadence’s condensed consolidated statements of comprehensive income. Aggregate changes in unrealized holding gains on available-for-sale securities net of reclassifications for realized gains and losses were also included through December 30, 2017. Accumulated other comprehensive loss was comprised of the following as of September 29, 2018 and December 30, 2017 : As of September 29, December 30, (In thousands) Foreign currency translation loss $ (19,213 ) $ (2,976 ) Changes in defined benefit plan liabilities (3,138 ) (3,292 ) Unrealized holding gains on available-for-sale securities — 2,638 Total accumulated other comprehensive loss $ (22,351 ) $ (3,630 ) For the three and nine months ended September 29, 2018 and September 30, 2017 there were no significant amounts reclassified from accumulated other comprehensive loss to net income.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 29, 2018
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 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 29, 2018 and September 30, 2017 : Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands) Americas: United States $ 224,458 $ 208,348 $ 679,934 $ 620,525 Other Americas 9,003 7,938 24,351 25,749 Total Americas 233,461 216,286 704,285 646,274 Asia 156,887 131,890 431,233 385,708 Europe, Middle East and Africa 101,452 94,681 311,833 284,415 Japan 40,668 42,541 120,821 124,913 Total $ 532,468 $ 485,398 $ 1,568,172 $ 1,441,310 The following table presents a summary of long-lived assets by geography as of September 29, 2018 and December 30, 2017 : As of September 29, December 30, (In thousands) Americas: United States $ 197,760 $ 198,744 Other Americas 499 611 Total Americas 198,259 199,355 Asia 36,408 37,678 Europe, Middle East and Africa 12,724 13,615 Japan 774 694 Total $ 248,165 $ 251,342

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 29, 2018
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 29, 2018 .
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 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.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies New Accounting Standards (Tables)	9 Months Ended
	Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of the effects of the adoption of Topic 606	The following table summarizes the effects of adopting Topic 606 on Cadence’s condensed consolidated balance sheet as of September 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Receivables, net $ 240,836 $ (21,647 ) $ 219,189 Prepaid expenses and other 66,979 (11,789 ) 55,190 Long-term receivables 4,395 1,453 5,848 Other assets 232,540 (12,663 ) 219,877 Accounts payable and accrued liabilities* 212,153 (22,623 ) 189,530 Current portion of deferred revenue 329,168 51,315 380,483 Long-term portion of deferred revenue 49,343 13,639 62,982 Retained earnings 674,284 (87,726 ) 586,558 Accumulated other comprehensive loss (22,351 ) 749 (21,602 ) _____________ * Cadence has certain arrangements under which consideration is received from customers prior to identifying the specific goods or services to be delivered under the contract. Cadence records an accrued liability on a contract-by-contract basis at the end of each reporting period for cash consideration received. The following table summarizes the effects of adopting Topic 606 on Cadence’s condensed consolidated income statement for the three months ended September 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands, except per share amounts) Product and maintenance revenue $ 494,990 $ (5,505 ) $ 489,485 Services revenue 37,478 (1,004 ) 36,474 Cost of product and maintenance 36,406 (2,654 ) 33,752 Marketing and sales expense 108,608 (1,150 ) 107,458 Provision for income taxes 241 1,953 2,194 Net income 99,318 (4,658 ) 94,660 Net income per share - basic 0.36 (0.01 ) 0.35 Net income per share - diluted 0.35 (0.01 ) 0.34 The following table summarizes the effects of adopting Topic 606 on Cadence’s condensed consolidated income statement for the nine months ended September 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands, except per share amounts) Product and maintenance revenue $ 1,463,469 $ (3,941 ) $ 1,459,528 Services revenue 104,703 2,296 106,999 Cost of product and maintenance 118,263 (2,791 ) 115,472 Marketing and sales expense 327,056 (5,126 ) 321,930 Provision for income taxes 20,401 2,359 22,760 Net income 247,352 3,913 251,265 Net income per share - basic 0.90 0.02 0.92 Net income per share - diluted 0.88 0.01 0.89 Cadence’s net cash provided by operating activities for the nine months ended September 29, 2018 did not change due to the adoption of Topic 606. The following table summarizes the effects of adopting Topic 606 on the financial statement line items of Cadence’s condensed consolidated statement of cash flows for the nine months ended September 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Net income $ 247,352 $ 3,913 $ 251,265 Changes in operating assets and liabilities: Receivables (28,471 ) (22,568 ) (51,039 ) Prepaid expenses and other 2,018 7,883 9,901 Other assets 3,571 (2,010 ) 1,561 Accounts payable and accrued liabilities (41,718 ) 5,194 (36,524 ) Deferred revenue 77,370 7,588 84,958
Schedule of the cumulative effect of the change on retained earnings	The following table presents the cumulative effect adjustments, net of income tax effects, to beginning retained earnings for new accounting standards adopted by Cadence on the first day of fiscal 2018: Retained Earnings (In thousands) Balance, December 30, 2017, as previously reported $ 341,003 Cumulative effect adjustment from the adoption of new accounting standards: Revenue from Contracts with Customers (Topic 606) 91,640 Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities 2,638 Income taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory (8,349 ) Balance, December 30, 2017, as adjusted 426,932 Net Income 247,352 Balance, September 29, 2018 $ 674,284

