Cadence Design Systems (CDNS) 10-Q 22 Jul 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 29, 2019shares
Cover page.
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	CDNS
Document Transition Report	false
Document Quarterly Report	true
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	00-0000000
Entity Address, Address Line One	2655 Seely Avenue, Building 5,
Entity Address, City or Town	San Jose,
Entity Address, State or Province	CA
Entity Registrant Name	CADENCE DESIGN SYSTEMS INC
City Area Code	(408)
Local Phone Number	943-1234
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Central Index Key	0000813672
Document Type	10-Q
Document Period End Date	Jun. 29, 2019
Entity File Number	000-15867
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-28
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding	280,153,000
Entity Address, Postal Zip Code	95134
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Current Assets:
Cash and cash equivalents	$ 633,415	$ 533,298
Receivables, net	237,609	297,082
Inventories	49,299	28,162
Prepaid expenses and other	58,918	92,550
Total current assets	979,241	951,092
Property, plant and equipment, net of accumulated depreciation of $719,785 and $698,493, respectively	257,882	252,630
Goodwill	662,713	662,272
Acquired intangibles, net	197,840	225,457
Long-term receivables	2,140	5,972
Other assets	512,509	371,231
Total assets	2,612,325	2,468,654
Current Liabilities:
Revolving credit facility	0	100,000
Accounts payable and accrued liabilities	246,591	256,526
Current portion of deferred revenue	363,592	352,456
Total current liabilities	610,183	708,982
Long-Term Liabilities:
Long-term portion of deferred revenue	57,280	48,718
Long-term debt	345,652	345,291
Other long-term liabilities	168,665	77,262
Total long-term liabilities	571,597	471,271
Commitments and contingencies
Stockholders' Equity:
Common stock and capital in excess of par value	1,984,464	1,936,124
Treasury stock, at cost	(1,526,421)	(1,395,652)
Retained earnings	1,000,499	772,709
Accumulated other comprehensive loss	(27,997)	(24,780)
Total stockholders’ equity	1,430,545	1,288,401
Total liabilities and stockholders’ equity	$ 2,612,325	$ 2,468,654

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Statement of Financial Position [Abstract]
Accumulated depreciation on property, plant and equipment	$ 719,785	$ 698,493

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Revenues [Abstract]
Revenues	$ 580,419	$ 518,391	$ 1,157,161	$ 1,035,704
Costs and Expenses:
Marketing and sales	116,208	109,300	233,038	218,448
Research and development	231,814	219,129	460,024	443,314
General and administrative	34,407	34,875	64,509	68,174
Amortization of acquired intangibles	3,159	3,518	6,467	7,148
Restructuring and other credits	(313)	(447)	(1,002)	(2,438)
Total costs and expenses	446,744	425,335	895,090	856,815
Income from operations	133,675	93,056	262,071	178,889
Interest expense	4,976	6,669	10,367	13,644
Other income (expense), net	(110)	3,638	5,131	2,949
Income before provision for income taxes	128,589	90,025	256,835	168,194
Provision for income taxes	21,354	14,876	29,045	20,160
Net income	$ 107,235	$ 75,149	$ 227,790	$ 148,034
Net income per share – basic	$ 0.39	$ 0.27	$ 0.83	$ 0.54
Net income per share – diluted	$ 0.38	$ 0.27	$ 0.81	$ 0.53
Weighted average common shares outstanding – basic	273,159	273,564	273,155	273,703
Weighted average common shares outstanding – diluted	281,054	280,774	280,877	281,247
Product and maintenance [Member]
Revenues [Abstract]
Revenues	$ 548,028	$ 487,870	$ 1,091,546	$ 968,479
Costs and Expenses:
Cost of sales	43,388	40,127	93,910	81,857
Technology Service [Member]
Revenues [Abstract]
Revenues	32,391	30,521	65,615	67,225
Costs and Expenses:
Cost of sales	$ 18,081	$ 18,833	$ 38,144	$ 40,312

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 107,235	$ 75,149	$ 227,790	$ 148,034
Other comprehensive loss, net of tax effects:
Foreign currency translation adjustments	(1,815)	(19,110)	(592)	(7,052)
Changes in defined benefit plan liabilities	(107)	(2)	(2,625)	148
Total other comprehensive loss, net of tax effects	(1,922)	(19,112)	(3,217)	(6,904)
Comprehensive income	$ 105,313	$ 56,037	$ 224,573	$ 141,130

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 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	$ 83,291				$ 85,929	$ (2,638)
Beginning balance at Dec. 30, 2017	989,202		$ 1,829,950	$ (1,178,121)	341,003	(3,630)
Beginning balance, shares at Dec. 30, 2017		282,067
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	72,885				72,885
Other Comprehensive Income (Loss), Net of Tax	12,208					12,208
Purchase of treasury stock, shares		(1,289)
Purchase of treasury stock	(50,013)			(50,013)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		1,698
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	23,339		(5,087)	28,426
Stock Received for Payment of Employee Taxes on Vesting of Restricted Stock, shares		(570)
Stock Received for Payment of Employee Taxes on Vesting of Restricted Stock Value	(26,515)		(4,072)	(22,443)
Stock-based compensation expense	37,901		37,901
Ending balance at Mar. 31, 2018	1,142,298		1,858,692	(1,222,151)	499,817	5,940
Ending balance, shares at Mar. 31, 2018		281,906
Beginning balance at Dec. 30, 2017	989,202		1,829,950	(1,178,121)	341,003	(3,630)
Beginning balance, shares at Dec. 30, 2017		282,067
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	148,034
Other Comprehensive Income (Loss), Net of Tax	$ (6,904)
Purchase of treasury stock, shares	(2,512)
Purchase of treasury stock	$ (100,025)
Ending balance at Jun. 30, 2018	1,187,988		1,861,135	(1,234,941)	574,966	(13,172)
Ending balance, shares at Jun. 30, 2018		282,808
Beginning balance at Mar. 31, 2018	1,142,298		1,858,692	(1,222,151)	499,817	5,940
Beginning balance, shares at Mar. 31, 2018		281,906
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	75,149				75,149
Other Comprehensive Income (Loss), Net of Tax	$ (19,112)					(19,112)
Purchase of treasury stock, shares	(1,224)	(1,224)
Purchase of treasury stock	$ (50,012)			(50,012)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		2,202
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	2,319		(37,987)	40,306
Stock Received for Payment of Employee Taxes on Vesting of Restricted Stock, shares		(76)
Stock Received for Payment of Employee Taxes on Vesting of Restricted Stock Value	(3,610)		(526)	(3,084)
Stock-based compensation expense	40,956		40,956
Ending balance at Jun. 30, 2018	1,187,988		1,861,135	(1,234,941)	574,966	(13,172)
Ending balance, shares at Jun. 30, 2018		282,808
Beginning balance at Dec. 29, 2018	1,288,401		1,936,124	(1,395,652)	772,709	(24,780)
Beginning balance, shares at Dec. 29, 2018		280,015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	120,555				120,555
Other Comprehensive Income (Loss), Net of Tax	(1,295)					(1,295)
Purchase of treasury stock, shares		(1,529)
Purchase of treasury stock	(81,114)			(81,114)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		3,075
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	29,859		(29,746)	59,605
Stock Received for Payment of Employee Taxes on Vesting of Restricted Stock, shares		(531)
Stock Received for Payment of Employee Taxes on Vesting of Restricted Stock Value	(32,822)		(3,736)	(29,086)
Stock-based compensation expense	42,253		42,253
Ending balance at Mar. 30, 2019	1,365,837		1,944,895	(1,446,247)	893,264	(26,075)
Ending balance, shares at Mar. 30, 2019		281,030
Beginning balance at Dec. 29, 2018	1,288,401		1,936,124	(1,395,652)	772,709	(24,780)
Beginning balance, shares at Dec. 29, 2018		280,015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	227,790
Other Comprehensive Income (Loss), Net of Tax	$ (3,217)
Purchase of treasury stock, shares	(2,654)
Purchase of treasury stock	$ (156,120)
Ending balance at Jun. 29, 2019	1,430,545		1,984,464	(1,526,421)	1,000,499	(27,997)
Ending balance, shares at Jun. 29, 2019		280,153
Beginning balance at Mar. 30, 2019	1,365,837		1,944,895	(1,446,247)	893,264	(26,075)
Beginning balance, shares at Mar. 30, 2019		281,030
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	107,235				107,235
Other Comprehensive Income (Loss), Net of Tax	$ (1,922)					(1,922)
Purchase of treasury stock, shares	(1,125)	(1,125)
Purchase of treasury stock	$ (75,006)			(75,006)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		410
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	3,020		(2,283)	5,303
Stock Received for Payment of Employee Taxes on Vesting of Restricted Stock, shares		(162)
Stock Received for Payment of Employee Taxes on Vesting of Restricted Stock Value	(12,876)		(2,405)	(10,471)
Stock-based compensation expense	44,257		44,257
Ending balance at Jun. 29, 2019	$ 1,430,545		$ 1,984,464	$ (1,526,421)	$ 1,000,499	$ (27,997)
Ending balance, shares at Jun. 29, 2019		280,153

