Cadence Design Systems (CDNS) 10-Q 25 Oct 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page	9 Months Ended
	Oct. 02, 2021shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 2, 2021
Document Transition Report	false
Entity File Number	000-15867
Entity Registrant Name	CADENCE DESIGN SYSTEMS, INC.
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 Address, Postal Zip Code	95134
City Area Code	(408)
Local Phone Number	943-1234
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	CDNS
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding	277,141,000
Entity Central Index Key	0000813672
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--01-01

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 1,013,819	$ 928,432
Receivables, net	327,191	338,487
Inventories	101,575	75,956
Prepaid expenses and other	100,428	135,712
Total current assets	1,543,013	1,478,587
Property, plant and equipment, net	303,313	311,125
Goodwill	925,949	782,087
Acquired intangibles, net	247,628	210,590
Deferred taxes	766,036	732,290
Other assets	427,936	436,106
Total assets	4,213,875	3,950,785
Current liabilities:
Accounts payable and accrued liabilities	363,835	349,951
Current portion of deferred revenue	543,361	446,857
Total current liabilities	907,196	796,808
Long-term liabilities:
Long-term portion of deferred revenue	95,991	107,064
Long-term debt	347,385	346,793
Other long-term liabilities	232,041	207,102
Total long-term liabilities	675,417	660,959
Commitments and contingencies
Stockholders’ equity:
Common stock and capital in excess of par value	2,411,791	2,217,939
Treasury stock, at cost	(2,622,675)	(2,057,829)
Retained earnings	2,869,709	2,350,333
Accumulated other comprehensive loss	(27,563)	(17,425)
Total stockholders’ equity	2,631,262	2,493,018
Total liabilities and stockholders’ equity	$ 4,213,875	$ 3,950,785

Condensed Consolidated Income S

Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Revenues [Abstract]
Revenues	$ 750,895	$ 666,607	$ 2,215,208	$ 1,922,982
Costs and Expenses:
Marketing and sales	143,401	123,738	412,194	369,958
Research and development	289,105	250,934	845,324	743,423
General and administrative	42,990	35,928	123,275	105,161
Amortization of acquired intangibles	5,000	4,438	14,661	13,234
Restructuring and other charges (credits)	(222)	13	(968)	(1,329)
Total costs and expenses	556,861	497,335	1,631,799	1,462,409
Income from operations	194,034	169,272	583,409	460,573
Interest expense	(4,196)	(5,325)	(12,729)	(15,876)
Other income (expenses), net	(1,143)	1,766	3,701	1,862
Income before provision for income taxes	188,695	165,713	574,381	446,559
Provision for income taxes	12,388	4,083	55,005	29,653
Net income	$ 176,307	$ 161,630	$ 519,376	$ 416,906
Net income per share - basic (usd per share)	$ 0.65	$ 0.59	$ 1.90	$ 1.52
Net Income per share - diluted (usd per share)	$ 0.63	$ 0.58	$ 1.86	$ 1.49
Weighted average common shares outstanding - basic (in shares)	273,194	273,996	273,636	273,633
Weighted average common shares outstanding - diluted (in shares)	278,311	280,024	279,046	279,455
Product and maintenance [Member]
Revenues [Abstract]
Revenues	$ 706,160	$ 630,329	$ 2,093,098	$ 1,813,384
Costs and Expenses:
Cost of sales	54,185	64,800	174,933	175,915
Service [Member]
Revenues [Abstract]
Revenues	44,735	36,278	122,110	109,598
Costs and Expenses:
Cost of sales	$ 22,402	$ 17,484	$ 62,380	$ 56,047

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 176,307	$ 161,630	$ 519,376	$ 416,906
Other comprehensive income (loss), net of tax effects:
Foreign currency translation adjustments	(5,483)	11,539	(9,618)	3,029
Changes in defined benefit plan liabilities	(288)	(142)	(520)	277
Total other comprehensive income (loss), net of tax effects	(5,771)	11,397	(10,138)	3,306
Comprehensive income	$ 170,536	$ 173,027	$ 509,238	$ 420,212

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Common Stock, Par Value and Capital in Excess of Par	Treasury Stock	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 28, 2019	$ 2,102,894		$ 2,046,237	$ (1,668,105)	$ 1,761,688	$ (1,999)	$ (36,926)
Beginning balance, shares at Dec. 28, 2019		279,855
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	416,906				416,906
Other comprehensive loss, net of taxes	$ 3,306						3,306
Purchase of treasury stock, shares	(3,124)	(3,124)
Purchase of treasury stock	$ (250,047)			(250,047)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		3,049
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	71,450		15,086	56,364
Stock received for payment of employee taxes on vesting of restricted stock, shares		(849)
Stock received for payment of employee taxes on vesting of restricted stock	(85,515)		(13,196)	(72,319)
Stock-based compensation expense	138,723		138,723
Ending balance at Sep. 26, 2020	2,395,718		2,186,850	(1,934,107)	2,176,595		(33,620)
Ending balance, shares at Sep. 26, 2020		278,931
Beginning balance at Jun. 27, 2020	2,256,631		2,143,016	(1,856,333)	2,014,965		(45,017)
Beginning balance, shares at Jun. 27, 2020		278,794
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	161,630				161,630
Other comprehensive loss, net of taxes	$ 11,397						11,397
Purchase of treasury stock, shares	(717)	(717)
Purchase of treasury stock	$ (75,011)			(75,011)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		1,093
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	27,595		4,328	23,267
Stock received for payment of employee taxes on vesting of restricted stock, shares		(239)
Stock received for payment of employee taxes on vesting of restricted stock	(31,858)		(5,828)	(26,030)
Stock-based compensation expense	45,334		45,334
Ending balance at Sep. 26, 2020	2,395,718		2,186,850	(1,934,107)	2,176,595		(33,620)
Ending balance, shares at Sep. 26, 2020		278,931
Beginning balance at Jan. 02, 2021	2,493,018		2,217,939	(2,057,829)	2,350,333		(17,425)
Beginning balance, shares at Jan. 02, 2021		278,941
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	519,376				519,376
Other comprehensive loss, net of taxes	$ (10,138)						(10,138)
Purchase of treasury stock, shares	(3,766)	(3,766)
Purchase of treasury stock	$ (502,301)			(502,301)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		2,640
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	83,632		52,236	31,396
Stock received for payment of employee taxes on vesting of restricted stock, shares		(674)
Stock received for payment of employee taxes on vesting of restricted stock	(108,185)		(14,244)	(93,941)
Stock-based compensation expense	155,860		155,860
Ending balance at Oct. 02, 2021	2,631,262		2,411,791	(2,622,675)	2,869,709		(27,563)
Ending balance, shares at Oct. 02, 2021		277,141
Beginning balance at Jul. 03, 2021	2,516,743		2,354,801	(2,509,668)	2,693,402		(21,792)
Beginning balance, shares at Jul. 03, 2021		276,780
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	176,307				176,307
Other comprehensive loss, net of taxes	$ (5,771)						(5,771)
Purchase of treasury stock, shares	(723)	(723)
Purchase of treasury stock	$ (110,011)			(110,011)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		1,249
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	31,380		9,319	22,061
Stock received for payment of employee taxes on vesting of restricted stock, shares		(165)
Stock received for payment of employee taxes on vesting of restricted stock	(30,132)		(5,075)	(25,057)
Stock-based compensation expense	52,746		52,746
Ending balance at Oct. 02, 2021	$ 2,631,262		$ 2,411,791	$ (2,622,675)	$ 2,869,709		$ (27,563)
Ending balance, shares at Oct. 02, 2021		277,141

