Cadence Design Systems (CDNS) 10-Q23 Oct 232023 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page	9 Months Ended
Cover Page	Sep. 30, 2023 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	272,062,000
Entity Central Index Key	0000813672
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 961,982	$ 882,325
Receivables, net	426,505	486,710
Inventories	163,693	128,005
Prepaid expenses and other	272,283	209,727
Total current assets	1,824,463	1,706,767
Property, plant and equipment, net	379,776	371,451
Goodwill	1,500,442	1,374,268
Acquired intangibles, net	347,617	354,617
Deferred taxes	874,805	853,691
Other assets	504,272	476,277
Total assets	5,431,375	5,137,071
Current liabilities:
Revolving credit facility	0	100,000
Accounts payable and accrued liabilities	598,261	557,158
Current portion of deferred revenue	665,906	690,538
Total current liabilities	1,264,167	1,347,696
Long-term liabilities:
Long-term portion of deferred revenue	100,609	91,524
Long-term debt	648,801	648,078
Other long-term liabilities	303,904	304,660
Total long-term liabilities	1,053,314	1,044,262
Commitments and contingencies
Stockholders’ equity:
Common stock and capital in excess of par value	3,077,954	2,765,673
Treasury stock, at cost	(4,463,484)	(3,824,163)
Retained earnings	4,612,485	3,895,240
Accumulated other comprehensive loss	(113,061)	(91,637)
Total stockholders’ equity	3,113,894	2,745,113
Total liabilities and stockholders’ equity	$ 5,431,375	$ 5,137,071

Condensed Consolidated Income S

Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Revenues [Abstract]
Revenue	$ 1,023,094	$ 902,554	$ 3,021,363	$ 2,661,841
Costs and Expenses:
Marketing and sales	176,215	152,925	509,951	432,407
Research and development	369,642	323,629	1,074,353	901,121
General and administrative	58,556	73,688	166,688	174,051
Amortization of acquired intangibles	4,612	3,946	13,181	13,543
Restructuring	11,582	14	11,582	42
Total costs and expenses	730,188	641,802	2,106,666	1,799,272
Income from operations	292,906	260,752	914,697	862,569
Interest expense	(9,059)	(5,463)	(27,196)	(13,852)
Other income (expense), net	16,106	(3,017)	32,363	(13,879)
Income before provision for income taxes	299,953	252,272	919,864	834,838
Provision for income taxes	45,632	65,967	202,619	226,278
Net income	$ 254,321	$ 186,305	$ 717,245	$ 608,560
Net income per share - basic (usd per share)	$ 0.94	$ 0.69	$ 2.66	$ 2.24
Net Income per share - diluted (usd per share)	$ 0.93	$ 0.68	$ 2.63	$ 2.21
Weighted average common shares outstanding - basic (in shares)	269,229	271,131	269,480	271,694
Weighted average common shares outstanding - diluted (in shares)	272,427	274,957	272,859	275,683
Product and maintenance [Member]
Revenues [Abstract]
Revenue	$ 965,840	$ 845,788	$ 2,852,372	$ 2,494,317
Costs and Expenses:
Cost of sales	85,813	62,351	260,269	203,863
Service [Member]
Revenues [Abstract]
Revenue	57,254	56,766	168,991	167,524
Costs and Expenses:
Cost of sales	$ 23,768	$ 25,249	$ 70,642	$ 74,245

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 254,321	$ 186,305	$ 717,245	$ 608,560
Other comprehensive loss, net of tax effects:
Foreign currency translation adjustments	(21,692)	(40,768)	(20,546)	(90,764)
Changes in defined benefit plan liabilities	132	15	537	1,942
Unrealized losses on investments	(991)	0	(1,415)	0
Total other comprehensive loss, net of tax effects	(22,551)	(40,753)	(21,424)	(88,822)
Comprehensive income	$ 231,770	$ 145,552	$ 695,821	$ 519,738

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, shares at Jan. 01, 2022			276,796
Beginning balance at Jan. 01, 2022	$ 2,740,675			$ 2,467,701	$ (2,740,003)	$ 3,046,288	$ (33,311)
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, shares at Oct. 01, 2022			274,316
Ending balance at Oct. 01, 2022	2,708,128			2,697,632	(3,522,219)	3,654,848	(122,133)
Beginning balance, shares at Jul. 02, 2022			273,870
Beginning balance at Jul. 02, 2022	2,625,229			2,590,893	(3,352,827)	3,468,543	(81,380)
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, shares at Oct. 01, 2022			274,316
Ending balance at Oct. 01, 2022	2,708,128			2,697,632	(3,522,219)	3,654,848	(122,133)
Beginning balance, shares at Dec. 31, 2022			272,675
Beginning balance at Dec. 31, 2022	2,745,113			2,765,673	(3,824,163)	3,895,240	(91,637)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	717,245					717,245
Other comprehensive loss, net of taxes	$ (21,424)						(21,424)
Purchase of treasury stock, shares	(2,657)		(2,657)
Purchase of treasury stock	$ (515,127)				(515,127)
Equity forward contract	(60,000)			1,688	(61,688)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares			2,527
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	131,341			91,894	39,447
Stock received for payment of employee taxes on vesting of restricted stock, shares			(483)
Stock received for payment of employee taxes on vesting of restricted stock	(122,182)			(20,229)	(101,953)
Stock-based compensation expense	238,928			238,928
Ending balance, shares at Sep. 30, 2023			272,062
Ending balance at Sep. 30, 2023	3,113,894			3,077,954	(4,463,484)	4,612,485	(113,061)
Beginning balance, shares at Jun. 30, 2023			271,790
Beginning balance at Jun. 30, 2023	2,908,455			2,897,885	(4,257,084)	4,358,164	(90,510)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	254,321					254,321
Other comprehensive loss, net of taxes	$ (22,551)						(22,551)
Purchase of treasury stock, shares	(811)	[2]	(811)
Purchase of treasury stock	$ (125,008)				(125,008)
Equity forward contract	0			61,688	(61,688)
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares			1,230
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures	53,839			39,810	14,029
Stock received for payment of employee taxes on vesting of restricted stock, shares			(147)
Stock received for payment of employee taxes on vesting of restricted stock	(43,194)			(9,461)	(33,733)
Stock-based compensation expense	88,032			88,032
Ending balance, shares at Sep. 30, 2023			272,062
Ending balance at Sep. 30, 2023	$ 3,113,894			$ 3,077,954	$ (4,463,484)	$ 4,612,485	$ (113,061)

[1]Includes 109 thousand shares and $30 million equity forward contract from the June 2022 ASR settled in September 2022.[2]Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022
Statement of Cash Flows [Abstract]
Cash and cash equivalents at beginning of period	$ 882,325	$ 1,088,940
Cash flows from operating activities:
Net income	717,245	608,560
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	106,783	98,178
Amortization of debt discount and fees	942	810
Stock-based compensation	238,928	197,190
(Gain) loss on investments, net	(12,732)	4,777
Deferred income taxes	(23,506)	(49,834)
Provisions for losses on receivables	1,692	471
ROU asset amortization and change in operating lease liabilities	(2,684)	(883)
Other non-cash items	1,962	158
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	50,024	(57,309)
Inventories	(47,293)	(8,020)
Prepaid expenses and other	33,307	30,596
Other assets	(26,580)	17,644
Accounts payable and accrued liabilities	43,111	24,514
Deferred revenue	(14,628)	113,712
Other long-term liabilities	10,514	(2,305)
Net cash provided by operating activities	1,077,085	978,259
Cash flows from investing activities:
Purchases of investments	(145,150)	(1,000)
Proceeds from the sale and maturity of investments	64,174	0
Purchases of property, plant and equipment	(68,634)	(86,295)
Purchases of intangible assets	0	(1,000)
Cash paid in business combinations, net of cash acquired	(163,963)	(586,163)
Net cash used for investing activities	(313,573)	(674,458)
Cash flows from financing activities:
Proceeds from term loan	0	300,000
Proceeds from revolving credit facility	50,000	450,000
Payments on revolving credit facility	(150,000)	(300,000)
Payment of debt issuance costs	0	(425)
Proceeds from issuance of common stock	131,341	103,682
Stock received for payment of employee taxes on vesting of restricted stock	(122,182)	(103,093)
Payments for repurchases of common stock	(575,127)	(750,062)
Net cash used for financing activities	(665,968)	(299,898)
Effect of exchange rate changes on cash and cash equivalents	(17,887)	(66,792)
Increase (decrease) in cash and cash equivalents	79,657	(62,889)
Cash and cash equivalents at end of period	961,982	1,026,051
Supplemental cash flow information:
Cash paid for interest	22,226	8,508
Cash paid for income taxes, net	$ 104,721	$ 148,151

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by Cadence Design Systems, Inc. (“Cadence”) without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, Cadence believes that the disclosures contained in this Quarterly Report on Form 10-Q comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These condensed consolidated financial statements are meant to be, and should be, read in conjunction with the consolidated financial statements and the notes thereto included in Cadence’s Annual Report on Form 10-K for the fiscal year ended December 31, 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 In fiscal 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. The fiscal year change became effective with Cadence’s 2023 fiscal year, which began on January 1, 2023. Cadence’s fiscal quarters now end on March 31, June 30, and September 30. No transition report is required in connection with this change. 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 macroeconomic and geopolitical environment, 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 23, 2023, 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 There have been no recent accounting standard updates that are material or potentially material to Cadence.

