Cadence Design Systems (CDNS) 10-Q 24 Oct 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page	9 Months Ended
	Oct. 01, 2022 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 01, 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	274,316,000
Entity Central Index Key	0000813672
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Current assets:
Cash and cash equivalents	$ 1,026,051	$ 1,088,940
Receivables, net	391,181	337,596
Inventories	114,283	115,721
Prepaid expenses and other	138,968	173,512
Total current assets	1,670,483	1,715,769
Property, plant and equipment, net	348,238	305,911
Goodwill	1,348,494	928,358
Acquired intangibles, net	353,912	233,265
Deferred taxes	783,315	763,770
Other assets	463,645	439,226
Total assets	4,968,087	4,386,299
Current liabilities:
Revolving credit facility	150,000	0
Accounts payable and accrued liabilities	454,688	417,283
Current portion of deferred revenue	652,306	553,942
Total current liabilities	1,256,994	971,225
Long-term liabilities:
Long-term portion of deferred revenue	102,167	101,148
Long-term debt	647,799	347,588
Other long-term liabilities	252,999	225,663
Total long-term liabilities	1,002,965	674,399
Commitments and contingencies
Stockholders’ equity:
Common stock and capital in excess of par value	2,697,632	2,467,701
Treasury stock, at cost	(3,522,219)	(2,740,003)
Retained earnings	3,654,848	3,046,288
Accumulated other comprehensive loss	(122,133)	(33,311)
Total stockholders’ equity	2,708,128	2,740,675
Total liabilities and stockholders’ equity	$ 4,968,087	$ 4,386,299

Condensed Consolidated Income S

Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Revenues [Abstract]
Revenues	$ 902,554	$ 750,895	$ 2,661,841	$ 2,215,208
Costs and Expenses:
Marketing and sales	152,925	143,401	432,407	412,194
Research and development	323,629	289,105	901,121	845,324
General and administrative	73,688	42,990	174,051	123,275
Amortization of acquired intangibles	3,946	5,000	13,543	14,661
Restructuring	14	(222)	42	(968)
Total costs and expenses	641,802	556,861	1,799,272	1,631,799
Income from operations	260,752	194,034	862,569	583,409
Interest expense	(5,463)	(4,196)	(13,852)	(12,729)
Other income (expenses), net	(3,017)	(1,143)	(13,879)	3,701
Income before provision for income taxes	252,272	188,695	834,838	574,381
Provision for income taxes	65,967	12,388	226,278	55,005
Net income	$ 186,305	$ 176,307	$ 608,560	$ 519,376
Net income per share - basic (usd per share)	$ 0.69	$ 0.65	$ 2.24	$ 1.90
Net Income per share - diluted (usd per share)	$ 0.68	$ 0.63	$ 2.21	$ 1.86
Weighted average common shares outstanding - basic (in shares)	271,131	273,194	271,694	273,636
Weighted average common shares outstanding - diluted (in shares)	274,957	278,311	275,683	279,046
Product and maintenance [Member]
Revenues [Abstract]
Revenues	$ 845,788	$ 706,160	$ 2,494,317	$ 2,093,098
Costs and Expenses:
Cost of sales	62,351	54,185	203,863	174,933
Service [Member]
Revenues [Abstract]
Revenues	56,766	44,735	167,524	122,110
Costs and Expenses:
Cost of sales	$ 25,249	$ 22,402	$ 74,245	$ 62,380

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 186,305	$ 176,307	$ 608,560	$ 519,376
Other comprehensive income (loss), net of tax effects:
Foreign currency translation adjustments	(40,768)	(5,483)	(90,764)	(9,618)
Changes in defined benefit plan liabilities	15	(288)	1,942	(520)
Total other comprehensive loss, net of tax effects	(40,753)	(5,771)	(88,822)	(10,138)
Comprehensive income	$ 145,552	$ 170,536	$ 519,738	$ 509,238

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	519,376					519,376
Other comprehensive loss, net of taxes	$ (10,138)						(10,138)
Purchase of treasury stock, shares	(3,766)		(3,766)
Purchase of treasury stock	$ (502,301)				(502,301)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares			2,640
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	83,632			52,236	31,396
Stock received for payment of employee taxes on vesting of restricted stock, shares			(674)
Stock received for payment of employee taxes on vesting of restricted stock	(108,185)			(14,244)	(93,941)
Stock-based compensation expense	155,860			155,860
Ending balance at Oct. 02, 2021	2,631,262			2,411,791	(2,622,675)	2,869,709	(27,563)
Ending balance, shares at Oct. 02, 2021			277,141
Beginning balance at Jul. 03, 2021	2,516,743			2,354,801	(2,509,668)	2,693,402	(21,792)
Beginning balance, shares at Jul. 03, 2021			276,780
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	176,307					176,307
Other comprehensive loss, net of taxes	$ (5,771)						(5,771)
Purchase of treasury stock, shares	(723)		(723)
Purchase of treasury stock	$ (110,011)				(110,011)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares			1,249
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	31,380			9,319	22,061
Stock received for payment of employee taxes on vesting of restricted stock, shares			(165)
Stock received for payment of employee taxes on vesting of restricted stock	(30,132)			(5,075)	(25,057)
Stock-based compensation expense	52,746			52,746
Ending balance at Oct. 02, 2021	2,631,262			2,411,791	(2,622,675)	2,869,709	(27,563)
Ending balance, shares at Oct. 02, 2021			277,141
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	608,560					608,560
Other comprehensive loss, net of taxes	$ (88,822)						(88,822)
Purchase of treasury stock, shares	(4,664)		(4,664)
Purchase of treasury stock	$ (720,062)				(720,062)
Equity forward contract	(30,000)			(12,035)	(17,965)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares			2,738
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	103,680			60,327	43,353
Stock received for payment of employee taxes on vesting of restricted stock, shares			(554)
Stock received for payment of employee taxes on vesting of restricted stock	(103,093)			(15,551)	(87,542)
Stock-based compensation expense	197,190			197,190
Ending balance at Oct. 01, 2022	2,708,128			2,697,632	(3,522,219)	3,654,848	(122,133)
Ending balance, shares at Oct. 01, 2022			274,316
Beginning balance at Jul. 02, 2022	2,625,229			2,590,893	(3,352,827)	3,468,543	(81,380)
Beginning balance, shares at Jul. 02, 2022			273,870
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	186,305					186,305
Other comprehensive loss, net of taxes	$ (40,753)						(40,753)
Purchase of treasury stock, shares	(959)	[1]	(959)
Purchase of treasury stock	$ (150,013)				(150,013)
Equity forward contract	0			17,965	(17,965)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares			1,574
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	53,458			23,095	30,363
Stock received for payment of employee taxes on vesting of restricted stock, shares			(169)
Stock received for payment of employee taxes on vesting of restricted stock	(39,549)			(7,772)	(31,777)
Stock-based compensation expense	73,451			73,451
Ending balance at Oct. 01, 2022	$ 2,708,128			$ 2,697,632	$ (3,522,219)	$ 3,654,848	$ (122,133)
Ending balance, shares at Oct. 01, 2022			274,316
[1]Includes 109,365 shares and $30.0 million equity forward contract from the June 2022 ASR settled in September 2022.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2022	Oct. 02, 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	608,560	519,376
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	98,178	106,962
Amortization of debt discount and fees	810	952
Stock-based compensation	197,190	155,860
(Gain) loss on investments, net	4,777	(330)
Deferred income taxes	(49,834)	(34,566)
Provisions for losses on receivables	471	234
ROU asset amortization and change in operating lease liabilities	(883)	(2,917)
Other non-cash items	158	146
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	(57,309)	15,132
Inventories	(8,020)	(25,608)
Prepaid expenses and other	30,596	36,632
Other assets	17,644	8,127
Accounts payable and accrued liabilities	24,514	10,501
Deferred revenue	113,712	84,183
Other long-term liabilities	(2,305)	10,417
Net cash provided by operating activities	978,259	885,101
Cash flows from investing activities:
Purchases of non-marketable investments	(1,000)	0
Proceeds from the sale of non-marketable investments	0	128
Purchases of property, plant and equipment	(86,295)	(49,977)
Purchases of intangible assets	1,000	0
Cash paid in business combinations, net of cash acquired	(586,163)	(220,026)
Net cash used for investing activities	(674,458)	(269,875)
Cash flows from financing activities:
Proceeds from term loan	300,000	0
Proceeds from revolving credit facility	450,000	0
Payment on revolving credit facility	(300,000)	0
Payment of debt issuance costs	425	1,285
Proceeds from issuance of common stock	103,682	83,632
Stock received for payment of employee taxes on vesting of restricted stock	(103,093)	(108,185)
Payments for repurchases of common stock	(750,062)	(502,301)
Net cash used for financing activities	(299,898)	(528,139)
Effect of exchange rate changes on cash and cash equivalents	(66,792)	(1,700)
Increase (decrease) in cash and cash equivalents	(62,889)	85,387
Cash and cash equivalents at end of period	1,026,051	1,013,819
Supplemental cash flow information:
Cash paid for interest	8,508	8,117
Cash paid for taxes, net	$ 148,151	$ 47,687

