Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 02, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CADENCE DESIGN SYSTEMS INC | ||
Entity Central Index Key | 813,672 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12,248,414,480 | ||
Entity Common Stock, Shares Outstanding | 280,385,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 533,298 | $ 688,087 | |
Receivables, net | 297,082 | 190,426 | |
Inventories | 28,162 | 33,209 | |
Prepaid expenses and other | 92,550 | 68,266 | |
Total current assets | 951,092 | 979,988 | |
Property, plant and equipment, net | 252,630 | 251,342 | |
Goodwill | 662,272 | 666,009 | |
Acquired intangibles, net | 225,457 | 278,835 | |
Long-term receivables | 5,972 | 12,239 | |
Other assets | 371,231 | 230,301 | |
Total assets | 2,468,654 | 2,418,714 | |
Current liabilities: | |||
Revolving credit facility | 100,000 | 85,000 | |
Accounts payable and accrued liabilities | 256,526 | [1] | 221,101 |
Current portion of deferred revenue | 352,456 | 336,297 | |
Total current liabilities | 708,982 | 642,398 | |
Long-term liabilities: | |||
Long-term portion of deferred revenue | 48,718 | 61,513 | |
Long-term debt | 345,291 | 644,369 | |
Other long-term liabilities | 77,262 | 81,232 | |
Total long-term liabilities | 471,271 | 787,114 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock - $0.01 par value; authorized 400 shares, none issued or outstanding | 0 | 0 | |
Common stock - $0.01 par value; authorized 600,000 shares; issued and outstanding shares: 280,015 and 282,067, respectively | 1,936,124 | 1,829,950 | |
Treasury stock, at cost; 49,144 shares and 47,092 shares, respectively | (1,395,652) | (1,178,121) | |
Retained earnings | 772,709 | 341,003 | |
Accumulated other comprehensive loss | (24,780) | (3,630) | |
Total stockholders' equity | 1,288,401 | 989,202 | |
Total liabilities and stockholders' equity | $ 2,468,654 | $ 2,418,714 | |
[1] | 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. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 400,000 | 400,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock shares issued (in shares) | 280,015,000 | 282,067,000 |
Common stock shares outstanding (in shares) | 280,015,000 | 282,067,000 |
Treasury stock (in shares) | 49,144,000 | 47,092,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Total revenue | $ 2,138,022 | $ 1,943,032 | $ 1,816,083 |
Costs and expenses: | |||
Marketing and sales | 439,669 | 419,161 | 395,194 |
Research and development | 884,816 | 804,223 | 735,340 |
General and administrative | 133,406 | 134,181 | 125,106 |
Amortization of acquired intangibles | 14,086 | 14,716 | 18,095 |
Restructuring and other charges | 11,089 | 9,406 | 40,955 |
Total costs and expenses | 1,741,813 | 1,619,077 | 1,571,182 |
Income from operations | 396,209 | 323,955 | 244,901 |
Interest expense | (23,139) | (25,664) | (23,670) |
Other income, net | 3,320 | 16,755 | 15,922 |
Income before provision for income taxes | 376,390 | 315,046 | 237,153 |
Provision for income taxes | 30,613 | 110,945 | 34,067 |
Net income | $ 345,777 | $ 204,101 | $ 203,086 |
Net income per share - basic (in usd per share) | $ 1.26 | $ 0.75 | $ 0.71 |
Net income per share - diluted (in usd per share) | $ 1.23 | $ 0.73 | $ 0.70 |
Weighted average common shares outstanding - basic (shares) | 273,729 | 272,097 | 284,502 |
Weighted average common shares outstanding - diluted (shares) | 281,144 | 280,221 | 291,256 |
Product and maintenance | |||
Revenue: | |||
Total revenue | $ 1,997,887 | $ 1,813,987 | $ 1,683,771 |
Costs and expenses: | |||
Cost of sales | 173,011 | 156,676 | 183,291 |
Services | |||
Revenue: | |||
Total revenue | 140,135 | 129,045 | 132,312 |
Costs and expenses: | |||
Cost of sales | $ 85,736 | $ 80,714 | $ 73,201 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 345,777 | $ 204,101 | $ 203,086 |
Other comprehensive income (loss), net of tax effects: | |||
Foreign currency translation adjustments | (17,885) | 19,394 | (12,801) |
Changes in unrealized holding gains or losses on available-for-sale securities, net of reclassification adjustments for realized gains and losses | 0 | 1,712 | 716 |
Changes in defined benefit plan liabilities | (627) | 424 | (650) |
Total other comprehensive income (loss), net of tax effects | (18,512) | 21,530 | (12,735) |
Comprehensive income | $ 327,265 | $ 225,631 | $ 190,351 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock, Shares | Common Stock, Par Value and Capital in Excess of Par | Treasury Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment | $ 8,171 | $ 364 | $ 7,807 | |||
Beginning balance at Jan. 02, 2016 | 1,376,115 | 1,863,086 | $ (400,555) | (73,991) | $ (12,425) | |
Beginning balance, shares at Jan. 02, 2016 | 309,392 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 203,086 | 203,086 | ||||
Other comprehensive loss, net of taxes | $ (12,735) | (12,735) | ||||
Purchase of treasury stock, shares | (40,493) | (40,493) | ||||
Purchase of treasury stock | $ (960,289) | (960,289) | ||||
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares | 10,587 | |||||
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures | 55,432 | (147,074) | 202,506 | |||
Stock received for payment of employee taxes on vesting of restricted stock | (37,227) | (5,512) | (31,715) | |||
Stock received for payment of employee taxes on vesting of restricted stock, shares | (1,387) | |||||
Stock-based compensation expense | 109,217 | 109,217 | ||||
Ending balance at Dec. 31, 2016 | 741,770 | 1,820,081 | (1,190,053) | 136,902 | (25,160) | |
Ending balance, shares at Dec. 31, 2016 | 278,099 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 204,101 | 204,101 | ||||
Other comprehensive loss, net of taxes | $ 21,530 | 21,530 | ||||
Purchase of treasury stock, shares | (2,495) | (2,495) | ||||
Purchase of treasury stock | $ (100,025) | (100,025) | ||||
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares | 7,905 | |||||
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures | 48,964 | (111,982) | 160,946 | |||
Stock received for payment of employee taxes on vesting of restricted stock | (57,161) | (8,172) | (48,989) | |||
Stock received for payment of employee taxes on vesting of restricted stock, shares | (1,442) | |||||
Stock-based compensation expense | 130,023 | 130,023 | ||||
Ending balance at Dec. 30, 2017 | $ 989,202 | 1,829,950 | (1,178,121) | 341,003 | (3,630) | |
Ending balance, shares at Dec. 30, 2017 | 282,067 | 282,067 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment | $ 83,291 | 85,929 | (2,638) | |||
Net income | 345,777 | 345,777 | ||||
Other comprehensive loss, net of taxes | $ (18,512) | (18,512) | ||||
Purchase of treasury stock, shares | (5,934) | (5,934) | ||||
Purchase of treasury stock | $ (250,059) | (250,059) | ||||
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares | 5,274 | |||||
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures | 40,908 | (50,570) | 91,478 | |||
Stock received for payment of employee taxes on vesting of restricted stock | (69,921) | (10,971) | (58,950) | |||
Stock received for payment of employee taxes on vesting of restricted stock, shares | (1,392) | |||||
Stock-based compensation expense | 167,715 | 167,715 | ||||
Ending balance at Dec. 29, 2018 | $ 1,288,401 | $ 1,936,124 | $ (1,395,652) | $ 772,709 | $ (24,780) | |
Ending balance, shares at Dec. 29, 2018 | 280,015 | 280,015 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Cash Flows [Abstract] | |||
Cash and cash equivalents at beginning of year | $ 688,087 | $ 465,232 | $ 616,686 |
Cash flows from operating activities: | |||
Net income | 345,777 | 204,101 | 203,086 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 118,721 | 115,524 | 119,588 |
Amortization of debt discount and fees | 1,196 | 1,211 | 1,069 |
Stock-based compensation | 167,715 | 130,023 | 109,217 |
Gain on investments, net | (1,261) | (13,869) | (4,725) |
Gain on sale of property, plant and equipment | 0 | 0 | (923) |
Deferred income taxes | (11,676) | 79,934 | (4,869) |
Provisions for losses on receivables | 5,102 | 2,623 | 308 |
Other non-cash items | 1,136 | 5,068 | 4,027 |
Changes in operating assets and liabilities, net of effect of acquired businesses: | |||
Receivables | (87,083) | (31,032) | (3,607) |
Inventories | 752 | 5,034 | 4,934 |
Prepaid expenses and other | (19,622) | (25,793) | (6,903) |
Other assets | (16,077) | (22,336) | (6,566) |
Accounts payable and accrued liabilities | 1,553 | (25,987) | 2,655 |
Deferred revenue | 100,696 | 33,614 | 30,742 |
Other long-term liabilities | (2,178) | 12,625 | (3,154) |
Net cash provided by operating activities | 604,751 | 470,740 | 444,879 |
Cash flows from investing activities: | |||
Purchases of available-for-sale securities | 0 | 0 | (20,525) |
Proceeds from the sale of available-for-sale securities | 0 | 833 | 55,619 |
Proceeds from the maturity of available-for-sale securities | 0 | 0 | 57,762 |
Purchases of non-marketable investments | (115,839) | 0 | 0 |
Proceeds from the sale of non-marketable investments | 3,497 | 9,108 | 2,917 |
Proceeds from the sale of property, plant and equipment | 0 | 0 | 923 |
Purchases of property, plant and equipment | (61,503) | (57,901) | (53,712) |
Cash paid in business combinations and asset acquisitions, net of cash acquired | 0 | (143,249) | (41,627) |
Net cash provided by (used for) investing activities | (173,845) | (191,209) | 1,357 |
Cash flows from financing activities: | |||
Proceeds from revolving credit facility | 100,000 | 135,000 | 115,000 |
Payment on revolving credit facility | (85,000) | (100,000) | (65,000) |
Proceeds from term loan | 0 | 0 | 300,000 |
Principal payments on term loan | (300,000) | 0 | 0 |
Payment of debt issuance costs | 0 | (793) | (622) |
Proceeds from issuance of common stock | 40,908 | 48,965 | 55,440 |
Stock received for payment of employee taxes on vesting of restricted stock | (69,921) | (57,161) | (37,226) |
Payments for repurchases of common stock | (250,059) | (100,025) | (960,289) |
Change in book overdraft | (3,867) | 3,867 | 0 |
Net cash used for financing activities | (567,939) | (70,147) | (592,697) |
Effect of exchange rate changes on cash and cash equivalents | (17,756) | 13,471 | (4,993) |
Increase (decrease) in cash and cash equivalents | (154,789) | 222,855 | (151,454) |
Cash and cash equivalents at end of year | 533,298 | 688,087 | 465,232 |
Supplemental cash flow information: | |||
Cash paid for interest | 23,018 | 24,160 | 21,024 |
Cash paid for income taxes, net | $ 68,040 | $ 59,072 | $ 36,823 |
Business Overview
Business Overview | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
BUSINESS OVERVIEW | BUSINESS OVERVIEW Cadence Design Systems, Inc. (“Cadence”) provides solutions that enable its customers to design complex and innovative electronic products. Cadence’s solutions are designed to give its customers a competitive edge in their development of electronic systems, integrated circuits (“ICs”) and electronic devices and increasingly sophisticated manufactured products, by optimizing performance, minimizing power consumption, shortening the time to bring their products to market and reducing their design, development and manufacturing costs. Cadence’s product offerings include software, hardware, services and reusable IC design blocks, which are commonly referred to as intellectual property (“IP”). Cadence also provides maintenance for its software, hardware, and IP product offerings. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. Certain prior period balances have been reclassified to conform to the current period presentation. Cadence’s fiscal years are 52- or 53-week periods ending on the Saturday closest to December 31. Fiscal 2017, 2016 and 2015 were each 52-week fiscal years. Use of Estimates Preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the 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 29, 2018 and the consolidated income statements for fiscal 2018 were prepared using accounting standards that were different than those in effect for fiscal 2017 and fiscal 2016. Therefore, the consolidated balance sheets as of December 29, 2018 are not directly comparable to the consolidated balance sheets as of December 30, 2017 , nor are the results of operations for fiscal 2018 comparable to the results of operations for fiscal 2017 and fiscal 2016. 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 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 were 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 unbilled 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 was 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 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. Notwithstanding the shift from recognizing revenue under Topic 605 to doing so under Topic 606, Cadence continues to recognize revenue over time for its time-based software arrangements, which generate a majority of total revenue. 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 coterminous 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 are now recognized upon delivery under Topic 606, as opposed to over time under Topic 605, because the requirement to have VSOE for undelivered elements under prior GAAP is eliminated under Topic 606. Certain perpetual software licenses are now 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. 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. The timing of revenue recognition for hardware and professional services remained substantially unchanged. Cadence’s overall mix of revenue recognized at a point in time versus over time remained relatively constant, with approximately 90% recognizable over time. The following table summarizes the effects of adopting Topic 606 on Cadence’s consolidated balance sheet as of December 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Receivables, net $ 297,082 $ (12,099 ) $ 284,983 Prepaid expenses and other 92,550 (10,055 ) 82,495 Long-term receivables 5,972 (623 ) 5,349 Other assets 371,231 (17,013 ) 354,218 Accounts payable and accrued liabilities* 256,526 (17,438 ) 239,088 Current portion of deferred revenue 352,456 45,119 397,575 Long-term portion of deferred revenue 48,718 17,637 66,355 Retained earnings 772,709 (86,120 ) 686,589 Accumulated other comprehensive loss (24,780 ) 1,012 (23,768 ) _____________ * 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 consolidated income statement for fiscal 2018: As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands, except per share amounts) Product and maintenance revenue $ 1,997,887 $ 1,031 $ 1,998,918 Services revenue 140,135 6,643 146,778 Cost of product and maintenance 173,011 571 173,582 Marketing and sales expense 439,669 3,947 443,616 Provision for income taxes 30,613 (2,364 ) 28,249 Net income 345,777 5,520 351,297 Net income per share - basic 1.26 0.02 1.28 Net income per share - diluted 1.23 0.02 1.25 Cadence’s net cash provided by operating activities for fiscal 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 consolidated statement of cash flows for fiscal 2018: As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Net income $ 345,777 $ 5,520 $ 351,297 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes (11,676 ) (2,213 ) (13,889 ) Changes in operating assets and liabilities: Receivables (87,083 ) (28,226 ) (115,309 ) Prepaid expenses and other (19,622 ) 5,968 (13,654 ) Other assets (16,077 ) 3,461 (12,616 ) Accounts payable and accrued liabilities 1,553 10,100 11,653 Deferred revenue 100,696 5,390 106,086 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. Prior to the adoption of the updated standard, Cadence’s investment in marketable equity securities was classified as available-for-sale, and changes in the fair value of the underlying securities were reported in accumulated other comprehensive loss in the consolidated balance sheets. The new standard eliminated the available-for-sale classification for equity securities and requires changes in the fair value of Cadence’s investment to be recognized through net income for fiscal 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. Cadence’s non-marketable investments in equity securities consist of investments in privately-held companies and are presented as other assets in the 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. For additional information regarding Cadence’s investments in equity securities, see Note 7 to the consolidated financial statements. 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 consolidated financial statements or the related disclosures. Cumulative Effect Adjustments to 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 345,777 Balance, December 29, 2018 $ 772,709 _____________ * The cumulative effect adjustment from the adoption of Revenue from Contracts with Customers (Topic 606) is presented net of the related income tax effect of $17.5 million . New Accounting Standards Not Yet Adopted Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” requiring, among other things, the recognition of lease liabilities and corresponding right-of-use assets on the balance sheet by lessees for all leases with a term longer than 12 months. The new standard is effective for Cadence in the first quarter of fiscal 2019. A modified retrospective approach is required, applying the new standard to leases existing as of the date of initial application. An entity may choose to apply the standard as of either its effective date or the beginning of the earliest comparative period presented in the financial statements. Cadence adopted the new standard on December 30, 2018, the first day of fiscal 2019, and used the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods prior to the first quarter of fiscal 2019. Cadence elected certain practical expedients permitted under the transition guidance within the new standard, which among other things, allowed Cadence to carry forward its prior conclusions about lease identification and classification. Cadence estimates the key change upon adoption of the standard will result in balance sheet recognition of additional lease assets and lease liabilities ranging from $75 to $85 million as of December 30, 2018, which is based on the present value of committed lease payments. Cadence does not expect the adoption of the new standard to have a material impact on the recognition, measurement or presentation of lease expenses within its consolidated income statements, consolidated statements of comprehensive income or consolidated statements of cash flows. The new standard also provides updated guidance for lessor accounting; however, Cadence does not expect the new standard to have a material effect on its consolidated financial statements for arrangements in which it is the lessor. Foreign Operations Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence’s consolidated entities operating in the United States and certain of its consolidated subsidiaries operating outside the United States. The functional currency for Cadence’s other consolidated entities operating outside of the United States is generally the country’s local currency. Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using an average exchange rate for the period. Cadence includes adjustments from translating assets and liabilities into United States dollars, and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders’ equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in other income, net, in the consolidated income statements. Concentrations of Credit Risk Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, accounts receivable, investments and forward contracts. Credit exposure related to Cadence’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. 