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020
Statement of Cash Flows [Abstract]
Cash and Cash Equivalents, at Carrying Value	$ 1,013,819	$ 1,306,564
Cash flows from operating activities:
Net income	519,376	416,906
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	106,962	107,019
Amortization of debt discount and fees	952	770
Stock-based compensation	155,860	138,723
(Gain) loss on investments, net	(330)	5,118
Deferred income taxes	(34,566)	(18,966)
Provisions for losses on receivables	234	1,087
ROU asset amortization and change in operating lease liabilities	(2,917)	2,064
Other non-cash items	146	410
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	15,132	9,945
Inventories	(25,608)	6,376
Prepaid expenses and other	36,632	22,769
Other assets	8,127	(21,287)
Accounts payable and accrued liabilities	10,501	(30,455)
Deferred revenue	84,183	124,491
Other long-term liabilities	10,417	4,430
Net cash provided by operating activities	885,101	769,400
Cash flows from investing activities:
Proceeds from the sale of non-marketable investments	128	0
Purchases of property, plant and equipment	(49,977)	(63,745)
Cash paid in business combinations, net of cash acquired	(220,026)	(197,562)
Net cash used for investing activities	(269,875)	(261,307)
Cash flows from financing activities:
Proceeds from revolving credit facility	0	350,000
Payment of debt issuance costs	(1,285)	0
Proceeds from issuance of common stock	83,632	71,451
Stock received for payment of employee taxes on vesting of restricted stock	(108,185)	(85,515)
Payments for repurchases of common stock	(502,301)	(250,047)
Net cash provided by (used for) financing activities	(528,139)	85,889
Effect of exchange rate changes on cash and cash equivalents	(1,700)	7,372
Increase in cash and cash equivalents	85,387	601,354
Supplemental cash flow information:
Cash paid for interest	8,117	10,982
Cash paid for taxes, net	$ 47,687	$ 44,679

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Oct. 02, 2021
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 January 2, 2021. 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 period 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. Due to the ongoing COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. Cadence is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of October 25, 2021, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. Recently Adopted Accounting Standards Accounting for Income Taxes In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes, eliminates certain exceptions within Accounting Standards Codification 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. Cadence adopted the standard on January 3, 2021, the first day of fiscal 2021. The adoption of this standard did not impact Cadence’s condensed consolidated financial statements for the period ended October 2, 2021.

Debt

Debt	9 Months Ended
	Oct. 02, 2021
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of October 2, 2021 and January 2, 2021 was as follows: October 2, 2021 January 2, 2021 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ — $ — $ — 2024 Notes 350,000 (2,615) 347,385 350,000 (3,207) 346,793 Total outstanding debt $ 350,000 $ (2,615) $ 347,385 $ 350,000 $ (3,207) $ 346,793 Revolving Credit Facility In June 2021, Cadence terminated its existing revolving credit facility, dated January 30, 2017, and entered into a five-year senior unsecured revolving credit facility with a group of lenders led by Bank of America, N.A., as administrative agent (the “2021 Credit Facility”). The 2021 Credit Facility provides for borrowings up to $700.0 million, with the right to request increased capacity up to an additional $350.0 million upon the receipt of lender commitments, for total maximum borrowings of $1.05 billion. The 2021 Credit Facility expires on June 30, 2026. Any outstanding loans drawn under such credit facility are due at maturity on June 30, 2026, subject to an option to extend the maturity date. Outstanding borrowings may be repaid at any time prior to maturity. Debt issuance costs of $1.3 million were recorded to other assets in Cadence’s condensed consolidated balance sheet at the inception of the agreement and are being amortized to interest expense over the term of the 2021 Credit Facility. Interest accrues on borrowings under the 2021 Credit Facility at a rate equal to, at Cadence’s option, either (1) LIBOR plus a margin between 0.750% and 1.250% per annum, determined by reference to the credit rating of Cadence’s unsecured debt, or (2) the base rate plus a margin between 0.000% and 0.250% per annum, determined by reference to the credit rating of Cadence’s unsecured debt. Interest is payable quarterly. A commitment fee ranging from 0.070% to 0.175% is assessed on the daily average undrawn portion of revolving commitments. The 2021 Credit Facility also includes provisions addressing the potential transition from LIBOR to a new replacement benchmark. The 2021 Credit Facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness and grant liens. In addition, the 2021 Credit Facility contains financial covenants that require Cadence to maintain a funded debt to EBITDA ratio not greater than 3.25 to 1, with a step up to 3.75 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 3.00 to 1 and 3.50 to 1. As of October 2, 2021, Cadence was in compliance with all financial covenants associated with the 2021 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 $382.7 million as of October 2, 2021. 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	9 Months Ended
	Oct. 02, 2021
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of October 2, 2021 and January 2, 2021 were as follows: As of October 2, January 2, (In thousands) Accounts receivable $ 184,298 $ 196,990 Unbilled accounts receivable 146,550 144,364 Long-term receivables 3,832 3,655 Total receivables 334,680 345,009 Less allowance for doubtful accounts (3,657) (2,867) Total receivables, net $ 331,023 $ 342,142