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Oct. 01, 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. Fiscal Year End On September 7, 2022, Cadence’s Board of Directors approved a change in its fiscal year end from the Saturday closest to December 31 of each year to December 31 of each year. Cadence’s fiscal quarters will end on March 31, June 30, and September 30. The fiscal year change is effective beginning with Cadence’s 2023 fiscal year, which will begin on January 1, 2023. Cadence’s fiscal year end date for fiscal 2022 will remain December 31, 2022 as previously disclosed. Consistent with SEC guidance, no transition report is required in connection with the change in Cadence’s fiscal year end. Accordingly, Cadence intends to file an Annual Report on Form 10-K for the year ended December 31, 2022, and the new fiscal year will take effect from January 1, 2023 to December 31, 2023. 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. Despite continued uncertainty and disruption in the global economy and financial markets, Cadence is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of October 24, 2022, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events or developments 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. Cadence adopted this standard on January 2, 2022, the first day of fiscal 2022. The adoption of this standard did not impact acquired contract assets or liabilities from business combinations that occurred prior to the date of adoption, and the impact in current and future periods will depend on the contract assets and contract liabilities acquired. For business combinations completed during the third quarter of fiscal 2022, Cadence recognized deferred revenue of $11.8 million from the acquired businesses as if Cadence had originated the contracts in accordance with Topic 606 rather than at fair value. For additional information relating to Cadence’s acquisitions, see Note 5 in the notes to condensed consolidated financial statements.

Revenue

Revenue	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2022 and October 2, 2021: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Custom Integrated Circuit (“IC”) Design and Simulation 22 % 23 % 22 % 23 % Digital IC Design and Signoff 29 % 29 % 28 % 28 % Functional Verification, including Emulation and Prototyping Hardware* 25 % 23 % 26 % 25 % Intellectual Property (“IP”) 12 % 14 % 13 % 13 % System Design and Analysis 12 % 11 % 11 % 11 % 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 single customer accounted for 10% or more of total revenue during the three and nine months ended October 1, 2022 or the three and nine months ended October 2, 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 nine months ended October 1, 2022 and October 2, 2021: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Revenue recognized over time 81 % 86 % 82 % 84 % Revenue from arrangements with non-cancelable commitments 3 % 3 % 2 % 3 % Recurring revenue 84 % 89 % 84 % 87 % Up-front revenue 16 % 11 % 16 % 13 % 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 October 1, 2022 and January 1, 2022 were as follows: As of October 1, January 1, (In thousands) Contract assets $ 38,442 $ 6,811 Deferred revenue 754,473 655,090 Cadence recognized revenue of $63.9 million and $488.9 million during the three and nine months ended October 1, 2022, and $59.8 million and $389.8 million during the three and nine months ended October 2, 2021, that was included in the deferred revenue balance at the beginning of each respective fiscal year. All other activity in deferred revenue, with the exception of deferred revenue assumed from acquisitions, 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 $5.5 billion as of October 1, 2022, which included $433.5 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 October 1, 2022, Cadence expected to recognize 54% 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 $12.1 million and $35.2 million during the three and nine months ended October 1, 2022, and $13.3 million and $35.0 million during the three and nine months ended October 2, 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	9 Months Ended
	Oct. 01, 2022
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of October 1, 2022 and January 1, 2022 were as follows: As of October 1, January 1, (In thousands) Accounts receivable $ 240,369 $ 185,599 Unbilled accounts receivable 153,376 155,689 Long-term receivables 9,473 5,098 Total receivables 403,218 346,386 Less allowance for doubtful accounts (2,564) (3,692) Total receivables, net $ 400,654 $ 342,694