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018
Statement of Cash Flows [Abstract]
Cash and cash equivalents at beginning of period	$ 533,298	$ 688,087
Cash flows from operating activities:
Net income	227,790	148,034
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	61,197	59,282
Amortization of debt discount and fees	497	586
Stock-based compensation	86,510	78,857
(Gain) loss on investments, net	259	(1,541)
Deferred income taxes	(8,159)	1,664
Provisions for losses on receivables	(386)	1,015
ROU asset amortization and change in operating lease liabilities	2,504	0
Other non-cash items	160	(133)
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	63,876	(2,606)
Inventories	(25,689)	1,932
Prepaid expenses and other	33,055	13,294
Other assets	2,547	5,027
Accounts payable and accrued liabilities	(34,670)	(11,832)
Deferred revenue	19,707	71,667
Other long-term liabilities	2,576	(2,333)
Net cash provided by operating activities	431,774	362,913
Cash flows from investing activities:
Purchases of non-marketable investments	(33,717)	0
Proceeds from the sale of non-marketable investments	2,952	0
Purchases of property, plant and equipment	(30,562)	(31,105)
Payments to Acquire Businesses, Net of Cash Acquired	(338)	0
Net cash used for investing activities	(61,665)	(31,105)
Cash flows from financing activities:
Proceeds from revolving credit facility	150,000	0
Payment on revolving credit facility	(250,000)	(85,000)
Proceeds from issuance of common stock	32,855	25,656
Stock received for payment of employee taxes on vesting of restricted stock	(45,698)	(30,125)
Payments for repurchases of common stock	(156,120)	(100,025)
Change in book overdraft	0	(3,867)
Net cash used for financing activities	(268,963)	(193,361)
Effect of exchange rate changes on cash and cash equivalents	(1,029)	(6,994)
Increase in cash and cash equivalents	100,117	131,453
Cash and cash equivalents at end of period	633,415	819,540
Supplemental cash flow information:
Cash paid for interest	10,052	13,165
Cash paid for taxes, net	$ 17,708	$ 17,807

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by Cadence Design Systems, Inc. (“Cadence”) without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, Cadence believes that the disclosures contained in this Quarterly Report on Form 10-Q comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These condensed consolidated financial statements are meant to be, and should be, read in conjunction with the consolidated financial statements and the Notes thereto included in Cadence’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018 . The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q reflect all adjustments (which include only normal, recurring adjustments and those items discussed in these Notes) that are, in the opinion of management, necessary to state fairly the results of operations, cash flows and financial position for the periods and dates presented. The results for such periods are not necessarily indicative of the results to be expected for the full fiscal year. Certain prior period balances have been reclassified to conform to the current year presentation. Management has evaluated subsequent events through the issuance date of the unaudited condensed consolidated financial statements. Use of Estimates Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Comparability Effective the first day of fiscal 2019, Cadence adopted multiple new accounting standards. Prior periods were not retrospectively restated, so the condensed consolidated balance sheet as of June 29, 2019 was prepared using accounting standards that were different than those in effect as of December 29, 2018 . Therefore, the condensed consolidated balance sheets as of June 29, 2019 and December 29, 2018 are not directly comparable. Recently Adopted Accounting Standards Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) 2016-02, “Leases (Topic 842)” (“Topic 842”), which requires the recognition of right-of-use assets and lease liabilities on the balance sheet. The most prominent of the changes in the standard is the recognition of right-of-use (“ROU”) assets and lease liabilities by lessees for those leases classified as operating leases. Cadence adopted the new standard on December 30, 2018, the first day of fiscal 2019, and used the modified retrospective approach with the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. Cadence elected certain practical expedients, which among other things, allowed us to carry forward prior conclusions about lease identification and classification. Adoption of the standard resulted in the balance sheet recognition of additional lease assets and lease liabilities of approximately $80 million ; however, the adoption of the standard did not have an impact on Cadence’s beginning retained earnings, results from operations or cash flows. Additionally, the new standard did not have a material impact on the condensed consolidated financial statements for arrangements in which Cadence is the lessor. For additional information regarding Cadence’s leases, see Note 6 in the notes to condensed consolidated financial statements. Income Tax Effects within Accumulated Other Comprehensive income In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification of the income tax effects of the U.S. Tax Cuts and Jobs Act (the “Tax Act”) on items within accumulated other comprehensive income to retained earnings. This standard became effective for Cadence on December 30, 2018, the first day of fiscal 2019. The adoption of this standard did not have a material impact on Cadence’s condensed consolidated financial statements.

Debt

Debt	6 Months Ended
	Jun. 29, 2019
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of June 29, 2019 and December 29, 2018 was as follows: June 29, 2019 December 29, 2018 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ 100,000 $ — $ 100,000 2024 Notes 350,000 (4,348 ) 345,652 350,000 (4,709 ) 345,291 Total outstanding debt $ 350,000 $ (4,348 ) $ 345,652 $ 450,000 $ (4,709 ) $ 445,291 Revolving Credit Facility In January 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 1.25% and 1.875% per annum or at the base rate plus a margin between 0.25% and 0.875% per annum. Interest is payable quarterly. A commitment fee ranging from 0.15% to 0.30% is assessed on the daily average undrawn portion of revolving commitments. The credit facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness, grant liens, make certain investments (including acquisitions), dispose of certain assets and make certain payments, including share repurchases and dividends. In addition, the credit facility contains financial covenants that require Cadence to maintain a funded debt to EBITDA ratio not greater than 3.00 to 1, with a step up to 3.50 to 1 for one year following an acquisition by Cadence of at least $250.0 million that results in a pro forma leverage ratio between 2.75 to 1 and 3.25 to 1. As of June 29, 2019 , Cadence was in compliance with all financial covenants associated with the revolving credit facility. 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 fair value of the 2024 Notes was approximately $372.4 million as of June 29, 2019 . 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	6 Months Ended
	Jun. 29, 2019
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of June 29, 2019 and December 29, 2018 were as follows: As of June 29, December 29, (In thousands) Accounts receivable $ 130,796 $ 164,223 Unbilled accounts receivable 107,962 136,795 Long-term receivables 2,140 5,972 Total receivables 240,898 306,990 Less allowance for doubtful accounts (1,149 ) (3,936 ) Total receivables, net $ 239,749 $ 303,054 Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of June 29, 2019 , no customer accounted for 10% or more of Cadence’s total receivables. As of December 29, 2018 , one customer accounted for 11% of Cadence’s total receivables.