Revenue

Revenue	9 Months Ended
Revenue	Sep. 30, 2023
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 September 30, 2023 and October 1, 2022: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Custom Integrated Circuit (“IC”) Design and Simulation 22 % 22 % 21 % 22 % Digital IC Design and Signoff 28 % 29 % 27 % 28 % Functional Verification, including Emulation and Prototyping Hardware* 26 % 25 % 29 % 26 % Intellectual Property (“IP”) 11 % 12 % 11 % 13 % System Design and Analysis 13 % 12 % 12 % 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 September 30, 2023 or October 1, 2022. Approximately 85% of Cadence’s annual revenue is characterized as recurring revenue. Recurring revenue includes revenue recognized over time from Cadence’s 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 is 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 September 30, 2023 and October 1, 2022: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Revenue recognized over time 83 % 81 % 80 % 82 % Revenue from arrangements with non-cancelable commitments 2 % 3 % 3 % 2 % Recurring revenue 85 % 84 % 83 % 84 % Up-front revenue 15 % 16 % 17 % 16 % 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 stand-alone 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 September 30, 2023 and December 31, 2022 were as follows: As of September 30, December 31, (In thousands) Contract assets $ 14,353 $ 22,766 Deferred revenue 766,515 782,062 Cadence recognized revenue of $106.6 million and $632.4 million during the three and nine months ended September 30, 2023, and $63.9 million and $488.9 million during the three and nine months ended October 1, 2022, that was included in the deferred revenue balance at the beginning of each respective fiscal year. All other activity in deferred revenue is due to the timing of invoices in relation to the timing of revenue as described above. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, Cadence has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing Cadence’s products and services, and not to facilitate financing arrangements. Remaining Performance Obligations Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Cadence has elected to exclude the potential future royalty receipts from the remaining performance obligations. Contracted but unsatisfied performance obligations were approximately $5.4 billion as of September 30, 2023, which included $0.4 billion 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 September 30, 2023, Cadence expected to recognize 54% of the contracted but unsatisfied performance obligations, excluding non-cancelable commitments, as revenue over the next 12 months. Cadence recognized revenue of $13.5 million and $40.3 million during the three and nine months ended September 30, 2023, and $12.1 million and $35.2 million during the three and nine months ended October 1, 2022, 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
Receivables, net	Sep. 30, 2023
Receivables [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET Cadence’s current and long-term receivables balances as of September 30, 2023 and December 31, 2022 were as follows: As of September 30, December 31, (In thousands) Accounts receivable $ 264,580 $ 314,666 Unbilled accounts receivable 164,827 174,334 Long-term receivables 9,009 2,735 Total receivables 438,416 491,735 Less allowance for doubtful accounts (2,902) (2,290) Total receivables, net $ 435,514 $ 489,445

Debt

Debt	9 Months Ended
Debt	Sep. 30, 2023
Debt Disclosure [Abstract]
DEBT	DEBT Cadence’s outstanding debt as of September 30, 2023 and December 31, 2022 was as follows: September 30, 2023 December 31, 2022 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ 100,000 $ — $ 100,000 2024 Notes 350,000 (936) 349,064 350,000 (1,581) 348,419 2025 Term Loan 300,000 (263) 299,737 300,000 (341) 299,659 Total outstanding debt $ 650,000 $ (1,199) $ 648,801 $ 750,000 $ (1,922) $ 748,078 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 the London Inter-Bank Offered Rate (“LIBOR”) to Term Secured Overnight Financing Rate (“SOFR”). The material terms of the 2021 Credit Facility otherwise remain unchanged. The 2021 Credit Facility provides for borrowings up to $700.0 million, with the right to request increased capacity up to an additional $350.0 million upon the receipt of lender commitments, for total maximum borrowings of $1.05 billion. The 2021 Credit Facility expires on June 30, 2026. Any outstanding loans drawn under 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. A commitment fee ranging from 0.070% to 0.175% is assessed on the daily average undrawn portion of revolving commitments. Borrowings bear interest at what is estimated to be current market rates of interest. Accordingly, the carrying value of the 2021 Credit Facility approximates fair value. The 2021 Credit Facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness, grant liens and make certain asset dispositions. 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 September 30, 2023, Cadence was in compliance with all financial covenants associated with the 2021 Credit Facility. 2024 Notes In October 2014, Cadence issued a $350.0 million aggregate principal amount of 4.375% Senior Notes due October 15, 2024 (the “2024 Notes”). Cadence received net proceeds of $342.4 million from the issuance of the 2024 Notes, net of a discount of $1.4 million and issuance costs of $6.2 million. Both the discount and issuance costs are being amortized to interest expense over the term of the 2024 Notes using the effective interest method. Interest is payable in cash semi-annually in April and October. The 2024 Notes are unsecured and rank equal in right of payment to all of Cadence’s existing and future senior indebtedness. The fair value of the 2024 Notes was approximately $345.7 million as of September 30, 2023. 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. Debt issuance costs associated with the 2025 Term Loan were not material. 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% 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% and 0.125% per annum, determined by reference to the credit rating of Cadence’s unsecured debt. As of September 30, 2023, the interest rate on the 2025 Term Loan was 6.18%. 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. The 2025 Term Loan contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness, grant liens and make certain asset dispositions. In addition, the 2025 Term Loan contains a financial covenant that requires 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 September 30, 2023, Cadence was in compliance with all financial covenants associated with the 2025 Term Loan.

Acquisitions

Acquisitions	9 Months Ended
Acquisitions	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	ACQUISITIONS On September 6, 2023, Cadence acquired the serializer/deserializer (“SerDes”) and memory interface physical layer (“Memory”) IP business from Rambus Inc. (“Rambus”) for an aggregate cash consideration of $108.6 million. Memory and SerDes IP design and integration continues to be integral to the design of artificial intelligence, data center and hyperscale applications, CPU architectures and networking devices. The addition of the Rambus IP and seasoned team accelerates Cadence’s Intelligent System Design strategy and strengthens Cadence's IP technology portfolio. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective fair values on the acquisition date as follows: Fair Value (In thousands) Current assets $ 1,460 Goodwill 80,999 Acquired intangibles 26,000 Other long-term assets 2,798 Total assets acquired 111,257 Current liabilities 2,531 Long-term liabilities 142 Total liabilities assumed 2,673 Total purchase consideration $ 108,584 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 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 be deductible for tax purposes. Definite-lived intangible assets acquired with Cadence’s acquisition of the SerDes and Memory business from Rambus were as follows: Fair Value Weighted Average Amortization Period (In thousands) (in years) Existing technology $ 16,700 5.0 years Agreements and relationships 9,300 7.0 years Total acquired intangibles with definite lives $ 26,000 5.7 years On May 4, 2023, Cadence acquired all of the outstanding equity of Pulsic, Ltd. (“Pulsic”), a longtime provider of production-proven technology for floor-planning, placement, and routing of custom ICs. The addition of Pulsic’s technologies and experienced team supports Cadence’s Intelligent System Design strategy and strengthens Cadence’s Custom IC Design and Simulation technology portfolio. The aggregate cash consideration for Cadence’s acquisition of Pulsic, net of cash acquired of $3.8 million, was $56.1 million. Subject to service and other conditions, Cadence expects to recognize expense for consideration paid to certain former Pulsic shareholders, now employed by Cadence, through the second quarter of fiscal 2025. The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Pulsic based on their respective fair values on the acquisition date as follows: Fair Value (In thousands) Current assets $ 4,369 Goodwill 47,448 Acquired intangibles 12,400 Other long-term assets 89 Total assets acquired 64,306 Current liabilities 1,553 Long-term liabilities 2,885 Total liabilities assumed 4,438 Total purchase consideration $ 59,868 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. Definite-lived intangible assets acquired with Cadence’s acquisition of Pulsic were as follows: Fair Value Weighted Average Amortization Period (In thousands) (in years) Existing technology $ 8,000 6.2 years Agreements and relationships 4,100 8.0 years Tradenames, trademarks and patents 300 6.0 years Total acquired intangibles with definite lives $ 12,400 6.8 years Pro Forma Financial Information Cadence has not presented pro forma financial information for the businesses acquired during fiscal 2023 because the results of operations for these businesses are not material to Cadence’s condensed consolidated financial statements. Acquisition-Related Transaction Costs Transaction costs associated with acquisitions, which consist of professional fees and administrative costs, are expensed as incurred and are included in general and administrative expense in Cadence’s condensed consolidated income statement. During the three and nine months ended September 30, 2023, transaction costs associated with acquisitions were $4.3 million and $10.3 million, respectively. During the three and nine months ended October 1, 2022, transaction costs associated with acquisitions were $3.6 million and $10.1 million, respectively.