Revenue

Revenue	9 Months Ended
	Oct. 02, 2021
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Cadence groups 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 nine months ended October 2, 2021 and September 26, 2020: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Custom Integrated Circuit (“IC”) Design and Simulation 23 % 24 % 23 % 25 % Digital IC Design and Signoff 29 % 27 % 28 % 28 % Functional Verification, including Emulation and Prototyping Hardware* 23 % 23 % 25 % 23 % Intellectual Property (“IP”) 14 % 15 % 13 % 14 % System Design and Analysis 11 % 11 % 11 % 10 % Total 100 % 100 % 100 % 100 % _____________ * Includes immaterial amount of revenue accounted for under leasing arrangements. Cadence generates revenue from contracts with customers and applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. 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 categories based upon the expected usage of products. Revenue by product category fluctuates from period to period based on demand for products and services, and Cadence’s available resources to deliver them. 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. The accounting for contracts with multiple performance obligations requires the contract’s transaction price to be allocated to each distinct performance obligation based on relative standalone selling price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation because Cadence rarely licenses or sells products on a standalone basis. 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 included in 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 the balance sheet date 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 October 2, 2021 and January 2, 2021 were as follows: As of October 2, January 2, (In thousands) Contract assets $ 7,834 $ 9,709 Deferred revenue 639,352 553,921 Cadence recognized revenue of $59.8 million and $389.8 million during the three and nine months ended October 2, 2021, and $50.5 million and $292.1 million during the three and nine months ended September 26, 2020, 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. 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. Some customers enter into a non-cancellable IP Access Agreement (“IPAA”) whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of IP products or services. These arrangements do not meet the definition of a revenue contract until the customer executes a separate selection form to identify the products and services that they are purchasing. Each separate selection form under the IPAA is treated as an individual contract and accounted for based on the respective performance obligations. Remaining Performance Obligations 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 potential future royalty receipts from the remaining performance obligations. Contracted but unsatisfied performance obligations were approximately $3.7 billion as of October 2, 2021, which included $89.1 million of non-cancellable IPAA commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date. As of October 2, 2021, Cadence expected to recognize approximately 55% of the contracted but unsatisfied performance obligations, excluding non-cancellable IPAA commitments, as revenue over the next 12 months and the remainder thereafter. Cadence recognized revenue of $13.3 million and $35.0 million during the three and nine months ended October 2, 2021, and $18.1 million and $38.9 million during the three and nine months ended September 26, 2020, 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.

Acquisitions

Acquisitions	9 Months Ended
	Oct. 02, 2021
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS On February 23, 2021, Cadence acquired all of the outstanding equity of Belgium-based Numerical Mechanics Applications International SA (“NUMECA”). The addition of NUMECA’s technologies and talent supports Cadence’s Intelligent System Design™ strategy, servicing the computational fluid dynamics (“CFD”) market segment as part of System Design and Analysis. The aggregate cash consideration for Cadence’s acquisition of NUMECA, net of cash acquired of $9.6 million, was $188.6 million. Cadence expects to recognize expense for consideration paid to certain former NUMECA shareholders that is subject to service and other conditions, through the first quarter of fiscal 2023. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates as follows: Acquisition Date Fair Value (In thousands) Current assets $ 16,423 Goodwill 132,693 Acquired intangibles 72,200 Other long-term assets 6,928 Total assets acquired 228,244 Current liabilities 9,951 Long-term liabilities 20,091 Total liabilities assumed 30,042 Total purchase consideration $ 198,202 During the three months ended October 2, 2021, Cadence finalized certain estimates impacting total purchase consideration for NUMECA and recorded the resulting measurement period adjustment which decreased goodwill by $0.6 million. Cadence will continue to evaluate certain estimates and assumptions related to tax liabilities assumed from NUMECA during the remainder of the measurement period (up to one year from the acquisition date). The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce and expected synergies from combining operations of NUMECA with Cadence. Cadence expects all of the goodwill related to the acquisition of NUMECA to be deductible for tax purposes. On April 14, 2021, Cadence acquired all of the outstanding equity of Pointwise, Inc. (“Pointwise”), a leader in mesh generation for CFD for cash consideration of approximately $31.4 million, net of cash acquired. The addition of Pointwise’s technologies and experienced team supports Cadence’s Intelligent System Design™ strategy and further broadens its System Design and Analysis portfolio, complementing its acquisition of NUMECA. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates. Cadence recorded $16.7 million of definite-lived intangible assets and $16.7 million of goodwill with its acquisition of Pointwise. All of the goodwill related to Cadence’s acquisition of Pointwise will be deductible for tax purposes. Definite-lived intangible assets acquired with Cadence’s fiscal 2021 acquisitions were as follows: Acquisition Date Fair Value Weighted Average Amortization Period (In thousands) (in years) Existing technology $ 55,400 14.2 years Agreements and relationships 28,900 13.7 years Tradenames, trademarks and patents 4,600 14.3 years Total acquired intangibles with definite lives $ 88,900 14.1 years Cadence has not presented pro forma financial information for its fiscal 2021 acquisitions because the results of operations for the acquired businesses are not material to Cadence’s condensed consolidated financial statements. During the three and nine months ended October 2, 2021, and the three and nine months ended September 26, 2020, transaction costs associated with acquisitions were not material and were expensed as incurred.

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	9 Months Ended
	Oct. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND ACQUIRED INTANGIBLES	GOODWILL AND ACQUIRED INTANGIBLES Goodwill The changes in the carrying amount of goodwill during the nine months ended October 2, 2021 were as follows: Gross Carrying (In thousands) Balance as of January 2, 2021 $ 782,087 Goodwill resulting from acquisitions 150,021 Measurement period adjustments (633) Effect of foreign currency translation (5,526) Balance as of October 2, 2021 $ 925,949 Measurement period adjustments are the result of new information obtained about assets or liabilities that existed as of the acquisition date and, if known, would have resulted in changes to the initial recognition of those assets or liabilities as of that date. During the three months ended October 2, 2021, Cadence finalized certain estimates impacting total purchase consideration for its acquisition of NUMECA and recorded the resulting measurement period adjustment which decreased goodwill. Acquired Intangibles, Net Acquired intangibles as of October 2, 2021 were as follows, excluding intangibles that were fully amortized as of January 2, 2021: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 402,640 $ (242,829) $ 159,811 Agreements and relationships 205,454 (125,436) 80,018 Tradenames, trademarks and patents 10,741 (2,942) 7,799 Total acquired intangibles with definite lives $ 618,835 $ (371,207) $ 247,628 Acquired intangibles as of January 2, 2021 were as follows, excluding intangibles that were fully amortized as of December 28, 2019: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 370,838 $ (230,654) $ 140,184 Agreements and relationships 180,023 (113,629) 66,394 Tradenames, trademarks and patents 10,590 (6,578) 4,012 Total acquired intangibles with definite lives $ 561,451 $ (350,861) $ 210,590 Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization expense for the three and nine months ended October 2, 2021 and September 26, 2020 by condensed consolidated income statement caption was as follows: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Cost of product and maintenance $ 11,774 $ 11,447 $ 35,774 $ 33,791 Amortization of acquired intangibles 5,000 4,438 14,661 13,234 Total amortization of acquired intangibles $ 16,774 $ 15,885 $ 50,435 $ 47,025 As of October 2, 2021, the estimated amortization expense for acquired intangible assets with definite lives was as follows for the following five fiscal years and thereafter: (In thousands) 2021 - remaining period $ 16,724 2022 50,022 2023 34,492 2024 32,732 2025 22,092 2026 17,087 Thereafter 74,479 Total estimated amortization expense $ 247,628

