Cadence Design Systems (CDNS) 10-Q 25 Jul 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page	6 Months Ended
	Jul. 02, 2022 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 02, 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
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	CDNS
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding	273,870,000
Entity Central Index Key	0000813672
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 02, 2022	Jan. 01, 2022
Current assets:
Cash and cash equivalents	$ 1,029,544	$ 1,088,940
Receivables, net	391,738	337,596
Inventories	106,372	115,721
Prepaid expenses and other	129,966	173,512
Total current assets	1,657,620	1,715,769
Property, plant and equipment, net	316,741	305,911
Goodwill	924,460	928,358
Acquired intangibles, net	215,781	233,265
Deferred taxes	802,886	763,770
Other assets	443,786	439,226
Total assets	4,361,274	4,386,299
Current liabilities:
Accounts payable and accrued liabilities	437,195	417,283
Current portion of deferred revenue	605,296	553,942
Total current liabilities	1,042,491	971,225
Long-term liabilities:
Long-term portion of deferred revenue	114,573	101,148
Long-term debt	347,999	347,588
Other long-term liabilities	230,982	225,663
Total long-term liabilities	693,554	674,399
Commitments and contingencies
Stockholders’ equity:
Common stock and capital in excess of par value	2,590,893	2,467,701
Treasury stock, at cost	(3,352,827)	(2,740,003)
Retained earnings	3,468,543	3,046,288
Accumulated other comprehensive loss	(81,380)	(33,311)
Total stockholders’ equity	2,625,229	2,740,675
Total liabilities and stockholders’ equity	$ 4,361,274	$ 4,386,299

Condensed Consolidated Income S

Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Revenues [Abstract]
Revenues	$ 857,521	$ 728,285	$ 1,759,287	$ 1,464,313
Costs and Expenses:
Marketing and sales	139,296	135,967	279,482	268,793
Research and development	286,597	285,227	577,492	556,219
General and administrative	51,426	40,333	100,363	80,285
Amortization of acquired intangibles	4,633	5,030	9,597	9,661
Restructuring	16	(469)	28	(746)
Total costs and expenses	574,633	542,847	1,157,470	1,074,938
Income from operations	282,888	185,438	601,817	389,375
Interest expense	(4,281)	(4,316)	(8,389)	(8,533)
Other income (expenses), net	(5,962)	2,143	(10,862)	4,844
Income before provision for income taxes	272,645	183,265	582,566	385,686
Provision for income taxes	85,725	27,365	160,311	42,617
Net income	$ 186,920	$ 155,900	$ 422,255	$ 343,069
Net income per share - basic (usd per share)	$ 0.69	$ 0.57	$ 1.55	$ 1.25
Net Income per share - diluted (usd per share)	$ 0.68	$ 0.56	$ 1.53	$ 1.23
Weighted average common shares outstanding - basic (in shares)	271,520	273,565	272,028	273,843
Weighted average common shares outstanding - diluted (in shares)	275,172	278,558	276,097	279,399
Product and maintenance [Member]
Revenues [Abstract]
Revenues	$ 802,285	$ 687,884	$ 1,648,529	$ 1,386,938
Costs and Expenses:
Cost of sales	68,717	55,842	141,512	120,748
Service [Member]
Revenues [Abstract]
Revenues	55,236	40,401	110,758	77,375
Costs and Expenses:
Cost of sales	$ 23,948	$ 20,917	$ 48,996	$ 39,978

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 186,920	$ 155,900	$ 422,255	$ 343,069
Other comprehensive income (loss), net of tax effects:
Foreign currency translation adjustments	(35,222)	5,788	(49,996)	(4,136)
Changes in defined benefit plan liabilities	1,761	(543)	1,927	(231)
Total other comprehensive income (loss), net of tax effects	(33,461)	5,245	(48,069)	(4,367)
Comprehensive income	$ 153,459	$ 161,145	$ 374,186	$ 338,702

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Common Stock, Par Value and Capital in Excess of Par	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance at Jan. 02, 2021	$ 2,493,018		$ 2,217,939	$ (2,057,829)	$ 2,350,333	$ (17,425)
Beginning balance, shares at Jan. 02, 2021		278,941
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	343,069				343,069
Other comprehensive loss, net of taxes	$ (4,367)					(4,367)
Purchase of treasury stock, shares	(3,043)	(3,043)
Purchase of treasury stock	$ (392,290)			(392,290)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		1,391
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	52,252		42,917	9,335
Stock received for payment of employee taxes on vesting of restricted stock, shares		(509)
Stock received for payment of employee taxes on vesting of restricted stock	(78,053)		(9,169)	(68,884)
Stock-based compensation expense	103,114		103,114
Ending balance at Jul. 03, 2021	2,516,743		2,354,801	(2,509,668)	2,693,402	(21,792)
Ending balance, shares at Jul. 03, 2021		276,780
Beginning balance at Apr. 03, 2021	2,542,432		2,307,965	(2,275,998)	2,537,502	(27,037)
Beginning balance, shares at Apr. 03, 2021		278,265
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	155,900				155,900
Other comprehensive loss, net of taxes	$ 5,245					5,245
Purchase of treasury stock, shares	(1,720)	(1,720)
Purchase of treasury stock	$ (220,023)			(220,023)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		367
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	4,339		791	3,548
Stock received for payment of employee taxes on vesting of restricted stock, shares		(132)
Stock received for payment of employee taxes on vesting of restricted stock	(21,668)		(4,473)	(17,195)
Stock-based compensation expense	50,518		50,518
Ending balance at Jul. 03, 2021	2,516,743		2,354,801	(2,509,668)	2,693,402	(21,792)
Ending balance, shares at Jul. 03, 2021		276,780
Beginning balance at Jan. 01, 2022	2,740,675		2,467,701	(2,740,003)	3,046,288	(33,311)
Beginning balance, shares at Jan. 01, 2022		276,796
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	422,255				422,255
Other comprehensive loss, net of taxes	$ (48,069)					(48,069)
Purchase of treasury stock, shares	(3,704)	(3,704)
Purchase of treasury stock	$ (570,049)			(570,049)
Equity forward contract	(30,000)		(30,000)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		1,163
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	50,222		37,232	12,990
Stock received for payment of employee taxes on vesting of restricted stock, shares		(385)
Stock received for payment of employee taxes on vesting of restricted stock	(63,544)		(7,779)	(55,765)
Stock-based compensation expense	123,739		123,739
Ending balance at Jul. 02, 2022	2,625,229		2,590,893	(3,352,827)	3,468,543	(81,380)
Ending balance, shares at Jul. 02, 2022		273,870
Beginning balance at Apr. 02, 2022	2,760,183		2,552,207	(3,025,728)	3,281,623	(47,919)
Beginning balance, shares at Apr. 02, 2022		275,759
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	186,920				186,920
Other comprehensive loss, net of taxes	$ (33,461)					(33,461)
Purchase of treasury stock, shares	(2,138)	(2,138)
Purchase of treasury stock	$ (320,033)			(320,033)
Equity forward contract	(30,000)		(30,000)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares		288
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	4,551		5,829	(1,278)
Stock received for payment of employee taxes on vesting of restricted stock, shares		(39)
Stock received for payment of employee taxes on vesting of restricted stock	(7,201)		(1,413)	(5,788)
Stock-based compensation expense	64,270		64,270
Ending balance at Jul. 02, 2022	$ 2,625,229		$ 2,590,893	$ (3,352,827)	$ 3,468,543	$ (81,380)
Ending balance, shares at Jul. 02, 2022		273,870