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 29, 2018
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of September 29, 2018 and December 30, 2017 was as follows: September 29, 2018 December 30, 2017 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ 85,000 $ — $ 85,000 2019 Term Loan — — — 300,000 (226 ) 299,774 2024 Notes 350,000 (4,887 ) 345,113 350,000 (5,405 ) 344,595 Total outstanding debt $ 350,000 $ (4,887 ) $ 345,113 $ 735,000 $ (5,631 ) $ 729,369

Cash, Cash Equivalents and In_2

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Sep. 29, 2018
Cash, Cash Equivalents, and Short-term 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 29, 2018 and December 30, 2017 were as follows: As of September 29, December 30, (In thousands) Cash and cash equivalents $ 544,585 $ 688,087 Short-term investments 5,446 4,455 Cash, cash equivalents and short-term investments $ 550,031 $ 692,542
Summary of cash and cash equivalents	The following table summarizes Cadence’s cash and cash equivalents at fair value as of September 29, 2018 and December 30, 2017 : As of September 29, December 30, (In thousands) Cash and interest bearing deposits $ 202,066 $ 184,153 Money market funds 342,519 503,934 Total cash and cash equivalents $ 544,585 $ 688,087

Receivables, net (Tables)

Receivables, net (Tables)	9 Months Ended
	Sep. 29, 2018
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of September 29, 2018 and December 30, 2017 were as follows: As of September 29, December 30, (In thousands) Accounts receivable $ 117,387 $ 119,325 Unbilled accounts receivable 127,699 71,101 Long-term receivables 4,395 12,239 Total receivables 249,481 202,665 Less allowance for doubtful accounts (4,250 ) — Total receivables, net $ 245,231 $ 202,665

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 29, 2018
Revenue from Contract with Customer [Abstract]
Revenue from external customers by product group	The following table shows the percentage of product and related maintenance revenue contributed by each of Cadence’s five product groups and services for the three and nine months ended September 29, 2018 and September 30, 2017 : Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Functional Verification, including Emulation and Prototyping Hardware 22 % 21 % 24 % 22 % Digital IC Design and Signoff 30 % 30 % 29 % 29 % Custom IC Design 26 % 28 % 26 % 27 % System Interconnect and Analysis 9 % 10 % 9 % 10 % IP 13 % 11 % 12 % 12 % Total 100 % 100 % 100 % 100 %
Contract Balances	Cadence’s contract balances as of September 29, 2018 were as follows: As of September 29, December 30, As Adjusted (In thousands) Contract assets $ 15,151 $ 3,964 Deferred revenue 378,511 336,060

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Sep. 29, 2018
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 29, 2018 and September 30, 2017 as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands) Cost of product and maintenance $ 736 $ 612 $ 1,932 $ 1,632 Cost of services 1,078 895 2,825 2,373 Marketing and sales 9,528 7,422 25,410 19,667 Research and development 28,668 21,792 77,003 55,288 General and administrative 6,254 5,369 17,951 15,048 Total stock-based compensation expense $ 46,264 $ 36,090 $ 125,121 $ 94,008

