Cadence Design Systems (CDNS) 10-K 22 Feb 22 2021 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jan. 01, 2022	Feb. 05, 2022	Jul. 03, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jan. 1, 2022
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
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	CDNS
Security Exchange Name	NASDAQ
Entity Central Index Key	0000813672
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 38,179,000,000
Entity Common Stock, Shares Outstanding		277,336,000
Current Fiscal Year End Date	--01-01

Audit Information

Audit Information	12 Months Ended
	Jan. 01, 2022	Dec. 28, 2019
Auditor [Line Items]
Auditor Name	PricewaterhouseCoopers LLP	KPMG LLP
Auditor Location	San Jose, California	Santa Clara, California
Auditor Firm ID	238	185

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 1,088,940	$ 928,432
Receivables, net	337,596	338,487
Inventories	115,721	75,956
Prepaid expenses and other	173,512	135,712
Total current assets	1,715,769	1,478,587
Property, plant and equipment, net	305,911	311,125
Goodwill	928,358	782,087
Acquired intangibles, net	233,265	210,590
Deferred taxes	763,770	732,290
Other assets	439,226	436,106
Total assets	4,386,299	3,950,785
Current liabilities:
Accounts payable and accrued liabilities	417,283	349,951
Current portion of deferred revenue	553,942	446,857
Total current liabilities	971,225	796,808
Long-term liabilities:
Long-term portion of deferred revenue	101,148	107,064
Long-term debt	347,588	346,793
Other long-term liabilities	225,663	207,102
Total long-term liabilities	674,399	660,959
Commitments and contingencies
Stockholders' equity:
Preferred stock – $0.01 par value; authorized 400 shares, none issued or outstanding	0	0
Common stock – $0.01 par value; authorized 600,000 shares; issued and outstanding shares: 276,796 and 278,941, respectively	2,467,701	2,217,939
Treasury stock, at cost; 52,363 shares and 50,219 shares, respectively	(2,740,003)	(2,057,829)
Retained earnings	3,046,288	2,350,333
Accumulated other comprehensive loss	(33,311)	(17,425)
Total stockholders' equity	2,740,675	2,493,018
Total liabilities and stockholders' equity	$ 4,386,299	$ 3,950,785

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jan. 01, 2022	Jan. 02, 2021
Statement of Financial Position [Abstract]
Preferred stock par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock shares authorized (in shares)	400	400
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	600,000	600,000
Common stock shares issued (in shares)	276,796	278,941
Common stock shares outstanding (in shares)	276,796	278,941
Treasury stock (in shares)	52,363	50,219

Consolidated Income Statements

Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Revenue:
Total revenue	$ 2,988,244	$ 2,682,891	$ 2,336,319
Costs and expenses:
Marketing and sales	560,262	516,460	481,673
Research and development	1,134,277	1,033,732	935,938
General and administrative	189,018	154,425	139,806
Amortization of acquired intangibles	19,640	18,009	12,128
Restructuring	(1,048)	9,215	8,621
Total costs and expenses	2,209,155	2,037,339	1,844,523
Income from operations	779,089	645,552	491,796
Interest expense	(16,980)	(20,749)	(18,829)
Other income, net	6,326	7,945	6,001
Income before provision (benefit) for income taxes	768,435	632,748	478,968
Provision (benefit) for income taxes	72,480	42,104	(510,011)
Net income	$ 695,955	$ 590,644	$ 988,979
Net income per share - basic (in usd per share)	$ 2.54	$ 2.16	$ 3.62
Net income per share - diluted (in usd per share)	$ 2.50	$ 2.11	$ 3.53
Weighted average common shares outstanding - basic (shares)	273,504	273,728	273,239
Weighted average common shares outstanding - diluted (shares)	278,858	279,641	280,515
Product and maintenance
Revenue:
Total revenue	$ 2,812,947	$ 2,536,617	$ 2,204,615
Costs and expenses:
Cost of sales	222,647	231,026	189,146
Services
Revenue:
Total revenue	175,297	146,274	131,704
Costs and expenses:
Cost of sales	$ 84,359	$ 74,472	$ 77,211

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 695,955	$ 590,644	$ 988,979
Other comprehensive income (loss), net of tax effects:
Foreign currency translation adjustments	(15,423)	18,373	(8,642)
Changes in defined benefit plan liabilities	(463)	1,128	(3,504)
Total other comprehensive income (loss), net of tax effects	(15,886)	19,501	(12,146)
Comprehensive income	$ 680,069	$ 610,145	$ 976,833

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative effect adjustment	Common Stock, Shares	Common Stock, Par Value and Capital in Excess of Par	Treasury Stock	Retained Earnings	Retained EarningsCumulative effect adjustment	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 29, 2018	$ 1,288,401			$ 1,936,124	$ (1,395,652)	$ 772,709		$ (24,780)
Beginning balance, shares at Dec. 29, 2018			280,015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	988,979					988,979
Other comprehensive loss, net of taxes	$ (12,146)							(12,146)
Purchase of treasury stock, shares	(4,841)		(4,841)
Purchase of treasury stock	$ (306,148)				(306,148)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares			5,923
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, value	52,841			(57,763)	110,604
Stock received for payment of employee taxes on vesting of restricted stock, shares			(1,242)
Stock received for payment of employee taxes on vesting of restricted stock, value	(90,580)			(13,671)	(76,909)
Stock-based compensation expense	181,547			181,547
Ending balance at Dec. 28, 2019	2,102,894	$ (1,999)		2,046,237	(1,668,105)	1,761,688	$ (1,999)	(36,926)
Ending balance, shares at Dec. 28, 2019			279,855
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	590,644					590,644
Other comprehensive loss, net of taxes	$ 19,501							19,501
Purchase of treasury stock, shares	(4,247)		(4,247)
Purchase of treasury stock	$ (380,064)				(380,064)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares			4,352
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, value	74,802			(7,934)	82,736
Stock received for payment of employee taxes on vesting of restricted stock, shares			(1,019)
Stock received for payment of employee taxes on vesting of restricted stock, value	(110,028)			(17,632)	(92,396)
Stock-based compensation expense	197,268			197,268
Ending balance at Jan. 02, 2021	$ 2,493,018			2,217,939	(2,057,829)	2,350,333		(17,425)
Ending balance, shares at Jan. 02, 2021	278,941		278,941
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 695,955					695,955
Other comprehensive loss, net of taxes	$ (15,886)							(15,886)
Purchase of treasury stock, shares	(4,401)		(4,401)
Purchase of treasury stock	$ (612,297)				(612,297)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares			2,978
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, value	87,777			55,505	32,272
Stock received for payment of employee taxes on vesting of restricted stock, shares			(722)
Stock received for payment of employee taxes on vesting of restricted stock, value	(117,982)			(15,833)	(102,149)
Stock-based compensation expense	210,090			210,090
Ending balance at Jan. 01, 2022	$ 2,740,675			$ 2,467,701	$ (2,740,003)	$ 3,046,288		$ (33,311)
Ending balance, shares at Jan. 01, 2022	276,796		276,796

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Statement of Cash Flows [Abstract]
Cash and cash equivalents at beginning of year	$ 928,432	$ 705,210	$ 533,298
Cash flows from operating activities:
Net income	695,955	590,644	988,979
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	142,308	145,653	122,789
Amortization of debt discount and fees	1,219	1,053	1,001
Stock-based compensation	210,090	197,268	181,547
(Gain) loss on investments, net	(580)	4,954	4,090
Deferred income taxes	(43,178)	(26,117)	(576,738)
Provisions for losses on receivables	525	1,628	632
ROU asset amortization and change in operating lease liabilities	(11,606)	4,483	562
Other non-cash items	427	773	428
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	2,014	(25,934)	(4,718)
Inventories	(39,027)	(25,685)	(33,024)
Prepaid expenses and other	(34,342)	(31,167)	(11,031)
Other assets	(7,133)	(71,606)	(8,011)
Accounts payable and accrued liabilities	67,356	18,394	33,915
Deferred revenue	100,731	110,173	27,498
Other long-term liabilities	16,199	10,408	1,681
Net cash provided by operating activities	1,100,958	904,922	729,600
Cash flows from investing activities:
Purchases of non-marketable investments	0	0	(33,717)
Proceeds from the sale of non-marketable investments	128	217	2,952
Purchases of property, plant and equipment	(65,298)	(94,813)	(74,605)
Purchases of intangible assets	(1,583)	0	0
Cash paid in business combinations and asset acquisitions, net of cash acquired	(226,201)	(197,562)	(338)
Net cash used for investing activities	(292,954)	(292,158)	(105,708)
Cash flows from financing activities:
Proceeds from revolving credit facility	0	350,000	150,000
Payment on revolving credit facility	0	(350,000)	(250,000)
Payment of debt issuance costs	1,285	0	0
Proceeds from issuance of common stock	87,772	74,803	52,842
Stock received for payment of employee taxes on vesting of restricted stock	(117,982)	(110,028)	(90,580)
Payments for repurchases of common stock	(612,297)	(380,064)	(306,148)
Net cash used for financing activities	(643,792)	(415,289)	(443,886)
Effect of exchange rate changes on cash and cash equivalents	(3,704)	25,747	(8,094)
Increase in cash and cash equivalents	160,508	223,222	171,912
Cash and cash equivalents at end of year	1,088,940	928,432	705,210
Supplemental cash flow information:
Cash paid for interest	15,950	19,778	17,842
Cash paid for income taxes, net	$ 146,424	$ 105,917	$ 41,946

Business Overview

Business Overview	12 Months Ended
	Jan. 01, 2022
Accounting Policies [Abstract]
BUSINESS OVERVIEW	BUSINESS OVERVIEWCadence Design Systems, Inc. (“Cadence”) provides solutions that enable its customers to design complex and innovative products. Cadence’s solutions are designed to give its customers a competitive edge in their development of integrated circuits (“ICs”), systems-on-chip (“SoCs”) and increasingly sophisticated electronic devices and systems by optimizing performance, minimizing power consumption, shortening the time required for customers to bring their products to market, improving engineering productivity and reducing their design, development and manufacturing costs. Cadence’s product offerings include software, hardware, services and reusable IC design blocks, which are commonly referred to as intellectual property (“IP”). Cadence also provides maintenance for its software, hardware, and IP product offerings.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jan. 01, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. Cadence’s fiscal years are 52- or 53-week periods ending on the Saturday closest to December 31. Fiscal 2021 and 2019 were 52- week fiscal years, while 2020 was a 53-week fiscal year. Use of Estimates Preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recently Adopted Accounting Standards Accounting for Income Taxes In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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 consolidated financial statements during fiscal 2021. New Accounting Standards Not Yet Adopted Lessors - Certain Leases with Variable Lease Payments In July 2021, the FASB issued ASU 2021-05, “Lessors - Certain Leases with Variable Lease Payments,” which allows lessors to classify and account for a lease with variable payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria as defined in ASC Topic 842 and (2) the lessor would have otherwise recognized a day-one loss on the lease arrangement. This standard better aligns the accounting with the underlying economics of these arrangements as lessors are not permitted to include most variable payments which do not depend on a reference index or a rate in the lease receivable while assets are derecognized at lease commencement. This standard is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Cadence adopted this standard on January 2, 2022, the first day of fiscal 2022, on a prospective basis. This standard is not expected to have a material impact on Cadence’s consolidated financial statements and related disclosures. Business Combinations In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which that requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with “Revenue from Contracts with Customers (Topic 606)” as if the acquiring entity had originated the contracts. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. Cadence adopted this standard on January 2, 2022, the first day of fiscal 2022. The impact of the standard on Cadence’s consolidated financial statements is dependent on the size and frequency of future acquisitions and does not affect contract assets or contract liabilities related to acquisitions completed prior to the adoption date. Foreign Operations Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence’s consolidated entities operating in the United States and certain of its consolidated subsidiaries operating outside the United States. The functional currency for Cadence’s other consolidated entities operating outside of the United States is generally the country’s local currency. Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using an average exchange rate for the period. Cadence includes adjustments from translating assets and liabilities into United States dollars, and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders’ equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in other income, net, in the consolidated income statements. Concentrations of Credit Risk Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, accounts receivable, investments and forward contracts. Credit exposure related to Cadence’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. Cash and Cash Equivalents Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents. Receivables Cadence’s receivables, net includes invoiced accounts receivable and the current portion of unbilled receivables. Unbilled receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time and Cadence has an unconditional right to the payment. Cadence’s accounts receivable and unbilled receivables were initially recorded at the transaction value. Cadence’s long-term receivables balance includes receivable balances to be invoiced more than one year after each balance sheet date. Allowances for Doubtful Accounts Cadence assesses its ability to collect outstanding receivables and provides customer-specific allowances, allowances for credit losses and general allowances for the portion of its receivables that are estimated to be uncollectible. The allowances are based on the current creditworthiness of its customers, historical experience, expected credit losses, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions for these allowances are recorded in general and administrative expense in Cadence’s consolidated income statements. Inventories Inventories are computed at standard costs which approximate actual costs and are valued at the lower of cost or net realizable value based on the first-in, first-out method. Cadence’s inventories include high technology parts and components for complex emulation and prototyping hardware systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to manage the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term. Cadence’s policy is to reserve for inventory in excess of 12-month demand or for other known obsolescence or realization issues. Property, Plant and Equipment Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows: Computer equipment and related software 2-7 years Buildings 25-32 years Leasehold improvements Shorter of the lease term or the estimated useful life Building improvements and land improvements Up to 32 years Furniture and fixtures 3-5 years Equipment 3-5 years Cadence capitalizes certain costs of software developed for internal use. Capitalization of software developed for internal use begins at the application development phase of the project. Amortization begins when the computer software is substantially complete and ready for its intended use. Amortization is recorded on a straight-line basis over the estimated useful life. Capitalized costs were not material during fiscal 2021, 2020 or 2019. Cadence recorded depreciation and amortization expense of $71.2 million, $67.6 million and $63.3 million during fiscal 2021, 2020 and 2019, respectively, for property, plant and equipment. Software Development Costs Software development costs are capitalized beginning when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence’s products has typically been of short duration. Costs incurred during fiscal 2021, 2020 and 2019 were not material. Deferred Sales Commissions Cadence records an asset for the incremental costs of obtaining a contract with a customer, including direct sales commissions that are earned upon execution of the contract. Cadence uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and renewals and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two to three years for Cadence’s software arrangements and upon delivery for its hardware and IP arrangements. Incremental costs related to initial contracts and renewals are amortized over the period of the arrangement in each case because Cadence pays the same commission rate for both new contracts and renewals. Deferred sales commissions are tested for impairment on an ongoing basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognized to the extent that the amount of deferred sales commission exceeds the remaining expected gross margin (remaining revenue less remaining direct costs) on the goods and services to which the deferred sales commission relates. Total capitalized costs were $43.9 million and $36.7 million as of January 1, 2022, and January 2, 2021, respectively, and are included in other assets in Cadence’s consolidated balance sheet. Amortization of these assets was $40.1 million, $34.6 million and $29.4 million during fiscal 2021, 2020 and 2019, respectively, and is included in sales and marketing expense in Cadence’s consolidated income statement. Goodwill Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence’s single reporting unit may be less than its carrying amount. To assess for impairment, Cadence compares the estimated fair value of its single reporting unit to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired and no further analysis is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to record an impairment charge. Long-Lived Assets, Including Acquired Intangibles Cadence’s long-lived assets consist of property, plant and equipment, and acquired intangibles. Acquired intangibles consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, capitalized software, and in-process research and development. These acquired intangibles are acquired through business combinations or direct purchases. Acquired intangibles with definite lives are amortized on a straight-line basis over the estimated economic life of the underlying products and technologies, which range from three years to fifteen years. Acquired intangibles with indefinite lives, or in-process technology, consists of projects that had not reached technological feasibility by the date of acquisition. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the assets might be impaired. Cadence reviews its long-lived assets, including acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value. Leases Lessee Considerations Cadence has operating leases primarily consisting of facilities with remaining lease terms of approximately one year to fourteen years. Cadence has options to terminate many of its leases early. The lease term represents the period up to the early termination date unless it is reasonably certain that Cadence will not exercise the early termination option. For certain leases, Cadence has options to extend the lease term for additional periods ranging from one year to ten years. Renewal options are not considered in the remaining lease term unless it is reasonably certain that Cadence will exercise such options. At inception of a contract, Cadence determines an arrangement contains a lease if the arrangement conveys the right to use an identified asset and Cadence obtains substantially all of the economic benefits from the asset and has the ability to direct the use of the asset. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered into or reassessed after the adoption of Topic 842, Cadence combines the lease and non-lease components in determining the lease liabilities and right-of-use (“ROU”) assets. Non-lease components primarily include common-area maintenance and other management fees. Operating lease expense is generally recognized evenly over the term of the lease. Payments under Cadence's lease agreements are primarily fixed; however, certain agreements contain rental payments that are adjusted periodically based on changes in consumer price and other indices. Changes to payments resulting from changes in indices are expensed as incurred and not included in the measurement of lease liabilities and ROU assets. Cadence’s lease agreements do not provide an implicit borrowing rate, therefore an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. The incremental borrowing rate represents a comparable rate to borrow on a collateralized basis over a similar term and in the economic environment where the leased asset is located. Cadence used the incremental borrowing rate on the effective date of adoption of Topic 842 for all leases that commenced prior to that date. Lessor Considerations Although most of Cadence’s revenue from its hardware business comes from sales of hardware, Cadence also leases its hardware products to some customers. Cadence determines the existence of a lease when the customer controls the use of the identified hardware for a period of time defined in the lease agreement. Cadence’s leases range in duration up to three years with payments generally collected in equal quarterly installments. Cadence’s leases do not include termination rights or variable pricing and typically do not include purchase rights at the end of the lease. Short-term leases are usually less than two years and are classified as operating leases with revenue recognized and depreciation expensed on a straight-line basis over the term of the lease. Long-term leases are typically for three years and are classified as sales-type leases with revenue and cost of sales recognized upon installation. Cadence’s operating leases and sales-type leases contain both lease and non-lease components. Because the pattern of revenue recognition is the same for both the lease and non-lease components in Cadence’s operating leases, Cadence has elected the practical expedient to not separate lease and related non-lease components and accounts for both components under Topic 842. Cadence allocates value to the lease and non-lease components in its sales-type leases using standalone selling prices (“SSPs”) similar to those used under ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” the current accounting standard governing revenue recognition. When Cadence leases its hardware in the same arrangement as software or IP, Cadence allocates value to each performance obligation using SSPs. Investments in Equity Securities Cadence’s investments in marketable equity securities are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence records realized and unrealized holding gains or losses as part of other income, net in the consolidated income statements. Cadence’s non-marketable investments include its investments in privately held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using the measurement alternative when the fair value of the investment is not readily determinable and Cadence does not have the ability to exercise significant influence or the equity method of accounting when it is determined that Cadence has the ability to exercise significant influence. For investments accounted for using the equity method of accounting, Cadence records its proportionate share of the investee’s income or loss, net of the effects of any basis differences, to other income, net on a one-quarter lag in Cadence’s consolidated income statements. Cadence reviews its non-marketable investments on a regular basis to determine whether its investments in these companies are impaired. Cadence considers investee financial performance and other information received from the investee companies, as well as any other available estimates of the fair value of the investee companies in its review. If Cadence determines the carrying value of an investment exceeds its fair value, the book value of the investment is adjusted to its fair value. Cadence records investment write-downs in other income, net, in the consolidated income statements. Derivative Financial Instruments Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income, net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less. Nonqualified Deferred Compensation Trust Executive officers, senior management and members of Cadence’s Board of Directors may elect to defer compensation payable to them under Cadence’s Nonqualified Deferred Compensation Plan (“NQDC”). Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. The selected investments held in the NQDC accounts are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income, net. These securities are classified in other assets in the consolidated balance sheets because they are not available for Cadence’s use in its operations. Cadence’s obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements. Treasury Stock Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders’ equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of retained earnings in the consolidated statements of stockholders’ equity. There were no losses recorded as a component of retained earnings by Cadence on the reissuance of treasury stock during fiscal 2021, 2020 or 2019. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which Cadence expects to be entitled in exchange for promised goods or services. Cadence’s performance obligations are satisfied either over time or at a point in time. In any fiscal year, between 85% and 90% of revenue is characterized as recurring revenue. Revenue characterized as recurring includes revenue recognized over time from Cadence’s software arrangements, services, royalties, maintenance on IP licenses and hardware, and operating leases of hardware and revenue recognized at varying points in time over the term of our IP Access Agreements (“IPAA”) that include non-cancellable commitments from customers. The remainder of Cadence’s revenue is recognized at a point in time and is characterized as up-front revenue. Up-front revenue is primarily generated by sales of emulation and prototyping hardware and individual IP licenses. Product and maintenance revenue includes Cadence’s licenses of software and IP, sales of emulation hardware and the related maintenance on these licenses and sales. Services revenue includes revenue received for performing engineering services (which are generally not related to the functionality of other licensed products), customized IP on a fixed fee basis, and sales from cloud-based solutions that provide customers with software and services over a period of time. Cadence enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, Cadence allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its SSP. Cadence generates revenue from contracts with customers and applies judgement in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities. Software Revenue Recognition Cadence’s time-based license arrangements grant customers the right to access and use all of the licensed products at the outset of an arrangement and updates are generally made available throughout the entire term of the arrangement, which is generally two to three years. Cadence’s updates provide continued access to evolving technology as customers’ designs migrate to more advanced nodes and as its customers’ technological requirements evolve. In addition, certain time-based license arrangements include remix rights and unspecified additional products that become commercially available during the term of the agreement. Payments are generally received in equal or near equal installments over the term of the agreement. Multiple software licenses, related updates, and technical support in these time-based arrangements constitute a single, combined performance obligation and revenue is recognized over the term of the license, commencing upon the later of the effective date of the arrangement or transfer of the software license. Remix rights are not an additional promised good or service in the contract, and where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer. Hardware Revenue Recognition Cadence generally has two performance obligations in arrangements involving the sale or lease of hardware products. The first performance obligation is to transfer the hardware product (which includes software integral to the functionality of the hardware product). The second performance obligation is to provide maintenance on hardware and its embedded software, which includes rights to technical support, hardware repairs and software updates that are all provided over the same term and have the same time-based pattern of transfer to the customer. The transaction price allocated to the hardware product is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. Cadence has concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. The transaction price allocated to maintenance is recognized as revenue ratably over the maintenance term. Payments for hardware contracts are generally received upon delivery of the hardware product. Shipping and handling costs are considered fulfillment costs and are included in cost of product and maintenance in Cadence’s consolidated income statements. IP Revenue Recognition Cadence generally licenses IP under nonexclusive license agreements that provide usage rights for specific designs. In addition, for certain of Cadence’s IP license agreements, royalties are collected as customers ship their own products that incorporate Cadence IP. These arrangements generally have two performance obligations—transferring the licensed IP and associated maintenance, which includes rights to technical support, and software updates that are all provided over the maintenance term and have a time-based pattern of transfer to the customer. Some customers enter into a non-cancellable 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. Revenue allocated to the IP license is recognized at a point in time upon the later of the delivery of the IP or the beginning of the license period and revenue allocated to the maintenance is recognized over the maintenance term. Royalties are recognized as revenue in the quarter in which the applicable Cadence customer ships its products that incorporate Cadence IP. Payments for IP contracts are generally received upon delivery of the IP. Cadence customizes certain IP and revenue related to this customization is recognized as services revenue as described below. Services Revenue Recognition Revenue from service contracts is recognized over time, generally using costs incurred or hours expended to measure progress. Cadence has a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. Payments for services are generally due upon milestones in the contract or upon consumption of the hourly resources. Stock-Based Compensation Cadence recognizes the cost of awards of equity instruments granted to employees in exchange for their services as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period, which is typically the vesting period. Cadence recognizes stock-based compensation expense on the straight-line method for awards that only contain a service condition and on the graded-vesting method for awards that contain both a service and performance condition. Cadence recognizes the impact of forfeitures on stock-based compensation expense as they occur. The fair value of stock options and purchase rights issued under Cadence’s Employee Stock Purchase Plan (“ESPP”) are calculated using the Black-Scholes option pricing model. The computation of the expected volatility assumption used for new awards is based on a weighting of historical and implied volatilities. When determining the expected term, Cadence reviews historical employee exercise behavior from options having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes for the comparable term in effect at the time of grant. The expected dividend yield used in the calculation is zero because Cadence has not historically paid and currently does not expect to pay dividends in the foreseeable future. Advertising Cadence expenses the costs of advertising as incurred. Total advertising expense, including marketing programs and events, was $7.5 million, $7.1 million and $8.4 million during fiscal 2021, 2020 and 2019, respectively, and is included in marketing and sales in the consolidated income statements. Restructuring Cadence records personnel-related restructuring charges with termination benefits when the costs are both probable and estimable. Cadence records personnel-related restructuring charges with non-customary termination benefits when the plan has been communicated to the affected employees. Cadence records facilities-related restructuring charges in the period in which the affected facilities are vacated. In connection with facilities-related restructuring plans, Cadence has made a number of estimates and assumptions related to losses on excess facilities that have been vacated or consolidated, particularly the timing of subleases and sublease terms. Closure and space reduction costs included in the restructuring charges include payments required under leases less any applicable estimated sublease income after the facilities are abandoned, lease buyout costs and certain contractual costs to maintain facilities during the period after abandonment. Cadence records estimated provisions for termination benefits and outplacement costs along with other personnel-related restructuring costs, asset impairments related to abandoned assets and other costs associated with the restructuring plan. Cadence regularly evaluates the adequacy of its restructuring liabilities and adjusts the balances based on