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Oct. 02, 2021
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and nine months ended October 2, 2021 and September 26, 2020 as follows: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Cost of product and maintenance $ 885 $ 668 $ 2,601 $ 2,042 Cost of services 1,158 850 3,177 2,599 Marketing and sales 10,784 9,699 32,284 29,826 Research and development 32,957 28,652 97,101 87,688 General and administrative 6,962 5,465 20,697 16,568 Total stock-based compensation expense $ 52,746 $ 45,334 $ 155,860 $ 138,723

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Oct. 02, 2021
Class of Stock Disclosures [Abstract]
STOCK REPURCHASE PROGRAM	STOCK REPURCHASE PROGRAM As of the end of the second quarter of fiscal 2021, approximately $346 million remained available under Cadence’s previously announced authorization to repurchase shares of Cadence common stock. In August 2021, Cadence’s Board of Directors increased the prior authorization to repurchase shares of Cadence common stock by authorizing an additional $1 billion. 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 October 2, 2021, approximately $1.2 billion of the share repurchase authorization remained available to repurchase shares of Cadence common stock. The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three and nine months ended October 2, 2021 and September 26, 2020 were as follows: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Shares repurchased 723 717 3,766 3,124 Total cost of repurchased shares $ 110,011 $ 75,011 $ 502,301 $ 250,047

Restructuring and Other Termina

Restructuring and Other Termination Benefits	9 Months Ended
	Oct. 02, 2021
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND OTHER CHARGES	RESTRUCTURING AND OTHER TERMINATION BENEFITS Restructuring Cadence has initiated restructuring plans in an effort to better align its resources with its business strategy. The charges associated with these restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions and charges related to impacted facilities and are included in restructuring and other charges on Cadence’s condensed consolidated income statements. The following table presents activity for Cadence’s restructuring plans during the nine months ended October 2, 2021: Severance and Benefits Facilities Total (In thousands) Balance, January 2, 2021 $ 7,321 $ 1,372 $ 8,693 Restructuring and other credits (1,379) 411 (968) Cash payments (5,715) (1,596) (7,311) Effect of foreign currency translation (67) — (67) Balance, October 2, 2021 $ 160 $ 187 $ 347 The remaining liability for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows: As of October 2, 2021 (In thousands) Accounts payable and accrued liabilities $ 340 Other long-term liabilities 7 Total restructuring liabilities $ 347 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 sheets as of October 2, 2021. Restructuring liabilities included in other long-term liabilities represent liabilities from impacted facilities, and Cadence expects to make cash payments to settle these liabilities through fiscal 2022. Other Termination Benefits During the second quarter of fiscal 2021, Cadence offered a voluntary retirement program to eligible employees in the United States. This program resulted in a one-time charge of $26.8 million for voluntary termination and post-employment benefits. These charges are included in each category of costs and expenses on Cadence’s condensed consolidated income statements. As of October 2, 2021, liabilities related to the voluntary retirement program were $21.5 million and were included in accounts payable and accrued liabilities and other long-term liabilities on Cadence’s condensed consolidated balance sheet. Cadence expects to make cash payments to settle these liabilities through fiscal 2023, including $20.5 million that is expected to be paid within the next twelve months.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Oct. 02, 2021
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NET INCOME PER SHARE Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting. The calculations for basic and diluted net income per share for the three and nine months ended October 2, 2021 and September 26, 2020 are as follows: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands, except per share amounts) Net income $ 176,307 $ 161,630 $ 519,376 $ 416,906 Weighted average common shares used to calculate basic net income per share 273,194 273,996 273,636 273,633 Stock-based awards 5,117 6,028 5,410 5,822 Weighted average common shares used to calculate diluted net income per share 278,311 280,024 279,046 279,455 Net income per share - basic $ 0.65 $ 0.59 $ 1.90 $ 1.52 Net income per share - diluted $ 0.63 $ 0.58 $ 1.86 $ 1.49 The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended October 2, 2021 and September 26, 2020 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Long-term market-based awards — 105 — 510 Options to purchase shares of common stock 331 23 267 258 Non-vested shares of restricted stock 5 21 46 75 Total potential common shares excluded 336 149 313 843

Fair Value

Fair Value	9 Months Ended
	Oct. 02, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1 – Quoted prices for identical instruments in active markets; • Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the nine months ended October 2, 2021. On a quarterly basis, Cadence measures at fair value certain financial assets and liabilities. The fair value of financial assets and liabilities was determined using the following levels of inputs as of October 2, 2021 and January 2, 2021: Fair Value Measurements as of October 2, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 384,958 $ 384,958 $ — $ — Marketable equity securities 5,568 5,568 — — Securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 51,653 51,653 — — Total Assets $ 442,179 $ 442,179 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 2,831 $ — $ 2,831 $ — Total Liabilities $ 2,831 $ — $ 2,831 $ — Fair Value Measurements as of January 2, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 541,386 $ 541,386 $ — $ — Marketable equity securities 4,452 4,452 — — Securities held in NQDC trust 42,769 42,769 — — Foreign currency exchange contracts 8,868 — 8,868 — Total Assets $ 597,475 $ 588,607 $ 8,868 $ — As of January 2, 2021, Cadence did not have any financial liabilities requiring a recurring fair value measurement. Level 1 Measurements Cadence’s cash equivalents held in money market funds, marketable equity securities and the trading securities held in Cadence’s NQDC trust are measured at fair value using level 1 inputs. Level 2 Measurements The valuation techniques used to determine the fair value of Cadence’s foreign currency forward exchange contracts and 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. Level 3 Measurements Cadence acquired intangible assets of $88.9 million with its acquisition of NUMECA and Pointwise during fiscal 2021. The fair value of the definite-lived intangible assets acquired with these acquisitions was determined using variations of the income approach and level 3 inputs. For acquired existing technology, the fair value was determined by applying the relief-from-royalty method. This method is based on the application of a royalty rate to forecasted revenue to quantify the benefit of owning the intangible asset rather than paying a royalty for use of the asset. To estimate royalty savings over time, Cadence projected revenue from the acquired existing technology over the estimated remaining life of the technology, including the effect of assumed technological obsolescence, before applying an assumed royalty rate. For NUMECA, Cadence assumed technological obsolescence at a rate of 6.7% annually, before applying an assumed royalty rate of 22%. For Pointwise, Cadence assumed technological obsolescence at a rate of 10.0% annually, before applying an assumed royalty rate of 25%. The fair value for acquired agreements and relationships was determined by using the multi-period excess earnings method. This method reflects the present value of the projected cash flows that are expected to be generated from existing customers, less charges representing the contribution of other assets to those cash flows. Projected income from existing customer relationships considered a customer retention rate of 95% for both NUMECA and Pointwise. The present value of operating cash flows from existing customers was determined using discount rates ranging from 10.5% to 12.0%. Cadence believes that its estimates and assumptions related to the fair value of its acquired intangible assets are reasonable, but significant judgment is involved.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 02, 2021
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 hardware products, generally for a 90-day period. Cadence did not incur any significant costs related to warranty obligations during the three and nine months ended October 2, 2021 and September 26, 2020. Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s intellectual property. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. The indemnification is generally limited to the amount paid by the customer. Cadence did not incur any significant losses from indemnification claims during the three and nine months ended October 2, 2021 and September 26, 2020.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Oct. 02, 2021
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 October 2, 2021 and January 2, 2021: As of October 2, January 2, (In thousands) Foreign currency translation loss $ (20,748) $ (11,130) Changes in defined benefit plan liabilities (6,815) (6,295) Total accumulated other comprehensive loss $ (27,563) $ (17,425) For the three and nine months ended October 2, 2021 and September 26, 2020 there were no significant amounts related to foreign currency translation loss or changes in defined benefit plan liabilities reclassified from accumulated other comprehensive loss to net income.