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangibles	9 Months Ended
Goodwill and Acquired Intangibles	Sep. 30, 2023
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 September 30, 2023 were as follows: Gross Carrying (In thousands) Balance as of December 31, 2022 $ 1,374,268 Goodwill resulting from acquisitions 128,447 Effect of foreign currency translation (2,273) Balance as of September 30, 2023 $ 1,500,442 Acquired Intangibles, Net Acquired intangibles as of September 30, 2023 were as follows, excluding intangibles that were fully amortized as of December 31, 2022: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 323,359 $ (129,807) $ 193,552 Agreements and relationships 194,625 (56,671) 137,954 Tradenames, trademarks and patents 13,242 (3,931) 9,311 Total acquired intangibles with definite lives 531,226 (190,409) 340,817 In-process technology 6,800 — 6,800 Total acquired intangibles $ 538,026 $ (190,409) $ 347,617 In-process technology as of September 30, 2023 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of September 30, 2023, these projects were expected to be completed during the first quarter of fiscal 2024. During the three and nine months ended September 30, 2023, there were no transfers from in-process technology to existing technology. Acquired intangibles as of December 31, 2022 were as follows, excluding intangibles that were fully amortized as of January 1, 2022: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 479,796 $ (278,851) $ 200,945 Agreements and relationships 274,624 (137,847) 136,777 Tradenames, trademarks and patents 12,979 (2,884) 10,095 Total acquired intangibles with definite lives $ 767,399 $ (419,582) $ 347,817 In-process technology 6,800 — 6,800 Total acquired intangibles $ 774,199 $ (419,582) $ 354,617 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 September 30, 2023 and October 1, 2022 by condensed consolidated income statement caption was as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of product and maintenance $ 10,991 $ 8,867 $ 31,869 $ 30,906 Amortization of acquired intangibles 4,612 3,946 13,181 13,543 Total amortization of acquired intangibles $ 15,603 $ 12,813 $ 45,050 $ 44,449 As of September 30, 2023, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter: (In thousands) 2023 - remaining period $ 16,309 2024 63,382 2025 50,658 2026 44,879 2027 42,438 2028 38,371 Thereafter 84,780 Total estimated amortization expense $ 340,817

Stock Based Compensation

Stock Based Compensation	9 Months Ended
Stock Based Compensation	Sep. 30, 2023
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 September 30, 2023 and October 1, 2022 as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of product and maintenance $ 1,191 $ 1,046 $ 3,292 $ 2,751 Cost of services 1,516 1,331 4,190 3,494 Marketing and sales 18,042 14,991 48,819 39,650 Research and development 53,013 43,327 142,142 115,516 General and administrative 14,270 12,756 40,485 35,779 Total stock-based compensation expense $ 88,032 $ 73,451 $ 238,928 $ 197,190

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
Stock Repurchase Program	Sep. 30, 2023
Class of Stock Disclosures [Abstract]
STOCK REPURCHASE PROGRAM	STOCK REPURCHASE PROGRAM In August 2023, Cadence’s Board of Directors increased the prior authorization to repurchase shares of Cadence common stock by authorizing an additional $1.0 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 September 30, 2023, Cadence repurchased approximately 0.5 million and 1.8 million shares on the open market, for an aggregate purchase price of $125 million and $375 million, respectively. In June 2023, Cadence also entered into an accelerated share repurchase (“ASR”) agreement with HSBC Bank USA, National Association (“HSBC”) to repurchase an aggregate of $200.0 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 2023, Cadence received an initial share delivery of approximately 0.6 million shares, which represented the number of shares at a market price equal to $140.0 million. An equity-linked contract for $60 million, representing the remaining shares to be delivered by HSBC under the ASR agreement, was recorded to stockholders' equity as of June 30, 2023. In August 2023, the ASR agreement settled and resulted in a delivery of approximately 0.3 million additional shares to Cadence. In total, Cadence received approximately 0.9 million shares under the ASR agreement at an average price per share of $228.26. The shares received were treated as repurchased common stock for purposes of calculating earnings per share. As of September 30, 2023, approximately $1.5 billion of Cadence’s share repurchase authorization remained available to repurchase shares of Cadence common stock. The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three and nine months ended September 30, 2023 and October 1, 2022 were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Shares repurchased 811 959 2,657 4,664 Total cost of repurchased shares $ 185,008 $ 180,013 $ 575,127 $ 750,062

Restructuring and Other Termina

Restructuring and Other Termination Benefits	9 Months Ended
Restructuring and Other Termination Benefits	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND OTHER CHARGES	RESTRUCTURING In August 2023, Cadence initiated a restructuring plan (the “2023 Restructuring Plan”) designed to better align its resources with its business strategy. The charges incurred with the 2023 Restructuring Plan during the three and nine months ended September 30, 2023, are comprised of severance payments and termination benefits related to headcount reductions and are included in restructuring on Cadence’s condensed consolidated income statements. In addition to headcount reductions, Cadence is evaluating certain facilities for closure as part of the 2023 Restructuring Plan. During the three and nine months ended September 30, 2023, no facility-related restructuring charges were incurred, and charges in future periods for the facilities under consideration are not expected to exceed $5 million. The following table presents activity for the 2023 Restructuring Plan during the nine months ended September 30, 2023: Severance and Benefits (In thousands) Balance as of December 31, 2022 $ — Restructuring charges 11,582 Cash payments (2,620) Effect of foreign currency translation (117) Balance as of September 30, 2023 $ 8,845 All liabilities for severance and related benefits under the 2023 Restructuring Plan are included in accounts payable and accrued liabilities on Cadence’s condensed consolidated balance sheets as of September 30, 2023. Cadence expects to make cash payments to settle these liabilities through the first half of fiscal 2024.

Other Income and Expenses

Other Income and Expenses	9 Months Ended
Other Income and Expenses	Sep. 30, 2023
Other Income and Expenses [Abstract]
OTHER INCOME (EXPENSE), NET	OTHER INCOME (EXPENSE), NET Cadence’s other income (expense), net, for the three and nine months ended September 30, 2023 and October 1, 2022 are as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Interest income $ 8,453 $ 3,051 $ 22,253 $ 4,941 Gains (losses) on marketable equity investments 14,339 (408) 14,960 (1,993) Losses on non-marketable equity investments (1,050) (1,246) (2,225) (2,786) Gains (losses) on securities in Non-Qualified Deferred Compensation (“NQDC”) trust (1,749) (2,885) 4,556 (11,977) Losses on foreign exchange (3,568) (1,299) (4,649) (1,418) Other expense, net (319) (230) (2,532) (646) Total other income (expense), net $ 16,106 $ (3,017) $ 32,363 $ (13,879)

Net Income Per Share

Net Income Per Share	9 Months Ended
Net Income Per Share	Sep. 30, 2023
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 September 30, 2023 and October 1, 2022 are as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands, except per share amounts) Net income $ 254,321 $ 186,305 $ 717,245 $ 608,560 Weighted average common shares used to calculate basic net income per share 269,229 271,131 269,480 271,694 Stock-based awards 3,198 3,826 3,379 3,989 Weighted average common shares used to calculate diluted net income per share 272,427 274,957 272,859 275,683 Net income per share - basic $ 0.94 $ 0.69 $ 2.66 $ 2.24 Net income per share - diluted $ 0.93 $ 0.68 $ 2.63 $ 2.21 The following table presents shares of Cadence’s common stock outstanding for the three and nine months ended September 30, 2023 and October 1, 2022 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 September 30, October 1, September 30, October 1, (In thousands) Long-term market-based awards 1,866 1,761 1,841 1,485 Options to purchase shares of common stock 262 514 373 678 Non-vested shares of restricted stock 807 26 288 63 Total potential common shares excluded 2,935 2,301 2,502 2,226

Investments

Investments	9 Months Ended
Investments	Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS	INVESTMENTS Marketable Equity Investments Cadence’s investments in marketable equity securities consist of purchased shares of publicly held companies and are included in prepaid expenses and other in Cadence’s condensed consolidated balance sheets. Changes in the fair value of these investments are recorded to other income (expense), net in Cadence’s condensed consolidated income statements. The carrying value of marketable equity investments was $58.4 million and $4.5 million as of September 30, 2023 and December 31, 2022, respectively. Marketable Debt Securities The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on the condensed consolidated balance sheet as of September 30, 2023: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated (In thousands) Available-for-sale securities Mortgage-backed and asset-backed securities $ 44,042 $ 6 $ (1,421) $ 42,627 Total available-for-sale securities $ 44,042 $ 6 $ (1,421) $ 42,627 Gross unrealized gains and losses are recorded as a component of accumulated other comprehensive loss on Cadence's condensed consolidated balance sheets. As of September 30, 2023, the fair values of available-for-sale debt securities, by remaining contractual maturity, were as follows: (In thousands) Due within 1 year $ — Due after 1 year through 5 years 8,366 Due after 5 years through 10 years 14,174 Due after 10 years 20,087 Total $ 42,627 As of September 30, 2023, Cadence does not intend to sell any of its available-for-sale securities in an unrealized loss position, and it is more likely than not that Cadence will hold the securities until maturity or a recovery of the cost basis. Non-Marketable Equity Investments Cadence’s investments in non-marketable equity securities generally consist of stock or other instruments of privately held entities and are included in other assets on Cadence’s condensed consolidated balance sheets. Cadence holds a 16% interest in a privately held company that is accounted for using the equity method of accounting. The carrying value of this investment was $112.6 million and $117.7 million as of September 30, 2023 and December 31, 2022, respectively. Cadence records its proportionate share of net income from the investee, offset by amortization of basis differences, to other income (expense), net in Cadence’s condensed consolidated income statements. For the three and nine months ended September 30, 2023, Cadence recognized losses of $1.0 million and $2.2 million, respectively. For the three and nine months ended October 1, 2022, Cadence recognized losses of $1.2 million and $2.5 million, respectively. Cadence also holds other non-marketable investments in privately held companies where Cadence does not have the ability to exercise significant influence and the fair value of the investments is not readily determinable. The carrying value of these investments was $2.2 million and $2.3 million as of September 30, 2023 and December 31, 2022, respectively. Gains and losses on these investments were not material to Cadence’s condensed consolidated financial statements for the periods presented.