Debt

Debt	9 Months Ended
	Oct. 01, 2022
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of October 1, 2022 and January 1, 2022 was as follows: October 1, 2022 January 1, 2022 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ 150,000 $ — $ 150,000 $ — $ — $ — 2024 Notes 350,000 (1,794) 348,206 350,000 (2,412) 347,588 2025 Term Loan 300,000 (407) 299,593 — — — Total outstanding debt $ 800,000 $ (2,201) $ 797,799 $ 350,000 $ (2,412) $ 347,588 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”). In September 2022, Cadence amended the 2021 Credit Facility to, among other things, allow Cadence to change its fiscal year to match the calendar year commencing in 2023 and change the interest rate benchmark for loans under the 2021 Credit Facility from LIBOR to Term SOFR. The material terms of the 2021 Credit Facility otherwise remain unchanged. 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 the 2021 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) SOFR plus a margin between 0.750% and 1.250% per annum, determined by reference to the credit rating of Cadence’s unsecured debt, plus a SOFR adjustment of 0.10% 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. As of October 1, 2022, the interest rate on the 2021 Credit Facility was 3.82%. 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 contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness and grant liens. In addition, the 2021 Credit Facility contains financial covenants that require Cadence to maintain a funded debt to EBITDA ratio not greater than 3.25 to 1, with a step up to 3.75 to 1 for one year following an acquisition by Cadence of at least $250.0 million that results in a pro forma leverage ratio between 3.00 to 1 and 3.50 to 1. As of October 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 carrying value of the 2024 Notes was $348.2 million and $347.6 million as of October 1, 2022 and January 1, 2022, respectively. The fair value of the 2024 Notes was approximately $345.8 million as of October 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. 2025 Term Loan In September 2022, Cadence entered into a $300.0 million three-year senior non-amortizing term loan facility due on September 7, 2025 with a group of lenders led by Bank of America, N.A., as administrative agent (the “2025 Term Loan”). The 2025 Term Loan is unsecured and ranks equal in right of payment to all of Cadence’s unsecured indebtedness. Proceeds from the loan were used to fund Cadence’s acquisition of OpenEye Scientific Software, Inc. (“OpenEye”). Amounts outstanding under the 2025 Term Loan accrue interest at a rate equal to, at Cadence’s option, either (1) Term SOFR plus a margin between 0.625% per annum and 1.125% per annum, determined by reference to the credit rating of Cadence’s unsecured debt, plus a SOFR adjustment of 0.10% or (2) base rate plus a margin between 0.000% per annum and 0.125% per annum, determined by reference to the credit rating of Cadence’s unsecured debt. As of October 1, 2022, the interest rate on the 2025 Term Loan was 4.08%. Interest is payable quarterly. Borrowings bear interest at what is estimated to be current market rates of interest. Accordingly, the carrying value of the 2025 Term Loan approximates fair value.

Acquisitions

Acquisitions	9 Months Ended
	Oct. 01, 2022
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	ACQUISITIONS Acquisition of OpenEye Scientific Software, Inc. On August 31, 2022, Cadence acquired all of the outstanding equity of OpenEye, a leading provider of computational molecular modeling and simulation software used by pharmaceutical and biotechnology companies for drug discovery. The addition of OpenEye’s technologies and experienced team with its deep scientific expertise is expected to accelerate Cadence’s Intelligent System Design™ strategy and broadens Cadence’s System Design and Analysis technology portfolio. The acquisition expands Cadence’s total addressable market, bringing Cadence’s computational software expertise to apply proven algorithmic, simulation and solver advances to life sciences. The aggregate cash consideration for Cadence’s acquisition of OpenEye, net of cash acquired of $13.2 million, was $461.1 million. Subject to service and other conditions, Cadence expects to recognize expense for consideration paid to certain former OpenEye shareholders, now employed by Cadence, through the first quarter of fiscal 2026. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date as follows: Fair Value (In thousands) Current assets $ 24,890 Goodwill 368,148 Acquired intangibles 117,400 Other long-term assets 6,542 Total assets acquired 516,980 Current liabilities 15,489 Long-term liabilities 27,225 Total liabilities assumed 42,714 Total purchase consideration $ 474,266 The allocation of purchase consideration to certain assets and liabilities has not been finalized. Cadence will continue to evaluate certain estimates and assumptions, primarily related to taxes and assumed liabilities, during the measurement period (up to one year from the acquisition date). The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and will not be deductible for tax purposes. Acquired Intangibles Fair Value Weighted-Average Amortization Period (In thousands) (in years) Existing technology $ 53,900 7.0 years Agreements and relationships 61,400 12.3 years Tradenames, trademarks and patents 2,100 7.0 years Total acquired intangibles with definite lives $ 117,400 9.8 years Acquisition of FFG Holdings Limited 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. 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 aggregate cash consideration for Cadence’s acquisition of Future Facilities, net of cash acquired of $2.8 million, was $100.1 million. Subject to service and other conditions, Cadence expects to recognize expense for consideration paid to certain former Future Facilities shareholders, now employed by Cadence, subject to service and other conditions, through the third quarter of fiscal 2025. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date as follows: Fair Value (In thousands) Current assets $ 7,992 Goodwill 67,868 Acquired intangibles 38,100 Other long-term assets 3,102 Total assets acquired 117,062 Current liabilities 4,952 Long-term liabilities 9,210 Total liabilities assumed 14,162 Total purchase consideration $ 102,900 The allocation of purchase consideration to certain assets and liabilities has not been finalized. Cadence will continue to evaluate certain estimates and assumptions, primarily related to taxes and assumed liabilities, during the measurement period (up to one year from the acquisition date). The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce and expected synergies from combining operations of Future Facilities with Cadence. The goodwill will not be deductible for tax purposes. Acquired Intangibles Fair Value Weighted-Average Amortization Period (In thousands) (in years) Existing technology $ 20,900 6.0 years Agreements and relationships 15,600 9.0 years Tradenames, trademarks and patents 1,600 8.0 years Total acquired intangibles with definite lives $ 38,100 7.3 years Other Acquisitions During the second quarter of fiscal 2022, Cadence completed one business combination for aggregate cash consideration of $25.0 million. The total purchase consideration was allocated to assets acquired based on their respective estimated fair values on the acquisition date. Cadence recorded $15.0 million of acquired intangible assets, which consisted of $8.2 million of existing technology and $6.8 million of in-process technology. Cadence also recognized $10.0 million of goodwill, which is primarily attributed to an assembled workforce. The goodwill recognized is expected to be deductible for tax purposes. Pro Forma Financial Information Cadence has not presented pro forma financial information for acquisitions completed during the first three quarters of fiscal 2022 because the results of operations from the acquired businesses are not material to Cadence’s condensed consolidated financial statements. Transaction Costs