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021
Statement of Cash Flows [Abstract]
Cash and cash equivalents at beginning of period	$ 1,088,940	$ 928,432
Cash flows from operating activities:
Net income	422,255	343,069
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	67,690	71,799
Amortization of debt discount and fees	539	687
Stock-based compensation	123,739	103,114
(Gain) loss on investments, net	3,124	(795)
Deferred income taxes	(41,597)	1,710
Provisions for losses on receivables	133	242
ROU asset amortization and change in operating lease liabilities	1,742	(2,483)
Other non-cash items	88	183
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	(64,036)	(48,016)
Inventories	367	(14,527)
Prepaid expenses and other	40,571	7,690
Other assets	14,476	6,991
Accounts payable and accrued liabilities	17,470	(14,771)
Deferred revenue	80,460	127,286
Other long-term liabilities	(5,872)	6,639
Net cash provided by operating activities	661,149	588,818
Cash flows from investing activities:
Purchases of non-marketable investments	(1,000)	0
Purchases of property, plant and equipment	(42,202)	(31,139)
Purchases of intangible assets	750	0
Cash paid in business combinations, net of cash acquired	(25,000)	(220,660)
Net cash used for investing activities	(68,952)	(251,799)
Cash flows from financing activities:
Payment of debt issuance costs	0	1,285
Proceeds from issuance of common stock	50,224	52,252
Stock received for payment of employee taxes on vesting of restricted stock	(63,544)	(78,053)
Payments for repurchases of common stock	(600,049)	(392,290)
Net cash used for financing activities	(613,369)	(419,376)
Effect of exchange rate changes on cash and cash equivalents	(38,224)	1,085
Decrease in cash and cash equivalents	(59,396)	(81,272)
Cash and cash equivalents at end of period	1,029,544	847,160
Supplemental cash flow information:
Cash paid for interest	7,973	7,920
Cash paid for taxes, net	$ 79,277	$ 28,619

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jul. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by Cadence Design Systems, Inc. (“Cadence”) without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, Cadence believes that the disclosures contained in this Quarterly Report on Form 10-Q comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These condensed consolidated financial statements are meant to be, and should be, read in conjunction with the consolidated financial statements and the Notes thereto included in Cadence’s Annual Report on Form 10-K for the fiscal year ended January 1, 2022. The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q reflect all adjustments (which include only normal, recurring adjustments and those items discussed in these Notes) that are, in the opinion of management, necessary to state fairly the results of operations, cash flows and financial position for the periods and dates presented. The results for such periods are not necessarily indicative of the results to be expected for the full fiscal year. Certain prior period balances have been reclassified to conform to the current period presentation. Management has evaluated subsequent events through the issuance date of the unaudited condensed consolidated financial statements. Use of Estimates Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Due to the ongoing COVID-19 pandemic and rising tensions in the geopolitical climate, there continues to be uncertainty and disruption in the global economy and financial markets. Cadence is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of July 25, 2022, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. Recently Adopted Accounting Standards Lessors - Certain Leases with Variable Lease Payments In July 2021, the Financial Accounting Standards Board (“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. The adoption of this standard did not have a material impact on Cadence’s condensed 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 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 previous 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 condensed 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.