Segment Reporting

Segment Reporting	9 Months Ended
	Oct. 02, 2021
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING Segment reporting is based on the “management approach,” following the method that management organizes the company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. Cadence’s chief operating decision maker is its CEO, who reviews Cadence’s consolidated results as one operating segment. In making operating decisions, the CEO primarily considers consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Outside the United States, Cadence markets and supports its products and services primarily through its subsidiaries. Revenue is attributed to geography based upon the country in which the product is used, or services are delivered. Long-lived assets are attributed to geography based on the country where the assets are located. The following table presents a summary of revenue by geography for the three and nine months ended October 2, 2021 and September 26, 2020: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Americas: United States $ 331,463 $ 269,057 $ 970,925 $ 794,545 Other Americas 11,487 10,956 31,353 29,913 Total Americas 342,950 280,013 1,002,278 824,458 Asia: China 98,325 114,160 287,357 275,191 Other Asia 136,272 123,188 404,509 354,063 Total Asia 234,597 237,348 691,866 629,254 Europe, Middle East and Africa 129,606 107,913 384,341 340,173 Japan 43,742 41,333 136,723 129,097 Total $ 750,895 $ 666,607 $ 2,215,208 $ 1,922,982 The following table presents a summary of long-lived assets by geography as of October 2, 2021 and January 2, 2021: As of October 2, January 2, (In thousands) Americas: United States $ 239,200 $ 248,292 Other Americas 616 753 Total Americas 239,816 249,045 Asia: China 15,601 16,416 Other Asia 31,159 28,668 Total Asia 46,760 45,084 Europe, Middle East and Africa 16,245 16,304 Japan 492 692 Total $ 303,313 $ 311,125

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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.
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.
Recently adopted accounting standards	In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes, eliminates certain exceptions within Accounting Standards Codification 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. Cadence adopted the standard on January 3, 2021, the first day of fiscal 2021. The adoption of this standard did not impact Cadence’s condensed consolidated financial statements for the period ended October 2, 2021.
Fair value of financial instruments	Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1 – Quoted prices for identical instruments in active markets; • Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the nine months ended October 2, 2021.
Contingencies	At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates.

Debt (Tables)

Debt (Tables)	9 Months Ended
	Oct. 02, 2021
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of October 2, 2021 and January 2, 2021 was as follows: October 2, 2021 January 2, 2021 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ — $ — $ — 2024 Notes 350,000 (2,615) 347,385 350,000 (3,207) 346,793 Total outstanding debt $ 350,000 $ (2,615) $ 347,385 $ 350,000 $ (3,207) $ 346,793

Receivables, net (Tables)

Receivables, net (Tables)	9 Months Ended
	Oct. 02, 2021
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of October 2, 2021 and January 2, 2021 were as follows: As of October 2, January 2, (In thousands) Accounts receivable $ 184,298 $ 196,990 Unbilled accounts receivable 146,550 144,364 Long-term receivables 3,832 3,655 Total receivables 334,680 345,009 Less allowance for doubtful accounts (3,657) (2,867) Total receivables, net $ 331,023 $ 342,142

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Oct. 02, 2021
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 nine months ended October 2, 2021 and September 26, 2020: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Custom Integrated Circuit (“IC”) Design and Simulation 23 % 24 % 23 % 25 % Digital IC Design and Signoff 29 % 27 % 28 % 28 % Functional Verification, including Emulation and Prototyping Hardware* 23 % 23 % 25 % 23 % Intellectual Property (“IP”) 14 % 15 % 13 % 14 % System Design and Analysis 11 % 11 % 11 % 10 % Total 100 % 100 % 100 % 100 % _____________ * Includes immaterial amount of revenue accounted for under leasing arrangements.
Contract balances	Cadence’s contract balances as of October 2, 2021 and January 2, 2021 were as follows: As of October 2, January 2, (In thousands) Contract assets $ 7,834 $ 9,709 Deferred revenue 639,352 553,921

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Oct. 02, 2021
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates as follows: Acquisition Date Fair Value (In thousands) Current assets $ 16,423 Goodwill 132,693 Acquired intangibles 72,200 Other long-term assets 6,928 Total assets acquired 228,244 Current liabilities 9,951 Long-term liabilities 20,091 Total liabilities assumed 30,042 Total purchase consideration $ 198,202
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination	Acquisition Date Fair Value Weighted Average Amortization Period (In thousands) (in years) Existing technology $ 55,400 14.2 years Agreements and relationships 28,900 13.7 years Tradenames, trademarks and patents 4,600 14.3 years Total acquired intangibles with definite lives $ 88,900 14.1 years

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangibles (Tables)	9 Months Ended
	Oct. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during the nine months ended October 2, 2021 were as follows: Gross Carrying (In thousands) Balance as of January 2, 2021 $ 782,087 Goodwill resulting from acquisitions 150,021 Measurement period adjustments (633) Effect of foreign currency translation (5,526) Balance as of October 2, 2021 $ 925,949
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of October 2, 2021 were as follows, excluding intangibles that were fully amortized as of January 2, 2021: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 402,640 $ (242,829) $ 159,811 Agreements and relationships 205,454 (125,436) 80,018 Tradenames, trademarks and patents 10,741 (2,942) 7,799 Total acquired intangibles with definite lives $ 618,835 $ (371,207) $ 247,628 Acquired intangibles as of January 2, 2021 were as follows, excluding intangibles that were fully amortized as of December 28, 2019: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 370,838 $ (230,654) $ 140,184 Agreements and relationships 180,023 (113,629) 66,394 Tradenames, trademarks and patents 10,590 (6,578) 4,012 Total acquired intangibles with definite lives $ 561,451 $ (350,861) $ 210,590
Amortization of acquired intangibles	Amortization expense for the three and nine months ended October 2, 2021 and September 26, 2020 by condensed consolidated income statement caption was as follows: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Cost of product and maintenance $ 11,774 $ 11,447 $ 35,774 $ 33,791 Amortization of acquired intangibles 5,000 4,438 14,661 13,234 Total amortization of acquired intangibles $ 16,774 $ 15,885 $ 50,435 $ 47,025
Estimated amortization expense	As of October 2, 2021, the estimated amortization expense for acquired intangible assets with definite lives was as follows for the following five fiscal years and thereafter: (In thousands) 2021 - remaining period $ 16,724 2022 50,022 2023 34,492 2024 32,732 2025 22,092 2026 17,087 Thereafter 74,479 Total estimated amortization expense $ 247,628