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	9 Months Ended
	Oct. 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 the nine months ended October 1, 2022 were as follows: Gross Carrying (In thousands) Balance as of January 1, 2022 $ 928,358 Goodwill resulting from acquisitions 446,000 Effect of foreign currency translation (25,864) Balance as of October 1, 2022 $ 1,348,494 Acquired Intangibles, Net Acquired intangibles as of October 1, 2022 were as follows, excluding intangibles that were fully amortized as of January 1, 2022: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 468,489 $ (267,918) $ 200,571 Agreements and relationships 269,597 (133,089) 136,508 Tradenames, trademarks and patents 12,545 (2,512) 10,033 Total acquired intangibles with definite lives 750,631 (403,519) 347,112 In-process technology 6,800 — 6,800 Total acquired intangibles $ 757,431 $ (403,519) $ 353,912 In-process technology as of October 1, 2022 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of October 1, 2022, these projects were expected to be completed during the fourth quarter of fiscal 2023. During the three and nine months ended October 1, 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 nine months ended October 1, 2022 and October 2, 2021 by condensed consolidated income statement caption was as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) Cost of product and maintenance $ 8,867 $ 11,774 $ 30,906 $ 35,774 Amortization of acquired intangibles 3,946 5,000 13,543 14,661 Total amortization of acquired intangibles $ 12,813 $ 16,774 $ 44,449 $ 50,435 As of October 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 - remaining period $ 14,870 2023 56,040 2024 54,280 2025 42,213 2026 36,298 2027 34,056 Thereafter 109,355 Total estimated amortization expense $ 347,112

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2022 and October 2, 2021 as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) Cost of product and maintenance $ 1,046 $ 885 $ 2,751 $ 2,601 Cost of services 1,331 1,158 3,494 3,177 Marketing and sales 14,991 10,784 39,650 32,284 Research and development 43,327 32,957 115,516 97,101 General and administrative 12,756 6,962 35,779 20,697 Total stock-based compensation expense $ 73,451 $ 52,746 $ 197,190 $ 155,860

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Oct. 01, 2022
Class of Stock Disclosures [Abstract]
STOCK REPURCHASE PROGRAM	STOCK REPURCHASE PROGRAM In August 2022, 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 and nine months ended October 1, 2022, Cadence repurchased approximately 0.9 million shares and 4.1 million shares, respectively, on the open market, for an aggregate purchase price of $150.0 million and $650.0 million, respectively. 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. In June 2022, 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. In September 2022, the ASR agreement settled and resulted in a delivery to Cadence of approximately 0.1 million additional shares. In total, approximately 0.6 million shares were repurchased under the ASR agreement at an average price per share of $167.07. The shares received were treated as a repurchase of common stock for purposes of calculating earnings per share. As of October 1, 2022, approximately $1.4 billion of Cadence’s share repurchase authorizations remained available to repurchase shares of Cadence common stock. The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three and nine months ended October 1, 2022 and October 2, 2021 were as follows: Three Months Ended Nine Months Ended October 1, 2022* October 2, October 1, October 2, (In thousands) Shares repurchased 959 723 4,664 3,766 Total cost of repurchased shares $ 180,013 $ 110,011 $ 750,062 $ 502,301 _____________ * Includes 109,365 shares and $30.0 million equity forward contract from the June 2022 ASR settled in September 2022.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Oct. 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 the three and nine months ended October 1, 2022 and October 2, 2021 are as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands, except per share amounts) Net income $ 186,305 $ 176,307 $ 608,560 $ 519,376 Weighted average common shares used to calculate basic net income per share 271,131 273,194 271,694 273,636 Stock-based awards 3,826 5,117 3,989 5,410 Weighted average common shares used to calculate diluted net income per share 274,957 278,311 275,683 279,046 Net income per share - basic $ 0.69 $ 0.65 $ 2.24 $ 1.90 Net income per share - diluted $ 0.68 $ 0.63 $ 2.21 $ 1.86 The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended October 1, 2022 and October 2, 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 Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) Long-term market-based awards 1,761 — 1,485 — Options to purchase shares of common stock 514 331 678 267 Non-vested shares of restricted stock 26 5 63 46 Total potential common shares excluded 2,301 336 2,226 313

Fair Value

Fair Value	9 Months Ended
	Oct. 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 the nine months ended October 1, 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 October 1, 2022 and January 1, 2022: Fair Value Measurements as of October 1, 2022 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 587,205 $ 587,205 $ — $ — Marketable equity securities 3,963 3,963 — — Securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 50,509 50,509 — — Total Assets $ 641,677 $ 641,677 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 16,748 $ — $ 16,748 $ — Total Liabilities $ 16,748 $ — $ 16,748 $ — 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, the 2024 Notes and the 2025 Term Loan 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 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%. During the third quarter of fiscal 2022, Cadence acquired combined intangible assets of $155.5 million through its acquisitions of OpenEye and Future Facilities. For existing technology acquired during the third quarter of fiscal 2022, 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 both OpenEye and Future Facilities, Cadence assumed technological obsolescence at a rate of 10% annually, before applying an assumed royalty rate of 25%. The fair value for agreements and relationships acquired during the third quarter of fiscal 2022 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 was determined using customer retention rates between 95% and 100% for OpenEye and 95% for Future Facilities. The present value of operating cash flows from existing customers was determined using discount rates ranging from 10% to 11%. 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	9 Months Ended
	Oct. 01, 2022
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Cadence’s inventory balances as of October 1, 2022 and January 1, 2022 were as follows: As of October 1, January 1, (In thousands) Inventories: Raw materials $ 106,299 $ 88,629 Finished goods 7,984 27,092 Total inventories $ 114,283 $ 115,721

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2022 and October 2, 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 nine months ended October 1, 2022 and October 2, 2021.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Oct. 01, 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 October 1, 2022 and January 1, 2022: As of October 1, January 1, (In thousands) Foreign currency translation loss $ (117,317) $ (26,553) Changes in defined benefit plan liabilities (4,816) (6,758) Total accumulated other comprehensive loss $ (122,133) $ (33,311) For the three and nine months ended October 1, 2022 and October 2, 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	9 Months Ended
	Oct. 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. Long-lived assets are attributed to geography based on the country where the assets are located. The following table presents a summary of revenue by geography for the three and nine months ended October 1, 2022 and October 2, 2021: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) Americas: United States $ 392,222 $ 331,463 $ 1,174,734 $ 970,925 Other Americas 15,165 11,487 39,010 31,353 Total Americas 407,387 342,950 1,213,744 1,002,278 Asia: China 148,325 98,325 401,460 287,357 Other Asia 156,250 136,272 466,891 404,509 Total Asia 304,575 234,597 868,351 691,866 Europe, Middle East and Africa 142,983 129,606 431,660 384,341 Japan 47,609 43,742 148,086 136,723 Total $ 902,554 $ 750,895 $ 2,661,841 $ 2,215,208 The following table presents a summary of long-lived assets by geography as of October 1, 2022 and January 1, 2022: As of October 1, January 1, (In thousands) Americas: United States $ 328,455 $ 267,202 Other Americas 7,376 975 Total Americas 335,831 268,177 Asia: China 52,158 56,403 Other Asia 69,859 54,677 Total Asia 122,017 111,080 Europe, Middle East and Africa 55,560 53,748 Japan 4,504 3,030 Total $ 517,912 $ 436,035