Revenue

Revenue	6 Months Ended
	Jul. 02, 2022
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Cadence groups its products and services into five categories related to major design activities. The following table shows the percentage of revenue contributed by each of Cadence’s five product categories for the three and six months ended July 2, 2022 and July 3, 2021: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Custom Integrated Circuit (“IC”) Design and Simulation 23 % 23 % 22 % 23 % Digital IC Design and Signoff 27 % 28 % 27 % 28 % Functional Verification, including Emulation and Prototyping Hardware* 24 % 25 % 26 % 26 % Intellectual Property (“IP”) 14 % 13 % 14 % 13 % System Design and Analysis 12 % 11 % 11 % 10 % Total 100 % 100 % 100 % 100 % _____________ * Includes immaterial amount of revenue accounted for under leasing arrangements. Cadence generates revenue from contracts with customers and applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Certain of Cadence’s licensing arrangements allow customers the ability to remix among software products. Cadence also has arrangements with customers that include a combination of products, with the actual product selection and number of licensed users to be determined at a later date. For these arrangements, Cadence estimates the allocation of the revenue to product categories based upon the expected usage of products. Revenue by product category fluctuates from period to period based on demand for products and services, and Cadence’s available resources to deliver them. No one customer accounted for 10% or more of total revenue during the three and six months ended July 2, 2022 or the three and six months ended July 3, 2021. Generally, between 85% and 90% of Cadence’s annual revenue is characterized as recurring revenue. Recurring revenue includes revenue recognized over time from our software arrangements, services, royalties, maintenance on IP licenses and hardware, and operating leases of hardware. Recurring revenue also includes revenue recognized at varying points in time over the term of other arrangements with non-cancelable commitments, 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 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 arrangement is treated as an individual contract and accounted for based on the respective performance obligations. 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. The percentage of Cadence’s recurring and up-front revenue may be impacted by delivery of hardware and IP products to its customers in any single fiscal period. The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for the three and six months ended July 2, 2022 and July 3, 2021: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Revenue recognized over time 84 % 84 % 82 % 83 % Revenue from arrangements with non-cancelable commitments 2 % 3 % 2 % 3 % Recurring revenue 86 % 87 % 84 % 86 % Up-front revenue 14 % 13 % 16 % 14 % Total 100 % 100 % 100 % 100 % Significant Judgments Cadence’s contracts with customers often include promises to transfer to a customer multiple software and/or IP licenses and services, including professional services, technical support services, and rights to unspecified updates. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or not distinct and thus accounted for together, requires significant judgment. In some arrangements, such as most of Cadence’s IP license arrangements, Cadence has concluded that the licenses and associated services are distinct from each other. In others, like Cadence’s time-based software arrangements, the licenses and certain services are not distinct from each other. Cadence’s time-based software arrangements include multiple software licenses and updates to the licensed software products, as well as technical support, and Cadence has concluded that these promised goods and services are a single, combined performance obligation. The accounting for contracts with multiple performance obligations requires the contract’s transaction price to be allocated to each distinct performance obligation based on relative standalone selling price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation because Cadence rarely licenses or sells products on a standalone basis. In instances where the SSP is not directly observable because Cadence does not sell the license, product or service separately, Cadence determines the SSP using information that maximizes the use of observable inputs and may include market conditions. Cadence typically has more than one SSP for individual performance obligations due to the stratification of those items by classes of customers and circumstances. In these instances, Cadence may use information such as the size of the customer and geographic region of the customer in determining the SSP. Revenue is recognized over time for Cadence’s combined performance obligations that include software licenses, updates, technical support and maintenance that are separate performance obligations with the same term. For Cadence’s professional services, revenue is recognized over time, generally using costs incurred or hours expended to measure progress. Judgment is required in estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. For Cadence’s other performance obligations recognized over time, revenue is generally recognized using a time-based measure of progress reflecting generally consistent efforts to satisfy those performance obligations throughout the arrangement term. If a group of agreements are so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. Cadence exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. Cadence’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved. Cadence is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract or based on Cadence’s expectations of the term of the contract. Generally, Cadence has not experienced significant returns or refunds to customers. These estimates require significant judgment and a change in these estimates could have an effect on its results of operations during the periods involved. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on Cadence’s condensed consolidated balance sheets. For certain software, hardware and IP agreements with payment plans, Cadence records an unbilled receivable related to revenue recognized upon transfer of control because it has an unconditional right to invoice and receive payment in the future related to those transferred products or services. Cadence records a contract asset when revenue is recognized prior to invoicing and Cadence does not have the unconditional right to invoice or retains performance risk with respect to that performance obligation. Cadence records deferred revenue when revenue is recognized subsequent to invoicing. For Cadence’s time-based software agreements, customers are generally invoiced in equal, quarterly amounts, although some customers prefer to be invoiced in single or annual amounts. The contract assets indicated below are included in prepaid expenses and other in the condensed consolidated balance sheets 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 July 2, 2022 and January 1, 2022 were as follows: As of July 2, January 1, (In thousands) Contract assets $ 23,273 $ 6,811 Deferred revenue 719,869 655,090 Cadence recognized revenue of $143.4 million and $425.0 million during the three and six months ended July 2, 2022, and $103.4 million and $330.0 million during the three and six months ended July 3, 2021, that was included in the deferred revenue balance at the beginning of each respective 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. 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 $5.6 billion as of July 2, 2022, which included $171.3 million of non-cancelable 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 July 2, 2022, Cadence expected to recognize 51% of the contracted but unsatisfied performance obligations, excluding non-cancelable commitments, as revenue over the next 12 months and the remainder thereafter. Cadence recognized revenue of $10.9 million and $23.1 million during the three and six months ended July 2, 2022, and $11.5 million and $21.7 million during the three and six months ended July 3, 2021, 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.

Receivables, net

Receivables, net	6 Months Ended
	Jul. 02, 2022
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of July 2, 2022 and January 1, 2022 were as follows: As of July 2, January 1, (In thousands) Accounts receivable $ 241,342 $ 185,599 Unbilled accounts receivable 153,451 155,689 Long-term receivables 6,223 5,098 Total receivables 401,016 346,386 Less allowance for doubtful accounts (3,055) (3,692) Total receivables, net $ 397,961 $ 342,694

Debt

Debt	6 Months Ended
	Jul. 02, 2022
Debt Disclosure [Abstract]
DEBT	DEBT Revolving Credit Facility In June 2021, Cadence 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 condensed consolidated balance sheet at the inception of the agreement and are being amortized to interest expense over the term of the 2021 Credit Facility. Interest accrues on borrowings under the 2021 Credit Facility at a rate equal to, at Cadence’s option, either (1) LIBOR plus a margin between 0.750% and 1.250% per annum, determined by reference to the credit rating of Cadence’s unsecured debt, or (2) the base rate plus a margin between 0.000% and 0.250% per annum, determined by reference to the credit rating of Cadence’s unsecured debt. Interest is payable quarterly. A commitment fee ranging from 0.070% to 0.175% is assessed on the daily average undrawn portion of revolving commitments. The 2021 Credit Facility also includes provisions addressing the potential transition from LIBOR to a new replacement benchmark. The 2021 Credit Facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness and grant liens. In addition, the 2021 Credit Facility contains financial covenants that require Cadence to maintain a funded debt to EBITDA ratio not greater than 3.25 to 1, with a step up to 3.75 to 1 for one year following an acquisition by Cadence of at least $250.0 million that results in a pro forma leverage ratio between 3.00 to 1 and 3.50 to 1. As of July 2, 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 carrying value of the 2024 Notes was $348.0 million and $347.6 million as of July 2, 2022 and January 1, 2022, respectively. The fair value of the 2024 Notes was approximately $355.3 million as of July 2, 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.