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Oct. 02, 2021
Share-based Payment Arrangement [Abstract]
Stock-based compensation expense and allocation by cost	Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and nine months ended October 2, 2021 and September 26, 2020 as follows: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Cost of product and maintenance $ 885 $ 668 $ 2,601 $ 2,042 Cost of services 1,158 850 3,177 2,599 Marketing and sales 10,784 9,699 32,284 29,826 Research and development 32,957 28,652 97,101 87,688 General and administrative 6,962 5,465 20,697 16,568 Total stock-based compensation expense $ 52,746 $ 45,334 $ 155,860 $ 138,723

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	9 Months Ended
	Oct. 02, 2021
Class of Stock Disclosures [Abstract]
Shares repurchased and the total cost of shares repurchased	The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three and nine months ended October 2, 2021 and September 26, 2020 were as follows: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Shares repurchased 723 717 3,766 3,124 Total cost of repurchased shares $ 110,011 $ 75,011 $ 502,301 $ 250,047

Restructuring and Other Termi_2

Restructuring and Other Termination Benefits (Tables)	9 Months Ended
	Oct. 02, 2021
Restructuring and Related Activities [Abstract]
Restructuring reserve rollforward by major type of cost	The following table presents activity for Cadence’s restructuring plans during the nine months ended October 2, 2021: Severance and Benefits Facilities Total (In thousands) Balance, January 2, 2021 $ 7,321 $ 1,372 $ 8,693 Restructuring and other credits (1,379) 411 (968) Cash payments (5,715) (1,596) (7,311) Effect of foreign currency translation (67) — (67) Balance, October 2, 2021 $ 160 $ 187 $ 347
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 October 2, 2021 (In thousands) Accounts payable and accrued liabilities $ 340 Other long-term liabilities 7 Total restructuring liabilities $ 347

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Oct. 02, 2021
Earnings Per Share [Abstract]
Basic and diluted net income per share	The calculations for basic and diluted net income per share for the three and nine months ended October 2, 2021 and September 26, 2020 are as follows: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands, except per share amounts) Net income $ 176,307 $ 161,630 $ 519,376 $ 416,906 Weighted average common shares used to calculate basic net income per share 273,194 273,996 273,636 273,633 Stock-based awards 5,117 6,028 5,410 5,822 Weighted average common shares used to calculate diluted net income per share 278,311 280,024 279,046 279,455 Net income per share - basic $ 0.65 $ 0.59 $ 1.90 $ 1.52 Net income per share - diluted $ 0.63 $ 0.58 $ 1.86 $ 1.49
Potential shares of Cadence's common stock excluded	The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended October 2, 2021 and September 26, 2020 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Long-term market-based awards — 105 — 510 Options to purchase shares of common stock 331 23 267 258 Non-vested shares of restricted stock 5 21 46 75 Total potential common shares excluded 336 149 313 843

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Oct. 02, 2021
Fair Value Disclosures [Abstract]
Fair value of financial assets and liabilities	The fair value of financial assets and liabilities was determined using the following levels of inputs as of October 2, 2021 and January 2, 2021: Fair Value Measurements as of October 2, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 384,958 $ 384,958 $ — $ — Marketable equity securities 5,568 5,568 — — Securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 51,653 51,653 — — Total Assets $ 442,179 $ 442,179 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 2,831 $ — $ 2,831 $ — Total Liabilities $ 2,831 $ — $ 2,831 $ — Fair Value Measurements as of January 2, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 541,386 $ 541,386 $ — $ — Marketable equity securities 4,452 4,452 — — Securities held in NQDC trust 42,769 42,769 — — Foreign currency exchange contracts 8,868 — 8,868 — Total Assets $ 597,475 $ 588,607 $ 8,868 $ — As of January 2, 2021, Cadence did not have any financial liabilities requiring a recurring fair value measurement.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Oct. 02, 2021
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 October 2, 2021 and January 2, 2021: As of October 2, January 2, (In thousands) Foreign currency translation loss $ (20,748) $ (11,130) Changes in defined benefit plan liabilities (6,815) (6,295) Total accumulated other comprehensive loss $ (27,563) $ (17,425)

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Oct. 02, 2021
Segment Reporting [Abstract]
Summary of revenue by geography	The following table presents a summary of revenue by geography for the three and nine months ended October 2, 2021 and September 26, 2020: Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, (In thousands) Americas: United States $ 331,463 $ 269,057 $ 970,925 $ 794,545 Other Americas 11,487 10,956 31,353 29,913 Total Americas 342,950 280,013 1,002,278 824,458 Asia: China 98,325 114,160 287,357 275,191 Other Asia 136,272 123,188 404,509 354,063 Total Asia 234,597 237,348 691,866 629,254 Europe, Middle East and Africa 129,606 107,913 384,341 340,173 Japan 43,742 41,333 136,723 129,097 Total $ 750,895 $ 666,607 $ 2,215,208 $ 1,922,982
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of October 2, 2021 and January 2, 2021: As of October 2, January 2, (In thousands) Americas: United States $ 239,200 $ 248,292 Other Americas 616 753 Total Americas 239,816 249,045 Asia: China 15,601 16,416 Other Asia 31,159 28,668 Total Asia 46,760 45,084 Europe, Middle East and Africa 16,245 16,304 Japan 492 692 Total $ 303,313 $ 311,125

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021	Oct. 09, 2014
Debt Instrument [Line Items]
Principal	$ 350,000	$ 350,000
Unamortized Discount	(2,615)	(3,207)
Carrying Value	347,385	346,793
Carrying Value	347,385	346,793
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Principal	350,000	350,000	$ 350,000
Unamortized Discount	(2,615)	(3,207)	$ (1,400)
Carrying Value	347,385	346,793
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Principal	0	0
Carrying Value	$ 0	$ 0