Fair Value

Fair Value	9 Months Ended
Fair Value	Sep. 30, 2023
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 September 30, 2023. 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 September 30, 2023 and December 31, 2022: Fair Value Measurements as of September 30, 2023 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 444,303 $ 444,303 $ — $ — Marketable securities: Marketable equity securities 58,411 58,411 — — Mortgage-backed and asset-backed securities 42,627 — 42,627 — Securities held in NQDC trust 67,324 67,324 — — Total Assets $ 612,665 $ 570,038 $ 42,627 $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 10,102 $ — $ 10,102 $ — Total Liabilities $ 10,102 $ — $ 10,102 $ — Fair Value Measurements as of December 31, 2022 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 548,373 $ 548,373 $ — $ — Marketable equity securities 4,490 4,490 — — Securities held in NQDC trust 55,605 55,605 — — Foreign currency exchange contracts 5,306 — 5,306 — Total Assets $ 613,774 $ 608,468 $ 5,306 $ — As of December 31, 2022, Cadence did not have any financial liabilities requiring a recurring fair value measurement. Level 1 Measurements Cadence’s cash equivalents held in money market funds, marketable equity securities and the trading securities held in Cadence’s NQDC trust are measured at fair value using Level 1 inputs. Level 2 Measurements The valuation techniques used to determine the fair value of Cadence’s investments in marketable debt securities, foreign currency forward exchange contracts and 2024 Notes are classified within Level 2 of the fair value hierarchy. For additional information relating to Cadence’s debt arrangements, see Note 4 in the notes to condensed consolidated financial statements. Level 3 Measurements During the nine months ended September 30, 2023, Cadence acquired intangible assets of $38.4 million. The fair value of the intangible assets acquired was determined using variations of the income approach that utilizes unobservable inputs classified as Level 3 measurements. For existing technology, the fair value was determined by applying the relief-from-royalty method. This method is based on the application of a royalty rate to forecasted revenue to quantify the benefit of owning the intangible asset rather than paying a royalty for use of the asset. To estimate royalty savings over time, Cadence projected revenue from 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. Cadence assumed technological obsolescence at rates between 10% and 13% annually, before applying an assumed royalty rate between 25% and 30%. For agreements and relationships, the fair value 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 80% and 90%. The present value of operating cash flows from existing customers was determined using discount rates between 13.5% and 15%.

Inventory

Inventory	9 Months Ended
Inventory	Sep. 30, 2023
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Cadence’s inventory balances as of September 30, 2023 and December 31, 2022 were as follows: As of September 30, December 31, (In thousands) Inventories: Raw materials $ 154,097 $ 113,982 Finished goods 9,596 14,023 Total inventories $ 163,693 $ 128,005

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and legal proceedings related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, customers, products, distribution and other commercial arrangements and employee relations matters. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates . Tax Proceedings In December 2022, Cadence received a tax audit assessment of approximately $49 million from the Korea taxing authorities for years 2017-2019. The tax audit assessment is primarily related to value-added taxes. Cadence is required to pay these assessed taxes, prior to being allowed to contest or litigate the assessment in administrative and judicial proceedings. The assessment was paid by Cadence in January 2023 and recorded as a component of other assets in the condensed consolidated balance sheets. Payment of this amount is not an admission that Cadence is subject to such taxes, and Cadence continues to defend its position vigorously. Cadence did not record a reserve for this contingency as of September 30, 2023 or December 31, 2022 as Cadence does not believe a loss is probable because it believes it will ultimately prevail in full. The entire dispute resolution process may take from one to eight years. 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 September 30, 2023 and October 1, 2022. 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. In connection with a litigation campaign launched in April 2022 by Bell Semiconductor LLC (“Bell Semi”), a patent monetization entity, some customers sought defense and indemnification against claims of patent infringement asserted by Bell Semi in various district court litigation and at the U.S. International Trade Commission. Bell Semi alleged that the customers’ use of one or more features of certain Cadence products infringed one or more of six patents held by Bell Semi. Cadence offered to defend some of its customers consistent with the terms of the applicable license agreements. On July 25, 2023, Cadence and Bell Semi reached a settlement agreement involving the six patents-in-suit. The settlement amount was not material to Cadence. Cadence did not incur any material losses from indemnification claims during the three and nine months ended September 30, 2023 and October 1, 2022.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
Accumulated Other Comprehensive Loss	Sep. 30, 2023
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, changes in defined benefit plan liabilities and unrealized gains and losses on investments, and is presented in Cadence’s condensed consolidated statements of comprehensive income. Accumulated other comprehensive loss was comprised of the following as of September 30, 2023 and December 31, 2022: As of September 30, December 31, (In thousands) Foreign currency translation loss $ (106,409) $ (85,863) Changes in defined benefit plan liabilities (5,237) (5,774) Unrealized losses on investments (1,415) — Total accumulated other comprehensive loss $ (113,061) $ (91,637) For the three and nine months ended September 30, 2023 and October 1, 2022, there were no significant amounts related to foreign currency translation loss, changes in defined benefit plan liabilities or unrealized gains and losses on investments reclassified from accumulated other comprehensive loss to net income.

Segment Reporting

Segment Reporting	9 Months Ended
Segment Reporting	Sep. 30, 2023
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 September 30, 2023 and October 1, 2022: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Americas: United States $ 421,547 $ 392,222 $ 1,241,488 $ 1,174,734 Other Americas 15,800 15,165 47,884 39,010 Total Americas 437,347 407,387 1,289,372 1,213,744 Asia: China 172,022 148,325 523,694 401,460 Other Asia 197,831 156,250 558,687 466,891 Total Asia 369,853 304,575 1,082,381 868,351 Europe, Middle East and Africa 158,194 142,983 479,268 431,660 Japan 57,700 47,609 170,342 148,086 Total $ 1,023,094 $ 902,554 $ 3,021,363 $ 2,661,841 The following table presents a summary of long-lived assets by geography as of September 30, 2023 and December 31, 2022: As of September 30, December 31, (In thousands) Americas: United States $ 364,932 $ 347,822 Other Americas 10,169 7,548 Total Americas 375,101 355,370 Asia: China 41,386 51,667 Other Asia 70,743 73,329 Total Asia 112,129 124,996 Europe, Middle East and Africa 51,291 56,959 Japan 2,820 4,505 Total $ 541,341 $ 541,830

Subsequent Event

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENTOn October 2, 2023, Cadence acquired all of the outstanding equity of Intrinsix Corporation (“Intrinsix”) from CEVA, Inc. The acquisition enhances Cadence’s system and IC design services resources with the addition of a team with expertise in advanced nodes, radio frequency, mixed-signal and security algorithms. The acquisition also expands Cadence’s reach in key high-growth verticals, including aerospace and defense. The aggregate cash consideration of approximately $35 million will be allocated to the assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. Cadence expects to complete the initial accounting for its acquisition of Intrinsix during the fourth quarter of fiscal 2023.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Pay vs Performance Disclosure
Net income	$ 254,321	$ 186,305	$ 717,245	$ 608,560