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangibles (Tables)	9 Months Ended
	Sep. 29, 2018
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 29, 2018 were as follows: Gross Carrying Amount (In thousands) Balance as of December 30, 2017 $ 666,009 Effect of foreign currency translation (4,668 ) Balance as of September 29, 2018 $ 661,341
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of December 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 $ 342,810 $ (199,529 ) $ 143,281 Agreements and relationships 151,063 (90,675 ) 60,388 Tradenames, trademarks and patents 10,918 (7,252 ) 3,666 Total acquired intangibles with definite lives 504,791 (297,456 ) 207,335 In-process technology 71,500 — 71,500 Total acquired intangibles $ 576,291 $ (297,456 ) $ 278,835 Acquired intangibles as of September 29, 2018 were as follows, excluding intangibles that were fully amortized as of December 30, 2017 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 330,667 $ (216,345 ) $ 114,322 Agreements and relationships 146,359 (96,632 ) 49,727 Tradenames, trademarks and patents 10,718 (7,882 ) 2,836 Total acquired intangibles with definite lives 487,744 (320,859 ) 166,885 In-process technology 71,500 — 71,500 Total acquired intangibles $ 559,244 $ (320,859 ) $ 238,385
Amortization of acquired intangibles	Amortization of acquired intangibles for the three and nine months ended September 29, 2018 and September 30, 2017 was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands) Cost of product and maintenance $ 9,505 $ 10,165 $ 29,773 $ 31,611 Amortization of acquired intangibles 3,470 3,453 10,618 11,145 Total amortization of acquired intangibles $ 12,975 $ 13,618 $ 40,391 $ 42,756
Estimated amortization expense	Estimated amortization expense for acquired intangible assets with definite lives for the following five fiscal years and thereafter is as follows: (In thousands) 2018 – remaining period $ 12,941 2019 46,208 2020 40,608 2021 36,115 2022 17,810 Thereafter 13,203 Total estimated amortization expense $ 166,885

Restructuring and Other Charg_2

Restructuring and Other Charges (Tables)	9 Months Ended
	Sep. 29, 2018
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 29, 2018 : Severance and Benefits Excess Facilities Total (In thousands) Balance, December 30, 2017 $ 13,535 $ 249 $ 13,784 Restructuring and other charges (credits) (3,029 ) 419 (2,610 ) Cash payments (9,963 ) (257 ) (10,220 ) Effect of foreign currency translation (36 ) (11 ) (47 ) Balance, September 29, 2018 $ 507 $ 400 $ 907
Schedule of Restructuring Reserve by Balance Sheet Classification [Table Text Block]	The remaining liability for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of September 29, 2018 (In thousands) Accounts payable and accrued liabilities $ 695 Other long-term liabilities 212 Total liabilities $ 907

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 29, 2018
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 29, 2018 and September 30, 2017 are as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands, except per share amounts) Net income $ 99,318 $ 81,157 $ 247,352 $ 218,543 Weighted average common shares used to calculate basic net income per share 273,716 273,156 273,718 271,739 Stock-based awards 7,930 8,244 7,673 7,815 Weighted average common shares used to calculate diluted net income per share 281,646 281,400 281,391 279,554 Net income per share - basic $ 0.36 $ 0.30 $ 0.90 $ 0.80 Net income per share - diluted $ 0.35 $ 0.29 $ 0.88 $ 0.78
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 29, 2018 and September 30, 2017 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 29, September 30, September 29, September 30, (In thousands) Long-term performance-based stock awards — 100 50 186 Options to purchase shares of common stock 701 — 606 404 Non-vested shares of restricted stock 3 12 367 62 Total potential common shares excluded 704 112 1,023 652

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	9 Months Ended
	Sep. 29, 2018
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 29, 2018 and September 30, 2017 were as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands) Shares repurchased 1,098 1,331 3,611 1,331 Total cost of repurchased shares $ 50,011 $ 50,013 $ 150,036 $ 50,013