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 01, 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)	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2022 and October 2, 2021: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Custom Integrated Circuit (“IC”) Design and Simulation 22 % 23 % 22 % 23 % Digital IC Design and Signoff 29 % 29 % 28 % 28 % Functional Verification, including Emulation and Prototyping Hardware* 25 % 23 % 26 % 25 % Intellectual Property (“IP”) 12 % 14 % 13 % 13 % System Design and Analysis 12 % 11 % 11 % 11 % Total 100 % 100 % 100 % 100 % _____________ * Includes immaterial amount of revenue accounted for under leasing arrangements. The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for the three and nine months ended October 1, 2022 and October 2, 2021: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Revenue recognized over time 81 % 86 % 82 % 84 % Revenue from arrangements with non-cancelable commitments 3 % 3 % 2 % 3 % Recurring revenue 84 % 89 % 84 % 87 % Up-front revenue 16 % 11 % 16 % 13 % Total 100 % 100 % 100 % 100 %
Contract balances	Cadence’s contract balances as of October 1, 2022 and January 1, 2022 were as follows: As of October 1, January 1, (In thousands) Contract assets $ 38,442 $ 6,811 Deferred revenue 754,473 655,090

Receivables, net (Tables)

Receivables, net (Tables)	9 Months Ended
	Oct. 01, 2022
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of October 1, 2022 and January 1, 2022 were as follows: As of October 1, January 1, (In thousands) Accounts receivable $ 240,369 $ 185,599 Unbilled accounts receivable 153,376 155,689 Long-term receivables 9,473 5,098 Total receivables 403,218 346,386 Less allowance for doubtful accounts (2,564) (3,692) Total receivables, net $ 400,654 $ 342,694

Debt (Tables)

Debt (Tables)	9 Months Ended
	Oct. 01, 2022
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of October 1, 2022 and January 1, 2022 was as follows: October 1, 2022 January 1, 2022 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ 150,000 $ — $ 150,000 $ — $ — $ — 2024 Notes 350,000 (1,794) 348,206 350,000 (2,412) 347,588 2025 Term Loan 300,000 (407) 299,593 — — — Total outstanding debt $ 800,000 $ (2,201) $ 797,799 $ 350,000 $ (2,412) $ 347,588

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Oct. 01, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date as follows: Fair Value (In thousands) Current assets $ 24,890 Goodwill 368,148 Acquired intangibles 117,400 Other long-term assets 6,542 Total assets acquired 516,980 Current liabilities 15,489 Long-term liabilities 27,225 Total liabilities assumed 42,714 Total purchase consideration $ 474,266 The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date as follows: Fair Value (In thousands) Current assets $ 7,992 Goodwill 67,868 Acquired intangibles 38,100 Other long-term assets 3,102 Total assets acquired 117,062 Current liabilities 4,952 Long-term liabilities 9,210 Total liabilities assumed 14,162 Total purchase consideration $ 102,900
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination	Acquired Intangibles Fair Value Weighted-Average Amortization Period (In thousands) (in years) Existing technology $ 53,900 7.0 years Agreements and relationships 61,400 12.3 years Tradenames, trademarks and patents 2,100 7.0 years Total acquired intangibles with definite lives $ 117,400 9.8 years Acquired Intangibles Fair Value Weighted-Average Amortization Period (In thousands) (in years) Existing technology $ 20,900 6.0 years Agreements and relationships 15,600 9.0 years Tradenames, trademarks and patents 1,600 8.0 years Total acquired intangibles with definite lives $ 38,100 7.3 years

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangibles (Tables)	9 Months Ended
	Oct. 01, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during the nine months ended October 1, 2022 were as follows: Gross Carrying (In thousands) Balance as of January 1, 2022 $ 928,358 Goodwill resulting from acquisitions 446,000 Effect of foreign currency translation (25,864) Balance as of October 1, 2022 $ 1,348,494
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of October 1, 2022 were as follows, excluding intangibles that were fully amortized as of January 1, 2022: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 468,489 $ (267,918) $ 200,571 Agreements and relationships 269,597 (133,089) 136,508 Tradenames, trademarks and patents 12,545 (2,512) 10,033 Total acquired intangibles with definite lives 750,631 (403,519) 347,112 In-process technology 6,800 — 6,800 Total acquired intangibles $ 757,431 $ (403,519) $ 353,912 In-process technology as of October 1, 2022 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of October 1, 2022, these projects were expected to be completed during the fourth quarter of fiscal 2023. During the three and nine months ended October 1, 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 nine months ended October 1, 2022 and October 2, 2021 by condensed consolidated income statement caption was as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) Cost of product and maintenance $ 8,867 $ 11,774 $ 30,906 $ 35,774 Amortization of acquired intangibles 3,946 5,000 13,543 14,661 Total amortization of acquired intangibles $ 12,813 $ 16,774 $ 44,449 $ 50,435
Estimated amortization expense	As of October 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 - remaining period $ 14,870 2023 56,040 2024 54,280 2025 42,213 2026 36,298 2027 34,056 Thereafter 109,355 Total estimated amortization expense $ 347,112

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2022 and October 2, 2021 as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) Cost of product and maintenance $ 1,046 $ 885 $ 2,751 $ 2,601 Cost of services 1,331 1,158 3,494 3,177 Marketing and sales 14,991 10,784 39,650 32,284 Research and development 43,327 32,957 115,516 97,101 General and administrative 12,756 6,962 35,779 20,697 Total stock-based compensation expense $ 73,451 $ 52,746 $ 197,190 $ 155,860

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2022 and October 2, 2021 were as follows: Three Months Ended Nine Months Ended October 1, 2022* October 2, October 1, October 2, (In thousands) Shares repurchased 959 723 4,664 3,766 Total cost of repurchased shares $ 180,013 $ 110,011 $ 750,062 $ 502,301 _____________ * Includes 109,365 shares and $30.0 million equity forward contract from the June 2022 ASR settled in September 2022.

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2022 and October 2, 2021 are as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands, except per share amounts) Net income $ 186,305 $ 176,307 $ 608,560 $ 519,376 Weighted average common shares used to calculate basic net income per share 271,131 273,194 271,694 273,636 Stock-based awards 3,826 5,117 3,989 5,410 Weighted average common shares used to calculate diluted net income per share 274,957 278,311 275,683 279,046 Net income per share - basic $ 0.69 $ 0.65 $ 2.24 $ 1.90 Net income per share - diluted $ 0.68 $ 0.63 $ 2.21 $ 1.86
Potential shares of Cadence's common stock excluded	The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended October 1, 2022 and October 2, 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 Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) Long-term market-based awards 1,761 — 1,485 — Options to purchase shares of common stock 514 331 678 267 Non-vested shares of restricted stock 26 5 63 46 Total potential common shares excluded 2,301 336 2,226 313