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. Book overdraft balances are recorded in accounts payable and accrued liabilities in the consolidated balance sheets and are reported as a component of cash flows from financing activities in the consolidated statement of cash flows. Receivables Cadence’s receivables, net includes invoiced accounts receivable and the current portion of unbilled receivables. Unbilled receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time and Cadence has an unconditional right to the payment. Cadence’s accounts receivable and unbilled receivables were initially recorded at the transaction value. Cadence’s long-term receivables balance includes receivable balances to be invoiced more than one year after each balance sheet date. Allowances for Doubtful Accounts Each fiscal quarter, Cadence assesses its ability to collect outstanding receivables, and provides allowances for a portion of its receivables when collection is not probable. Cadence analyzes the creditworthiness of its customers, historical experience, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions are made based upon a specific review of customer receivables and are recorded in operating expenses. Inventories Inventories are stated at the lower of cost or net realizable value. Cadence’s inventories include high technology parts and components for complex emulation and prototyping hardware systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to minimize the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term. Cadence’s policy is to reserve for inventory in excess of 12-month demand or for other known obsolescence or realization issues. Property, Plant and Equipment Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows: Computer equipment and related software 2-7 years Buildings 25-32 years Leasehold improvements Shorter of the lease term or the estimated useful life Building improvements and land improvements Estimated useful life up to 32 years Furniture and fixtures 3-5 years Equipment 3-5 years Cadence capitalizes certain costs of software developed for internal use. Capitalization of software developed for internal use begins at the application development phase of the project. Amortization begins when the computer software is substantially complete and ready for its intended use. Amortization is recorded on a straight-line basis over the estimated useful life. Cadence capitalized costs of software developed for internal use of $3.6 million , $2.2 million , and $3.5 million during fiscal 2018 , 2017 and 2016 , respectively. Cadence recorded depreciation and amortization expense of $60.4 million , $52.9 million and $52.7 million during fiscal 2018 , 2017 and 2016 , respectively, for property, plant and equipment. Software Development Costs Software development costs are capitalized beginning when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence’s products has typically been of short duration. Costs incurred during fiscal 2018 , 2017 and 2016 were not material. 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 period of the arrangement in each case because Cadence pays the same commission rate for both new contracts and renewals. Deferred sales commissions are tested for impairment on an ongoing basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognized to the extent that the amount of deferred sales commission exceeds the remaining expected gross margin (remaining revenue less remaining direct costs) on the goods and services to which the deferred sales commission relates. Total capitalized costs as of December 29, 2018 were $31.2 million and are included in other assets in Cadence’s consolidated balance sheet. Amortization of these assets during fiscal 2018 was $26.5 million and is included in sales and marketing expense in Cadence’s consolidated income statement. Goodwill Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence’s single reporting unit may be less than its carrying amount. Cadence’s goodwill impairment test consists of two steps. The first step requires that Cadence compare the estimated fair value of its single reporting unit to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to complete the second step of the test by analyzing the fair value of its goodwill. If the carrying value of the goodwill exceeds its fair value, an impairment charge is recorded. Long-Lived Assets, Including Acquired Intangibles Cadence’s long-lived assets consist of property, plant and equipment and acquired intangibles. Acquired intangibles with definite lives are amortized on a straight-line basis over the estimated economic life of the underlying products and technologies, which range from two to fourteen years. Acquired intangibles with indefinite lives, or in-process technology, consists of projects that had not reached technological feasibility by the date of acquisition. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the assets might be impaired. Cadence reviews its long-lived assets, including acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value. Investments in Equity Securities Cadence’s investments in marketable equity securities are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence records realized and unrealized holding gains or losses as part of other income, net in the consolidated income statements. Cadence’s non-marketable investments include its investments in privately-held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using the measurement alternative when the fair value of the investment is not readily determinable and Cadence does not have the ability to exercise significant influence or the equity method of accounting when it is determined that Cadence has the ability to exercise significant influence. For investments accounted for using the equity method of accounting, Cadence records its proportionate share of the investee’s income or loss, net of the effects of any basis differences, to other income, net on a one-quarter lag in Cadence’s consolidated income statements. Cadence reviews its non-marketable investments on a regular basis to determine whether its investments in these companies are other-than-temporarily impaired. Cadence considers investee financial performance and other information received from the investee companies, as well as any other available estimates of the fair value of the investee companies in its review. If Cadence determines the carrying value of an investment exceeds its fair value, and that difference is other than temporary, Cadence writes down the value of the investment to its fair value. Cadence records investment write-downs in other income, net, in the consolidated income statements. Derivative Financial Instruments Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income, net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less. Nonqualified Deferred Compensation Trust Executive officers, senior management and members of Cadence’s Board of Directors may elect to defer compensation payable to them under Cadence’s Nonqualified Deferred Compensation Plan (“NQDC”). Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. The selected investments held in the NQDC accounts are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income, net. These securities are classified in other assets in the consolidated balance sheets because they are not available for Cadence’s use in its operations. Cadence’s obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements. Treasury Stock Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders’ equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of retained earnings in the consolidated statements of stockholders’ equity. There were no losses recorded by Cadence on the reissuance of treasury stock during fiscal 2018 , 2017 or 2016 . Revenue Recognition 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 fiscal year ended December 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 p |
Debt
Debt | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Cadence’s outstanding debt as of December 29, 2018 and December 30, 2017 was as follows: December 29, 2018 December 30, 2017 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ 100,000 $ — $ 100,000 $ 85,000 $ — $ 85,000 2019 Term Loan — — — 300,000 (226 ) 299,774 2024 Notes 350,000 (4,709 ) 345,291 350,000 (5,405 ) 344,595 Total outstanding debt $ 450,000 $ (4,709 ) $ 445,291 $ 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. 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 1.250% and 1.875% per annum or at the base rate plus a margin between 0.25% and 0.875% per annum. As of December 29, 2018 , the interest rate on Cadence’s credit facility was 4.07% . Interest is payable quarterly. A commitment fee ranging from 0.15% to 0.30% is assessed on the daily average undrawn portion of revolving commitments. The credit facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness, grant liens, make certain investments (including acquisitions), dispose of certain assets and make certain payments, including share repurchases and dividends. In addition, the credit facility contains financial covenants that require Cadence to maintain a funded debt to EBITDA ratio not greater than 3.00 to 1, with a step up to 3.50 to 1 for one year following an acquisition by Cadence of at least $250.0 million that results in a pro forma leverage ratio between 2.75 to 1 and 3.25 to 1. As of December 29, 2018 and December 30, 2017 , Cadence was in compliance with all financial covenants associated with the revolving credit facility. 2019 Term Loan In January 2016, Cadence entered into a $300.0 million three -year senior unsecured non-amortizing term loan facility due on January 28, 2019 (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. The carrying value of the 2024 Notes approximates the estimated fair value as of December 29, 2018 . 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. |
Receivables, net
Receivables, net | 12 Months Ended |
Dec. 29, 2018 | |
Receivables [Abstract] | |
RECEIVABLES, NET | RECEIVABLES, NET Cadence’s current and long-term receivables balances as of December 29, 2018 and December 30, 2017 were as follows: As of December 29, December 30, (In thousands) Accounts receivable $ 164,223 $ 119,325 Unbilled accounts receivable 136,795 71,101 Long-term receivables 5,972 12,239 Total receivables 306,990 202,665 Less allowance for doubtful accounts (3,936 ) — Total receivables, net $ 303,054 $ 202,665 Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of December 29, 2018 , one customer accounted for 11% of Cadence’s total receivables. As of December 30, 2017 , one customer accounted for 17% of Cadence’s total receivables. Allowance for doubtful accounts Cadence’s provisions for losses on its accounts receivable during fiscal 2018 , 2017 and 2016 were as follows: Balance at Beginning of Period Charged to Costs and Expenses Uncollectible Accounts Written Off, Net Balance at End of Period Year ended December 29, 2018 $ — $ 5,102 $ (1,166 ) $ 3,936 Year ended December 30, 2017 — 2,623 (2,623 ) — Year ended December 31, 2016 $ — $ 308 $ (308 ) $ — |
Revenue
Revenue | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE 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 fiscal 2018 , 2017 and 2016 : 2018 2017 2016 Functional Verification, including Emulation and Prototyping Hardware 24 % 22 % 25 % Digital IC Design and Signoff 29 % 29 % 29 % Custom IC Design and Simulation 26 % 27 % 25 % System Interconnect and Analysis 9 % 10 % 10 % IP 12 % 12 % 11 % Total 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. Significant Judgments Cadence’s contracts with customers often include promises to transfer to a customer multiple software and/or IP licenses and services, including professional services, technical support services, and rights to unspecified updates. 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. 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 SSP for each performance obligation. In instances where the SSP is not directly observable because Cadence does not sell the license, product or service separately, Cadence determines the SSP using information that maximizes the use of observable inputs and may include market conditions. 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 combined performance obligations that include software licenses, updates, technical support and maintenance that are separate performance obligations. 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 consolidated balance sheets. For certain software, hardware and IP agreements with payment plans, Cadence records an unbilled receivable related to revenue recognized upon transfer of control because it has an unconditional right to invoice and receive payment in the future related to those transferred products or services. Cadence records a contract asset when revenue is recognized prior to invoicing and Cadence does not have the unconditional right to invoice or retains performance risk with respect to that performance obligation. Cadence records 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. The contract assets indicated below are presented as prepaid expenses and other in the consolidated balance sheet and primarily relate to Cadence’s rights to consideration for work completed but not billed as of December 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 December 29, 2018 and December 30, 2017 were as follows: As of December 29, December 30, As Adjusted (In thousands) Contract assets $ 10,055 $ 3,964 Deferred revenue 401,174 336,060 During fiscal 2018, Cadence recognized revenue of $284.3 million 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 $2.9 billion as of December 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 fiscal 2018, Cadence recognized revenue of $34.3 million 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Cadence’s income before provision for income taxes included income from the United States and from foreign subsidiaries for fiscal 2018 , 2017 and 2016 , was as follows: 2018 2017 2016 (In thousands) United States $ 58,963 $ 81,619 $ 84,694 Foreign subsidiaries 317,427 233,427 152,459 Total income before provision for income taxes $ 376,390 $ 315,046 $ 237,153 Cadence’s provision for income taxes was comprised of the following items for fiscal 2018 , 2017 and 2016 : 2018 2017 2016 (In thousands) Current: Federal $ 902 $ (2,193 ) $ 4,839 State and local (1,270 ) (2,097 ) 50 Foreign 42,657 35,301 34,047 Total current 42,289 31,011 38,936 Deferred: Federal (10,324 ) 76,494 (5,291 ) State and local 886 5,571 6,006 Foreign (2,238 ) (2,131 ) (5,584 ) Total deferred (11,676 ) 79,934 (4,869 ) Total provision for income taxes $ 30,613 $ 110,945 $ 34,067 The provision for income taxes differs from the amount estimated by applying the United States statutory federal income tax rates of 21% to income before provision for income taxes for fiscal 2018 and of 35% to income before provision for income taxes for fiscal 2017 and 2016 as follows: 2018 2017 2016 (In thousands) Provision computed at federal statutory income tax rate $ 79,042 $ 110,266 $ 83,003 State and local income tax, net of federal tax effect 15,540 5,867 5,534 Foreign income tax rate differential (37,031 ) (65,296 ) (36,098 ) Deemed repatriation transition tax (1,409 ) 67,188 — Remeasurement of U.S. deferred tax assets and liabilities — 25,200 — U.S. tax on foreign entities 28,846 — — Stock-based compensation (13,539 ) (24,455 ) (13,132 ) Change in deferred tax asset valuation allowance 13,234 4,689 1,243 Tax credits (72,815 ) (26,789 ) (39,765 ) Repatriation of foreign earnings — — 25,145 Non-deductible research and development expense 4,700 — — Tax effects of intra-entity transfer of assets 79 (8,450 ) (7,661 ) Domestic production activity deduction — (2,474 ) (2,826 ) Withholding taxes 11,535 11,225 9,870 Tax settlements, foreign — 3,086 5,620 Increase in unrecognized tax benefits not included in tax settlements (1,545 ) 4,054 614 Other 3,976 6,834 2,520 Provision for income taxes $ 30,613 $ 110,945 $ 34,067 Effective tax rate 8 % 35 % 14 % The Tax Act was enacted in December 2017 and included several provisions that affected Cadence significantly, such as a one-time, mandatory transition tax on its previously untaxed foreign earnings and a reduction in the federal corporation income tax rate from 35% to 21% as of January 1, 2018, among others. Cadence is required to recognize the effect of tax law changes in the period of enactment, which in the case of the Tax Act was December 2017, even though the effective date for most provisions of the Tax Act was January 1, 2018. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which allowed registrants to record reasonable estimates or to apply tax laws in effect prior to the enactment of the Tax Act for a period of up to one year from the date of enactment when it did not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the changes in taxation. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, Cadence recorded a provisional $67.2 million expense related to the one-time transition tax during fiscal 2017. In accordance with SAB 118, this amount was updated to $65.8 million of expense during fiscal 2018. For purposes of SAB 118, the accounting for the tax effects of the Tax Act is complete. Cadence adopted the new accounting standard related to stock-based compensation in fiscal 2016, which required the excess tax benefits or deficiencies to be reflected in the consolidated income statements as a component of the provision for income taxes, whereas these income tax effects were previously recognized in stockholders’ equity in the consolidated balance sheets. Total excess tax benefits recognized in the provision for income taxes in fiscal 2018, fiscal 2017 and fiscal 2016, were $21.3 million , $32.0 million and $17.2 million , respectively. The components of deferred tax assets and liabilities consisted of the following as of December 29, 2018 and December 30, 2017 : As of December 29, December 30, (In thousands) Deferred tax assets: Tax credit carryforwards $ 197,524 $ 164,687 Reserves and accruals 43,522 42,357 Intangible assets 12,096 13,112 Capitalized research and development expense for income tax purposes 6,975 10,621 Operating loss carryforwards 15,347 20,650 Deferred income 6,580 12,178 Capital loss carryforwards 20,342 20,266 Stock-based compensation costs 15,329 15,782 Depreciation and amortization 8,759 7,665 Investments 2,900 3,201 Total deferred tax assets 329,374 310,519 Valuation allowance (108,724 ) (95,491 ) Net deferred tax assets 220,650 215,028 Deferred tax liabilities: Intangible assets (36,194 ) (36,683 ) Undistributed foreign earnings (27,627 ) (23,563 ) Other (2,497 ) (2,730 ) Total deferred tax liabilities (66,318 ) (62,976 ) Total net deferred tax assets $ 154,332 $ 152,052 During fiscal 2018 and 2017 , Cadence maintained valuation allowances of $108.7 million and $95.5 million , respectively, on certain federal, state and foreign deferred tax assets because the realization of these deferred tax assets require future income of a specific character or amount that Cadence considered uncertain. The valuation allowance primarily relates to the following: • Tax credits in certain states that are accumulating at a rate greater than Cadence’s capacity to utilize the credits and tax credits in certain states where it is likely the credits will expire unused; • Federal, state and foreign deferred tax assets related to investments and capital losses that can only be utilized against gains that are capital in nature; and • Foreign tax credits that can only be fully utilized if Cadence has sufficient income of a specific character in the future. As of December 29, 2018 , Cadence’s operating loss carryforwards were as follows: Amount Expiration Periods (In thousands) Federal $ 1,374 from 2021 through 2029 California 175,541 from 2019 through 2037 Other states (tax effected, net of federal benefit) 2,333 from 2019 through 2037 Foreign (tax effected) 293 from 2025 through indefinite As of December 29, 2018 , Cadence had tax credit carryforwards of: Amount Expiration Periods (In thousands) Federal* $ 108,934 from 2023 through 2038 California 61,473 indefinite Other states 10,445 from 2019 through 2038 Foreign 16,672 from 2019 through 2038 _____________ *Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period. Examinations by Tax Authorities Taxing authorities regularly examine Cadence’s income tax returns. As of December 29, 2018 Cadence’s earliest tax years that remain open to examination and the assessment of additional tax include: Jurisdiction Earliest Tax Year Open to Examination United States - Federal 2015 United States - California 2014 Unrecognized Tax Benefits The changes in Cadence’s gross amount of unrecognized tax benefits during fiscal 2018 , 2017 and 2016 are as follows: 2018 2017 2016 (In thousands) Unrecognized tax benefits at the beginning of the fiscal year $ 110,179 $ 98,540 $ 87,820 Gross amount of the increases (decreases) in unrecognized tax benefits of tax positions taken during a prior year* (4,183 ) 688 (155 ) Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year 2,370 13,141 11,342 Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations (5,179 ) (3,028 ) (149 ) Effect of foreign currency translation (1,330 ) 838 (318 ) Unrecognized tax benefits at the end of the fiscal year $ 101,857 $ 110,179 $ 98,540 Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence’s effective tax rate $ 58,022 $ 63,108 $ 56,248 _____________ * Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions The total amounts of interest, net of tax, and penalties recognized in the consolidated income statements as provision for income taxes for fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Interest $ 585 $ 1,865 $ 1,166 Penalties 342 218 3 The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of December 29, 2018 and December 30, 2017 were as follows: As of December 29, December 30, (In thousands) Interest $ 2,699 $ 2,511 Penalties 10 151 |