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 29, 2018
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 29, 2018 and December 30, 2017 : Fair Value Measurements as of September 29, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 342,519 $ 342,519 $ — $ — Short-term investments: Marketable equity securities 5,446 5,446 — — Trading securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 30,386 30,386 — — Foreign currency exchange contracts 2,394 — 2,394 — Total Assets $ 380,745 $ 378,351 $ 2,394 $ — As of September 29, 2018, Cadence did not have any financial liabilities requiring a recurring fair value measurement. Fair Value Measurements as of December 30, 2017 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 503,934 $ 503,934 $ — $ — Short-term investments: Marketable equity securities 4,455 4,455 — — Trading securities held in NQDC trust 31,473 31,473 — — Foreign currency exchange contracts 2,937 — 2,937 — Total Assets $ 542,799 $ 539,862 $ 2,937 $ — As of December 30, 2017, Cadence did not have any financial liabilities requiring a recurring fair value measurement.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 29, 2018
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 29, 2018 and December 30, 2017 : As of September 29, December 30, (In thousands) Foreign currency translation loss $ (19,213 ) $ (2,976 ) Changes in defined benefit plan liabilities (3,138 ) (3,292 ) Unrealized holding gains on available-for-sale securities — 2,638 Total accumulated other comprehensive loss $ (22,351 ) $ (3,630 )

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 29, 2018
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 29, 2018 and September 30, 2017 : Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (In thousands) Americas: United States $ 224,458 $ 208,348 $ 679,934 $ 620,525 Other Americas 9,003 7,938 24,351 25,749 Total Americas 233,461 216,286 704,285 646,274 Asia 156,887 131,890 431,233 385,708 Europe, Middle East and Africa 101,452 94,681 311,833 284,415 Japan 40,668 42,541 120,821 124,913 Total $ 532,468 $ 485,398 $ 1,568,172 $ 1,441,310
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of September 29, 2018 and December 30, 2017 : As of September 29, December 30, (In thousands) Americas: United States $ 197,760 $ 198,744 Other Americas 499 611 Total Americas 198,259 199,355 Asia 36,408 37,678 Europe, Middle East and Africa 12,724 13,615 Japan 774 694 Total $ 248,165 $ 251,342