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
Insider Trading Arrangements	Sep. 30, 2023 shares	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		During the fiscal quarter ended September 30, 2023, our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated the contracts, instructions or written plans for the purchase or sale of our securities set forth in the table below. Type of Trading Arrangement Name and Position Action Adoption/ Termination Rule 10b5-1* Total Shares of Common Stock to be Sold Expiration Date Karna Nisewaner, CVP, General Counsel and Corporate Secretary Adoption 8/9/2023 X Up to 7,072 9/30/2024 Anirudh Devgan, President and Chief Executive Officer Termination (1) 9/13/2023 X Up to 109,381 (2) 5/30/2024 Anirudh Devgan, President and Chief Executive Officer Adoption (1) 9/13/2023 X Up to 203,474 (3) 12/31/2024 Alberto Sangiovanni-Vincentelli, Director Adoption 9/13/2023 X Up to 37,000 12/19/2024 * Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. (1) Represents the modification, as described in Rule 10b5-1(c)(1)(iv) under the Exchange Act, of a Rule 10b5-1 trading plan adopted on June 14, 2023. As a result of this modification, the subject plan is deemed terminated and a new plan is deemed adopted as of the modification date. (2) Includes up to 109,381 shares subject to Performance Stock Awards previously granted to Dr. Devgan subject to vesting and release to Dr. Devgan during the period from August 25, 2023 to March 15, 2024 upon the satisfaction of the applicable total shareholder return hurdles and relative total shareholder return threshold. The actual number of shares that will vest in connection with these awards is not yet determinable. In addition, the actual number of shares that will be released to Dr. Devgan in connection with these awards and could have been sold under the Rule 10b5-1 trading arrangement would have been net of the number of shares withheld to satisfy tax withholding obligations arising from the vesting of such shares.
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Karna Nisewaner [Member]
Trading Arrangements, by Individual
Name	Karna Nisewaner
Title	CVP, General Counsel and Corporate Secretary
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	8/9/2023
Arrangement Duration	364 days
Aggregate Available	7,072	7,072
Anirudh Devgan [Member]
Trading Arrangements, by Individual
Name	Anirudh Devgan
Title	President and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	9/13/2023
Arrangement Duration	351 days
Aggregate Available	203,474	203,474
Alberto Sangiovanni-Vincentelli [Member]
Trading Arrangements, by Individual
Name	Alberto Sangiovanni-Vincentelli
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	9/13/2023
Arrangement Duration	463 days
Aggregate Available	37,000	37,000
Anirudh Devgan Trading Arrangement, 2023 Plan Termination [Member] \| Anirudh Devgan [Member]
Trading Arrangements, by Individual
Name	Anirudh Devgan
Title	President and Chief Executive Officer
Rule 10b5-1 Arrangement Terminated	true
Termination Date	9/13/2023
Aggregate Available	109,381	109,381
Anirudh Devgan Trading Arrangement, Performance Stock Awards [Member] \| Anirudh Devgan [Member]
Trading Arrangements, by Individual
Aggregate Available	100,766	100,766

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
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 litigation that arise in the ordinary course of business. These include disputes and legal proceedings related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, customers, products, distribution and other commercial arrangements and employee relations matters. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and litigation matters and may revise estimates .

Revenue (Tables)

Revenue (Tables)	9 Months Ended
Revenue (Tables)	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue from external customers by product category	The following table shows the percentage of revenue contributed by each of Cadence’s five product categories for the three and nine months ended September 30, 2023 and October 1, 2022: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Custom Integrated Circuit (“IC”) Design and Simulation 22 % 22 % 21 % 22 % Digital IC Design and Signoff 28 % 29 % 27 % 28 % Functional Verification, including Emulation and Prototyping Hardware* 26 % 25 % 29 % 26 % Intellectual Property (“IP”) 11 % 12 % 11 % 13 % System Design and Analysis 13 % 12 % 12 % 11 % Total 100 % 100 % 100 % 100 % _____________ * Includes immaterial amount of revenue accounted for under leasing arrangements.
Disaggregation of revenue	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 September 30, 2023 and October 1, 2022: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Revenue recognized over time 83 % 81 % 80 % 82 % Revenue from arrangements with non-cancelable commitments 2 % 3 % 3 % 2 % Recurring revenue 85 % 84 % 83 % 84 % Up-front revenue 15 % 16 % 17 % 16 % Total 100 % 100 % 100 % 100 %
Contract balances	Cadence’s contract balances as of September 30, 2023 and December 31, 2022 were as follows: As of September 30, December 31, (In thousands) Contract assets $ 14,353 $ 22,766 Deferred revenue 766,515 782,062

Receivables, net (Tables)

Receivables, net (Tables)	9 Months Ended
Receivables, net (Tables)	Sep. 30, 2023
Receivables [Abstract]
Current and long-term accounts receivable balances	Cadence’s current and long-term receivables balances as of September 30, 2023 and December 31, 2022 were as follows: As of September 30, December 31, (In thousands) Accounts receivable $ 264,580 $ 314,666 Unbilled accounts receivable 164,827 174,334 Long-term receivables 9,009 2,735 Total receivables 438,416 491,735 Less allowance for doubtful accounts (2,902) (2,290) Total receivables, net $ 435,514 $ 489,445

Debt (Tables)

Debt (Tables)	9 Months Ended
Debt (Tables)	Sep. 30, 2023
Debt Disclosure [Abstract]
Summary of debt outstanding	Cadence’s outstanding debt as of September 30, 2023 and December 31, 2022 was as follows: September 30, 2023 December 31, 2022 (In thousands) Principal Unamortized Discount Carrying Value Principal Unamortized Discount Carrying Value Revolving Credit Facility $ — $ — $ — $ 100,000 $ — $ 100,000 2024 Notes 350,000 (936) 349,064 350,000 (1,581) 348,419 2025 Term Loan 300,000 (263) 299,737 300,000 (341) 299,659 Total outstanding debt $ 650,000 $ (1,199) $ 648,801 $ 750,000 $ (1,922) $ 748,078

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
Acquisitions (Tables)	Sep. 30, 2023
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 fair values on the acquisition date as follows: Fair Value (In thousands) Current assets $ 1,460 Goodwill 80,999 Acquired intangibles 26,000 Other long-term assets 2,798 Total assets acquired 111,257 Current liabilities 2,531 Long-term liabilities 142 Total liabilities assumed 2,673 Total purchase consideration $ 108,584 Fair Value (In thousands) Current assets $ 4,369 Goodwill 47,448 Acquired intangibles 12,400 Other long-term assets 89 Total assets acquired 64,306 Current liabilities 1,553 Long-term liabilities 2,885 Total liabilities assumed 4,438 Total purchase consideration $ 59,868
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination	Definite-lived intangible assets acquired with Cadence’s acquisition of the SerDes and Memory business from Rambus were as follows: Fair Value Weighted Average Amortization Period (In thousands) (in years) Existing technology $ 16,700 5.0 years Agreements and relationships 9,300 7.0 years Total acquired intangibles with definite lives $ 26,000 5.7 years Definite-lived intangible assets acquired with Cadence’s acquisition of Pulsic were as follows: Fair Value Weighted Average Amortization Period (In thousands) (in years) Existing technology $ 8,000 6.2 years Agreements and relationships 4,100 8.0 years Tradenames, trademarks and patents 300 6.0 years Total acquired intangibles with definite lives $ 12,400 6.8 years

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangibles (Tables)	9 Months Ended
Goodwill and Acquired Intangibles (Tables)	Sep. 30, 2023
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 September 30, 2023 were as follows: Gross Carrying (In thousands) Balance as of December 31, 2022 $ 1,374,268 Goodwill resulting from acquisitions 128,447 Effect of foreign currency translation (2,273) Balance as of September 30, 2023 $ 1,500,442
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)	Acquired intangibles as of September 30, 2023 were as follows, excluding intangibles that were fully amortized as of December 31, 2022: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 323,359 $ (129,807) $ 193,552 Agreements and relationships 194,625 (56,671) 137,954 Tradenames, trademarks and patents 13,242 (3,931) 9,311 Total acquired intangibles with definite lives 531,226 (190,409) 340,817 In-process technology 6,800 — 6,800 Total acquired intangibles $ 538,026 $ (190,409) $ 347,617 In-process technology as of September 30, 2023 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of September 30, 2023, these projects were expected to be completed during the first quarter of fiscal 2024. During the three and nine months ended September 30, 2023, there were no transfers from in-process technology to existing technology. Acquired intangibles as of December 31, 2022 were as follows, excluding intangibles that were fully amortized as of January 1, 2022: Gross Carrying Accumulated Acquired (In thousands) Existing technology $ 479,796 $ (278,851) $ 200,945 Agreements and relationships 274,624 (137,847) 136,777 Tradenames, trademarks and patents 12,979 (2,884) 10,095 Total acquired intangibles with definite lives $ 767,399 $ (419,582) $ 347,817 In-process technology 6,800 — 6,800 Total acquired intangibles $ 774,199 $ (419,582) $ 354,617
Amortization of acquired intangibles	Amortization expense for the three and nine months ended September 30, 2023 and October 1, 2022 by condensed consolidated income statement caption was as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of product and maintenance $ 10,991 $ 8,867 $ 31,869 $ 30,906 Amortization of acquired intangibles 4,612 3,946 13,181 13,543 Total amortization of acquired intangibles $ 15,603 $ 12,813 $ 45,050 $ 44,449
Estimated amortization expense	As of September 30, 2023, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter: (In thousands) 2023 - remaining period $ 16,309 2024 63,382 2025 50,658 2026 44,879 2027 42,438 2028 38,371 Thereafter 84,780 Total estimated amortization expense $ 340,817

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2023
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 September 30, 2023 and October 1, 2022 as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of product and maintenance $ 1,191 $ 1,046 $ 3,292 $ 2,751 Cost of services 1,516 1,331 4,190 3,494 Marketing and sales 18,042 14,991 48,819 39,650 Research and development 53,013 43,327 142,142 115,516 General and administrative 14,270 12,756 40,485 35,779 Total stock-based compensation expense $ 88,032 $ 73,451 $ 238,928 $ 197,190

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	9 Months Ended
Stock Repurchase Program (Tables)	Sep. 30, 2023
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 September 30, 2023 and October 1, 2022 were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Shares repurchased 811 959 2,657 4,664 Total cost of repurchased shares $ 185,008 $ 180,013 $ 575,127 $ 750,062 _____________ Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023. *Includes 109 thousand shares and $30 million equity forward contract from the June 2022 ASR settled in September 2022.