Revenue

Revenue	6 Months Ended
	Jun. 29, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Cadence combines its products into five categories 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 categories and services for the three and six months ended June 29, 2019 and June 30, 2018 : Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Functional Verification, including Emulation and Prototyping Hardware 1 22 % 23 % 23 % 25 % Digital IC Design and Signoff 31 % 30 % 31 % 29 % Custom IC Design and Simulation 26 % 26 % 26 % 26 % System Interconnect and Analysis 10 % 9 % 9 % 9 % IP 11 % 12 % 11 % 11 % Total 100 % 100 % 100 % 100 % _____________ 1 Includes immaterial amount of revenue accounted for under Topic 842. 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 standalone selling price (“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 with the same term. For Cadence’s professional services, revenue is recognized over time, generally using costs incurred or hours expended to measure progress. Judgment is required in estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. For Cadence’s other performance obligations recognized over time, revenue is generally recognized using a time-based measure of progress reflecting generally consistent efforts to satisfy those performance obligations throughout the arrangement term. If a group of agreements are so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. Cadence exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. Cadence’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved. Cadence is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract or based on Cadence’s expectations of the term of the contract. Generally, Cadence has not experienced significant returns or refunds to customers. These estimates require significant judgment and the change in these estimates could have an effect on its results of operations during the periods involved. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on Cadence’s condensed consolidated balance 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 condensed consolidated balance sheet and primarily relate to Cadence’s rights to consideration for work completed but not billed as of June 29, 2019 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 June 29, 2019 and December 29, 2018 were as follows: As of June 29, December 29, (In thousands) Contract assets $ 10,501 $ 10,055 Deferred revenue 420,872 401,174 Cadence recognized revenue of $88.1 million and $246.0 million during the three and six months ended June 29, 2019 , and $67.7 million and $210.3 million during the three and six months ended June 30, 2018 , respectively, that was included in the deferred revenue balance at the beginning of each fiscal year. 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. Cadence has elected to exclude the future royalty payments from the remaining performance obligations. Contracted but unsatisfied performance obligations were approximately $2.8 billion as of June 29, 2019 , 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. Cadence recognized revenue of $8.2 million and $16.7 million during the three and six months ended June 29, 2019 , and $8.3 million and $14.5 million during the three and six months ended June 30, 2018 , respectively, from performance obligations satisfied in previous periods. These amounts represent royalties earned during the period and exclude contracts with nonrefundable prepaid royalties. Nonrefundable prepaid royalties are recognized upon delivery of the IP because Cadence’s right to the consideration is not contingent upon customers’ future shipments.

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	6 Months Ended
	Jun. 29, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND ACQUIRED INTANGIBLES	GOODWILL AND ACQUIRED INTANGIBLES Goodwill The changes in the carrying amount of goodwill during the six months ended June 29, 2019 were as follows: Gross Carrying Amount (In thousands) Balance as of December 29, 2018 $ 662,272 Effect of foreign currency translation 441 Balance as of June 29, 2019 $ 662,713 Acquired Intangibles, Net Acquired intangibles as of June 29, 2019 were as follows, excluding intangibles that were fully amortized as of December 29, 2018 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 363,143 $ (226,643 ) $ 136,500 Agreements and relationships 146,452 (106,822 ) 39,630 Tradenames, trademarks and patents 7,600 (5,390 ) 2,210 Total acquired intangibles with definite lives 517,195 (338,855 ) 178,340 In-process technology 19,500 — 19,500 Total acquired intangibles $ 536,695 $ (338,855 ) $ 197,840 In-process technology as of June 29, 2019 consisted of acquired projects that, if completed, will contribute to Cadence’s design IP offerings. As of June 29, 2019 , these projects were expected to be completed in approximately nine months. During the six months ended June 29, 2019 , Cadence completed certain projects previously included in in-process technology and transferred $52.0 million to existing technology. 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 Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization of acquired intangibles for the three and six months ended June 29, 2019 and June 30, 2018 was as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Cost of product and maintenance $ 11,299 $ 9,991 $ 21,153 $ 20,268 Amortization of acquired intangibles 3,159 3,518 6,467 7,148 Total amortization of acquired intangibles $ 14,458 $ 13,509 $ 27,620 $ 27,416 Estimated amortization expense for acquired intangible assets with definite lives for the following five fiscal years and thereafter is as follows: (In thousands) 2019 – remaining period $ 25,461 2020 49,422 2021 44,758 2022 26,453 2023 13,967 Thereafter 18,279 Total estimated amortization expense $ 178,340

Leases

Leases	6 Months Ended
	Jun. 29, 2019
Leases [Abstract]
Leases [Text Block]	LEASES Lessee Considerations Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. Cadence has operating leases primarily consisting of facilities with remaining lease terms of approximately one year to twelve years . Cadence has options to terminate many of its leases early. The lease term represents the period up to the early termination date unless it is reasonably certain that Cadence will not exercise the early termination option. For certain leases, Cadence has options to extend the lease term for additional periods ranging from one year to ten years . These renewal options are not considered in the remaining lease term unless it is reasonably certain that Cadence will exercise such options. Certain leases include rental payments that are adjusted periodically based on changes in consumer price and other indices. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered into or reassessed after the adoption of Topic 842, Cadence combines the lease and non-lease components in determining the lease liabilities and ROU assets. Activity related to Cadence’s leases was as follows: Three Months Ended Six Months Ended June 29, June 29, (In thousands) Operating lease expense $ 9,638 $ 17,319 Cash paid for amounts included in the measurement of operating lease liabilities 7,946 14,242 ROU assets obtained in exchange for operating lease obligations 16,090 33,595 Cadence’s lease agreements generally do not provide an implicit borrowing rate, therefore an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. Cadence used the incremental borrowing rate on December 29, 2018 for all leases that commenced prior to that date. ROU lease assets and lease liabilities for Cadence’s operating leases were recorded in the condensed consolidated balance sheet as follows: As of June 29, 2019 (In thousands) Other assets $ 108,879 Accounts payable and accrued liabilities $ 27,449 Other long-term liabilities 93,452 Total lease liabilities $ 120,901 Weighted average remaining lease term (in years) 5.3 Weighted average discount rate 4.5 % Future lease payments included in the measurement of lease liabilities on the condensed consolidated balance sheet as of June 29, 2019 , for the following five fiscal years and thereafter were as follows: Operating Leases (In thousands) 2019 – remaining period $ 15,315 2020 30,805 2021 27,267 2022 19,906 2023 14,969 Thereafter 29,620 Total future lease payments 137,882 Less imputed interest (16,981 ) Total $ 120,901 As of June 29, 2019 , Cadence had additional operating lease obligations for a lease with a future effective date of $1.0 million . This operating lease will commence during the third quarter of fiscal 2019 and has a term of five years . As of December 29, 2018 , future minimum lease payments, as defined under the previous lease accounting guidance of ASC Topic 840, 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 Lessor Considerations Although most of Cadence’s revenue from its hardware business comes from sales of hardware, Cadence also leases its hardware products to some customers. Cadence determines the existence of a lease when the customer controls the use of the identified hardware for a period of time defined in the lease agreement. Cadence’s leases range in duration up to four years with payments generally collected in equal quarterly installments. Cadence’s leases do not include termination rights or variable pricing and typically do not include purchase rights at the end of the lease. Short-term leases are usually less than two years and are classified as operating leases with revenue recognized and depreciation expensed on a straight-line basis over the term of the lease. Long-term leases are typically for three to four years and are classified as sales-type leases with revenue and cost of sales recognized upon delivery.