Investments
Investments | 12 Months Ended |
Dec. 29, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS Cadence has a portfolio of equity investments that includes investments in both marketable and non-marketable securities. These investments primarily consist of cash investments in companies with technologies or services that are potentially strategically important to Cadence. Marketable Investments Cadence’s investment in marketable equity securities consists of purchased shares of a publicly-held company and is included in prepaid expense and other in Cadence’s consolidated balance sheets. During fiscal 2018, with the adoption of ASU 2016-01, changes in the fair value of these investments were recorded to other income, net in Cadence’s consolidated income statements. During fiscal 2017 and fiscal 2016, changes in fair value of these investments were recorded to accumulated other comprehensive loss in Cadence’s consolidated balance sheets. For additional information regarding the adoption of ASU 2016-01, see Note 2 to the consolidated financial statements under the heading “Recently Adopted Accounting Standards.” Non-Marketable investments Cadence’s investments in non-marketable equity securities generally consist of stock, convertible debt or other instruments of privately-held entities and are included in other assets on Cadence’s consolidated balance sheets. For investments accounted for using the equity method of accounting, Cadence records its proportionate share of income or loss, net of the effects of any basis differences, to other income, net on a one-quarter lag in Cadence's consolidated income statements. In December 2018, Cadence made a minority investment in a privately held company for approximately $116 million . The investment is being accounted for using the equity method of accounting. Cadence’s investments in non-marketable equity securities that are accounted for using the equity method of accounting ranged from approximately 12% to 35% equity ownership and had an aggregate carrying value of $118.2 million and $2.5 million as of December 29, 2018 and December 30, 2017 , respectively. Cadence also holds other non-marketable investments in privately held companies where Cadence does not have the ability to exercise significant influence and the fair value of the investments is not readily determinable. These investments are recorded at cost, less impairment, if any, plus or minus changes resulting from observable price changes in market-based transactions for identical or similar investments of the same issuer. During the fiscal year ended December 29, 2018 , there were no observable price changes or impairments related to Cadence’s non-marketable investments in equity securities without a readily determinable fair value. The carrying value of these investments was $0.5 million as of December 29, 2018 and December 30, 2017 . |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS During fiscal 2017, Cadence completed two business combinations for total cash consideration of $142.8 million , after taking into account cash acquired of $4.2 million . The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates. Cadence recorded a total of $76.4 million of acquired intangible assets (of which $71.5 million represents in-process technology), $90.2 million of goodwill and $19.6 million of net liabilities consisting primarily of deferred tax liabilities. Cadence will also make payments to certain employees, subject to continued employment and other performance-based conditions, through the fourth quarter of fiscal 2020. During fiscal 2016, Cadence completed two business combinations for total cash consideration of $42.4 million , after taking into account cash acquired of $1.8 million . The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates. Cadence recorded a total of $23.6 million of goodwill, $23.2 million of acquired intangible assets and $2.6 million of net liabilities consisting primarily of deferred revenue. Cadence will also make payments to certain employees, subject to continued employment and other conditions, through the second quarter of fiscal 2019. A trust for the benefit of the children of Lip-Bu Tan, Cadence’s Chief Executive Officer (“CEO”) and director, owned less than 3% of nusemi inc, one of the companies acquired in 2017, and less than 2% of Rocketick Technologies Ltd., one of the companies acquired in 2016. Mr. Tan and his wife serve as co-trustees of the trust and disclaim pecuniary and economic interest in the trust. The Board of Directors of Cadence reviewed the transactions and concluded that it was in the best interests of Cadence to proceed with the transactions. Mr. Tan recused himself from the Board of Directors’ discussion of the valuation of nusemi inc and Rocketick Technologies Ltd. and on whether to proceed with the transactions. Acquisition-related Transaction Costs There were no direct transaction costs associated with acquisitions during fiscal 2018. Transaction costs associated with acquisitions were $0.6 million and $1.1 million during fiscal 2017 and 2016 , respectively. These costs consist of professional fees and administrative costs and were expensed as incurred in Cadence’s consolidated income statements. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangibles | 12 Months Ended |
Dec. 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 fiscal 2018 and 2017 were as follows: Gross Carrying Amount (In thousands) Balance as of December 31, 2016 $ 572,764 Goodwill resulting from acquisitions 90,218 Effect of foreign currency translation 3,027 Balance as of December 30, 2017 666,009 Effect of foreign currency translation (3,737 ) Balance as of December 29, 2018 $ 662,272 Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2018 and determined that the fair value of Cadence’s single reporting unit substantially exceeded the carrying amount of its net assets and that no impairment existed. Acquired Intangibles, Net Acquired intangibles as of December 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 $ 330,500 $ (225,383 ) $ 105,117 Agreements and relationships 146,426 (100,211 ) 46,215 Tradenames, trademarks and patents 10,718 (8,093 ) 2,625 Total acquired intangibles with definite lives 487,644 (333,687 ) 153,957 In-process technology 71,500 — 71,500 Total acquired intangibles $ 559,144 $ (333,687 ) $ 225,457 In-process technology as of December 29, 2018 consisted of acquired projects that, if completed, will contribute to Cadence’s design IP offerings. As of December 29, 2018, these projects were expected to be completed in approximately three to twelve months. During fiscal 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 expense for fiscal 2018 , 2017 and 2016 , by consolidated income statement caption, was as follows: 2018 2017 2016 (In thousands) Cost of product and maintenance $ 39,247 $ 41,781 $ 42,387 Amortization of acquired intangibles 14,086 14,716 18,095 Total amortization of acquired intangibles $ 53,333 $ 56,497 $ 60,482 Estimated amortization expense for intangible assets with definite lives for the following five fiscal years and thereafter was as follows: (In thousands) 2019 $ 46,217 2020 40,612 2021 36,115 2022 17,810 2023 5,325 Thereafter 7,878 Total estimated amortization expense $ 153,957 |
Stock Compensation Plans and St
Stock Compensation Plans and Stock Based Compensation | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION | STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION Equity Incentive Plans Cadence’s Omnibus Plan provides for the issuance of both incentive and non-qualified options, restricted stock awards, restricted stock units, stock bonuses and the rights to acquire restricted stock to both executive and non-executive employees. During fiscal 2018, Cadence’s stockholders approved an amendment to the Omnibus Plan to increase the number of shares of common stock authorized for issuance by 2.0 million . As of December 29, 2018 , the total number of shares available for future issuance under the Omnibus Plan was 9.4 million . Options granted under the Omnibus Plan have an exercise price not less than the fair market value of the stock on the date of grant. Options and restricted stock generally vest over a three - to four -year period. Options granted under the Omnibus Plan expire seven years from the date of grant. Vesting of restricted stock awards granted under the Omnibus Plan may require the attainment of specified performance criteria. Cadence’s 1995 Directors Stock Incentive Plan (the “Directors Plan”) provides for the issuance of non-qualified options, restricted stock awards and restricted stock units to its non-employee directors. Options granted under the Directors Plan have an exercise price not less than the fair market value of the stock on the date of grant. As of December 29, 2018 , the total number of shares available for future issuance under the Directors Plan was 0.5 million . Options granted under the Directors Plan expire after ten years, and options, restricted stock awards and restricted stock units vest one year from the date of grant. Cadence has assumed certain options granted to employees of acquired companies (“Acquired Options”). The Acquired Options were assumed by Cadence outside of its stock option plans, and each option is administered under the terms of the respective original plans of the acquired companies. All of the Acquired Options have been adjusted for the price conversion under the terms of the acquisition agreement between Cadence and the relevant acquired company. If the Acquired Options are canceled, forfeited or expire, they do not become available for future grant. Stock-based Compensation Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the ESPP during fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Stock options $ 5,581 $ 5,417 $ 5,649 Restricted stock 153,348 117,797 96,989 ESPP 8,786 6,809 6,579 Total stock-based compensation expense $ 167,715 $ 130,023 $ 109,217 Income tax benefit $ 32,830 $ 36,664 $ 30,980 Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2018 , 2017 and 2016 as follows: 2018 2017 2016 (In thousands) Cost of product and maintenance $ 2,631 $ 2,218 $ 1,995 Cost of services 3,714 3,232 2,911 Marketing and sales 34,665 26,838 22,700 Research and development 104,353 77,222 64,061 General and administrative 22,352 20,513 17,550 Total stock-based compensation expense $ 167,715 $ 130,023 $ 109,217 Stock Options The exercise price of each stock option granted under Cadence’s employee equity incentive plans is equal to or greater than the closing price of Cadence’s common stock on the date of grant. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average grant date fair value of options granted and the weighted-average assumptions used in the model for fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Dividend yield None None None Expected volatility 24.3 % 21.2 % 31.5 % Risk-free interest rate 2.54 % 2.01 % 1.21 % Expected term (in years) 4.8 4.8 4.8 Weighted-average fair value of options granted $ 10.24 $ 6.86 $ 5.84 A summary of the changes in stock options outstanding under Cadence’s equity incentive plans during fiscal 2018 is presented below: Weighted- Average Weighted- Average Remaining Contractual Terms Aggregate Intrinsic Shares Exercise Price (Years) Value (In thousands) (In thousands) Options outstanding as of December 30, 2017 5,783 $ 16.56 Granted 736 39.57 Exercised (993 ) 11.84 Canceled and forfeited (112 ) 18.83 Options outstanding as of December 29, 2018 5,414 $ 20.51 3.6 $ 120,215 Options vested as of December 29, 2018 4,029 $ 16.68 3.0 $ 104,852 Cadence had total unrecognized compensation expense related to stock option grants of $ 10.8 million as of December 29, 2018 , which will be recognized over the remaining vesting period. The remaining weighted-average vesting period of unvested awards is 2.3 years . The total intrinsic value of and cash received from options exercised during fiscal 2018 , 2017 and 2016 was: 2018 2017 2016 (In thousands) Intrinsic value of options exercised $ 31,109 $ 45,643 $ 44,835 Cash received from options exercised 11,748 22,255 30,984 Restricted Stock Generally, restricted stock, which includes restricted stock awards and restricted stock units, vests over three to four years and is subject to the employee’s continuing service to Cadence. Stock-based compensation expense is recognized ratably over the vesting term. The vesting of certain restricted stock grants is subject to attainment of specified performance criteria. Each fiscal quarter, Cadence estimates the probability of the achievement of these performance goals and recognizes any related stock-based compensation expense using the graded-vesting method. The amount of stock-based compensation expense recognized in any one period can vary based on the attainment or expected attainment of the various performance goals. If such performance goals are not ultimately met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Certain long-term, performance-based stock awards granted to executives vest over three to five years and are subject to certain market conditions and the executive’s continuing service to Cadence. Stock-based compensation expense is recognized straight-line over the vesting term. If the market conditions are not ultimately met, compensation expense previously recognized is not reversed. As of December 29, 2018 , Cadence had granted a total of 1.53 million shares of long-term, performance-based stock awards to executives. Stock-based compensation expense related to performance-based restricted stock grants for fiscal 2018 , 2017 and 2016 was as follows: 2018 2017 2016 (In thousands) Stock-based compensation expense related to performance-based grants $ 12,868 $ 8,224 $ 9,195 A summary of the changes in restricted stock outstanding under Cadence’s equity incentive plans during fiscal 2018 is presented below: Weighted- Average Grant Date Weighted- Average Remaining Vesting Terms Aggregate Intrinsic Shares Fair Value (Years) Value (In thousands) (In thousands) Unvested shares as of December 30, 2017 11,968 $ 27.11 Granted 3,940 42.88 Vested (5,457 ) 28.49 Forfeited (749 ) 28.15 Unvested shares as of December 29, 2018 9,702 $ 32.67 1.1 $ 420,464 Cadence had total unrecognized compensation expense related to restricted stock grants of $261.6 million as of December 29, 2018 , which will be recognized over the remaining vesting period. The remaining weighted-average vesting period of unvested awards is 1.9 years. The total fair value realized by employees upon vesting of restricted stock during fiscal 2018 , 2017 and 2016 was: 2018 2017 2016 (In thousands) Fair value of restricted stock realized upon vesting $ 232,099 $ 174,548 $ 113,114 Employee Stock Purchase Plan Cadence provides an ESPP, as amended from time to time. A majority of Cadence employees are eligible to participate in the ESPP. Under the terms of the ESPP, for the offering period that commenced August 1, 2018, eligible employees may purchase Cadence’s common stock at a price equal to 85% of the lower of the fair market value at the beginning or the end of the applicable offering period, in an amount not to exceed 10% of their annual base earnings plus bonuses and commissions, and subject to a limit in any calendar year of $10,000 . Each offering period has a six -month duration beginning on either February 1 or August 1. The purchase dates fall on the last days of the six-month offering periods. Under the ESPP and through the July 31, 2018 purchase date, participating employees could contribute up to 7% of their annual base earnings plus bonuses and commissions, subject to a limit in any calendar year of $8,000 . During fiscal 2018, Cadence’s stockholders approved an amendment to Cadence’s Employee Stock Purchase Plan to increase the number of shares of common stock authorized for issuance by 4.0 million . As of December 29, 2018 , the total number of shares available for future issuance under the ESPP was 7.0 million . Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes option pricing model. The weighted-average grant date fair value of purchase rights granted under the ESPP and the weighted-average assumptions used in the model for fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Dividend yield None None None Expected volatility 21.1 % 20.4 % 24.4 % Risk-free interest rate 2.05 % 0.92 % 0.43 % Expected term (in years) 0.5 0.5 0.5 Weighted-average fair value of options granted $ 9.24 $ 6.64 $ 4.85 Shares of common stock issued under the ESPP for fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands, except per share amounts) Cadence shares purchased under the ESPP 892 1,270 1,471 Cash received for the purchase of shares under the ESPP $ 29,160 $ 26,709 $ 24,450 Weighted-average purchase price per share $ 32.69 $ 21.04 $ 16.62 Reserved for Future Issuance As of December 29, 2018 , Cadence had reserved the following shares of authorized but unissued common stock for future issuance: Shares (In thousands) Employee equity incentive plans* 16,819 Employee stock purchase plans 7,027 Directors stock plans* 1,138 Total 24,984 _____________ *Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units. |
Stock Repurchase Programs
Stock Repurchase Programs | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAMS | STOCK REPURCHASE PROGRAMS In January 2017, Cadence’s Board of Directors authorized the repurchase of shares of Cadence 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, stock price, acquisition opportunities and other factors. As of December 29, 2018 , $175.0 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 fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Shares repurchased 5,934 2,495 40,493 Total cost of repurchased shares $ 250,059 $ 100,025 $ 960,289 |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 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 and charges related to abandoned assets. During the fourth quarter of fiscal 2018, Cadence initiated a restructuring plan (the “2018 Restructuring Plan”) and recorded restructuring and other charges of $13.8 million related to severance payments, termination benefits and estimated lease losses related to vacated facilities. As of December 29, 2018 , total liabilities related to the 2018 Restructuring Plan were $11.5 million . Cadence also initiated restructuring plans during both fiscal 2017 and fiscal 2016 (the “prior restructuring plans”). During fiscal 2018 , Cadence revised certain estimates made in connection with the prior restructuring plans and recorded credits of $2.7 million . As of December 29, 2018 , total liabilities related to the prior restructuring plans were $0.5 million . The following table presents activity for Cadence’s restructuring plans during fiscal 2018 , 2017 and 2016 : Severance and Benefits Excess Facilities Total (In thousands) Balance, January 2, 2016 $ 751 $ 386 $ 1,137 Restructuring and other charges, net 40,411 544 40,955 Non-cash charges — (159 ) (159 ) Cash payments (16,890 ) (679 ) (17,569 ) Effect of foreign currency translation 130 (34 ) 96 Balance, December 31, 2016 $ 24,402 $ 58 $ 24,460 Restructuring and other charges, net 9,027 379 9,406 Cash payments (20,170 ) (186 ) (20,356 ) Effect of foreign currency translation 276 (2 ) 274 Balance, December 30, 2017 $ 13,535 $ 249 $ 13,784 Restructuring and other charges, net 10,268 821 11,089 Cash payments (12,688 ) (192 ) (12,880 ) Effect of foreign currency translation 61 (30 ) 31 Balance, December 29, 2018 $ 11,176 $ 848 $ 12,024 The remaining liability for Cadence’s restructuring plans is recorded in the consolidated balance sheet as follows: As of December 29, 2018 (In thousands) Accounts payable and accrued liabilities $ 11,597 Other long-term liabilities 427 Total liabilities $ 12,024 All liabilities for severance and related benefits under Cadence’s restructuring plans are included in accounts payable and accrued liabilities on Cadence’s consolidated balance sheet as of December 29, 2018 . Restructuring liabilities included in other long-term liabilities represent liabilities from vacated facilities, and Cadence expects to make cash payments to settle these liabilities through fiscal 2022. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 29, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME, NET Cadence’s other income, net, for fiscal 2018 , 2017 and 2016 was as follows: 2018 2017 2016 (In thousands) Interest income $ 8,070 $ 3,879 $ 2,917 Gains (losses) on marketable equity investments (551 ) 520 263 Gains on non-marketable equity investments 3,300 8,934 2,668 Gains (losses) on securities in NQDC trust (1,471 ) 6,145 1,741 Gains (losses) on foreign exchange (5,557 ) (2,920 ) 6,879 Gain on sale of property, plant and equipment — — 923 Other income (loss), net (471 ) 197 531 Total other income, net $ 3,320 $ 16,755 $ 15,922 |