Restructuring and Other Termi_2

Restructuring and Other Termination Benefits (Tables)	9 Months Ended
Restructuring and Other Termination Benefits (Tables)	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring reserve rollforward by major type of cost	The following table presents activity for the 2023 Restructuring Plan during the nine months ended September 30, 2023: Severance and Benefits (In thousands) Balance as of December 31, 2022 $ — Restructuring charges 11,582 Cash payments (2,620) Effect of foreign currency translation (117) Balance as of September 30, 2023 $ 8,845

Other Income and Expenses (Tabl

Other Income and Expenses (Tables)	9 Months Ended
Other Income and Expenses (Tables)	Sep. 30, 2023
Other Income and Expenses [Abstract]
Schedule of Other Nonoperating Income (Expense)	Cadence’s other income (expense), net, for the three and nine months ended September 30, 2023 and October 1, 2022 are as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Interest income $ 8,453 $ 3,051 $ 22,253 $ 4,941 Gains (losses) on marketable equity investments 14,339 (408) 14,960 (1,993) Losses on non-marketable equity investments (1,050) (1,246) (2,225) (2,786) Gains (losses) on securities in Non-Qualified Deferred Compensation (“NQDC”) trust (1,749) (2,885) 4,556 (11,977) Losses on foreign exchange (3,568) (1,299) (4,649) (1,418) Other expense, net (319) (230) (2,532) (646) Total other income (expense), net $ 16,106 $ (3,017) $ 32,363 $ (13,879)

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
Net Income Per Share (Tables)	Sep. 30, 2023
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 September 30, 2023 and October 1, 2022 are as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands, except per share amounts) Net income $ 254,321 $ 186,305 $ 717,245 $ 608,560 Weighted average common shares used to calculate basic net income per share 269,229 271,131 269,480 271,694 Stock-based awards 3,198 3,826 3,379 3,989 Weighted average common shares used to calculate diluted net income per share 272,427 274,957 272,859 275,683 Net income per share - basic $ 0.94 $ 0.69 $ 2.66 $ 2.24 Net income per share - diluted $ 0.93 $ 0.68 $ 2.63 $ 2.21
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 September 30, 2023 and October 1, 2022 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 September 30, October 1, September 30, October 1, (In thousands) Long-term market-based awards 1,866 1,761 1,841 1,485 Options to purchase shares of common stock 262 514 373 678 Non-vested shares of restricted stock 807 26 288 63 Total potential common shares excluded 2,935 2,301 2,502 2,226

Investments, Equity Method and

Investments, Equity Method and Joint Ventures (Tables)	9 Months Ended
Investments, Equity Method and Joint Ventures (Tables)	Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Unrealized Gain (Loss) on Investments	The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on the condensed consolidated balance sheet as of September 30, 2023: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated (In thousands) Available-for-sale securities Mortgage-backed and asset-backed securities $ 44,042 $ 6 $ (1,421) $ 42,627 Total available-for-sale securities $ 44,042 $ 6 $ (1,421) $ 42,627
Investments Classified by Contractual Maturity Date	As of September 30, 2023, the fair values of available-for-sale debt securities, by remaining contractual maturity, were as follows: (In thousands) Due within 1 year $ — Due after 1 year through 5 years 8,366 Due after 5 years through 10 years 14,174 Due after 10 years 20,087 Total $ 42,627

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
Fair Value (Tables)	Sep. 30, 2023
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 September 30, 2023 and December 31, 2022: Fair Value Measurements as of September 30, 2023 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 444,303 $ 444,303 $ — $ — Marketable securities: Marketable equity securities 58,411 58,411 — — Mortgage-backed and asset-backed securities 42,627 — 42,627 — Securities held in NQDC trust 67,324 67,324 — — Total Assets $ 612,665 $ 570,038 $ 42,627 $ — Total Level 1 Level 2 Level 3 (In thousands) Liabilities Foreign currency exchange contracts $ 10,102 $ — $ 10,102 $ — Total Liabilities $ 10,102 $ — $ 10,102 $ — Fair Value Measurements as of December 31, 2022 Total Level 1 Level 2 Level 3 (In thousands) Assets Cash equivalents: Money market funds $ 548,373 $ 548,373 $ — $ — Marketable equity securities 4,490 4,490 — — Securities held in NQDC trust 55,605 55,605 — — Foreign currency exchange contracts 5,306 — 5,306 — Total Assets $ 613,774 $ 608,468 $ 5,306 $ — As of December 31, 2022, Cadence did not have any financial liabilities requiring a recurring fair value measurement.

Inventory (Tables)

Inventory (Tables)	9 Months Ended
Inventory (Tables)	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of inventory	Cadence’s inventory balances as of September 30, 2023 and December 31, 2022 were as follows: As of September 30, December 31, (In thousands) Inventories: Raw materials $ 154,097 $ 113,982 Finished goods 9,596 14,023 Total inventories $ 163,693 $ 128,005

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Sep. 30, 2023
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 September 30, 2023 and December 31, 2022: As of September 30, December 31, (In thousands) Foreign currency translation loss $ (106,409) $ (85,863) Changes in defined benefit plan liabilities (5,237) (5,774) Unrealized losses on investments (1,415) — Total accumulated other comprehensive loss $ (113,061) $ (91,637)

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
Segment Reporting (Tables)	Sep. 30, 2023
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 September 30, 2023 and October 1, 2022: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Americas: United States $ 421,547 $ 392,222 $ 1,241,488 $ 1,174,734 Other Americas 15,800 15,165 47,884 39,010 Total Americas 437,347 407,387 1,289,372 1,213,744 Asia: China 172,022 148,325 523,694 401,460 Other Asia 197,831 156,250 558,687 466,891 Total Asia 369,853 304,575 1,082,381 868,351 Europe, Middle East and Africa 158,194 142,983 479,268 431,660 Japan 57,700 47,609 170,342 148,086 Total $ 1,023,094 $ 902,554 $ 3,021,363 $ 2,661,841
Summary of long-lived assets by geography	The following table presents a summary of long-lived assets by geography as of September 30, 2023 and December 31, 2022: As of September 30, December 31, (In thousands) Americas: United States $ 364,932 $ 347,822 Other Americas 10,169 7,548 Total Americas 375,101 355,370 Asia: China 41,386 51,667 Other Asia 70,743 73,329 Total Asia 112,129 124,996 Europe, Middle East and Africa 51,291 56,959 Japan 2,820 4,505 Total $ 541,341 $ 541,830

Revenue (Details)

Revenue (Details)	3 Months Ended			9 Months Ended
Revenue (Details)	Sep. 30, 2023	Oct. 01, 2022		Sep. 30, 2023		Oct. 01, 2022
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%	22%		21%		22%
Digital IC Design and Signoff
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	28%	29%		27%		28%
Functional Verification, including Emulation and Prototyping Hardware*
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	26%	25%	[1]	29%	[1]	26%	[1]
Intellectual Property (“IP”)
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	11%	12%		11%		13%
System Design and Analysis
Revenue from External Customer [Line Items]
Percentage of product and maintenance revenue by product group	13%	12%		12%		11%

[1]Includes immaterial amount of revenue accounted for under leasing arrangements.

Revenue (Details 1)

Revenue (Details 1)	3 Months Ended		9 Months Ended
Revenue (Details 1)	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
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	85%	84%	83%	84%
Transferred over time \| Single performance obligation
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	83%	81%	80%	82%
Transferred over time \| Multiple performance obligations
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	2%	3%	3%	2%
Transferred at point in time
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, timing of goods or service	15%	16%	17%	16%

Revenue (Details 2)

Revenue (Details 2) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract assets	$ 14,353	$ 22,766
Deferred revenue	$ 766,515	$ 782,062

Revenue (Details Textual)

Revenue (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Revenue (Details Textual) - USD ($) $ in Millions	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Revenue from Contract with Customer [Abstract]
Revenue recognized from deferred revenue during the period	$ 106.6	$ 63.9	$ 632.4	$ 488.9
Remaining performance obligations	5,400		5,400
Non-cancellable commitments from customers included in remaining performance obligations	$ 400		$ 400
Percent of remaining performance obligations, current	54%		54%
Revenue recognized from satisfaction of performance obligations	$ 13.5	$ 12.1	$ 40.3	$ 35.2

Receivables, net (Details)

Receivables, net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current and long-term receivables balances
Accounts receivable	$ 264,580	$ 314,666
Unbilled accounts receivable	164,827	174,334
Long-term receivables	9,009	2,735
Total receivables	438,416	491,735
Less allowance for doubtful accounts	(2,902)	(2,290)
Total receivables, net	$ 435,514	$ 489,445