Balance sheet components

Balance sheet components	6 Months Ended
	Jun. 29, 2019
Balance Sheet Components [Abstract]
BALANCE SHEET COMPONENTS	BALANCE SHEET COMPONENTS A summary of certain balance sheet components as of June 29, 2019 and December 29, 2018 is as follows: As of June 29, December 29, (In thousands) Other assets: Deferred income taxes $ 163,085 $ 154,894 Non-marketable investments 1 146,221 118,734 ROU lease assets 2 108,879 — Other long-term assets 94,324 97,603 Other assets $ 512,509 $ 371,231 Other long-term liabilities: Operating lease liabilities 2 $ 93,452 $ — Other long-term accrued liabilities 75,213 77,262 Other long-term liabilities $ 168,665 $ 77,262 _____________ 1 In January 2019, Cadence made an additional minority equity investment in a privately held company and existing equity method investee, for approximately $33.7 million , bringing Cadence’s total ownership to approximately 16% . 2 Cadence adopted Topic 842, the new accounting standard for leasing arrangements on December 30, 2018, the first day of fiscal 2019. For additional information regarding Cadence’s leases, see Note 6 in the notes to condensed consolidated financial statements.

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Jun. 29, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and six months ended June 29, 2019 and June 30, 2018 as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Cost of product and maintenance $ 652 $ 606 $ 1,333 $ 1,196 Cost of services 829 884 1,695 1,747 Marketing and sales 9,509 8,268 18,615 15,882 Research and development 27,659 25,100 54,557 48,335 General and administrative 5,608 6,098 10,310 11,697 Total stock-based compensation expense $ 44,257 $ 40,956 $ 86,510 $ 78,857 Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $252.5 million as of June 29, 2019 , which will be recognized over the remaining vesting period. The remaining weighted-average vesting period of unvested awards is 2.1 years

Stock Repurchase Program

Stock Repurchase Program	6 Months Ended
	Jun. 29, 2019
Class of Stock Disclosures [Abstract]
STOCK REPURCHASE PROGRAM	STOCK REPURCHASE PROGRAM At the end of fiscal 2018, approximately $175 million remained available under Cadence’s previously announced authorization to repurchase shares of its common stock. In February 2019, Cadence’s Board of Directors authorized the repurchase of an additional $500 million . 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 June 29, 2019 , approximately $519 million remained available to repurchase shares of Cadence common stock under current authorizations. The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three and six months ended June 29, 2019 and June 30, 2018 were as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Shares repurchased 1,125 1,224 2,654 2,512 Total cost of repurchased shares $ 75,006 $ 50,012 $ 156,120 $ 100,025

Restructuring and Other Charges

Restructuring and Other Charges	6 Months Ended
	Jun. 29, 2019
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND OTHER CHARGES	RESTRUCTURING AND OTHER CHARGES Cadence has initiated restructuring plans in an effort to better align its resources with its business strategy. These restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions, estimated lease losses related to facilities vacated under the restructuring plans and charges related to assets abandoned as part of the restructuring plans. During the six months ended June 29, 2019 , Cadence revised certain estimates made in connection with its prior restructuring plans and recorded credits of approximately $1.0 million. The following table presents activity relating to Cadence’s restructuring plans during the six months ended June 29, 2019 : Severance and Benefits Excess Facilities Total (In thousands) Balance, December 29, 2018 $ 11,176 $ 848 $ 12,024 Restructuring and other charges (credits) (1,036 ) 34 (1,002 ) Cash payments (9,614 ) (330 ) (9,944 ) Effect of foreign currency translation 35 10 45 Balance, June 29, 2019 $ 561 $ 562 $ 1,123 The remaining liability for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of June 29, 2019 (In thousands) Accounts payable and accrued liabilities $ 891 Other long-term liabilities 232 Total restructuring liabilities $ 1,123 All liabilities for severance and related benefits under Cadence’s restructuring plans are included in accounts payable and accrued liabilities on Cadence’s condensed consolidated balance sheet as of June 29, 2019 . 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.

Net Income per Share

Net Income per Share	6 Months Ended
	Jun. 29, 2019
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NET INCOME PER SHARE Basic net income per share is computed by dividing net income during the period by the weighted-average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting. The calculations for basic and diluted net income per share for the three and six months ended June 29, 2019 and June 30, 2018 are as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands, except per share amounts) Net income $ 107,235 $ 75,149 $ 227,790 $ 148,034 Weighted average common shares used to calculate basic net income per share 273,159 273,564 273,155 273,703 Stock-based awards 7,895 7,210 7,722 7,544 Weighted average common shares used to calculate diluted net income per share 281,054 280,774 280,877 281,247 Net income per share - basic $ 0.39 $ 0.27 $ 0.83 $ 0.54 Net income per share - diluted $ 0.38 $ 0.27 $ 0.81 $ 0.53 The following table presents shares of Cadence’s common stock outstanding for the three and six months ended June 29, 2019 and June 30, 2018 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Long-term performance-based stock awards 1,386 — 807 75 Options to purchase shares of common stock 596 701 419 559 Non-vested shares of restricted stock 29 818 76 549 Total potential common shares excluded 2,011 1,519 1,302 1,183

Fair Value

Fair Value	6 Months Ended
	Jun. 29, 2019
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. 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 Cadence’s debt arrangements, see Note 2 in the notes to condensed consolidated financial statements. This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the six months ended June 29, 2019 . On a quarterly basis, Cadence measures at fair value certain financial assets and liabilities. The fair value of financial assets was determined using the following levels of inputs as of June 29, 2019 and December 29, 2018 : Fair Value Measurements as of June 29, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 382,960 $ 382,960 $ — $ — Marketable equity securities 3,615 3,615 — — Securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 29,967 29,967 — — Foreign currency exchange contracts 808 — 808 — Total Assets $ 417,350 $ 416,542 $ 808 $ — As of June 29, 2019, Cadence did not have any financial liabilities requiring a recurring fair value measurement. 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.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 29, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and lawsuits related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, distribution arrangements and employee relations matters. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates. Other Contingencies Cadence provides its customers with a warranty on sales of its hardware products, generally for a 90 -day period. Cadence did not incur any significant costs related to warranty obligations during the three and six months ended June 29, 2019 and June 30, 2018 . Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s intellectual property. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. The indemnification is generally limited to the amount paid by the customer. Cadence did not incur any significant losses from indemnification claims during the three and six months ended June 29, 2019 and June 30, 2018 .