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies New Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 532,468	$ 485,398	$ 1,568,172	$ 1,441,310
Statement of Financial Position [Abstract]
Receivables, net	240,836		240,836			$ 190,426
Prepaid expenses and other	66,979		66,979			63,811
Long-term receivables	4,395		4,395			12,239
Other assets	232,540		232,540			230,301
Accounts payable and accrued liabilities	212,153		212,153			221,101
Current portion of deferred revenue	329,168		329,168			336,297
Long-term portion of deferred revenue	49,343		49,343			61,513
Retained earnings	674,284		674,284		$ 426,932	341,003
Accumulated other comprehensive income	(22,351)		(22,351)			$ (3,630)
Income Statement [Abstract]
Marketing and sales expense	108,608	104,263	327,056	311,507
Provision for income taxes	241	5,390	20,401	19,552
Net income	$ 99,318	$ 81,157	$ 247,352	$ 218,543
Net income per share - basic	$ 0.36	$ 0.30	$ 0.90	$ 0.80
Net income per share - diluted	$ 0.35	$ 0.29	$ 0.88	$ 0.78
Net Cash Provided by (Used in) Operating Activities [Abstract]
Receivables			$ (28,471)	$ (9,539)
Prepaid expenses and other			2,018	(4,627)
Other assets			3,571	(14,469)
Accounts payable and accrued liabilities			(41,718)	(41,127)
Deferred revenue			77,370	14,245
Balances under Prior GAAP
Statement of Financial Position [Abstract]
Receivables, net	$ 219,189		219,189
Prepaid expenses and other	55,190		55,190
Long-term receivables	5,848		5,848
Other assets	219,877		219,877
Accounts payable and accrued liabilities	189,530		189,530
Current portion of deferred revenue	380,483		380,483
Long-term portion of deferred revenue	62,982		62,982
Retained earnings	586,558		586,558
Accumulated other comprehensive income	(21,602)		(21,602)
Income Statement [Abstract]
Marketing and sales expense	107,458		321,930
Provision for income taxes	2,194		22,760
Net income	$ 94,660		$ 251,265
Net income per share - basic	$ 0.35		$ 0.92
Net income per share - diluted	$ 0.34		$ 0.89
Net Cash Provided by (Used in) Operating Activities [Abstract]
Receivables			$ (51,039)
Prepaid expenses and other			9,901
Other assets			1,561
Accounts payable and accrued liabilities			(36,524)
Deferred revenue			84,958
Accounting Standards Update 2014-09
Statement of Financial Position [Abstract]
Retained earnings					91,640
Accounting Standards Update 2014-09 | Adjustments
Statement of Financial Position [Abstract]
Receivables, net	$ (21,647)		(21,647)		47,300
Prepaid expenses and other	(11,789)		(11,789)
Long-term receivables	1,453		1,453
Other assets	(12,663)		(12,663)
Accounts payable and accrued liabilities	(22,623)		(22,623)		23,300
Current portion of deferred revenue	51,315		51,315		57,400
Long-term portion of deferred revenue	13,639		13,639
Retained earnings	(87,726)		(87,726)		$ 85,400
Accumulated other comprehensive income	749		749
Income Statement [Abstract]
Marketing and sales expense	(1,150)		(5,126)
Provision for income taxes	1,953		2,359
Net income	$ (4,658)		$ 3,913
Net income per share - basic	$ (0.01)		$ 0.02
Net income per share - diluted	$ (0.01)		$ 0.01
Net Cash Provided by (Used in) Operating Activities [Abstract]
Receivables			$ (22,568)
Prepaid expenses and other			7,883
Other assets			(2,010)
Accounts payable and accrued liabilities			5,194
Deferred revenue			7,588
Product and maintenance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 494,990	$ 451,229	1,463,469	1,346,483
Income Statement [Abstract]
Cost of sales	36,406	34,825	118,263	117,371
Product and maintenance | Balances under Prior GAAP
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	489,485		1,459,528
Income Statement [Abstract]
Cost of sales	33,752		115,472
Product and maintenance | Accounting Standards Update 2014-09 | Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	(5,505)		(3,941)
Income Statement [Abstract]
Cost of sales	(2,654)		(2,791)
Services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	37,478	34,169	104,703	94,827
Income Statement [Abstract]
Cost of sales	24,048	$ 19,657	64,360	$ 59,735
Services | Balances under Prior GAAP
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	36,474		106,999
Services | Accounting Standards Update 2014-09 | Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ (1,004)		$ 2,296

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies New Accounting Standards (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 29, 2018	Sep. 29, 2018	Dec. 31, 2017	Dec. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings	$ 674,284	$ 674,284	$ 426,932	$ 341,003
Receivables, net	240,836	240,836		190,426
Contract assets	15,151	15,151		3,964
Current portion of deferred revenue	(329,168)	(329,168)		(336,297)
Accounts payable and accrued liabilities	$ 212,153	$ 212,153		$ 221,101
Percentage of revenue mix recognizable over time	90.00%	90.00%
Accounting Standards Update 2016-16
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings			(8,349)
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings			91,640
Accounting Standards Update 2014-09 | Initial application period cumulative effect adjustments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings	$ (87,726)	$ (87,726)	85,400
Receivables, net	(21,647)	(21,647)	47,300
Contract assets			4,000
Current portion of deferred revenue	(51,315)	(51,315)	(57,400)
Accounts payable and accrued liabilities	$ (22,623)	$ (22,623)	23,300
Deferred sales commission			$ 27,300

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ 674,284		$ 674,284		$ 426,932	$ 341,003
Gain on investments, net			2,617	$ 12,502
Non-marketable investments	2,900		2,900			$ 3,000
Net income	99,318	$ 81,157	247,352	$ 218,543
Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings					2,638
Accounting Standards Update 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings					(8,349)
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings					$ 91,640
Marketable Equity Securities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Gain on investments, net	$ (400)		$ 1,000