Debt

Debt	12 Months Ended
	Jan. 01, 2022
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of January 1, 2022 and January 2, 2021 was as follows: January 1, 2022 January 2, 2021 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ — $ — $ — 2024 Notes 350,000 (2,412) 347,588 350,000 (3,207) 346,793 Total outstanding debt $ 350,000 $ (2,412) $ 347,588 $ 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 million, with the right to request increased capacity up to an additional $350 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 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 million that results in a pro forma leverage ratio between 3.00 to 1 and 3.50 to 1. As of January 1, 2022, 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 $376.4 million as of January 1, 2022. Cadence may redeem the 2024 Notes, in whole or in part, at a redemption price equal to the greater of (a) 100% of the principal amount of the notes to be redeemed and (b) the sum of the present values of the remaining scheduled payments of principal and interest, plus any accrued and unpaid interest, as more particularly described in the indenture governing the 2024 Notes. The indenture governing the 2024 Notes includes customary representations, warranties and restrictive covenants, including, but not limited to, restrictions on Cadence’s ability to grant liens on assets, enter into sale and lease-back transactions, or merge, consolidate or sell assets, and also includes customary events of default.

Receivables, Net

Receivables, Net	12 Months Ended
	Jan. 01, 2022
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of January 1, 2022 and January 2, 2021 were as follows: As of January 1, January 2, (In thousands) Accounts receivable $ 185,599 $ 196,990 Unbilled accounts receivable 155,689 144,364 Long-term receivables 5,098 3,655 Total receivables 346,386 345,009 Less allowance for doubtful accounts (3,692) (2,867) Total receivables, net $ 342,694 $ 342,142 Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of January 1, 2022 and January 2, 2021, no customer accounted for 10% or more of Cadence’s total receivables. Allowance for doubtful accounts Cadence’s provisions for losses on its accounts receivable during fiscal 2021, 2020 and 2019 were as follows: Balance at Beginning of Period* Charged to Costs and Expenses Charged to Other Accounts Uncollectible Accounts Written Off, Net Balance at End of Period Year ended January 1, 2022 $ 2,867 $ 525 $ 780 $ (480) $ 3,692 Year ended January 2, 2021 2,868 1,628 225 (1,854) 2,867 Year ended December 28, 2019 $ 3,936 $ 632 $ — $ (3,699) $ 869 _____________ * Beginning balance for the year ended January 2, 2021 reflects the cumulative-effect adjustment recorded in connection with the adoption of ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” on the first day of fiscal 2020.

Revenue

Revenue	12 Months Ended
	Jan. 01, 2022
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 fiscal 2021, 2020 and 2019: 2021 2020 2019 Custom IC Design and Simulation 23 % 25 % 25 % Digital IC Design and Signoff 29 % 29 % 30 % Functional Verification, including Emulation and Prototyping Hardware* 24 % 22 % 23 % IP 13 % 14 % 13 % System Design and Analysis 11 % 10 % 9 % Total 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. No one customer accounted for 10% or more of total revenue during fiscal 2021, 2020 or 2019. 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 SSP. Judgment is required to determine 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 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 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 January 1, 2022 and January 2, 2021 were as follows: As of January 1, January 2, (In thousands) Contract assets $ 6,811 $ 9,709 Deferred revenue 655,090 553,921 Cadence recognized revenue of $430.2 million, $345.9 million and $311.8 million during fiscal 2021, 2020 and 2019, 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 IPAAs 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. Cadence records a customer deposit liability for amounts received from customers prior to the arrangement meeting the definition of a revenue contract. 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 $4.4 billion as of January 1, 2022, which included $119.5 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 January 1, 2022, 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 $47.1 million, $51.2 million and $40.4 million during fiscal 2021, 2020 and 2019, 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	12 Months Ended
	Jan. 01, 2022
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS 2021 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 with Cadence’s acquisition of NUMECA based on their respective estimated fair values on the acquisition date as follows: Acquisition Date Fair Value (In thousands) Current assets $ 16,423 Goodwill 133,077 Acquired intangibles 72,200 Other long-term assets 6,928 Total assets acquired 228,628 Current liabilities 9,951 Long-term liabilities 20,475 Total liabilities assumed 30,426 Total purchase consideration $ 198,202 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 is expected to be deductible for tax purposes. Cadence completed two additional acquisitions during fiscal 2021. These acquisitions are not material to the consolidated financial statements. 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 $ 59,100 13.7 years Agreements and relationships 28,900 13.7 years Tradenames, trademarks and patents 4,600 14.3 years Total acquired intangibles with definite lives $ 92,600 13.7 years 2020 Acquisitions In fiscal 2020, Cadence acquired all of the outstanding equity of AWR Corporation (“AWR”) and Integrand Software, Inc. (“Integrand”). These acquisitions enhanced Cadence’s technology portfolio to address growing radio frequency design activity, driven by expanding use of 5G communications. The aggregate cash consideration for these acquisitions was $195.6 million, after taking into account cash acquired of $1.5 million. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates. Cadence will also make payments to certain employees, subject to continued employment and other performance-based conditions, through the first quarter of fiscal 2023. With its acquisitions of AWR and Integrand, Cadence recorded $101.3 million of definite-lived intangible assets with a weighted average amortization period of approximately nine years. The definite-lived intangible assets related primarily to existing technology and customer agreements and relationships. Cadence also recorded $119.4 million of goodwill and $25.1 million of net liabilities, consisting primarily of deferred tax liabilities, assumed deferred revenue and trade accounts receivable. The recorded goodwill was primarily related to the acquired assembled workforce and expected synergies from combining operations of the acquired companies with Cadence. None of the goodwill related to the acquisitions of AWR and Integrand is deductible for tax purposes. Cadence completed one additional acquisition during fiscal 2020 that was not material to the consolidated financial statements. Pro Forma Financial Information Cadence has not presented pro forma financial information for any of the businesses it acquired during fiscal 2021 and fiscal 2020 because the results of operations for these businesses are not material to Cadence’s consolidated financial statements. Acquisition-Related Transaction Costs Transaction costs associated with acquisitions, which consist of professional fees and administrative costs, were not material during fiscal 2021, 2020 or 2019 and were expensed as incurred in Cadence’s consolidated income statements.

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	12 Months Ended
	Jan. 01, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND ACQUIRED INTANGIBLES	GOODWILL AND ACQUIRED INTANGIBLES Goodwill The changes in the carrying amount of goodwill during fiscal 2021 and 2020 were as follows: Gross Carrying (In thousands) Balance as of December 28, 2019 $ 661,856 Goodwill resulting from acquisitions 120,564 Effect of foreign currency translation (333) Balance as of January 2, 2021 782,087 Goodwill resulting from acquisitions 154,362 Effect of foreign currency translation (8,091) Balance as of January 1, 2022 $ 928,358 Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2021 and determined that the fair value of Cadence’s single reporting unit exceeded the carrying amount of its net assets and that no impairment existed. Acquired Intangibles, Net Acquired intangibles as of January 1, 2022 were as follows, excluding intangibles that were fully amortized as of January 2, 2021: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 405,481 $ (254,599) $ 150,882 Agreements and relationships 205,057 (130,187) 74,870 Tradenames, trademarks and patents 10,666 (3,153) 7,513 Total acquired intangibles $ 621,204 $ (387,939) 233,265 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 $ 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 fiscal 2021, 2020 and 2019, by consolidated income statement caption, was as follows: 2021 2020 2019 (In thousands) Cost of product and maintenance $ 47,576 $ 46,184 $ 40,951 Amortization of acquired intangibles 19,640 18,009 12,128 Total amortization of acquired intangibles $ 67,216 $ 64,193 $ 53,079 As of January 1, 2022, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter: (In thousands) 2022 $ 50,673 2023 35,142 2024 33,383 2025 22,741 2026 17,661 Thereafter 73,665 Total estimated amortization expense $ 233,265