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Oct. 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 October 1, 2022 and January 1, 2022: Fair Value Measurements as of October 1, 2022 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 587,205 $ 587,205 $ — $ — Marketable equity securities 3,963 3,963 — — Securities held in Non-Qualified Deferred Compensation (“NQDC”) trust 50,509 50,509 — — Total Assets $ 641,677 $ 641,677 $ — $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 16,748 $ — $ 16,748 $ — Total Liabilities $ 16,748 $ — $ 16,748 $ — 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)	9 Months Ended
	Oct. 01, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Cadence’s inventory balances as of October 1, 2022 and January 1, 2022 were as follows: As of October 1, January 1, (In thousands) Inventories: Raw materials $ 106,299 $ 88,629 Finished goods 7,984 27,092 Total inventories $ 114,283 $ 115,721

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Oct. 01, 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 October 1, 2022 and January 1, 2022: As of October 1, January 1, (In thousands) Foreign currency translation loss $ (117,317) $ (26,553) Changes in defined benefit plan liabilities (4,816) (6,758) Total accumulated other comprehensive loss $ (122,133) $ (33,311)

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Oct. 01, 2022
Segment Reporting [Abstract]
Summary of revenue by geography	The following table presents a summary of revenue by geography for the three and nine months ended October 1, 2022 and October 2, 2021: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) Americas: United States $ 392,222 $ 331,463 $ 1,174,734 $ 970,925 Other Americas 15,165 11,487 39,010 31,353 Total Americas 407,387 342,950 1,213,744 1,002,278 Asia: China 148,325 98,325 401,460 287,357 Other Asia 156,250 136,272 466,891 404,509 Total Asia 304,575 234,597 868,351 691,866 Europe, Middle East and Africa 142,983 129,606 431,660 384,341 Japan 47,609 43,742 148,086 136,723 Total $ 902,554 $ 750,895 $ 2,661,841 $ 2,215,208
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of October 1, 2022 and January 1, 2022: As of October 1, January 1, (In thousands) Americas: United States $ 328,455 $ 267,202 Other Americas 7,376 975 Total Americas 335,831 268,177 Asia: China 52,158 56,403 Other Asia 69,859 54,677 Total Asia 122,017 111,080 Europe, Middle East and Africa 55,560 53,748 Japan 4,504 3,030 Total $ 517,912 $ 436,035

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions	Oct. 01, 2022 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue assumed in acquisitions during period	$ 11.8

Revenue (Details)

Revenue (Details)	3 Months Ended			9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021		Oct. 01, 2022		Oct. 02, 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	22%	23%		22%		23%
Digital IC Design and Signoff
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	29%	29%		28%		28%
Functional Verification, including Emulation and Prototyping Hardware*
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	25%	23%	[1]	26%	[1]	25%	[1]
Intellectual Property (“IP”)
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	12%	14%		13%		13%
System Design and Analysis
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	12%	11%		11%		11%
[1]Includes immaterial amount of revenue accounted for under leasing arrangements.

Revenue (Details 1)

Revenue (Details 1)	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 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	84%	89%	84%	87%
Transferred over Time | Single performance obligation
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	81%	86%	82%	84%
Transferred over Time | Multiple performance obligations
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	3%	3%	2%	3%
Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	16%	11%	16%	13%

Revenue (Details 2)

Revenue (Details 2) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Revenue from Contract with Customer [Abstract]
Contract assets	$ 38,442	$ 6,811
Deferred revenue	$ 754,473	$ 655,090

Revenue (Details Textual)

Revenue (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized from deferred revenue during the period	$ 63.9	$ 59.8	$ 488.9	$ 389.8
Remaining performance obligations	5,500		5,500
Non-cancellable commitments from customers included in remaining performance obligations	$ 433.5		$ 433.5
Percent of remaining performance obligations, current	54%		54%
Revenue recognized from satisfaction of performance obligations	$ 12.1	$ 13.3	$ 35.2	$ 35

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Current and long-term receivables balances
Accounts receivable	$ 240,369	$ 185,599
Unbilled accounts receivable	153,376	155,689
Long-term receivables	9,473	5,098
Total receivables	403,218	346,386
Less allowance for doubtful accounts	(2,564)	(3,692)
Total receivables, net	$ 400,654	$ 342,694

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022	Oct. 09, 2014
Debt Disclosure [Abstract]
Revolving credit facility	$ 150,000	$ 0
Unamortized discount	2,201	2,412
Long-term debt	647,799	347,588
Remaining Principal Amount Of Debt Outstanding	800,000	350,000
Carrying Value Of Debt Outstanding	797,799	347,588
Debt Instrument [Line Items]
Revolving credit facility	150,000	0
Unamortized discount	2,201	2,412
Long-term debt	647,799	347,588
Remaining Principal Amount Of Debt Outstanding	800,000	350,000
Carrying Value Of Debt Outstanding	797,799	347,588
Senior Notes Due 2024 [Member] | Senior Notes [Member]
Debt Disclosure [Abstract]
Principal	350,000	350,000	$ 350,000
Unamortized discount	1,794	2,412	1,400
Long-term debt	348,206	347,588
Debt Instrument [Line Items]
Principal	350,000	350,000	350,000
Unamortized discount	1,794	2,412	$ 1,400
Long-term debt	348,206	347,588
Term Loan Due Twenty-Twenty Five
Debt Disclosure [Abstract]
Principal	300,000
Debt Instrument [Line Items]
Principal	300,000
Term Loan Due Twenty-Twenty Five | Notes Payable to Banks
Debt Disclosure [Abstract]
Principal	300,000	0
Unamortized discount	407	0
Long-term debt	299,593	0
Debt Instrument [Line Items]
Principal	300,000	0
Unamortized discount	407	0
Long-term debt	$ 299,593	$ 0

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 01, 2022	Oct. 01, 2022	Oct. 02, 2021
Line of Credit Facility [Line Items]
Payment of debt issuance costs		$ 425	$ 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
Credit facility, interest rate at period end	3.82%	3.82%
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
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate, additional interest		10%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, interest rate spread		0.75%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 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		9 Months Ended
	Oct. 09, 2014	Oct. 01, 2022	Jan. 01, 2022
Debt Instrument [Line Items]
Unamortized discount		$ 2,201	$ 2,412
Carrying value of the 2024 Notes		647,799	347,588
Term Loan Due Twenty-Twenty Five
Debt Instrument [Line Items]
Aggregate principal amount, issued		$ 300,000
Debt instrument, interest rate at period end		4.08%
Debt instrument, covenant, required business acquisition consideration, minimum		$ 250,000
Term Loan Due Twenty-Twenty Five | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, additional interest		0.10%
Term Loan Due Twenty-Twenty Five | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, covenant, debt to EBITDA ratio after step up triggered by acquisition		3.75
Term Loan Due Twenty-Twenty Five | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Credit facility, interest rate spread		1.125%
Debt instrument, covenant, pro forma leverage ratio		3.50
Term Loan Due Twenty-Twenty Five | Maximum [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Credit facility, interest rate spread		0.125%
Term Loan Due Twenty-Twenty Five | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, covenant, debt to EBITDA ratio		3.25
Term Loan Due Twenty-Twenty Five | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Credit facility, interest rate spread		0.625%
Debt instrument, covenant, pro forma leverage ratio		3
Term Loan Due Twenty-Twenty Five | Minimum [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Credit facility, interest rate spread		0%
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	1,794	2,412
Debt issuance costs	$ 6,200
Carrying value of the 2024 Notes		348,206	$ 347,588
Fair value of the 2024 Notes		$ 345,800