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 02, 2021	Oct. 02, 2021	Sep. 26, 2020
Line of Credit Facility [Line Items]
Payments of Debt Issuance Costs		$ 1,285	$ 0
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, current borrowing capacity	$ 700,000	700,000
Credit facility additional borrowing capacity available	350,000	350,000
Credit facility, maximum borrowing capacity	1,050,000	$ 1,050,000
Credit facility, maturity date		Jun. 30, 2026
Payments of Debt Issuance Costs	1,300
Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage		0.07%
Credit facility, covenant, pro forma leverage ratio		3
Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage		0.175%
Credit facility, covenant, pro forma leverage ratio		3.50
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread		0.75%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread		1.25%
Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread		0.00%
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread		0.25%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, debt to EBITDA ratio		3.25
Credit facility, covenant, debt to EBITDA ratio after step up triggered by acquisition		3.75
Credit facility, covenant, required business acquisition consideration, minimum	$ 250,000	$ 250,000

Debt (Details Textual)

Debt (Details Textual) - USD ($) $ in Thousands	Oct. 09, 2014	Oct. 02, 2021	Jan. 02, 2021
Debt Instrument [Line Items]
Unamortized discount		$ 2,615	$ 3,207
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Aggregate principal amount, issued	$ 350,000	350,000	350,000
Stated interest rate of Senior Notes	4.375%
Proceeds from Senior Notes, net	$ 342,400
Unamortized discount	1,400	2,615	$ 3,207
Debt issuance costs	$ 6,200
Fair value, notes payable		$ 382,700

Receivables, net (Details Textu

Receivables, net (Details Textual) - Customer	Oct. 02, 2021	Jan. 02, 2021
Receivables [Abstract]
Number of customers with receivables balance greater than ten percent of total balance	1	0
Percentage of receivables, net attributable to single customer	13.00%	10.00%

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Current and long-term receivables balances
Accounts receivable	$ 184,298	$ 196,990
Unbilled accounts receivable	146,550	144,364
Long-term receivables	3,832	3,655
Total receivables	334,680	345,009
Less allowance for doubtful accounts	(3,657)	(2,867)
Total receivables, net	$ 331,023	$ 342,142

Revenue (Details)

Revenue (Details)	3 Months Ended			9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020		Oct. 02, 2021		Sep. 26, 2020
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	100.00%	100.00%		100.00%		100.00%
Custom Integrated Circuit (“IC”) Design and Simulation
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	23.00%	24.00%		23.00%		25.00%
Digital IC Design and Signoff
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	29.00%	27.00%		28.00%		28.00%
Functional Verification, including Emulation and Prototyping Hardware*
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	23.00%	23.00%	[1]	25.00%	[1]	23.00%	[1]
Intellectual Property (“IP”)
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	14.00%	15.00%		13.00%		14.00%
System Design and Analysis
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	11.00%	11.00%		11.00%		10.00%
[1]	Includes immaterial amount of revenue accounted for under leasing arrangements.

Revenue (Details 1)

Revenue (Details 1) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 7,834	$ 9,709
Deferred revenue	$ 639,352	$ 553,921

Revenue (Details Textual)

Revenue (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Revenue from Contract with Customer [Abstract]
Revenue recognized from deferred revenue during the period	$ 59.8	$ 50.5	$ 389.8	$ 292.1
Remaining performance obligations	3,700		3,700
Non-cancellable IP access agreements included in remaining performance obligations	$ 89.1		$ 89.1
Percent of remaining performance obligations, current	55.00%		55.00%
Revenue recognized from satisfaction of performance obligations	$ 13.3	$ 18.1	$ 35	$ 38.9

Acquisitions (Details Textual)

Acquisitions (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Apr. 14, 2021	Feb. 23, 2021	Jan. 02, 2021
Business Acquisition [Line Items]
Cash consideration to acquire businesses, net of cash acquired	$ 220,026	$ 197,562
Goodwill	925,949				$ 782,087
Goodwill, measurement period adjustment	(633)
NUMECA
Business Acquisition [Line Items]
Cash acquired				$ 9,600
Cash consideration to acquire businesses, net of cash acquired	188,600
Acquired intangibles				72,200
Goodwill				$ 132,693
Pointwise
Business Acquisition [Line Items]
Cash consideration to acquire businesses, net of cash acquired	$ 31,400
Acquired intangibles			$ 16,700
Goodwill			$ 16,700

Acquisitions (Details 1)

Acquisitions (Details 1) - USD ($) $ in Thousands	Oct. 02, 2021	Feb. 23, 2021	Jan. 02, 2021
Business Acquisition [Line Items]
Goodwill	$ 925,949		$ 782,087
NUMECA
Business Acquisition [Line Items]
Current assets		$ 16,423
Goodwill		132,693
Acquired intangibles		72,200
Other long-term assets		6,928
Total assets acquired		228,244
Current liabilities		9,951
Long-term liabilities		20,091
Total liabilities assumed		30,042
Total purchase consideration		$ 198,202

Acquisitions (Details 2)

Acquisitions (Details 2) - Fiscal 2021 Acquisitions $ in Thousands	9 Months Ended
	Oct. 02, 2021USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 88,900
Weighted-average useful life of definite-lived intangible assets acquired	14 years 1 month 6 days
Existing Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 55,400
Weighted-average useful life of definite-lived intangible assets acquired	14 years 2 months 12 days
Agreements and Relationship [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 28,900
Weighted-average useful life of definite-lived intangible assets acquired	13 years 8 months 12 days
Tradename Trademark and Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 4,600
Weighted-average useful life of definite-lived intangible assets acquired	14 years 3 months 18 days

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangibles (Details) $ in Thousands	9 Months Ended
	Oct. 02, 2021USD ($)
Changes in the carrying amount of goodwill
Balance at beginning of period	$ 782,087
Goodwill resulting from acquisitions	150,021
Goodwill, measurement period adjustment	(633)
Effect of foreign currency translation	(5,526)
Balance at end of period	$ 925,949

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 618,835	$ 561,451
Accumulated amortization	(371,207)	(350,861)
Total estimated amortization expense	247,628	210,590
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	402,640	370,838
Accumulated amortization	(242,829)	(230,654)
Total estimated amortization expense	159,811	140,184
Agreements and Relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	205,454	180,023
Accumulated amortization	(125,436)	(113,629)
Total estimated amortization expense	80,018	66,394
Tradenames Trademarks And Patents [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	10,741	10,590
Accumulated amortization	(2,942)	(6,578)
Total estimated amortization expense	$ 7,799	$ 4,012

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Amortization of acquired intangibles
Cost of product and maintenance	$ 11,774	$ 11,447	$ 35,774	$ 33,791
Amortization of acquired intangibles	5,000	4,438	14,661	13,234
Total amortization of acquired intangibles	$ 16,774	$ 15,885	$ 50,435	$ 47,025

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Estimated amortization expense
2021 - remaining period	$ 16,724
2022	50,022
2023	34,492
2024	32,732
2025	22,092
2026	17,087
Thereafter	74,479
Total estimated amortization expense	$ 247,628	$ 210,590

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	9 Months Ended
	Oct. 02, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 375
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years 1 month 6 days