Income Taxes

Income Taxes	12 Months Ended
	Jan. 01, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Cadence’s income before provision (benefit) for income taxes included income from the United States and from foreign subsidiaries for fiscal 2021, 2020 and 2019, was as follows: 2021 2020 2019 (In thousands) United States $ 376,037 $ 256,032 $ 139,306 Foreign subsidiaries 392,398 376,716 339,662 Total income before provision (benefit) for income taxes $ 768,435 $ 632,748 $ 478,968 Cadence’s provision (benefit) for income taxes was comprised of the following items for fiscal 2021, 2020 and 2019: 2021 2020 2019 (In thousands) Current: Federal $ 19,957 $ 15,083 $ 15,282 State and local 25,246 6,401 2,716 Foreign 70,455 46,737 48,729 Total current 115,658 68,221 66,727 Deferred: Federal (16,415) (11,155) (9,001) State and local (30,406) (24,186) 6,593 Foreign 3,643 9,224 (574,330) Total deferred (43,178) (26,117) (576,738) Total provision (benefit) for income taxes $ 72,480 $ 42,104 $ (510,011) During the fourth quarter of fiscal 2021, Cadence recognized a tax benefit of approximately $10.5 million due to a release of the valuation allowance on our Massachusetts research and development tax credit deferred tax assets. Cadence expects to utilize these tax credits prior to expiration based on strong current earnings and future taxable income projections. During the third quarter of fiscal 2020, Cadence recognized a tax benefit of approximately $22.2 million due to a partial release of the valuation allowance on our California research and development tax credit deferred tax assets as a result of certain tax elections made in Cadence’s 2019 California tax return. During the fourth quarter of fiscal 2019, Cadence completed intercompany transfers of certain intangible property rights to its Irish subsidiary, which resulted in the establishment of a deferred tax asset and the recognition of an income tax benefit of $575.6 million. Cadence expected to realize the Irish deferred tax asset in future years and did not provide for a valuation allowance. Cadence considered all available positive and negative evidence, including its past operating results, forecasted earnings, future taxable income, and any prudent and feasible tax planning strategies in making this determination. The provision for income taxes differs from the amount estimated by applying the United States statutory federal income tax rates of 21% to income before provision (benefit) for income taxes for fiscal 2021, 2020, and 2019 as follows: 2021 2020 2019 (In thousands) Provision computed at federal statutory income tax rate $ 161,880 $ 132,877 $ 100,583 State and local income tax, net of federal tax effect 24,640 20,936 23,221 Intercompany transfers of intangible property rights — — (575,618) Foreign income tax rate differential (26,887) (32,589) (37,786) Foreign-derived intangible income deduction (22,050) (3,762) (1,201) U.S. tax on foreign entities 51,112 43,615 57,225 Stock-based compensation (55,091) (51,226) (29,785) Change in deferred tax asset valuation allowance (8,262) (9,101) 16,796 Tax credits (90,054) (89,684) (87,793) Non-deductible research and development expense 4,443 5,163 4,363 Withholding taxes 23,495 17,189 15,865 Other 9,254 8,686 4,119 Provision (benefit) for income taxes $ 72,480 $ 42,104 $ (510,011) Effective tax rate 9 % 7 % (106) % The components of deferred tax assets and liabilities consisted of the following as of January 1, 2022 and January 2, 2021: As of January 1, January 2, (In thousands) Deferred tax assets: Tax credit carryforwards $ 147,248 $ 197,436 Reserves and accruals 72,287 60,272 Intangible assets 568,199 578,267 Capitalized research and development expense for income tax purposes 34,467 39,427 Operating loss carryforwards 6,630 5,935 Deferred income 42,753 21,170 Capital loss carryforwards 16,957 16,944 Stock-based compensation costs 17,690 14,656 Depreciation and amortization 5,005 4,402 Investments 6,833 2,521 Lease liability 27,362 31,278 Prepaid expenses 53,893 — Total deferred tax assets 999,324 972,308 Valuation allowance (108,158) (116,419) Net deferred tax assets 891,166 855,889 Deferred tax liabilities: Intangible assets (55,178) (44,549) Undistributed foreign earnings (45,460) (41,957) ROU assets (27,362) (31,278) Other (8,528) (10,749) Total deferred tax liabilities (136,528) (128,533) Total net deferred tax assets $ 754,638 $ 727,356 During fiscal 2021, 2020 and 2019 Cadence maintained valuation allowances of $108.2 million, $116.4 million, and $125.5 million, respectively, on certain federal, state and foreign deferred tax assets because the realization of these deferred tax assets require future income of a specific character or amount that Cadence considered uncertain. The valuation allowance primarily relates to the following: • Tax credits in certain states that are accumulating at a rate greater than Cadence’s capacity to utilize the credits and tax credits in certain states where it is likely the credits will expire unused; • Federal, state and foreign deferred tax assets related to investments and capital losses that can only be utilized against gains that are capital in nature; and • Foreign tax credits that can only be fully utilized if Cadence has sufficient income of a specific character in the future. The valuation allowance decreased by $8.3 million during fiscal 2021, decreased by $9.1 million during fiscal 2020 and increased by $16.8 million during fiscal 2019. The valuation allowance activity was primarily related to state research and development tax credits and certain foreign tax credits. As of January 1, 2022, Cadence’s operating loss carryforwards were as follows: Amount Expiration Periods (In thousands) Federal $ 428 from 2027 through 2033 California 27,044 from 2025 through 2038 Other states (tax effected, net of federal benefit) 1,174 from 2022 through 2037 Foreign (tax effected) 3,478 from 2030 through indefinite As of January 1, 2022, Cadence had tax credit carryforwards of: Amount Expiration Periods (In thousands) Federal* $ 46,743 from 2029 through 2041 California 77,651 indefinite Other states 14,361 from 2025 through indefinite Foreign 27,814 from 2037 through indefinite _____________ *Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period. Examinations by Tax Authorities Taxing authorities regularly examine Cadence’s income tax returns. As of January 1, 2022, Cadence’s earliest tax years that remain open to examination and the assessment of additional tax include: Jurisdiction Earliest Tax Year Open to Examination United States – Federal 2017 United States – California 2015 Ireland 2017 Israel 2016 Korea 2016 Unrecognized Tax Benefits The changes in Cadence’s gross amount of unrecognized tax benefits during fiscal 2021, 2020 and 2019 are as follows: 2021 2020 2019 (In thousands) Unrecognized tax benefits at the beginning of the fiscal year $ 113,021 $ 106,041 $ 101,857 Gross amount of the increases (decreases) in unrecognized tax benefits of tax positions taken during a prior year* 15,414 5,037 (3,143) Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year 5,100 3,344 8,951 Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes (270) (1,316) (380) Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations (2,778) (676) (1,692) Effect of foreign currency translation 43 591 448 Unrecognized tax benefits at the end of the fiscal year $ 130,530 $ 113,021 $ 106,041 Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence’s effective tax rate $ 79,654 $ 66,010 $ 61,527 _____________ * Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions Cadence is currently under examination or contesting proposed adjustments by various domestic and international taxing authorities. It is reasonably possible that the amount of unrecognized tax positions could decrease by approximately $20.6 million during the next 12 months. The potential decrease could be primarily driven by settlements with tax authorities. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements. The total amounts of interest, net of tax, and penalties recognized in the consolidated income statements as provision (benefit) for income taxes for fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands) Interest $ 1,171 $ 473 $ 490 Penalties (11) (3) 19 The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of January 1, 2022 and January 2, 2021 were as follows: As of January 1, January 2, (In thousands) Interest $ 4,921 $ 3,555 Penalties — 12

Stock Compensation Plans and St

Stock Compensation Plans and Stock Based Compensation	12 Months Ended
	Jan. 01, 2022
Share-based Payment Arrangement [Abstract]
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION	STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION Equity Incentive Plans Cadence’s Omnibus Plan provides for the issuance of both incentive and non-qualified options, restricted stock awards, restricted stock units, stock bonuses and the rights to acquire restricted stock to both executive and non-executive employees. During fiscal 2020, Cadence’s stockholders approved an amendment to the Omnibus Plan to increase the number of shares of common stock authorized for issuance by 9.0 million. As of January 1, 2022, the total number of shares available for future issuance under the Omnibus Plan was 14.4 million. Options granted under the Omnibus Plan have an exercise price not less than the fair market value of the stock on the date of grant. Options and restricted stock generally vest over a period of three years to four years. Options granted under the Omnibus Plan expire seven years from the date of grant. Vesting of restricted stock awards granted under the Omnibus Plan may require the attainment of specified performance criteria. Cadence’s 1995 Directors Stock Incentive Plan (the “Directors Plan”) provides for the issuance of non-qualified options, restricted stock awards and restricted stock units to its non-employee directors. Options granted under the Directors Plan have an exercise price not less than the fair market value of the stock on the date of grant. As of January 1, 2022, the total number of shares available for future issuance under the Directors Plan was 0.5 million. Options granted under the Directors Plan expire after ten years, and options, restricted stock awards and restricted stock units vest one year from the date of grant. Cadence has assumed certain options granted to employees of acquired companies (“Acquired Options”). The Acquired Options were assumed by Cadence outside of its stock option plans, and each option is administered under the terms of the respective original plans of the acquired companies. All of the Acquired Options have been adjusted for the price conversion under the terms of the acquisition agreement between Cadence and the relevant acquired company. If the Acquired Options are canceled, forfeited or expire, they do not become available for future grant. Stock-Based Compensation Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the ESPP during fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands) Stock options $ 9,051 $ 8,062 $ 6,806 Restricted stock 181,946 173,193 164,078 ESPP 19,093 16,013 10,663 Total stock-based compensation expense $ 210,090 $ 197,268 $ 181,547 Income tax benefit $ 33,958 $ 31,857 $ 30,118 Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2021, 2020 and 2019 as follows: 2021 2020 2019 (In thousands) Cost of product and maintenance $ 4,161 $ 2,922 $ 2,759 Cost of services 3,375 3,720 3,510 Marketing and sales 43,264 42,096 39,088 Research and development 131,247 124,999 114,656 General and administrative 28,043 23,531 21,534 Total stock-based compensation expense $ 210,090 $ 197,268 $ 181,547 Stock Options The exercise price of each stock option granted under Cadence’s employee equity incentive plans is equal to or greater than the closing price of Cadence’s common stock on the date of grant. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average grant date fair value of options granted and the weighted average assumptions used in the model for fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 Dividend yield None None None Expected volatility 31.7 % 25.1 % 24.4 % Risk-free interest rate 1.02 % 1.36 % 2.47 % Expected term (in years) 4.8 4.8 4.8 Weighted average fair value of options granted $ 46.10 $ 19.38 $ 14.58 A summary of the changes in stock options outstanding under Cadence’s equity incentive plans during fiscal 2021 is presented below: Weighted Average Weighted Average Remaining Contractual Terms Aggregate Intrinsic Shares Exercise Price (Years) Value (In thousands) (In thousands) Options outstanding as of January 2, 2021 3,934 $ 36.72 Granted 612 159.25 Exercised (1,066) 22.37 Forfeited (61) 61.38 Options outstanding as of January 1, 2022 3,419 $ 62.69 3.5 $ 422,830 Options vested as of January 1, 2022 2,425 $ 39.16 2.7 $ 356,981 Cadence had total unrecognized compensation expense related to stock option grants of $32.8 million as of January 1, 2022, which will be recognized over the remaining vesting period. The remaining weighted average vesting period of unvested awards is 2.7 years. The total intrinsic value of and cash received from options exercised during fiscal 2021, 2020 and 2019 was: 2021 2020 2019 (In thousands) Intrinsic value of options exercised $ 129,403 $ 109,193 $ 51,625 Cash received from options exercised 23,844 26,474 14,553 Restricted Stock Generally, restricted stock, which includes restricted stock awards and restricted stock units, vests over three years to four years and is subject to the employee’s continuing service to Cadence. Stock-based compensation expense is recognized ratably over the vesting term. The vesting of certain restricted stock grants is subject to attainment of specified performance criteria. Each fiscal quarter, Cadence estimates the probability of the achievement of these performance goals and recognizes any related stock-based compensation expense using the graded-vesting method. The amount of stock-based compensation expense recognized in any one period can vary based on the attainment or expected attainment of the various performance goals. If such performance goals are not ultimately met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Certain long-term, market-based performance stock awards granted to executives vest over three to five years and are subject to certain market conditions and the executive’s continuing service to Cadence. Stock-based compensation expense is recognized straight-line over the vesting term. If the market-based performance conditions are not ultimately met, compensation expense previously recognized is not reversed. As of January 1, 2022, Cadence had 1.3 million shares of unvested long-term, market-based performance stock awards outstanding. Stock-based compensation expense related to performance-based and market-based performance restricted stock grants for fiscal 2021, 2020 and 2019 was as follows: 2021 2020 2019 (In thousands) Stock-based compensation expense related to performance-based restricted stock $ 16,225 $ 14,859 $ 12,640 Stock-based compensation expense related to market-based performance stock awards 6,453 8,335 7,019 A summary of the changes in restricted stock outstanding under Cadence’s equity incentive plans during fiscal 2021 is presented below: Weighted Average Grant Date Weighted Average Remaining Vesting Terms Aggregate Intrinsic Shares Fair Value (Years) Value (In thousands) (In thousands) Unvested shares as of January 2, 2021 6,239 $ 63.12 Granted 1,688 141.97 Vested (2,570) 61.61 Forfeited (426) 75.92 Unvested shares as of January 1, 2022 4,931 $ 89.91 1.2 $ 918,769 Cadence had total unrecognized compensation expense related to restricted stock grants of $341.0 million as of January 1, 2022, which will be recognized over the remaining vesting period. The remaining weighted average vesting period of unvested awards is 2.0 years. The total fair value realized by employees upon vesting of restricted stock during fiscal 2021, 2020 and 2019 was: 2021 2020 2019 (In thousands) Fair value of restricted stock realized upon vesting $ 365,298 $ 358,261 $ 298,320 Employee Stock Purchase Plan Cadence provides an ESPP that enables eligible employees to purchase shares of its common stock. Offering periods under the plan last a duration of six months beginning on either February 1 or August 1, with the purchase dates falling on the last day of the six-month offering period. For the offering periods that commenced February 1, 2021 and August 1, 2021, eligible employees may purchase Cadence’s common stock at a price equal to 85% of the lower of the fair market value at the beginning or the end of the applicable offering period, in an amount not to exceed 12% of their annual base earnings plus bonuses and commissions, and subject to a limit in any calendar year of $15,000. The ESPP may be amended from time to time. As of January 1, 2022, the total number of shares available for future issuance under the ESPP was 4.6 million. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes option pricing model. The weighted average grant date fair value of purchase rights granted under the ESPP and the weighted average assumptions used in the model for fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 Dividend yield None None None Expected volatility 31.5 % 32.6 % 27.9 % Risk-free interest rate 0.07 % 0.80 % 2.23 % Expected term (in years) 0.5 0.5 0.5 Weighted average fair value of options granted $ 33.77 $ 23.08 $ 14.37 Shares of common stock issued under the ESPP for fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands, except per share amounts) Cadence shares purchased under the ESPP 624 785 988 Cash received for the purchase of shares under the ESPP $ 63,932 $ 48,328 $ 38,290 Weighted average purchase price per share $ 102.41 $ 61.55 $ 38.74 Reserved for Future Issuance As of January 1, 2022, Cadence had reserved the following shares of authorized but unissued common stock for future issuance: Shares (In thousands) Employee equity incentive plans* 19,006 Employee stock purchase plans 4,630 Directors stock plans* 622 Total 24,258 _____________ *Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units.

Stock Repurchase Programs

Stock Repurchase Programs	12 Months Ended
	Jan. 01, 2022
Equity [Abstract]
STOCK REPURCHASE PROGRAMS	STOCK REPURCHASE PROGRAMS At the end of fiscal 2020, approximately $739 million remained available under Cadence’s previously announced authorization to repurchase shares of its 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 January 1, 2022, approximately $1.1 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 fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands) Shares repurchased 4,401 4,247 4,841 Total cost of repurchased shares $ 612,297 $ 380,064 $ 306,148

Net Income per Share

Net Income per Share	12 Months Ended
	Jan. 01, 2022
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NET INCOME PER SHARE Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting. The calculations for basic and diluted net income per share for fiscal 2021, 2020 and 2019 are as follows: 2021 2020 2019 (In thousands, except per share amounts) Net income $ 695,955 $ 590,644 $ 988,979 Weighted average common shares used to calculate basic net income per share 273,504 273,728 273,239 Stock-based awards 5,354 5,913 7,276 Weighted average common shares used to calculate diluted net income per share 278,858 279,641 280,515 Net income per share – basic $ 2.54 $ 2.16 $ 3.62 Net income per share – diluted $ 2.50 $ 2.11 $ 3.53 The following table presents shares of Cadence’s common stock outstanding for fiscal 2021, 2020 and 2019 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: 2021 2020 2019 (In thousands) Long-term market-based awards — 383 1,097 Options to purchase shares of common stock 214 201 359 Non-vested shares of restricted stock 41 58 727 Total potential common shares excluded 255 642 2,183

Leases

Leases	12 Months Ended
	Jan. 01, 2022
Leases [Abstract]
Lessee, Operating Leases	LEASES Operating lease expense, which includes immaterial amounts of short-term leases, variable lease costs and sublease income, was as follows during fiscal 2021, 2020 and 2019: 2021 2020 2019 (In thousands) Operating lease expense $ 43,210 $ 39,731 $ 34,709 Additional activity related to Cadence’s leases during fiscal 2021 and 2020 was as follows: 2021 2020 (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 50,151 $ 34,723 ROU assets obtained in exchange for operating lease obligations 31,813 63,057 ROU lease assets and lease liabilities for Cadence’s operating leases were recorded in the consolidated balance sheet as follows: As of January 1, January 2, (In thousands) Other assets $ 130,124 $ 133,354 Accounts payable and accrued liabilities 25,271 33,920 Other long-term liabilities 107,121 113,916 Total lease liabilities $ 132,392 $ 147,836 Weighted average remaining lease term (in years) 6.5 6.7 Weighted average discount rate 3.6 % 3.8 % Future lease payments included in the measurement of lease liabilities on the consolidated balance sheet as of January 1, 2022, for the following five fiscal years and thereafter were as follows: Operating Leases (In thousands) 2022 $ 28,471 2023 26,828 2024 23,271 2025 19,715 2026 13,298 Thereafter 36,770 Total future lease payments 148,353 Less imputed interest (15,961) Total lease liability balance $ 132,392