Acquisitions (Details Textual)

Acquisitions (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021	Aug. 31, 2022	Jul. 14, 2022	Jan. 01, 2022
Business Acquisition [Line Items]
Cash paid in business combinations, net of cash acquired			$ 586,163	$ 220,026
Goodwill	$ 1,348,494		1,348,494				$ 928,358
Transaction costs associated with acquisitions	3,600	$ 100	10,100	$ 2,000
2022 Other business combination
Business Acquisition [Line Items]
Cash paid in business combinations, net of cash acquired			25,000
Goodwill	10,000		10,000
Acquired intangibles	15,000		15,000
Acquired finite-lived intangibles	8,200		8,200
Acquired intangibles with indefinite lives, in-process research and development	$ 6,800		6,800
OpenEye Scientific Software, Inc.
Business Acquisition [Line Items]
Cash acquired					$ 13,200
Cash paid in business combinations, net of cash acquired			461,100
Goodwill					368,148
Acquired intangibles					$ 117,400
FFG Holdings Limited ("Future Facilities")
Business Acquisition [Line Items]
Cash acquired						$ 2,800
Cash paid in business combinations, net of cash acquired			$ 100,100
Goodwill						67,868
Acquired intangibles						$ 38,100

Acquisitions (Details 1)

Acquisitions (Details 1) - USD ($) $ in Thousands	Oct. 01, 2022	Aug. 31, 2022	Jan. 01, 2022
Business Acquisition [Line Items]
Goodwill	$ 1,348,494		$ 928,358
OpenEye Scientific Software, Inc.
Business Acquisition [Line Items]
Current assets		$ 24,890
Goodwill		368,148
Acquired intangibles		117,400
Other long-term assets		6,542
Total assets acquired		516,980
Current liabilities		15,489
Long-term liabilities		27,225
Total liabilities assumed		42,714
Total purchase consideration		$ 474,266

Acquisitions (Details 2)

Acquisitions (Details 2) - OpenEye Scientific Software, Inc. $ in Thousands	9 Months Ended
	Oct. 01, 2022 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 117,400
Weighted-average useful life of definite-lived intangible assets acquired	9 years 9 months 18 days
Existing Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 53,900
Weighted-average useful life of definite-lived intangible assets acquired	7 years
Agreements and Relationship [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 61,400
Weighted-average useful life of definite-lived intangible assets acquired	12 years 3 months 18 days
Tradename Trademark and Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 2,100
Weighted-average useful life of definite-lived intangible assets acquired	7 years

Acquisitions (Details 3)

Acquisitions (Details 3) - USD ($) $ in Thousands	Oct. 01, 2022	Jul. 14, 2022	Jan. 01, 2022
Business Acquisition [Line Items]
Goodwill	$ 1,348,494		$ 928,358
FFG Holdings Limited ("Future Facilities")
Business Acquisition [Line Items]
Current assets		$ 7,992
Goodwill		67,868
Acquired intangibles		38,100
Other long-term assets		3,102
Total assets acquired		117,062
Current liabilities		4,952
Long-term liabilities		9,210
Total liabilities assumed		14,162
Total purchase consideration		$ 102,900

Acquisitions (Details 4)

Acquisitions (Details 4) - FFG Holdings Limited ("Future Facilities") $ in Thousands	9 Months Ended
	Oct. 01, 2022 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 38,100
Weighted-average useful life of definite-lived intangible assets acquired	7 years 3 months 18 days
Existing Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 20,900
Weighted-average useful life of definite-lived intangible assets acquired	6 years
Agreements and Relationship [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 15,600
Weighted-average useful life of definite-lived intangible assets acquired	9 years
Tradename Trademark and Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 1,600
Weighted-average useful life of definite-lived intangible assets acquired	8 years

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangibles (Details) $ in Thousands	9 Months Ended
	Oct. 01, 2022 USD ($)
Changes in the carrying amount of goodwill
Balance at beginning of period	$ 928,358
Goodwill resulting from acquisitions	446,000
Effect of foreign currency translation	(25,864)
Balance at end of period	$ 1,348,494

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 750,631	$ 621,204
Accumulated amortization	(403,519)	(387,939)
Total estimated amortization expense	347,112	233,265
In-process technology	6,800
Intangible assets, gross carrying amount (excluding goodwill)	757,431
Acquired intangibles, net	353,912	233,265
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	468,489	405,481
Accumulated amortization	(267,918)	(254,599)
Total estimated amortization expense	200,571	150,882
Agreements and Relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	269,597	205,057
Accumulated amortization	(133,089)	(130,187)
Total estimated amortization expense	136,508	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	12,545	10,666
Accumulated amortization	(2,512)	(3,153)
Total estimated amortization expense	$ 10,033	$ 7,513

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Amortization of acquired intangibles
Cost of product and maintenance	$ 8,867	$ 11,774	$ 30,906	$ 35,774
Amortization of acquired intangibles	3,946	5,000	13,543	14,661
Total amortization of acquired intangibles	$ 12,813	$ 16,774	$ 44,449	$ 50,435

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Estimated amortization expense
2022 - remaining period	$ 14,870
2023	56,040
2024	54,280
2025	42,213
2026	36,298
2027	34,056
Thereafter	109,355
Total estimated amortization expense	$ 347,112	$ 233,265

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	9 Months Ended
	Oct. 01, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 534.9
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years 4 months 24 days

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	$ 73,451	$ 52,746	$ 197,190	$ 155,860
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	1,046	885	2,751	2,601
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	1,331	1,158	3,494	3,177
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	14,991	10,784	39,650	32,284
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	43,327	32,957	115,516	97,101
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	$ 12,756	$ 6,962	$ 35,779	$ 20,697

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended			9 Months Ended
	Oct. 01, 2022	[1]	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Class of Stock Disclosures [Abstract]
Shares repurchased	959		723	4,664	3,766
Total cost of repurchased shares	$ 180,013		$ 110,011	$ 750,062	$ 502,301
[1]Includes 109,365 shares and $30.0 million equity forward contract from the June 2022 ASR settled in September 2022.