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 29, 2019
Accumulated 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 condensed consolidated statements of comprehensive income. Accumulated other comprehensive loss was comprised of the following as of June 29, 2019 and December 29, 2018 : As of June 29, December 29, (In thousands) Foreign currency translation loss $ (21,453 ) $ (20,861 ) Changes in defined benefit plan liabilities (6,544 ) (3,919 ) Total accumulated other comprehensive loss $ (27,997 ) $ (24,780 ) For the three and six months ended June 29, 2019 and June 30, 2018 there were no significant amounts reclassified from accumulated other comprehensive loss to net income.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 29, 2019
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING Segment reporting is based on the “management approach,” following the method that management organizes the company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. Cadence’s chief operating decision maker is its CEO, who reviews Cadence’s consolidated results as one operating segment. In making operating decisions, the CEO primarily considers consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Outside the United States, Cadence markets and supports its products and services primarily through its subsidiaries. Revenue is attributed to geography based upon the country in which the product is used or services are delivered. Long-lived assets are attributed to geography based on the country where the assets are located. The following table presents a summary of revenue by geography for the three and six months ended June 29, 2019 and June 30, 2018 : Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Americas: United States $ 234,490 $ 230,673 $ 477,738 $ 455,476 Other Americas 12,025 7,682 20,431 15,349 Total Americas 246,515 238,355 498,169 470,825 Asia: China 68,379 40,619 127,356 85,913 Other Asia 109,425 93,780 220,772 188,433 Total Asia 177,804 134,399 348,128 274,346 Europe, Middle East and Africa 113,829 105,673 217,291 210,380 Japan 42,271 39,964 93,573 80,153 Total $ 580,419 $ 518,391 $ 1,157,161 $ 1,035,704 The following table presents a summary of long-lived assets by geography as of June 29, 2019 and December 29, 2018 : As of June 29, December 29, (In thousands) Americas: United States $ 202,695 $ 200,025 Other Americas 843 475 Total Americas 203,538 200,500 Asia: China 15,593 9,608 Other Asia 27,550 30,021 Total Asia 43,143 39,629 Europe, Middle East and Africa 10,547 11,784 Japan 654 717 Total $ 257,882 $ 252,630

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	Use of Estimates Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Comparability	Comparability Effective the first day of fiscal 2019, Cadence adopted multiple new accounting standards. Prior periods were not retrospectively restated, so the condensed consolidated balance sheet as of June 29, 2019 was prepared using accounting standards that were different than those in effect as of December 29, 2018 . Therefore, the condensed consolidated balance sheets as of June 29, 2019 and December 29, 2018 are not directly comparable.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) 2016-02, “Leases (Topic 842)” (“Topic 842”), which requires the recognition of right-of-use assets and lease liabilities on the balance sheet. The most prominent of the changes in the standard is the recognition of right-of-use (“ROU”) assets and lease liabilities by lessees for those leases classified as operating leases. Cadence adopted the new standard on December 30, 2018, the first day of fiscal 2019, and used the modified retrospective approach with the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. Cadence elected certain practical expedients, which among other things, allowed us to carry forward prior conclusions about lease identification and classification. Adoption of the standard resulted in the balance sheet recognition of additional lease assets and lease liabilities of approximately $80 million ; however, the adoption of the standard did not have an impact on Cadence’s beginning retained earnings, results from operations or cash flows. Additionally, the new standard did not have a material impact on the condensed consolidated financial statements for arrangements in which Cadence is the lessor. For additional information regarding Cadence’s leases, see Note 6 in the notes to condensed consolidated financial statements. Income Tax Effects within Accumulated Other Comprehensive income In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification of the income tax effects of the U.S. Tax Cuts and Jobs Act (the “Tax Act”) on items within accumulated other comprehensive income to retained earnings. This standard became effective for Cadence on December 30, 2018, the first day of fiscal 2019. The adoption of this standard did not have a material impact on Cadence’s condensed consolidated financial statements.
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.
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. 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 Cadence’s debt arrangements, see Note 2 in the notes to condensed consolidated financial statements. This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the six months ended June 29, 2019 .
Leases of Lessee	Leases with an initial term of twelve months or less are not recorded on the balance sheet.

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 29, 2019
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of June 29, 2019 and December 29, 2018 was as follows: June 29, 2019 December 29, 2018 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ 100,000 $ — $ 100,000 2024 Notes 350,000 (4,348 ) 345,652 350,000 (4,709 ) 345,291 Total outstanding debt $ 350,000 $ (4,348 ) $ 345,652 $ 450,000 $ (4,709 ) $ 445,291

Receivables, net (Tables)

Receivables, net (Tables)	6 Months Ended
	Jun. 29, 2019
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of June 29, 2019 and December 29, 2018 were as follows: As of June 29, December 29, (In thousands) Accounts receivable $ 130,796 $ 164,223 Unbilled accounts receivable 107,962 136,795 Long-term receivables 2,140 5,972 Total receivables 240,898 306,990 Less allowance for doubtful accounts (1,149 ) (3,936 ) Total receivables, net $ 239,749 $ 303,054

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 29, 2019
Revenue from Contract with Customer [Abstract]
Revenue from external customers by product group	The following table shows the percentage of product and related maintenance revenue contributed by each of Cadence’s five product categories and services for the three and six months ended June 29, 2019 and June 30, 2018 : Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Functional Verification, including Emulation and Prototyping Hardware 1 22 % 23 % 23 % 25 % Digital IC Design and Signoff 31 % 30 % 31 % 29 % Custom IC Design and Simulation 26 % 26 % 26 % 26 % System Interconnect and Analysis 10 % 9 % 9 % 9 % IP 11 % 12 % 11 % 11 % Total 100 % 100 % 100 % 100 %
Contract Balances	Cadence’s contract balances as of June 29, 2019 and December 29, 2018 were as follows: As of June 29, December 29, (In thousands) Contract assets $ 10,501 $ 10,055 Deferred revenue 420,872 401,174

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangibles (Tables)	6 Months Ended
	Jun. 29, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during the six months ended June 29, 2019 were as follows: Gross Carrying Amount (In thousands) Balance as of December 29, 2018 $ 662,272 Effect of foreign currency translation 441 Balance as of June 29, 2019 $ 662,713
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of June 29, 2019 were as follows, excluding intangibles that were fully amortized as of December 29, 2018 : Gross Carrying Amount Accumulated Amortization Acquired Intangibles, Net (In thousands) Existing technology $ 363,143 $ (226,643 ) $ 136,500 Agreements and relationships 146,452 (106,822 ) 39,630 Tradenames, trademarks and patents 7,600 (5,390 ) 2,210 Total acquired intangibles with definite lives 517,195 (338,855 ) 178,340 In-process technology 19,500 — 19,500 Total acquired intangibles $ 536,695 $ (338,855 ) $ 197,840 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
Amortization of acquired intangibles	Amortization of acquired intangibles for the three and six months ended June 29, 2019 and June 30, 2018 was as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Cost of product and maintenance $ 11,299 $ 9,991 $ 21,153 $ 20,268 Amortization of acquired intangibles 3,159 3,518 6,467 7,148 Total amortization of acquired intangibles $ 14,458 $ 13,509 $ 27,620 $ 27,416
Estimated amortization expense	Estimated amortization expense for acquired intangible assets with definite lives for the following five fiscal years and thereafter is as follows: (In thousands) 2019 – remaining period $ 25,461 2020 49,422 2021 44,758 2022 26,453 2023 13,967 Thereafter 18,279 Total estimated amortization expense $ 178,340