Net Income per Share
Net Income per Share | 12 Months Ended |
Dec. 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 fiscal 2018 , 2017 and 2016 are as follows: 2018 2017 2016 (In thousands, except per share amounts) Net income $ 345,777 $ 204,101 $ 203,086 Weighted-average common shares used to calculate basic net income per share 273,729 272,097 284,502 Stock-based awards 7,415 8,124 6,754 Weighted-average common shares used to calculate diluted net income per share 281,144 280,221 291,256 Net income per share - basic $ 1.26 $ 0.75 $ 0.71 Net income per share - diluted $ 1.23 $ 0.73 $ 0.70 The following table presents shares of Cadence’s common stock outstanding for fiscal 2018 , 2017 and 2016 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: 2018 2017 2016 (In thousands) Long-term performance-based awards 50 152 1,069 Options to purchase shares of common stock 637 303 581 Non-vested shares of restricted stock 290 77 27 Total potential common shares excluded 977 532 1,677 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 29, 2018 | |
Balance Sheet Components [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS A summary of certain balance sheet components as of December 29, 2018 and December 30, 2017 is as follows: As of December 29, December 30, (In thousands) Inventories: Raw materials $ 16,392 $ 17,491 Finished goods 11,770 15,718 Inventories $ 28,162 $ 33,209 Property, plant and equipment: Computer equipment and related software $ 574,333 $ 537,144 Buildings 126,927 127,478 Land 55,802 55,840 Leasehold, building and land improvements 108,529 106,173 Furniture and fixtures 27,087 27,590 Equipment 52,088 50,340 In-process capital assets 6,357 5,154 Total cost 951,123 909,719 Less: Accumulated depreciation and amortization (698,493 ) (658,377 ) Property, plant and equipment, net $ 252,630 $ 251,342 Other assets: Deferred income taxes $ 154,894 $ 152,501 Non-marketable investments 118,734 2,992 Other long-term assets 97,603 74,808 Other assets $ 371,231 $ 230,301 Accounts payable and accrued liabilities: Payroll and payroll-related accruals $ 192,466 $ 164,310 Accounts payable 5,484 4,825 Accrued operating liabilities 58,576 51,966 Accounts payable and accrued liabilities $ 256,526 $ 221,101 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 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 fiscal 2018. The valuation techniques used to determine the fair value of Cadence’s 2024 Notes are classified within Level 2 of the fair value hierarchy. For additional information relating to our debt arrangements, see Note 3 in the notes to consolidated financial statements. 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 December 29, 2018 and December 30, 2017 : Fair Value Measurements as of December 29, 2018: Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 327,841 $ 327,841 $ — $ — Marketable equity securities 3,887 3,887 — — Securities held in NQDC trust 27,767 27,767 — — Foreign currency exchange contracts 101 — 101 — Total Assets $ 359,596 $ 359,495 $ 101 $ — As of December 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 $ — $ — Marketable equity securities 4,455 4,455 — — 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments Facilities, equipment and vehicles are leased under various operating leases expiring at various dates through 2030. Certain of these leases contain renewal options and escalating rent payments. Rental expense is recognized on a straight-line basis and was as follows during fiscal 2018 , 2017 and 2016 : 2018 2017 2016 (In thousands) Rent expense $ 33,717 $ 32,089 $ 28,216 As of December 29, 2018 , future minimum lease payments under non-cancelable operating leases for the following five fiscal years and thereafter were as follows: Operating Leases (In thousands) 2019 $ 26,252 2020 23,130 2021 19,778 2022 14,243 2023 11,510 Thereafter 17,100 Total lease payments $ 112,013 Purchase Obligations Cadence had purchase obligations of $24.7 million as of December 29, 2018 that were associated with agreements or commitments for purchases of goods or services. Legal Proceedings From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and lawsuits related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, distribution arrangements and employee relations matters. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates. Other Contingencies Cadence provides its customers with a warranty on sales of hardware products, generally for a 90 -day period. Cadence did not incur any significant costs related to warranty obligations during fiscal 2018 , 2017 or 2016 . Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s intellectual property. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. The indemnification is generally limited to the amount paid by the customer. Cadence did not incur any significant losses from indemnification claims during fiscal 2018 , 2017 or 2016 . |
Employee and Director Benefit P
Employee and Director Benefit Plans | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE AND DIRECTOR BENEFIT PLANS | EMPLOYEE AND DIRECTOR BENEFIT PLANS Cadence maintains various defined contribution plans for its eligible U.S. and non-U.S. employees. For employees in the United States, Cadence maintains a 401(k) savings plan to provide retirement benefits through tax-deferred salary deductions and may make discretionary contributions, as determined by the Board of Directors, which cannot exceed a specified percentage of the annual aggregate salaries of those employees eligible to participate. Cadence’s total contributions made to these plans during fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Contributions to defined contribution plans $ 25,731 $ 26,010 $ 24,185 Executive Officers and Directors may also elect to defer compensation payable to them under Cadence’s NQDC. Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. These investments are classified in other assets in the consolidated balance sheets and gains and losses are recognized as other income, net in the consolidated income statements. Net recognized gains (losses) of these securities during fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Gains (losses) on securities held in NQDC trust $ (1,471 ) $ 6,145 $ 1,741 Certain of Cadence’s international subsidiaries sponsor defined benefit retirement plans. The unfunded projected benefit obligation for Cadence’s defined benefit retirement plans is recorded in other long-term liabilities in the consolidated balance sheets. The unfunded projected benefit obligation for these retirement plans as of December 29, 2018 , December 30, 2017 and December 31, 2016 was as follows: December 29, December 30, December 31, (In thousands) Unfunded projected benefit obligation - defined benefit retirement plans $ 7,990 $ 6,976 $ 6,164 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 29, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED 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 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. On the first day of fiscal 2018, Cadence reclassified unrealized holding gains on available-for-sale securities to retained earnings in connection with the adoption of ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” For additional information regarding the adoption of this accounting standard, refer to Note 2 under the heading “Recently Adopted Accounting Standards.” Accumulated other comprehensive loss was comprised of the following as of December 29, 2018 , and December 30, 2017 : As of December 29, December 30, (In thousands) Foreign currency translation loss $ (20,861 ) $ (2,976 ) Changes in defined benefit plan liabilities (3,919 ) (3,292 ) Unrealized holding gains on available-for-sale securities — 2,638 Total accumulated other comprehensive loss $ (24,780 ) $ (3,630 ) For fiscal 2018 , 2017 and 2016 , there were no significant amounts related to foreign currency translation loss or changes in defined benefit plan liabilities reclassified to net income from accumulated other comprehensive loss. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 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 operating 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 fiscal 2018 , 2017 and 2016 : 2018 2017 2016 (In thousands) Americas: United States $ 924,644 $ 829,436 $ 832,583 Other Americas 32,531 35,067 31,296 Total Americas 957,175 864,503 863,879 Asia 605,415 526,201 445,500 Europe, Middle East and Africa 406,877 385,705 346,701 Japan 168,555 166,623 160,003 Total $ 2,138,022 $ 1,943,032 $ 1,816,083 The following table presents a summary of long-lived assets by geography as of December 29, 2018 , December 30, 2017 and December 31, 2016 : As of December 29, December 30, December 31, (In thousands) Americas: United States $ 200,025 $ 198,744 $ 193,750 Other Americas 475 611 757 Total Americas 200,500 199,355 194,507 Asia 39,629 37,678 30,564 Europe, Middle East and Africa 11,784 13,615 12,692 Japan 717 694 844 Total $ 252,630 $ 251,342 $ 238,607 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 29, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Non-Marketable investments In January 2019, Cadence made an additional minority equity investment in a private company for approximately $34 million , bringing Cadence’s total investment to approximately $149 million . For additional information regarding Cadence’s investments, see Note 7 to the consolidated financial statements. Stock Repurchase Authorization In February 2019, Cadence’s Board of Directors authorized the additional repurchase of shares of Cadence’s common stock with a value of up to $500 million in the aggregate. The actual timing and amount of future repurchases are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. Certain prior period balances have been reclassified to conform to the current period presentation. Cadence’s fiscal years are 52- or 53-week periods ending on the Saturday closest to December 31. Fiscal 2017, 2016 and 2015 were each 52-week fiscal years. |
Use of Estimates | Use of Estimates Preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Comparability | 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 29, 2018 and the consolidated income statements for fiscal 2018 were prepared using accounting standards that were different than those in effect for fiscal 2017 and fiscal 2016. Therefore, the consolidated balance sheets as of December 29, 2018 are not directly comparable to the consolidated balance sheets as of December 30, 2017 , nor are the results of operations for fiscal 2018 comparable to the results of operations for fiscal 2017 and fiscal 2016. |
Recently Adopted Accounting Standards | 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 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 were 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 unbilled 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 was 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 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. Notwithstanding the shift from recognizing revenue under Topic 605 to doing so under Topic 606, Cadence continues to recognize revenue over time for its time-based software arrangements, which generate a majority of total revenue. 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 coterminous 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 are now recognized upon delivery under Topic 606, as opposed to over time under Topic 605, because the requirement to have VSOE for undelivered elements under prior GAAP is eliminated under Topic 606. Certain perpetual software licenses are now 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. 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. The timing of revenue recognition for hardware and professional services remained substantially unchanged. Cadence’s overall mix of revenue recognized at a point in time versus over time remained relatively constant, with approximately 90% recognizable over time. The following table summarizes the effects of adopting Topic 606 on Cadence’s consolidated balance sheet as of December 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Receivables, net $ 297,082 $ (12,099 ) $ 284,983 Prepaid expenses and other 92,550 (10,055 ) 82,495 Long-term receivables 5,972 (623 ) 5,349 Other assets 371,231 (17,013 ) 354,218 Accounts payable and accrued liabilities* 256,526 (17,438 ) 239,088 Current portion of deferred revenue 352,456 45,119 397,575 Long-term portion of deferred revenue 48,718 17,637 66,355 Retained earnings 772,709 (86,120 ) 686,589 Accumulated other comprehensive loss (24,780 ) 1,012 (23,768 ) _____________ * 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 consolidated income statement for fiscal 2018: As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands, except per share amounts) Product and maintenance revenue $ 1,997,887 $ 1,031 $ 1,998,918 Services revenue 140,135 6,643 146,778 Cost of product and maintenance 173,011 571 173,582 Marketing and sales expense 439,669 3,947 443,616 Provision for income taxes 30,613 (2,364 ) 28,249 Net income 345,777 5,520 351,297 Net income per share - basic 1.26 0.02 1.28 Net income per share - diluted 1.23 0.02 1.25 Cadence’s net cash provided by operating activities for fiscal 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 consolidated statement of cash flows for fiscal 2018: As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Net income $ 345,777 $ 5,520 $ 351,297 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes (11,676 ) (2,213 ) (13,889 ) Changes in operating assets and liabilities: Receivables (87,083 ) (28,226 ) (115,309 ) Prepaid expenses and other (19,622 ) 5,968 (13,654 ) Other assets (16,077 ) 3,461 (12,616 ) Accounts payable and accrued liabilities 1,553 10,100 11,653 Deferred revenue 100,696 5,390 106,086 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. Prior to the adoption of the updated standard, Cadence’s investment in marketable equity securities was classified as available-for-sale, and changes in the fair value of the underlying securities were reported in accumulated other comprehensive loss in the consolidated balance sheets. The new standard eliminated the available-for-sale classification for equity securities and requires changes in the fair value of Cadence’s investment to be recognized through net income for fiscal 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. Cadence’s non-marketable investments in equity securities consist of investments in privately-held companies and are presented as other assets in the 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. For additional information regarding Cadence’s investments in equity securities, see Note 7 to the consolidated financial statements. 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 consolidated financial statements or the related disclosures. Cumulative Effect Adjustments to 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 345,777 Balance, December 29, 2018 $ 772,709 |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” requiring, among other things, the recognition of lease liabilities and corresponding right-of-use assets on the balance sheet by lessees for all leases with a term longer than 12 months. The new standard is effective for Cadence in the first quarter of fiscal 2019. A modified retrospective approach is required, applying the new standard to leases existing as of the date of initial application. An entity may choose to apply the standard as of either its effective date or the beginning of the earliest comparative period presented in the financial statements. Cadence adopted the new standard on December 30, 2018, the first day of fiscal 2019, and used the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods prior to the first quarter of fiscal 2019. Cadence elected certain practical expedients permitted under the transition guidance within the new standard, which among other things, allowed Cadence to carry forward its prior conclusions about lease identification and classification. Cadence estimates the key change upon adoption of the standard will result in balance sheet recognition of additional lease assets and lease liabilities ranging from $75 to $85 million as of December 30, 2018, which is based on the present value of committed lease payments. Cadence does not expect the adoption of the new standard to have a material impact on the recognition, measurement or presentation of lease expenses within its consolidated income statements, consolidated statements of comprehensive income or consolidated statements of cash flows. The new standard also provides updated guidance for lessor accounting; however, Cadence does not expect the new standard to have a material effect on its consolidated financial statements for arrangements in which it is the lessor. |
Foreign Operations | Foreign Operations Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence’s consolidated entities operating in the United States and certain of its consolidated subsidiaries operating outside the United States. The functional currency for Cadence’s other consolidated entities operating outside of the United States is generally the country’s local currency. Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using an average exchange rate for the period. Cadence includes adjustments from translating assets and liabilities into United States dollars, and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders’ equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in other income, net, in the consolidated income statements. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, accounts receivable, investments and forward contracts. Credit exposure related to Cadence’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. |
Cash and Cash Equivalents | 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. Book overdraft balances are recorded in accounts payable and accrued liabilities in the consolidated balance sheets and are reported as a component of cash flows from financing activities in the consolidated statement of cash flows. |
Receivables | Receivables Cadence’s receivables, net includes invoiced accounts receivable and the current portion of unbilled receivables. Unbilled receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time and Cadence has an unconditional right to the payment. Cadence’s accounts receivable and unbilled receivables were initially recorded at the transaction value. Cadence’s long-term receivables balance includes receivable balances to be invoiced more than one year after each balance sheet date. |
Allowance for Doubtful Accounts | Allowances for Doubtful Accounts Each fiscal quarter, Cadence assesses its ability to collect outstanding receivables, and provides allowances for a portion of its receivables when collection is not probable. Cadence analyzes the creditworthiness of its customers, historical experience, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions are made based upon a specific review of customer receivables and are recorded in operating expenses. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cadence’s inventories include high technology parts and components for complex emulation and prototyping hardware systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to minimize the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term. Cadence’s policy is to reserve for inventory in excess of 12-month demand or for other known obsolescence or realization issues. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows: Computer equipment and related software 2-7 years Buildings 25-32 years Leasehold improvements Shorter of the lease term or the estimated useful life Building improvements and land improvements Estimated useful life up to 32 years Furniture and fixtures 3-5 years Equipment 3-5 years Cadence capitalizes certain costs of software developed for internal use. Capitalization of software developed for internal use begins at the application development phase of the project. Amortization begins when the computer software is substantially complete and ready for its intended use. Amortization is recorded on a straight-line basis over the estimated useful life. Cadence capitalized costs of software developed for internal use of $3.6 million , $2.2 million , and $3.5 million during fiscal 2018 , 2017 and 2016 , respectively. Cadence recorded depreciation and amortization expense of $60.4 million , $52.9 million and $52.7 million during fiscal 2018 , 2017 and 2016 , respectively, for property, plant and equipment. |