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 07, 2022	Oct. 09, 2014
Debt Instrument [Line Items]
Remaining Principal Amount Of Debt Outstanding	$ 650,000	$ 750,000
Unamortized discount	1,199	1,922
Carrying Value	0	100,000
Carrying Value	648,801	648,078
Carrying Value Of Debt Outstanding	648,801	748,078
Senior Notes Due 2024 [Member] \| Senior Notes [Member]
Debt Instrument [Line Items]
Principal	350,000	350,000		$ 350,000
Unamortized discount	936	1,581		$ 1,400
Carrying Value	349,064	348,419
Term Loan Due Twenty-Twenty Five
Debt Instrument [Line Items]
Principal			$ 300,000
Term Loan Due Twenty-Twenty Five \| Notes Payable to Banks
Debt Instrument [Line Items]
Principal	300,000	300,000
Unamortized discount	263	341
Carrying Value	299,737	299,659
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Principal	0	100,000
Carrying Value	$ 0	$ 100,000

Debt Credit Facility (Details T

Debt Credit Facility (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 02, 2021	Sep. 30, 2023	Oct. 01, 2022
Line of Credit Facility [Line Items]
Payment of debt issuance costs		$ 0	$ 425
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility, current borrowing capacity		700,000
Credit facility additional borrowing capacity available		350,000
Credit facility, maximum borrowing capacity		$ 1,050,000
Credit facility, maturity date		Jun. 30, 2026
Payment of debt issuance costs	$ 1,300
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
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 \| 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%
Term Secured Overnight Financing Rate (SOFR) \| Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate, additional interest		0.10%
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

Debt (Details Textual)

Debt (Details Textual) - USD ($) $ in Thousands		9 Months Ended
Debt (Details Textual) - USD ($) $ in Thousands	Oct. 09, 2014	Sep. 30, 2023	Dec. 31, 2022	Sep. 07, 2022
Debt Instrument [Line Items]
Unamortized discount		$ 1,199	$ 1,922
Term Loan Due Twenty-Twenty Five
Debt Instrument [Line Items]
Aggregate principal amount, issued				$ 300,000
Debt instrument, interest rate at period end		6.18%
Debt instrument, covenant, debt to EBITDA ratio		3.25
Debt instrument, covenant, debt to EBITDA ratio after step up triggered by acquisition		3.75
Debt instrument, covenant, required business acquisition consideration, minimum		$ 250,000
Term Loan Due Twenty-Twenty Five \| Term Secured Overnight Financing Rate (SOFR)
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, pro forma leverage ratio		3.50
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%
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, pro forma leverage ratio		3
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%
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	936	$ 1,581
Debt issuance costs	$ 6,200
Fair value of the 2024 Notes		$ 345,700

Acquisitions (Details Textual)

Acquisitions (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Acquisitions (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022	May 04, 2023
Business Acquisition [Line Items]
Cash paid in business combinations, net of cash acquired			$ 163,963	$ 586,163
Transaction costs associated with acquisitions	$ 4,300	$ 3,600	10,300	$ 10,100
Pulsic. Ltd.
Business Acquisition [Line Items]
Cash acquired					$ 3,800
Cash paid in business combinations, net of cash acquired			56,100
Rambus
Business Acquisition [Line Items]
Cash paid in business combinations, net of cash acquired			$ 108,600

Acquisitions (Details 1)

Acquisitions (Details 1) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 07, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 1,500,442		$ 1,374,268
Rambus
Business Acquisition [Line Items]
Current assets		$ 1,460
Goodwill		80,999
Acquired intangibles		26,000
Other long-term assets		2,798
Total assets acquired		111,257
Current liabilities		2,531
Long-term liabilities		142
Total liabilities assumed		2,673
Total purchase consideration		$ 108,584

Acquisitions (Details 2)

Acquisitions (Details 2) - Rambus $ in Thousands	9 Months Ended
Acquisitions (Details 2) - Rambus $ in Thousands	Sep. 30, 2023 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 26,000
Weighted-average useful life of definite-lived intangible assets acquired	5 years 8 months 12 days
Existing Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 16,700
Weighted-average useful life of definite-lived intangible assets acquired	5 years
Agreements and Relationship [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 9,300
Weighted-average useful life of definite-lived intangible assets acquired	7 years

Acquisitions (Details 3)

Acquisitions (Details 3) - USD ($) $ in Thousands	Sep. 30, 2023	May 04, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 1,500,442		$ 1,374,268
Pulsic. Ltd.
Business Acquisition [Line Items]
Current assets		$ 4,369
Goodwill		47,448
Acquired intangibles		12,400
Other long-term assets		89
Total assets acquired		64,306
Current liabilities		1,553
Long-term liabilities		2,885
Total liabilities assumed		4,438
Total purchase consideration		$ 59,868

Acquisitions (Details 4)

Acquisitions (Details 4) - Pulsic. Ltd. $ in Thousands	9 Months Ended
Acquisitions (Details 4) - Pulsic. Ltd. $ in Thousands	Sep. 30, 2023 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 12,400
Weighted-average useful life of definite-lived intangible assets acquired	6 years 9 months 18 days
Existing Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 8,000
Weighted-average useful life of definite-lived intangible assets acquired	6 years 2 months 12 days
Agreements and Relationship [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 4,100
Weighted-average useful life of definite-lived intangible assets acquired	8 years
Tradename Trademark and Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 300
Weighted-average useful life of definite-lived intangible assets acquired	6 years

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangibles (Details) $ in Thousands	9 Months Ended
Goodwill and Acquired Intangibles (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Changes in the carrying amount of goodwill
Balance at beginning of period	$ 1,374,268
Goodwill resulting from acquisitions	128,447
Effect of foreign currency translation	(2,273)
Balance at end of period	$ 1,500,442

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangibles (Details 1) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	$ 531,226	$ 767,399
Accumulated amortization	(190,409)	(419,582)
Total estimated amortization expense	340,817	347,817
In-process technology	6,800	6,800
Intangible assets, gross carrying amount (excluding goodwill)	538,026	774,199
Acquired intangibles, net	347,617	354,617
Existing Technology [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	323,359	479,796
Accumulated amortization	(129,807)	(278,851)
Total estimated amortization expense	193,552	200,945
Agreements and Relationships [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	194,625	274,624
Accumulated amortization	(56,671)	(137,847)
Total estimated amortization expense	137,954	136,777
Tradenames Trademarks And Patents [Member]
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year
Gross carrying amount	13,242	12,979
Accumulated amortization	(3,931)	(2,884)
Total estimated amortization expense	$ 9,311	$ 10,095

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangibles (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Amortization of acquired intangibles
Cost of product and maintenance	$ 10,991	$ 8,867	$ 31,869	$ 30,906
Amortization of acquired intangibles	4,612	3,946	13,181	13,543
Total amortization of acquired intangibles	$ 15,603	$ 12,813	$ 45,050	$ 44,449

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangibles (Details 3) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Estimated amortization expense
2023 - remaining period	$ 16,309
2024	63,382
2025	50,658
2026	44,879
2027	42,438
2028	38,371
Thereafter	84,780
Total estimated amortization expense	$ 340,817	$ 347,817

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	$ 88,032	$ 73,451	$ 238,928	$ 197,190
Cost of product and maintenance
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	1,191	1,046	3,292	2,751
Cost of services
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	1,516	1,331	4,190	3,494
Marketing and sales
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	18,042	14,991	48,819	39,650
Research and development
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	53,013	43,327	142,142	115,516
General and administrative
Share-based compensation expense and allocation by cost [Line Items]
Stock-based compensation expense	$ 14,270	$ 12,756	$ 40,485	$ 35,779

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details Textual) - Stock option and restricted stock grants [Member] $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 621.5
Weighted-average vesting period over which unrecognized compensation expense will be recognized	2 years

Stock Repurchase Program (Detai

Stock Repurchase Program (Details Textuals) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					6 Months Ended	9 Months Ended
	Sep. 30, 2023		Jun. 30, 2023	Oct. 01, 2022		Sep. 30, 2023	Sep. 30, 2023	Oct. 01, 2022	Aug. 15, 2022
Stock repurchase program
Additional authorized repurchase amount									$ 1,000,000
Shares repurchased	811,000	[1]		959,000	[2]		2,657,000	4,664,000
Treasury stock acquired	$ 125,008			$ 150,013			$ 515,127	$ 720,062
Stock repurchase program, remaining authorized repurchase amount	$ 1,500,000					$ 1,500,000	$ 1,500,000
Share repurchase on open market
Stock repurchase program
Shares repurchased	500,000						1,800,000
Treasury stock acquired	$ 125,000						$ 375,000
Accelerated share repurchase program
Stock repurchase program
Shares repurchased	300,000		600,000			900,000
Treasury stock acquired			$ 140,000
Accelerated share repurchase, prepayment during period			$ 200,000
Stock repurchase program, prepayment during period, derivative settlement	$ 60,000			$ 30,000
Average repurchase price per share						$ 228.26
Shares from equity forward contract settled during the period	276,000			109,000

[1]Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023.[2]Includes 109 thousand shares and $30 million equity forward contract from the June 2022 ASR settled in September 2022.