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 29, 2019
Leases [Abstract]
Lease, Cost	Activity related to Cadence’s leases was as follows: Three Months Ended Six Months Ended June 29, June 29, (In thousands) Operating lease expense $ 9,638 $ 17,319 Cash paid for amounts included in the measurement of operating lease liabilities 7,946 14,242 ROU assets obtained in exchange for operating lease obligations 16,090 33,595
Schedule Of Supplemental Balance Sheet Information Related To Leases [Table Text Block]	ROU lease assets and lease liabilities for Cadence’s operating leases were recorded in the condensed consolidated balance sheet as follows: As of June 29, 2019 (In thousands) Other assets $ 108,879 Accounts payable and accrued liabilities $ 27,449 Other long-term liabilities 93,452 Total lease liabilities $ 120,901 Weighted average remaining lease term (in years) 5.3 Weighted average discount rate 4.5 %
Lessee, Operating Lease, Liability, Maturity	Future lease payments included in the measurement of lease liabilities on the condensed consolidated balance sheet as of June 29, 2019 , for the following five fiscal years and thereafter were as follows: Operating Leases (In thousands) 2019 – remaining period $ 15,315 2020 30,805 2021 27,267 2022 19,906 2023 14,969 Thereafter 29,620 Total future lease payments 137,882 Less imputed interest (16,981 ) Total $ 120,901
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	As of December 29, 2018 , future minimum lease payments, as defined under the previous lease accounting guidance of ASC Topic 840, 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

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 29, 2019
Balance Sheet Components [Abstract]
Summary of certain balance sheet components	A summary of certain balance sheet components as of June 29, 2019 and December 29, 2018 is as follows: As of June 29, December 29, (In thousands) Other assets: Deferred income taxes $ 163,085 $ 154,894 Non-marketable investments 1 146,221 118,734 ROU lease assets 2 108,879 — Other long-term assets 94,324 97,603 Other assets $ 512,509 $ 371,231 Other long-term liabilities: Operating lease liabilities 2 $ 93,452 $ — Other long-term accrued liabilities 75,213 77,262 Other long-term liabilities $ 168,665 $ 77,262 _____________ 1 In January 2019, Cadence made an additional minority equity investment in a privately held company and existing equity method investee, for approximately $33.7 million , bringing Cadence’s total ownership to approximately 16% . 2 Cadence adopted Topic 842, the new accounting standard for leasing arrangements on December 30, 2018, the first day of fiscal 2019. For additional information regarding Cadence’s leases, see Note 6 in the notes to condensed consolidated financial statements.

Stock Based Compensation (Table

Stock Based Compensation (Tables)	6 Months Ended
	Jun. 29, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense and allocation by cost [Table Text Block]	Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and six months ended June 29, 2019 and June 30, 2018 as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Cost of product and maintenance $ 652 $ 606 $ 1,333 $ 1,196 Cost of services 829 884 1,695 1,747 Marketing and sales 9,509 8,268 18,615 15,882 Research and development 27,659 25,100 54,557 48,335 General and administrative 5,608 6,098 10,310 11,697 Total stock-based compensation expense $ 44,257 $ 40,956 $ 86,510 $ 78,857

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	6 Months Ended
	Jun. 29, 2019
Class of Stock Disclosures [Abstract]
Shares repurchased and the total cost of shares repurchased	The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three and six months ended June 29, 2019 and June 30, 2018 were as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Shares repurchased 1,125 1,224 2,654 2,512 Total cost of repurchased shares $ 75,006 $ 50,012 $ 156,120 $ 100,025

Restructuring and Other Charg_2

Restructuring and Other Charges (Tables)	6 Months Ended
	Jun. 29, 2019
Restructuring and Related Activities [Abstract]
Restructuring reserve rollforward by major type of cost	The following table presents activity relating to Cadence’s restructuring plans during the six months ended June 29, 2019 : Severance and Benefits Excess Facilities Total (In thousands) Balance, December 29, 2018 $ 11,176 $ 848 $ 12,024 Restructuring and other charges (credits) (1,036 ) 34 (1,002 ) Cash payments (9,614 ) (330 ) (9,944 ) Effect of foreign currency translation 35 10 45 Balance, June 29, 2019 $ 561 $ 562 $ 1,123
Schedule of restructuring reserve by balance sheet classification	The remaining liability for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of June 29, 2019 (In thousands) Accounts payable and accrued liabilities $ 891 Other long-term liabilities 232 Total restructuring liabilities $ 1,123 All liabilities for severance and related benefits under Cadence’s restructuring plans are included in accounts payable and accrued liabilities on Cadence’s condensed consolidated balance sheet as of June 29, 2019 . 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.

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 29, 2019
Earnings Per Share [Abstract]
Basic and diluted net income per share	The calculations for basic and diluted net income per share for the three and six months ended June 29, 2019 and June 30, 2018 are as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands, except per share amounts) Net income $ 107,235 $ 75,149 $ 227,790 $ 148,034 Weighted average common shares used to calculate basic net income per share 273,159 273,564 273,155 273,703 Stock-based awards 7,895 7,210 7,722 7,544 Weighted average common shares used to calculate diluted net income per share 281,054 280,774 280,877 281,247 Net income per share - basic $ 0.39 $ 0.27 $ 0.83 $ 0.54 Net income per share - diluted $ 0.38 $ 0.27 $ 0.81 $ 0.53
Potential shares of Cadence's common stock excluded	The following table presents shares of Cadence’s common stock outstanding for the three and six months ended June 29, 2019 and June 30, 2018 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Long-term performance-based stock awards 1,386 — 807 75 Options to purchase shares of common stock 596 701 419 559 Non-vested shares of restricted stock 29 818 76 549 Total potential common shares excluded 2,011 1,519 1,302 1,183

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Jun. 29, 2019
Fair Value Disclosures [Abstract]
Fair value of financial assets and liabilities	The fair value of financial assets was determined using the following levels of inputs as of June 29, 2019 and December 29, 2018 : Fair Value Measurements as of June 29, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 382,960 $ 382,960 $ — $ — Marketable equity securities 3,615 3,615 — — Securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 29,967 29,967 — — Foreign currency exchange contracts 808 — 808 — Total Assets $ 417,350 $ 416,542 $ 808 $ — As of June 29, 2019, Cadence did not have any financial liabilities requiring a recurring fair value measurement. 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.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 29, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated other comprehensive loss, net of tax	Accumulated other comprehensive loss was comprised of the following as of June 29, 2019 and December 29, 2018 : As of June 29, December 29, (In thousands) Foreign currency translation loss $ (21,453 ) $ (20,861 ) Changes in defined benefit plan liabilities (6,544 ) (3,919 ) Total accumulated other comprehensive loss $ (27,997 ) $ (24,780 )

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 29, 2019
Segment Reporting [Abstract]
Summary of revenue by geography	The following table presents a summary of revenue by geography for the three and six months ended June 29, 2019 and June 30, 2018 : Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, (In thousands) Americas: United States $ 234,490 $ 230,673 $ 477,738 $ 455,476 Other Americas 12,025 7,682 20,431 15,349 Total Americas 246,515 238,355 498,169 470,825 Asia: China 68,379 40,619 127,356 85,913 Other Asia 109,425 93,780 220,772 188,433 Total Asia 177,804 134,399 348,128 274,346 Europe, Middle East and Africa 113,829 105,673 217,291 210,380 Japan 42,271 39,964 93,573 80,153 Total $ 580,419 $ 518,391 $ 1,157,161 $ 1,035,704
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of June 29, 2019 and December 29, 2018 : As of June 29, December 29, (In thousands) Americas: United States $ 202,695 $ 200,025 Other Americas 843 475 Total Americas 203,538 200,500 Asia: China 15,593 9,608 Other Asia 27,550 30,021 Total Asia 43,143 39,629 Europe, Middle East and Africa 10,547 11,784 Japan 654 717 Total $ 257,882 $ 252,630

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies New Accounting Standards (Details) - USD ($) $ in Thousands	Jun. 29, 2019		Dec. 30, 2018	Dec. 29, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use asset	$ 108,879	[1]		$ 0
Operating lease liability	$ 120,901
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use asset			$ 80,000
Operating lease liability			$ 80,000
[1]	Cadence adopted Topic 842, the new accounting standard for leasing arrangements on December 30, 2018, the first day of fiscal 2019. For additional information regarding Cadence’s leases, see Note 6 in the notes to condensed consolidated financial statements.