Software Development Costs | Software Development Costs Software development costs are capitalized beginning when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence’s products has typically been of short duration. Costs incurred during fiscal 2018 , 2017 and 2016 were not material. |
Commissions Expense, Policy [Policy Text Block] | 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 period of the arrangement in each case because Cadence pays the same commission rate for both new contracts and renewals. Deferred sales commissions are tested for impairment on an ongoing basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognized to the extent that the amount of deferred sales commission exceeds the remaining expected gross margin (remaining revenue less remaining direct costs) on the goods and services to which the deferred sales commission relates. Total capitalized costs as of December 29, 2018 were $31.2 million and are included in other assets in Cadence’s consolidated balance sheet. Amortization of these assets during fiscal 2018 was $26.5 million and is included in sales and marketing expense in Cadence’s consolidated income statement. |
Goodwill | Goodwill Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence’s single reporting unit may be less than its carrying amount. Cadence’s goodwill impairment test consists of two steps. The first step requires that Cadence compare the estimated fair value of its single reporting unit to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to complete the second step of the test by analyzing the fair value of its goodwill. If the carrying value of the goodwill exceeds its fair value, an impairment charge is recorded. |
Long-lived Assets, Including Acquired Intangibles | Long-Lived Assets, Including Acquired Intangibles Cadence’s long-lived assets consist of property, plant and equipment and acquired intangibles. Acquired intangibles with definite lives are amortized on a straight-line basis over the estimated economic life of the underlying products and technologies, which range from two to fourteen years. Acquired intangibles with indefinite lives, or in-process technology, consists of projects that had not reached technological feasibility by the date of acquisition. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the assets might be impaired. Cadence reviews its long-lived assets, including acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value. |
Investments in Equity Securities | Investments in Equity Securities Cadence’s investments in marketable equity securities are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence records realized and unrealized holding gains or losses as part of other income, net in the consolidated income statements. Cadence’s non-marketable investments include its investments in privately-held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using the measurement alternative when the fair value of the investment is not readily determinable and Cadence does not have the ability to exercise significant influence or the equity method of accounting when it is determined that Cadence has the ability to exercise significant influence. For investments accounted for using the equity method of accounting, Cadence records its proportionate share of the investee’s income or loss, net of the effects of any basis differences, to other income, net on a one-quarter lag in Cadence’s consolidated income statements. Cadence reviews its non-marketable investments on a regular basis to determine whether its investments in these companies are other-than-temporarily impaired. Cadence considers investee financial performance and other information received from the investee companies, as well as any other available estimates of the fair value of the investee companies in its review. If Cadence determines the carrying value of an investment exceeds its fair value, and that difference is other than temporary, Cadence writes down the value of the investment to its fair value. Cadence records investment write-downs in other income, net, in the consolidated income statements. |
Derivative Financial Instruments | Derivative Financial Instruments Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income, net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less. |
Nonqualified Deferred Compensation Trust | Nonqualified Deferred Compensation Trust Executive officers, senior management and members of Cadence’s Board of Directors may elect to defer compensation payable to them under Cadence’s Nonqualified Deferred Compensation Plan (“NQDC”). Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. The selected investments held in the NQDC accounts are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income, net. These securities are classified in other assets in the consolidated balance sheets because they are not available for Cadence’s use in its operations. Cadence’s obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements. |
Treasury Stock | Treasury Stock Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders’ equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of retained earnings in the consolidated statements of stockholders’ equity. There were no losses recorded by Cadence on the reissuance of treasury stock during fiscal 2018 , 2017 or 2016 . |
Revenue Recognition | Revenue Recognition 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 fiscal year ended December 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. Software Revenue Recognition 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. 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 Revenue Recognition 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. The 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. The 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. Shipping and handling costs are considered fulfillment costs and are included in cost of product and maintenance in Cadence’s consolidated income statements. IP Revenue Recognition 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 revenue as described below. Services Revenue Recognition 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. |
Revenue Net of Taxes Collected | 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. |
Shipping and Handling Cost | Shipping and handling costs are considered fulfillment costs and are included in cost of product and maintenance in Cadence’s consolidated income statements. |
Stock-Based Compensation | Stock-Based Compensation Cadence recognizes the cost of awards of equity instruments granted to employees in exchange for their services as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period, which is typically the vesting period. Cadence recognizes stock-based compensation expense on the straight-line method for awards that only contain a service condition and on the graded-vesting method for awards that contain both a service and performance condition. Cadence recognizes the impact of forfeitures on stock-based compensation expense as they occur. The fair value of stock options and purchase rights issued under Cadence’s Employee Stock Purchase Plan (“ESPP”) are calculated using the Black-Scholes option pricing model. The computation of the expected volatility assumption used for new awards is based on implied volatility when the remaining maturities of the underlying traded options are at least one year. When the remaining maturities of the underlying traded options are less than one year, expected volatility is based on a weighting of historical and implied volatilities. When determining the expected term, Cadence reviews historical employee exercise behavior from options having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes for the comparable term in effect at the time of grant. The expected dividend yield used in the calculation is zero because Cadence has not historically paid and currently does not expect to pay dividends in the foreseeable future. |
Advertising | Advertising Cadence expenses the costs of advertising as incurred. Total advertising expense, including marketing programs and events, was $7.6 million , $7.4 million and $8.4 million during fiscal 2018 , 2017 and 2016 , respectively, and is included in marketing and sales in the consolidated income statements. |
Restructuring Charges | Restructuring Charges Cadence records personnel-related restructuring charges with termination benefits when the costs are both probable and estimable. Cadence records personnel-related restructuring charges with non-customary termination benefits when the plan has been communicated to the affected employees. Cadence records facilities-related restructuring charges in the period in which the affected facilities are vacated. In connection with facilities-related restructuring plans, Cadence has made a number of estimates and assumptions related to losses on excess facilities that have been vacated or consolidated, particularly the timing of subleases and sublease terms. Closure and space reduction costs included in the restructuring charges include payments required under leases less any applicable estimated sublease income after the facilities are abandoned, lease buyout costs and certain contractual costs to maintain facilities during the period after abandonment. Cadence records estimated provisions for termination benefits and outplacement costs along with other personnel-related restructuring costs, long-term asset impairments related to abandoned assets and other costs associated with the restructuring plan. Cadence regularly evaluates the adequacy of its lease loss accruals and severance and related benefits accruals, and adjusts the balances based on actual costs incurred or changes in estimates and assumptions. Subsequent adjustments to restructuring accruals are classified in restructuring and other charges in the consolidated income statements. |
Accounting for Income Taxes | Accounting for Income Taxes Cadence accounts for the effect of income taxes in its consolidated financial statements using the asset and liability method. This process involves estimating actual current tax liabilities together with assessing carryforwards and temporary differences resulting from differing treatment of items, such as depreciation, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, measured using enacted tax rates expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. Cadence then records a valuation allowance to reduce the deferred tax assets to the amount that Cadence believes is more likely than not to be realized based on its judgment of all available positive and negative evidence. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. This assessment, which is completed on a taxing jurisdiction basis, takes into account a number of types of evidence, including the following: • The nature and history of current or cumulative financial reporting income or losses; • Sources of future taxable income; • The anticipated reversal or expiration dates of the deferred tax assets; and • Tax planning strategies. Cadence takes a two-step approach to recognizing and measuring the financial statement benefit of uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement of the audit. Cadence classifies interest and penalties on unrecognized tax benefits as income tax expense or benefit. For additional discussion of income taxes, see Note 6 in the notes to the consolidated financial statements. |
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. |
Contingencies | At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Summary of the effects of the adoption of Topic 606 | The following table summarizes the effects of adopting Topic 606 on Cadence’s consolidated balance sheet as of December 29, 2018 : As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Receivables, net $ 297,082 $ (12,099 ) $ 284,983 Prepaid expenses and other 92,550 (10,055 ) 82,495 Long-term receivables 5,972 (623 ) 5,349 Other assets 371,231 (17,013 ) 354,218 Accounts payable and accrued liabilities* 256,526 (17,438 ) 239,088 Current portion of deferred revenue 352,456 45,119 397,575 Long-term portion of deferred revenue 48,718 17,637 66,355 Retained earnings 772,709 (86,120 ) 686,589 Accumulated other comprehensive loss (24,780 ) 1,012 (23,768 ) _____________ * 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 consolidated income statement for fiscal 2018: As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands, except per share amounts) Product and maintenance revenue $ 1,997,887 $ 1,031 $ 1,998,918 Services revenue 140,135 6,643 146,778 Cost of product and maintenance 173,011 571 173,582 Marketing and sales expense 439,669 3,947 443,616 Provision for income taxes 30,613 (2,364 ) 28,249 Net income 345,777 5,520 351,297 Net income per share - basic 1.26 0.02 1.28 Net income per share - diluted 1.23 0.02 1.25 Cadence’s net cash provided by operating activities for fiscal 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 consolidated statement of cash flows for fiscal 2018: As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Net income $ 345,777 $ 5,520 $ 351,297 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes (11,676 ) (2,213 ) (13,889 ) Changes in operating assets and liabilities: Receivables (87,083 ) (28,226 ) (115,309 ) Prepaid expenses and other (19,622 ) 5,968 (13,654 ) Other assets (16,077 ) 3,461 (12,616 ) Accounts payable and accrued liabilities 1,553 10,100 11,653 Deferred revenue 100,696 5,390 106,086 |
Schedule of the cumulative effect adjustments to 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 345,777 Balance, December 29, 2018 $ 772,709 |
Depreciation and amortization over the estimated useful lives, using the straight-line method | Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows: Computer equipment and related software 2-7 years Buildings 25-32 years Leasehold improvements Shorter of the lease term or the estimated useful life Building improvements and land improvements Estimated useful life up to 32 years Furniture and fixtures 3-5 years Equipment 3-5 years |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Summary of debt outstanding | Cadence’s outstanding debt as of December 29, 2018 and December 30, 2017 was as follows: December 29, 2018 December 30, 2017 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ 100,000 $ — $ 100,000 $ 85,000 $ — $ 85,000 2019 Term Loan — — — 300,000 (226 ) 299,774 2024 Notes 350,000 (4,709 ) 345,291 350,000 (5,405 ) 344,595 Total outstanding debt $ 450,000 $ (4,709 ) $ 445,291 $ 735,000 $ (5,631 ) $ 729,369 |
Receivables, net (Tables)
Receivables, net (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Receivables [Abstract] | |
Current and long-term accounts receivable balances | Cadence’s current and long-term receivables balances as of December 29, 2018 and December 30, 2017 were as follows: As of December 29, December 30, (In thousands) Accounts receivable $ 164,223 $ 119,325 Unbilled accounts receivable 136,795 71,101 Long-term receivables 5,972 12,239 Total receivables 306,990 202,665 Less allowance for doubtful accounts (3,936 ) — Total receivables, net $ 303,054 $ 202,665 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | Cadence’s provisions for losses on its accounts receivable during fiscal 2018 , 2017 and 2016 were as follows: Balance at Beginning of Period Charged to Costs and Expenses Uncollectible Accounts Written Off, Net Balance at End of Period Year ended December 29, 2018 $ — $ 5,102 $ (1,166 ) $ 3,936 Year ended December 30, 2017 — 2,623 (2,623 ) — Year ended December 31, 2016 $ — $ 308 $ (308 ) $ — |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services | The following table shows the percentage of product and related maintenance revenue contributed by each of Cadence’s five product groups and services for fiscal 2018 , 2017 and 2016 : 2018 2017 2016 Functional Verification, including Emulation and Prototyping Hardware 24 % 22 % 25 % Digital IC Design and Signoff 29 % 29 % 29 % Custom IC Design and Simulation 26 % 27 % 25 % System Interconnect and Analysis 9 % 10 % 10 % IP 12 % 12 % 11 % Total 100 % 100 % 100 % |
Contract Assets and Deferred Revenue | Cadence’s contract balances as of December 29, 2018 and December 30, 2017 were as follows: As of December 29, December 30, As Adjusted (In thousands) Contract assets $ 10,055 $ 3,964 Deferred revenue 401,174 336,060 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income before provision for income taxes | Cadence’s income before provision for income taxes included income from the United States and from foreign subsidiaries for fiscal 2018 , 2017 and 2016 , was as follows: 2018 2017 2016 (In thousands) United States $ 58,963 $ 81,619 $ 84,694 Foreign subsidiaries 317,427 233,427 152,459 Total income before provision for income taxes $ 376,390 $ 315,046 $ 237,153 |
Components of income taxes provision | Cadence’s provision for income taxes was comprised of the following items for fiscal 2018 , 2017 and 2016 : 2018 2017 2016 (In thousands) Current: Federal $ 902 $ (2,193 ) $ 4,839 State and local (1,270 ) (2,097 ) 50 Foreign 42,657 35,301 34,047 Total current 42,289 31,011 38,936 Deferred: Federal (10,324 ) 76,494 (5,291 ) State and local 886 5,571 6,006 Foreign (2,238 ) (2,131 ) (5,584 ) Total deferred (11,676 ) 79,934 (4,869 ) Total provision for income taxes $ 30,613 $ 110,945 $ 34,067 |
Summary of income tax reconciliation | The provision for income taxes differs from the amount estimated by applying the United States statutory federal income tax rates of 21% to income before provision for income taxes for fiscal 2018 and of 35% to income before provision for income taxes for fiscal 2017 and 2016 as follows: 2018 2017 2016 (In thousands) Provision computed at federal statutory income tax rate $ 79,042 $ 110,266 $ 83,003 State and local income tax, net of federal tax effect 15,540 5,867 5,534 Foreign income tax rate differential (37,031 ) (65,296 ) (36,098 ) Deemed repatriation transition tax (1,409 ) 67,188 — Remeasurement of U.S. deferred tax assets and liabilities — 25,200 — U.S. tax on foreign entities 28,846 — — Stock-based compensation (13,539 ) (24,455 ) (13,132 ) Change in deferred tax asset valuation allowance 13,234 4,689 1,243 Tax credits (72,815 ) (26,789 ) (39,765 ) Repatriation of foreign earnings — — 25,145 Non-deductible research and development expense 4,700 — — Tax effects of intra-entity transfer of assets 79 (8,450 ) (7,661 ) Domestic production activity deduction — (2,474 ) (2,826 ) Withholding taxes 11,535 11,225 9,870 Tax settlements, foreign — 3,086 5,620 Increase in unrecognized tax benefits not included in tax settlements (1,545 ) 4,054 614 Other 3,976 6,834 2,520 Provision for income taxes $ 30,613 $ 110,945 $ 34,067 Effective tax rate 8 % 35 % 14 % |
Components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities consisted of the following as of December 29, 2018 and December 30, 2017 : As of December 29, December 30, (In thousands) Deferred tax assets: Tax credit carryforwards $ 197,524 $ 164,687 Reserves and accruals 43,522 42,357 Intangible assets 12,096 13,112 Capitalized research and development expense for income tax purposes 6,975 10,621 Operating loss carryforwards 15,347 20,650 Deferred income 6,580 12,178 Capital loss carryforwards 20,342 20,266 Stock-based compensation costs 15,329 15,782 Depreciation and amortization 8,759 7,665 Investments 2,900 3,201 Total deferred tax assets 329,374 310,519 Valuation allowance (108,724 ) (95,491 ) Net deferred tax assets 220,650 215,028 Deferred tax liabilities: Intangible assets (36,194 ) (36,683 ) Undistributed foreign earnings (27,627 ) (23,563 ) Other (2,497 ) (2,730 ) Total deferred tax liabilities (66,318 ) (62,976 ) Total net deferred tax assets $ 154,332 $ 152,052 |
Summary of operating loss carryforward | As of December 29, 2018 , Cadence’s operating loss carryforwards were as follows: Amount Expiration Periods (In thousands) Federal $ 1,374 from 2021 through 2029 California 175,541 from 2019 through 2037 Other states (tax effected, net of federal benefit) 2,333 from 2019 through 2037 Foreign (tax effected) 293 from 2025 through indefinite |
Summary of tax credit carryforwards | As of December 29, 2018 , Cadence had tax credit carryforwards of: Amount Expiration Periods (In thousands) Federal* $ 108,934 from 2023 through 2038 California 61,473 indefinite Other states 10,445 from 2019 through 2038 Foreign 16,672 from 2019 through 2038 _____________ *Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period. |