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017	Jan. 28, 2016	Oct. 09, 2014
Debt Instrument [Line Items]
Principal	$ 350,000	$ 735,000
Unamortized Discount	(4,887)	(5,631)
Carrying Value	0	85,000
Carrying Value	345,113	644,369
Carrying Value	345,113	729,369
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Principal	0	85,000
Carrying Value	0	85,000
Long-term Debt [Member] | Term Loan Due 2019 [Member]
Debt Instrument [Line Items]
Principal	0	300,000	$ 300,000
Unamortized Discount	0	(226)
Carrying Value	0	299,774
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Principal	350,000	350,000		$ 350,000
Unamortized Discount	(4,887)	(5,405)		$ (1,400)
Carrying Value	$ 345,113	$ 344,595

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual) $ in Millions	9 Months Ended
	Sep. 29, 2018USD ($)
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
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
Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage	0.15%
Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage	0.30%
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%
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%
Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	0.25%
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	0.875%
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] | Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, pro forma leverage ratio	2.75
Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, pro forma leverage ratio	3.25

Debt (Details Textual)

Debt (Details Textual) - USD ($) $ in Thousands	Jan. 28, 2016	Oct. 09, 2014	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Debt Instrument [Line Items]
Repayments of Term Loan				$ 300,000	$ 0
Unamortized discount				4,887		$ 5,631
Long-term Debt [Member] | Term Loan Due 2019 [Member]
Debt Instrument [Line Items]
Aggregate principal amount, issued	$ 300,000			$ 0		300,000
Debt instrument, term	3 years
Debt instrument, maturity date				Jan. 28, 2019
Repayments of Term Loan			$ 300,000
Unamortized discount				$ 0		226
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		$ 4,887		$ 5,405
Debt issuance costs		$ 6,200

Cash, Cash Equivalents and In_3

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Cash and cash equivalents	$ 544,585	$ 688,087	$ 678,284	$ 465,232
Short-term investments	5,446	4,455
Cash, cash equivalents, and short-term investments	$ 550,031	$ 692,542

Cash, Cash Equivalents and In_4

Cash, Cash Equivalents and Investments (Details 1) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Classified as cash and cash equivalents
Cash	$ 202,066	$ 184,153
Money market funds	342,519	503,934
Total cash and cash equivalents	$ 544,585	$ 688,087	$ 678,284	$ 465,232

Cash, Cash Equivalents and In_5

Cash, Cash Equivalents and Investments (Details 2) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 29, 2018	Sep. 29, 2018	Sep. 30, 2017
Marketable Securities [Line Items]
Gain (Loss) on Investments		$ 2,617	$ 12,502
Marketable Equity Securities
Marketable Securities [Line Items]
Gain (Loss) on Investments	$ (400)	$ 1,000

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Current and long-term receivables balances
Accounts receivable	$ 117,387	$ 119,325
Unbilled accounts receivable	127,699	71,101
Long-term receivables	4,395	12,239
Total receivables	249,481	202,665
Less allowance for doubtful accounts	(4,250)	0
Total receivables, net	$ 245,231	$ 202,665

Receivables, net (Details Textu

Receivables, net (Details Textual) - Customer	Sep. 29, 2018	Dec. 30, 2017
Accounts Receivable and Allowances for Doubtful Accounts (Textual) [Abstract]
Percentage of receivables, net attributable to single customer	10.00%	17.00%
Number of customers with receivables balance greater than ten percent of total balance	0	1

Revenue (Details Textuals)

Revenue (Details Textuals) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 29, 2018USD ($)	Sep. 29, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Percentage of revenue mix recognizable over time	90.00%	90.00%
Revenue recognized from deferred revenue during the period	$ 39.9	$ 250.2
Unsatisfied performance obligations	$ 2,400	$ 2,400
Percent of remaining performance obligations, current	60.00%	60.00%
Revenue recognized from satisfaction of performance obligations	$ 10.8	$ 25.3
Capitalized contract costs, net	22.1	22.1
Amortization of capitalized contract costs	$ 5.8	$ 16.9