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	$ 52,746	$ 45,334	$ 155,860	$ 138,723
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	885	668	2,601	2,042
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	1,158	850	3,177	2,599
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	10,784	9,699	32,284	29,826
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	32,957	28,652	97,101	87,688
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	$ 6,962	$ 5,465	$ 20,697	$ 16,568

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020	Aug. 04, 2021	Jul. 03, 2021
Class of Stock Disclosures [Abstract]
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 1,200,000		$ 1,200,000			$ 346,000
Additional authorized repurchase amount					$ 1,000,000
Shares repurchased	723	717	3,766	3,124
Total cost of repurchased shares	$ 110,011	$ 75,011	$ 502,301	$ 250,047

Restructuring and Other Termi_3

Restructuring and Other Termination Benefits (Details Textual) $ in Millions	9 Months Ended
	Oct. 02, 2021USD ($)
Restructuring Cost and Reserve [Line Items]
Voluntary retirement program, period expense	$ 26.8
Voluntary retirement program, liability	21.5
Voluntary retirement program liability, current	$ 20.5

Restructuring and Other Termi_4

Restructuring and Other Termination Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Restructuring Reserve [Roll Forward]
Beginning balance			$ 8,693
Restructuring and other credits	$ (222)	$ 13	(968)	$ (1,329)
Cash payments			(7,311)
Effect of foreign currency translation			(67)
Ending balance	347		347
Employee Severance and Benefits [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			7,321
Restructuring and other credits			(1,379)
Cash payments			(5,715)
Effect of foreign currency translation			(67)
Ending balance	160		160
Excess Facilities [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			1,372
Restructuring and other credits			411
Cash payments			(1,596)
Effect of foreign currency translation			0
Ending balance	$ 187		$ 187

Restructuring and Other Termi_5

Restructuring and Other Termination Benefits (Details 1) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 347	$ 8,693
Accounts Payable and Accrued Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	340
Other Long Term Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 7

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 176,307	$ 161,630	$ 519,376	$ 416,906
Weighted average common shares used to calculate basic net income per share	273,194	273,996	273,636	273,633
Stock-based awards	5,117	6,028	5,410	5,822
Weighted average common shares used to calculate diluted net income per share (in shares)	278,311	280,024	279,046	279,455
Net income per share - basic (usd per share)	$ 0.65	$ 0.59	$ 1.90	$ 1.52
Net income per share - diluted (usd per share)	$ 0.63	$ 0.58	$ 1.86	$ 1.49

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Potential shares of Cadence's common stock excluded
Potential common shares excluded from the computation of diluted earnings per share	336	149	313	843
Long-term market-based awards
Potential shares of Cadence's common stock excluded
Potential common shares excluded from the computation of diluted earnings per share	0	105	0	510
Options to purchase shares of common stock
Potential shares of Cadence's common stock excluded
Potential common shares excluded from the computation of diluted earnings per share	331	23	267	258
Non-vested shares of restricted stock
Potential shares of Cadence's common stock excluded
Potential common shares excluded from the computation of diluted earnings per share	5	21	46	75

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Assets
Marketable equity securities	$ 5,568	$ 4,452
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	51,653	42,769
Foreign currency exchange contracts		8,868
Total Assets	442,179	597,475
Foreign currency exchange contracts	2,831
Total Liabilities	2,831
Money Market Funds
Assets
Money market funds	384,958	541,386
Fair Value Measurements, Level 1 [Member]
Assets
Marketable equity securities	5,568	4,452
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	51,653	42,769
Foreign currency exchange contracts		0
Total Assets	442,179	588,607
Foreign currency exchange contracts	0
Total Liabilities	0
Fair Value Measurements, Level 1 [Member] | Money Market Funds
Assets
Money market funds	384,958	541,386
Fair Value Measurements, Level 2 [Member]
Assets
Marketable equity securities	0	0
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	0	0
Foreign currency exchange contracts		8,868
Total Assets	0	8,868
Foreign currency exchange contracts	2,831
Total Liabilities	2,831
Fair Value Measurements, Level 2 [Member] | Money Market Funds
Assets
Money market funds	0	0
Fair Value Measurements, Level 3 [Member]
Assets
Marketable equity securities	0	0
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	0	0
Foreign currency exchange contracts		0
Total Assets	0	0
Foreign currency exchange contracts	0
Total Liabilities	0
Fair Value Measurements, Level 3 [Member] | Money Market Funds
Assets
Money market funds	$ 0	$ 0

Fair Value Fair Value (Details

Fair Value Fair Value (Details Textual) - Fair Value, Inputs, Level 3 [Member] $ in Millions	9 Months Ended
	Oct. 02, 2021USD ($)
2021 Acquisitions [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Finite-lived intangible assets acquired during period	$ 88.9
Measurement Input, Discount Rate [Member] | NUMECA
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated Technological Obsolescence Rate	6.70%
Estimated Royalty Rate	22.00%
Measurement Input, Discount Rate [Member] | NUMECA | Customer Relationships
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated Customer Retention Rate	95.00%
Measurement Input, Discount Rate [Member] | NUMECA | Minimum [Member] | Customer Relationships
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation significant input, discount rate	10.50%
Measurement Input, Discount Rate [Member] | NUMECA | Maximum [Member] | Customer Relationships
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation significant input, discount rate	12.00%
Measurement Input, Discount Rate [Member] | Pointwise
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated Technological Obsolescence Rate	10.00%
Estimated Royalty Rate	25.00%
Measurement Input, Discount Rate [Member] | Pointwise | Customer Relationships
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated Customer Retention Rate	95.00%
Measurement Input, Discount Rate [Member] | Pointwise | Minimum [Member] | Customer Relationships
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation significant input, discount rate	10.50%
Measurement Input, Discount Rate [Member] | Pointwise | Maximum [Member] | Customer Relationships
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation significant input, discount rate	12.00%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (27,563)	$ (17,425)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(27,563)	(17,425)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(20,748)	(11,130)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(20,748)	(11,130)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(6,815)	(6,295)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (6,815)	$ (6,295)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 750,895	$ 666,607	$ 2,215,208	$ 1,922,982
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	331,463	269,057	970,925	794,545
Other Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	11,487	10,956	31,353	29,913
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	342,950	280,013	1,002,278	824,458
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	98,325	114,160	287,357	275,191
Other Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	136,272	123,188	404,509	354,063
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	234,597	237,348	691,866	629,254
EMEA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	129,606	107,913	384,341	340,173
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 43,742	$ 41,333	$ 136,723	$ 129,097

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Summary of long-lived assets by geography
Total long-lived assets	$ 303,313	$ 311,125
United States [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	239,200	248,292
Other Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	616	753
Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	239,816	249,045
China [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	15,601	16,416
Other Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	31,159	28,668
Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	46,760	45,084
EMEA [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	16,245	16,304
Japan [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	$ 492	$ 692