Stock Repurchase Program (Det_2

Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2023	[1]	Oct. 01, 2022	[2]	Sep. 30, 2023	Oct. 01, 2022
Class of Stock Disclosures [Abstract]
Shares repurchased	811		959		2,657	4,664
Total cost of repurchased shares	$ 185,008		$ 180,013		$ 575,127	$ 750,062

[1]Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023.[2]Includes 109 thousand shares and $30 million equity forward contract from the June 2022 ASR settled in September 2022.

Restructuring and Other Termi_3

Restructuring and Other Termination Benefits (Details Textual) $ in Millions	Sep. 30, 2023 USD ($)
Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs expected in future periods	$ 5

Restructuring and Other Termi_4

Restructuring and Other Termination Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Restructuring Reserve [Roll Forward]
Restructuring Charges	$ 11,582	$ 14	$ 11,582	$ 42
Employee Severance and Benefits [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			0
Restructuring Charges			11,582
Payments for Restructuring			(2,620)
Restructuring Reserve, Foreign Currency Translation Gain (Loss)			(117)
Ending balance	$ 8,845		$ 8,845

Other Income and Expenses (Deta

Other Income and Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Other Income and Expenses [Abstract]
Interest income	$ 8,453	$ 3,051	$ 22,253	$ 4,941
Gains (losses) on marketable equity investments	14,339	(408)	14,960	(1,993)
Losses on non-marketable equity investments	(1,050)	(1,246)	(2,225)	(2,786)
Gains (losses) on securities in Non-Qualified Deferred Compensation (“NQDC”) trust	(1,749)	(2,885)	4,556	(11,977)
Losses on foreign exchange	(3,568)	(1,299)	(4,649)	(1,418)
Other expense, net	(319)	(230)	(2,532)	(646)
Other income (expense), net	$ 16,106	$ (3,017)	$ 32,363	$ (13,879)

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
	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 254,321	$ 186,305	$ 717,245	$ 608,560
Weighted average common shares used to calculate basic net income per share	269,229	271,131	269,480	271,694
Stock-based awards	3,198	3,826	3,379	3,989
Weighted average common shares used to calculate diluted net income per share (in shares)	272,427	274,957	272,859	275,683
Net income per share - basic (usd per share)	$ 0.94	$ 0.69	$ 2.66	$ 2.24
Net income per share - diluted (usd per share)	$ 0.93	$ 0.68	$ 2.63	$ 2.21

Net Income Per Share (Details 1

Net Income Per Share (Details 1) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,935	2,301	2,502	2,226
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	1,866	1,761	1,841	1,485
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	262	514	373	678
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	807	26	288	63

Investments (Details)

Investments (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Amortized cost	$ 44,042
Gross accumulated unrealized gains	6
Gross accumulated unrealized losses	(1,421)
Available-for-sale debt securities, fair value	42,627
Mortgage-backed and asset-backed securities
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Amortized cost	44,042
Gross accumulated unrealized gains	6
Gross accumulated unrealized losses	(1,421)
Available-for-sale debt securities, fair value	$ 42,627

Investments (Details 2)

Investments (Details 2) $ in Thousands	Sep. 30, 2023 USD ($)
Equity Method Investments and Joint Ventures [Abstract]
Due within 1 year	$ 0
Due after 1 year through 5 years	8,366
Due after 5 years through 10 years	14,174
Due after 10 years	20,087
Total	$ 42,627

Investments (Details Textuals)

Investments (Details Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Investments (Details Textuals) - USD ($) $ in Thousands	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Marketable equity securities	$ 58,411		$ 58,411		$ 4,490
Equity method investments, carrying value	112,600		112,600		117,700
Income (loss) from equity method investments	1,000	$ 1,200	2,200	$ 2,500
Equity securities without readily determinable fair value, book value	$ 2,200		$ 2,200		$ 2,300
Privately held company, equity method
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	16%		16%

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Marketable equity securities	$ 58,411	$ 4,490
Mortgage-backed and asset-backed securities	42,627
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	67,324	55,605
Foreign currency exchange contracts		5,306
Total Assets	612,665	613,774
Liabilities
Foreign currency exchange contracts	10,102
Total Liabilities	10,102
Mortgage-backed and asset-backed securities
Assets
Mortgage-backed and asset-backed securities	42,627
Money Market Funds
Assets
Money market funds	444,303	548,373
Fair Value Measurements, Level 1 [Member]
Assets
Marketable equity securities	58,411	4,490
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	67,324	55,605
Foreign currency exchange contracts		0
Total Assets	570,038	608,468
Liabilities
Foreign currency exchange contracts	0
Total Liabilities	0
Fair Value Measurements, Level 1 [Member] \| Mortgage-backed and asset-backed securities
Assets
Mortgage-backed and asset-backed securities	0
Fair Value Measurements, Level 1 [Member] \| Money Market Funds
Assets
Money market funds	444,303	548,373
Fair Value Measurements, Level 2 [Member]
Assets
Marketable equity securities	0	0
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	0	0
Foreign currency exchange contracts		5,306
Total Assets	42,627	5,306
Liabilities
Foreign currency exchange contracts	10,102
Total Liabilities	10,102
Fair Value Measurements, Level 2 [Member] \| Mortgage-backed and asset-backed securities
Assets
Mortgage-backed and asset-backed securities	42,627
Fair Value Measurements, Level 2 [Member] \| Money Market Funds
Assets
Money market funds	0	0
Fair Value Measurements, Level 3 [Member]
Assets
Marketable equity securities	0	0
Securities held in Non-Qualified Deferred Compensation trust, or NQDC	0	0
Foreign currency exchange contracts		0
Total Assets	0	0
Liabilities
Foreign currency exchange contracts	0
Total Liabilities	0
Fair Value Measurements, Level 3 [Member] \| Mortgage-backed and asset-backed securities
Assets
Mortgage-backed and asset-backed securities	0
Fair Value Measurements, Level 3 [Member] \| Money Market Funds
Assets
Money market funds	$ 0	$ 0

Fair Value (Details Textuals)

Fair Value (Details Textuals) - Fair Value, Inputs, Level 3 [Member] $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Finite-lived Intangible Assets Acquired	$ 38.4
Technology-Based Intangible Assets \| Measurement Input, Discount Rate [Member] \| Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Technological Obsolescence Rate	10%
Estimated Royalty Rate	25%
Technology-Based Intangible Assets \| Measurement Input, Discount Rate [Member] \| Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Technological Obsolescence Rate	13%
Estimated Royalty Rate	30%
Customer Relationships \| Measurement Input, Discount Rate [Member] \| Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Customer Retention Rate	80%
Valuation Significant Input, Discount Rate	13.50%
Customer Relationships \| Measurement Input, Discount Rate [Member] \| Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Customer Retention Rate	90%
Valuation Significant Input, Discount Rate	15%

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 154,097	$ 113,982
Finished goods	9,596	14,023
Total inventories	$ 163,693	$ 128,005

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Tax audit assessment	$ 49,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accumulated other comprehensive income
Foreign currency translation loss	$ (106,409)	$ (85,863)
Changes in defined benefit plan liabilities	(5,237)	(5,774)
Unrealized losses on investments	(1,415)	0
Total accumulated other comprehensive loss	$ (113,061)	$ (91,637)

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Segment Reporting (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Segment reporting [Line Items]
Total revenue	$ 1,023,094	$ 902,554	$ 3,021,363	$ 2,661,841
United States [Member]
Segment reporting [Line Items]
Total revenue	421,547	392,222	1,241,488	1,174,734
Other Americas [Member]
Segment reporting [Line Items]
Total revenue	15,800	15,165	47,884	39,010
Americas [Member]
Segment reporting [Line Items]
Total revenue	437,347	407,387	1,289,372	1,213,744
China [Member]
Segment reporting [Line Items]
Total revenue	172,022	148,325	523,694	401,460
Other Asia [Member]
Segment reporting [Line Items]
Total revenue	197,831	156,250	558,687	466,891
Asia [Member]
Segment reporting [Line Items]
Total revenue	369,853	304,575	1,082,381	868,351
EMEA [Member]
Segment reporting [Line Items]
Total revenue	158,194	142,983	479,268	431,660
Japan [Member]
Segment reporting [Line Items]
Total revenue	$ 57,700	$ 47,609	$ 170,342	$ 148,086

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	$ 541,341	$ 541,830
United States [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	364,932	347,822
Other Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	10,169	7,548
Americas [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	375,101	355,370
China [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	41,386	51,667
Other Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	70,743	73,329
Asia [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	112,129	124,996
EMEA [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	51,291	56,959
Japan [Member]
Summary of long-lived assets by geography
Long-lived assets in individual foreign countries	$ 2,820	$ 4,505

Subsequent Event (Details)

Subsequent Event (Details) $ in Millions	1 Months Ended
Subsequent Event (Details) $ in Millions	Oct. 31, 2023 USD ($)
Subsequent Event [Member]
Subsequent Event [Line Items]
Expected merger consideration	$ 35