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018	Oct. 09, 2014
Debt Instrument [Line Items]
Principal	$ 350,000	$ 450,000
Unamortized Discount	(4,348)	(4,709)
Carrying Value	0	100,000
Carrying Value	345,652	345,291
Carrying Value	345,652	445,291
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Principal	350,000	350,000	$ 350,000
Unamortized Discount	(4,348)	(4,709)	$ (1,400)
Carrying Value	345,652	345,291
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Principal	0	100,000
Carrying Value	$ 0	$ 100,000

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual) $ in Millions	6 Months Ended
	Jun. 29, 2019USD ($)
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, current borrowing capacity	$ 350
Credit facility additional borrowing capacity available	250
Credit facility, maximum borrowing capacity	$ 600
Credit facility, maturity date	Jan. 28, 2022
Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage	0.15%
Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage	0.30%
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	1.25%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	1.875%
Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	0.25%
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread	0.875%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, debt to EBITDA ratio	3
Credit facility, covenant, debt to EBITDA ratio after step up triggered by acquisition	3.50
Credit facility, covenant, required business acquisition consideration, minimum	$ 250
Revolving Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, pro forma leverage ratio	2.75
Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, pro forma leverage ratio	3.25

Debt (Details Textual)

Debt (Details Textual) - USD ($)	Oct. 09, 2014	Jun. 29, 2019	Dec. 29, 2018
Debt Instrument [Line Items]
Unamortized discount		$ 4,348,000	$ 4,709,000
Document Period End Date		Jun. 29, 2019
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Aggregate principal amount, issued	$ 350,000,000	$ 350,000,000	350,000,000
Stated interest rate of Senior Notes	4.375%
Proceeds from Senior Notes, net	$ 342,400,000
Unamortized discount	1,400,000	4,348,000	$ 4,709,000
Debt issuance costs	$ 6,200,000
Fair value of notes payable		$ 372,400

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Current and long-term receivables balances
Accounts receivable	$ 130,796	$ 164,223
Unbilled accounts receivable	107,962	136,795
Long-term receivables	2,140	5,972
Total receivables	240,898	306,990
Less allowance for doubtful accounts	(1,149)	(3,936)
Total receivables, net	$ 239,749	$ 303,054

Receivables, net (Details Textu

Receivables, net (Details Textual) - Customer	Jun. 29, 2019	Dec. 29, 2018
Accounts Receivable and Allowances for Doubtful Accounts (Textual) [Abstract]
Number of customers with receivables balance greater than ten percent of total balance	0	1
Percentage of receivables, net attributable to single customer	10.00%	11.00%

Revenue (Details Textuals)

Revenue (Details Textuals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue recognized from deferred revenue during the period	$ 88.1	$ 67.7	$ 246	$ 210.3
Unsatisfied performance obligations	$ 2,800		$ 2,800
Percent of remaining performance obligations, current	60.00%		60.00%
Revenue recognized from satisfaction of performance obligations	$ 8.2	$ 8.3	$ 16.7	$ 14.5

Revenue (Details)

Revenue (Details)	3 Months Ended			6 Months Ended
	Jun. 29, 2019		Jun. 30, 2018	Jun. 29, 2019		Jun. 30, 2018
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	100.00%		100.00%	100.00%		100.00%
Functional Verification, including Emulation and Prototyping Hardware [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	22.00%	[1]	23.00%	23.00%	[1]	25.00%
Digital IC Design and Signoff [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	31.00%		30.00%	31.00%		29.00%
Custom IC Design and Simulation [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	26.00%		26.00%	26.00%		26.00%
System Interconnect and Analysis [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	10.00%		9.00%	9.00%		9.00%
IP [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	11.00%		12.00%	11.00%		11.00%
[1]	Includes immaterial amount of revenue accounted for under Topic 842.

Revenue (Details 1)

Revenue (Details 1) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Revenue from Contract with Customer [Abstract]
Contract assets	$ 10,501	$ 10,055
Deferred revenue	$ 420,872	$ 401,174

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangibles (Details Textual) $ in Millions	6 Months Ended
	Jun. 29, 2019USD ($)
Existing Technology [Member]
Finite-Lived Intangible Assets [Line Items]
In-process research and development transfered to existing technology during period	$ 52

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangibles (Details) $ in Thousands	6 Months Ended
	Jun. 29, 2019USD ($)
Changes in the carrying amount of goodwill
Balance at beginning of period	$ 662,272
Effect of foreign currency translation	441
Balance at end of period	$ 662,713

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 517,195	$ 487,644
Accumulated amortization	(338,855)	(333,687)
Acquired intangibles, net	178,340	153,957
In-process technology	19,500	71,500
Intangible Assets, Gross (Excluding Goodwill)	536,695	559,144
Intangible Assets, Net (Excluding Goodwill)	197,840	225,457
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	363,143	330,500
Accumulated amortization	(226,643)	(225,383)
Acquired intangibles, net	136,500	105,117
Agreements and Relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	146,452	146,426
Accumulated amortization	(106,822)	(100,211)
Acquired intangibles, net	39,630	46,215
Tradenames Trademarks And Patents [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	7,600	10,718
Accumulated amortization	(5,390)	(8,093)
Acquired intangibles, net	$ 2,210	$ 2,625

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Amortization of acquired intangibles
Cost of product and maintenance	$ 11,299	$ 9,991	$ 21,153	$ 20,268
Amortization of acquired intangibles	3,159	3,518	6,467	7,148
Total amortization of acquired intangibles	$ 14,458	$ 13,509	$ 27,620	$ 27,416

Goodwill and Acquired Intangi_7

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Estimated amortization expense
2019 – remaining period	$ 25,461
2020	49,422
2021	44,758
2022	26,453
2023	13,967
Thereafter	18,279
Acquired intangibles, net	$ 178,340	$ 153,957

Leases (Details Textual)

Leases (Details Textual) $ in Millions	6 Months Ended
	Jun. 29, 2019USD ($)
Lessee, Lease, Description [Line Items]
Unrecorded unconditional purchase obligation	$ 1
Operating lease, weighted average remaining lease term	5 years 3 months 18 days
Unrecorded Unconditional Purchase Obligation, Term	5 years
Minimum [Member]
Lessee, Lease, Description [Line Items]
Operating lease, weighted average remaining lease term	1 year
Lessee, Operating Lease, Lease Not yet Commenced, Renewal Term	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Operating lease, weighted average remaining lease term	12 years
Lessee, Operating Lease, Lease Not yet Commenced, Renewal Term	10 years

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 29, 2019	Jun. 29, 2019
Leases [Abstract]
Operating lease expense	$ 9,638	$ 17,319
Cash paid for amounts included in the measurement of operating lease liabilities	7,946	14,242
ROU assets obtained in exchange for operating lease obligations	$ 16,090	$ 33,595

Leases (Details 1)

Leases (Details 1) - USD ($) $ in Thousands	Jun. 29, 2019		Dec. 29, 2018
Leases [Abstract]
ROU lease assets	$ 108,879	[1]	$ 0
Operating lease liabilities, current	27,449
Operating lease liabilities, non-current	93,452	[1]	$ 0
Total lease liabilities	$ 120,901
Operating leases, weighted average remaining lease term	5 years 3 months 18 days
Operating lease, weighted average discount rate	4.50%
[1]	Cadence adopted Topic 842, the new accounting standard for leasing arrangements on December 30, 2018, the first day of fiscal 2019. For additional information regarding Cadence’s leases, see Note 6 in the notes to condensed consolidated financial statements.