Balance Sheet Components

Balance Sheet Components	12 Months Ended
	Jan. 01, 2022
Disclosure Text Block Supplement [Abstract]
Balance Sheet Components [Text Block]	BALANCE SHEET COMPONENTS A summary of certain balance sheet components as of January 1, 2022 and January 2, 2021 is as follows: As of January 1, January 2, (In thousands) Inventories: Raw materials $ 88,629 $ 63,647 Finished goods 27,092 12,309 Inventories $ 115,721 $ 75,956 Prepaid expenses and other: Prepaid income taxes $ 85,320 $ 55,366 Other prepaid expenses and other assets 88,192 80,346 Prepaid expenses and other $ 173,512 $ 135,712 Property, plant and equipment: Computer equipment and related software $ 636,069 $ 616,836 Buildings 126,557 126,666 Land 55,842 55,848 Leasehold, building and land improvements 137,778 129,155 Furniture and fixtures 27,798 27,064 Equipment 40,603 38,732 In-process capital assets 13,830 10,774 Total cost 1,038,477 1,005,075 Less: Accumulated depreciation and amortization (732,566) (693,950) Property, plant and equipment, net $ 305,911 $ 311,125 Other assets: Non-marketable investments $ 127,501 $ 132,226 ROU lease assets 130,124 133,354 Other long-term assets 181,601 170,526 Other assets $ 439,226 $ 436,106 Accounts payable and accrued liabilities: Payroll and payroll-related accruals $ 254,090 $ 219,289 Customer deposits 64,117 27,888 Other accrued operating liabilities 99,076 102,774 Accounts payable and accrued liabilities $ 417,283 $ 349,951 Other long-term liabilities: Operating lease liabilities $ 107,121 $ 113,916 Other accrued liabilities 118,542 93,186 Other long-term liabilities $ 225,663 $ 207,102

Investments

Investments	12 Months Ended
	Jan. 01, 2022
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS	INVESTMENTS Cadence has a portfolio of equity investments that includes investments in both marketable and non-marketable securities. These investments primarily consist of cash investments in companies with technologies or services that are potentially strategically important to Cadence. Marketable Equity Investments Cadence’s investment in marketable equity securities consists of purchased shares of a publicly held company and is included in prepaid expenses and other in Cadence’s consolidated balance sheets. Changes in the fair value of these investments is recorded to other income, net in Cadence’s consolidated income statements. Non-Marketable Equity Investments Cadence’s investments in non-marketable equity securities generally consist of stock, convertible debt or other instruments of privately held entities and are included in other assets on Cadence’s consolidated balance sheets. Cadence holds a 16% interest in a privately held company that is accounted for using the equity method of accounting. The carrying value of this investment was $125.9 million and $130.7 million as of January 1, 2022 and January 2, 2021, respectively. During fiscal 2021 and fiscal 2020, Cadence recorded losses of $1.1 million and $4.6 million, respectively, to other income, net in Cadence’s consolidated income statements, which represented Cadence’s proportionate share of net income from the investee, offset by amortization of basis differences. Cadence also holds other non-marketable investments in privately held companies where Cadence does not have the ability to exercise significant influence and the fair value of the investments is not readily determinable. The carrying value of these investments was $1.6 million and $1.6 million as of January 1, 2022 and January 2, 2021, respectively. Gains and losses on these investments are recorded to other income, net in Cadence’s consolidated income statements and were not material to Cadence’s consolidated financial statements for fiscal 2021, 2020 or 2019.

Fair Value

Fair Value	12 Months Ended
	Jan. 01, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1 – Quoted prices for identical instruments in active markets; • Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during fiscal 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 January 1, 2022 and January 2, 2021: Fair Value Measurements as of January 1, 2022: Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 658,474 $ 658,474 $ — $ — Marketable equity securities 5,956 5,956 — — Securities held in NQDC trust 56,165 56,165 — — Total Assets $ 720,595 $ 720,595 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts 306 — 306 — Total Liabilities $ 306 $ — $ 306 $ — 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 3 in the notes to consolidated financial statements. Level 3 Measurements During fiscal 2021, Cadence acquired intangible assets of $88.9 million with its acquisition of NUMECA and Pointwise. 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 present value of after-tax royalty savings were determined using discount rates ranging from 10.5% to 12.0%. 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%. During fiscal 2020, Cadence acquired intangible assets of $101.3 million during the first quarter of fiscal 2020 with its acquisition of AWR and Integrand. The fair value of the definite-lived intangible assets acquired with these acquisitions was determined using variations of the income approach, which include level 3 inputs. For 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 existing technology over the estimated remaining life of the technology, including the effect of technological obsolescence which was estimated at a rate between 5% and 7.5% annually, before applying an assumed royalty rate of 20%. The present value of after-tax royalty savings were determined using discount rates ranging from 10% to 11.5%. 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 customer retention rates ranging between 85% and 95%. The present value of operating cash flows from existing customers was determined using discount rates 10% and 11.5%. Cadence also assumed obligations related to deferred revenue of $6.9 million during fiscal 2020 with its acquisition of AWR. The fair value of these obligations was estimated using the cost build-up approach. The cost build-up approach determines fair value using estimates of the costs required to fulfill the contracted obligations plus an assumed profit margin, which approximates the amount that AWR would be required to pay a third party to assume the obligation. Cadence believes that its estimates and assumptions related to the fair value of its acquired intangible assets and assumed liabilities are reasonable, but significant judgment is involved.

Restructuring and Other Charges

Restructuring and Other Charges	12 Months Ended
	Jan. 01, 2022
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND OTHER CHARGES	RESTRUCTURING AND OTHER CHARGES Cadence has initiated restructuring plans, most recently in fiscal 2020, 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 consolidated income statements. The following table presents activity for Cadence’s restructuring plans during fiscal 2021, 2020 and 2019: Severance and Benefits Excess Facilities Total (In thousands) Balance, December 29, 2018 $ 11,176 $ 848 $ 12,024 Restructuring 8,649 (28) 8,621 Cash payments (10,714) (420) (11,134) Effect of foreign currency translation 118 9 127 Balance, December 28, 2019 $ 9,229 $ 409 $ 9,638 Restructuring 7,476 1,739 9,215 Cash payments (9,424) (773) (10,197) Effect of foreign currency translation 40 (3) 37 Balance, January 2, 2021 $ 7,321 $ 1,372 $ 8,693 Restructuring (1,480) 432 (1,048) Cash payments (5,774) (1,761) (7,535) Effect of foreign currency translation (67) — (67) Balance, January 1, 2022 $ — $ 43 $ 43 All remaining liabilities for Cadence’s restructuring plans represent liabilities from vacated facilities and are included in accounts payable and accrued liabilities on Cadence’s consolidated balance sheet as of January 1, 2022. Restructuring liabilities included in other long-term liabilities represent liabilities from vacated facilities, and Cadence expects to make cash payments to settle these liabilities through fiscal 2022. Other 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 consolidated income statements. As of January 1, 2022, liabilities related to the voluntary retirement program were $17.5 million and were included in accounts payable and accrued liabilities and other long-term liabilities on Cadence’s consolidated balance sheet. Cadence expects to make cash payments to settle these liabilities through fiscal 2023, including $17.0 million that is expected to be paid within the next twelve months.

Other Income, Net

Other Income, Net	12 Months Ended
	Jan. 01, 2022
Other Income and Expenses [Abstract]
OTHER INCOME, NET	OTHER INCOME, NET Cadence’s other income, net, for fiscal 2021, 2020 and 2019 was as follows: 2021 2020 2019 (In thousands) Interest income $ 2,634 $ 3,817 $ 9,509 Gains (losses) on marketable equity investments 1,504 (148) 713 Losses on non-marketable equity investments (924) (4,806) (4,802) Gains on securities in NQDC trust 6,163 4,881 5,402 Gains (losses) on foreign exchange (2,789) 4,429 (4,111) Other expense, net (262) (228) (710) Total other income, net $ 6,326 $ 7,945 $ 6,001

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jan. 01, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Purchase Obligations Cadence had purchase obligations of $62.4 million as of January 1, 2022 that were associated with agreements or commitments for purchases of goods or services. Cadence expects to settle $50.9 million of these obligations within the next 12 months. 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 legal proceedings related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, customers, products, distribution and other commercial arrangements and employee relations matters. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates. Other Contingencies Cadence provides its customers with a warranty on sales of hardware products, generally for a 90-day period. Cadence did not incur any significant costs related to warranty obligations during fiscal 2021, 2020 or 2019. Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s intellectual property. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. The indemnification is generally limited to the amount paid by the customer. Cadence did not incur any significant losses from indemnification claims during fiscal 2021, 2020 or 2019.

Employee and Director Benefit P

Employee and Director Benefit Plans	12 Months Ended
	Jan. 01, 2022
Retirement Benefits [Abstract]
EMPLOYEE AND DIRECTOR BENEFIT PLANS	EMPLOYEE AND DIRECTOR BENEFIT PLANS Cadence maintains various defined contribution plans for its eligible U.S. and non-U.S. employees. For employees in the United States, Cadence maintains a 401(k) savings plan to provide retirement benefits through tax-deferred salary deductions and may make discretionary contributions, as determined by the Board of Directors, which cannot exceed a specified percentage of the annual aggregate salaries of those employees eligible to participate. Cadence’s total contributions made to these plans during fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands) Contributions to defined contribution plans $ 33,029 $ 27,152 $ 25,269 Executive Officers and Directors may also elect to defer compensation payable to them under Cadence’s NQDC. Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. These investments are classified in other assets in the consolidated balance sheets and gains and losses are recognized as other income, net in the consolidated income statements.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	12 Months Ended
	Jan. 01, 2022
Other Comprehensive Income (Loss), Net of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS Cadence’s accumulated other comprehensive loss is comprised of the aggregate impact of foreign currency translation gains and losses and changes in defined benefit plan liabilities and is presented in Cadence’s consolidated statements of comprehensive income. Accumulated other comprehensive loss was comprised of the following as of January 1, 2022, and January 2, 2021: As of January 1, January 2, (In thousands) Foreign currency translation loss $ (26,553) $ (11,130) Changes in defined benefit plan liabilities (6,758) (6,295) Total accumulated other comprehensive loss $ (33,311) $ (17,425)

Segment Reporting

Segment Reporting	12 Months Ended
	Jan. 01, 2022
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. Property, plant and equipment is attributed to geography based on the country where the assets are located. The following table presents a summary of revenue by geography for fiscal 2021, 2020 and 2019: 2021 2020 2019 (In thousands) Americas: United States $ 1,292,980 $ 1,096,263 $ 982,380 Other Americas 42,141 43,652 43,473 Total Americas 1,335,121 1,139,915 1,025,853 Asia: China 378,160 406,645 241,474 Other Asia 566,772 487,362 459,028 Total Asia 944,932 894,007 700,502 Europe, Middle East and Africa 523,390 469,804 433,314 Japan 184,801 179,165 176,650 Total $ 2,988,244 $ 2,682,891 $ 2,336,319 The following table presents a summary of property, plant and equipment by geography as of January 1, 2022, January 2, 2021 and December 28, 2019: As of January 1, January 2, December 28, (In thousands) Americas: United States $ 238,263 $ 248,292 $ 220,023 Other Americas 623 753 728 Total Americas 238,886 249,045 220,751 Asia: China 15,010 16,416 15,729 Other Asia 35,458 28,668 27,890 Total Asia 50,468 45,084 43,619 Europe, Middle East and Africa 16,033 16,304 10,474 Japan 524 692 1,011 Total $ 305,911 $ 311,125 $ 275,855