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	6 Months Ended
	Jul. 02, 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 the six months ended July 2, 2022 were as follows: Gross Carrying (In thousands) Balance as of January 1, 2022 $ 928,358 Goodwill resulting from acquisitions 9,984 Effect of foreign currency translation (13,882) Balance as of July 2, 2022 $ 924,460 Acquired Intangibles, Net Acquired intangibles as of July 2, 2022 were as follows, excluding intangibles that were fully amortized as of January 1, 2022: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 397,401 $ (259,372) $ 138,029 Agreements and relationships 193,674 (129,517) 64,157 Tradenames, trademarks and patents 9,048 (2,253) 6,795 Total acquired intangibles with definite lives 600,123 (391,142) 208,981 In-process technology 6,800 — 6,800 Total acquired intangibles $ 606,923 $ (391,142) $ 215,781 In-process technology as of July 2, 2022 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of July 2, 2022, these projects were expected to be completed during the second quarter of fiscal 2023. During the three and six months ended July 2, 2022, there were no transfers from in-process technology to existing technology. 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 Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization expense for the three and six months ended July 2, 2022 and July 3, 2021 by condensed consolidated income statement caption was as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands) Cost of product and maintenance $ 10,068 $ 12,232 $ 22,039 $ 24,000 Amortization of acquired intangibles 4,633 5,030 9,597 9,661 Total amortization of acquired intangibles $ 14,701 $ 17,262 $ 31,636 $ 33,661 As of July 2, 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 - remaining period $ 20,763 2023 37,432 2024 35,672 2025 23,744 2026 18,379 2027 16,862 Thereafter 56,129 Total estimated amortization expense $ 208,981

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Jul. 02, 2022
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and six months ended July 2, 2022 and July 3, 2021 as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands) Cost of product and maintenance $ 875 $ 909 $ 1,705 $ 1,716 Cost of services 1,113 992 2,163 2,019 Marketing and sales 12,902 10,294 24,659 21,500 Research and development 37,067 31,286 72,189 64,144 General and administrative 12,313 7,037 23,023 13,735 Total stock-based compensation expense $ 64,270 $ 50,518 $ 123,739 $ 103,114

Stock Repurchase Program

Stock Repurchase Program	6 Months Ended
	Jul. 02, 2022
Class of Stock Disclosures [Abstract]
STOCK REPURCHASE PROGRAM	STOCK REPURCHASE PROGRAM 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. During the three months ended July 2, 2022, Cadence repurchased approximately 1.6 million shares on the open market, for an aggregate purchase price of $250.0 million. In June 2022, Cadence also entered into an accelerated share repurchase (“ASR”) agreement with Royal Bank of Canada to repurchase an aggregate of $100.0 million of Cadence common stock. The ASR agreement was accounted for as two separate transactions (1) a repurchase of common stock and (2) an equity-linked contract on Cadence’s own stock. Under the ASR agreement, Cadence received an initial share delivery of approximately 0.5 million shares, which represented the number of shares at a market price equal to $70.0 million. An equity-linked contract for $30.0 million, representing the remaining shares to be delivered by Royal Bank of Canada under the ASR agreement, was recorded to stockholders’ equity as of July 2, 2022 and is expected to settle in the third quarter of fiscal 2022 upon completion of the repurchases. The shares Cadence receives are treated as a repurchase of common stock for purposes of calculating earnings per share. The final number of shares that Cadence will repurchase under the ASR agreement will be based on Cadence’s daily volume-weighted average share prices during the term of the ASR agreement, less a discount. As of July 2, 2022, approximately $527 million of Cadence’s share repurchase authorization remained available to repurchase shares of Cadence common stock.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jul. 02, 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 the three and six months ended July 2, 2022 and July 3, 2021 are as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands, except per share amounts) Net income $ 186,920 $ 155,900 $ 422,255 $ 343,069 Weighted average common shares used to calculate basic net income per share 271,520 273,565 272,028 273,843 Stock-based awards 3,652 4,993 4,069 5,556 Weighted average common shares used to calculate diluted net income per share 275,172 278,558 276,097 279,399 Net income per share - basic $ 0.69 $ 0.57 $ 1.55 $ 1.25 Net income per share - diluted $ 0.68 $ 0.56 $ 1.53 $ 1.23 The following table presents shares of Cadence’s common stock outstanding for the three and six months ended July 2, 2022 and July 3, 2021 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands) Long-term market-based awards 1,658 — 1,347 — Options to purchase shares of common stock 857 331 760 235 Non-vested shares of restricted stock 81 75 82 67 Total potential common shares excluded 2,596 406 2,189 302

Fair Value

Fair Value	6 Months Ended
	Jul. 02, 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 the six months ended July 2, 2022. 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 July 2, 2022 and January 1, 2022: Fair Value Measurements as of July 2, 2022 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 501,795 $ 501,795 $ — $ — Marketable equity securities 4,371 4,371 — — Securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 49,196 49,196 — — Total Assets $ 555,362 $ 555,362 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 6,915 $ — $ 6,915 $ — Total Liabilities $ 6,915 $ — $ 6,915 $ — 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 $ — 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 4 in the notes to condensed consolidated financial statements. Level 3 Measurements During the second quarter of fiscal 2022, Cadence acquired intangible assets of $15.0 million. The fair value of the intangible assets acquired with this acquisition was determined using the multi-period excess earnings method, a variation of the income approach that utilizes unobservable inputs classified as level 3 measurements. This method estimates the revenues and cash flows derived from the acquired assets, net of investment in supporting assets. The resulting cash flow, which is attributable solely to the assets acquired, is then discounted at a rate of return commensurate with the associated risk of the asset to calculate the present value. Cadence assumed discount rates between 23% and 25%. 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.