Earliest tax years open to examination by jurisdiction | As of December 29, 2018 Cadence’s earliest tax years that remain open to examination and the assessment of additional tax include: Jurisdiction Earliest Tax Year Open to Examination United States - Federal 2015 United States - California 2014 |
Unrecognized tax benefits roll forward | The changes in Cadence’s gross amount of unrecognized tax benefits during fiscal 2018 , 2017 and 2016 are as follows: 2018 2017 2016 (In thousands) Unrecognized tax benefits at the beginning of the fiscal year $ 110,179 $ 98,540 $ 87,820 Gross amount of the increases (decreases) in unrecognized tax benefits of tax positions taken during a prior year* (4,183 ) 688 (155 ) Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year 2,370 13,141 11,342 Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations (5,179 ) (3,028 ) (149 ) Effect of foreign currency translation (1,330 ) 838 (318 ) Unrecognized tax benefits at the end of the fiscal year $ 101,857 $ 110,179 $ 98,540 Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence’s effective tax rate $ 58,022 $ 63,108 $ 56,248 _____________ * Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions |
Interest and penalties recognized in consolidated income statements and balance sheets | The total amounts of interest, net of tax, and penalties recognized in the consolidated income statements as provision for income taxes for fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Interest $ 585 $ 1,865 $ 1,166 Penalties 342 218 3 The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of December 29, 2018 and December 30, 2017 were as follows: As of December 29, December 30, (In thousands) Interest $ 2,699 $ 2,511 Penalties 10 151 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangibles (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill during fiscal 2018 and 2017 were as follows: Gross Carrying Amount (In thousands) Balance as of December 31, 2016 $ 572,764 Goodwill resulting from acquisitions 90,218 Effect of foreign currency translation 3,027 Balance as of December 30, 2017 666,009 Effect of foreign currency translation (3,737 ) Balance as of December 29, 2018 $ 662,272 |
Acquired intangibles with finite lives (excluding goodwill), excluding intangibles fully amortized at end of prior fiscal year | Acquired intangibles as of December 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 $ 330,500 $ (225,383 ) $ 105,117 Agreements and relationships 146,426 (100,211 ) 46,215 Tradenames, trademarks and patents 10,718 (8,093 ) 2,625 Total acquired intangibles with definite lives 487,644 (333,687 ) 153,957 In-process technology 71,500 — 71,500 Total acquired intangibles $ 559,144 $ (333,687 ) $ 225,457 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 of acquired intangibles | Amortization expense for fiscal 2018 , 2017 and 2016 , by consolidated income statement caption, was as follows: 2018 2017 2016 (In thousands) Cost of product and maintenance $ 39,247 $ 41,781 $ 42,387 Amortization of acquired intangibles 14,086 14,716 18,095 Total amortization of acquired intangibles $ 53,333 $ 56,497 $ 60,482 |
Estimated amortization expense | Estimated amortization expense for intangible assets with definite lives for the following five fiscal years and thereafter was as follows: (In thousands) 2019 $ 46,217 2020 40,612 2021 36,115 2022 17,810 2023 5,325 Thereafter 7,878 Total estimated amortization expense $ 153,957 |
Stock Compensation Plans and _2
Stock Compensation Plans and Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock based compensation expense and allocation by share based payment award | Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the ESPP during fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Stock options $ 5,581 $ 5,417 $ 5,649 Restricted stock 153,348 117,797 96,989 ESPP 8,786 6,809 6,579 Total stock-based compensation expense $ 167,715 $ 130,023 $ 109,217 Income tax benefit $ 32,830 $ 36,664 $ 30,980 |
Stock based compensation expense and allocation by cost | Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2018 , 2017 and 2016 as follows: 2018 2017 2016 (In thousands) Cost of product and maintenance $ 2,631 $ 2,218 $ 1,995 Cost of services 3,714 3,232 2,911 Marketing and sales 34,665 26,838 22,700 Research and development 104,353 77,222 64,061 General and administrative 22,352 20,513 17,550 Total stock-based compensation expense $ 167,715 $ 130,023 $ 109,217 |
Fair value of options granted and the weighted-average assumptions | The weighted-average grant date fair value of options granted and the weighted-average assumptions used in the model for fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Dividend yield None None None Expected volatility 24.3 % 21.2 % 31.5 % Risk-free interest rate 2.54 % 2.01 % 1.21 % Expected term (in years) 4.8 4.8 4.8 Weighted-average fair value of options granted $ 10.24 $ 6.86 $ 5.84 |
Summary of changes in stock options outstanding under equity incentive plans | A summary of the changes in stock options outstanding under Cadence’s equity incentive plans during fiscal 2018 is presented below: Weighted- Average Weighted- Average Remaining Contractual Terms Aggregate Intrinsic Shares Exercise Price (Years) Value (In thousands) (In thousands) Options outstanding as of December 30, 2017 5,783 $ 16.56 Granted 736 39.57 Exercised (993 ) 11.84 Canceled and forfeited (112 ) 18.83 Options outstanding as of December 29, 2018 5,414 $ 20.51 3.6 $ 120,215 Options vested as of December 29, 2018 4,029 $ 16.68 3.0 $ 104,852 |
Intrinsic value of and cash received from options exercised | The total intrinsic value of and cash received from options exercised during fiscal 2018 , 2017 and 2016 was: 2018 2017 2016 (In thousands) Intrinsic value of options exercised $ 31,109 $ 45,643 $ 44,835 Cash received from options exercised 11,748 22,255 30,984 |
Stock-based compensation expense related to performance-based restricted stock grants | Stock-based compensation expense related to performance-based restricted stock grants for fiscal 2018 , 2017 and 2016 was as follows: 2018 2017 2016 (In thousands) Stock-based compensation expense related to performance-based grants $ 12,868 $ 8,224 $ 9,195 |
Summary of the changes in restricted stock outstanding under Cadence's equity incentive plans | A summary of the changes in restricted stock outstanding under Cadence’s equity incentive plans during fiscal 2018 is presented below: Weighted- Average Grant Date Weighted- Average Remaining Vesting Terms Aggregate Intrinsic Shares Fair Value (Years) Value (In thousands) (In thousands) Unvested shares as of December 30, 2017 11,968 $ 27.11 Granted 3,940 42.88 Vested (5,457 ) 28.49 Forfeited (749 ) 28.15 Unvested shares as of December 29, 2018 9,702 $ 32.67 1.1 $ 420,464 |
Total fair value of restricted stock awards that vested | The total fair value realized by employees upon vesting of restricted stock during fiscal 2018 , 2017 and 2016 was: 2018 2017 2016 (In thousands) Fair value of restricted stock realized upon vesting $ 232,099 $ 174,548 $ 113,114 |
Weighted-average grant date fair value of purchase rights granted under ESPP and weighted average assumptions used in model | The weighted-average grant date fair value of purchase rights granted under the ESPP and the weighted-average assumptions used in the model for fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Dividend yield None None None Expected volatility 21.1 % 20.4 % 24.4 % Risk-free interest rate 2.05 % 0.92 % 0.43 % Expected term (in years) 0.5 0.5 0.5 Weighted-average fair value of options granted $ 9.24 $ 6.64 $ 4.85 |
Shares of common stock issued under Employee Stock Purchase Plan | Shares of common stock issued under the ESPP for fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands, except per share amounts) Cadence shares purchased under the ESPP 892 1,270 1,471 Cash received for the purchase of shares under the ESPP $ 29,160 $ 26,709 $ 24,450 Weighted-average purchase price per share $ 32.69 $ 21.04 $ 16.62 |
Summary of common stock reserved for future issuance | As of December 29, 2018 , Cadence had reserved the following shares of authorized but unissued common stock for future issuance: Shares (In thousands) Employee equity incentive plans* 16,819 Employee stock purchase plans 7,027 Directors stock plans* 1,138 Total 24,984 _____________ *Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units. |
Stock Repurchase Programs (Tabl
Stock Repurchase Programs (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Share 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 fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Shares repurchased 5,934 2,495 40,493 Total cost of repurchased shares $ 250,059 $ 100,025 $ 960,289 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring reserve rollforward by major type of cost | The following table presents activity for Cadence’s restructuring plans during fiscal 2018 , 2017 and 2016 : Severance and Benefits Excess Facilities Total (In thousands) Balance, January 2, 2016 $ 751 $ 386 $ 1,137 Restructuring and other charges, net 40,411 544 40,955 Non-cash charges — (159 ) (159 ) Cash payments (16,890 ) (679 ) (17,569 ) Effect of foreign currency translation 130 (34 ) 96 Balance, December 31, 2016 $ 24,402 $ 58 $ 24,460 Restructuring and other charges, net 9,027 379 9,406 Cash payments (20,170 ) (186 ) (20,356 ) Effect of foreign currency translation 276 (2 ) 274 Balance, December 30, 2017 $ 13,535 $ 249 $ 13,784 Restructuring and other charges, net 10,268 821 11,089 Cash payments (12,688 ) (192 ) (12,880 ) Effect of foreign currency translation 61 (30 ) 31 Balance, December 29, 2018 $ 11,176 $ 848 $ 12,024 |
Schedule of restructuring reserve by balance sheet classification | The remaining liability for Cadence’s restructuring plans is recorded in the consolidated balance sheet as follows: As of December 29, 2018 (In thousands) Accounts payable and accrued liabilities $ 11,597 Other long-term liabilities 427 Total liabilities $ 12,024 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Other Income and Expenses [Abstract] | |
Other income, net | Cadence’s other income, net, for fiscal 2018 , 2017 and 2016 was as follows: 2018 2017 2016 (In thousands) Interest income $ 8,070 $ 3,879 $ 2,917 Gains (losses) on marketable equity investments (551 ) 520 263 Gains on non-marketable equity investments 3,300 8,934 2,668 Gains (losses) on securities in NQDC trust (1,471 ) 6,145 1,741 Gains (losses) on foreign exchange (5,557 ) (2,920 ) 6,879 Gain on sale of property, plant and equipment — — 923 Other income (loss), net (471 ) 197 531 Total other income, net $ 3,320 $ 16,755 $ 15,922 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Basic and diluted net income per share | The calculations for basic and diluted net income per share for fiscal 2018 , 2017 and 2016 are as follows: 2018 2017 2016 (In thousands, except per share amounts) Net income $ 345,777 $ 204,101 $ 203,086 Weighted-average common shares used to calculate basic net income per share 273,729 272,097 284,502 Stock-based awards 7,415 8,124 6,754 Weighted-average common shares used to calculate diluted net income per share 281,144 280,221 291,256 Net income per share - basic $ 1.26 $ 0.75 $ 0.71 Net income per share - diluted $ 1.23 $ 0.73 $ 0.70 |
Potential shares of Cadence's common stock excluded | The following table presents shares of Cadence’s common stock outstanding for fiscal 2018 , 2017 and 2016 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: 2018 2017 2016 (In thousands) Long-term performance-based awards 50 152 1,069 Options to purchase shares of common stock 637 303 581 Non-vested shares of restricted stock 290 77 27 Total potential common shares excluded 977 532 1,677 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Balance Sheet Components [Abstract] | |
Summary of certain balance sheet components | A summary of certain balance sheet components as of December 29, 2018 and December 30, 2017 is as follows: As of December 29, December 30, (In thousands) Inventories: Raw materials $ 16,392 $ 17,491 Finished goods 11,770 15,718 Inventories $ 28,162 $ 33,209 Property, plant and equipment: Computer equipment and related software $ 574,333 $ 537,144 Buildings 126,927 127,478 Land 55,802 55,840 Leasehold, building and land improvements 108,529 106,173 Furniture and fixtures 27,087 27,590 Equipment 52,088 50,340 In-process capital assets 6,357 5,154 Total cost 951,123 909,719 Less: Accumulated depreciation and amortization (698,493 ) (658,377 ) Property, plant and equipment, net $ 252,630 $ 251,342 Other assets: Deferred income taxes $ 154,894 $ 152,501 Non-marketable investments 118,734 2,992 Other long-term assets 97,603 74,808 Other assets $ 371,231 $ 230,301 Accounts payable and accrued liabilities: Payroll and payroll-related accruals $ 192,466 $ 164,310 Accounts payable 5,484 4,825 Accrued operating liabilities 58,576 51,966 Accounts payable and accrued liabilities $ 256,526 $ 221,101 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 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 December 29, 2018 and December 30, 2017 : Fair Value Measurements as of December 29, 2018: Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 327,841 $ 327,841 $ — $ — Marketable equity securities 3,887 3,887 — — Securities held in NQDC trust 27,767 27,767 — — Foreign currency exchange contracts 101 — 101 — Total Assets $ 359,596 $ 359,495 $ 101 $ — As of December 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 $ — $ — Marketable equity securities 4,455 4,455 — — 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. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of rent expense | Rental expense is recognized on a straight-line basis and was as follows during fiscal 2018 , 2017 and 2016 : 2018 2017 2016 (In thousands) Rent expense $ 33,717 $ 32,089 $ 28,216 |
Schedule of future minimum lease payments for operating leases | As of December 29, 2018 , future minimum lease payments under non-cancelable operating leases for the following five fiscal years and thereafter were as follows: Operating Leases (In thousands) 2019 $ 26,252 2020 23,130 2021 19,778 2022 14,243 2023 11,510 Thereafter 17,100 Total lease payments $ 112,013 |
Employee and Director Benefit_2
Employee and Director Benefit Plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
Contributions to defined contribution plans | Cadence’s total contributions made to these plans during fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Contributions to defined contribution plans $ 25,731 $ 26,010 $ 24,185 |
Net recognized gains of trading securities | Net recognized gains (losses) of these securities during fiscal 2018 , 2017 and 2016 were as follows: 2018 2017 2016 (In thousands) Gains (losses) on securities held in NQDC trust $ (1,471 ) $ 6,145 $ 1,741 |
Unfunded projected benefit obligations - defined benefit retirement plans | The unfunded projected benefit obligation for these retirement plans as of December 29, 2018 , December 30, 2017 and December 31, 2016 was as follows: December 29, December 30, December 31, (In thousands) Unfunded projected benefit obligation - defined benefit retirement plans $ 7,990 $ 6,976 $ 6,164 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated other comprehensive income net of tax | Accumulated other comprehensive loss was comprised of the following as of December 29, 2018 , and December 30, 2017 : As of December 29, December 30, (In thousands) Foreign currency translation loss $ (20,861 ) $ (2,976 ) Changes in defined benefit plan liabilities (3,919 ) (3,292 ) Unrealized holding gains on available-for-sale securities — 2,638 Total accumulated other comprehensive loss $ (24,780 ) $ (3,630 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Summary of revenue by geography | The following table presents a summary of revenue by geography for fiscal 2018 , 2017 and 2016 : 2018 2017 2016 (In thousands) Americas: United States $ 924,644 $ 829,436 $ 832,583 Other Americas 32,531 35,067 31,296 Total Americas 957,175 864,503 863,879 Asia 605,415 526,201 445,500 Europe, Middle East and Africa 406,877 385,705 346,701 Japan 168,555 166,623 160,003 Total $ 2,138,022 $ 1,943,032 $ 1,816,083 |
Summary of long-lived assets by geography | The following table presents a summary of long-lived assets by geography as of December 29, 2018 , December 30, 2017 and December 31, 2016 : As of December 29, December 30, December 31, (In thousands) Americas: United States $ 200,025 $ 198,744 $ 193,750 Other Americas 475 611 757 Total Americas 200,500 199,355 194,507 Asia 39,629 37,678 30,564 Europe, Middle East and Africa 11,784 13,615 12,692 Japan 717 694 844 Total $ 252,630 $ 251,342 $ 238,607 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - New Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net Income (Loss) Attributable to Parent | $ 345,777 | $ 204,101 | $ 203,086 | |||
Statement of Financial Position [Abstract] | ||||||
Receivables, net | 297,082 | 190,426 | ||||
Prepaid expenses and other | 92,550 | 68,266 | ||||
Long-term receivables | 5,972 | 12,239 | ||||
Other assets | 371,231 | 230,301 | ||||
Accounts payable and accrued liabilities | 256,526 | [1] | 221,101 | |||
Current portion of deferred revenue | 352,456 | 336,297 | ||||
Long-term portion of deferred revenue | 48,718 | 61,513 | ||||
Retained earnings | 772,709 | 341,003 | $ 426,932 | |||
Accumulated other comprehensive loss | (24,780) | (3,630) | ||||
Income Statement [Abstract] | ||||||
Revenue | 2,138,022 | 1,943,032 | 1,816,083 | |||
Marketing and sales expense | 439,669 | 419,161 | 395,194 | |||
Provision for income taxes | $ 30,613 | $ 110,945 | $ 34,067 | |||
Net income per share - basic | $ 1.26 | $ 0.75 | $ 0.71 | |||
Net income per share - diluted | $ 1.23 | $ 0.73 | $ 0.70 | |||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Deferred income taxes | $ (11,676) | $ 79,934 | $ (4,869) | |||
Receivables | 87,083 | 31,032 | 3,607 | |||
Prepaid expenses and other | 19,622 | 25,793 | 6,903 | |||
Other assets | 16,077 | 22,336 | 6,566 | |||
Accounts payable and accrued liabilities | 1,553 | (25,987) | 2,655 | |||
Deferred revenue | 100,696 | 33,614 | 30,742 | |||
Accounting Standards Update 2014-09 [Member] | ||||||
Statement of Financial Position [Abstract] | ||||||
Retained earnings | [2] | 91,640 | ||||
Accounting Standards Update 2016-01 [Member] | ||||||
Statement of Financial Position [Abstract] | ||||||
Retained earnings | 2,638 | |||||
Accounting Standards Update 2016-16 [Member] | ||||||
Statement of Financial Position [Abstract] | ||||||
Retained earnings | (8,349) | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net Income (Loss) Attributable to Parent | 5,520 | |||||
Statement of Financial Position [Abstract] | ||||||
Receivables, net | (12,099) | 47,300 | ||||
Prepaid expenses and other | (10,055) | |||||
Long-term receivables | (623) | |||||
Other assets | (17,013) | |||||
Accounts payable and accrued liabilities | (17,438) | [1] | 23,300 | |||
Current portion of deferred revenue | 45,119 | 57,400 | ||||
Long-term portion of deferred revenue | 17,637 | |||||
Retained earnings | (86,120) | $ 85,400 | ||||
Accumulated other comprehensive loss | 1,012 | |||||
Income Statement [Abstract] | ||||||
Marketing and sales expense | 3,947 | |||||
Provision for income taxes | $ (2,364) | |||||
Net income per share - basic | $ 0.02 | |||||
Net income per share - diluted | $ 0.02 | |||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Deferred income taxes | $ (2,213) | |||||
Receivables | 28,226 | |||||
Prepaid expenses and other | (5,968) | |||||
Other assets | (3,461) | |||||
Accounts payable and accrued liabilities | 10,100 | |||||
Deferred revenue | 5,390 | |||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net Income (Loss) Attributable to Parent | 351,297 | |||||
Statement of Financial Position [Abstract] | ||||||
Receivables, net | 284,983 | |||||
Prepaid expenses and other | 82,495 | |||||
Long-term receivables | 5,349 | |||||
Other assets | 354,218 | |||||
Accounts payable and accrued liabilities | 239,088 | |||||
Current portion of deferred revenue | 397,575 | |||||
Long-term portion of deferred revenue | 66,355 | |||||
Retained earnings | 686,589 | |||||
Accumulated other comprehensive loss | (23,768) | |||||
Income Statement [Abstract] | ||||||
Marketing and sales expense | 443,616 | |||||
Provision for income taxes | $ 28,249 | |||||
Net income per share - basic | $ 1.28 | |||||
Net income per share - diluted | $ 1.25 | |||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Deferred income taxes | $ (13,889) | |||||
Receivables | 115,309 | |||||
Prepaid expenses and other | 13,654 | |||||
Other assets | 12,616 | |||||
Accounts payable and accrued liabilities | 11,653 | |||||
Deferred revenue | 106,086 | |||||
Product and maintenance [Member] | ||||||
Income Statement [Abstract] | ||||||