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jan. 01, 2022
Accounting Policies [Abstract]
Commitments and Contingencies	At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates.
Fair Value of Financial Instruments	Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1 – Quoted prices for identical instruments in active markets; • Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
Principles of Consolidation and Basis of Presentation	The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. Cadence’s fiscal years are 52- or 53-week periods ending on the Saturday closest to December 31. Fiscal 2021 and 2019 were 52- week fiscal years, while 2020 was a 53-week fiscal year.
Use of Estimates	Preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards Accounting for Income Taxes In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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 consolidated financial statements during fiscal 2021. New Accounting Standards Not Yet Adopted Lessors - Certain Leases with Variable Lease Payments In July 2021, the FASB issued ASU 2021-05, “Lessors - Certain Leases with Variable Lease Payments,” which allows lessors to classify and account for a lease with variable payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria as defined in ASC Topic 842 and (2) the lessor would have otherwise recognized a day-one loss on the lease arrangement. This standard better aligns the accounting with the underlying economics of these arrangements as lessors are not permitted to include most variable payments which do not depend on a reference index or a rate in the lease receivable while assets are derecognized at lease commencement. This standard is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Cadence adopted this standard on January 2, 2022, the first day of fiscal 2022, on a prospective basis. This standard is not expected to have a material impact on Cadence’s consolidated financial statements and related disclosures. Business Combinations In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which that requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with “Revenue from Contracts with Customers (Topic 606)” as if the acquiring entity had originated the contracts. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. Cadence adopted this standard on January 2, 2022, the first day of fiscal 2022. The impact of the standard on Cadence’s consolidated financial statements is dependent on the size and frequency of future acquisitions and does not affect contract assets or contract liabilities related to acquisitions completed prior to the adoption date.
Foreign Operations	Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence’s consolidated entities operating in the United States and certain of its consolidated subsidiaries operating outside the United States. The functional currency for Cadence’s other consolidated entities operating outside of the United States is generally the country’s local currency. Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using an average exchange rate for the period. Cadence includes adjustments from translating assets and liabilities into United States dollars, and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders’ equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in other income, net, in the consolidated income statements.
Concentrations of Credit Risk	Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, accounts receivable, investments and forward contracts. Credit exposure related to Cadence’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts.
Cash and Cash Equivalents	Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents.
Receivables	Cadence’s receivables, net includes invoiced accounts receivable and the current portion of unbilled receivables. Unbilled receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time and Cadence has an unconditional right to the payment. Cadence’s accounts receivable and unbilled receivables were initially recorded at the transaction value. Cadence’s long-term receivables balance includes receivable balances to be invoiced more than one year after each balance sheet date.
Allowance for Doubtful Accounts	Cadence assesses its ability to collect outstanding receivables and provides customer-specific allowances, allowances for credit losses and general allowances for the portion of its receivables that are estimated to be uncollectible. The allowances are based on the current creditworthiness of its customers, historical experience, expected credit losses, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions for these allowances are recorded in general and administrative expense in Cadence’s consolidated income statements.
Inventories	Inventories are computed at standard costs which approximate actual costs and are valued at the lower of cost or net realizable value based on the first-in, first-out method. Cadence’s inventories include high technology parts and components for complex emulation and prototyping hardware systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to manage the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term. Cadence’s policy is to reserve for inventory in excess of 12-month demand or for other known obsolescence or realization issues.
Property, Plant and Equipment	Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows: Computer equipment and related software 2-7 years Buildings 25-32 years Leasehold improvements Shorter of the lease term or the estimated useful life Building improvements and land improvements Up to 32 years Furniture and fixtures 3-5 years Equipment 3-5 years Cadence capitalizes certain costs of software developed for internal use. Capitalization of software developed for internal use begins at the application development phase of the project. Amortization begins when the computer software is substantially complete and ready for its intended use. Amortization is recorded on a straight-line basis over the estimated useful life. Capitalized costs were not material during fiscal 2021, 2020 or 2019. Cadence recorded depreciation and amortization expense of $71.2 million, $67.6 million and $63.3 million during fiscal 2021, 2020 and 2019, respectively, for property, plant and equipment.
Software Development Costs	Software development costs are capitalized beginning when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence’s products has typically been of short duration. Costs incurred during fiscal 2021, 2020 and 2019 were not material.
Deferred Sales Commisions	Cadence records an asset for the incremental costs of obtaining a contract with a customer, including direct sales commissions that are earned upon execution of the contract. Cadence uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and renewals and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two to three years for Cadence’s software arrangements and upon delivery for its hardware and IP arrangements. Incremental costs related to initial contracts and renewals are amortized over the period of the arrangement in each case because Cadence pays the same commission rate for both new contracts and renewals. Deferred sales commissions are tested for impairment on an ongoing basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognized to the extent that the amount of deferred sales commission exceeds the remaining expected gross margin (remaining revenue less remaining direct costs) on the goods and services to which the deferred sales commission relates. Total capitalized costs were $43.9 million and $36.7 million as of January 1, 2022, and January 2, 2021, respectively, and are included in other assets in Cadence’s consolidated balance sheet. Amortization of these assets was $40.1 million, $34.6 million and $29.4 million during fiscal 2021, 2020 and 2019, respectively, and is included in sales and marketing expense in Cadence’s consolidated income statement.
Goodwill	Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence’s single reporting unit may be less than its carrying amount. To assess for impairment, Cadence compares the estimated fair value of its single reporting unit to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired and no further analysis is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to record an impairment charge.
Long-lived Assets, Including Acquired Intangibles	Cadence’s long-lived assets consist of property, plant and equipment, and acquired intangibles. Acquired intangibles consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, capitalized software, and in-process research and development. These acquired intangibles are acquired through business combinations or direct purchases. Acquired intangibles with definite lives are amortized on a straight-line basis over the estimated economic life of the underlying products and technologies, which range from three years to fifteen years. Acquired intangibles with indefinite lives, or in-process technology, consists of projects that had not reached technological feasibility by the date of acquisition. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the assets might be impaired. Cadence reviews its long-lived assets, including acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value.
Lessee Considerations	Lessee Considerations Cadence has operating leases primarily consisting of facilities with remaining lease terms of approximately one year to fourteen years. Cadence has options to terminate many of its leases early. The lease term represents the period up to the early termination date unless it is reasonably certain that Cadence will not exercise the early termination option. For certain leases, Cadence has options to extend the lease term for additional periods ranging from one year to ten years. Renewal options are not considered in the remaining lease term unless it is reasonably certain that Cadence will exercise such options. At inception of a contract, Cadence determines an arrangement contains a lease if the arrangement conveys the right to use an identified asset and Cadence obtains substantially all of the economic benefits from the asset and has the ability to direct the use of the asset. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered into or reassessed after the adoption of Topic 842, Cadence combines the lease and non-lease components in determining the lease liabilities and right-of-use (“ROU”) assets. Non-lease components primarily include common-area maintenance and other management fees. Operating lease expense is generally recognized evenly over the term of the lease. Payments under Cadence's lease agreements are primarily fixed; however, certain agreements contain rental payments that are adjusted periodically based on changes in consumer price and other indices. Changes to payments resulting from changes in indices are expensed as incurred and not included in the measurement of lease liabilities and ROU assets. Cadence’s lease agreements do not provide an implicit borrowing rate, therefore an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. The incremental borrowing rate represents a comparable rate to borrow on a collateralized basis over a similar term and in the economic environment where the leased asset is located. Cadence used the incremental borrowing rate on the effective date of adoption of Topic 842 for all leases that commenced prior to that date.
Lessor Considerations	Lessor Considerations Although most of Cadence’s revenue from its hardware business comes from sales of hardware, Cadence also leases its hardware products to some customers. Cadence determines the existence of a lease when the customer controls the use of the identified hardware for a period of time defined in the lease agreement. Cadence’s leases range in duration up to three years with payments generally collected in equal quarterly installments. Cadence’s leases do not include termination rights or variable pricing and typically do not include purchase rights at the end of the lease. Short-term leases are usually less than two years and are classified as operating leases with revenue recognized and depreciation expensed on a straight-line basis over the term of the lease. Long-term leases are typically for three years and are classified as sales-type leases with revenue and cost of sales recognized upon installation.
Investments in Equity Securities	Cadence’s investments in marketable equity securities are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence records realized and unrealized holding gains or losses as part of other income, net in the consolidated income statements. Cadence’s non-marketable investments include its investments in privately held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using the measurement alternative when the fair value of the investment is not readily determinable and Cadence does not have the ability to exercise significant influence or the equity method of accounting when it is determined that Cadence has the ability to exercise significant influence. For investments accounted for using the equity method of accounting, Cadence records its proportionate share of the investee’s income or loss, net of the effects of any basis differences, to other income, net on a one-quarter lag in Cadence’s consolidated income statements.
Derivative Financial Instruments	Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income, net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less.
Nonqualified Deferred Compensation Trust	Executive officers, senior management and members of Cadence’s Board of Directors may elect to defer compensation payable to them under Cadence’s Nonqualified Deferred Compensation Plan (“NQDC”). Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. The selected investments held in the NQDC accounts are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income, net. These securities are classified in other assets in the consolidated balance sheets because they are not available for Cadence’s use in its operations. Cadence’s obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements.
Treasury Stock	Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders’ equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of retained earnings in the consolidated statements of stockholders’ equity. There were no losses recorded as a component of retained earnings by Cadence on the reissuance of treasury stock during fiscal 2021, 2020 or 2019.
Revenue from Contract with Customer	Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which Cadence expects to be entitled in exchange for promised goods or services. Cadence’s performance obligations are satisfied either over time or at a point in time. In any fiscal year, between 85% and 90% of revenue is characterized as recurring revenue. Revenue characterized as recurring includes revenue recognized over time from Cadence’s software arrangements, services, royalties, maintenance on IP licenses and hardware, and operating leases of hardware and revenue recognized at varying points in time over the term of our IP Access Agreements (“IPAA”) that include non-cancellable commitments from customers. The remainder of Cadence’s revenue is recognized at a point in time and is characterized as up-front revenue. Up-front revenue is primarily generated by sales of emulation and prototyping hardware and individual IP licenses. Product and maintenance revenue includes Cadence’s licenses of software and IP, sales of emulation hardware and the related maintenance on these licenses and sales. Services revenue includes revenue received for performing engineering services (which are generally not related to the functionality of other licensed products), customized IP on a fixed fee basis, and sales from cloud-based solutions that provide customers with software and services over a period of time. Cadence enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, Cadence allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its SSP. Cadence generates revenue from contracts with customers and applies judgement in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities. Software Revenue Recognition Cadence’s time-based license arrangements grant customers the right to access and use all of the licensed products at the outset of an arrangement and updates are generally made available throughout the entire term of the arrangement, which is generally two to three years. Cadence’s updates provide continued access to evolving technology as customers’ designs migrate to more advanced nodes and as its customers’ technological requirements evolve. In addition, certain time-based license arrangements include remix rights and unspecified additional products that become commercially available during the term of the agreement. Payments are generally received in equal or near equal installments over the term of the agreement. Multiple software licenses, related updates, and technical support in these time-based arrangements constitute a single, combined performance obligation and revenue is recognized over the term of the license, commencing upon the later of the effective date of the arrangement or transfer of the software license. Remix rights are not an additional promised good or service in the contract, and where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer. Hardware Revenue Recognition Cadence generally has two performance obligations in arrangements involving the sale or lease of hardware products. The first performance obligation is to transfer the hardware product (which includes software integral to the functionality of the hardware product). The second performance obligation is to provide maintenance on hardware and its embedded software, which includes rights to technical support, hardware repairs and software updates that are all provided over the same term and have the same time-based pattern of transfer to the customer. The transaction price allocated to the hardware product is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. Cadence has concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. The transaction price allocated to maintenance is recognized as revenue ratably over the maintenance term. Payments for hardware contracts are generally received upon delivery of the hardware product. Shipping and handling costs are considered fulfillment costs and are included in cost of product and maintenance in Cadence’s consolidated income statements. IP Revenue Recognition Cadence generally licenses IP under nonexclusive license agreements that provide usage rights for specific designs. In addition, for certain of Cadence’s IP license agreements, royalties are collected as customers ship their own products that incorporate Cadence IP. These arrangements generally have two performance obligations—transferring the licensed IP and associated maintenance, which includes rights to technical support, and software updates that are all provided over the maintenance term and have a time-based pattern of transfer to the customer. Some customers enter into a non-cancellable 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. Revenue allocated to the IP license is recognized at a point in time upon the later of the delivery of the IP or the beginning of the license period and revenue allocated to the maintenance is recognized over the maintenance term. Royalties are recognized as revenue in the quarter in which the applicable Cadence customer ships its products that incorporate Cadence IP. Payments for IP contracts are generally received upon delivery of the IP. Cadence customizes certain IP and revenue related to this customization is recognized as services revenue as described below. Services Revenue Recognition Revenue from service contracts is recognized over time, generally using costs incurred or hours expended to measure progress. Cadence has a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. Payments for services are generally due upon milestones in the contract or upon consumption of the hourly resources.
Stock-Based Compensation	Cadence recognizes the cost of awards of equity instruments granted to employees in exchange for their services as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period, which is typically the vesting period. Cadence recognizes stock-based compensation expense on the straight-line method for awards that only contain a service condition and on the graded-vesting method for awards that contain both a service and performance condition. Cadence recognizes the impact of forfeitures on stock-based compensation expense as they occur. The fair value of stock options and purchase rights issued under Cadence’s Employee Stock Purchase Plan (“ESPP”) are calculated using the Black-Scholes option pricing model. The computation of the expected volatility assumption used for new awards is based on a weighting of historical and implied volatilities. When determining the expected term, Cadence reviews historical employee exercise behavior from options having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes for the comparable term in effect at the time of grant. The expected dividend yield used in the calculation is zero because Cadence has not historically paid and currently does not expect to pay dividends in the foreseeable future.
Advertising	Cadence expenses the costs of advertising as incurred. Total advertising expense, including marketing programs and events, was $7.5 million, $7.1 million and $8.4 million during fiscal 2021, 2020 and 2019, respectively, and is included in marketing and sales in the consolidated income statements.
Restructuring Charges	Cadence records personnel-related restructuring charges with termination benefits when the costs are both probable and estimable. Cadence records personnel-related restructuring charges with non-customary termination benefits when the plan has been communicated to the affected employees. Cadence records facilities-related restructuring charges in the period in which the affected facilities are vacated. In connection with facilities-related restructuring plans, Cadence has made a number of estimates and assumptions related to losses on excess facilities that have been vacated or consolidated, particularly the timing of subleases and sublease terms. Closure and space reduction costs included in the restructuring charges include payments required under leases less any applicable estimated sublease income after the facilities are abandoned, lease buyout costs and certain contractual costs to maintain facilities during the period after abandonment. Cadence records estimated provisions for termination benefits and outplacement costs along with other personnel-related restructuring costs, asset impairments related to abandoned assets and other costs associated with the restructuring plan. Cadence regularly evaluates the adequacy of its restructuring liabilities and adjusts the balances based on actual costs incurred or changes in estimates and assumptions. Subsequent adjustments to restructuring accruals are classified as restructuring in the consolidated income statements.
Accounting for Income Taxes	Cadence accounts for the effect of income taxes in its consolidated financial statements using the asset and liability method. This process involves estimating actual current tax liabilities together with assessing carryforwards and temporary differences resulting from differing treatment of items, such as depreciation, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, measured using enacted tax rates expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. Cadence accounts for the United States global intangible low-taxed income as a period expense. Cadence then records a valuation allowance to reduce the deferred tax assets to the amount that Cadence believes is more likely than not to be realized based on its judgment of all available positive and negative evidence. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. This assessment, which is completed on a taxing jurisdiction basis, takes into account a number of types of evidence, including the following: • the nature and history of current or cumulative financial reporting income or losses; • sources of future taxable income; • the anticipated reversal or expiration dates of the deferred tax assets; and • tax planning strategies. Cadence takes a two-step approach to recognizing and measuring the financial statement benefit of uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement of the audit. Cadence classifies interest and penalties on unrecognized tax benefits as income tax expense or benefit. For additional discussion of income taxes, see Note 8 in the notes to the consolidated financial statements.

Accounting Policies (Tables)

Accounting Policies (Tables)	12 Months Ended
	Jan. 01, 2022
Accounting Policies [Abstract]
Property, Plant and Equipment [Table Text Block]	Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows: Computer equipment and related software 2-7 years Buildings 25-32 years Leasehold improvements Shorter of the lease term or the estimated useful life Building improvements and land improvements Up to 32 years Furniture and fixtures 3-5 years Equipment 3-5 years

Debt (Tables)

Debt (Tables)	12 Months Ended
	Jan. 01, 2022
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of January 1, 2022 and January 2, 2021 was as follows: January 1, 2022 January 2, 2021 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ — $ — $ — 2024 Notes 350,000 (2,412) 347,588 350,000 (3,207) 346,793 Total outstanding debt $ 350,000 $ (2,412) $ 347,588 $ 350,000 $ (3,207) $ 346,793

Receivables, net (Tables)

Receivables, net (Tables)	12 Months Ended
	Jan. 01, 2022
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of January 1, 2022 and January 2, 2021 were as follows: As of January 1, January 2, (In thousands) Accounts receivable $ 185,599 $ 196,990 Unbilled accounts receivable 155,689 144,364 Long-term receivables 5,098 3,655 Total receivables 346,386 345,009 Less allowance for doubtful accounts (3,692) (2,867) Total receivables, net $ 342,694 $ 342,142
Roll forward of allowance for doubtful accounts	Cadence’s provisions for losses on its accounts receivable during fiscal 2021, 2020 and 2019 were as follows: Balance at Beginning of Period* Charged to Costs and Expenses Charged to Other Accounts Uncollectible Accounts Written Off, Net Balance at End of Period Year ended January 1, 2022 $ 2,867 $ 525 $ 780 $ (480) $ 3,692 Year ended January 2, 2021 2,868 1,628 225 (1,854) 2,867 Year ended December 28, 2019 $ 3,936 $ 632 $ — $ (3,699) $ 869 _____________ * Beginning balance for the year ended January 2, 2021 reflects the cumulative-effect adjustment recorded in connection with the adoption of ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” on the first day of fiscal 2020.

Revenue (Tables)

Revenue (Tables)	12 Months Ended
	Jan. 01, 2022
Revenue from Contract with Customer [Abstract]
Revenue from external customers by product category	The following table shows the percentage of product and related maintenance revenue contributed by each of Cadence’s five product categories and services for fiscal 2021, 2020 and 2019: 2021 2020 2019 Custom IC Design and Simulation 23 % 25 % 25 % Digital IC Design and Signoff 29 % 29 % 30 % Functional Verification, including Emulation and Prototyping Hardware* 24 % 22 % 23 % IP 13 % 14 % 13 % System Design and Analysis 11 % 10 % 9 % Total 100 % 100 % 100 % _____________ * Includes immaterial amount of revenue accounted for under leasing arrangements.
Contract assets and deferred revenue	Cadence’s contract balances as of January 1, 2022 and January 2, 2021 were as follows: As of January 1, January 2, (In thousands) Contract assets $ 6,811 $ 9,709 Deferred revenue 655,090 553,921

Acquisitions (Tables)

Acquisitions (Tables)	12 Months Ended
	Jan. 01, 2022
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 with Cadence’s acquisition of NUMECA based on their respective estimated fair values on the acquisition date as follows: Acquisition Date Fair Value (In thousands) Current assets $ 16,423 Goodwill 133,077 Acquired intangibles 72,200 Other long-term assets 6,928 Total assets acquired 228,628 Current liabilities 9,951 Long-term liabilities 20,475 Total liabilities assumed 30,426 Total purchase consideration $ 198,202
Schedule of Business Acquisitions, by Acquisition	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 $ 59,100 13.7 years Agreements and relationships 28,900 13.7 years Tradenames, trademarks and patents 4,600 14.3 years Total acquired intangibles with definite lives $ 92,600 13.7 years

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangibles (Tables)	12 Months Ended
	Jan. 01, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during fiscal 2021 and 2020 were as follows: Gross Carrying (In thousands) Balance as of December 28, 2019 $ 661,856 Goodwill resulting from acquisitions 120,564 Effect of foreign currency translation (333) Balance as of January 2, 2021 782,087 Goodwill resulting from acquisitions 154,362 Effect of foreign currency translation (8,091) Balance as of January 1, 2022 $ 928,358
Acquired intangibles with finite lives (excluding goodwill), excluding intangibles fully amortized at end of prior fiscal year	Acquired intangibles as of January 1, 2022 were as follows, excluding intangibles that were fully amortized as of January 2, 2021: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 405,481 $ (254,599) $ 150,882 Agreements and relationships 205,057 (130,187) 74,870 Tradenames, trademarks and patents 10,666 (3,153) 7,513 Total acquired intangibles $ 621,204 $ (387,939) 233,265 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 $ 561,451 $ (350,861) $ 210,590
Amortization of acquired intangibles	Amortization expense for fiscal 2021, 2020 and 2019, by consolidated income statement caption, was as follows: 2021 2020 2019 (In thousands) Cost of product and maintenance $ 47,576 $ 46,184 $ 40,951 Amortization of acquired intangibles 19,640 18,009 12,128 Total amortization of acquired intangibles $ 67,216 $ 64,193 $ 53,079
Estimated amortization expense	As of January 1, 2022, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter: (In thousands) 2022 $ 50,673 2023 35,142 2024 33,383 2025 22,741 2026 17,661 Thereafter 73,665 Total estimated amortization expense $ 233,265