Inventory

Inventory	6 Months Ended
	Jul. 02, 2022
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Cadence’s inventory balances as of July 2, 2022 and January 1, 2022 were as follows: As of July 2, January 1, (In thousands) Inventories: Raw materials $ 96,769 $ 88,629 Finished goods 9,603 27,092 Total inventories $ 106,372 $ 115,721

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 02, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, Cadence is involved in various disputes and legal proceedings 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 legal proceedings and may revise estimates. Other Contingencies Cadence provides its customers with a warranty on sales of hardware products, generally for a 90-day period. Cadence did not incur any significant costs related to warranty obligations during the three and six months ended July 2, 2022 and July 3, 2021. Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s intellectual property. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. The indemnification is generally limited to the amount paid by the customer. Cadence did not incur any significant losses from indemnification claims during the three and six months ended July 2, 2022 and July 3, 2021.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 02, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS Cadence’s accumulated other comprehensive loss is comprised of the aggregate impact of foreign currency translation gains and losses and changes in defined benefit plan liabilities and is presented in Cadence’s condensed consolidated statements of comprehensive income. Accumulated other comprehensive loss was comprised of the following as of July 2, 2022 and January 1, 2022: As of July 2, January 1, (In thousands) Foreign currency translation loss $ (76,549) $ (26,553) Changes in defined benefit plan liabilities (4,831) (6,758) Total accumulated other comprehensive loss $ (81,380) $ (33,311) For the three and six months ended July 2, 2022 and July 3, 2021 there were no significant amounts related to foreign currency translation loss or changes in defined benefit plan liabilities reclassified from accumulated other comprehensive loss to net income.

Segment Reporting

Segment Reporting	6 Months Ended
	Jul. 02, 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. Long-lived assets are attributed to geography based on the country where the assets are located. The following table presents a summary of revenue by geography for the three and six months ended July 2, 2022 and July 3, 2021: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands) Americas: United States $ 368,974 $ 313,138 $ 782,512 $ 639,462 Other Americas 12,043 10,190 23,845 19,866 Total Americas 381,017 323,328 806,357 659,328 Asia: China 113,169 99,591 253,135 189,032 Other Asia 151,967 134,389 310,641 268,237 Total Asia 265,136 233,980 563,776 457,269 Europe, Middle East and Africa 158,043 124,502 288,677 254,735 Japan 53,325 46,475 100,477 92,981 Total $ 857,521 $ 728,285 $ 1,759,287 $ 1,464,313 The following table presents a summary of long-lived assets by geography as of July 2, 2022 and January 1, 2022: As of July 2, January 1, (In thousands) Americas: United States $ 282,027 $ 267,202 Other Americas 1,174 975 Total Americas 283,201 268,177 Asia: China 57,774 56,403 Other Asia 69,487 54,677 Total Asia 127,261 111,080 Europe, Middle East and Africa 55,116 53,748 Japan 1,771 3,030 Total $ 467,349 $ 436,035

Subsequent Event

Subsequent Event	6 Months Ended
	Jul. 02, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENTS On July 14, 2022, Cadence acquired all of the outstanding equity of FFG Holdings Limited (“Future Facilities”), a provider of electronics cooling analysis and energy performance optimization solutions for data center design and operations using physics-based 3D digital twins, for total cash consideration of approximately $110 million. The addition of Future Facilities’ technologies and expertise supports Cadence’s Intelligent System Design™ strategy and broadens its System Design and Analysis technology portfolio with the addition of solutions that enable companies to make informed business decisions about data center design, operations and lifecycle management that reduce their carbon footprint. The consideration paid, adjusted for working capital and other customary adjustments, will be allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. Due to the timing of this acquisition, the initial accounting is incomplete. As such, Cadence is not able to disclose certain information relating to this acquisition, including the preliminary fair value of assets acquired and liabilities assumed. Cadence expects to complete the initial accounting for its acquisition of Future Facilities during the third quarter of fiscal 2022. The acquisition of Future Facilities was funded through cash on hand. On July 22, 2022, Cadence entered into a definitive agreement to acquire OpenEye Scientific Software, Inc. (“OpenEye”), a leading provider of computational molecular modeling and simulation software used by pharmaceutical and biotech companies for drug discovery. The addition of OpenEye’s technologies and experienced team with its deep scientific expertise will accelerate Cadence’s Intelligent System Design strategy through leveraging its computational software expertise to apply proven algorithmic, simulation and solver advances to the Life Sciences end market. The aggregate consideration will be approximately $500 million, subject to customary adjustments and holdbacks outlined in the agreement. The acquisition of OpenEye is expected to close during the third quarter of fiscal 2022, subject to regulatory review and customary closing conditions, and is expected to be funded through a combination of cash on hand and borrowings.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by Cadence Design Systems, Inc. (“Cadence”) without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations.
Use of estimates	Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.
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.
Contingencies	From time to time, Cadence is involved in various disputes and legal proceedings 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 legal proceedings and may revise estimates.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jul. 02, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	The following table shows the percentage of revenue contributed by each of Cadence’s five product categories for the three and six months ended July 2, 2022 and July 3, 2021: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Custom Integrated Circuit (“IC”) Design and Simulation 23 % 23 % 22 % 23 % Digital IC Design and Signoff 27 % 28 % 27 % 28 % Functional Verification, including Emulation and Prototyping Hardware* 24 % 25 % 26 % 26 % Intellectual Property (“IP”) 14 % 13 % 14 % 13 % System Design and Analysis 12 % 11 % 11 % 10 % Total 100 % 100 % 100 % 100 % _____________ * Includes immaterial amount of revenue accounted for under leasing arrangements. Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Revenue recognized over time 84 % 84 % 82 % 83 % Revenue from arrangements with non-cancelable commitments 2 % 3 % 2 % 3 % Recurring revenue 86 % 87 % 84 % 86 % Up-front revenue 14 % 13 % 16 % 14 % Total 100 % 100 % 100 % 100 %
Contract balances	Cadence’s contract balances as of July 2, 2022 and January 1, 2022 were as follows: As of July 2, January 1, (In thousands) Contract assets $ 23,273 $ 6,811 Deferred revenue 719,869 655,090

Receivables, net (Tables)

Receivables, net (Tables)	6 Months Ended
	Jul. 02, 2022
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of July 2, 2022 and January 1, 2022 were as follows: As of July 2, January 1, (In thousands) Accounts receivable $ 241,342 $ 185,599 Unbilled accounts receivable 153,451 155,689 Long-term receivables 6,223 5,098 Total receivables 401,016 346,386 Less allowance for doubtful accounts (3,055) (3,692) Total receivables, net $ 397,961 $ 342,694