Revenue (Details)

Revenue (Details)	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	100.00%	100.00%	100.00%	100.00%
Functional Verification, including Emulation and Prototyping Hardware
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	22.00%	21.00%	24.00%	22.00%
Digital IC Design and Signoff
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	30.00%	30.00%	29.00%	29.00%
Custom IC Design
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	26.00%	28.00%	26.00%	27.00%
System Interconnect and Analysis
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	9.00%	10.00%	9.00%	10.00%
IP
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	13.00%	11.00%	12.00%	12.00%

Revenue (Details 1)

Revenue (Details 1) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Revenue from Contract with Customer [Abstract]
Contract assets	$ 15,151	$ 3,964
Deferred revenue	$ 378,511	$ 336,060

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Income Tax Examination [Line Items]
Provision for income taxes	$ 241	$ 5,390	$ 20,401	$ 19,552
Tax benefit of stock-based compensation			$ 20,500
Federal statutory income tax rate						35.00%
Revision to provisional repatriation transition tax expense for Tax Cuts and Jobs Act	$ 2,600
Scenario, Forecast [Member]
Income Tax Examination [Line Items]
Federal statutory income tax rate					21.00%

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 46,264	$ 36,090	$ 125,121	$ 94,008
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	736	612	1,932	1,632
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	1,078	895	2,825	2,373
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	9,528	7,422	25,410	19,667
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	28,668	21,792	77,003	55,288
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 6,254	$ 5,369	$ 17,951	$ 15,048

Stock Based Compensation (Det_2

Stock Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	9 Months Ended
	Sep. 29, 2018USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 305.6
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years 1 month 6 days

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangibles (Details) $ in Thousands	9 Months Ended
	Sep. 29, 2018USD ($)
Changes in the carrying amount of goodwill
Balance as of December 30, 2017	$ 666,009
Effect of foreign currency translation	(4,668)
Balance as of September 29, 2018	$ 661,341

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 487,744	$ 504,791
Accumulated amortization	(320,859)	(297,456)
Acquired intangibles, net	166,885	207,335
In-process technology	71,500	71,500
Intangible Assets, Gross (Excluding Goodwill)	559,244	576,291
Intangible Assets, Net (Excluding Goodwill)	238,385	278,835
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	330,667	342,810
Accumulated amortization	(216,345)	(199,529)
Acquired intangibles, net	114,322	143,281
Agreements and Relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	146,359	151,063
Accumulated amortization	(96,632)	(90,675)
Acquired intangibles, net	49,727	60,388
Tradenames Trademarks And Patents [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	10,718	10,918
Accumulated amortization	(7,882)	(7,252)
Acquired intangibles, net	$ 2,836	$ 3,666

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Amortization of acquired intangibles
Cost of product and maintenance	$ 9,505	$ 10,165	$ 29,773	$ 31,611
Amortization of acquired intangibles	3,470	3,453	10,618	11,145
Total amortization of acquired intangibles	$ 12,975	$ 13,618	$ 40,391	$ 42,756

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Estimated amortization expense
2018 – remaining period	$ 12,941
2,019	46,208
2,020	40,608
2,021	36,115
2,022	17,810
Thereafter	13,203
Acquired intangibles, net	$ 166,885	$ 207,335

Restructuring and Other Charg_3

Restructuring and Other Charges (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2018	Dec. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring and other charges (credits)	$ (2,610)
Restructuring reserve	$ 907	$ 13,784

Restructuring and Other Charg_4

Restructuring and Other Charges (Details) $ in Thousands	9 Months Ended
	Sep. 29, 2018USD ($)
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 13,784
Restructuring and other charges (credits)	(2,610)
Cash payments	(10,220)
Effect of foreign currency translation	(47)
Ending balance	907
Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	13,535
Restructuring and other charges (credits)	(3,029)
Cash payments	(9,963)
Effect of foreign currency translation	(36)
Ending balance	507
Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	249
Restructuring and other charges (credits)	419
Cash payments	(257)
Effect of foreign currency translation	(11)
Ending balance	$ 400