Leases (Details 2)

Leases (Details 2) $ in Thousands	Jun. 29, 2019USD ($)
Leases [Abstract]
2019 – remaining period	$ 15,315
2020	30,805
2021	27,267
2022	19,906
2023	14,969
Thereafter	29,620
Total future lease payments	137,882
Less imputed interest	(16,981)
Total operating lease liability	$ 120,901

Leases (Details 3)

Leases (Details 3) $ in Thousands	Dec. 29, 2018USD ($)
Leases [Abstract]
2019	$ 26,252
2020	23,130
2021	19,778
2022	14,243
2023	11,510
Thereafter	17,100
Total lease payments	$ 112,013

Balance Sheet Components (Detai

Balance Sheet Components (Details) - USD ($) $ in Thousands	Jun. 29, 2019		Dec. 29, 2018
Other assets:
Deferred income taxes	$ 163,085		$ 154,894
Non-marketable investments	146,221	[1]	118,734
ROU lease assets	108,879	[2]	0
Other long-term assets	94,324		97,603
Other assets	512,509		371,231
Other long-term liabilities:
Operating lease liabilities	93,452	[2]	0
Other long-term accrued liabilities	75,213		77,262
Other long-term liabilities	$ 168,665		$ 77,262
[1]	In January 2019, Cadence made an additional minority equity investment in a privately held company and existing equity method investee, for approximately $33.7 million , bringing Cadence’s total ownership to approximately 16% .
[2]	Cadence adopted Topic 842, the new accounting standard for leasing arrangements on December 30, 2018, the first day of fiscal 2019. For additional information regarding Cadence’s leases, see Note 6 in the notes to condensed consolidated financial statements.

Balance Sheet Components (Det_2

Balance Sheet Components (Details Textual) $ in Millions	6 Months Ended
	Jun. 29, 2019USD ($)
Balance Sheet Components [Abstract]
Payments to acquire equity method investments	$ 33.7
Equity method investment, ownership percentage	16.00%

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 44,257	$ 40,956	$ 86,510	$ 78,857
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	652	606	1,333	1,196
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	829	884	1,695	1,747
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	9,509	8,268	18,615	15,882
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	27,659	25,100	54,557	48,335
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Share-based Compensation	$ 5,608	$ 6,098	$ 10,310	$ 11,697

Stock Based Compensation (Det_2

Stock Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	6 Months Ended
	Jun. 29, 2019USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 252.5
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years 1 month 6 days

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 29, 2019	Mar. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 29, 2019	Jun. 30, 2018	Dec. 29, 2018
Class of Stock Disclosures [Abstract]
Remaining authorized repurchase amount	$ 519,000				$ 519,000		$ 175,000
Additional authorized repurchase amount					$ 500,000
Shares repurchased	1,125		1,224		2,654	2,512
Total cost of repurchased shares	$ 75,006	$ 81,114	$ 50,012	$ 50,013	$ 156,120	$ 100,025

Restructuring and Other Charg_3

Restructuring and Other Charges (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring and other charges (credits)	$ 313	$ 447	$ 1,002	$ 2,438

Restructuring and Other Charg_4

Restructuring and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Restructuring Cost and Reserve [Line Items]
Beginning balance			$ 12,024
Restructuring and other charges (credits)	$ (313)	$ (447)	(1,002)	$ (2,438)
Cash payments			(9,944)
Effect of foreign currency translation			45
Ending balance	1,123		1,123
Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			11,176
Restructuring and other charges (credits)			(1,036)
Cash payments			(9,614)
Effect of foreign currency translation			35
Ending balance	561		561
Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			848
Restructuring and other charges (credits)			34
Cash payments			(330)
Effect of foreign currency translation			10
Ending balance	$ 562		$ 562

Restructuring and Other Charg_5

Restructuring and Other Charges (Details 1) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 1,123	$ 12,024
Accounts Payable and Accrued Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	891
Other Long Term Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 232

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 29, 2019	Mar. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 29, 2019	Jun. 30, 2018
Earnings Per Share, Basic and Diluted [Abstract]
Net Income	$ 107,235	$ 120,555	$ 75,149	$ 72,885	$ 227,790	$ 148,034
Weighted average common shares used to calculate basic net income per share	273,159		273,564		273,155	273,703
Stock-based awards	7,895		7,210		7,722	7,544
Weighted average common shares used to calculate diluted net income per share	281,054		280,774		280,877	281,247
Net income per share - basic	$ 0.39		$ 0.27		$ 0.83	$ 0.54
Net income per share - diluted	$ 0.38		$ 0.27		$ 0.81	$ 0.53

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	2,011	1,519	1,302	1,183
Long-term performance-based stock awards
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	1,386	0	807	75
Options to purchase shares of common stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	596	701	419	559
Non-vested shares of restricted stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	29	818	76	549

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Short-term investments:
Marketable equity securities	$ 3,615	$ 3,887
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	29,967	27,767
Foreign currency exchange contracts	808	101
Total Assets	417,350	359,596
Money market funds [Member]
Assets
Cash equivalents	382,960	327,841
Fair Value Measurements, Level 1 [Member]
Short-term investments:
Marketable equity securities	3,615	3,887
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	29,967	27,767
Foreign currency exchange contracts	0	0
Total Assets	416,542	359,495
Fair Value Measurements, Level 1 [Member] | Money market funds [Member]
Assets
Cash equivalents	382,960	327,841
Fair Value Measurements, Level 2 [Member]
Short-term investments:
Marketable equity securities	0	0
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	0	0
Foreign currency exchange contracts	808	101
Total Assets	808	101
Fair Value Measurements, Level 2 [Member] | Money market funds [Member]
Assets
Cash equivalents	0	0
Fair Value Measurements, Level 3 [Member]
Short-term investments:
Marketable equity securities	0	0
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	0	0
Foreign currency exchange contracts	0	0
Total Assets	0	0
Fair Value Measurements, Level 3 [Member] | Money market funds [Member]
Assets
Cash equivalents	$ 0	$ 0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation loss	$ (21,453)	$ (20,861)
Changes in defined benefit plan liabilities	(6,544)	(3,919)
Total accumulated other comprehensive loss	$ (27,997)	$ (24,780)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Total revenue	$ 580,419	$ 518,391	$ 1,157,161	$ 1,035,704
United States [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	234,490	230,673	477,738	455,476
Other Americas [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	12,025	7,682	20,431	15,349
Americas [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	246,515	238,355	498,169	470,825
China [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	68,379	40,619	127,356	85,913
Other Asia [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	109,425	93,780	220,772	188,433
Asia [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	177,804	134,399	348,128	274,346
EMEA [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	113,829	105,673	217,291	210,380
Japan [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	$ 42,271	$ 39,964	$ 93,573	$ 80,153

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Summary of long-lived assets by geography
Total long-lived assets	$ 257,882	$ 252,630
United States [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	202,695	200,025
Other Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	843	475
Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	203,538	200,500
China [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	15,593	9,608
Other Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	27,550	30,021
Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	43,143	39,629
EMEA [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	10,547	11,784
Japan [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	$ 654	$ 717