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangibles (Tables)	6 Months Ended
	Jul. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during the six months ended July 2, 2022 were as follows: Gross Carrying (In thousands) Balance as of January 1, 2022 $ 928,358 Goodwill resulting from acquisitions 9,984 Effect of foreign currency translation (13,882) Balance as of July 2, 2022 $ 924,460
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of July 2, 2022 were as follows, excluding intangibles that were fully amortized as of January 1, 2022: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 397,401 $ (259,372) $ 138,029 Agreements and relationships 193,674 (129,517) 64,157 Tradenames, trademarks and patents 9,048 (2,253) 6,795 Total acquired intangibles with definite lives 600,123 (391,142) 208,981 In-process technology 6,800 — 6,800 Total acquired intangibles $ 606,923 $ (391,142) $ 215,781 In-process technology as of July 2, 2022 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of July 2, 2022, these projects were expected to be completed during the second quarter of fiscal 2023. During the three and six months ended July 2, 2022, there were no transfers from in-process technology to existing technology. 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
Amortization of acquired intangibles	Amortization expense for the three and six months ended July 2, 2022 and July 3, 2021 by condensed consolidated income statement caption was as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands) Cost of product and maintenance $ 10,068 $ 12,232 $ 22,039 $ 24,000 Amortization of acquired intangibles 4,633 5,030 9,597 9,661 Total amortization of acquired intangibles $ 14,701 $ 17,262 $ 31,636 $ 33,661
Estimated amortization expense	As of July 2, 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 - remaining period $ 20,763 2023 37,432 2024 35,672 2025 23,744 2026 18,379 2027 16,862 Thereafter 56,129 Total estimated amortization expense $ 208,981

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jul. 02, 2022
Share-based Payment Arrangement [Abstract]
Stock-based compensation expense and allocation by cost	Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and six months ended July 2, 2022 and July 3, 2021 as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands) Cost of product and maintenance $ 875 $ 909 $ 1,705 $ 1,716 Cost of services 1,113 992 2,163 2,019 Marketing and sales 12,902 10,294 24,659 21,500 Research and development 37,067 31,286 72,189 64,144 General and administrative 12,313 7,037 23,023 13,735 Total stock-based compensation expense $ 64,270 $ 50,518 $ 123,739 $ 103,114

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	6 Months Ended
	Jul. 02, 2022
Class of Stock Disclosures [Abstract]
Shares repurchased and the total cost of shares repurchased	The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three and six months ended July 2, 2022 and July 3, 2021 were as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands) Shares repurchased 2,138 1,720 3,704 3,043 Total cost of repurchased shares $ 320,033 $ 220,023 $ 570,049 $ 392,290

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jul. 02, 2022
Earnings Per Share [Abstract]
Basic and diluted net income per share	The calculations for basic and diluted net income per share for the three and six months ended July 2, 2022 and July 3, 2021 are as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands, except per share amounts) Net income $ 186,920 $ 155,900 $ 422,255 $ 343,069 Weighted average common shares used to calculate basic net income per share 271,520 273,565 272,028 273,843 Stock-based awards 3,652 4,993 4,069 5,556 Weighted average common shares used to calculate diluted net income per share 275,172 278,558 276,097 279,399 Net income per share - basic $ 0.69 $ 0.57 $ 1.55 $ 1.25 Net income per share - diluted $ 0.68 $ 0.56 $ 1.53 $ 1.23
Potential shares of Cadence's common stock excluded	The following table presents shares of Cadence’s common stock outstanding for the three and six months ended July 2, 2022 and July 3, 2021 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands) Long-term market-based awards 1,658 — 1,347 — Options to purchase shares of common stock 857 331 760 235 Non-vested shares of restricted stock 81 75 82 67 Total potential common shares excluded 2,596 406 2,189 302

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Jul. 02, 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 July 2, 2022 and January 1, 2022: Fair Value Measurements as of July 2, 2022 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 501,795 $ 501,795 $ — $ — Marketable equity securities 4,371 4,371 — — Securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 49,196 49,196 — — Total Assets $ 555,362 $ 555,362 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 6,915 $ — $ 6,915 $ — Total Liabilities $ 6,915 $ — $ 6,915 $ — 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 $ —

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jul. 02, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Cadence’s inventory balances as of July 2, 2022 and January 1, 2022 were as follows: As of July 2, January 1, (In thousands) Inventories: Raw materials $ 96,769 $ 88,629 Finished goods 9,603 27,092 Total inventories $ 106,372 $ 115,721

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 02, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated other comprehensive loss, net of tax	Accumulated other comprehensive loss was comprised of the following as of July 2, 2022 and January 1, 2022: As of July 2, January 1, (In thousands) Foreign currency translation loss $ (76,549) $ (26,553) Changes in defined benefit plan liabilities (4,831) (6,758) Total accumulated other comprehensive loss $ (81,380) $ (33,311)

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jul. 02, 2022
Segment Reporting [Abstract]
Summary of revenue by geography	The following table presents a summary of revenue by geography for the three and six months ended July 2, 2022 and July 3, 2021: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (In thousands) Americas: United States $ 368,974 $ 313,138 $ 782,512 $ 639,462 Other Americas 12,043 10,190 23,845 19,866 Total Americas 381,017 323,328 806,357 659,328 Asia: China 113,169 99,591 253,135 189,032 Other Asia 151,967 134,389 310,641 268,237 Total Asia 265,136 233,980 563,776 457,269 Europe, Middle East and Africa 158,043 124,502 288,677 254,735 Japan 53,325 46,475 100,477 92,981 Total $ 857,521 $ 728,285 $ 1,759,287 $ 1,464,313
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of July 2, 2022 and January 1, 2022: As of July 2, January 1, (In thousands) Americas: United States $ 282,027 $ 267,202 Other Americas 1,174 975 Total Americas 283,201 268,177 Asia: China 57,774 56,403 Other Asia 69,487 54,677 Total Asia 127,261 111,080 Europe, Middle East and Africa 55,116 53,748 Japan 1,771 3,030 Total $ 467,349 $ 436,035

Revenue (Details)

Revenue (Details)	3 Months Ended			6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021		Jul. 02, 2022		Jul. 03, 2021
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	100%	100%		100%		100%
Custom Integrated Circuit (“IC”) Design and Simulation
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	23%	23%		22%		23%
Digital IC Design and Signoff
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	27%	28%		27%		28%
Functional Verification, including Emulation and Prototyping Hardware*
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	24%	25%	[1]	26%	[1]	26%	[1]
Intellectual Property (“IP”)
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	14%	13%		14%		13%
System Design and Analysis
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	12%	11%		11%		10%
[1]Includes immaterial amount of revenue accounted for under leasing arrangements.