Revenue | 1,997,887 | 1,813,987 | 1,683,771 | |||
Cost of product and maintenance | 173,011 | 156,676 | 183,291 | |||
Product and maintenance [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
Income Statement [Abstract] | ||||||
Revenue | 1,031 | |||||
Cost of product and maintenance | 571 | |||||
Product and maintenance [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
Income Statement [Abstract] | ||||||
Revenue | 1,998,918 | |||||
Cost of product and maintenance | 173,582 | |||||
Technology Service [Member] | ||||||
Income Statement [Abstract] | ||||||
Revenue | 140,135 | 129,045 | 132,312 | |||
Cost of product and maintenance | 85,736 | $ 80,714 | $ 73,201 | |||
Technology Service [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
Income Statement [Abstract] | ||||||
Revenue | 6,643 | |||||
Technology Service [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
Income Statement [Abstract] | ||||||
Revenue | $ 146,778 | |||||
[1] | 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. | |||||
[2] | The cumulative effect adjustment from the adoption of Revenue from Contracts with Customers (Topic 606) is presented net of the related income tax effect of $17.5 million. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - New Accounting Standards (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 29, 2018 | Dec. 29, 2018 | Dec. 31, 2017 | Dec. 30, 2017 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ 772,709 | $ 772,709 | $ 426,932 | $ 341,003 | |||
Receivables, net | 297,082 | 297,082 | 190,426 | ||||
Contract assets | 10,055 | 10,055 | 3,964 | ||||
Current portion of deferred revenue | 352,456 | 352,456 | 336,297 | ||||
Accounts payable and accrued liabilities | $ 256,526 | [1] | $ 256,526 | [1] | $ 221,101 | ||
Percentage of revenue recognizable over time | 90.00% | 90.00% | |||||
Accounting Standards Update 2014-09 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | [2] | 91,640 | |||||
Cumulative effect adjustment to beginning retained earnings, tax effect | [2] | (17,500) | |||||
Accounting Standards Update 2016-01 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | 2,638 | ||||||
Accounting Standards Update 2016-16 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | (8,349) | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ (86,120) | $ (86,120) | 85,400 | ||||
Receivables, net | (12,099) | (12,099) | 47,300 | ||||
Contract assets | 4,000 | ||||||
Current portion of deferred revenue | 45,119 | 45,119 | 57,400 | ||||
Accounts payable and accrued liabilities | $ (17,438) | [1] | $ (17,438) | [1] | 23,300 | ||
Deferred sales commissions | $ 27,300 | ||||||
[1] | 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. | ||||||
[2] | The cumulative effect adjustment from the adoption of Revenue from Contracts with Customers (Topic 606) is presented net of the related income tax effect of $17.5 million. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - New Accounting Standards Not Yet Adopted (Details Textual) - Accounting Standards Update 2016-02 [Member] $ in Millions | Dec. 30, 2018USD ($) |
Maximum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-use assets | $ 85 |
Lease liabilities | 85 |
Minimum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-use assets | 75 |
Lease liabilities | $ 75 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Debt and Derivatives (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Forward Contracts [Member] | |
Derivative [Line Items] | |
Maturity period of forward contracts | 90 days |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized Computer Software, For Internal Use, Additions | $ 3.6 | $ 2.2 | $ 3.5 |
Depreciation | $ 60.4 | $ 52.9 | $ 52.7 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives description | Shorter of the lease term or the estimated useful life | ||
Building improvements and land improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives description | Estimated useful life up to 32 years | ||
Minimum [Member] | Computer equipment and related software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 2 years | ||
Minimum [Member] | Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 25 years | ||
Minimum [Member] | Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum [Member] | Computer equipment and related software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Maximum [Member] | Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 32 years | ||
Maximum [Member] | Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Maximum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Long-lived Assets (Details) - Acquired Intangible Assets [Member] | 12 Months Ended |
Dec. 29, 2018 | |
Minimum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 2 years |
Maximum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 14 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Deferred Sales Commissions (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Capitalized Contract Cost, Net | $ 31.2 |
Capitalized Contract Cost, Amortization | $ 26.5 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Other (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Reserve for inventory | inventory in excess of 12-month demand | ||
Percentage of likelihood of tax benefit being realized upon effective settlement of audit | 50.00% | ||
Advertising Expense | $ 7.6 | $ 7.4 | $ 8.4 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Jan. 28, 2016 | Oct. 09, 2014 |
Debt Instrument [Line Items] | ||||
Principal | $ 450,000 | $ 735,000 | ||
Unamortized Discount | (4,709) | (5,631) | ||
Carrying Value | 100,000 | 85,000 | ||
Carrying Value | 345,291 | 644,369 | ||
Carrying Value | 445,291 | 729,369 | ||
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 | (4,709) | (5,405) | $ (1,400) | |
Carrying Value | 345,291 | 344,595 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | 100,000 | 85,000 | ||
Carrying Value | $ 100,000 | $ 85,000 |
Debt Credit Facility (Details T
Debt Credit Facility (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Line of Credit Facility [Line Items] | ||
Outstanding borrowings under Revolving Credit Facility | $ 100,000 | $ 85,000 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, current borrowing capacity | 350,000 | |
Credit facility, additional borrowing capacity available | 250,000 | |
Credit facility, maximum borrowing capacity | $ 600,000 | |
Credit facility, maturity date | Jan. 28, 2022 | |
Credit facility, interest rate at period end | 4.07% | |
Outstanding borrowings under Revolving Credit Facility | $ 100,000 | $ 85,000 |
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% | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, covenant, debit 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 | $ 250,000 | |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, covenant, leverage ratio | 2.75 | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, covenant, leverage ratio | 3.25 | |
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% |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Thousands | Jan. 28, 2016 | Oct. 09, 2014 | Sep. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||||
Principal payments on term loan | $ 300,000 | $ 0 | $ 0 | |||
Unamortized discount | 4,709 | 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 | |||||
Principal payments on 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 | $ 4,709 | $ 5,405 | |||
Debt issuance costs | $ 6,200 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Current and long-term receivables balances | ||||
Accounts receivable | $ 164,223 | $ 119,325 | ||
Unbilled accounts receivable | 136,795 | 71,101 | ||
Long-term receivables | 5,972 | 12,239 | ||
Total receivables | 306,990 | 202,665 | ||
Less allowance for doubtful accounts | (3,936) | 0 | $ 0 | $ 0 |
Total receivables, net | $ 303,054 | $ 202,665 |
Receivables, net (Details Textu
Receivables, net (Details Textual) - Customer | Dec. 29, 2018 | Dec. 30, 2017 |
Receivables and Allowances for Doubtful Accounts (Textual) [Abstract] | ||
Number of customers with receivables balance greater than ten percent of total balance | 1 | 1 |
Percent of receivables attributable to single customer | 11.00% | 17.00% |
Receivables, Net (Details 1)
Receivables, Net (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $ 0 | $ 0 | $ 0 |
Charged to costs and expenses | 5,102 | 2,623 | 308 |
Uncollectible accounts written off, net | (1,166) | (2,623) | (308) |
Balance at end of period | $ 3,936 | $ 0 | $ 0 |
Revenue (Details Textual)
Revenue (Details Textual) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized from deferred revenue during the period | $ 284.3 |
Unsatisfied performance obligations | $ 2,900 |
Percent of remaining performance obligations, current | 60.00% |
Revenue recognized from satisfaction of performance obligations | $ 34.3 |
Revenue (Details)
Revenue (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||
Percentage of Product and Maintenance Revenue by Product Group | 100.00% | 100.00% | 100.00% |
Functional Verification, including Emulation and Prototyping Hardware [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of Product and Maintenance Revenue by Product Group | 24.00% | 22.00% | 25.00% |
Digital IC Design and Signoff [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of Product and Maintenance Revenue by Product Group | 29.00% | 29.00% | 29.00% |
Custom IC Design [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of Product and Maintenance Revenue by Product Group | 26.00% | 27.00% | 25.00% |
System Interconnect and Analysis [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of Product and Maintenance Revenue by Product Group | 9.00% | 10.00% | 10.00% |
IP [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of Product and Maintenance Revenue by Product Group | 12.00% | 12.00% | 11.00% |
Revenue (Details 1)
Revenue (Details 1) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 10,055 | $ 3,964 |
Deferred revenue | $ 401,174 | $ 336,060 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
United States | $ 58,963 | $ 81,619 | $ 84,694 |
Foreign subsidiaries | 317,427 | 233,427 | 152,459 |
Income before provision for income taxes | $ 376,390 | $ 315,046 | $ 237,153 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 902 | $ (2,193) | $ 4,839 |
State and local | (1,270) | (2,097) | 50 |
Foreign | 42,657 | 35,301 | 34,047 |
Total current | 42,289 | 31,011 | 38,936 |
Deferred: | |||
Federal | (10,324) | 76,494 | (5,291) |
State and local | 886 | 5,571 | 6,006 |
Foreign | (2,238) | (2,131) | (5,584) |
Total deferred | (11,676) | 79,934 | (4,869) |
Total provision for income taxes | $ 30,613 | $ 110,945 | $ 34,067 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Summary of income tax reconciliation | |||
Provision computed at federal statutory income tax rate | $ 79,042 | $ 110,266 | $ 83,003 |
State and local income tax, net of federal tax effect | 15,540 | 5,867 | 5,534 |
Foreign income tax rate differential | (37,031) | (65,296) | (36,098) |
Deemed repatriation transition tax | (1,409) | 67,188 | 0 |
Remeasurement of U.S. deferred tax assets and liabilities | 0 | 25,200 | 0 |
U.S. tax on foreign entities | 28,846 | 0 | 0 |
Stock-based compensation | (13,539) | (24,455) | (13,132) |
Change in deferred tax asset valuation allowance | 13,234 | 4,689 | 1,243 |
Tax credits | (72,815) | (26,789) | (39,765) |
Repatriation of foreign earnings | 0 | 0 | 25,145 |
Non-deductible research and development expense | 4,700 | 0 | 0 |
Tax effects of intra-entity transfer of assets | 79 | (8,450) | (7,661) |
Domestic production activity deduction | 0 | (2,474) | (2,826) |
Withholding taxes | 11,535 | 11,225 | 9,870 |
Tax settlements, foreign | 0 | 3,086 | 5,620 |
Increase in unrecognized tax benefits not included in tax settlements | (1,545) | 4,054 | 614 |
Other | 3,976 | 6,834 | 2,520 |
Total provision for income taxes | $ 30,613 | $ 110,945 | $ 34,067 |
Effective tax rate | 8.00% | 35.00% | 14.00% |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred Tax Assets: | ||
Tax credit carryforwards | $ 197,524 | $ 164,687 |
Reserves and accruals | 43,522 | 42,357 |
Intangible assets | 12,096 | 13,112 |
Capitalized research and development expense for income tax purposes | 6,975 | 10,621 |
Operating loss carryforwards | 15,347 | 20,650 |
Deferred income | 6,580 | 12,178 |
Capital loss carryforwards | 20,342 | 20,266 |
Stock-based compensation costs | 15,329 | 15,782 |
Depreciation and amortization | 8,759 | 7,665 |
Investments | 2,900 | 3,201 |
Total deferred tax assets | 329,374 | 310,519 |
Valuation allowance | (108,724) | (95,491) |
Net deferred tax assets | 220,650 | 215,028 |
Deferred Tax Liabilities: | ||
Intangible assets | (36,194) | (36,683) |
Undistributed foreign earnings | (27,627) | (23,563) |
Other | (2,497) | (2,730) |
Total deferred tax liabilities | (66,318) | (62,976) |
Total net deferred tax assets | $ 154,332 | $ 152,052 |
Income Taxes (Details 4)
Income Taxes (Details 4) $ in Thousands | Dec. 29, 2018USD ($) | |
United States federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forwards | $ 1,374 | |
Tax credit carryforward | 108,934 | [1] |
California State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forwards | 175,541 | |
Tax credit carryforward | 61,473 | |
States other than California [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forwards | 2,333 | |
Tax credit carryforward | 10,445 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forwards | 293 | |
Tax credit carryforward | $ 16,672 | |
[1] | Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period. |
Income Taxes (Details 5)
Income Taxes (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Unrecognized Tax Benefits | ||||
Unrecognized tax benefits at the beginning of the fiscal year | $ 110,179 | $ 98,540 | $ 87,820 | |
Gross amount of the decreases in unrecognized tax benefits of tax positions taken during a prior year | [1] | (4,183) | (688) | (155) |
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 2,370 | 13,141 | 11,342 | |
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | (5,179) | (3,028) | (149) | |
Increase resulting from foreign currency translation | 838 | |||
Decrease resulting from foreign currency translation | (1,330) | (318) | ||
Unrecognized tax benefits at the end of the fiscal year | 101,857 | 110,179 | 98,540 | |
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate | 58,022 | 63,108 | 56,248 | |
Interest and penalties recognized in Income Statements | ||||
Interest | 585 | 1,865 | 1,166 | |
Penalties | 342 | 218 | $ 3 | |
Interest and penalties recognized in Balance Sheets | ||||
Interest | 2,699 | 2,511 | ||
Penalties | $ 10 | $ 151 | ||
[1] | Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Additional Income Taxes (Textual) [Abstract] | |||||
United States statutory federal income tax rate | 21.00% | 35.00% | 35.00% | 35.00% | |
Deemed repatriation transition tax | $ (1,409) | $ 67,188 | $ 0 | ||
Aggregate transition tax on foreign earnings resulting from the 2017 Tax Act | 65,800 | ||||
Excess tax benefits recognized in the provision for income taxes resulting form the adoption of new accounting standard | 21,300 | 32,000 | $ 17,200 | ||
Net deferred tax assets | 220,650 | 215,028 | |||
Valuation allowance | $ (108,724) | $ (95,491) |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | |||
Purchases of non-marketable investments | $ 115,839 | $ 0 | $ 0 |
Equity method investments, carrying amount | 118,200 | 2,500 | |
Equity securities without readily determinable fair value, carrying amount | $ 500 | $ 500 | |
Minimum [Member] | |||
Investment [Line Items] | |||
Equity method investment, ownership percentage | 12.00% | ||
Maximum [Member] | |||
Investment [Line Items] | |||
Equity method investment, ownership percentage | 35.00% |
Acquisitions (Details Textual)
Acquisitions (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($)acquisition | |
Business Acquisition [Line Items] | |||
Cash paid in business combinations and asset acquisitions, net of cash acquired | $ 0 | $ 143,249 | $ 41,627 |
Goodwill resulting from acquisitions | 90,218 | ||
Transaction costs associated with acquisitions | $ 0 | $ 600 | $ 1,100 |
2017 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | 2 | ||
Cash paid in business combinations and asset acquisitions, net of cash acquired | $ 142,800 | ||
Cash acquired | 4,200 | ||
Technology-based intangible assets | 76,400 | ||
Goodwill resulting from acquisitions | 90,200 | ||
Net other identifiable assets and liabilities resulting from acquisitions | $ (19,600) | ||
2016 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | acquisition | 2 | ||
Cash paid in business combinations and asset acquisitions, net of cash acquired | $ 42,400 | ||
Cash acquired | 1,800 | ||
Goodwill resulting from acquisitions | 23,600 | ||
Net other identifiable assets and liabilities resulting from acquisitions | (2,600) | ||
Finite-lived intangible assets resulting from acquisitions | $ 23,200 | ||
Trust For Benefit Of Children of Chief Executive Officer [Member] | nusemi inc [Member] | |||
Business Acquisition [Line Items] | |||
Related party ownership percentage in acquired company | 3.00% | ||
Trust For Benefit Of Children of Chief Executive Officer [Member] | Rocketick Technologies [Member] | |||
Business Acquisition [Line Items] | |||
Related party ownership percentage in acquired company | 2.00% | ||
In-Process Technology [Member] | 2017 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
In-process technology | $ 71,500 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Changes in the carrying amount of goodwill | ||
Balance at beginning of period | $ 666,009 | $ 572,764 |
Goodwill resulting from acquisitions | 90,218 | |
Effect of foreign currency translation | (3,737) | 3,027 |
Balance at end of period | $ 662,272 | $ 666,009 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
Gross carrying amount | $ 487,644 | $ 504,791 |
Accumulated amortization | (333,687) | (297,456) |
Acquired intangibles, net | 153,957 | 207,335 |
In-process technology | 71,500 | 71,500 |
Intangible Assets, Gross (Excluding Goodwill) | 559,144 | 576,291 |
Intangible Assets, Net (Excluding Goodwill) | 225,457 | 278,835 |
Existing technology [Member] | ||
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
Gross carrying amount | 330,500 | 342,810 |
Accumulated amortization | (225,383) | (199,529) |
Acquired intangibles, net | 105,117 | 143,281 |
Agreements and relationships [Member] | ||
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
Gross carrying amount | 146,426 | 151,063 |
Accumulated amortization | (100,211) | (90,675) |
Acquired intangibles, net | 46,215 | 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 | (8,093) | (7,252) |
Acquired intangibles, net | $ 2,625 | $ 3,666 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Amortization of acquired intangibles | |||
Cost of product and maintenance | $ 39,247 | $ 41,781 | $ 42,387 |
Amortization of acquired intangibles | 14,086 | 14,716 | 18,095 |
Total amortization of acquired intangibles | $ 53,333 | $ 56,497 | $ 60,482 |
Goodwill and Acquired Intangi_6
Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Estimated amortization expense | ||
2,019 | $ 46,217 | |
2,020 | 40,612 | |
2,021 | 36,115 | |
2,022 | 17,810 | |
2,023 | 5,325 | |
Thereafter | 7,878 | |
Acquired intangibles, net | $ 153,957 | $ 207,335 |
Stock Compensation Plans and _3
Stock Compensation Plans and Stock Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 167,715 | $ 130,023 | $ 109,217 |
Income tax benefit | 32,830 | 36,664 | 30,980 |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 5,581 | 5,417 | 5,649 |
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 153,348 | 117,797 | 96,989 |
Employee stock purchase plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 8,786 | $ 6,809 | $ 6,579 |
Stock Compensation Plans and _4
Stock Compensation Plans and Stock Based Compensation (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Stock based compensation expense and allocation by cost | |||
Stock-based compensation | $ 167,715 | $ 130,023 | $ 109,217 |
Cost of product and maintenance [Member] | |||
Stock based compensation expense and allocation by cost | |||
Stock-based compensation | 2,631 | 2,218 | 1,995 |
Cost of services [Member] | |||
Stock based compensation expense and allocation by cost | |||
Stock-based compensation | 3,714 | 3,232 | 2,911 |
Marketing and sales [Member] | |||
Stock based compensation expense and allocation by cost | |||
Stock-based compensation | 34,665 | 26,838 | 22,700 |
Research and development [Member] | |||
Stock based compensation expense and allocation by cost | |||
Stock-based compensation | 104,353 | 77,222 | 64,061 |
General and administrative [Member] | |||