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jan. 01, 2022
Income Tax Disclosure [Abstract]
Income before provision for income taxes	Cadence’s income before provision (benefit) for income taxes included income from the United States and from foreign subsidiaries for fiscal 2021, 2020 and 2019, was as follows: 2021 2020 2019 (In thousands) United States $ 376,037 $ 256,032 $ 139,306 Foreign subsidiaries 392,398 376,716 339,662 Total income before provision (benefit) for income taxes $ 768,435 $ 632,748 $ 478,968
Components of income taxes provision	Cadence’s provision (benefit) for income taxes was comprised of the following items for fiscal 2021, 2020 and 2019: 2021 2020 2019 (In thousands) Current: Federal $ 19,957 $ 15,083 $ 15,282 State and local 25,246 6,401 2,716 Foreign 70,455 46,737 48,729 Total current 115,658 68,221 66,727 Deferred: Federal (16,415) (11,155) (9,001) State and local (30,406) (24,186) 6,593 Foreign 3,643 9,224 (574,330) Total deferred (43,178) (26,117) (576,738) Total provision (benefit) for income taxes $ 72,480 $ 42,104 $ (510,011)
Summary of income tax reconciliation	The provision for income taxes differs from the amount estimated by applying the United States statutory federal income tax rates of 21% to income before provision (benefit) for income taxes for fiscal 2021, 2020, and 2019 as follows: 2021 2020 2019 (In thousands) Provision computed at federal statutory income tax rate $ 161,880 $ 132,877 $ 100,583 State and local income tax, net of federal tax effect 24,640 20,936 23,221 Intercompany transfers of intangible property rights — — (575,618) Foreign income tax rate differential (26,887) (32,589) (37,786) Foreign-derived intangible income deduction (22,050) (3,762) (1,201) U.S. tax on foreign entities 51,112 43,615 57,225 Stock-based compensation (55,091) (51,226) (29,785) Change in deferred tax asset valuation allowance (8,262) (9,101) 16,796 Tax credits (90,054) (89,684) (87,793) Non-deductible research and development expense 4,443 5,163 4,363 Withholding taxes 23,495 17,189 15,865 Other 9,254 8,686 4,119 Provision (benefit) for income taxes $ 72,480 $ 42,104 $ (510,011) Effective tax rate 9 % 7 % (106) %
Components of deferred tax assets and liabilities	The components of deferred tax assets and liabilities consisted of the following as of January 1, 2022 and January 2, 2021: As of January 1, January 2, (In thousands) Deferred tax assets: Tax credit carryforwards $ 147,248 $ 197,436 Reserves and accruals 72,287 60,272 Intangible assets 568,199 578,267 Capitalized research and development expense for income tax purposes 34,467 39,427 Operating loss carryforwards 6,630 5,935 Deferred income 42,753 21,170 Capital loss carryforwards 16,957 16,944 Stock-based compensation costs 17,690 14,656 Depreciation and amortization 5,005 4,402 Investments 6,833 2,521 Lease liability 27,362 31,278 Prepaid expenses 53,893 — Total deferred tax assets 999,324 972,308 Valuation allowance (108,158) (116,419) Net deferred tax assets 891,166 855,889 Deferred tax liabilities: Intangible assets (55,178) (44,549) Undistributed foreign earnings (45,460) (41,957) ROU assets (27,362) (31,278) Other (8,528) (10,749) Total deferred tax liabilities (136,528) (128,533) Total net deferred tax assets $ 754,638 $ 727,356
Summary of operating loss carryforward	As of January 1, 2022, Cadence’s operating loss carryforwards were as follows: Amount Expiration Periods (In thousands) Federal $ 428 from 2027 through 2033 California 27,044 from 2025 through 2038 Other states (tax effected, net of federal benefit) 1,174 from 2022 through 2037 Foreign (tax effected) 3,478 from 2030 through indefinite
Summary of tax credit carryforwards	As of January 1, 2022, Cadence had tax credit carryforwards of: Amount Expiration Periods (In thousands) Federal* $ 46,743 from 2029 through 2041 California 77,651 indefinite Other states 14,361 from 2025 through indefinite Foreign 27,814 from 2037 through indefinite _____________ *Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period.
Earliest tax years open to examination by jurisdiction	As of January 1, 2022, Cadence’s earliest tax years that remain open to examination and the assessment of additional tax include: Jurisdiction Earliest Tax Year Open to Examination United States – Federal 2017 United States – California 2015 Ireland 2017 Israel 2016 Korea 2016
Unrecognized tax benefits roll forward	The changes in Cadence’s gross amount of unrecognized tax benefits during fiscal 2021, 2020 and 2019 are as follows: 2021 2020 2019 (In thousands) Unrecognized tax benefits at the beginning of the fiscal year $ 113,021 $ 106,041 $ 101,857 Gross amount of the increases (decreases) in unrecognized tax benefits of tax positions taken during a prior year* 15,414 5,037 (3,143) Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year 5,100 3,344 8,951 Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes (270) (1,316) (380) Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations (2,778) (676) (1,692) Effect of foreign currency translation 43 591 448 Unrecognized tax benefits at the end of the fiscal year $ 130,530 $ 113,021 $ 106,041 Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence’s effective tax rate $ 79,654 $ 66,010 $ 61,527 _____________ * Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions
Interest and penalties recognized in consolidated income statements and balance sheets	The total amounts of interest, net of tax, and penalties recognized in the consolidated income statements as provision (benefit) for income taxes for fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands) Interest $ 1,171 $ 473 $ 490 Penalties (11) (3) 19 The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of January 1, 2022 and January 2, 2021 were as follows: As of January 1, January 2, (In thousands) Interest $ 4,921 $ 3,555 Penalties — 12

Stock Compensation Plans and _2

Stock Compensation Plans and Stock Based Compensation (Tables)	12 Months Ended
	Jan. 01, 2022
Share-based Payment Arrangement [Abstract]
Stock based compensation expense and allocation by share based payment award	Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the ESPP during fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands) Stock options $ 9,051 $ 8,062 $ 6,806 Restricted stock 181,946 173,193 164,078 ESPP 19,093 16,013 10,663 Total stock-based compensation expense $ 210,090 $ 197,268 $ 181,547 Income tax benefit $ 33,958 $ 31,857 $ 30,118
Stock based compensation expense and allocation by cost	Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2021, 2020 and 2019 as follows: 2021 2020 2019 (In thousands) Cost of product and maintenance $ 4,161 $ 2,922 $ 2,759 Cost of services 3,375 3,720 3,510 Marketing and sales 43,264 42,096 39,088 Research and development 131,247 124,999 114,656 General and administrative 28,043 23,531 21,534 Total stock-based compensation expense $ 210,090 $ 197,268 $ 181,547
Fair value of options granted and the weighted-average assumptions	The weighted average grant date fair value of options granted and the weighted average assumptions used in the model for fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 Dividend yield None None None Expected volatility 31.7 % 25.1 % 24.4 % Risk-free interest rate 1.02 % 1.36 % 2.47 % Expected term (in years) 4.8 4.8 4.8 Weighted average fair value of options granted $ 46.10 $ 19.38 $ 14.58
Summary of changes in stock options outstanding under equity incentive plans	A summary of the changes in stock options outstanding under Cadence’s equity incentive plans during fiscal 2021 is presented below: Weighted Average Weighted Average Remaining Contractual Terms Aggregate Intrinsic Shares Exercise Price (Years) Value (In thousands) (In thousands) Options outstanding as of January 2, 2021 3,934 $ 36.72 Granted 612 159.25 Exercised (1,066) 22.37 Forfeited (61) 61.38 Options outstanding as of January 1, 2022 3,419 $ 62.69 3.5 $ 422,830 Options vested as of January 1, 2022 2,425 $ 39.16 2.7 $ 356,981
Intrinsic value of and cash received from options exercised	The total intrinsic value of and cash received from options exercised during fiscal 2021, 2020 and 2019 was: 2021 2020 2019 (In thousands) Intrinsic value of options exercised $ 129,403 $ 109,193 $ 51,625 Cash received from options exercised 23,844 26,474 14,553
Stock-based compensation expense related to performance-based restricted stock grants	Stock-based compensation expense related to performance-based and market-based performance restricted stock grants for fiscal 2021, 2020 and 2019 was as follows: 2021 2020 2019 (In thousands) Stock-based compensation expense related to performance-based restricted stock $ 16,225 $ 14,859 $ 12,640 Stock-based compensation expense related to market-based performance stock awards 6,453 8,335 7,019
Summary of the changes in restricted stock outstanding under Cadence's equity incentive plans	A summary of the changes in restricted stock outstanding under Cadence’s equity incentive plans during fiscal 2021 is presented below: Weighted Average Grant Date Weighted Average Remaining Vesting Terms Aggregate Intrinsic Shares Fair Value (Years) Value (In thousands) (In thousands) Unvested shares as of January 2, 2021 6,239 $ 63.12 Granted 1,688 141.97 Vested (2,570) 61.61 Forfeited (426) 75.92 Unvested shares as of January 1, 2022 4,931 $ 89.91 1.2 $ 918,769
Total fair value of restricted stock awards that vested	The total fair value realized by employees upon vesting of restricted stock during fiscal 2021, 2020 and 2019 was: 2021 2020 2019 (In thousands) Fair value of restricted stock realized upon vesting $ 365,298 $ 358,261 $ 298,320
Weighted-average grant date fair value of purchase rights granted under ESPP and weighted average assumptions used in model	The weighted average grant date fair value of purchase rights granted under the ESPP and the weighted average assumptions used in the model for fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 Dividend yield None None None Expected volatility 31.5 % 32.6 % 27.9 % Risk-free interest rate 0.07 % 0.80 % 2.23 % Expected term (in years) 0.5 0.5 0.5 Weighted average fair value of options granted $ 33.77 $ 23.08 $ 14.37
Shares of common stock issued under Employee Stock Purchase Plan	Shares of common stock issued under the ESPP for fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands, except per share amounts) Cadence shares purchased under the ESPP 624 785 988 Cash received for the purchase of shares under the ESPP $ 63,932 $ 48,328 $ 38,290 Weighted average purchase price per share $ 102.41 $ 61.55 $ 38.74
Summary of common stock reserved for future issuance	As of January 1, 2022, Cadence had reserved the following shares of authorized but unissued common stock for future issuance: Shares (In thousands) Employee equity incentive plans* 19,006 Employee stock purchase plans 4,630 Directors stock plans* 622 Total 24,258 _____________ *Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units.

Stock Repurchase Programs (Tabl

Stock Repurchase Programs (Tables)	12 Months Ended
	Jan. 01, 2022
Equity [Abstract]
Share repurchased and the total cost of shares repurchased	The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands) Shares repurchased 4,401 4,247 4,841 Total cost of repurchased shares $ 612,297 $ 380,064 $ 306,148

Net Income Per Share (Tables)

Net Income Per Share (Tables)	12 Months Ended
	Jan. 01, 2022
Earnings Per Share [Abstract]
Basic and diluted net income per share	The calculations for basic and diluted net income per share for fiscal 2021, 2020 and 2019 are as follows: 2021 2020 2019 (In thousands, except per share amounts) Net income $ 695,955 $ 590,644 $ 988,979 Weighted average common shares used to calculate basic net income per share 273,504 273,728 273,239 Stock-based awards 5,354 5,913 7,276 Weighted average common shares used to calculate diluted net income per share 278,858 279,641 280,515 Net income per share – basic $ 2.54 $ 2.16 $ 3.62 Net income per share – diluted $ 2.50 $ 2.11 $ 3.53
Potential shares of Cadence's common stock excluded	The following table presents shares of Cadence’s common stock outstanding for fiscal 2021, 2020 and 2019 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: 2021 2020 2019 (In thousands) Long-term market-based awards — 383 1,097 Options to purchase shares of common stock 214 201 359 Non-vested shares of restricted stock 41 58 727 Total potential common shares excluded 255 642 2,183

Leases (Tables)

Leases (Tables)	12 Months Ended
	Jan. 01, 2022
Leases [Abstract]
Lease, Cost	Operating lease expense, which includes immaterial amounts of short-term leases, variable lease costs and sublease income, was as follows during fiscal 2021, 2020 and 2019: 2021 2020 2019 (In thousands) Operating lease expense $ 43,210 $ 39,731 $ 34,709
Schedule of supplemental balance sheet information related to leases	Additional activity related to Cadence’s leases during fiscal 2021 and 2020 was as follows: 2021 2020 (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 50,151 $ 34,723 ROU assets obtained in exchange for operating lease obligations 31,813 63,057 ROU lease assets and lease liabilities for Cadence’s operating leases were recorded in the consolidated balance sheet as follows: As of January 1, January 2, (In thousands) Other assets $ 130,124 $ 133,354 Accounts payable and accrued liabilities 25,271 33,920 Other long-term liabilities 107,121 113,916 Total lease liabilities $ 132,392 $ 147,836 Weighted average remaining lease term (in years) 6.5 6.7 Weighted average discount rate 3.6 % 3.8 %
Table of lease liability maturity	Future lease payments included in the measurement of lease liabilities on the consolidated balance sheet as of January 1, 2022, for the following five fiscal years and thereafter were as follows: Operating Leases (In thousands) 2022 $ 28,471 2023 26,828 2024 23,271 2025 19,715 2026 13,298 Thereafter 36,770 Total future lease payments 148,353 Less imputed interest (15,961) Total lease liability balance $ 132,392

Balance Sheet Components (Table

Balance Sheet Components (Tables)	12 Months Ended
	Jan. 01, 2022
Disclosure Text Block Supplement [Abstract]
Summary of certain balance sheet components	A summary of certain balance sheet components as of January 1, 2022 and January 2, 2021 is as follows: As of January 1, January 2, (In thousands) Inventories: Raw materials $ 88,629 $ 63,647 Finished goods 27,092 12,309 Inventories $ 115,721 $ 75,956 Prepaid expenses and other: Prepaid income taxes $ 85,320 $ 55,366 Other prepaid expenses and other assets 88,192 80,346 Prepaid expenses and other $ 173,512 $ 135,712 Property, plant and equipment: Computer equipment and related software $ 636,069 $ 616,836 Buildings 126,557 126,666 Land 55,842 55,848 Leasehold, building and land improvements 137,778 129,155 Furniture and fixtures 27,798 27,064 Equipment 40,603 38,732 In-process capital assets 13,830 10,774 Total cost 1,038,477 1,005,075 Less: Accumulated depreciation and amortization (732,566) (693,950) Property, plant and equipment, net $ 305,911 $ 311,125 Other assets: Non-marketable investments $ 127,501 $ 132,226 ROU lease assets 130,124 133,354 Other long-term assets 181,601 170,526 Other assets $ 439,226 $ 436,106 Accounts payable and accrued liabilities: Payroll and payroll-related accruals $ 254,090 $ 219,289 Customer deposits 64,117 27,888 Other accrued operating liabilities 99,076 102,774 Accounts payable and accrued liabilities $ 417,283 $ 349,951 Other long-term liabilities: Operating lease liabilities $ 107,121 $ 113,916 Other accrued liabilities 118,542 93,186 Other long-term liabilities $ 225,663 $ 207,102

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Jan. 01, 2022
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 January 1, 2022 and January 2, 2021: Fair Value Measurements as of January 1, 2022: Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 658,474 $ 658,474 $ — $ — Marketable equity securities 5,956 5,956 — — Securities held in NQDC trust 56,165 56,165 — — Total Assets $ 720,595 $ 720,595 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts 306 — 306 — Total Liabilities $ 306 $ — $ 306 $ — 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.

Restructuring and Other Charg_2

Restructuring and Other Charges (Tables)	12 Months Ended
	Jan. 01, 2022
Restructuring and Related Activities [Abstract]
Restructuring reserve rollforward by major type of cost	The following table presents activity for Cadence’s restructuring plans during fiscal 2021, 2020 and 2019: Severance and Benefits Excess Facilities Total (In thousands) Balance, December 29, 2018 $ 11,176 $ 848 $ 12,024 Restructuring 8,649 (28) 8,621 Cash payments (10,714) (420) (11,134) Effect of foreign currency translation 118 9 127 Balance, December 28, 2019 $ 9,229 $ 409 $ 9,638 Restructuring 7,476 1,739 9,215 Cash payments (9,424) (773) (10,197) Effect of foreign currency translation 40 (3) 37 Balance, January 2, 2021 $ 7,321 $ 1,372 $ 8,693 Restructuring (1,480) 432 (1,048) Cash payments (5,774) (1,761) (7,535) Effect of foreign currency translation (67) — (67) Balance, January 1, 2022 $ — $ 43 $ 43

Other Income, Net (Tables)

Other Income, Net (Tables)	12 Months Ended
	Jan. 01, 2022
Other Income and Expenses [Abstract]
Other income, net	Cadence’s other income, net, for fiscal 2021, 2020 and 2019 was as follows: 2021 2020 2019 (In thousands) Interest income $ 2,634 $ 3,817 $ 9,509 Gains (losses) on marketable equity investments 1,504 (148) 713 Losses on non-marketable equity investments (924) (4,806) (4,802) Gains on securities in NQDC trust 6,163 4,881 5,402 Gains (losses) on foreign exchange (2,789) 4,429 (4,111) Other expense, net (262) (228) (710) Total other income, net $ 6,326 $ 7,945 $ 6,001

Employee and Director Benefit_2

Employee and Director Benefit Plans (Tables)	12 Months Ended
	Jan. 01, 2022
Retirement Benefits [Abstract]
Contributions to defined contribution plans	Cadence’s total contributions made to these plans during fiscal 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands) Contributions to defined contribution plans $ 33,029 $ 27,152 $ 25,269

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	12 Months Ended
	Jan. 01, 2022
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated other comprehensive income net of tax	Accumulated other comprehensive loss was comprised of the following as of January 1, 2022, and January 2, 2021: As of January 1, January 2, (In thousands) Foreign currency translation loss $ (26,553) $ (11,130) Changes in defined benefit plan liabilities (6,758) (6,295) Total accumulated other comprehensive loss $ (33,311) $ (17,425)

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Jan. 01, 2022
Segment Reporting [Abstract]
Summary of revenue by geography	The following table presents a summary of revenue by geography for fiscal 2021, 2020 and 2019: 2021 2020 2019 (In thousands) Americas: United States $ 1,292,980 $ 1,096,263 $ 982,380 Other Americas 42,141 43,652 43,473 Total Americas 1,335,121 1,139,915 1,025,853 Asia: China 378,160 406,645 241,474 Other Asia 566,772 487,362 459,028 Total Asia 944,932 894,007 700,502 Europe, Middle East and Africa 523,390 469,804 433,314 Japan 184,801 179,165 176,650 Total $ 2,988,244 $ 2,682,891 $ 2,336,319
Summary of long-lived assets by geography	The following table presents a summary of property, plant and equipment by geography as of January 1, 2022, January 2, 2021 and December 28, 2019: As of January 1, January 2, December 28, (In thousands) Americas: United States $ 238,263 $ 248,292 $ 220,023 Other Americas 623 753 728 Total Americas 238,886 249,045 220,751 Asia: China 15,010 16,416 15,729 Other Asia 35,458 28,668 27,890 Total Asia 50,468 45,084 43,619 Europe, Middle East and Africa 16,033 16,304 10,474 Japan 524 692 1,011 Total $ 305,911 $ 311,125 $ 275,855

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Property, Plant and Equipment [Line Items]
Depreciation	$ 71.2	$ 67.6	$ 63.3
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	Shorter of the lease term or the estimated useful life
Minimum [Member] | Computer equipment and related software [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	2
Minimum [Member] | Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	25
Minimum [Member] | Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	3
Minimum [Member] | Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	3
Maximum [Member] | Computer equipment and related software [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	7
Maximum [Member] | Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	32
Maximum [Member] | Building improvements and land improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	32
Maximum [Member] | Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	5
Maximum [Member] | Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives description	5

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Deferred Sales Commissions (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Revenue from Contract with Customer [Abstract]
Capitalized contract costs, net	$ 43.9	$ 36.7
Amortization of capitalized contract costs	$ 40.1	$ 34.6	$ 29.4