Stock Repurchase Program (Det_2

Stock Repurchase Program (Details Textuals) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				9 Months Ended
	Oct. 01, 2022		Jul. 02, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021	Aug. 04, 2021
Stock repurchase program
Additional authorized repurchase amount							$ 1,000,000
Shares repurchased	959,000	[1]		723,000	4,664,000	3,766,000
Treasury stock acquired	$ 150,013			$ 110,011	$ 720,062	$ 502,301
Stock repurchase program, remaining authorized repurchase amount	$ 1,400,000				$ 1,400,000
Accelerated share repurchase program
Stock repurchase program
Shares repurchased	100,000		500,000		600,000
Treasury stock acquired			$ 70,000
Accelerated share repurchase, prepayment during period	$ 100,000
Stock repurchase program, prepayment during period, derivative settlement	$ 30,000		$ 30,000
Accelerated share repurchases settlement of equity forward	109,365
Treasury stock acquired, average cost per share					$ 167.07
Share repurchase on open market
Stock repurchase program
Shares repurchased	900,000				4,100,000
Treasury stock acquired	$ 150,000				$ 650,000
[1]Includes 109,365 shares and $30.0 million equity forward contract from the June 2022 ASR settled in September 2022.

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 186,305	$ 176,307	$ 608,560	$ 519,376
Weighted average common shares used to calculate basic net income per share	271,131	273,194	271,694	273,636
Stock-based awards	3,826	5,117	3,989	5,410
Weighted average common shares used to calculate diluted net income per share (in shares)	274,957	278,311	275,683	279,046
Net income per share - basic (usd per share)	$ 0.69	$ 0.65	$ 2.24	$ 1.90
Net income per share - diluted (usd per share)	$ 0.68	$ 0.63	$ 2.21	$ 1.86

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,301	336	2,226	313
Long-term market-based awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,761	0	1,485	0
Options to purchase shares of common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	514	331	678	267
Non-vested shares of restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	26	5	63	46

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Oct. 01, 2022	Jul. 02, 2022	Jan. 01, 2022
Assets
Marketable equity securities	$ 3,963		$ 5,956
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	50,509		56,165
Total Assets	641,677		720,595
Liabilities
Foreign currency exchange contracts	16,748		306
Total Liabilities	16,748		306
Money Market Funds
Assets
Money market funds	587,205		658,474
Fair Value Measurements, Level 1 [Member]
Assets
Marketable equity securities	3,963		5,956
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	50,509		56,165
Total Assets	641,677		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	587,205		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	16,748		306
Total Liabilities	16,748		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	155,500	$ 15,000
Fair Value Measurements, Level 3 [Member] | Money Market Funds
Assets
Money market funds	$ 0		$ 0

Fair Value (Details Textual)

Fair Value (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2022	Oct. 02, 2021	Oct. 01, 2022	Aug. 31, 2022	Jul. 14, 2022
2022 Other business combination
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquired intangibles			$ 15,000
OpenEye Scientific Software, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquired intangibles				$ 117,400
FFG Holdings Limited ("Future Facilities")
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquired intangibles					$ 38,100
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquired intangibles	$ 15,000		$ 155,500
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | 2022 Other business combination | Valuation Technique, Discounted Cash Flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Significant Input, Discount Rate	23%
Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | 2022 Other business combination | Valuation Technique, Discounted Cash Flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Significant Input, Discount Rate	25%
Fair Value, Inputs, Level 3 [Member] | Customer Relationships | Measurement Input, Discount Rate [Member] | FFG Holdings Limited ("Future Facilities")
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Customer Retention Rate		95%
Fair Value, Inputs, Level 3 [Member] | Customer Relationships | Minimum [Member] | Measurement Input, Discount Rate [Member] | OpenEye Scientific Software, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Significant Input, Discount Rate		10%
Estimated Customer Retention Rate		95%
Fair Value, Inputs, Level 3 [Member] | Customer Relationships | Minimum [Member] | Measurement Input, Discount Rate [Member] | FFG Holdings Limited ("Future Facilities")
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Significant Input, Discount Rate		10%
Fair Value, Inputs, Level 3 [Member] | Customer Relationships | Maximum [Member] | Measurement Input, Discount Rate [Member] | OpenEye Scientific Software, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Significant Input, Discount Rate		11%
Estimated Customer Retention Rate		100%
Fair Value, Inputs, Level 3 [Member] | Customer Relationships | Maximum [Member] | Measurement Input, Discount Rate [Member] | FFG Holdings Limited ("Future Facilities")
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Significant Input, Discount Rate		11%
Fair Value, Inputs, Level 3 [Member] | Technology-Based Intangible Assets | Measurement Input, Discount Rate [Member] | OpenEye Scientific Software, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Technological Obsolescence Rate		10%
Estimated Royalty Rate		25%
Fair Value, Inputs, Level 3 [Member] | Technology-Based Intangible Assets | Measurement Input, Discount Rate [Member] | FFG Holdings Limited ("Future Facilities")
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Technological Obsolescence Rate		10%
Estimated Royalty Rate		25%

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 106,299	$ 88,629
Finished goods	7,984	27,092
Total inventories	$ 114,283	$ 115,721

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss, Net of Tax	$ (122,133)	$ (33,311)
Accumulated Other Comprehensive Loss [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	(122,133)	(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	(117,317)	(26,553)
Accumulated Other Comprehensive Loss [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	(117,317)	(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	(4,816)	(6,758)
Accumulated Other Comprehensive Loss [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	$ (4,816)	$ (6,758)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Segment reporting [Line Items]
Total revenue	$ 902,554	$ 750,895	$ 2,661,841	$ 2,215,208
United States [Member]
Segment reporting [Line Items]
Total revenue	392,222	331,463	1,174,734	970,925
Other Americas [Member]
Segment reporting [Line Items]
Total revenue	15,165	11,487	39,010	31,353
Americas [Member]
Segment reporting [Line Items]
Total revenue	407,387	342,950	1,213,744	1,002,278
China [Member]
Segment reporting [Line Items]
Total revenue	148,325	98,325	401,460	287,357
Other Asia [Member]
Segment reporting [Line Items]
Total revenue	156,250	136,272	466,891	404,509
Asia [Member]
Segment reporting [Line Items]
Total revenue	304,575	234,597	868,351	691,866
EMEA [Member]
Segment reporting [Line Items]
Total revenue	142,983	129,606	431,660	384,341
Japan [Member]
Segment reporting [Line Items]
Total revenue	$ 47,609	$ 43,742	$ 148,086	$ 136,723

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	$ 517,912	$ 436,035
United States [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	328,455	267,202
Other Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	7,376	975
Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	335,831	268,177
China [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	52,158	56,403
Other Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	69,859	54,677
Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	122,017	111,080
EMEA [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	55,560	53,748
Japan [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	$ 4,504	$ 3,030