Stock based compensation expense and allocation by cost | |||
Stock-based compensation | $ 22,352 | $ 20,513 | $ 17,550 |
Stock Compensation Plans and _5
Stock Compensation Plans and Stock Based Compensation (Details 2) - Stock options [Member] - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected volatility | 24.30% | 21.20% | 31.50% |
Risk-free interest rate | 2.54% | 2.01% | 1.21% |
Expected term (in years) | 4 years 9 months | 4 years 9 months | 4 years 9 months 29 days |
Weighted-average fair value of options granted | $ 10.24 | $ 6.86 | $ 5.84 |
Stock Compensation Plans and _6
Stock Compensation Plans and Stock Based Compensation (Details 3) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding beginning balance | shares | 5,783 |
Granted | shares | 736 |
Exercised | shares | (993) |
Canceled and forfeited | shares | (112) |
Options outstanding ending balance | shares | 5,414 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted-Average Exercise Price, Options outstanding beginning balance | $ / shares | $ 16.56 |
Weighted-Average Exercise Price Granted | $ / shares | 39.57 |
Weighted-Average Exercise Price Exercised | $ / shares | 11.84 |
Weighted-Average Exercise Price Canceled and Forfeited | $ / shares | 18.83 |
Weighted-Average Exercise Price, Options outstanding ending balance | $ / shares | $ 20.51 |
Summary of company stock option plans | |
Options vested as of December 29, 2018 | shares | 4,029 |
Weighted Average Exercise Price, Options vested as of December 29, 2018 | $ / shares | $ 16.68 |
Weighted-Average Remaining Contractual Term, Options outstanding as of December 29, 2018 | 3 years 6 months 28 days |
Weighted-Average Remaining Contractual Term, Options vested as of December 29, 2018 | 3 years |
Aggregate Intrinsic Value, Options outstanding as of December 29, 2018 | $ | $ 120,215 |
Aggregate Intrinsic Value, Options vested as of December 29, 2018 | $ | $ 104,852 |
Stock Compensation Plans and _7
Stock Compensation Plans and Stock Based Compensation (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Intrinsic Value And Cash Received From Stock Options Exercised | |||
Intrinsic value of options exercised | $ 31,109 | $ 45,643 | $ 44,835 |
Cash received from options exercised | $ 11,748 | $ 22,255 | $ 30,984 |
Stock Compensation Plans and _8
Stock Compensation Plans and Stock Based Compensation (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 167,715 | $ 130,023 | $ 109,217 |
Stock-based compensation expense related to performance-based grants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 12,868 | $ 8,224 | $ 9,195 |
Stock Compensation Plans and _9
Stock Compensation Plans and Stock Based Compensation (Details 6) - Restricted stock [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($)$ / sharesshares | |
Summary of changes in restricted stock awards outstanding under Cadence's equity incentive plans | |
Unvested shares beginning balance | shares | 11,968 |
Granted | shares | 3,940 |
Vested | shares | (5,457) |
Forfeited | shares | (749) |
Unvested shares ending balance | shares | 9,702 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Unvested shares beginning balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 27.11 |
Granted, Weighted-Average Grant date Fair Value | $ / shares | 42.88 |
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 28.49 |
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares | 28.15 |
Unvested shares beginning balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 32.67 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Unvested shares as of December 29, 2018, Weighted-Average Remaining Vesting Terms | 1 year 1 month |
Unvested shares as of December 29, 2018, Aggregate Intrinsic Value | $ | $ 420,464 |
Stock Compensation Plans and_10
Stock Compensation Plans and Stock Based Compensation (Details 7) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restricted stock [Member] | |||
Fair value of restricted stock awards that vested | |||
Fair value of restricted stock realized upon vesting | $ 232,099 | $ 174,548 | $ 113,114 |
Stock Compensation Plans and_11
Stock Compensation Plans and Stock Based Compensation (Details 8) - Purchase rights granted [Member] - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Weighted-average grant date fair value of purchase rights granted under ESPP and weighted-average assumptions used in model | |||
Expected volatility | 21.10% | 20.40% | 24.40% |
Risk-free interest rate | 2.05% | 0.92% | 0.43% |
Expected term (in years) | 6 months | 6 months | 6 months |
Weighted-average fair value of options granted | $ 9.24 | $ 6.64 | $ 4.85 |
Stock Compensation Plans and_12
Stock Compensation Plans and Stock Based Compensation (Details 9) - Employee stock purchase plans [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Shares of common stock issued under employee stock purchase plan | |||
Cadence shares purchased under the ESPP | 892 | 1,270 | 1,471 |
Cash received for the purchase of shares under the ESPP | $ 29,160 | $ 26,709 | $ 24,450 |
Weighted-average purchase price per share | $ 32.69 | $ 21.04 | $ 16.62 |
Stock Compensation Plans and_13
Stock Compensation Plans and Stock Based Compensation (Details 10) shares in Thousands | Dec. 29, 2018shares | |
Common stock reserved for future issuance | ||
Common stock reserved for future issuance | 24,984 | |
Employee equity incentive plans [Member] | ||
Common stock reserved for future issuance | ||
Common stock reserved for future issuance | 16,819 | [1] |
Employee stock purchase plans [Member] | ||
Common stock reserved for future issuance | ||
Common stock reserved for future issuance | 7,027 | |
Directors stock option plans [Member] | ||
Common stock reserved for future issuance | ||
Common stock reserved for future issuance | 1,138 | [1] |
[1] | Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units. |
Stock Compensation Plans and_14
Stock Compensation Plans and Stock Based Compensation (Details Textual) - USD ($) shares in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 29, 2018 | Jul. 31, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | |
One Thousand Nine Hundred Ninety Five Directors Stock Options Plan [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Number of shares available for issuance under equity incentive plan | 500 | 500 | ||
Term of options granted under Directors' Plan | 10 years | |||
Employee stock purchase plans [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Percentage of lower of fair market value at beginning or end of applicable offering period used for calculating price of common stock to be purchased by employees | 85.00% | |||
Purchase period for common stock | 6 months | |||
Additional shares authorized and available for issuance under equity incentive plan | 4,000 | |||
Number of shares available for issuance under Employee Stock Purchase Plan | 7,000 | 7,000 | ||
Employee Stock Purchase Plan with Offering Period Commencing on February 1, 2014 [Member] [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Maximum percentage of annual base earnings plus bonuses and commissions for which common stock can be purchased by employees | 10.00% | 7.00% | 10.00% | |
Maximum amount for which common stock can be purchased by employees in any calendar year | $ 10,000 | $ 8,000 | ||
2014 Omnibus Equity Incentive Plan [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Number of shares available for issuance under equity incentive plan | 9,400 | 9,400 | ||
Expiration period from date of grant for options granted | 7 years | |||
Additional shares authorized and available for issuance under equity incentive plan | 2,000 | |||
Stock options [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Total unrecognized compensation expense, net of estimates forfeitures | $ 10,800,000 | $ 10,800,000 | ||
Weighted-average vesting period over which unrecognized compensation expense will be recognized | 2 years 3 months | |||
Stock options [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Maximum [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Minimum vesting period | 4 years | |||
Stock options [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Minimum [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Minimum vesting period | 3 years | |||
Employee Stock [Member] | One Thousand Nine Hundred Ninety Five Directors Stock Options Plan [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Minimum vesting period | 1 year | |||
Restricted stock [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Performance-based stock awards, total granted | 9,702 | 9,702 | 11,968 | |
Total unrecognized compensation expense, net of estimates forfeitures | $ 261,600,000 | $ 261,600,000 | ||
Weighted-average vesting period over which unrecognized compensation expense will be recognized | 1 year 11 months | |||
Restricted stock [Member] | Maximum [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Minimum vesting period | 4 years | |||
Restricted stock [Member] | Minimum [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Minimum vesting period | 3 years | |||
Restricted stock [Member] | One Thousand Nine Hundred Ninety Five Directors Stock Options Plan [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Minimum vesting period | 1 year | |||
Restricted stock [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Maximum [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Minimum vesting period | 4 years | |||
Restricted stock [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Minimum [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Minimum vesting period | 3 years | |||
Performance Based Restricted Stock Grants [Member] | ||||
Stock Compensation Plans (Textual) [Abstract] | ||||
Performance-based stock awards, total granted | 1,530 | 1,530 |
Stock Repurchase Programs (Deta
Stock Repurchase Programs (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Treasury stock, shares repurchased | 5,934 | 2,495 | 40,493 |
Treasury stock, total cost of repurchased shares | $ 250,059 | $ 100,025 | $ 960,289 |
Stock Repurchase Programs (De_2
Stock Repurchase Programs (Details Textual) - USD ($) $ in Millions | Dec. 29, 2018 | Jan. 31, 2017 |
Equity [Abstract] | ||
Authorized amount for share repurchases | $ 525 | |
Remaining authorization for share repurchases | $ 175 |
Restructuring and Other Charg_3
Restructuring and Other Charges (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 11,089 | $ 9,406 | $ 40,955 | |
Restructuring reserve | 12,024 | $ 13,784 | $ 24,460 | $ 1,137 |
2018 restructuring plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 13,800 | |||
Restructuring reserve | 11,500 | |||
Prior Restructuring Plans [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, accrual adjustment | (2,700) | |||
Restructuring reserve | $ 500 |
Restructuring and Other Charg_4
Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cadence's Restructuring Plans | |||
Beginning Balance | $ 13,784 | $ 24,460 | $ 1,137 |
Restructuring and other charges (credits), net | 11,089 | 9,406 | 40,955 |
Non-cash charges | (159) | ||
Cash payments | (12,880) | (20,356) | (17,569) |
Effect of foreign currency translation | 31 | 274 | 96 |
Ending Balance | 12,024 | 13,784 | 24,460 |
Severance and Benefits [Member] | |||
Cadence's Restructuring Plans | |||
Beginning Balance | 13,535 | 24,402 | 751 |
Restructuring and other charges (credits), net | 10,268 | 9,027 | 40,411 |
Non-cash charges | 0 | ||
Cash payments | (12,688) | (20,170) | (16,890) |
Effect of foreign currency translation | 61 | 276 | 130 |
Ending Balance | 11,176 | 13,535 | 24,402 |
Excess Facilities [Member] | |||
Cadence's Restructuring Plans | |||
Beginning Balance | 249 | 58 | 386 |
Restructuring and other charges (credits), net | 821 | 379 | 544 |
Non-cash charges | (159) | ||
Cash payments | (192) | (186) | (679) |
Effect of foreign currency translation | (30) | (2) | (34) |
Ending Balance | $ 848 | $ 249 | $ 58 |
Restructuring and Other Charg_5
Restructuring and Other Charges (Details 1) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 12,024 | $ 13,784 | $ 24,460 | $ 1,137 |
Accounts payable and accrued liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 11,597 | |||
Other long-term liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 427 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Other Income, Net | |||
Interest income | $ 8,070 | $ 3,879 | $ 2,917 |
Gains (losses) on marketable equity investments | (551) | 520 | 263 |
Gains on non-marketable equity investments | 3,300 | 8,934 | 2,668 |
Gains (losses) on securities in NQDC trust | (1,471) | 6,145 | 1,741 |
Gains (losses) on foreign exchange | (5,557) | (2,920) | 6,879 |
Gain on sale of property, plant and equipment | 0 | 0 | 923 |
Other income (loss), net | (471) | 197 | 531 |
Total other income, net | $ 3,320 | $ 16,755 | $ 15,922 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net income | $ 345,777 | $ 204,101 | $ 203,086 |
Weighted average common shares used to calculate basic net income per share | 273,729 | 272,097 | 284,502 |
Stock-based awards | 7,415 | 8,124 | 6,754 |
Weighted average common shares used to calculate diluted net income per share | 281,144 | 280,221 | 291,256 |
Net income per share - basic (in usd per share) | $ 1.26 | $ 0.75 | $ 0.71 |
Net income per share - diluted (in usd per share) | $ 1.23 | $ 0.73 | $ 0.70 |
Net Income Per Share (Details 1
Net Income Per Share (Details 1) - shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Potential shares of Cadence's common stock excluded | |||
Total potential common shares excluded | 977 | 532 | 1,677 |
Long-term performance-based awards | |||
Potential shares of Cadence's common stock excluded | |||
Total potential common shares excluded | 50 | 152 | 1,069 |
Options to purchase shares of common stock | |||
Potential shares of Cadence's common stock excluded | |||
Total potential common shares excluded | 637 | 303 | 581 |
Non-vested shares of restricted stock | |||
Potential shares of Cadence's common stock excluded | |||
Total potential common shares excluded | 290 | 77 | 27 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Inventories: | ||||
Raw materials | $ 16,392 | $ 17,491 | ||
Finished goods | 11,770 | 15,718 | ||
Inventories | 28,162 | 33,209 | ||
Property, plant and equipment: | ||||
Computer equipment and related software | 574,333 | 537,144 | ||
Buildings | 126,927 | 127,478 | ||
Land | 55,802 | 55,840 | ||
Leasehold, building and land improvements | 108,529 | 106,173 | ||
Furniture and fixtures | 27,087 | 27,590 | ||
Equipment | 52,088 | 50,340 | ||
In-process capital assets | 6,357 | 5,154 | ||
Total cost | 951,123 | 909,719 | ||
Less: Accumulated depreciation and amortization | (698,493) | (658,377) | ||
Property, plant and equipment, net | 252,630 | 251,342 | $ 238,607 | |
Other assets: | ||||
Deferred income taxes | 154,894 | 152,501 | ||
Non-marketable investments | 118,734 | 2,992 | ||
Other long-term assets | 97,603 | 74,808 | ||
Other assets | 371,231 | 230,301 | ||
Accounts payable and accrued liabilities: | ||||
Payroll and payroll-related accruals | 192,466 | 164,310 | ||
Accounts payable | 5,484 | 4,825 | ||
Accrued operating liabilities | 58,576 | 51,966 | ||
Accounts payable and accrued liabilities | $ 256,526 | [1] | $ 221,101 | |
[1] | 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. |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Assets | ||
Marketable equity securities | $ 3,887 | $ 4,455 |
Securities held in NQDC trust | 27,767 | 31,473 |
Foreign currency exchange contracts | 101 | 2,937 |
Total Assets | 359,596 | 542,799 |
Money market funds [Member] | ||
Assets | ||
Money market funds | 327,841 | 503,934 |
Fair Value Measurements, Level 1 [Member] | ||
Assets | ||
Marketable equity securities | 3,887 | 4,455 |
Securities held in NQDC trust | 27,767 | 31,473 |
Foreign currency exchange contracts | 0 | 0 |
Total Assets | 359,495 | 539,862 |
Fair Value Measurements, Level 1 [Member] | Money market funds [Member] | ||
Assets | ||
Money market funds | 327,841 | 503,934 |
Fair Value Measurements, Level 2 [Member] | ||
Assets | ||
Marketable equity securities | 0 | 0 |
Securities held in NQDC trust | 0 | 0 |
Foreign currency exchange contracts | 101 | 2,937 |
Total Assets | 101 | 2,937 |
Fair Value Measurements, Level 2 [Member] | Money market funds [Member] | ||
Assets | ||
Money market funds | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | ||
Assets | ||
Marketable equity securities | 0 | 0 |
Securities held in NQDC trust | 0 | 0 |
Foreign currency exchange contracts | 0 | 0 |
Total Assets | 0 | 0 |
Fair Value Measurements, Level 3 [Member] | Money market funds [Member] | ||
Assets | ||
Money market funds | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Operating Leases, Rent Expense, Net [Abstract] | |||
Rent expense | $ 33,717 | $ 32,089 | $ 28,216 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating leases, future minimum payments, Current Year | 26,252 | ||
Operating leases, future minimum payments, due in two years | 23,130 | ||
Operating leases, future minimum payments, due in three years | 19,778 | ||
Operating leases, future minimum payments, due in four years | 14,243 | ||
Operating leases, future minimum payments, due in five years | 11,510 | ||
Operating leases, future minimum payments, due thereafter | 17,100 | ||
Operating leases, future minimum payments due | $ 112,013 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations | $ 24.7 |
General period of warranty on sales of hardware products | 90 days |
Employee and Director Benefit_3
Employee and Director Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Contributions to plan | |||
Contributions to defined contribution plans | $ 25,731 | $ 26,010 | $ 24,185 |
Net recognized gains (losses) of securities | |||
Gains (losses) on securities held in NQDC trust | (1,471) | 6,145 | 1,741 |
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Unfunded projected benefit obligation - defined benefit retirement plans | $ 7,990 | $ 6,976 | $ 6,164 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Accumulated other comprehensive loss | ||
Foreign currency translation gain | $ (20,861) | $ (2,976) |
Changes in defined benefit plan liabilities | (3,919) | (3,292) |
Unrealized holding gains on available-for-sale securities | 0 | 2,638 |
Total accumulated other comprehensive loss | $ (24,780) | $ (3,630) |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Americas: | |||
Total Americas | $ 957,175 | $ 864,503 | $ 863,879 |
Total revenue | 2,138,022 | 1,943,032 | 1,816,083 |
United States | |||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | 924,644 | 829,436 | 832,583 |
Other Americas [Member] | |||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | 32,531 | 35,067 | 31,296 |
Asia [Member] | |||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | 605,415 | 526,201 | 445,500 |
Europe, Middle East and Africa [Member] | |||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | 406,877 | 385,705 | 346,701 |
Japan [Member] | |||
Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
Geographic Areas, revenue from External Customers attributed to Individual Foreign Countries | $ 168,555 | $ 166,623 | $ 160,003 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Americas: | |||
Total Americas | $ 200,500 | $ 199,355 | $ 194,507 |
Total long-lived assets | 252,630 | 251,342 | 238,607 |
United States | |||
Summary of long-lived assets by geography | |||
Long-Lived Assets in Individual Foreign Countries | 200,025 | 198,744 | 193,750 |
Other Americas [Member] | |||
Summary of long-lived assets by geography | |||
Long-Lived Assets in Individual Foreign Countries | 475 | 611 | 757 |
Asia [Member] | |||
Summary of long-lived assets by geography | |||
Long-Lived Assets in Individual Foreign Countries | 39,629 | 37,678 | 30,564 |
Europe, Middle East and Africa [Member] | |||
Summary of long-lived assets by geography | |||
Long-Lived Assets in Individual Foreign Countries | 11,784 | 13,615 | 12,692 |
Japan [Member] | |||
Summary of long-lived assets by geography | |||
Long-Lived Assets in Individual Foreign Countries | $ 717 | $ 694 | $ 844 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Feb. 02, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Feb. 06, 2019 | Jan. 31, 2017 | |
Subsequent Events [Line Items] | ||||||
Purchases of non-marketable investments | $ 115,839 | $ 0 | $ 0 | |||
Equity method investments, carrying amount | $ 118,200 | $ 2,500 | ||||
Authorized amount for share repurchases | $ 525,000 | |||||
Subsequent Event [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Purchases of non-marketable investments | $ 34,000 | |||||
Equity method investments, carrying amount | $ 149,000 | |||||
Authorized amount for share repurchases | $ 500,000 |