Revenue (Details 1)

Revenue (Details 1)	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	100%	100%	100%	100%
Transferred over Time
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	86%	87%	84%	86%
Transferred over Time | Single performance obligation
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	84%	84%	82%	83%
Transferred over Time | Multiple performance obligations
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	2%	3%	2%	3%
Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	14%	13%	16%	14%

Revenue (Details 2)

Revenue (Details 2) - USD ($) $ in Thousands	Jul. 02, 2022	Jan. 01, 2022
Revenue from Contract with Customer [Abstract]
Contract assets	$ 23,273	$ 6,811
Deferred revenue	$ 719,869	$ 655,090

Revenue (Details Textual)

Revenue (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized from deferred revenue during the period	$ 143.4	$ 103.4	$ 425	$ 330
Remaining performance obligations	5,600		5,600
Non-cancellable commitments from customers included in remaining performance obligations	$ 171.3		$ 171.3
Percent of remaining performance obligations, current	51%		51%
Revenue recognized from satisfaction of performance obligations	$ 10.9	$ 11.5	$ 23.1	$ 21.7

Receivables, net (Details Textu

Receivables, net (Details Textual) - Customer	Jul. 02, 2022	Jan. 01, 2022
Receivables [Abstract]
Number of Customers with receivables balance greater than ten percent of total balance	1	0
Percentage of receivables, net attributable to single customer	11%	10%

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Jul. 02, 2022	Jan. 01, 2022
Current and long-term receivables balances
Accounts receivable	$ 241,342	$ 185,599
Unbilled accounts receivable	153,451	155,689
Long-term receivables	6,223	5,098
Total receivables	401,016	346,386
Less allowance for doubtful accounts	(3,055)	(3,692)
Total receivables, net	$ 397,961	$ 342,694

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 02, 2022	Jul. 02, 2022	Jul. 03, 2021
Line of Credit Facility [Line Items]
Payment of debt issuance costs		$ 0	$ 1,285
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, current borrowing capacity	$ 700,000	700,000
Credit facility additional borrowing capacity available	350,000	350,000
Credit facility, maximum borrowing capacity	1,050,000	$ 1,050,000
Credit facility, maturity date		Jun. 30, 2026
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%
Credit facility, covenant, pro forma leverage ratio		3
Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, commitment fee percentage		0.175%
Credit facility, covenant, pro forma leverage ratio		3.50
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread		0.75%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread		1.25%
Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread		0%
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread		0.25%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, covenant, debt to EBITDA ratio		3.25
Credit facility, covenant, debt to EBITDA ratio after step up triggered by acquisition		3.75
Credit facility, covenant, required business acquisition consideration, minimum	$ 250,000	$ 250,000

Debt (Details Textual)

Debt (Details Textual) - USD ($) $ in Thousands	Oct. 09, 2014	Jul. 02, 2022	Jan. 01, 2022
Debt Instrument [Line Items]
Carrying value of the 2024 Notes		$ 347,999	$ 347,588
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Aggregate principal amount, issued	$ 350,000
Stated interest rate of Senior Notes	4.375%
Proceeds from Senior Notes, net	$ 342,400
Unamortized discount	1,400
Debt issuance costs	$ 6,200
Carrying value of the 2024 Notes		348,000	$ 347,600
Fair value of the 2024 Notes		$ 355,300

Acquisitions (Details Textual)

Acquisitions (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021	Jan. 01, 2022
Business Acquisition [Line Items]
Cash consideration to acquire businesses, net of cash acquired			$ 25,000	$ 220,660
Goodwill	$ 924,460		924,460		$ 928,358
Transaction costs associated with acquisitions	6,300	$ 300	6,500	$ 1,900
2022 Other business combination
Business Acquisition [Line Items]
Cash consideration to acquire businesses, net of cash acquired			25,000
Goodwill	10,000		10,000
Acquired finite-lived intangibles	8,200		8,200
Acquired intangibles	15,000		15,000
Acquired intangibles with indefinite lives, in-process research and development	$ 6,800		$ 6,800

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangibles (Details) $ in Thousands	6 Months Ended
	Jul. 02, 2022 USD ($)
Changes in the carrying amount of goodwill
Balance at beginning of period	$ 928,358
Goodwill resulting from acquisitions	9,984
Effect of foreign currency translation	(13,882)
Balance at end of period	$ 924,460

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Jul. 02, 2022	Jan. 01, 2022
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 600,123	$ 621,204
Accumulated amortization	(391,142)	(387,939)
Total estimated amortization expense	208,981	233,265
In-process technology	6,800
Intangible assets, gross carrying amount (excluding goodwill)	606,923
Acquired intangibles, net	215,781	233,265
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	397,401	405,481
Accumulated amortization	(259,372)	(254,599)
Total estimated amortization expense	138,029	150,882
Agreements and Relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	193,674	205,057
Accumulated amortization	(129,517)	(130,187)
Total estimated amortization expense	64,157	74,870
Tradenames Trademarks And Patents [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	9,048	10,666
Accumulated amortization	(2,253)	(3,153)
Total estimated amortization expense	$ 6,795	$ 7,513

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Amortization of acquired intangibles
Cost of product and maintenance	$ 10,068	$ 12,232	$ 22,039	$ 24,000
Amortization of acquired intangibles	4,633	5,030	9,597	9,661
Total amortization of acquired intangibles	$ 14,701	$ 17,262	$ 31,636	$ 33,661

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Jul. 02, 2022	Jan. 01, 2022
Estimated amortization expense
2022 - remaining period	$ 20,763
2023	37,432
2024	35,672
2025	23,744
2026	18,379
2027	16,862
Thereafter	56,129
Total estimated amortization expense	$ 208,981	$ 233,265

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	6 Months Ended
	Jul. 02, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 408.7
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years 3 months 18 days

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	$ 64,270	$ 50,518	$ 123,739	$ 103,114
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	875	909	1,705	1,716
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	1,113	992	2,163	2,019
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	12,902	10,294	24,659	21,500
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	37,067	31,286	72,189	64,144
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	$ 12,313	$ 7,037	$ 23,023	$ 13,735