Restructuring and Other Charg_5

Restructuring and Other Charges (Details 1) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 907	$ 13,784
Accounts Payable and Accrued Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	695
Other Long Term Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 212

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. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 99,318	$ 81,157	$ 247,352	$ 218,543
Weighted-average common shares used to calculate basic net income per share (in shares)	273,716	273,156	273,718	271,739
Stock-based awards	7,930	8,244	7,673	7,815
Weighted average common shares used to calculate diluted net income per share (in shares)	281,646	281,400	281,391	279,554
Net income per share - basic (in usd per share)	$ 0.36	$ 0.30	$ 0.90	$ 0.80
Net income per share - diluted (in usd per share)	$ 0.35	$ 0.29	$ 0.88	$ 0.78

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	704	112	1,023	652
Long-term performance-based stock awards
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	0	100	50	186
Options to purchase shares of common stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	701	0	606	404
Non-vested shares of restricted stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	3	12	367	62

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Jan. 31, 2017
Class of Stock Disclosures [Abstract]
Board authorized amount					$ 525,000
Remaining authorized repurchase amount	$ 275,000		$ 275,000
Shares repurchased	1,098	1,331	3,611	1,331
Total cost of repurchased shares	$ 50,011	$ 50,013	$ 150,036	$ 50,013

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Short-term investments:
Marketable equity securities	$ 5,446	$ 4,455
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	30,386	31,473
Foreign currency exchange contracts	2,394	2,937
Total Assets	380,745	542,799
Money market funds [Member]
Assets
Cash equivalents	342,519	503,934
Fair Value Measurements, Level 1 [Member]
Short-term investments:
Marketable equity securities	5,446	4,455
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	30,386	31,473
Foreign currency exchange contracts	0	0
Total Assets	378,351	539,862
Fair Value Measurements, Level 1 [Member] | Money market funds [Member]
Assets
Cash equivalents	342,519	503,934
Fair Value Measurements, Level 2 [Member]
Short-term investments:
Marketable equity securities	0	0
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	0	0
Foreign currency exchange contracts	2,394	2,937
Total Assets	2,394	2,937
Fair Value Measurements, Level 2 [Member] | Money market funds [Member]
Assets
Cash equivalents	0	0
Fair Value Measurements, Level 3 [Member]
Short-term investments:
Marketable equity securities	0	0
Trading securities held in Non-Qualified Deferred Compensation plan, or NQDC	0	0
Foreign currency exchange contracts	0	0
Total Assets	0	0
Fair Value Measurements, Level 3 [Member] | Money market funds [Member]
Assets
Cash equivalents	$ 0	$ 0

Contingencies (Details Textual)

Contingencies (Details Textual)	9 Months Ended
	Sep. 29, 2018
Contingencies (Textual) [Abstract]
General period of warranty on sales of hardware products	90 days

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation loss	$ (19,213)	$ (2,976)
Changes in defined benefit plan liabilities	(3,138)	(3,292)
Unrealized holding gains on available-for-sale securities	0	2,638
Total accumulated other comprehensive income loss	$ (22,351)	$ (3,630)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Americas:
Total Americas	$ 233,461	$ 216,286	$ 704,285	$ 646,274
Total revenue	532,468	485,398	1,568,172	1,441,310
United States [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	224,458	208,348	679,934	620,525
Other Americas [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	9,003	7,938	24,351	25,749
Asia [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	156,887	131,890	431,233	385,708
EMEA [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	101,452	94,681	311,833	284,415
Japan [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	$ 40,668	$ 42,541	$ 120,821	$ 124,913

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Americas:
Total Americas	$ 198,259	$ 199,355
Total long-lived assets	248,165	251,342
United States [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	197,760	198,744
Other Americas [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	499	611
Asia [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	36,408	37,678
EMEA [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	12,724	13,615
Japan [Member]
Summary of long-lived assets by geography
Long-Lived Assets in Individual Foreign Countries	$ 774	$ 694