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Long-lived Assets (Details)	12 Months Ended
	Jan. 01, 2022
Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	3 years
Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	15 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Leases (Details)	Jan. 01, 2022
Accounting Policies [Abstract]
Lessor, Operating Lease, Term of Contract	3 years
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, remaining lease term, operating leases	1 year
Lessee, Lease not yet commenced, renewal term, operating leases	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, remaining lease term, operating leases	14 years
Lessee, Lease not yet commenced, renewal term, operating leases	10 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Derivative Financial Instruments (Details)	12 Months Ended
	Jan. 01, 2022
Forward Contracts [Member]
Derivative [Line Items]
Maturity period of forward contracts	90 days

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Minimum [Member]
Revenue from External Customer [Line Items]
Revenue, as a percentage of total revenue, characterized as recurring	85.00%
Maximum [Member]
Revenue from External Customer [Line Items]
Revenue, as a percentage of total revenue, characterized as recurring		90.00%

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Other (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 28, 2019	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Reserve for inventory		inventory in excess of 12-month demand
Treasury stock reissued at lower than repurchase price		$ 0	$ 0	$ 0
Advertising expense	$ 8,400	$ 7,500	$ 7,100
Percentage of likelihood of tax benefit being realized upon effective settlement of audit		50.00%

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Oct. 09, 2014
Debt Instrument [Line Items]
Principal	$ 350,000	$ 350,000
Unamortized Discount	(2,412)	(3,207)
Carrying Value	347,588	346,793
Carrying Value	347,588	346,793
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Principal	350,000	350,000	$ 350,000
Unamortized Discount	(2,412)	(3,207)	$ (1,400)
Carrying Value	347,588	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	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Line of Credit Facility [Line Items]
Payment of debt issuance costs	$ 1,285	$ 0	$ 0
Debt covenant, acquisition amount triggering step up	250,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, current borrowing capacity	700,000
Credit facility, additional borrowing capacity available	350,000
Credit facility, maximum borrowing capacity	$ 1,050,000
Credit facility, maturity date	Jun. 30, 2026
Payment 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%
Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage	0.175%
Revolving Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, debit to EBITDA ratio	3.25
Debt covenant, pro forma leverage ratio	3
Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, debt to EBITDA ratio after step up triggered by acquisition	3.75
Debt 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%

Debt (Details Textual)

Debt (Details Textual) - USD ($) $ in Thousands	Oct. 09, 2014	Jan. 01, 2022	Jan. 02, 2021
Debt Instrument [Line Items]
Unamortized discount		$ 2,412	$ 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	2,412	$ 3,207
Debt issuance costs	$ 6,200
Fair value of Senior Notes		$ 376,400

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021		Dec. 29, 2019	Dec. 28, 2019	Dec. 29, 2018
Current and long-term receivables balances
Accounts receivable	$ 185,599	$ 196,990
Unbilled accounts receivable	155,689	144,364
Long-term receivables	5,098	3,655
Total receivables	346,386	345,009
Less allowance for doubtful accounts	(3,692)	(2,867)	[1]	$ (2,868)	$ (869)	$ (3,936)
Total receivables, net	$ 342,694	$ 342,142
[1]	Beginning balance for the year ended January 2, 2021 reflects the cumulative-effect adjustment recorded in connection with the adoption of ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” on the first day of fiscal 2020.

Receivables, Net (Details 1)

Receivables, Net (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022		Jan. 02, 2021		Dec. 28, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 2,867	[1]	$ 869		$ 3,936
Provisions for losses on receivables	525		1,628		632
Charged to other accounts	780		225		0
Uncollectible accounts written off, net	(480)		(1,854)		(3,699)
Balance at end of period	$ 3,692		$ 2,867	[1]	$ 869
[1]	Beginning balance for the year ended January 2, 2021 reflects the cumulative-effect adjustment recorded in connection with the adoption of ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” on the first day of fiscal 2020.

Revenue (Details Textual)

Revenue (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Revenue from Contract with Customer [Abstract]
Revenue recognized from deferred revenue during the period	$ 430.2	$ 345.9	$ 311.8
Unsatisfied performance obligations	4,400
Remaining performance obligation, amount from non-cancellable IP access agreements	$ 119.5
Percent of remaining performance obligations, current	55.00%
Revenue recognized from performance obligation satisfied in previous periods	$ 47.1	$ 51.2	$ 40.4

Revenue (Details)

Revenue (Details)		12 Months Ended
		Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group		100.00%	100.00%	100.00%
Custom IC Design and Simulation [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group		23.00%	25.00%	25.00%
Digital IC Design and Signoff [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group		29.00%	29.00%	30.00%
Functional Verification, including Emulation and Prototyping Hardware [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	[1]	24.00%	22.00%	23.00%
IP [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group		13.00%	14.00%	13.00%
System Design and Analysis [Member]
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group		11.00%	10.00%	9.00%
[1]	Includes immaterial amount of revenue accounted for under leasing arrangements

Revenue (Details 1)

Revenue (Details 1) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 6,811	$ 9,709
Deferred revenue	$ 655,090	$ 553,921

Acquisitions (Details Textual)

Acquisitions (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	Apr. 14, 2021	Feb. 23, 2021
Business Acquisition [Line Items]
Cash consideration to acquire businesses, net of cash acquired	$ 226,201	$ 197,562	$ 338
Goodwill	928,358	782,087	$ 661,856
Goodwill, Acquired During Period	154,362	120,564
NUMECA
Business Acquisition [Line Items]
Cash acquired					$ 9,600
Cash consideration to acquire businesses, net of cash acquired	188,600
Goodwill					133,077
Acquired intangibles					$ 72,200
Pointwise
Business Acquisition [Line Items]
Cash consideration to acquire businesses, net of cash acquired	$ 31,400
Goodwill				$ 16,700
Acquired intangibles				$ 16,700
AWR and Integrand
Business Acquisition [Line Items]
Cash consideration to acquire businesses, net of cash acquired		195,600
Cash acquired		$ 1,500
Acquired definite-lived intangible assets, weighted average useful life		9 years
Goodwill, Acquired During Period		$ 119,400
Net other identifiable assets and liabilities resulting from acquisitions		(25,100)
AWR and Integrand | Fair Value, Inputs, Level 3 [Member]
Business Acquisition [Line Items]
Acquired definite-lived intangible assets, fair value		$ 101,300

Acquisitions (Details 1)

Acquisitions (Details 1) - USD ($) $ in Thousands	Jan. 01, 2022	Feb. 23, 2021	Jan. 02, 2021	Dec. 28, 2019
Business Acquisition [Line Items]
Goodwill	$ 928,358		$ 782,087	$ 661,856
NUMECA
Business Acquisition [Line Items]
Current assets		$ 16,423
Goodwill		133,077
Acquired intangibles		72,200
Other long-term assets		6,928
Total assets acquired		228,628
Current liabilities		9,951
Long-term liabilities		20,475
Total liabilities assumed		30,426
Total purchase consideration		$ 198,202

Acquisitions (Details 2)

Acquisitions (Details 2) - Fiscal 2021 Acquisitions $ in Thousands	12 Months Ended
	Jan. 01, 2022USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 92,600
Acquired definite-lived intangible assets, weighted average useful life	13 years 8 months 12 days
Existing Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 59,100
Acquired definite-lived intangible assets, weighted average useful life	13 years 8 months 12 days
Agreements and Relationship [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 28,900
Acquired definite-lived intangible assets, weighted average useful life	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
Acquired definite-lived intangible assets, weighted average useful life	14 years 3 months 18 days

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Changes in the carrying amount of goodwill
Balance at beginning of period	$ 782,087	$ 661,856
Effect of foreign currency translation	(8,091)	(333)
Goodwill, Acquired During Period	154,362	120,564
Balance at end of period	$ 928,358	$ 782,087

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Accumulated amortization	$ (387,939)	$ (350,861)
Acquired intangibles, net	233,265
Intangible Assets, Gross (Excluding Goodwill)	621,204	561,451
Intangible Assets, Net (Excluding Goodwill)	233,265	210,590
Existing technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	405,481	370,838
Accumulated amortization	(254,599)	(230,654)
Acquired intangibles, net	150,882	140,184
Agreements and relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	205,057	180,023
Accumulated amortization	(130,187)	(113,629)
Acquired intangibles, net	74,870	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	10,666	10,590
Accumulated amortization	(3,153)	(6,578)
Acquired intangibles, net	$ 7,513	$ 4,012

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Amortization of acquired intangibles
Cost of product and maintenance	$ 47,576	$ 46,184	$ 40,951
Amortization of acquired intangibles	19,640	18,009	12,128
Total amortization of acquired intangibles	$ 67,216	$ 64,193	$ 53,079

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangibles (Details 3) $ in Thousands	Jan. 01, 2022USD ($)
Estimated amortization expense
2022	$ 50,673
2023	35,142
2024	33,383
2025	22,741
2026	17,661
Thereafter	73,665
Acquired intangibles, net	$ 233,265

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
United States	$ 376,037	$ 256,032	$ 139,306
Foreign subsidiaries	392,398	376,716	339,662
Income before provision (benefit) for income taxes	$ 768,435	$ 632,748	$ 478,968

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Current:
Federal	$ 19,957	$ 15,083	$ 15,282
State and local	25,246	6,401	2,716
Foreign	70,455	46,737	48,729
Total current	115,658	68,221	66,727
Deferred:
Federal	(16,415)	(11,155)	(9,001)
State and local	(30,406)	(24,186)	6,593
Foreign	3,643	9,224	(574,330)
Total deferred	(43,178)	(26,117)	(576,738)
Total provision (benefit) for income taxes	$ 72,480	$ 42,104	$ (510,011)

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Provision computed at federal statutory income tax rate	$ 161,880	$ 132,877	$ 100,583
State and local income tax, net of federal tax effect	24,640	20,936	23,221
Intercompany transfers of intangible property rights	0	0	(575,618)
Foreign income tax rate differential	(26,887)	(32,589)	(37,786)
Foreign-derived intangible income deduction	(22,050)	(3,762)	(1,201)
U.S. tax on foreign entities	51,112	43,615	57,225
Stock-based compensation	(55,091)	(51,226)	(29,785)
Change in deferred tax asset valuation allowance	(8,262)	(9,101)	16,796
Tax credits	(90,054)	(89,684)	(87,793)
Non-deductible research and development expense	4,443	5,163	4,363
Withholding taxes	23,495	17,189	15,865
Other	9,254	8,686	4,119
Total provision (benefit) for income taxes	$ 72,480	$ 42,104	$ (510,011)
Effective tax rate	9.00%	7.00%	(106.00%)

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Deferred tax assets:
Tax credit carryforwards	$ 147,248	$ 197,436
Reserves and accruals	72,287	60,272
Intangible assets	568,199	578,267
Capitalized research and development expense for income tax purposes	34,467	39,427
Operating loss carryforwards	6,630	5,935
Deferred income	42,753	21,170
Capital loss carryforwards	16,957	16,944
Stock-based compensation costs	17,690	14,656
Depreciation and amortization	5,005	4,402
Investments	6,833	2,521
Lease liability	27,362	31,278
Prepaid expenses	53,893	0
Total deferred tax assets	999,324	972,308
Valuation allowance	(108,158)	(116,419)	$ (125,500)
Net deferred tax assets	891,166	855,889
Deferred tax liabilities:
Intangible assets	(55,178)	(44,549)
Undistributed foreign earnings	(45,460)	(41,957)
ROU assets	(27,362)	(31,278)
Other	(8,528)	(10,749)
Total deferred tax liabilities	(136,528)	(128,533)
Total net deferred tax assets	$ 754,638	$ 727,356

Income Taxes (Details 4)

Income Taxes (Details 4) $ in Thousands	Jan. 01, 2022USD ($)
United States federal [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carry forwards	$ 428
Tax credit carryforward	46,743	[1]
California State [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carry forwards	27,044
Tax credit carryforward	77,651
States other than California [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carry forwards	1,174
Tax credit carryforward	14,361
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carry forwards	3,478
Tax credit carryforward	$ 27,814
[1]	Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period.

Income Taxes (Details 5)

Income Taxes (Details 5) - USD ($) $ in Thousands		12 Months Ended
		Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Unrecognized Tax Benefits
Unrecognized tax benefits at the beginning of the fiscal year		$ 113,021	$ 106,041	$ 101,857
Gross amount of the increases in unrecognized tax benefits of tax positions taken during the current year	[1]	15,414	5,037
Gross amount of the decreases in unrecognized tax benefits of tax positions taken during a prior year	[1]			(3,143)
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year		5,100	3,344	8,951
Amount of decreases in unrecognized tax benefits relating the settlements with taxing authorities, including the utilization of tax attributes		(270)	(1,316)	(380)
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations		(2,778)	(676)	(1,692)
Effect of foreign currency translation		43	591	448
Unrecognized tax benefits at the end of the fiscal year		130,530	113,021	106,041
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate		79,654	66,010	61,527
Interest and penalties recognized in Income Statements
Interest		1,171	473	490
Penalties		(11)	(3)	$ 19
Interest and penalties recognized in Balance Sheets
Interest		4,921	3,555
Penalties		$ 0	$ 12
[1]	Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Tax Examination [Line Items]
Change in deferred tax asset valuation allowance	$ (8,262,000)	$ (9,101,000)	$ 16,796,000
Intercompany transfers of intangible property rights	0	$ 0	(575,618,000)
Additional Income Taxes (Textual) [Abstract]
United States statutory federal income tax rate		21.00%
Deferred Tax Assets, Valuation Allowance	(108,158,000)	$ (116,419,000)	(125,500,000)
Increase (decrease) in valuation allowance on deferred tax assets	(8,300,000)	(9,100,000)	$ 16,800,000
Reasonably possible decrease in unrecognized tax benefits	20,600,000
CALIFORNIA
Income Tax Examination [Line Items]
Change in deferred tax asset valuation allowance		$ 22,200,000
MASSACHUSETTS
Income Tax Examination [Line Items]
Change in deferred tax asset valuation allowance	$ 10,500,000

Stock Compensation Plans and _3

Stock Compensation Plans and Stock Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 210,090	$ 197,268	$ 181,547
Income tax benefit	33,958	31,857	30,118
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	9,051	8,062	6,806
Restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	181,946	173,193	164,078
Employee stock purchase plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 19,093	$ 16,013	$ 10,663

Stock Compensation Plans and _4

Stock Compensation Plans and Stock Based Compensation (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Stock based compensation expense and allocation by cost
Stock-based compensation	$ 210,090	$ 197,268	$ 181,547
Cost of product and maintenance [Member]
Stock based compensation expense and allocation by cost
Stock-based compensation	4,161	2,922	2,759
Cost of services [Member]
Stock based compensation expense and allocation by cost
Stock-based compensation	3,375	3,720	3,510
Marketing and sales [Member]
Stock based compensation expense and allocation by cost
Stock-based compensation	43,264	42,096	39,088
Research and development [Member]
Stock based compensation expense and allocation by cost
Stock-based compensation	131,247	124,999	114,656
General and administrative [Member]
Stock based compensation expense and allocation by cost
Stock-based compensation	$ 28,043	$ 23,531	$ 21,534

Stock Compensation Plans and _5

Stock Compensation Plans and Stock Based Compensation (Details 2) - Stock options [Member] - $ / shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	31.70%	25.10%	24.40%
Risk-free interest rate	1.02%	1.36%	2.47%
Expected term (in years)	4 years 9 months 18 days	4 years 9 months 18 days	4 years 9 months 18 days
Weighted average fair value of options granted	$ 46.10	$ 19.38	$ 14.58

Stock Compensation Plans and _6

Stock Compensation Plans and Stock Based Compensation (Details 3) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding beginning balance | shares	3,934
Granted | shares	612
Exercised | shares	(1,066)
Canceled and forfeited | shares	(61)
Options outstanding ending balance | shares	3,419
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted-Average Exercise Price, Options outstanding beginning balance | $ / shares	$ 36.72
Weighted-Average Exercise Price Granted | $ / shares	159.25
Weighted-Average Exercise Price Exercised | $ / shares	22.37
Weighted-Average Exercise Price Canceled and Forfeited | $ / shares	61.38
Weighted-Average Exercise Price, Options outstanding ending balance | $ / shares	$ 62.69
Summary of company stock option plans
Options vested as of January 1, 2022 | shares	2,425
Weighted Average Exercise Price, Options vested as of January 1, 2022 | $ / shares	$ 39.16
Weighted-Average Remaining Contractual Term, Options outstanding as of January 1, 2022	3 years 6 months
Weighted-Average Remaining Contractual Term, Options vested as of January 1, 2022	2 years 8 months 12 days
Aggregate Intrinsic Value, Options outstanding as of January 1, 2022 | $	$ 422,830
Aggregate Intrinsic Value, Options vested as of January 1, 2022 | $	$ 356,981

Stock Compensation Plans and _7

Stock Compensation Plans and Stock Based Compensation (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Intrinsic Value And Cash Received From Stock Options Exercised
Intrinsic value of options exercised	$ 129,403	$ 109,193	$ 51,625
Cash received from options exercised	$ 23,844	$ 26,474	$ 14,553

Stock Compensation Plans and _8

Stock Compensation Plans and Stock Based Compensation (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 210,090	$ 197,268	$ 181,547
Stock-based compensation expense related to performance-based grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	16,225	14,859	12,640
Market-based performance restricted stock grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 6,453	$ 8,335	$ 7,019

Stock Compensation Plans and _9

Stock Compensation Plans and Stock Based Compensation (Details 6) - Restricted stock [Member] $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022USD ($)$ / sharesshares
Summary of changes in restricted stock awards outstanding under Cadence's equity incentive plans
Unvested shares beginning balance | shares	6,239
Granted | shares	1,688
Vested | shares	(2,570)
Forfeited | shares	(426)
Unvested shares ending balance | shares	4,931
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Unvested shares beginning balance, Weighted-Average Grant Date Fair Value | $ / shares	$ 63.12
Granted, Weighted-Average Grant date Fair Value | $ / shares	141.97
Vested, Weighted-Average Grant Date Fair Value | $ / shares	61.61
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares	75.92
Unvested shares beginning balance, Weighted-Average Grant Date Fair Value | $ / shares	$ 89.91
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Unvested shares as of January 1, 2022, Weighted-Average Remaining Vesting Terms	1 year 2 months 12 days
Unvested shares as of January 1, 2022, Aggregate Intrinsic Value | $	$ 918,769

Stock Compensation Plans and_10

Stock Compensation Plans and Stock Based Compensation (Details 7) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Restricted stock [Member]
Fair value of restricted stock awards that vested
Fair value of restricted stock realized upon vesting	$ 365,298	$ 358,261	$ 298,320

Stock Compensation Plans and_11

Stock Compensation Plans and Stock Based Compensation (Details 8) - Purchase rights granted [Member] - $ / shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Weighted-average grant date fair value of purchase rights granted under ESPP and weighted-average assumptions used in model
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	31.50%	32.60%	27.90%
Risk-free interest rate	0.07%	0.80%	2.23%
Expected term (in years)	6 months	6 months	6 months
Weighted average fair value of options granted	$ 33.77	$ 23.08	$ 14.37

Stock Compensation Plans and_12

Stock Compensation Plans and Stock Based Compensation (Details 9) - Employee stock purchase plans [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Shares of common stock issued under employee stock purchase plan
Cadence shares purchased under the ESPP	624	785	988
Cash received for the purchase of shares under the ESPP	$ 63,932	$ 48,328	$ 38,290
Weighted average purchase price per share	$ 102.41	$ 61.55	$ 38.74

Stock Compensation Plans and_13

Stock Compensation Plans and Stock Based Compensation (Details 10) shares in Thousands	Jan. 01, 2022shares
Common stock reserved for future issuance
Common stock reserved for future issuance	24,258
Employee equity incentive plans [Member]
Common stock reserved for future issuance
Common stock reserved for future issuance	19,006	[1]
Employee stock purchase plans [Member]
Common stock reserved for future issuance
Common stock reserved for future issuance	4,630
Directors stock option plans [Member]
Common stock reserved for future issuance
Common stock reserved for future issuance	622	[1]
[1]	Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units.