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021	Aug. 04, 2021
Accelerated Share Repurchases [Line Items]
Additional authorized repurchase amount					$ 1,000,000
Equity forward contract	$ (30,000)		$ (30,000)
Shares repurchased	2,138	1,720	3,704	3,043
Total cost of repurchased shares	$ 320,033	$ 220,023	$ 570,049	$ 392,290
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 527,000		$ 527,000
Shares repurchased	2,138	1,720	3,704	3,043
Total cost of repurchased shares	$ 320,033	$ 220,023	$ 570,049	$ 392,290
Accelerated share repurchase program, June 2022 [Member]
Accelerated Share Repurchases [Line Items]
Accelerated share repurchase, prepayment during period	$ 100,000
Shares repurchased	500
Total cost of repurchased shares	$ 70,000
Shares repurchased	500
Total cost of repurchased shares	$ 70,000
Share repurchase on open market
Accelerated Share Repurchases [Line Items]
Shares repurchased	1,600
Total cost of repurchased shares	$ 250,000
Shares repurchased	1,600
Total cost of repurchased shares	$ 250,000

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 186,920	$ 155,900	$ 422,255	$ 343,069
Weighted average common shares used to calculate basic net income per share	271,520	273,565	272,028	273,843
Stock-based awards	3,652	4,993	4,069	5,556
Weighted average common shares used to calculate diluted net income per share (in shares)	275,172	278,558	276,097	279,399
Net income per share - basic (usd per share)	$ 0.69	$ 0.57	$ 1.55	$ 1.25
Net income per share - diluted (usd per share)	$ 0.68	$ 0.56	$ 1.53	$ 1.23

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Potential shares of Cadence's common stock excluded
Potential common shares excluded from the computation of diluted earnings per share	2,596	406	2,189	302
Long-term market-based awards
Potential shares of Cadence's common stock excluded
Potential common shares excluded from the computation of diluted earnings per share	1,658	0	1,347	0
Options to purchase shares of common stock
Potential shares of Cadence's common stock excluded
Potential common shares excluded from the computation of diluted earnings per share	857	331	760	235
Non-vested shares of restricted stock
Potential shares of Cadence's common stock excluded
Potential common shares excluded from the computation of diluted earnings per share	81	75	82	67

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2022	Jan. 01, 2022
Assets
Marketable equity securities	$ 4,371	$ 5,956
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	49,196	56,165
Total Assets	555,362	720,595
Liabilities
Foreign currency exchange contracts	6,915	306
Total Liabilities	6,915	306
Money Market Funds
Assets
Money market funds	501,795	658,474
Fair Value Measurements, Level 1 [Member]
Assets
Marketable equity securities	4,371	5,956
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	49,196	56,165
Total Assets	555,362	720,595
Liabilities
Foreign currency exchange contracts	0	0
Total Liabilities	0	0
Fair Value Measurements, Level 1 [Member] | Money Market Funds
Assets
Money market funds	501,795	658,474
Fair Value Measurements, Level 2 [Member]
Assets
Marketable equity securities	0	0
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	0	0
Total Assets	0	0
Liabilities
Foreign currency exchange contracts	6,915	306
Total Liabilities	6,915	306
Fair Value Measurements, Level 2 [Member] | Money Market Funds
Assets
Money market funds	0	0
Fair Value Measurements, Level 3 [Member]
Assets
Marketable equity securities	0	0
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	0	0
Total Assets	0	0
Liabilities
Foreign currency exchange contracts	0	0
Total Liabilities	0	0
Acquired intangibles	$ 15,000
Fair Value Measurements, Level 3 [Member] | Valuation Technique, Discounted Cash Flow | Minimum [Member]
Liabilities
Valuation significant input, discount rate	23%
Fair Value Measurements, Level 3 [Member] | Valuation Technique, Discounted Cash Flow | Maximum [Member]
Liabilities
Valuation significant input, discount rate	25%
Fair Value Measurements, Level 3 [Member] | Money Market Funds
Assets
Money market funds	$ 0	$ 0

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jul. 02, 2022	Jan. 01, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 96,769	$ 88,629
Finished goods	9,603	27,092
Total inventories	$ 106,372	$ 115,721

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Jul. 02, 2022	Jan. 01, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss, Net of Tax	$ (81,380)	$ (33,311)
Accumulated Other Comprehensive Loss [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	(81,380)	(33,311)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss, Net of Tax	(76,549)	(26,553)
Accumulated Other Comprehensive Loss [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	(76,549)	(26,553)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss, Net of Tax	(4,831)	(6,758)
Accumulated Other Comprehensive Loss [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	$ (4,831)	$ (6,758)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Segment reporting [Line Items]
Total revenue	$ 857,521	$ 728,285	$ 1,759,287	$ 1,464,313
United States [Member]
Segment reporting [Line Items]
Total revenue	368,974	313,138	782,512	639,462
Other Americas [Member]
Segment reporting [Line Items]
Total revenue	12,043	10,190	23,845	19,866
Americas [Member]
Segment reporting [Line Items]
Total revenue	381,017	323,328	806,357	659,328
China [Member]
Segment reporting [Line Items]
Total revenue	113,169	99,591	253,135	189,032
Other Asia [Member]
Segment reporting [Line Items]
Total revenue	151,967	134,389	310,641	268,237
Asia [Member]
Segment reporting [Line Items]
Total revenue	265,136	233,980	563,776	457,269
EMEA [Member]
Segment reporting [Line Items]
Total revenue	158,043	124,502	288,677	254,735
Japan [Member]
Segment reporting [Line Items]
Total revenue	$ 53,325	$ 46,475	$ 100,477	$ 92,981

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Jul. 02, 2022	Jan. 01, 2022
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	$ 467,349	$ 436,035
United States [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	282,027	267,202
Other Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	1,174	975
Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	283,201	268,177
China [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	57,774	56,403
Other Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	69,487	54,677
Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	127,261	111,080
EMEA [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	55,116	53,748
Japan [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	$ 1,771	$ 3,030

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event [Member] - USD ($) $ in Millions	Jul. 22, 2022	Jul. 14, 2022
FFG Holdings Limited ("Future Facilities")
Subsequent Event [Line Items]
Acquisition consideration transferred		$ 110
OpenEye Scientific Software, Inc.
Subsequent Event [Line Items]
Cash to be paid to acquire a business	$ 500