Stock Compensation Plans and_14

Stock Compensation Plans and Stock Based Compensation (Details Textual) - USD ($) shares in Thousands	11 Months Ended	12 Months Ended
	Jan. 02, 2021	Jan. 01, 2022
2014 Omnibus Equity Incentive Plan [Member]
Stock Compensation Plans (Textual) [Abstract]
Additional shares authorized and available for issuance under equity incentive plan		9,000
Number of shares available for issuance under equity incentive plan		14,400
Expiration period from date of grant for options granted		7 years
One Thousand Nine Hundred Ninety Five Directors Stock Options Plan [Member]
Stock Compensation Plans (Textual) [Abstract]
Number of shares available for issuance under equity incentive plan		500
Term of options granted under Directors' Plan		10 years
Employee stock purchase plans [Member]
Stock Compensation Plans (Textual) [Abstract]
Purchase period for common stock		6 months
Percentage of lower of fair market value at beginning or end of applicable offering period used for calculating price of common stock to be purchased by employees		85.00%
Number of shares available for issuance under Employee Stock Purchase Plan		4,600
Employee Stock Purchase Plan with Offering Period Commencing on February 1, 2014 [Member] [Member]
Stock Compensation Plans (Textual) [Abstract]
Maximum percentage of annual base earnings plus bonuses and commissions for which common stock can be purchased by employees		12.00%
Maximum amount for which common stock can be purchased by employees in any calendar year	$ 15,000
Stock options [Member]
Stock Compensation Plans (Textual) [Abstract]
Total unrecognized compensation expense, net of estimates forfeitures		$ 32,800,000
Weighted-average vesting period over which unrecognized compensation expense will be recognized		2 years 8 months 12 days
Stock options [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Maximum [Member]
Stock Compensation Plans (Textual) [Abstract]
Vesting period		4 years
Stock options [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Minimum [Member]
Stock Compensation Plans (Textual) [Abstract]
Vesting period		3 years
Employee Stock [Member] | One Thousand Nine Hundred Ninety Five Directors Stock Options Plan [Member]
Stock Compensation Plans (Textual) [Abstract]
Vesting period		1 year
Restricted stock [Member]
Stock Compensation Plans (Textual) [Abstract]
Performance-based stock awards, total granted	6,239	4,931
Total unrecognized compensation expense, net of estimates forfeitures		$ 341,000,000
Weighted-average vesting period over which unrecognized compensation expense will be recognized		2 years
Restricted stock [Member] | Maximum [Member]
Stock Compensation Plans (Textual) [Abstract]
Vesting period		4 years
Restricted stock [Member] | Minimum [Member]
Stock Compensation Plans (Textual) [Abstract]
Vesting period		3 years
Performance Based Restricted Stock Grants [Member]
Stock Compensation Plans (Textual) [Abstract]
Performance-based stock awards, total granted		1,300

Stock Repurchase Programs (Deta

Stock Repurchase Programs (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Equity [Abstract]
Shares repurchased	4,401	4,247	4,841
Total cost of repurchased shares	$ 612,297	$ 380,064	$ 306,148

Stock Repurchase Programs (De_2

Stock Repurchase Programs (Details Textual) - USD ($) $ in Millions	Jan. 01, 2022	Aug. 04, 2021	Jan. 02, 2021
Equity [Abstract]
Remaining amount under stock repurchase authorization	$ 1,100		$ 739
Additional authorized repurchase amount		$ 1,000

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Earnings Per Share [Abstract]
Net income	$ 695,955	$ 590,644	$ 988,979
Weighted average common shares used to calculate basic net income per share	273,504	273,728	273,239
Stock-based awards	5,354	5,913	7,276
Weighted average common shares used to calculate diluted net income per share	278,858	279,641	280,515
Net income per share - basic (in usd per share)	$ 2.54	$ 2.16	$ 3.62
Net income per share - diluted (in usd per share)	$ 2.50	$ 2.11	$ 3.53

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	255	642	2,183
Long-term market-based awards
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	0	383	1,097
Options to purchase shares of common stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	214	201	359
Non-vested shares of restricted stock
Potential shares of Cadence's common stock excluded
Total potential common shares excluded	41	58	727

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Leases [Abstract]
Operating lease expense	$ 43,210	$ 39,731	$ 34,709

Leases (Details 1)

Leases (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 50,151	$ 34,723
ROU assets obtained in exchange for operating lease obligations	$ 31,813	$ 63,057

Leases (Details 2)

Leases (Details 2) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
Right-of-use assets [Extensible List]	Other Assets	Other Assets
Right-of-use assets	$ 130,124	$ 133,354
Operating lease, liability, current [Extensible List]	Accounts Payable and Accrued Liabilities, Current	Accounts Payable and Accrued Liabilities, Current
Operating lease, liability, current	$ 25,271	$ 33,920
Operating lease liability, noncurrent [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Operating lease liability, noncurrent	$ 107,121	$ 113,916
Total lease liabilities	$ 132,392	$ 147,836
Operating lease, weighted average remaining lease term	6 years 6 months	6 years 8 months 12 days
Operating lease, weighted average discount rate,	3.60%	3.80%

Leases (Details 3)

Leases (Details 3) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
2022	$ 28,471
2023	26,828
2024	23,271
2025	19,715
2026	13,298
Thereafter	36,770
Total future lease payments	148,353
Less imputed interest	(15,961)
Total operating lease liability	$ 132,392	$ 147,836

Leases (Details Textual)

Leases (Details Textual) $ in Thousands	Jan. 01, 2022USD ($)
Leases [Abstract]
Operating lease obligations, leasing arrangements to commence in a future period	$ 22,700

Balance Sheet Components (Detai

Balance Sheet Components (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Inventories:
Raw materials	$ 88,629	$ 63,647
Finished goods	27,092	12,309
Inventories	115,721	75,956
Prepaid expenses and other:
Prepaid income taxes	85,320	55,366
Other prepaid expenses and other assets	88,192	80,346
Prepaid expenses and other	173,512	135,712
Property, plant and equipment:
Computer equipment and related software	636,069	616,836
Buildings	126,557	126,666
Land	55,842	55,848
Leasehold, building and land improvements	137,778	129,155
Furniture and fixtures	27,798	27,064
Equipment	40,603	38,732
In-process capital assets	13,830	10,774
Total cost	1,038,477	1,005,075
Less: Accumulated depreciation and amortization	(732,566)	(693,950)
Property, plant and equipment, net	305,911	311,125
Other assets:
Non-marketable investments	127,501	132,226
Right-of-use assets	130,124	133,354
Other long-term assets	181,601	170,526
Other assets	439,226	436,106
Accounts payable and accrued liabilities:
Payroll and payroll-related accruals	254,090	219,289
Customer deposits	64,117	27,888
Other accrued operating liabilities	99,076	102,774
Accounts payable and accrued liabilities	417,283	349,951
Other long-term liabilities:
Operating lease liability, noncurrent	107,121	113,916
Other accrued liabilities	118,542	93,186
Other long-term liabilities	$ 225,663	$ 207,102

Investments (Details Textual 1)

Investments (Details Textual 1) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Schedule of Equity Method Investments [Line Items]
Ownership percentage, equity method investment	16.00%
Book value, equity method investment	$ 125.9	$ 130.7
Income (Loss) from equity method investments	$ (1.1)	$ (4.6)

Investments (Details Textual 2)

Investments (Details Textual 2) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Other Investment Not Readily Marketable [Line Items]
Non-marketable investments	$ 127,501	$ 132,226
Other equity investments not readily marketable [Member]
Other Investment Not Readily Marketable [Line Items]
Non-marketable investments	$ 1,600	$ 1,600

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Assets
Marketable equity securities	$ 5,956	$ 4,452
Securities held in NQDC trust	56,165	42,769
Foreign currency exchange contracts		8,868
Total Assets	720,595	597,475
Liabilities
Foreign currency exchange contracts		306
Total Liabilities		306
Money market funds [Member]
Assets
Money market funds	658,474	541,386
Fair Value Measurements, Level 1 [Member]
Assets
Marketable equity securities	5,956	4,452
Securities held in NQDC trust	56,165	42,769
Foreign currency exchange contracts		0
Total Assets	720,595	588,607
Liabilities
Foreign currency exchange contracts		0
Total Liabilities		0
Fair Value Measurements, Level 1 [Member] | Money market funds [Member]
Assets
Money market funds	658,474	541,386
Fair Value Measurements, Level 2 [Member]
Assets
Marketable equity securities	0	0
Securities held in NQDC trust	0	0
Foreign currency exchange contracts		8,868
Total Assets	0	8,868
Liabilities
Foreign currency exchange contracts		306
Total Liabilities		306
Fair Value Measurements, Level 2 [Member] | Money market funds [Member]
Assets
Money market funds	0	0
Fair Value Measurements, Level 3 [Member]
Assets
Marketable equity securities	0	0
Securities held in NQDC trust	0	0
Foreign currency exchange contracts		0
Total Assets	0	0
Liabilities
Foreign currency exchange contracts		0
Total Liabilities		0
Fair Value Measurements, Level 3 [Member] | Money market funds [Member]
Assets
Money market funds	$ 0	$ 0

Fair Value (Details Textual)

Fair Value (Details Textual) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
2021 Acquisition
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquired definite-lived intangible assets, fair value	$ 88,900
AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquired definite-lived intangible assets, fair value		$ 101,300
Deferred revenue assumed in a business combintation		$ 6,900
Measurement Input, Discount Rate [Member] | NUMECA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Technological Obsolescence Rate	6.70%
Estimated Royalty Rate	22.00%
Measurement Input, Discount Rate [Member] | Pointwise
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Technological Obsolescence Rate	10.00%
Estimated Royalty Rate	25.00%
Measurement Input, Discount Rate [Member] | AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Royalty Rate		20.00%
Minimum [Member] | Measurement Input, Discount Rate [Member] | AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Technological Obsolescence Rate		5.00%
Maximum [Member] | Measurement Input, Discount Rate [Member] | AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Technological Obsolescence Rate		7.50%
Existing Technology [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | NUMECA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate	10.50%
Existing Technology [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | Pointwise
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate	10.50%
Existing Technology [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate		10.00%
Existing Technology [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | NUMECA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate	12.00%
Existing Technology [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | Pointwise
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate	12.00%
Existing Technology [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate		11.50%
Customer Relationships [Member] | Measurement Input, Discount Rate [Member] | NUMECA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Customer Retention Rate	95.00%
Customer Relationships [Member] | Measurement Input, Discount Rate [Member] | Pointwise
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Customer Retention Rate	95.00%
Customer Relationships [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | NUMECA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate	10.50%
Customer Relationships [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | Pointwise
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate	10.50%
Customer Relationships [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Customer Retention Rate	85.00%
Customer Relationships [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | NUMECA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate	12.00%
Customer Relationships [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | Pointwise
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate	12.00%
Customer Relationships [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Customer Retention Rate	95.00%
Customer Contracts | Minimum [Member] | Measurement Input, Discount Rate [Member] | AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate		10.00%
Customer Contracts | Maximum [Member] | Measurement Input, Discount Rate [Member] | AWR and Integrand
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, fair value significant input, discount rate		11.50%

Restructuring and Other Charg_3

Restructuring and Other Charges (Details Textual) $ in Thousands	12 Months Ended
	Jan. 01, 2022USD ($)
Restructuring and Related Activities [Abstract]
Voluntary retirement program, expense	$ 26,800
Voluntary retirement program, liability	17,500
Voluntary retirement program liability, current	$ 17,000

Restructuring and Other Charg_4

Restructuring and Other Charges (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Cadence's Restructuring Plans
Beginning Balance	$ 8,693	$ 9,638	$ 12,024
Restructuring and other charges (credits), net	(1,048)	9,215	8,621
Cash payments	(7,535)	(10,197)	(11,134)
Effect of foreign currency translation	(67)	37	127
Ending Balance	43	8,693	9,638
Severance and Benefits [Member]
Cadence's Restructuring Plans
Beginning Balance	7,321	9,229	11,176
Restructuring and other charges (credits), net	(1,480)	7,476	8,649
Cash payments	(5,774)	(9,424)	(10,714)
Effect of foreign currency translation	(67)	40	118
Ending Balance	0	7,321	9,229
Excess Facilities [Member]
Cadence's Restructuring Plans
Beginning Balance	1,372	409	848
Restructuring and other charges (credits), net	432	1,739	(28)
Cash payments	(1,761)	(773)	(420)
Effect of foreign currency translation	0	(3)	9
Ending Balance	$ 43	$ 1,372	$ 409

Other Income, Net (Details)

Other Income, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Other Income, Net
Interest income	$ 2,634	$ 3,817	$ 9,509
Gains (losses) on marketable equity investments	1,504	(148)	713
Losses on non-marketable equity investments	(924)	(4,806)	(4,802)
Gains on securities in NQDC trust	6,163	4,881	5,402
Gains (losses) on foreign exchange	(2,789)	4,429	(4,111)
Other expense, net	(262)	(228)	(710)
Total other income, net	$ 6,326	$ 7,945	$ 6,001

Commitments and Contingencies (

Commitments and Contingencies (Details Textual) $ in Millions	Jan. 01, 2022USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase obligations	$ 62.4
Purchase obligation, amounts to be settled within the next twelve months	$ 50.9

Employee and Director Benefit_3

Employee and Director Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Contributions to plan
Contributions to defined contribution plans	$ 33,029	$ 27,152	$ 25,269

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Accumulated other comprehensive loss
Foreign currency translation loss	$ (26,553)	$ (11,130)
Changes in defined benefit plan liabilities	(6,758)	(6,295)
Total accumulated other comprehensive loss	$ (33,311)	$ (17,425)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Total revenue	$ 2,988,244	$ 2,682,891	$ 2,336,319
United States
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	1,292,980	1,096,263	982,380
Other Americas [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	42,141	43,652	43,473
Americas [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	1,335,121	1,139,915	1,025,853
China [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	378,160	406,645	241,474
Other Asia [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	566,772	487,362	459,028
Asia [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	944,932	894,007	700,502
Europe, Middle East and Africa [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	523,390	469,804	433,314
Japan [Member]
Entity Wide Disclosure on Geographic Areas Revenue from External Customers
Geographic areas, revenue from external customers	$ 184,801	$ 179,165	$ 176,650

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Summary of long-lived assets by geography
Long-lived assets	$ 305,911	$ 311,125	$ 275,855
United States
Summary of long-lived assets by geography
Long-lived assets	238,263	248,292	220,023
Other Americas [Member]
Summary of long-lived assets by geography
Long-lived assets	623	753	728
Americas [Member]
Summary of long-lived assets by geography
Long-lived assets	238,886	249,045	220,751
China [Member]
Summary of long-lived assets by geography
Long-lived assets	15,010	16,416	15,729
Other Asia [Member]
Summary of long-lived assets by geography
Long-lived assets	35,458	28,668	27,890
Asia [Member]
Summary of long-lived assets by geography
Long-lived assets	50,468	45,084	43,619
Europe, Middle East and Africa [Member]
Summary of long-lived assets by geography
Long-lived assets	16,033	16,304	10,474
Japan [Member]
Summary of long-lived assets by geography
Long-lived assets	$ 524	$ 692	$ 1,011